Petroleo Brasileiro S.A. - Petrobras
YPFB - Yacimientos Petroliferos Fiscales Bolivianos
BTB Group
ENRON Corporation
BOLIVIA-BRAZIL GAS PIPELINE PROJECT
ENVIRONMENTAL ASSESSMENT
EXECUTIVE SUMMARY
November, 1996



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This document was prepared by:
Kay Patten Beasley, RE.M., C.E.A.
November, 1996



ENVIRONMENTAL ASSESSMENT
EXECUTIVE SUMMARY
TABLE OF CONTENTS
1.0  Introduction .............................1
2.0  Regulatory Framework .............................2
3.0  Project Description .............................4
4.0   Environmental Baseline Conditions .............................8
5.0     Analysis of Alternatives ............................                                                                 17
6.0   Environmental Impacts and Mitigation ............................                                                       19
7.0  Public Consultation ............................                                                                         27
8.0  Environmental Management Program ............................                                                            28
9.0  Conclusions ............................                                                                                 29
10.0 Bibliography .31



ATTACHMENTS
Table 1 - Summary of Environmental Impacts and Mitigation Measures
Logistics Map of Project Area
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BOLIVIA-BRAZIL GAS PIPELINE PROJECT
ENVIRONMENTAL ASSESSMENT
EXECUTIVE SUMMARY
1.0   Introduction
The purpose of the proposed Bolivia-Brazil pipeline project is to transport natural gas
produced in central Bolivia to major industrial centers in Brazil, opening a new and
important market for existing Bolivian reserves of natural gas and bringing an additional
source of power to the Brazilian energy matrix. The project is being developed by
Yacimientos Petroliferos Fiscales Bolivianos (YPFB) and Petrobras, together with
participating partners Enron Corporation and the BTB Group.  The BTB Group
represents a consortium comprised of Broken Hill Proprietary Company Limited (BLIP),
Tenneco Energy, and British Gas.
In 1988 the presidents of Bolivia and Brazil signed a 'Treaty for Integration of Energy" in
which Brazil committed to purchase electric power produced with Bolvian natural gas in
a thermal plant to be erected on the border between the two countries. This Treaty was
later followed by additional negotions and agreements for the transportation and sale of
gas to the main industrial centers of Brazil, delivered through the proposed gas pipeline.
In 1990 YPFB commissioned an Environmental Impact Study to be completed for
construction of the Santa Cruz - Puerto Suarez gas pipeline and a thermoelectric power
plant in Puerto Suarez. Environmental missions from the Inter-American Development
Bank and the World Bank visited Bolivia in 1991 and submitted comments and
recommendations to the government of Bolivia and YPFB upon completion of their
missions. The Bolivian government gave its approval to the project in 1991 by signing the
Declaratoria de Impacto Ambiental and Resoluci6n Ministerial #269/91.  In the
intervening period since 1991, the scope of the project changed substantially. The Puerto
Suarez power plant is no longer part of the project, and the pipelne has been extended to
include the Brazilian segment. Due to these changes and new environmental regulations,
additional environmental studies were required in Bolvia and a complete ELA was
required in Brazil.
Beginning in 1992, Petrobras commissioned a Brazilian consultant to produce an
Environmental Impact Assessment (EIA) and Risk Analysis (RA) for the Brazilian sector
of the project. The studies were completed in two phases, the first segment being from
Corumba to Curitiba and the second from Curitiba to Porto Alegre. In 1996 the studies
were revised, consolidated, updated and completed, when necessary, to comply with the
requirements set out by the World Bank's Guidelines.



Since 1992, the EIA, Risk Analysis and numerous supplemental environmental reports
have been submitted to Brazil's federal environmental office and the environmental
agencies in the five affected states, and the licensing process is underway. The Previous
License is anticipated in December, 1996, and the Installation License in the first quarter
of 1997.
In January, 1996, work commenced on an Environmental Impact Study for the Bolvian
sector to reflect the current project scope and environmental conditions. The EIS was
based upon a cornprehensive review of existing information, field work, and community
consultation to evaluate the biophysical and socioeconomic environments in the area of
influence of the project. The report was completed and presented to Bolvia's Ministry of
Sustainable Development and Environment in November, 1996, and an amendment to the
environmental license is expected to be issued at the end of January, 1997.
*         2.0   Regulatory Framework
Project sponsors have diligently reviewed all environmental laws and regulations
applicable to the project in Bolivia and Brazil. The project will be constructed and
operated in accordance with the legal requirements in each country, as well as
internationally accepted environmental practices, policies and standards.
Bolivia
Bolivia's Environmental Law No. 1333, enacted in 1992, establshed procedures for
environmental management and regulatory compliance for activities potentially impacting
the environment. Article 62 of the Environmental Law provided that indigenous
populations, together with public and private nonprofit institutions, social entities and
traditional communities may participate in the administration of Protected Areas. The
MIinistry of Sustainable Development and the Environment (Ministerio de Desarrollo
Sostenible y Medio Ambiente - MDSMA), created in 1993, has recently enacted six
environmental regulations associated with Law No. 1333, addressing the following issues:
* Environmental Management (Reglamento General de Gesti6n Ambiental)
* Environmental Prevention and Control (Reglamento de Prevenci6n y Control
Ambiental)
* Atmospheric Contamination (Reglamento de Contaminaci6n Atmosferica)
* Water Contamination (Reglamento de Contaminaci6n Hidrica)
* Hazardous Substance (Reglamento para Actividades con Sustancias Peligrosas)
* Solid Waste (Reglamento de Gesti6n de Residuos S6lidos).
The Subsecretariat of the Environment (Subsecretaria del Medio Ambiente) was created
to monitor compliance with the new regulations and environmental legislation.
Hydrocarbon Law No. 1689, was signed in May, 1996. At the time of this writing,
environmental regulations necessary to enforce this new law have been proposed, but have
not yet been promulgated. The law provides that an administrative concession must be
2



