Projekverwysing: PASA Verw: 12/3/318 ER. 11 Oktober 2106 VIR AANDAG: GRONDEIENAARS/BGP/STAATSDEPARTEMENT.

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1 Projekverwysing: PASA Verw: 12/3/318 ER Lêer Verw Rhino 318 ER Scoping Update Letter AFR 11 Oktober 2106 VIR AANDAG: GRONDEIENAARS/BGP/STAATSDEPARTEMENT Geagte Meneer/ Me AANSOEK VIR OMGEWINGSMAGTIGING MET BETREKKING TOT N EKSPLORASIEREG VIR PETROLEUM OP MENIGDE PLASE IN DIE VRYSTAAT & NOORDWES PROVINSIES (12/3/318 ER): OPDATERING VAN DIE OMVANG- EN OIA PROSES Ons vorige korrespondensie van 19 Augustus 2016 met betrekking tot die bogenoemde projek verwys. Neem asseblief kennis dat die Petroleum Agentskap van Suid-Afrika (PASA) op 10 Oktober 2016 die Omvangsverslag van die bogenoemde aansoek aanvaar het in terme van Regulasie 22(a) van die OIS Regulasies 2014 (GNR 982, 8 Desember 2014). Die aanvaarding beteken dat SLR Consulting (Edms) Bpk, as die onafhanklike omgewingsassesseringspraktisyn, mag voort gaan met die OIS proses in ooreenstemming met die Plan van Studie vervat in hoofstuk 7 van die Omvangsverslag. Neem kennis dat hierdie aanvaarding nie goedkeuring van die eksplorasieregaansoek, in terme van artikel 79 van die Minerale en Petroleum Hulpbronne Ontwikkelingswet (28 van 2002) (MPRDA), beteken nie. Geregistreerde Belanghebbende en Geaffekteerde Partye (B&GPs) sal weldra in kennis gestel word van verdere geleenthede vir deelname en interaksie met die projek span asook die beskikbaarheid van die OIS Verslag vir nasiening. Stuur asseblief die brief aan na enige ander persoon wie u ken wie n belang in die projek mag hê. Ons verwelkom enige vrae of kommentaar. Dankie vir u volgehoue betrokkenheid in die omvang- en OIS proses. Die uwe Matthew Hemming Omgewingsassesseringspraktisyn

2 Project Reference: File Ref Rhino 318 ER Scoping Update Letter PASA Ref: 12/3/318 ER 11 October 2016 ATTENTION: LAND OWNER/ I&AP/ STATE DEPARTMENT Dear Sir/Madam APPLICATION FOR ENVIRONMENTAL AUTHORISATION IN SUPPORT OF EXPLORATION RIGHT APPLICATION FOR PETROLEUM PRODUCTS ON VARIOUS FARMS IN THE FREE STATE AND NORTH WEST PROVINCES (12/3/318 ER): UPDATE ON SCOPING AND EIA PROCESS Our previous correspondence of 19 August 2016 regarding the abovementioned project has reference. Please be advised that on 10 October 2016 the Petroleum Agency of South Africa (PASA) accepted the Scoping Report for the abovementioned application in terms of Regulation 22(a) of the Environmental Impact Assessment Regulations 2014 (GNR 982, 8 December 2014). The acceptance means that SLR Consulting (Pty) Ltd, as the independent environmental assessment practitioner, may continue with the EIA process in accordance with the Plan of Study presented in Section 7 of the Scoping Report. Note that this acceptance does not constitute an approval of the exploration right application in terms of section 79 of the Minerals and Petroleum Resources Development Act (28 of 2002). Registered interested and affected parties will be advised in due course of further opportunities for engagement with the project team as well as the availability of the EIA Report for review. Please pass this letter onto any other persons whom you know have an interest in the project. We welcome any comment or questions. Thank you for your ongoing involvement in the scoping and EIA process. Yours faithfully Matthew Hemming Environmental Assessment Practitioner

3 RHINO OIL & GAS EXPLORATION SOUTH AFRICA (PTY) LTD ENVIRONMENTAL IMPACT ASSESSMENT FOR EXPLORATION RIGHT APPLICATION FOR PETROLEUM ON VARIOUS FARMS IN THE FREE STATE EIA FEEDBACK MEETING November 2016 (PASA Ref No 12/3/318 ER)

4 PURPOSE OF MEETING Give you feedback on: Status of the Scoping and EIA process, Changes to the exploration project since Scoping, Results of the environmental assessment. Receive from you: Questions, Issues and concerns

5 PROPOSED AGENDA 1.Welcome and introductions 2.EIA process and status 3.Exploration project scope 4.Summarised issues and concerns 5.Environmental impact assessment 6.Questions and comments 7.Way forward

6 SUGGESTED MEETING PROTOCOL This meeting is intended to be a constructive and consultative dialogue that helps members of the public to understand the project proposal and the EIA process. Its purpose is to provide you with feedback on the EIA process and the results thereof. Opportunity will be provided for you to ask questions. These meeting protocols are offered as a way to maximize the productivity of this session so that everyone has a chance to be heard. Please: Be respectful and a good listener - listening does not mean agreement. Questions will be taken in Q&A sessions. Signal to the facilitator and wait to be acknowledged.

