Financial assurance calculator user guide
Contents
1. Department of Environment and Heritage Protection mum EHP Financial Assurance Calculator User guide Great state Great opportunity es Queenslan Government User Guide EHP Financial Assurance Calculator Prepared by Energy Regulation amp Implementation Department of Environment and Heritage Protection State of Queensland 2014 The Queensland Government supports and encourages the dissemination and exchange of its information The copyright in this publication is licensed under a Creative Commons Attribution 3 0 Australia CC BY licence Under this licence you are free without having to seek our permission to use this publication in accordance with the licence terms You must keep intact the copyright notice and attribute the State of Queensland as the source of the publication For more information on this licence visit http creativecommons org licenses by 3 0 au deed en Disclaimer If you need to access this document in a language other than English please call the Translating and Interpreting Service TIS National on 131 450 and ask them to telephone Library Services on 61 7 3170 5470 This publication can be made available in an alternative format e g large print or audiotape on request for people with vision impairment phone 61 7 3170 5470 or email library ehp qld gov au gt March 2014 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financi2. Step 7 Step 2 Type of Operation Exploration Create New Financial Assurance Workbook f Open Cut and Underground Mine Notes Open Cut Mine After clicking the Create New 1 button you will be prompted for a Filename for your new Financial Assurance Workbook This file Underground Mine will then be saved and the appropriate worksheets added into it After creating your document this file will be closed f Small Mine or Quarry Operations By clicking on the Create New Financial Assurance Workbook button you are agreeing to the Terms and Conditions of Use View Terms and Conditions Cancel Figure 2 FA petroleum and gas calculator options step 7 Step 2 Type of Operation Exploration Create New Financial Assurance Workbook f Operations Notes After clicking the Create Mew button you will be prompted for a Filename for your new Financial Assurance Workbook This file will then be saved and the appropriate worksheets added into it After creating your document this file will be closed By clicking on the Create New Financial Assurance Workbook button you are agreeing to the Terms and Conditions of Use View Terms and Conditions Cancel Step 1 Select the type of operation that most closely corresponds to your site and the appropriate workbook will be automatically generated Each workbook consists of several spread sheets Step 2 After clicking the create new financial assurance workbook
3. The mining FA calculator was developed with a similar design as the rehabilitation calculators developed by the New South Wales and Victorian State governments The Queensland model however reflects the activities and costs associated with conducting rehabilitation activities in this state The domain tabs are the calculating part of the FA calculator and it is in these tabs that the user must enter all information relevant to the rehabilitation work needing to be undertaken on the EA The type of domain tabs will vary depending on which workbook the user has chosen to open Mining workbooks When opening the EHP FA mining calculator the user will be presented an option to choose which type of mining workbook they want to open Exploration Open cut and underground mine Open cut mine Underground mine Small mine or quarry operation Gc ee orc Note Workbooks that are not mining exploration have an exploration management precinct for those EAs that are undertaking both exploration and operation activities Domain tabs Once the user chooses the appropriate workbook they will be presented with the common calculator tabs and a number of the following domain calculator tabs Exploration tab Infrastructure tab Adits and shafts tab Tailings tab Overburden and waste tab Water management tab Pits tab Other tab Waste tab CS UV ds lS Page 7 of 13 140513 EM1268 Version 3 Department of Environment and Heritage
4. button you will be prompted to create a filename for the new workbook The filename should include the EA number the year the FA application is being submitted and the year within the period of FA for which the financial assurance is being calculated for example EA1234567 2014 FAperiod_year1 This file will then be saved and the appropriate spread sheets added into it After creating your document workbook will open Note By clicking on the create new financial assurance workbook button you are agreeing to the terms and conditions of use Page 2 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator 2 0 Generic calculator information 2 1 Key factors During the piloting of the FA calculators a number of key issues or concerns arose that complicated or confused the user of the calculator This section will outline key factors in calculating FA 2 1 1 Year of maximum rehabilitation liability If your EA requires FA you must have either a plan of operations or a nominated period of FA of 1 5 years If the plan of operations or the period of FA is longer than one year the user must work out which year will have the maximum rehabilitation costs You can for example do this by completing a table as per Table 1 below or by using the EHP Schedule of Disturbance templates which can be found on the Business and Industry Portal lt http www business qld