granted prior to construction and operation of a pipeline. The law also defines tariff
requirements and responsibility for supervising and inspecting concessionaires.
Transportation of hydrocarbons by pipelines is governed by the principle of free access.
Public Participation Law No. 1551 and its associated regulations were passed in 1994.
The Law and its regulations established procedures for encouraging and involving the
indigenous, peasant, and urban communities in the judicial, political and economic
processes of the country. Law No. 1551 transferred some levels of authority from the
central government to municipal governments and provided for distribution of a portion of
tax revenues collected from the central government to the municipalities.
In September, 1995, Supreme Decree No. 24122 gave protection status to over 3.4
million hectares of land and established the Gran Chaco National Park and its Integrated
Management Areas. The Decree defined the Bolvia-Brazil gas pipeline right-of-way as the
boundary line between the park and the Integrated Management Area.
Bolivia's regulations related to archaeological heritage declare that all artifacts are
property of the State and require authorization from the Ministry of Education and Culture
prior to excavation activities. The regulations also establish penalties for destruction,
damage, removal, or exploitation of cultural resources.
There are a number of proposed laws which have not yet been passed, including laws on
indigenous settlements, biological diversity, and environmental norms for the hydrocarbon
sector. Progress of these proposed laws will be monitored by Project Sponsors to ensure
compliance and identify any potential areas of concern for the project.
Brazil
In the Brazilian Constitution (Carta Magna Brasileira) which was rewritten 1988, Chapter,
No. VI, Article 225, was devoted to the environment, which confirmed the growing
importance of this matter in Brazil. The Constitution also allocated authority to legislate
on environmental issues between Federal and State levels.
The National Policy for the Environment (PNMA) was established under Article 2 of
Federal Law No. 6.938 dated August 31, 1981. The purpose of the Law was the
preservation, improvement and recovery of environmental quality, to ensure conditions for
socioeconomic development, in compliance with the interest of national security and for
protection of the dignity of human life. In 1990, Decree No. 99.274 created the National
Environmental System (SISNAMA) as an organization with responsibility for
promulgating rules and regulations to enforce the National Environmental Policy.
The following bodies and agencies make up the SISNAMA organization:
* Upper Body: the Council of the Government.
* Consultant and Deliberative Body: the National Council for the Environment
(CONAMA). CONAMA has responsibility for advising on the establshment of
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Federal environmental policies and issuing regulations to implement the National
Environmental Policy.
. Central Body: Ministry for the environment, for Hydrological Resources and for the
Legal Amazon.
. Executive Body: the Brazilian Institute for the Environment and Renewable Natural
Resources (IBAMA). IBAMA is the Federal agency responsible for administering
environmental legislation and regulations, and issuing certain licenses.
* Sectional Bodies: bodies or entities of the Federal or State public administration with
activities associated with protection of the environment or responsible for such
activities.
* Local Bodies: municipal bodies or entities.
From the array of directives consolidated into the PNMA stem the main guidelines related
to environmental protection, through regulatory decrees, ordinances and resolutions
enacted by the bodies and agencies that integrate the National System for the Environment
CONAMA's first and one of the most important resolution was 01/86, which imposed the
requirement for an environmental impact study for projects which have the potential to
impact the physical, chemical or biological environment. These studies are a fundamental
part of the licensing process. Decree No. 99.274 established environmental licensing as a
three-stage process, including a Previous License, Installation License, and Operating
License.
CONAMA Resolution 06/86 provides that the request for environmental licenses must be
published in the Official State Newspaper and in all major local newspapers in the project
area. Resolution 09/87 requires that public audiences be held to review the environmental
aspects of major projects. In accordance with these CONAMA resolutions and various
state resolutions, notice of the Bolivia-Brazil project was published in the official federal
journal and in the major regional or local newspapers in each state. The notices advised the
public where the RIMA (environmental impact summary) for the project was available for
review, normally in the local library. Public audiences were held in each state to provide
0          local citizens an opportunity to understand and evaluate the project.
3.0   Project Description
Route
The Bolivia-Brazil Gas Pipeline will extend approximately 3100 kilometers from a point
near the city of Santa Cruz de la Sierra, Bolvia, and terminating near the city of Porto
Alegre in Brazil. The transmission system will originate at the Yacimientos Petroliferos
Fiscales Bolivianos (YPFB) Rio Grande Natural Gas Plant located approximately 40
kilometers southeast of Santa Cruz and extend approximately 560 kilometers in an easterly
direction to the town of El Carmen de la Frontera on the Bolivia-Brazil border. The
Brazilian segment extends approximately 2500 km through the states of Mato Grosso do
Sul, Sao Paulo, Parani, Santa Catarina and Rio Grande do Sul.
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The Bolivian sector of the project will traverse the Baniados de Izozog, then cross the
predominantly flat tropical dry forest of the Bolivian Chaco region within the Department
of Santa Cruz. East of the Otuquis river, the pipeline will cross the northem portion of the
Otuquis and Tacuaral marshes. In Bolvia the route crosses the Rio Grande, San Miguel
and Otuquis rivers.
From the border, the route continues southeast crossing the Paraguay River and the
Pantanal marshland, running parallel to Highway BR-262. In the 700 kilometer segment
through the state of Mato Grosso do Sul, the pipeline crosses the Miranda, Pardo and
Verde rivers. The pipeline then crosses the Parani river into the state of Sao Paulo,
continuing southeast, and crossing the Tiete river to the Petrobras REPLAN refinery at
Campinas. From the refinery, the route turns south through Capao Bonito where it
crosses the Paranapiacaba mountain range, then reaches the Itapirapua river which
separates the states of Sao Paulo and Parani. The route crosses the Ribeira river and
follows the right-of-way for existing oil pipelines into the state of Santa Catarina, then east
of Curitiba and across the Tijucas Mountain Range and the Tijucas river. From this point,
the route follows a new right-of-way, passing west of Florianopolis and terminating at the
Alberto Pasqualini Refinery near Porto Alegre.
Environmental considerations played a key role in defining the route for the Bolivia-Brazil
Gas Pipeline in both countries. After the primary objective of transporting natural gas
from supply sources to market demand, the route was laid out based upon environmental
sensitivity mapping. The route was further refined based upon environmental conditions
identified through field reconnaissance.
Ecologically sensitive areas and areas of high population density were avoided to the
extent possible. For example, in Bolivia the route was relocated to avoid the Cafnon de la
Victoria area due to its ecological importance. The Canion de la Victoria is a hydrologic
and biological connection between the wetland systems of the Bantados de Otuquis, in
Bolivia, and the Pantanal, in Brazil. The route was modified to avoid crossing in this area
which would impact a large natural wetland and might affect the hydrologic connection
between the systems.
In Brazil, many deviations were made to the route to reduce impacts in environmentally
sensitive areas. One notable example is in the Pantanal area. The original route in the
Pantanal passed 40 km to the north of BR-262. In order to avoid crossing in this
ecologically sensitive area of the Pantanal, the route was deviated to the south following
the highway through previously impacted ranching and agricultural areas. Although this
resulted in a considerable increase in cost, it was considered prudent in view of the
environmental considerations.
Engineering Design
The pipeline system will have an initial contract demand of 8.0 million standard cubic
meters per day with a maximum capacity of 30.0 million. Pipe will be manufactured in
accordance with API-5L, X-70 and X-65 standards and will range from a maximum of 32
inches in diameter at the Rio Grande Gas Plant in Bolivia, progressively decreasing to 16
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inches at Porto Alegre. Wall thickness will range from 0.406-0.650, depending upon the
design factor. The pipeline will be designed for a maximum allowable operating pressure
of 1420 psi with a minimum delivery pressure of 450 psi. In order to increase its
transportation efficiency level, the pipe will be internally coated. Corrosion protection for
the pipeline will be provided using external anti-corrosive coating and a cathodic
protection system. Automatic reduced pressure shutdown valves will be installed to
ensure safety of the line. Locations of these valves will be determined during the detail
design phase of the project. Pig launchers and receivers will be installed for the purpose of
internal inspection and cleaning of the pipe
There will be two meter stations in Bolivia and five in Brazil. It is anticipated that thirty
city gates will be installed by State concessionaires along the gas pipeline in Brazil. Four
compressor stations are included in the system design for the Bolivian sector and twelve
for the Brazilian sector. Compressor station locations were selected based upon hydraulic
studies and finalized taking environmental considerations into account. The stations will
be constructed as required during the life of the project to increase delivery volumes and
maintain acceptable pipeline pressure. In the initial stage of the project only one station
will be constructed in Bolivia and four in Brazil. Compressor station sites will be
restricted to a maximum 300 x 300 meter area in Brazil, with Bolivia requiring a smaller
area, as the natural forest will mitigate noise from the compression equipment.
Meter stations and compressor stations will be automated for remote monitoring and
control. A Supervisory Control and Data Acquisition (SCADA) system will serve to
monitor and control all pipeline facilities from two Gas Control Centers, located in Santa
Cruz, Bolvia and Guarulhos, Sao Paulo, Brazil  Each compressor station and meter
station, as well as some valves and other remote facilities will be provided with electronic
communication equipment for process control and data transmission to relay information
to a host computer via the telecommunication system.
Logistics
Pipeline construction has been segregated into thirteen spreads - two in Bolvia and eleven
in Brazil. Each spread will have one permanent camp and smaller camps which will move
as construction progresses along the right-of-way. Camp site locations in Bolivia have
been identified using the following criteria:
*  Minimize disturbance of virgin ground
* Maximize use of readily available access roads
*  Minimize number of camps and the size of the areas, primarily by 1) using areas for
multiple purposes such as camp and storage and 2) using one camp location for two
construction spreads at different times
*  Minimize distance to storage yards
Location of camps in Brazil will be determined by the construction contractors, with the
approval of the Project Sponsors' environmental team. The camp site locations must also
have approval from the municipal governments and the local environmental authorities.
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Camps will be located away from small towns, and will not be pernitted in sensitive
vegetation areas.
Extensive logistics studies have been conducted to determine methods for transportation
of pipe and materials to the work sites. Seven possible sea ports have been identified for
use in the project - four in Brazil, two in Argentina, and one in Chile. Internal ports on the
Paraguay river near the Bolivia-Brazil border will also be utilized for offloading. Pipe
imported through ports in Argentina may be transported by river to the Bolivia-Brazil
border, then by train or roadway to designated storage yards in Bolivia and Brazil.
Materials may also be transported from Argentina via the Belgrano Railway to Santa Cruz,
then to storage sites by rail.
Pipe received through the four Brazilian coastal ports will be transported to storage areas
by truck. Pipe received through the port in Arica, Chile, will be transported by truck to
Santa Cruz, then to storage yards by railway.
There will be two primary storage areas in Bolivia and four in Brazil. From the storage
yards, pipe will be transported by truck to the right-of-way for stringing.
No new access roads are proposed for the project; however, in some cases existing access
roads will be upgraded. The majority of the required rework consists of drainage
improvements and reshaping of existing roadways.
Construction
TIhe construction right-of-way will be a maximum of 30 meters in Bolivia and 20 meters in
Brazil. The additional width is required in Bolivia to provide free movement of
construction equipment in this area of limited infrastructure. The permanent right-of-way
will be reduced to 17 meters in Bolivia following construction. The pipeline will be
installed approximately one meter below grade, or deeper in agricultural areas if required.
*          The pipeline construction will consist of several distinct phases, including clearing,
grading, ditching, lowering-in, backfilling, hydrostatic testing and restoration. Highway
crossings, river crossings and other unique topographic features may require the use of
specialized construction techniques to mitigate and minimize environmental impacts.
An Environmental Construction Plan describing basic environmental construction
techniques to be used for the project has been developed. The plan includes impact
minimization techniques that will be employed during and after construction. These
procedures have been designed to protect the environment and to minimize any potential
effects of pipeline construction. Topics covered in the plan include:
* Preconstruction planning and standard environmental construction methods
*  Erosion and sedimentation control practices, restoration and revegetation
*  Specialized construction methods including waterbody  and wetland  crossing
procedures and site-specific construction methods for environmentally sensitive areas
* Measures to prevent, contain, and control spills
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During the detail design phase of the project, the application of these procedures will be
defined on a site-specific basis for the entire pipeline alignment.
Gas Pipeline project implementation will be completed within a 36-month period,
beginning in January, 1997. The construction is scheduled to take place in two stages.
The first stage will commence with mobilization of the work force in May, 1997, and
completion scheduled for August, 1998. The second stage will commence in April 1998,
with completion in June, 1999.
4.0   Environmental Baseline Conditions
The study area in Bolivia was defined as an area located 10 km to the north of the Santa
Cruz to Puerto Suarez railroad and 10 km to the south of the proposed pipeline alignment.
This study area incorporates both the proposed pipeline route and the main route
alternative considered for the project.
For the purpose of physical and biological baseline studies, the indirect influence area in
Brazil comprises a 20 km wide strip, which was established based upon technical and
economic considerations. Various routing alternatives were analyzed within this area to
identify the optimum route from an environmental, technical, and risk perspective. The
direct influence area is a 1,000 meter area on each side of the center line of the proposed
pipeline.
For socioeconomic baseline information, the study area in Brazil includes the entire area of
all the municipalities crossed by the pipeline which have their administrative seats in the 20
km strip. The data was taken from official data sources, qualified when necessary by
primary data collected during field research. Archeological data was collected from all the
municipalities crossed by the gas pipeline, not just those with administrative seats within
the 20 km indirect influence area.
4.1   Physical Environment
Climate, Air Quality and Noise
The entire area of influence of the project in Bolivia is within the Steppe Climate zone
according to the Koppen classification system. In general, this climate is characterized by
warm dry winters, with mean temperatures over 23 degrees Centigrade. The distribution
of average annual rainfall varies from about 700 mm/yr in the southwestern portion of the
study area to more than 1000 mm/yr in the east.
The gas pipeline in the Brazilian sector will run through two very distinctive climatic units.
The first unit is the region between Corumba in the state of Mato Grosso do Sul, and
Campinas, in the State of Sao Paulo, where the climate is tropical with a wet summer and
a dry winter. In the Pantanal region there is a one to three month rainy season and a dry
period which extends from 90 to 270 days. In the second climatic unit from Campinas to
8