7 MEETING PROTOCOLS Provide everyone a fair chance to speak. Only one person speaks at a time, Please avoid side conversations. Everybody agrees to make a strong effort to keep on track with the agenda and move deliberations forward. Each person reserves the right to disagree with the proposals.

8 QUICK RECAP Under the Mineral and Petroleum Resources Development Act (MPRDA, 28/2002), the State is the custodian of all minerals. Rights for minerals can be issued to ensure sustainable development of resources, within framework of national environmental policy, while promoting economic and social development. Anyone can make application for a right to access minerals. In this case an exploration right (ER). Amongst other requirements, the applicant must seek environmental authorisation in terms of the National Environmental Management Act (NEMA,107/1998) before a decision on an ER can be made.

9 QUICK RECAP For any exploration activities, a Scoping and Environmental Impact Assessment (EIA) process is needed to inform an authority decision on environmental authorisation. The EIA process, including method and timeframes are defined in the EIA Regulations (R 982 of December 2014). SLR appointed as the environmental assessment practitioner. EIA report informs the authorities decision on the application for environmental authorisation. The Petroleum Agency SA (PASA) is the designated agency ito the MPRDA and NEMA.

10 STATUS OF THIS EIA PROCESS Scoping Report was submitted in August The initial EWP included: Accepted by PASA in October various non-invasive and remote exploration The acceptance allowed for the EIA to proceed in techniques (including analysis of existing data accordance with the Plan of Study. and full tensor gradiometry gravity survey); EIA process has been undertaken (note scope changes) and documented the drilling in an Environmental of up to 10 core Impact boreholes; Report, and currently out for 30-day public review period. 125 km of seismic survey acquisition. from 14 November to 15 December 2016.

11 Public participation input TIME Scope Issues Studies & impact assessment EIA PROCESS Make Application (Day 0) Submit Scoping Report (by Day 44) Authority accept/refuse Scoping (day 87) Submit EIA Report (by Day 193) With extension Incl 30 days Public review Accepted 10 June Incl 30 days Public review Authority decision on EA (by Day 300) Notice to IAPS Appeal Process

12 EIA PHASE Objective is to assess the significance of impacts and identify measures to avoid, manage or mitigate these to an acceptable level. Define the proposed activities. Understand environmental aspects & sensitivities. Assess the significance of identified impacts. Detail mitigation measures in an Environmental Management Programme (EMPr) - legally binding

13 Changes to the ER application Subsequent to the acceptance of the Scoping Report, Rhino Oil and Gas reduced the extent of the ER application area through: - exclusion of all known protected areas with status defined under Section 48 of the National Environmental Management: Protected Areas Act (57 of 2003). - Review of additional geological data and determination of areas unlikely to be prospective for oil or gas. ER application area now covers an area of ~ ha (down from ~ ha). This is one of the steps in the process of elimination that typifies exploration.

14 EXPLORATION APPLICATION AREA Initial ER area

15 Changes to the ER application Subsequent to the acceptance of the Scoping Report, Rhino Oil and Gas excluded the ground-based core hole drilling and seismic surveys from the current application. The proposed early-phase exploration work for which we are seeking environmental authorisation now only includes: - analysis of existing data; and - an aerial full tensor gradiometry gravity survey. The current focus of the application and the EIA work is only related to this work. Should we in future propose to conduct ground-based exploration activities this would need to be informed by a further application to PASA and a separate environmental assessment and authorisation process. The location of sites for future ground-based exploration activities would be known.