5. Changed calculator rate Alternate rate has been used Input From site optional if information available Input mandatory where applicable Default Fate where an alternative is not provided Quantity Unit Default Unit Alternative Total Cost Basis for Costs Estimation and Description Notes Rate Unit Rate Additional Relevant Information This item is for the removal and full rehabilitation of a newly constructed well pad with no prior rehabilitation 1 30 703 225 DO00 00 5 Rate includes removal of above grade ground infrastructure removal and disposal of fluids sludge and liner grading and re seeding Figure 4 demonstrates a calculation that has changed the EHP FA calculator rate by inputting a figure into the alternative unit rate cell Note the change in total cost and the following cell basis for cost estimation and additional relevant information is now blue 2 2 Common calculator tabs This section explains the tabs spread sheets that the mining and petroleum and gas calculators have in common 2 2 1 Terms and conditions tab This tab outlines the basic terms and conditions that apply to the user of the FA calculator 2 2 2 Registration tab This tab provides fields for the user to input information specific to the EA for which the FA calculation will apply The information entered into this tab will be transcribed automatically to the final summary tab 2 2 3 Assumptions tab The assumptions tab i
6. Protection User Guide EHP Financial Assurance Calculator Figure 5 Example of mining domain tab Open Cut amp Underground Mine Operations Domain 1 Infrastructure Overall Operation Total Domain Total Additional Assumptions Record any relevant assumptions to this domain below Alternate rate has been used Input from site optional if information available Input mandatory where applicable Default Rate where an alternative is not provided Management Precinct Activity Description Applicable Quantity Unit Default Unit Alternative Total Cost Basis for Costs Estimation and Description Notes Y or N Rate Unit Rate Additional Relevant Information Termination of Services and ic Disconnect and terminate all services Water For disconnection of all services at building boundaries Demolition Works electricity gas etc at point of attachment to site physical cut at the distribution centre Disconnect and terminate services at remote areas pump stations remote workshops Y 5 500 Used for infrastructure remote from primary connection sewage treatment plant etc Removal of low medium voltage powerlines including disconnection rolling up the wires and This rate is for low lt 1kV to medium voltage gt 72 kV removing the poles does not include the powerlines removal of substations Removal of powerlines including disconnection This rate is for high voltage gt 72 kV powerlines that are rolling up the wires
7. and removing the poles 1 typically owned by the supply authority Assumes 3 does not include the removal of substations towers km Demolish and or remove substations in an Apply this rate for the total number of substations within enclosed building the domain a qnit ODEO nets at switchgear and transformers ete all switch Incudes at switchgear and transformers ete and transformers etc include decontamination removal of oil etc Demolish and remove small buildings camps administration buildings accommodation bath Assumes no greater than 2 stories high house etc Must be calculated per fioor level Assume 1 floor level light vehicle workshop warehouse store Y m2 floor 3 4 m transfer station etc d Faune e o K be calculated per floor level Assume 1 floor level workshops tyre change and servicing area m2 floor ae m etc not CHPP i Demolish and remove processing equipment ve nent eS X Must be calculated per floor level Assume 1 floor level aglomeration electrowinning floatation sizing m2 floor 3 4 m stations rotary breakers etc include the area of each floor of the structure sioan se radial smol vd DLE this rate for the removal of each radial and or etc does not include remove rails ballast Z2 1 000 000 uet DILE or similar stacker or reclaimer conveyor etc Demolish and remove bucket wheel Annhethic rata fnr the ramnowel nf aa
8. gov au business running environment licences permits financial assurance rehabilitation financial assurance security deposit gt The rehabilitation costs should always be calculated as if the user was rehabilitating all disturoance caused to date on the EA i e if the users company chose at the end of that year to cease all operations and begin rehabilitation of all disturbance Areas of new disturbance should be calculated at their full rehabilitation cost Any existing areas of disturbance that have undergone a level of rehabilitation should have the cost of FA reduced Once rehabilitation for an area has been completed and is subsequently only undergoing maintenance and monitoring the FA costs for this area can be reduced further A 596 contingency is automatically calculated for maintenance and monitoring however if an area of disturbance has been completely rehabilitated and only requires maintenance and monitoring then an actual cost amount must be allocated to that specific area of disturbance At no point should an area of disturbance have a 0 value attributed to the maintenance and monitoring of its rehabilitation unless the area has been progressively certified the FA Guideline provides further information on progressive certification The example in Table 1 demonstrates that because the operator has undertaken rehabilitation in years two and three and has not created any further disturbance in year three the year of maximum rehabilitat