Porto Alegre the climate is classified as wet subtropical controlled by tropical air masses
with local changes due to steep hills.
The majority of the gas pipeline route extends through undeveloped or agricultural and
pasture land with minimal or no human activity. Consequently, the air quality and noise
levels along the pipeline right-of-way are, in general, associated with the natural
environment and correspond to low levels of air pollution and noise. The proposed
storage yards and compressor stations are to be located within or in the vicinity of small,
non-industrial urban areas. Air quality is good in these areas, and noise levels are in the
low to medium range.
Geology, Geomorphology and Soils
The Llanura physiographic province in Bolivia is a broad, northwest-southeast trending
trough which is bounded on the northeast and southwest by relatively elevated portions of
the Brazilian Shield and the Faja Subandina, respectively. The surface of the Llanura is
characterized by a nearly complete cover of quatemary aged sediments. These consist of
varying thicknesses of generally fine grained sediments (clay, silt, and fine sand with lesser
amounts of medium to coarse sand and gravel), which were deposited by alluvial, fluvio-
lacustrine, coluvial and eolian processes.
Lands surveyed in the Brazilian sector range from pre-cambrian to quaternary times.
Approximately 75% of the route is through sedimentary and volcanic rock of the Parani
Sedimentary Basin of the Paleozoic and Mesozoic ages. There are three environmentally
sensitive areas from a geological perspective, 1) the section between Corumbi and
Aquidauana, in the State of Mato Grosso do Sul in the Pantanal complex, 2) the region of
Planalto de Paranapiacaba, next to the border of the States of Sao Paulo and Parana,
where there is the greatest density of areas with high physical fragility, and 3) the uphill
portion of the foothills of Serra Geral, where there is a steep escarpment and the presence
of rocks and deposits of talus which subject the hillsides to extreme instability.
The entire study area has a low degree of seismic activity which is confined to shallow
surface layers, with a small probably of earthquakes due to the geotectonic configuration
of the region.  Coal deposits are present in some sections of the study area in Brazil,
principally in the State of Santa Catarina.
Hydrology and Water Resources
The study area in Bolivia lies on the drainage divide between the Amazon basin to the
north and La Plata basin to the south. The proposed pipeline route lies within the Llanura
Chaqueina, which is generally flat with very little relief except where the plain is cut by
occasional small streams and creeks. The most significant rivers which cut the Llanura
Chaqueiia in Bolivia include the Rio Grande and the Rio Parapeti, which drain the western
portion of the region and flow northward to the Amazon Basin; the southward flowing
Rio San Miguel, which drains the central portion of the region; and the eastward flowing
Rios San RafaeVAguas Calientes, Tucavaca, and Otuquis, which drain the Sierras
9



Chiquitanas in the eastern portion of the region, draining south and east to the Rio
Paraguay.
Rivers, streams, and creeks in the Llanura Chaquenia generally lack well-defined channels,
and are often characterized by broad meandering floodplains, frequent bank erosion and
channel shifts during periods of high flows. Large areas of the Llanura Chaqueiia are
subject to periodic flooding.
The proposed pipeline route in Bolivia also traverses two large wetland regions; the
Baniados de Izozog, associated with the Rio Parapeti and the Bainados de Otuquis,
associated with the Rio Otuquis and the Pantanal area. The Canion de la Victoria is an
intermittent connection between two distinct wetland systems, the Bafiados de Otuquis in
Bolivia and the Pantanal system in Brazil.
9          In Brazil the project will pass through the hydrographic basins of the Paraguay river, the
Parana river and the South Atlantic.  The Paraguay river basin drains an area of
approximately 500,000 square kilometers. The Paraguay River is the main drainage vector
of the Pantanal Complex which belongs to the Pantanal Depression geomorphologic unit.
T'he extreme flatness of the area, with reduced hydraulic gradients is responsible for its
very low drainage flow velocities. The Paraguay River is characterized by unstable banks
and a meandering bed. The Miranda river is a tributary of the Paraguay river within this
basin.
T'he Parana hydrographic basin has a total area of 2,600,000 square kilometers and
includes the Southeast region of Brazil, Paraguay, Eastern Bolvia, and Northern
Argentina. Its vast network of rivers include the Pardo, Verde, Parani, and Tiete. The
rivers are typical highlands rivers with flow directions following the topographic gradient
of the region.
T'he hydrographic basins of the South Atlantic are small, comprised of numerous small
rivers that run predominantly in a Southwest/Northeast direction in a course that is parallel
*          to the coastline. These rivers have origins in the backlands of the Serra do Mar, and upon
reaching lower lands, have meandering courses over sedimentary fluvial and marine
deposits. The Itajai Acu river basin has been impacted by high organic and chemical
discharges from the textile, metallurgical, and food industries located along the
Blumenau/Brusque axis.
4.2   Biological Environment
Flora
Various types of vegetation cover are present throughout the study area in Bolivia,
particularly since the area is a transition zone between the biogeographic regions of the
Cerrado and the Amazon to the north, the Chaquenfa region to the south and the Andes to
the west. The three main vegetation types are:
10



Dry Forest - The area between the Rio Grande and Rio San Miguel is
predominantly dry forest. The vegetation formations in this area are characterized
by dense low shrub species and low altitude trees. Scattered emergent trees,
approximately 20 meters in height are embedded in a matrix of smaller trees with a
relatively open understory. The ground cover stratum is dominated by shrubby
vegetation, and dense thickets of terrestrial bromeliads are scattered throughout
the forest.
Riparian Forest and Marshland - Riparian forests, characteristic of the Baniados
de Izozog region, grow along the Rio Parapeti These tall, dense semi-deciduous
forests remain flooded the majority of the time. In addition to the arboreal stratum,
the area is characterized by an abundant shrub stratum, vines and ferns. The
understory is dominated by tree saplings. Many palm species are also associated
with the riparian forests and other inundated areas such as the Tacuaral and
*i               Baniados Otuquis.
Savannah - Forested Savannah is present in broad areas east and southeast of the
serranias de San Jose de Chiquitos. In general, these areas are dominated by
grasses and sedges, with patches of dense shrub with heights ranging from 1 to 3
meters and small isolated trees. Scattered palms are in evidence in the eastern wet
portion of this forested Savannah area.
In Brazil, the majority of the area crossed by the pipeline route has already been impacted
by human activities. Much of the area is characterized by pasture, agriculture and
cultivated forest. Only small areas of primary vegetation remain. The main vegetation
types identified in the area of influence are represented as the following Ecological Zones:
Pantanal, Cerrado, Seasonal Forest, Atlantic Forest, Arauciria Forest, and Campo Limpo.
Each one of these types is directly influenced by its physical and/or socioeconomic
condition.
Pantanal Complex - The Pantanal is a complex mosaic of landscapes characterized
by at least six vegetation types, including Cerrado, Grassy Timbered Cerrado,
Cerrado Park, Cerradao, Semideciduous Seasonal Forest, and Deciduous Seasonal
Forest. In spite of being decharacterized by human intervention, the Cerrado still
maintains its dense arboreal character, constituted of elements of low and medium
height, with about 50% of the species comprised of trees and thorny shrubs. The
Grassy Timbered Cerrado is characterized by periodic inundations with a
predominantly creeping vegetation, mixed with rare shrubs. The Cerrado Park is
characterized small trees sparsely interjected over a continuous mat vegetation and
tufts of arboreal Cerrado vegetation. The Cerradao formation has an average
height of about 10 meters, occurring predominantly in isolated areas of the Pantanal
Matogrossense plains. The upper canopy of the deciduous seasonal forest has an
average height of about 20 meters, and is found in the area between the Paraguay
and Miranda rivers.
Cerrado - The Cerrado is characterized by the following vegetation types:
Cerradao, Cerrado Gramineo-Lenhoso or Campo Cerrado and Campo, the latter
11



being the result of intervention by human activity in the area. The Campo Cerrado
in this formation is extremely degraded, as a result of the burning for creation of
pastures.
Seasonal Forest - This type of forest usually occurs in regions under the influence
of two distinct seasons, a rainy season and a dry season, causing partial deciduality
of its arboreal species, primarily the ones which occupy the upper canopy of the
forest. This vegetation type is found only in scattered areas of the State of Sao
Paulo and small areas of Rio Grande do Sul, although in the latter area it has been
largely replaced by agriculture and pastures.
Atlantic Forest - The Atlantic Forest is a dense pluvial tropical forest located along
the Brazilian coast line near the Parana State border and parts of the State of Sao
Paulo. Its dense vegetation with an upper layer of trees approximately 25 meters in
height is characteristic of wet tropical areas, which do not have a biologically dry
period.
Araucaria Forest - The Arauciria Forest occupies areas of high altitude, primarily
in the Serra do Mar slopes. Its main characteristic is the large occurrence of Parani
pine, which is the dominant species of the upper canopy.
Campo Limpo - Within the study area, the Campo Limpo formation occurs almost
exclusively in the State of Rio Grande do Sul. It is characterized by a variety of
grass species growing in shallow soil layers.
Fauna
The composition and diversity of fauna present in the study area varies according to the
life zone and level of disturbance of the natural habitat. The temperate dry forest area of
the Chaco region has one of the highest mammahan species diversities on the continent.
The majority of the mammals present in this area have extensive distributions in this part
of the continent; however, this area also represents the southern limit of dispersion of
some of the large Amazonian mammals hke the capibara, jaguar, puma, and some primate
species. The Pantanal Complex has a great biodiversity system, with great areas of
flooded vegetation, which are habitat for some of Brazil's richest fauna. However, the
process of environmental modification that the area has experienced has significantly
reduced the populations of some species. The extensive use of land in Brazil for ranching
and agriculture has contributed to the declining populations in much of the study area.
The avifauna exhibits Amazonian influences from the north and Andean-Patagonian
influences from the south and southwest. In the western portion of the Bolivian study area
the most common bird species include parrots, toucans and wading birds. In the dry and
humid forest areas among the most common species are the charata, torcaza, toucan,
cardinal, American ostrich, and vulture. In the Pantanal and the Bainados de Izozog area
and in Isla Verde, large concentrations of ciconides and herons are present. Within the
study area are also a great number of migratory birds.
12