16 Exploration Work Programme Deferred to later phase

17 General Oil and Gas Exploration Process: Revised Exploration Phasing 1 year 1 year 1 year 1 year EA Amendment Process EIA Process No Encouraging EIA Process EIA Process EIA Process No Encouraging No No No TCP Phase Data Review Application for Exploration Right Stage1 Encouraging Early phase Encouraging Early phase 1 Desktop & aerial FTG Stage 2 Appraisal Stage 3 Marginal Encouraging Further drilling Early phase 2 Core holes & Seismic Marginal Approval sought for Production Right At this stage in the process Relinquish or stop Marginal Relinquish Marginal or Relinquish Marginal or stop stop Relinquish or stop Current application Relinquish or stop Future application 1 year 3 years 2 years 2 years time Over time the extent of the right area is likely to reduce as targets are identified

18 Full Tensor Gravity Gradiometry (FTG) FTG surveys measure minute variations in the Earth's gravitational field to help image subsurface structures. FTG data is typically acquired from an airborne platform. FTG surveys involve grid-based flights using a light fixed wing aircraft (fitted with the FTG equipment) at slow speeds (~ 130 knots) and at an altitude of between 80 and 300 m above ground. It is envisaged that up to a maximum of km 2 could be surveyed with a spacing of between 2 and 6 km between lines. In good weather the survey would take less than 7 days to complete.

19 Full Tensor Gravity Gradiometry (FTG) Large areas can be surveyed very efficiently. Airborne acquisition negates any access and terrain issues associated with sensitive environments. From FTG surveys, a relatively detailed interpretation of aspects of the subsurface geology can be made to focus future exploration objectives. Once the raw data has been analysed and mapped, desktop work would be conducted to select specific sites for core holes or seismic. The FTG work may also determine that no further exploration is warranted over some areas.

20 After FTG Non-prospective areas would be relinquished from the right. Should any ground-based work be proposed after the FTG, an amendment to the environmental authorisation would have to be sought for the specific sites. Any other approvals required for the proposed work would need to be acquired. Certain target sites or areas may not be available for exploration due to environmental constraints.

21 EXPLORATION WORK PROGRAMME If ER is approved, Rhino Oil and Gas would only be in a position to conduct the remote exploration. Enabling them to develop a more detailed understanding of the potential oil and gas resources in the ER area. Should the remote surveys identify prospective areas and Rhino Oil and Gas propose to conduct groundbased exploration activities, this would need to be informed by a further authorisation application to PASA and a separate environmental assessment process.

22 FEEDBACK ON KEY ISSUES The opposition and objections have been reported in the The Scoping majority and of EIA participants reports. It are is evident strongly that opposed the majority to the of project the opposition and the process is against largely risks of because future more of intensive potential future activity, impacts and of in favour production of maintaining and fracking. the status quo. IAPs have an expectation that this EIA should assess impacts of the potential future production. Why is the current Karoo Strategic Environmental Assessment and moratorium on rights not being applied here?

23 FEEDBACK ON KEY ISSUES Why is Rhino applying for rights over areas (and doing an EIA) where various legislation and regulation may prevent any production from happening? Consultation has not adequately reached the full demographic and cultural diversity of people in the area.

24 FEEDBACK ON KEY ISSUES Provide a detailed baseline description of the affected environment, desktop assessment is not adequate. Cognisance should be given to restrictions imposed by legislation the EIA. and regulation, particularly the Petroleum Regulations. Restrictions relating to future exploration or production Restrictions relevant to the proposed activities are included in activities have not been applied in this EIA. Potential restrictions have been brought to Rhino Oil and Gas attention

25 FEEDBACK ON KEY ISSUES Confirm the location of the exploration sites and assess impacts at these sites. Concern over potential impacts on the full suite of sensitive and valuable environmental aspects of the region. Particularly water, biodiversity and rural livelihoods.

26 Varying parts of the application area have environmental features that are sensitive or valuable (i.e.): Steep slopes with shallow, erosion sensitive soils; Good quality and degraded indigenous grasslands; Rock art and graves; EIA RESULT Farms, infrastructure and livelihoods; Water courses, groundwater and wetlands; Water provision (water factory) to large downstream area; FTG flights unlikely to result in any impact to the terrestrial, aquatic or heritage environment.

27 EIA RESULT Impact: Noise nuisance from FTG The noise generated by a light aircraft flying at a low altitude (+100 magl) could be a nuisance to receptors. Not intense enough to result in health impacts (such as loss of hearing or increased blood pressure) are highly unlikely. Infrequent, of short duration and thus of very low significance.

28 EIA RESULT Impact: Local Limitations to Exploration FTG flight unlikely to pose any risk to the terrestrial/aquatic environment - Thus relatively few constraints arising from legislation, regulation, guidelines and best practice to this work. (different from if ground-based activities were included) FTG surveys could be undertaken without limitation, subject to compliance with civil aviation rules & minimum altitude of feet (762 m) over protected areas.

29 Impact: Effect of grant an ER EIA RESULT Public concern that this sets a ball in motion that could not be stopped, even if future risk was higher than benefits. MPRDA provides that rights can only be granted if they enable sustainable resource development within framework of national environmental policy. Period & scope of right and environmental authorisation is defined, not unlimited. Further work would have to be subject to the requisite environmental assessment & authorisation process under the NEMA and an amendment to the ER in terms of the MPRDA. I&AP involvement at each stage as watchdog. Current ER decision does not guarantee future approvals, nor the approvals required under other regulation.