9. the rehabilitation work required by breaking the work down to the individual components in a similar way as other aspects of rehabilitation have been calculated 5 0 Submitting your FA calculator When making an application for a decision on you FA you will need to submit the following information 1 A copy of your EHP FA calculator workbook You must submit the whole workbook file not just a copy of the summary sheet 2 If your plan of operations or period of FA is longer than one year you will need to submit additional information to support why you have chosen the year that was calculated as the year of maximum disturbance This could be as simple as the table outlined 2 1 1 or by using the EHP Schedule of Disturbance templates which can be found on the Business and Industry Portal lt http www business qld gov au business running environment licences permits financial assurance rehabilitation financial assurance security deposit gt 3 If your EA is not on a resource lease you will need to also submit a rehabilitation plan which outlines what rehabilitation work will be conducted during your period of FA For more information on rehabilitation plans contact the relevant EHP regional office Page 13 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection
10. 11 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator Option 1 Figure 6 Option 1 calculating rehabilitation costs per well pad Management Precinct Activity Description Applicable Quantity Unit Default Unit Y or N Rate Option 1 for Rehabilitation of Well Pads Using an Alinchisive Full rehabilitation of well pad single well Rehabilitation Cost per Vell Pad Only number of well pads required Partial rehabilitation of well pad single well Partial rehabilitation of well pad multiple wells Full rehabilitation of well pad multiple wells d Option 1 see Figure 6 above calculates the disturbance of the total well pads covered by the relevant calculator year by multiplying the number of well pads with a predetermined total cost of rehabilitation The user will be able to enter values for either single well pads or multi well pads For each well pad type the user can choose to input the number of well pads that have either had no rehabilitation undertaken or have had some rehabilitation Where numbers are entered for well pads that have had some rehabilitation it is the expectation of EHP that the well pad has been rehabilitated up to the point of fencing immediately surrounding the well Essentially the rate given in the calculator is for the well shut in costs the removal of all surface infrastructure and rehabilitation of the surrounding surface a
11. al Assurance Calculator Contents OHNE GHC TOM c sete tat tena Nahata te ea tact ach te ge heh Aah cela a ead Geta hh a 1 UM tcl MIR RU m Um m eend 2 2 0 Generic Calculator IDFOFmaloE zs aac ses neues elect neces tes eae asa qe ent autu acter as uc teme ud ete eee 3 2 FKOVIACIO ET n 3 2 1 1 Year of maximum rehabilitation liability eese 3 2 1 2 Calculate disturbance not activity lesseseessssssessesseeeeee nnne 4 2 1 3 Rates in the CalCulatOr cccccccsecccccssscecceseecceeececseaceccsaeeecsaseeessseeessegeeeeseseeesssaseeessageees 4 2 2 Common calculator tabs essssssssssssssssssessesenn nennen nnne nnn nnns nnn nnns nnns nans nnns 5 2 2 1 Terms and conditions tab eessssssssssssssssssesseee enne nnne nennen nnne nnn nnns nnn nns 5 22 2 Registration taD Mer vedi 5 2 2 9 ASSUIMPUOMS TAD 4 iater dining at terea onte ase Eoo ota oot t abdo da Tei ges Ebo pens Eo Cute aia 5 2 2 4 Table of values tab seeeessssssseeeeeseseeeee nennen nnne nennen nnn nnns enirn nnns nnn n nnns nena ns 6 2 2 5 OUlfiialy IeDuscdou detineri a iitendcca ded dela tse tbes teint leur cefat 6 3 0 Mining domain tabs SEEN 7 4 0 Petroleum and gas aspect tabs asnicar a aa E ae it cask aaa 11 S0 Subrittihg VOU FA Calculator aa a butt qe ck uses ten iot edt 13 140513 EM1268 Version 3 Department of Environmen
12. ch hiickat wheal Terms and Conditions Registration Assumptions Table of Values Infrastructure Adits amp Shafts Tailings 1 Tailings 2 Tailings 3 Overburden amp Waste 1 While the types of activities will vary depending on which tab is currently in use the methodology of filling in the tabs is the same throughout the calculator Below is an explanation of the different calculator fields Management Precinct Management precinct Termination of Services and Demolition Works The management precinct field outlines the type of rehabilitation work being calculated All rows to the right of this field relate to various activities specifically to this rehabilitation work Activity Description Activity description Disconnect and terminate all services Vater electricity gas etc at point of attachment to site The activity description field provides a brief explanation about what specific rehabilitation work is being calculated Page 8 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator Applicable or H Applicable Y or N The applicable field allows the user to identify whether or not the specific rehabilitation work needs to be calculated for the EA The field is auto set to Y so the user will need to change the field to N if the work is not needed By being auto set to Y ensures EHP knows that the user has specifica
13. hird party costs are appropriate because if FA is realised the government needs to arrange for someone else e g a contractor to do the work However where a user can find a third party rate cheaper than the EHP calculator rate rate the rate in the calculator can be changed Any changes to the calculator rate by writing a figure in the alternative unit rate cell triggers an adjoining cell within the calculator to highlight as blue requiring the user to input a brief explanation as to why the rate was changed When submitting the calculator spread sheets justification for the changes must be included During the assessment EHP may request a copy of the third party rate as proof Page 4 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator Figure 3 Unchanged calculator rate Alternate rate has been used Input fram site optional if information available Input mandatory where applicable Default Rate where an alternative is not provided Quantity Unit Default Unit Alternative Total Cost Basis for Costs Estimation and Description Notes Rate Unit Rate Additional Relevant Information This item is for the removal and full rehabilitation of a newly constructed well pad with no prior rehabilitation 1 703 iun Rate includes removal of above grade ground i Figure 3 demonstrates a calculation that has not changed the EHP FA calculator rate Figure 4