The herpetofauna are also rich, with the occurrence of diverse species of amphibians and
reptiles, and a great number of turtles. The Pantanal area also harbors several caiman
species and lizards.
The many rivers in the Project area of influence harbor a high ictofauna species diversity,
being surpassed in the neotropics only by the total existing in the Amazonian basin.
Species of Concern
The most pursued and threatened mammalian species include large mammals such as deer,
wild pigs, and large cats which are hunted for their meat and skin. The felines are hunted
indiscriminately because they are considered a threat to cattle which occupy a broad area
of the woodland. Among the species which require protection are Tayassu tajacu
(Pecari), T. albirostris (Tropero), Catagonus wagneri (Chancho rosillo), Alouatta caraya
0          (Mono Arania), Mazama americana (Urina), Tapirus terrestris (Anta), Dasypus
novemcinctus (Tatu), Priodontes maximus (Tatu[ carreta), Tolypeutes tricinctus, Panthera
onca (Jaguar), Felis concolor (puma or lion), Blastocerus dichotomus (Pantanal deer),
Hydrochaeris (Capivara), Chrysocyon brachiurus (lobo-guari), and Ozotocerus
bezoarticus (campeiro). The Chacoan peccary, blind armadillo, and the Chaco race of the
guanaco are endemic to the Chaco and are not adequately protected in any other
conservation area.
There are also a great number of avifaunal species which are threatened with extinction or
that have a declining population, including Amazonetta brasiliensis, Anodorhychus
hyacinthinus, Amazona xanthrops, Columbina cyanopis, Alecturus risoria, Ara ararauna,
Culcivora caudacuta, Nothura minor, and Falco deiroleucus, among others. A great
number of migratory birds, like the macaricos and the swallow are also in the process of
reducing their populations.
The reptile species which is most threatened due to intense hunting is the cainian. In
Bolivia, the Caiman yacare is intensively pursued, although there are laws to protect these
0          reptiles. In Brazil the Eunectes notatus, Dracaena notatus and a great number of turtles
are also endangered.
Threatened plant species in the Chaco area include Bulnesia sarmientoi and several
species of orchids. There are also many ecologically critical vegetation species found in
Brazil, such as Aspidosperma, Bromeria, Cereus, Mimosa, Curatella americana, and
Agonandra brasiliensis. A complete list is included in Chapter 4 of the Environmental
Impact Study for the Brazilian sector of the project.
ProtectedAreas andAreas of Environmental Sensitivity
In Bolivia the most ecologically sensitive area impacted by the project is the Gran Chaco
National Park and Integrated Management Area, instituted in 1995 to protect the largest
tract of subtropical dry forest in the Americas. The other protected area in Bolivia
potentially impacted by the project is the Historical National Park of Santa Cruz La Vieja.
National parks in Bolivia are areas of ecological or historical significance which are set
13



aside and protected, to allow natural evolution and development of existing ecosystems
with mmiimal human intervention. Integrated Management Areas are areas which have a
management plan for the controlled use and development of renewable natural resources.
The management plan is designed to maintain a balanced interface between man and the
ecological environment. The Gran Chaco and the adjacent Baniados de Izozog are rich in
biodiversity and high in floral endemism. The Chaco is the largest protected area in South
America and contains one of the highest mammalian species diversites on the continent.
In Brazil there are three primary areas of environmental sensitivity - the Pantanal Complex,
Mata Atlantica, and Aparados da Serra. A 70 km stretch of the pipeline from the Verde
River to a point just south of Miranda in the state of Mato Grosso do Sul will traverse the
Pantanal, which is the world's largest fresh water swamp. The Pantanal is a unique
ecosystem which is habitat for many of the world's threatened and endangered species.
The Mata Atlantica is an ecologically sensitive forest which has been officially designated
as a protected area. The cutting of vegetation in this area is forbidden by federal decree,
unless specifically approved by IBAMA. The pipelne will cross 70-100 km of Mata
Atlantica in the state of Santa Catarina, approximately 62 hectares of forest. The Mata
Atlantica is notable because of its diversified fauna and flora, primarily smaller mammahan
species and avifauna. The forest area is somewhat fragmented, however, due to farming,
ranching and silviculture. The Aparados da Serra which is located on the boundary of the
states of Santa Catarina and Rio Grande do Sul is a legally protected area. The area is
particularly sensitive to erosion and is characterized by patches of Mata Atlantica, steep
topography and associated talus deposits. There is significant rainfall associated with this
topographic variation which accelerates the erosion process.
The following Legally Protected areas are located close to the Project Influence Area in
Brazil:
- Pantanal Arenoso Biological Reserve;
- Pantanal Matogrossense Environmental Protection Area;
* Corumbatai Environmental Protection Area;
. lbitinga Environmental Protection Area;
* Ipanema National Forest;
* Aparados da Serra National Park;
• Serra Geral National Park;
• Mata Atlantica Biosphere Reserve; and
* Permanent Preservation Areas (ciliary woods, marshes, areas of high slope)
4.3   Socioeconomic Environment
Land Use
Most of the study area in Bolvia is under natural vegetation cover. Low precipitation and
relatively poor soils limit the capacity of the land to sustain intensive cattle ranching or
agricultural activities. Human concentrations are scattered. The most prevalent land use
type is lowland deciduous forest, which has been developed only to a small extent by the
14



logging industry, apparently due to the lack of moisture, which limits the development of
commercially valuable timber resources. The second most prevalent land use type is the
lowland pasture and/or shrubland, which is used for low density grazing and limited
agriculture, and found primarily in the central portion of the study area. The floodplains of
the Parapeti River in the west and the Otuquis River in the east which are characterized by
abundant surface water, as well as shallow groundwater, support limited agricultural
development, primarily rice. The most significant areas of cultivation occur in the western
portion of the study area, mainly to the west of the Rio Grande. Principal crops grown in
this area include soybeans, sunflowers, barley, and corn.
In Brazil the predominant land use in the study area is pasture, which occupies
approximately 60% of the total area. Natural vegetation cover occupies 15%, and
agricultures occupies less than 10%. The distribution of these land uses varies among the
states.
Two thirds of the land in the state of Mato Grosso do Sul is utilized for ranching, due to
the native grasses which constitute the basic feed support for cattle. A small amount of
the land is used for crops, principally soybean, rice and wheat. In Sao Paulo, the primary
land use is agriculture, principally sugar cane. Remnants of the Mata Atlantica (Atlantic
Forest) are also found within this state, near the Parani border. The forest in this area has
been greatly altered by agricultural and ranching activities. In Parana, 40% of the land is
agricultural, and 20% is used for cattle grazing. Natural forests and vegetation occupy
approximately 15% of the area, and 8% of the land is used for commercial tree farms. In
Santa Catarina, the primary land use is agriculture, with a large number of annual crops
such as banana, rice, pineapple, sugar cane, tabacco, and manioc. The principal land use in
Rio Grande do Sul is ranching (65%), followed by natural forests (22%). Annual crops
occupy a small percentage of the study area.
Population
The sparsely populated study area in Bolivia is concentrated in six urban settlements, with
*          a combined population of less than 50,000 inhabitants - Pail6n, San Jos6 de Chiquitos,
Robore, El Carmen, Puerto Suarez, and Puerto Quijarro. There are three indigenous
groups located within the study area: the Ayoreos, Chiquitanos, and the Izozeio
Guaranis. The Ayoreos have a semi-nomadic culture and inhabit the areas located along
the Santa Cruz-Puerto Suarez railroad. The Chiquitanos reside primarily in areas located
in the vicinity of San Jos6 de Chiquitos. The Izozenios live along the Parapeti River in the
area of the Bafnados de Izozog. The twenty-two communities in Izozento Guarani group,
with a total of 7500 people, are well organized and constitute the Capitania del Alto y
Bajo Izozog (CABI). It is not anticipated that there will be any resettlement in the
Bolivian sector due to the pipeline project.
In Brazil, the population in the indirect influence area of the pipeline is approximately
seven million, with over 90% being concentrated in urban areas. The demographic density
is approximately 50 inhabitants per square kilometer. There are four indigenous groups in
the pipeline area, three located in the states of Mato Grosso do Sul and one in Santa
Catarina. The indigenous lands of Mato Grosso do Sul are a territory of the Terena
15