30 Impact: Cumulative EIA RESULT No measurable effect of proposed exploration work on current environmental status, thus no direct cumulative impact. Resulting future exploration/production activities (if any) currently of unknown scope, extent, duration and location. Thus a reliable assessment of future impacts is not considered possible. Risks and benefits of future activities will need informed consideration.

31 Impact: No-go option EIA RESULT Potentially significant positive implications of not proceeding: No FTG impacts; reduced chance of risks from further exploration or future production; allayment of public concern. Potentially significant negative implications of not proceeding: Potential lost opportunities; need to procure other energy sources (with their associated risks). Too many unknowns, the overall impact associated with the no-go alternative is considered to be of unknown significance.

32 CONCLUSION The key finding of the EIA is of a contrast between very low significance impacts resulting from a limited exploration work programme (desktop & remote sensing) and extremely strong public opposition to all forms of exploration for onshore unconventional gas. The assessment concluded that the impacts of the proposed exploration activities would be widely distributed, but of low frequency, of very short duration and very low intensity and would therefore have very low significance. On the simple merits of the application there is no environmental reason why the revised exploration activities should not be approved.

33 CONCLUSION However, applicant and authority are advised that parts of the area have environmental properties that may not be compatible with further exploration or future production activities and risks. Current decisions and planning should take cognizance of this in as much as it is currently possible. Approach of the majority I&APs who have been involved is to close the door on exploration before it opens, thereby preventing any future risk (as well as potential benefit) from resulting.

34 QUESTIONS OR COMMENTS

35 EIA REVIEW Full EIA report in English On SLR website and available at: Location name Physical Address Koppies Public Library 3rd Street, Koppies, 9540 Koppies Local Co-operative Senwes Stasie Street, Koppies, 9540 Heilbron Public Library Voortrekker Street, Heilbron, 9650 Heilbron Local Co-operative VKB 31 Paradys Street, Heilbron, 9650 Kroonstad Public Library Steyn Street, Kroonstad, 9499 Kroonstad Local Co-operative Senwes 9 10th Lane, Industria, Kroonstad Welkom Public Library C/O Tulbagh and Reinett Street, Welkom, 9460 Welkom Local Co-operative - Senwes 151 Jan Hofmeyer Road, Welkom, 9460 Bothaville Public Library Preller St, Bothaville, 9660 Bothaville Local Co-operative Senwes 8th Lane, Industrial Area, Bothavill, 9660 Wesselsbron Public Library Erwee St, Wesselsbron, 9680 Wesselsbron Local Co-operative Senwes 10 Louis Kotze Street, 9680 Bultfontein Public Library Market St, Bultfontein, 9670 Bultfontein Local Co-Operative 83 President Swart Street, 9670

36 EIA REVIEW Summaries in English, Sesotho & Afrikaans distributed via /post on request Comments to SLR by no later than 15 December 2016

37 WAY FORWARD Public review of EIR until 15 December. SLR to update based on comments. EIR to be submitted by 15 February PASA decision on Environmental Authorisation within 107 days. Notice to IAPs of decision & appeal process. Decision on Exploration Right thereafter.

38 THANK YOU CLOSE

39 JC Pretorius From: Sent: To: Cc: Subject: Attachments: JC Pretorius 11 November :07 PM JC Pretorius Matthew Hemming APPLICATION FOR ENVIRONMENTAL AUTHORISATION - EXPLORATION RIGHT APPLICATION FOR PETROLEUM ON VARIOUS FARMS IN THE FREE STATE (12/3/318 ER): 30-DAY REVIEW OF ENVIRONMENTAL IMPACT REPORT AND PUBLIC MEETING _ Rhino FS 318 ER_ DEIR for review letter_final.pdf; _ Rhino FS 318 ER_ DEIR for review letter_final AFR.pdf Tracking: Recipient Read JC Pretorius Matthew Hemming ngesip@petroleumagencysa.com khumalon@petroleumagencysa.com info@geoscience.org.za mining@csir.co.za plochner@csir.co.za info@wessa.co.za advocacy@birdlife.org.za aburns@wwf.org.za egtproject@mweb.co.za vstone@wwf.org.za bradleyg@ewt.org.za jonathan.deal@treasurethekaroo.co.za research@treasurethekaroo.co.za fajoubert@vodamail.co.za kootnaude1@gmail.com arras@compuking.co.za atkr@vodamail.co.za alta@stelena.co.za berna.duminy@gmail.com koms@tlu.co.za berodadaan@lantic.net framar@xsinet.co.za theresaswart@vodamail.co.za elbi@enviroworks.co.za rinae@vkb.co.za Pieter.Swart@dmr.gov.za Ndlelenhle.Zindela@dmr.gov.za Tshepho.Makgoba@dmr.gov.za pmokaila@nwpg.gov.za pilotn@fs.agric.za pa.hodagric@fs.agric.za MokinoB@dwa.gov.za Read: 2016/11/14 10:54 AM 1