14. ial assurance rehabilitation financial assurance security deposit gt The purpose of this user guide is to highlight some of the areas users may have difficulties with when trying to identify which activities they need to calculate FA for and to demonstrate how the EHP FA calculators can be used The FA Guideline provides further information on financial assurance The user guide is broken into three sections e Generic calculator information main concepts to keep in mind when using the EHP FA calculators and instructions on how to use generic and common spread sheets that collect basic information on the EA and the activities that are being calculated e EHP mining FA calculator Instructions on how to enter data into mining specific spread sheets e EHP petroleum and gas FA calculator Instructions on how to enter data into petroleum and gas specific spread sheets Page 1 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator 1 1 Installation Upon opening the spread sheet a yellow button may appear at the top of the page asking the user to enable macros By clicking the button an introduction page will appear which provides a number of worksheet options and a link to the terms and conditions of use Depending on what calculator you have opened the options shown in Figure 1 or Figure 2 will be available Figure 1 FA mining calculator options
15. ion liability occurs in year two and the amount of FA required is 190 000 The user would need to submit the FA calculator workbook for year two Page 3 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator Table 1 Example of calculating year of maximum rehabilitation liability Plan of Existing Total new Current Completed operations disturbance disturbance rehabilitation rehabilitation period of FA area mw fo 100 000 Year 2 10ha 10ha 2ha 20ha 18ha 2ha of rehabilitation FA required 0 100 000 FA required 100 000 100 000 10 000 190 000 20ha 16ha 4 4ha Year 3 20ha Oha 2ha of rehabilitation FA Required 200 000 0 10 000 15 000 175 000 2 1 2 Calculate disturbance not activity Disturbance rates entered into the calculator by the user are to be for the areas of land disturbance not the area of activity For example seismic survey lines may have been 100km in length however only 1km of the line area required clearing land disturbance the user enters 1km not 100km 2 1 3 Rates in the calculator The rates used in the calculator have been calculated using third party costs by consultants and have included industry input These rates include all necessary mobilisation and demobilisation of equipment costs except for where significant demolition equipment is needed which has a separate and specific activity field T
16. lly chosen an option that means that the rehabilitation work is not needed onsite Note Changing the field to N results in the following Unit field changing from green to white Quantity Quantity The quantity field is the first calculation field the user must enter data into The quantity field is linked to the unit field and requires the user to input how much rehabilitation work is needed The user should enter how much of the specific rehabilitation work is required Note If the quantity cell is white any number entered into the cell will be ignored by the calculator The unit field is directly linked to the quantity field and explains what metric the user is needing to calculate in regards to the rehabiltation work Default Unit Rate Default unit rate 35 000 The default unit rate field is automatically populated with rates embedded in the table of values tab To find out how the calculator came up with this figure view the justification and assumptions for rates field in the table of values tab Page 9 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator Alternative Unit Rate Alternative unit rate The alternative unit rate field allows the user to change the cost rate of rehabilitation See section 2 1 3 for more information on using this field Note Entering rates into this field will change the basis fo
17. pect tabs The petroleum and gas FA calculator was developed with a similar design as the mining rehabilitation calculators developed by the New South Wales and Victorian State governments The Queensland model however reflects the activities and costs associated with conducting petroleum and gas specific rehabilitation activities in this state When opening the EHP FA petroleum and gas calculator the user will be presented an option to choose which type of petroleum and gas workbook they want to open 1 Exploration 2 Operations Note The operations workbook has an exploration tab for those EAs that are undertaking both activities Once the user chooses the appropriate workbook they will be presented with the common calculator tabs and a number of the following aspect calculator tabs Exploration tab Development area tab Infrastructure tab Tailings tab Water management tab Pipeline rehabilitation tab Oe len ee IS While the aspect tabs differ to the mining domain tabs the process of entering data remains the same see section 3 1 of the user guide on how to enter information into calculation tabs There is one significant difference between the two resource calculators Because the disturbance for a well pad is generally consistent across all operators EHP has provided a calculation method within the development area tab to help streamline FA calculation The development area tab presents the user with two options Page