Indians, with a population of approximately 3500. These indigenous people have had
many years of contact with other groups of Brazilian society and have integrated into the
regional life as agricultural and urban workers. The Guarani Nandeva Indians in the state
of Santa Catarina have historically lived a semi-nomadic hfe, existing upon hunting, fishing
and subsistence agriculture. This social organization is changing, and the few remaining
Indians are concentrated in one family unit living in the area of Palhoca.
Economy
The Bolivian macroeconomy faced a deep crisis in the mid-80's. Inflation rose to 24,000
percent in 1985. However, since 1985, Bolivia's economy has stabilized, and the country
has maintained the lowest comparable inflation rate in South America.
*l         The main sources of income for the population in the Bolivian study area are agriculture,
ranching, various government institutions, and trade. The area around Pail6n has fairly
fertile soil, and the majority of the population is employed by large scale agroindustrial
farms. In San Jose de Chiquitos and Robore, the majority of the urban population is
employed by the government, the railroad, or various commercial establishments.
Ranching also contributes to these local economies. El Carmen has a 60% unemployment
rate. Employment is available plimarily through the logging concessions in the area and
cattle ranching. Due to their proximities to the Brazilian border, the economies of Puerto
Quijarro and Puerto Suarez are based almost exclusively on activities involving border
trade.
Brazil also faced a severe economic crisis during the 1980s, but since July, 1994 the
economy has stabilized. In the Brazilian study area there is great economic diversity, with
some municipalities being typically agricultural or pasture land and others very
industrialized. In Mato Grosso do Sul ranching is the predominant economic activity,
followed by annual crops like soybeans and wheat. Border trade also contributes to the
local economy in Corumbi. Sao Paulo is the most industrialized state in Brazil, with a
*          concentration of industrial activity in the Arauquaria/ Paulinia/Campinas area. Production
of sugar cane and citrus crops are also important sources of revenue in this state. The
economies of Parana, Santa Catarina and Rio Grande do Sul are primarily based upon
industry, services, and agriculture.
Education
Basic education in the Bolivian study area region consists of a limited number of pre-
schools, primary schools, and high schools. The Mennonite colonies, primarily in the
western portion of the study area, have implemented their own educational systems based
mainly on their cultural and religious beliefs. Because the area is rural, there are a limited
number of technical schools, and due to the lack of universities, the majority of the
population does not have access to higher education.
In Brazil the educational infrastructure is reasonably proficient because the pipeline route
crosses some of the most developed states in Brazil.  There are many universities,
16



concentrated in the larger cities. The better universities are owned by the state, although
there are many private institutions. There are fewer schools in the rural areas which are
typically owned by the State, and they have a larger student-teacher ratio. The best
primary and secondary schools are typically privately owned.
Health and Safety
The medical facilities in the villages in Bolivia are comprised of small, minimally-equipped
hospitals and first aid posts. The medical work force is lmited, with often only one
physician and one or two nurses, supported by several midwives located throughout the
region. The most common diseases are dysentery, malaria, lung infections, parasites,
bronchopneumonia, measles, and tuberculosis. There is a high rate of infant mortality as a
result of poor living conditions, deficient health care and education services, and diseases
such as dysentery and malaria.
Medical facilities in most of the project area in Brazil are fairly well equipped, and the
medical staff is generally well trained. The most common diseases are hepatitis, dengue
fever and parasitic diseases. In Mato Grosso do Sul there is also an incidence of malaria,
yellow fever and rabies.
Cultural and Archeological Resources
T'he '"Ethnic, Territorial, and Archeological Map of Bolvia" does not indicate any cultural
or archeological resources in the study area. However, literature research has identified a
limited number of sites in the general area, none of which are in the immediate vicinity of
the pipeline route. The most important historical sites in the region are the Jesuits
Cathedral and the Santa Cruz la Vieja National Historic Park, both of which are located in
San Jose de Chiquitos.
In Brazil, much of the project area of influence has a high archeological potential due to its
historical occupation by indigenous people. There are 615 known archaeological sites in
*          the municipalities located within the five states traversed by the pipeline, most of which are
outside the direct influence area of the pipeline. In Mato Grosso do Sul, one sees a
predominance of earthen archaeological sites. In Sao Paulo, most of the sites are stone,
while in Parani 96% of the archaeological sites are ceramic. In the State of Santa Catarina
and Rio Grande do Sul, there is a predominance of sambaquis and ceramic sites. The most
significant buildings of historical interest are generally located in the main towns. The
majority of these churches, homes, monuments and squares are protected on a state and
municipal level.
5.0   Analysis of Alternatives
Various siting and construction alternatives have been evaluated for both the Bolivian and
Brazilian sectors of the project. The final route was determined to best balance overall
impacts to the human, biological, and physical environment while achieving its overall
purpose, which is to transport natural gas from the petroleum fields near Santa Cruz to
17



markets in southern Brazil through an enviromnentally acceptable and economically viable
pipeline route. Major alternatives considered are summarized in the following paragraphs.
Bolivia
Two alternate routes for the Bolivian sector were evaluated by CUMAT in a study
performed in 1990. The first alternative was a route running parallel to an existing
railroad between Pail6n and Puerto Suarez. Under this alternative, the pipeline would run
adjacent to or through the populated centers of Pail6n, San Jose de Chiquitos, Robor6, El
Carmen, and Puerto Suarez. The second alternative followed a relatively straight route
from the Rio Grande Gas Plant to Puerto Suirez, across the Bolivian Chaco region. The
second alternative was preferred from an environmental perspective, mainly because it
traverses relatively homogeneous terrain and avoids areas of slope instability along the
southern foothills of the Sierras Chiqutanas. This alternative is shorter in distance and
impacts less area of undisturbed forest and marshland. During the Environmental Impact
Study performed in 1996 this route was fuirther evaluated and modified to minimize
potential environmental impacts, especially in areas of high environmental sensitivity such
as the Canion de la Victoria which is a key element of the hydrolic balance between the
Pantanal in Brazil and the Baniados de Otuquis.
Brazil
Numerous alternatives have been considered in finalizing the pipelne route in Brazil, due
to technical, economic and most importantly environmental considerations. In defining the
route, the goal has been to minimize potential environmental impacts by avoiding steep
slopes, areas of primary and secondary vegetation, protected areas, and urban areas. A
notable example of how alternative routing was selected to minimize environmental
impacts is in the Pantanal. The original route was 40 km North of BR-262, in a sensitive
area of the Pantanal. The route was moved South into a previously impacted area parallel
to the highway to reduce impacts. In the State of Santa Catarina, the original route passed
within 50 meters of mines in coal exploitation areas. After evaluation of alternatives, the
route was deviated to avoid these mining areas. Satellite imagery and aerial photography
have been carefully evaluated to fine-tune the route and avoid forested areas and other
areas of primary vegetation.
No PAoject
The "no project" alternative was also evaluated. If the project is not implemented,
potential adverse impacts on the human, biological and physical environments as a result
of the proposed project would not occur. However, there would be no potential positive
impacts realized as a result of project implementation such as improved air qualty due to
use of clean burning natural gas in Brazil, increased employment opportunities, improved
area infrastructure, and especially the generation of public revenues that can be used for
health and education in Bolivia.
18



6.0   Environmental Impacts and Mitigation Measures
lnipacts in the Bolivian sector were analyzed using a combination of matrices, modeling,
and map overlays developed in a Geographic Information System (GIS). An impact
identification matrix was used to determine associations between the project activities and
the environmental parameters, based on predicted modifications to the existing
environmental conditions as a result of construction and operation of the project. For
each possible combination of activity and environmental parameter, an assessment was
made as to whether the baseline condition of a given environmental parameter is likely to
be modified by the project activity. The GIS-based map overlays were used in the
quantification of the impacts on individual environmental parameters such as soils and
vegetation.
A total of 25 impacts were identified in the Brazilian sector, based upon field studies,
research, and evaluation of satellite imagery and maps. To mitigate these impacts and
ensure regulatory compliance, ten environmental programs have been proposed. These
programs and their costs are described in the annex tables included in the 1996
Environmental Impact Study prepared by PETROBRAS. The impacts were classified in
accordance with standard evaluation criteria. A composite summary of impacts and
mitigation measures for the overall project are summarized in Table 1 of this Executive
Summary.
6.1   Physical Environment
Air Quality andNoise
The potential air quality impacts identified are associated with the following activities or
conditions in the study area:
* Dust associated with site grading, road and building construction activities.
*  Pollutants related to construction equipment exhaust and welding activities.
* Emissions associated with the operation of the proposed compressor stations.
* Availability of natural gas as a fuel and energy source in Brazil
Impacts to air quality during the construction phase will be temporary and localized. An
air screen model of the four proposed compressor stations in Bolivia was run using the
SCREEN3 simulator program. The model predicted the project in-stack emissions rates
for PM1o, SO2, and No, will be well below the World Bank Emission Guidelines for gas
turbine sources and Bolivian air emission standards. No exceedances of the World Bank
Guidelines for ambient air quality were predicted for any of the pollutants modeled.
However, the model did predict a minor exceedance of the Bolivian 1-hour and 24-hour
national ambient air quality standards for No,. Identical equipment will be used for the
compressor stations in Brazil.
To prevent or minimize potential air quality impacts, the following measures will be
applied. Where available, water will be used to wet construction areas for dust control.
19



All engines will be properly maintained to minimize emissions of contaminants. Detail
design will consider modifications to stack height and other parameters related to the
operation of the compressor stations to ensure compliance with applcable regulations.
The noise from camps and construction activities along the pipeline alignment and the
compressor station sites could affect wildlife and human settlements. This impact will be
minimal and temporary. Compressor stations have been sited to avoid heavily populated
and sensitive wildlife areas, which will minimize noise impacts during operations. Workers
will be exposed to noise generated by compressor station equipment which will be
mitigated by utilizing hearing protection devices.
Due to the substitution of clean-burning natural gas in Brazil other less attractive fossil
fuels such as medium and heavy fuel oils with some sulfur content, there will be a
reduction in the levels of atmospheric pollution, particularly in the metropolitan and
industrial areas. Unlike oil and coal, natural gas contains httle sulfur, which produces
sulfur dioxide emissions upon combustion. Nitrogen oxides and carbon dioxide emissions
and particulates emitted from the burning of natural gas are also lower compared to coal
and oil. The increased availability of natural gas in Brazil will result in an improvement in
air quality through replacement of alternative fuels which are more polluting sources of
energy.
Geology, Geomorphology and Soils
The potential impacts identified related to geology, soils, and seismicity are associated
with the following activities or conditions in the study area:
-  Ground disturbance resulting in wind and water erosion
e Localized ground disturbance from blasting
* Damage to project facilities from geohazards and differential settlement
* Interference with mining activities in Brazil
*          The primary impact of the project on soils is an increase in erosion potential in areas where
soil becomes exposed by vegetation removal and areas where soils are physically disturbed
by trenching, spoil piling, and backfilling. Because the majority of the pipeline in Bolvia
will traverse relatively flat areas with natural vegetation cover and low precipitation, it is
anticipated that the potential for erosion will be low. The erosion potential is somewhat
higher in some areas of Brazil, due to topographical features. Highly limited areas, from a
construction point of view, such as hill slopes greater than 30 degrees, and terrains subject
to erosion will be avoided where possible. To control erosion, appropriate erosion
prevention and control techniques will be employed during construction, as descnbed in
the Environmental Construction Plan developed for this project.
Some areas will be replanted with natural vegetation to inhibit erosion. However, due to
the limited rainfall in much of the Bolivian project area, the recovery of native vegetation
and restabilization of disturbed areas will be a slow process. Vegetation recovery will be
rapid in areas of higher precipitation. In some areas, the adjacent vegetation will serve as
a barrier against wind and as a source of seeds for natural revegetation to occur. Overall,
20