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54 ATTENTION: INTERESTED AND AFFECTED PARTY Dear Sir/ Madam APPLICATION FOR ENVIRONMENTAL AUTHORISATION WITH REGARDS TO AN EXPLORATION RIGHT APPLICATION FOR PETROLEUM ON VARIOUS FARMS IN THE FREE STATE (12/3/318 ER): 30-DAY REVIEW OF ENVIRONMENTAL IMPACT REPORT AND PUBLIC MEETING Our previous correspondence of the 11 th of October 2016 regarding the abovementioned project has reference. Background: Rhino Oil and Gas Exploration South Africa (Pty) Ltd (Rhino Oil and Gas) lodged an application for an exploration right with the Petroleum Agency South Africa (PASA) in terms of Section 79 of the Minerals and Petroleum Resources Development Act, 2002 (MPRDA). Rhino Oil and Gas also lodged an application to PASA for environmental authorisation of exploration activities in terms of Section 24(5) of the National Environmental Management Act, 1998 (NEMA). The application is subject to a Scoping and Environmental Impact Assessment (EIA) process that is being undertaken in terms of the EIA Regulations 2014 (GNR 982, 8 December 2014). The Scoping process was previously completed by SLR Consulting (Pty) Ltd (SLR). PASA accepted the Scoping Report on 10 October 2016, granting permission for the EIA to be undertaken in terms of the Plan of Study for EIA. Scope Changes: Subsequent to the acceptance of the Scoping Report, Rhino Oil and Gas has reduced the extent of the ER application area through the exclusion of all known protected areas with status defined under Section 48 of the National Environmental Management: Protected Areas Act (57 of 2003) and all of the farms in the North West Province and a number of farms in the Free State, thus reducing the number of properties included in the ER application to approximately properties (farms and portions) over an area of ha. See the orange boundary in the Figure below. More recently, Rhino Oil and Gas has also excluded ground-based exploration activities including core hole drilling and seismic surveys from the proposed early-phase exploration work for which they are seeking environmental approval. The current focus of the application and the related environmental assessment work is now only on remote exploration techniques (including analysis of existing data and an aerial full tensor gradiometry gravity survey). 16

55 If the current application is approved, Rhino Oil and Gas would be in a position to conduct the remote exploration techniques and to develop a more detailed understanding of the potential oil and gas resources in the application area. Thereafter, should Rhino Oil and Gas propose to conduct ground based exploration activities they would need to be informed by a further application to PASA and a separate environmental assessment and authorisation process. A benefit of this revised approach is that any future application for ground based exploration activities would be focused on specified sites. This enables interested and affected parties (I&APs) to know where Rhino Oil and Gas proposes to access land and conduct ground-based exploration activities. The required environmental assessment would be focused on assessing impacts at those sites. EIR for Review: This letter serves to inform you, as a registered I&AP on the project, that SLR has, on behalf of Rhino Oil and Gas, produced an environmental impact report (EIR), including an environmental management programme, for the application. The purpose of the EIR is to summarise the EIA process followed to date and provide an overview of the proposed project and the affected environment. It also provides an assessment of the potential impacts of the proposed project and sets out the management and mitigation measures that are recommended should the application be approved. The EIR is being made available to registered I&APs for review and comment on the findings and management measures for the proposed project. In this regard, the EIR will be available for a 30-day comment period from 14 November 2016 until 15 December Hard copies of the EIR have been placed at the following locations for public review: Name and Location Physical Address Koppies Public Library 3rd Street, Koppies, 9540 Koppies Local Co-operative Senwes Stasie Street, Koppies, 9540 Heilbron Public Library Voortrekker Street, Heilbron, 9650 Heilbron Local Co-operative VKB 31 Paradys Street, Heilbron, 9650 Kroonstad Public Library Steyn Street, Kroonstad, 9499 Kroonstad Local Co-operative Senwes 9 10th Lane, Industria, Kroonstad Welkom Public Library C/O Tulbagh and Reinett Street, Welkom, 9460 Welkom Local Co-operative - Senwes 151 Jan Hofmeyer Road, Welkom,