18. r costs estimation and additional relevant information field to blue Total Cost Total cost The total cost field is a basic calculation field If the corresponding applicable cell is Y the value in the unit cell will be multiplied by the default unit rate or the alternative unit rate if one was entered Basis for costs estimation and Basis for Costs Estimation and additional relevant information Additional Relevant Information The purpose of the field is to provide space for the user to explain why an alternative unit rate was entered Entering information in this field is only necessary when the cell is blue The cell will be blue only if an alternative unit rate is entered Description cr Description notes f T P For disconnection of all services at building boundaries physical cut at the distribution centre The description notes field provides an explanation on how the rehabilitation work is expected to be carried out The default unit rate is based on the work outlined in this field If the description includes activities that are not needed or alternatively it does not include an activity that is needed the user should identify the appropriate cost for the varying activity and enter that cost in the alternative unit rate field Page 10 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator 4 0 Petroleum and gas as
19. rea Note EHP does not require plug and abandoning and pipeline decommissioning costs to be included in the calculation of FA however these activities are required by the Department of Natural Resources and Mines to have been completed prior to the relinquishment or surrender of your tenure under the Petroleum and Gas Production and Safety Act 2004 Page 12 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator Option 2 Figure 7 Option 2 calculating rehabilitation costs per rehabilitation activity Management Precinct Activity Description Applicable Quantity Unit Default Unit Y or N Rate Option 2 for Rehabilitation of Removal of the well head equipment and other 7 aes Y mz 77 00 Wells associated small infrastructure Using Rehabilitation Cost per Source cart and spread suitable cover material EN P ue Area of Disturbance for i 0 2 m Select Haul Distance from List List situations were Option 1 is HOT applicable o Trim rock rake amp deep rip includes levelling landscaping and rip in 1 direction includes Y 990 00 hardstand and laydown areas Source cart and spread topsoil 0 2 m Y Select from Select Haul Distance from List i List Direct seeding fertiliser pasture grass species depends on the commitment to 1 240 rehabilitation Option 2 see Figure 7 above can be used where the user prefers to calculate
20. s available to list the reasoning behind why the activities calculated might not be considered normal or why they have not been calculated for example an access track has not been included in the calculation because the access track was progressively certified and a Page 5 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator landholder has agreed that the access track remains the appropriate supporting information should be attached when submitted to EHP for approval 2 2 4 Table of values tab The user cannot change any fields within the table of values tab The rates have been outlined to provide transparency of data and to clearly identify and justify how the rates were calculated If the user wants to use a different rate the alternative rate is entered into a subsequent domain tab not in this tab 2 2 5 Summary tab The summary tab adds up all costs including contingencies and GST to give the total estimated rehabilitation costs When submitting an application to decide or amend the amount of FA the user should ensure the summary page is at the front of all other pages submitted as this is the page the EHP officer will first inspect before reviewing the individual spread sheets Page 6 of 13 140513 EM1268 Version 3 Department of Environment and Heritage Protection User Guide EHP Financial Assurance Calculator 3 0 Mining domain tabs
21. t and Heritage Protection User Guide EHP Financial Assurance Calculator 1 0 Introduction Financial assurance FA is a type of financial security provided to the Queensland Government by the holder of an environmental authority EA FA may be required as a condition of an EA or a transitional environmental program TEP under the Environmental Protection Act 1994 EP Act FA provides the government with a financial security to cover any costs or expenses incurred in taking action to prevent or minimise environmental harm or rehabilitate or restore the environment should the holder fail to meet their environmental obligations in the EA or TEP The Department of Environment and Heritage Protection EHP has developed a guideline on Financial assurance under the Environmental Protection Act 1994 FA Guideline which outlines the relevant legislative provisions the circumstances when FA may be required the form of FA the approved calculation method application requirements decision making criteria and other matters such as lodging changing discharging or claiming FA To facilitate appropriate calculation of FA EHP has developed two Microsoft Excel calculation tools EHP FA calculators which help to streamline the assessment of the EA FA requirement The FA Guideline and the FA calculators can be found on the Business and Industry Portal website lt http www business qld gov au business running environment licences permits financ
Download Pdf Manuals
Related Search