the erosion potential is considered minimal as the right-of-way will disturb only a very
narrow strip of soil.
Cambrian outcrops in the Puerto Suairez area, mountainous areas principally in the State of
Parani, and the rocky plateau in the Aparados da Serra may necessitate blasting, but this
should not have a significant effect on the geomorphology with the implementation of
managed blasting procedures. Soil compaction will be minimized through application of
soil restoration techniques during final grading. Due to low levels of seismic activity and
the absence of known, active faults in the study area, the potential for damage to project
facilities resulting from a seismic event is negligible.
The final alignment of the pipeline route in Brazil was delineated to avoid the numerous
mining sites. In cooperation with the National Department of Mineral Production
(DNPM), attempts will be made to place restrictions on mining hcenses granted in the
future to avoid interference with the pipeline. Project sponsors will work with EBAMA
and the DNPM to develop a Minerals Investigation Program to precisely identify the
location of valuable mineral deposits.
Hydrology and Water Resources
The potential impacts related to hydrology, hydrogeology, and water quality are
associated with the following activities or conditions in the study area:
*  Increased sediment loads
*  Disruption to local hydrology due to wetland and water body crossing activities
-  Groundwater and surface water withdrawal to support both construction and
operation activities
*  Reduction in groundwater or surface water quality
For each significant river crossing, detailed studies of its hydrological conditions have been
conducted to determine the best crossing method. To minimize sedimentation in water
bodies and disturbance to wetland areas, controlled procedures for wetland and water
body crossings will be implemented. Most of the river and stream crossings will be
constructed using open-cut methods which could suspend sediment in the streams.
However, many of the rivers to be crossed are shallow and carry heavy sediment loads,
and the additional load is expected to be temporary and localized. Clearing of vegetation,
trenching and storage of topsoil in the study area may also result in increased soil erosion
and sediment load carried by surface runoff from the disturbed areas. The Paraguay and
Itajai-Acu rivers have very active beds and will be crossed by directional drilling which will
eliminate the potential for sedimentation.
During the peak construction period, more than 1,600 persons will be on the project in
Bolivia in various locations. Potable water for these workers will be withdrawn from
wells at multiple locations installed at depths ranging from  lOOm to 200 m.  The
groundwater resources of these aquifers are recharged mainly by infiltration of rainwater,
and the expected annual recharge is relatively high. Therefore, impacts from groundwater
withdrawal to meet the domestic water requirements of the project are considered less
21



than significant. Aquifer mixing will be prevented by properly casing the wells. In Brazil
it will not be necessary to drill water wells for potable water.
The majority of the water used for hydrotesting the pipeline is expected to be withdrawn
from  surface waters.  To mitigate impacts to aquatic life, volumes of water for
hydrotesting will be limited. The pipeline will be tested in 20-30 km segments, requiring
withdrawal of approximately 15,000 m per test segment. Thus, the impact of withdrawals
from surface waters in considered less than significant.
Groundwater and surface water quality will be protected through the implementation of
appropriate spill prevention and control measures. Potential impacts will be avoided or
minimized by applying proper techniques to manage and dispose of hazardous materials.
Domestic and sanitary wastewater generated at work camps and pipe storage yards will be
treated prior to disposaL Extended aeration package plants or conventional septic system
drains will be constructed to provide treatment. Impacts are not expected to be significant
0          due to the short construction period and relatively small volume of discharge anticipated.
6.2   Biological Environment
Flora
Throughout most of the proposed pipeline corridor in Bolivia, a five meter wide strip of
vegetation was cleared in 1993 in preparation for route survey and project implementation.
Additional impacts will result from expansion of the cleared area to a width of 30 meters
for pipeline construction. In most areas of the pipeline corridor, native herbaceous and
shrubby species are expected to revegetate naturally following completion of pipeline
construction. Due to the nature of the soils and dry climatic conditions, revegetation of
the pipeline corridor in the Chaco may require more time than the remainder of the
corridor. The Aeolic Plain will be replanted to expedite revegetation in this area. There
will be a permanent loss of forested canopy in the 17-meter wide permanent corridor, but
the canopy will return to the portion of the right-of-way which is not required for
*          maintenance of the pipeline.
In Brazil 85% of the area crossed by the gas pipeline has been previously impacted by
human activity. Remnants of original vegetation affected by the project are found in only
15% of the area, and only 7% of these areas will not readily regenerate. Where
appropriate, areas will be replanted with native species collected from surrounding areas.
This will be done in the Pantanal Matogrossence in areas of Chaquena vegetation, in the
Araucarias Plateau and the Aluvial Pioner Formation. Workers involved in the project will
be instructed about the importance of preserving natural vegetation, and construction
activities will be monitored to ensure this is done.
Fauna
Potential impacts affecting animal populations include the following:
* Permanent loss or fragmentation of wildlife habitat.
22



* Disturbance to important habitat elements such as breeding, foraging, and cover areas.
• Displacement of individual animals during construction or maintenance.
* Temporary disruption of movement patterns of animals across the right-of-way.
* Direct loss of wildlife from construction activities or increased hunting pressure
The most substantial wildlife impact associated with the project will be the conversion of
habitat in the permanent maintenance corridor. However, along portions of the right-of-
way which were previously cleared for route survey, additional impacts will be minimal
due to the fact that impacts to faunal species have already occurred. Clearing of vegetative
cover in the right-of-way will affect the nesting and foraging habitat for some wildlife
species, but this impact will be minimized by restricting the permanent right-of-way strip
to a narrow corridor.
Additional impacts on wildlife include disturbance, displacement, and mortality during
construction. These impacts will be miimized by training the work force regarding
protection of natural resources, including wildlife. Construction activities will be carried
out as quickly as possible to diminish exposure time. The construction area will be
monitored, and animals which may fall into the pipeline trench will be rescued.
Aquatic species in the area of the Pantanal, floodplains and major river systems are
expected to be adversely impacted by high turbidity generated by construction activities.
However, impacts are expected to be short-term Fish species and mobile reptilian and
mammalian species will likely move out of the area temporarily, but should return
following completion of construction activities. Non-mobile species including benthic
invertebrates and any bivalves will be eliminated in the construction corridor, but are
expected to recolonize impacted areas quickly from surrounding areas.
To minimize loss of wildlife during construction, hunting and fishing by construction
crews will be strictly forbidden. Intruders will be prohibited from entering wildlife areas
during construction. Although the pipeline corridor will open access to previously
undeveloped areas which might increase hunting activities, this will be controlled in the
operations phase through the use of signs, fences and barricades.
Species of Concern
Impacts to terrestrial and wetland/aquatic plant and animal species identified as species of
special concern are expected to be minimal and temporary. Temporary displacement of
some species from the construction area will occur, and for some species movement
across the right-of-way will be hampered during construction activities. After completion
of construction, however, the right-of-way will be allowed to naturally revegetate as much
as possible, and affected species of special concern are expected to return. To mitigate
impacts to the wildlife populations, hunting will be strictly prohibited for anyone
associated with pipeline construction and maintenance operations.  Impacts to the
population of protected floral species are expected to be insignificant.
23



Protected Areas and Areas of Environmental Sensitivity
Project activities will be conducted in the vicinity of two protected areas in Bolivia: the
Integrated Management Area of the Gran Chaco National Park and the Historical National
Park Santa Cruz La Vieja. Direct impacts in the Gran Chaco will be limited to clearing of
the right-of-way. Secondary impacts may include the risk of colonization of areas in and
around the park due to the establishment and maintenance of the right-of-way; however,
this potential is deemed low. Indirectly, the possibility of increased hunting pressure
within the park boundaries exists, and specific measures will be implemented to prevent it.
The access road from San Jose de Chiquitos to the right-of-way traverses the Santa Cruz
La Vieja park. The park will be affected by road improvement work and increased traffic
in the area. To mitigate any potential adverse impacts, the area will be closely monitored,
and access to the park will be controlled. The work force will be educated in the
significance of the park to Bolivia's national heritage and the necessity to protect this
historic site.
T'he project sponsors propose to make a contribution to Bolvia's National Endowment
Fund as an offset mitigation for direct and potential indirect impacts of the project.
Revenues from the contribution will be earmarked for the management of parks in the
Department of Santa Cruz finded through this program, primarily the Gran Chaco
National Park. Administration of the funds will be managed by Bolivia's National
Secretary of Natural Resources and the Environment.
To develop a plan to minimize potential environmental impacts in the Pantanal, extensive
environmental studies have been completed. The route was finahzed in this area based
upon technical analysis and environmental considerations. For the most part, the pipeline
will run parallel to an existing highway, which is a previously impacted area. Seasonal
considerations and implementation of specialized environmental construction techniques
and will further mitigate any adverse impacts.
The Mata Atlantica is a fragmented region in which areas of high ecological significance
are interspersed with areas of low sensitivity. The route through this area was carefully
selected to avoid environmentally significant areas to the extent possible, and additional
impacts are expected to be minimal. Where environmentally sensitive areas cannot be
avoided, they will be compensated.
Afler a comprehensive evaluation, it was recommended that potential impacts of soil
erosion in the Aparados da Serra be mitigated by utilization of specialized construction
techniques.
6.3   Impacts on the Socioeconomic Environment
Land Use
24