56 Bothaville Public Library Preller St, Bothaville, 9660 Bothaville Local Co-operative Senwes 8th Lane, Industrial Area, Bothavill, 9660 Wesselsbron Public Library Erwee St, Wesselsbron, 9680 Wesselsbron Local Co-operative Senwes 10 Louis Kotze Street, 9680 Bultfontein Public Library Market St, Bultfontein, 9670 Bultfontein Local Co-Operative 83 President Swart Street, 9670 The EIR is also available to download from the SLR website. To download the EIR and Appendices go to: Alternatively, contact SLR and an electronic copy of the EIR can be ed to you, or the EIR and Appendices provided on CD. An Executive Summary of the EIR is also available on request in English, Afrikaans or Sesotho. All comments on the EIR should be submitted to SLR at the contact details shown in the table below. Comments received will be used to update the EIR, as relevant, and copies of all the comments will be included with the EIR when it is submitted to PASA for decision making. Please ensure that your comments reach us on or before 15 December Details Project Manager Public Participation Name of the practitioner Matthew Hemming JC Pretorius Responsibility on the project EAP Public Participation Manager Tel No.: Fax No.: Postal address PO Box 1596, Cramerview address Public Feedback meetings: I&APS are invited to attend one of a series of open days and public meetings. The purpose of the open day and public meeting is to inform I&APs of the findings of the EIA process and provide opportunity for questions to be asked. The open days will provide I&APs with opportunity to ask members of the EIA and applicant team questions. The formal public meeting will include a presentation by the EIA team followed by a question and answer session. Comments will be recorded for further consideration. The details are provided below. Date Venue Time 28 November 2016 Bultfontein Hotel, President Swart Street, Bultfontein 14:00 for open day; 15:00 for meeting 29 November 2016 Wesselsbron Golf Club, Willemse Street, Wesselsbron 8:30 for open day; 9:30 for meeting 29 November 2016 Welkom Inn, C/O Stateway and Tempest Road, Welkom 14:00 for open day; 15:00 for meeting 30 November 2016 Bothaville Golf Club, Off Greylingstreet, Bothaville 8:30 for open day; 9:30 for meeting 30 November 2016 Kroonstad Golf Club, Kroon Park Drive, Kroonstad 14:00 for open day; 15:00 for meeting 1 December 2016 Friesland Hotel, North Street, Koppies 8:30 for open day; 9:30 for meeting 1 December 2016 Heilbron Golf Club, Pienaar Street, Heilbron 14:00 for open day; 15:00 for meeting Please pass this letter onto any other persons whom you know have an interest in the project. We welcome any comment or questions. Thank you for your ongoing involvement in the Scoping and EIA process. Yours faithfully 18

57 Matthew Hemming Environmental Assessment Practitioner AANDAG: GRONDEIENAARS/BGP/STAATSDEPARTEMENT Geagte Meneer/ Me AANSOEK VIR OMGEWINGSBEMAGTIGING MET BETREKKING TOT N EKSPLORASIEREG VIR PETROLEUM OP MENIGDE PLASE IN DIE VRYSTAAT PROVINSIE (12/3/318 ER): 30-DAE HERSIENING VAN OMGEWINGSIMPAKVERSLAG EN PUBLIEKE VERGADERING Ons vorige korrespondensie van 11 Oktober 2016 met betrekking tot die bogenoemde projek verwys. Agtergrond: Rhino Oil and Gas Exploration South Africa (Edms) Bpk (Rhino Oil and Gas) het 'n aansoek om 'n eksplorasiereg (ER) ingedien aan die Petroleum Agentskap Suid-Afrika (PASA) in terme van Artikel 79 van die Wet op Minerale en Petroleum Hulpbronontwikkeling, 2002 (MPRDA). Rhino Oil and Gas het ook 'n aansoek aan PASA gerig om omgewingsmagtiging van eksplorasie-aktiwiteite in terme van Artikel 24 (5) van die Wet op Nasionale Omgewingsbestuur, 1998 (NEMA). Die aansoek is onderhewig aan 'n Omvangsbepaling- en Omgewingsimpakassessering (OIA) proses wat tans ingevolge die OIS-Regulasies 2014 (GNR 982, 8 Desember 2014) onderneem word. Die Omvangbepalingsproses was reeds deur SLR Consulting (Edms) Bpk (SLR) afgehandel. PASA het die Omvangsverslag op 10 Oktober 2016 aanvaar en toestemming verleen dat die OIA in terme van die Studieplan vir die OIA onderneem moet word. Omvang Wysigings: Na afloop van die aanvaarding van die Omvangsverslag, het Rhino Oil and Gas die omvang verminder van die ER aansoekgebied deur die uitsluiting van alle bekende beskermde gebiede wat hierdie status geniet kragtens artikel 48 van die Wet op Nasionale Omgewingsbestuur: Wet op Beskermde Gebiede (No. 57 van 2003). Rhino Oil and Gas het ook bykomende geologiese data verkry en hersien en bepaal dat sekere gebiede in die noorde van die aansoekgebied onwaarskynlik voornemend vir olie of gas blyk te wees. Hierdie gebiede, onder andere al die eiendomme in die Noordwes provinsie en talle eiendome in die Vrystaat, is uitgesluit wat die aantal eiendomme in die ER aansoek verminder tot ongeveer eiendomme (plase en gedeeltes) oor 'n gebied van sowat ha. Sien die oranje grens in die skets hieronder. 19

