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## Environmental Risk 

During FY2011, risk registers were updated or established for all our coal seam gas projects and large power generation facilities over 150 MW. The highest levels of environmental risk, after taking into consideration existing controls, relate to surface water, groundwater and biodiversity. 

For the broader energy sector, air quality issues are a significant concern. AGL is continuing to develop low-emission generation assets that contribute to creating a cleaner environment. Air emissions of sulfur dioxide, oxides of nitrogen, particulates, carbon monoxide and volatile organic compounds from AGL operated electricity generation facilities represent less than 2% of emissions for each pollutant type reported to the National Pollutant Inventory for the electricity generation sector for FY2010. While not material, AGL will continue to monitor and where possible minimise these emissions. 

Detailed environmental performance data will be published in the 2011 Sustainability Performance Accounts, available online in November 2011. A summary of environmental incidents is included on page 46 of this report. 

## Water Management 

Water management is a key component of AGL’s CSG exploration and production projects. 

In FY2011, AGL developed a Produced Water Management Strategy in recognition of the need to protect ground and surface water resources and to use water sustainably across CSG operations. The long-term objective of this strategy is to substantially increase the proportion of produced water that is beneficially re-used for industrial/commercial, mining and/or primary production purposes. 

AGL has also established dedicated groundwater and surface water monitoring networks at its Gloucester, Hunter and Galilee CSG exploration areas, and in the vicinity of the proposed natural gas storage facility at Tomago. Fifty-nine dedicated groundwater monitoring bores and nine surface monitoring locations are now operational across these projects. 

Results to date from the Hunter Gas Project indicate that groundwater in deep coal seams we want to exploit for gas in this project area is isolated from water resources in shallow aquifers and streams. The results also show that water levels have not declined and that water quality has not been impaired as a result of AGL’s exploration activities. 