Some changes in land use are expected to occur as a result of project implementation.
However, the Project Sponsors plan to restore land as much as possible to its pre-project
condition. Conversion of land from existing uses such as farming and grazing has the
greatest potential to create adverse social and economic impacts to rural households.
Temporary conversion of land to support pipeline and facility construction may result in
the loss of one to two years' use for crops and grazing. Landowners will be compensated
for their losses. Little of the land along the pipeline route, storage yard or camp locations
is currently under human use, so this impact is expected to be minimal. Project facilities
have been sited to avoid areas of socioeconomic value as much as possible.
The project will create an increase in vehicular traffic, primarily during the construction
phase. This impact will be mitigated by upgrading the access roads to work sites, camps
and storage areas. Signs will be posted on access roads, and communities will be informed
about traffic conditions.
0          The possibility exists for indirect land use impacts due to utilization of portions of the
right-of-way as a trail or road, which may promote illegal trade, increase mobilization and
colonization pressure. However, the project does not intend that the right-of-way be used
as an access road and will provide measures to prevent such use. Signs, barriers and gates
will be installed, and the area will be monitored on a regular basis.
Population
The study area will experience a small and temporary increase in population during the
construction phase due to the influx of workers. Impacts to the local populations will be
minimized by siting camps away from smaller towns and utilizing local labor as much as
possible. While workers will be housed in camps along the right-of-way, it is expected
that they will visit the main population centers in search of relaxation and entertainment
during work breaks. One of the primary areas expected to be impacted is El Carmen in
Bolivia, where an 800-person camp will be located. The presence of the working crew
will be continuous, adding to the demand for services in this town. El Carmen should
experience an overall positive impact due to the necessity to improve the water and
electrical supply to support camp activities.
The project will increase the risk of accidents to the population due to the transportation
and distribution of gas. This risk will primarily affect the population living in the
immediate vicinity of the pipeline. The pipeline will include design factors to mitigate
safety risk. Risk Management and Emergency Response plans will be developed and
implemented to respond to unexpected events.
The project could potentially impact the indigenous people in Bolivia by opening up
previously inaccessible areas of forest, which would reduce the forest areas available for
indigenous use. However, since the right-of-way was partially cleared in 1993, no
evidence of colonization has been detected.  Therefore, this impact is considered
insignificant.
25



Impacts to indigenous groups have been fruther mitigated by the establishment of the Gran
Chaco National Park, which gives legal protection to the core territory of these groups.
Through a contribution to Bolivia's National Endowment Fund, interest earnings will be
designated to benefit the management of the Gran Chaco National Park by subsidizing
park rangers and the construction of ranger stations.
To mitigate adverse impacts to the population, the project will maintain a Community
Relations program to promote good relations with the communities in the influence area of
the project, as well as providing environmental education and information. Preference will
be given to local hiring. Impacts on local populations are considered to be minimal and
temporary. No displacement of households is anticipated for the project.
Economy
The project will provide substantial direct financial revenues to Bolivia and Bra2il through
the sale and purchase of natural gas. Additional revenues will be generated through taxes
on local goods and services. This economic impact will benefit both countries on a
national, regional and municipal level throughout the life of the project.
The project will employ several thousand Bolivian and Brazilian nationals during peak
construction of the pipeline, some of whom will be retained as operations and maintenance
personnel. This increased employment will improve the local economy, primarily on a
short-term basis during construction.
Urban areas will experience some increase in the demand for goods and services from
pipeline construction and operations personnel, which will be a positive impact of the
project. The potential exists for inflationary prices, which would have a negative impact
on local residents, but this potential is not considered to be significant.
Education
National and expatriate project personnel will receive education and training in safety,
environmental protection, and basic work practices. Comprehensive training will be
provided to craftsmen to develop entry level and mid-level construction workers, and
technical training will be administered to ernployees as required to prepare them for their
assignments. This education and training would be considered a beneficial impact of the
project on the national work forces. There is not expected to be any impact on the local
education systems.
Health and Safety
Medical facilities in the urban areas will be upgraded to provide adequate medical care for
personnel involved in the pipeline construction. This will have a positive impact on the
available health care for local populations. With the temporary influx of people during
construction, there may be an increase in contagious diseases, particularly sexually
transmitted diseases. This adverse impact will be mitigated through education programs,
26



periodic health examinations and prophylactic health care. The increased risk of parasitic
diseases such as malaria will be mitigated by chemoprophylaxis programs.
A Construction Safety Plan has been prepared to provide explicit instructions for accident
prevention, occupational health, and construction safety procedures. The manual will
apply to all contractor and subcontractor personnel as well as project personnel.
Archeology
No potentially significant impacts to cultural, archeological, or historical resources have
been identified in the area of direct influence of the gas pipeline. However, an Accidental
Discovery Plan has been developed to provide guidance in the event such resources are
encountered during construction. An archeologist will be present during construction in
areas with a high potential for archeological or cultural resources.  Any artifacts
discovered will be reported and/or salvaged in accordance with applicable governmental
requirements and the Project Archeological Plan.
7.0   Public Consultation Program
In accordance with Bolivian and Brazilian regulations, public consultation programs were
conducted during the preparation of the Environmental Impact Studies for the Bolivia-
Brazil Gas Pipeline project in each country. In addition, project sponsors have been
involved in numerous informal sessions to discuss project issues with the people.
In Bolivia project sponsors held a series of public meetings and visitations with
government authorities, nongovernmental organizations, organizations of indigenous
peoples, and affected communities. Sponsor representatives participated in the program,
which was attended by approximately 850-900 people. The meetings in six affected
municipalities followed an interactive approach to identify and discuss environmental
issues associated with the project. This consultation assisted with identification of possible
project impacts, reconciliation of opposing views about the project, discussion of licensing
requirements, and promotion of understanding of the nature and extent of any social or
environmental impacts.
The primary concerns of the Bolivian people were employment and basic needs such as
water and electricity. These concerns are being taken into account in project planning.
Preference will be given to utilizing local labor in the project. To the extent possible,
water wells drilled for the project will be left for use of the people, and consideration is
being given to donating electrical generators to some of the communities upon completion
of construction. Additional information on this subject is included in chapter 8 of the
Bolivian Environmental Impact Study.
In Brazil, numerous meetings have been held with municipal, state and federal government
bodies, the scientific community and the concerned population to discuss the project.
Interviews have been conducted with community leaders, and extensive research has been
done in museums, universities, and various institutions. Videos have been presented,
27



brochures have been distributed, and presentations made in an attempt to inform the
population about the project and resolve any concerns.
As prescribed in Brazilian regulations, a Summary of the Environmental hnpact
Assessment (RIMA) must be available for public review for at least forty-five days. For
the Brazilian sector of the Bolivia-Brazil Gas Pipeline Project, this announcement of the
availability of the RIMA was published in the official State journal and in the major
regional and local newspapers in each affected State. Public audiences were held in each
State to provide local citizens an opportunity to evaluate the project's environmental
aspects and resolve public concerns. Project sponsors will continue involvement with the
local populations to further demonstrate a commitment to the health and welfare of the
people and the environment.
8.0   Environmental Management
A comprehensive Environmental Management Plan (EMP) is being developed, to serve as
a master planning and management tool for the project. The plan establishes guidelines
and procedures to manage the environmental aspects of the project. Included in the plan
are environmental construction procedures, spill prevention and control, waste and
hazardous materials management, air quality protection and noise control vegetation and
wildlife protection, and cultural resources management. Community relations, training,
inspection, monitoring, impact mitigation and compensation are also addressed.
The main objectives of the Environmental Management Plan are 1) to avoid, minimize,
control, or mitigate potential impacts from the project construction and operation on the
physical, biological, and socioeconomic environments, and 2) to ensure continued project
compliance with applicable environmental regulations.
To implement the Plan, an environmental organization and budget will be establshed
within the Project Management organization. Under the direction of an Environmental
E          Manager, a technical and field staff will be responsible for inspecting, monitoring and
controlling Contractor compliance with the procedures described in the Environmental
Management Plan. The Environmental Manager will have authority to halt activity in the
event of non-compliance with the EMP which might have serious environmental impacts.
The construction Contractor will be responsible for direct implementation, quality
assurance and quality control of the Plan. The project sponsors' environmental committee
will provide administrative support and oversight to the Environmental Manager.
Environmental training will be provided to all employees prior to commencement of work.
New workers brought to the project after the initiation of project activities will receive
training as soon as practicable following their arrival.
During construction, monitoring will be part of the inspection program. Environmental
monitoring may include, but not be limited to erosion controL water qualty, indigenous
and protected wildlife species, cultural resources, water resources, vegetation, and
protected areas.
28



As part of the management of the project, the sponsors will maintain a community
relations program aimed at promoting good relations with the communities in the area of
influence of the project, as well as providing environmental education and increasing
awareness about the project and the environment.
The Environmental Construction Plan outlines basic environmental construction
procedures that will be used to construct the pipeline and describes impact minimization
techniques that will be employed during and after construction. These procedures are
designed to protect the environment and to minimize potential effects of the pipeline
construction.  The Plan includes standard construction procedures and specialized
techniques designed for use only as required under specific circumstances.
Environmental impacts of the project will be further mitigated through following
procedures established in plans for "Spill Prevention and Control" and "Waste and
0          Hazardous Materials Management". Specific procedures will be established to minimize
direct and indirect impacts to vegetation and wildlife. A plan has also been developed to
provide guidance in the event of an accidental discovery of cultural resources or human
remains.
9.0   Conclusions
The majority of the pipeline route in Bolivia is in an area of low environmental sensitivity,
and the probability of significant adverse environmental impacts is expected to be minimal.
In Brazil 85% of the area of influence has already been impacted by human activity.
Additional impacts of the project are expected to be minimal, and most negative impacts
w'll be mitigated.
*  The most significant impacts identified will occur during the construction stage, most
of them being temporary and reversible.
*  Throughout most of the study area, the physical and biological environment appears to
be resilient to the type and magnitude of impacts anticipated from this project. The
primary direct impact in most of the route will result from clearing the right-of-way. In
Bolivia this impact will be reduced as a 5-meter wide swath has already been cleared
for surveying.
*  The most environmentally sensitive areas within the project study area are 1) the Gran
Chaco Park in Bolivia, due to its protected status, large biological resources,
indigenous populations, and biogeographic status, 2) the Pantanal Complex in Brazil,
due to its species diversity, 3) the Atlantic Forest in Brazil, due to its primary
vegetation and protected status, and 4) the Aparados da Serra in Brazil, due to its high
erosion potentiaL Measures will be taken to mitigate or compensate for any adverse
impacts to these areas.
29