58 Meer onlangs het Rhino Oil and Gas ook die grondgebasseerde eksplorasie-aktiwiteite uitgesluit, insluitend die boor van kernboorgate en seismiese opnames wat deel uitgemaak het van die voorgestelde vroeë fase eksplorasiewerke waarvoor omgewingsmagtiging benodig was. Die huidige fokus van die aansoek en die verwante OIA is nou net van toepassing op afstandwaarnemings eksplorasie tegnieke (insluitend analise van bestaande data en 'n aerial full tensor gradiometry gravity opname). As die huidige aansoek goedgekeur word, sal Rhino Oil and Gas in 'n posisie wees om die afstandwaarnemings eksplorasie tegnieke uit te voer en om 'n dieper begrip van die potensiële olie en gas hulpbronne in die aansoekgebied te ontwikkel. Indien Rhino Oil and Gas daarna sou wou voortgaan met die grondgebasseerde eksplorasie-aktiwiteite sal hulle ingelig word deur 'n verdere of nuwe aansoek wat aan PASA gerig moet word en die gepaardgaande OIA - en goedkeuringsproses uit te voer. 'n Voordeel van hierdie hersiene benadering is dat enige toekomstige aansoek met betrekking tot die grondgebasseerde eksplorasie-aktiwiteite sal gefokus word op bepaalde terreine. Dit maak dit moontlik vir belanghebbende en geaffekteerde partye (B&GP) om te weet waar Rhino Oil and Gas voorstel om toegang tot grond te verkry vir die uitvoer van die grondgebasseerde eksplorasie-aktiwiteite. Die vereiste omgewingsevaluering sal gefokus word op die beoordeling van die impak op hierdie terreine. OIA vir Hersiening: Hierdie brief stel u in kennis, as 'n geregistreerde B&GP van die projek, dat SLR namens Rhino Oil and Gas, n Omgewingsimpakverslag (OIV), insluitend 'n omgewingsbestuursprogram, saamgestel het vir die aansoek. Die doel van die OIV is om die OIAproses wat gevolg is tot op hede op te som en 'n oorsig te gee van die voorgestelde projek en die geaffekteerde omgewing. Dit bied ook 'n evaluering van die potensiële impakte van die voorgestelde projek en stel die aanbevole bestuurs- en versagtingsmaatreëls sou die aansoek goedgekeur word. Die OIV word vir hersiening en kommentaar op die bevindinge en bestuursmaatreëls vir die voorgestelde projek aan geregistreerde B & GP's beskikbaar gemaak. In hierdie verband, sal die OIV beskikbaar wees vir 'n 30-dae kommentaar periode van 14 November 2016 tot en met 15 Desember Eksemplare van die OIV is by die volgende plekke vir openbare hersiening geplaas: 20

59 Name and Location Physical Address Koppies Biblioteek 3 de Straat, Koppies, 9540 Koppies Koöperasie - Senwes Stasiestraat, Koppies, 9540 Heilbron Biblioteek Voortrekkerstraat, Heilbron 9650 Heilbron Koöperasie - VKB 31 Paradysstraat, Heilbron, 9650 Kroonstad Biblioteek Steynstraat, Kroonstad, 9499 Kroonstad Koöperasie - Senwes 9 10 de Laan, Industria, Kroonstad, 9499 Bothaville Biblioteek Prellerstraat, Bothaville, 9660 Bothaville Koöperasie - Senwes 8 ste Laan, Industriële Area, Bothaville, 9660 Welkom Biblioteek H/V Tulbagh en Reinettstraat, Welkom, 9460 Welkom Koöperasie - Senwes 151 Jan Hofmeyerweg, 9460 Wesselsbron Biblioteek Erweestraat, Wesselsbron, 9680 Wesselsbron Koöperasie - Senwes 10 Louis Kotzestraat, 9680 Bultfontein Biblioteek Markstraat, Bultfontein, 9670 Bultfontein Koöperasie - Senwes 83 President Swartstraat, Bultfontein 9670 Die OIV is ook beskikbaar om van die SLR webwerf af te laai. Om die OIV en aanhangsels aflaai gaan na: Alternatiewelik kontak SLR en 'n elektroniese kopie van die OIV kan aan u ge-epos word, of die OIV en aanhangsels kan op CD aan u verskaf word. 'n Uitvoerende Opsomming van die OIV is ook op aanvraag beskikbaar in Afrikaans, Engels of Sotho. Alle kommentaar op die OIV moet aan SLR by die kontakbesonderhede in die onderstaande tabel ingedien word. Kommentaar ontvang sal gebruik word om die OIV, waar relevant, by te werk en afskrifte van al die kommentaar sal ingesluit word in die OIV wanneer dit vir besluitneming aan PASA ingedien word. Maak asseblief seker dat u kommentaar ons voor of op 15 Desember 2016 bereik. Besonderhede Projekbestuurder Publieke Deelname Naam van praktisyn Matthew Hemming JC Pretorius Verantwoordelikheid OAP Publieke Deelname Bestuurder Tel No.: Faks No.: Posadres Posbus 1596, Cramerview, 2060 E-posaddress mhemming@slrconsulting.com jcpretorius@slrconsulting.com Openbare Terugvoer vergaderings: B&GP s word uitgenooi om een van 'n reeks van opedae en openbare vergaderings by te woon. Die doel van die opedag en publieke vergadering is om B&GP s in te lig van die bevindings van die OIA-proses en bied geleentheid vir vrae wat gevra moet word. Die ope dae sal B&GP s van die geleentheid bied om lede van die OIA- en aansoeker span vrae te vra. Die formele openbare vergadering sal 'n voorlegging deur die OIA-span, gevolg deur 'n vraag-en-antwoord-sessie insluit. Kommentaar sal aangeteken word vir verdere oorweging. Die besonderhede word hieronder gegee. Date Venue Time 28 November November November November 2016 Bultfontein Hotel, President Swartstraat, Bultfontein 14:00 vir ope dag; 15:00 vir vergadering Wesselsbron Gholfklub, Willemsestraat, Wesselsbron 8:30 vir ope dag; 9:30 vir vergadering Welkom Inn, H/V Stateway en Tempestweg, Welkom 14:00 vir ope dag; 15:00 vir vergadering Bothaville Gholfklub, Off Greylingstraat, Bothaville 8:30 vir ope dag; 9:30 vir vergadering 21

60 30 November Desember Desember 2016 Kroonstad Gholfklub, Kroon Parkweg, Kroonstad 14:00 vir ope dag; 15:00 vir vergadering Friesland Hotel, Northstraat, Koppies 8:30 vir ope dag; 9:30 vir vergadering Heilbron Gholfklub, Pienaarstraat, Heilbron 14:00 vir ope dag; 15:00 vir vergadering Stuur asseblief die brief aan na enige ander persoon wie u ken wie n belang in die projek mag hê. Ons verwelkom enige vrae of kommentaar. Dankie vir u volgehoue betrokkenheid in die omvang- en OIS proses. Die uwe Matthew Hemming Environmental Assessment Practitioner JC Pretorius Environmental Assessment Practitioner SLR Consulting (Africa) (Pty) Ltd jcpretorius@slrconsulting.com Tel: Ext: 2020 Fax: SLR Consulting (Fourways office) Block 7 Fourways Manor Office Park Cnr Roos and Macbeth Streets Fourways, Johannesburg, 2060 South Africa Confidentiality Notice and Disclaimer This communication and any attachment(s) contains information which is confidential and may also be legally privileged. It is intended for the exclusive use of the recipient(s) to whom it is addressed. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. If you have received this communication in error please us by return mail and then delete the from your system together with any copies of it. Please note that you are not permitted to print, copy, disclose or use part or all of the content in any way. s and any information transmitted thereunder may be intercepted, corrupted or delayed. As a result, SLR does not accept any responsibility for any errors or omissions howsoever caused and SLR accepts no responsibility for changes made to this or any attachment after transmission from SLR. Whilst all reasonable endeavours are taken by SLR to screen all s for known viruses, SLR cannot guarantee that any transmission will be virus free. Any views or opinions are solely those of the author and do not necessarily represent those of SLR Management Ltd, or any of its subsidiaries, unless specifically stated. SLR Consulting (South Africa) (Proprietary) Limited and SLR Consulting (Africa) (Proprietary) Limited are both subsidiaries of SLR Management Ltd. Registered Office: Unit 7 Fourways Manor Office Park, Cnr Roos and Macbeth Street, Fourways, 2191, Gauteng, South Africa 22