* The population in the study area of the Bolivian sector is small, and throughout much
of the area land use is sparse, partly due to limited land use capability associated with
poor soil quality, low precipitation, and a lack of readily available surface and
groundwater. Native, undisturbed vegetation is prevalent throughout much of the
study area. Socioeconomic impacts of the project are not expected to be significant.
* The proposed pipeline alignment was selected to avoid areas of slope instability,
populated areas, and environmentally sensitive or protected areas. The route was
determined to best balance the overall impacts to the human, biological, and physical
environment while achieving the project's overall purpose, which is to transport
natural gas from production fields in Bolivia to markets in Brazil through an
environmentally acceptable and economically viable transportation system. As a result
of the Environmental Assessments, the route was further refined to avoid areas of
potential environmental sensitivity.
0  The principal positive impacts anticipated in the project area of influence are 1) an
improvement in air quality in Brazil's industrial and metropoltan areas, 2) an increase
in revenues for Bolivia from the sale of gas to Brazil, 3) redistribution of tax revenues
back into the area of influence of the project, 4) a temporary increase in employment
within the study area, 5) an increase in the demand for goods and services in the study
area, and 6) an increase in funds allocated for management of protected park areas.
* The principal negative impacts anticipated in the project area of influence are 1) the
removal of vegetation and wildlife habitat along the right-of-way, 2) an increase in the
potential for erosion, sedimentation, and hydrology disruption due to project
construction activities, 3) the potential for increased hunting pressure on species of
special concern, 4) the potential for promoting colonization of undisturbed areas, and
5) the potential disruption of the hydrologic patterns in the rivers and Baiiados.
* During the detail design phase of the project, procedures and design parameters will be
refined to respond fully to concerns identified in the Environmental Impact
Assessments. Project sponsors will continue participation in public consultation to
evaluate public concerns as they relate to the final design and execution of the project.
. An Environmental Management Plan and Environmental Programs will be
implemented to provide appropriate mitigation of unavoidable impacts and lower the
significance of negative impacts to acceptable levels.
* The project is environmentally achievable, as its negative impacts may be satisfactorily
mitigated, in order to reach a balance between economic growth and ecological
preservation, in accordance with the goals of sustainable development. However, there
will be a need for continued monitoring throughout the project life to ensure these
objectives are maintained.
30



10.0  Bibliography
Dames & Moore. 1996. Environmental Impact Study for Bolivia-Brazil Gas Pipelne
Project (Bolivian Sector).
Centro de Investigaciones y Estudio de la Capacidad de Uso Mayor de la Tierra
(CUMAT). 1990. Environmental Impact Assessment for the Construction of the
Santa Cruz-Puerto Suarez Gas Pipeline and Puerto Suarez Steam-Electric Power
Plant.
PETROBRAS. 1996.  Environmental Impact Study - Bolivia-Brazil Gas Pipeline
(Brazilian Sector).
ENGEVIX. 1995. Environmental Assessment Summary - Bolivia-Brazil Gas Pipeline
*                (Brazilian Section).
ENGEVIX. 1995. Environmental Impact Studies - Bolivia-Brazil Gas Pipeline. Curitiba-
Florian6polis-Porto Alegre. Volumes 1-4
ENGEVIX.  1995.  Bolivia-Brazil Gas Pipeline Curitiba-Florian6polis-Porto Alegre.
Environmental Impact Studies Photographic Report.
ENGEVIX.  1994.  Environmental Impact Studies - Gas Pipeline Bolivia-Brazil
Corumba-Curitiba Section. Volumes 1-4.
ENGEVIX. 1995. Environmental Technical Specifications - Construction, Assembling
and Commissioning Phases of the Pipeline.
ENGEVIX. 1994. Environmental Impact Report. Corumba-Curitiba Section.
X          ENGEVIX. 1993. Bolivia-Brazil Gas Pipelne Corumba-Curitiba. Environmental Impact
Studies Photographic Report.
ENGEVIX. 1993. Assessment Diagnosis of Bolivia-Brazil Gas Pipeline Impact on the
Archeological Patrimony in the State of Mato Grosso do SuL Corumba - Terenos
Section. Annex Report 1.
ENGEVIX. 1994. Evaluation Report and Diagnosis of the Archeological Heritage in
Areas Affected by the Bolivia-Brazil Gas Pipelne Construction. Terenos - Tres
Lagoas Section. Annex Report 2.
ENGEVIX. Date?. Additional Information to Governmental and Non-Governmental
Organizations Assessment - SEMA - MS. EIA/RIMA. Annex Report 3.
ENGEVIX.  1994.  Bolivia-Brazil Gas Pipeline - Mato Grosso do Sul Section.
Environmental Programmes Details. Annex Report 4.
31



ENGEVIX. 1994. EIS/EIR Complements Related to Technical Report. CPLA/DA1A
NR. - 098/94 - SMA/SP. Annex Report 5.
ENGEVIX.  1994.  Assessment of Gas Pipeline Basic Route Outline in Curitiba
Metropolitan Area. Annex Report 6.
ENGEV1X. 1994. ELA/RIMA Complements Related to Technical Report CPLA/DAIA
Number 208/94 - SMA - SP. Annex Report 7.
ENGEVIX. 1994. EIA/RIMA Complements Related to Technical Report CPLA/DAIA
Number 208/94 - SMA - SP. Volumes 1 & 2. Annex Report 8
ENGEVIX. 1994. EIA/RIMA Complementary Material Requested by SMA-SP.
Volume 1/2. Annex Report 9.
ENGEVIX. 1994. EIA/RIMA Complementary Material Requested by SMA-SP.
Volume 2/2. Annex Report 10.
ENGEVIX. 1995. Revision of the Final Complementary Material for the ELA/RIMA in
Response to the Technical Judgment Document CPLA/DAIA No. 037/95. Annex
Report 11.
Almeida, J. F. R and Arze, C. A.. 1995. Bolivia-Brazil Gas Pipeline Project - An
Environmental Economic Evaluation.
0
32



Table 1. Summary of Impacts and Mitigation Measures
ENVIRONMENTAL  ENVIRONMENTAL IMPACT                      CAUSE OF IMPACT                         COMMENTS                       MiVTIGATION
PARAMETER    _______________                   _                                                                                MEASURES
Climate            No impacts on climate are        N/A                               N/A                                   N/A
expected.
Air Quality/Noise    Long-term Improvement in air  -Increased availability of natural gas  Benefits will be primarily in industrial    N/A
quality in Brazil              .Replacement of more polluting     and metropolitan areas.
energy sources with cleaner burning
natural gas
Increase in dust and particulates    *Construction of access roads, right-  Effects are expected to be largely  -If available, water
of-way, and camps                avoidable. Actual emissions will likely    should be used to wet
*Increased traffic                be minimal and localized,              construction areas.
*Trench excavation
-Installation of meter and
compressor stations
Increase in air emissions       -Engines and other construction   Actual emissions will be minimal,     -Proper engine and
equipment                        localized and temporary                equipment maintenance
and minimization of
operation time.
Decrease in ambient air quality  -Turbines at compressor stations  Screen modeling suggests that Bolivian    .Final design will
national ambient air quality standards  incorporate measures to
could be exceeded,                     ensure compliance with
applicable regulations.
Geology            Alteration of surface rock structure  .Blasting due to rock outcroppings    There are few outcrops along the  -If blasting is required,
pipeline route which will require      best management
blasting.                              techniques for blasting
__ ___________________________                                    will be employed.
Interruption in pipeline operation   -Earthquakes and other seismic  Historical seismic records suggest  .System design will
and safety risk                  activity                         minimal probability of earthquakes.    provide for pipeline
safety protection
Interference with mining activities  -Purchase/expropriation of land  The project does not impact mining areas  *Assess mineral potential
*Construction of access roads     in Bolivia. To the extent possible,    of affected areas
.Crossing water bodies            mining areas in Brazil have been      -Adjust final pipeline
avoided,                               routing to avoid
mineral deposits
i



*                                                    0
Table 1.  Summary of Impacts and Mitigation Measures
ENYRINNMENTAL  EVONME  TAL            C           MCM;
Geomorphology       Changes in local topography      *Cut and fill, grading, and road   Changes in land forms will be         -Restore original grade.
improvement activities           negligible.
Increased erosion potential      -Vegetation clearance             Much of the area of influence is flat,  .Application of erosion
-Trench excavation and spoil piling   with low precipitation and natural  prevention and control
-Access road construction and road    vegetation cover, which reduces the  techniques and
improvements                     potential for erosion.                 revegetation where
-Other construction activities                                           indicated.
Potential scouring and bank erosion  -River and stream crossing activities  Many water courses along the route,  Application of wetland
particularly in Bolivia, tend to have  and stream crossing
shallow cross-section, with gently    techniques
.___________________________            sloping  banks and low  scouring
Destabilization of hill slopes   -Construction of access roads and  Width of construction corridors and   Utilization of special
clearance of right-of-way        roadways will be minimized in areas of   construction methods
-Excavation of the trench         rugged topography.                     such as the two tone (bi-
level) approach.
Soils               Soil compaction                  -Heavy traffic on the right-of-way  Much of the right-of-way traverses areas   Soil restoration
of Quaternary deposits which are prone   techniques during final
to compaction.                        grading.
Mixing of soil layers, nutrient  -Access road construction          Effects are more likely to be significant   Application of
leaching, loss of organic layer.  -ROW clearance                   in wetland areas where an organic layer   appropriate construction
-Trench excavation                exists. Mvinimal impact where soils are   techniques in final
.Spoil piling                     sandy, with poor horizon development    grading.
_________________________  and  little or no organic layer.
Sudden erosion                   .Discharge of hydrotest water.    Line will be tested in short segments.  Application of measures
Hydrotest water will be discharged in  to minimize the potential
upland areas.                         for erosion, such as
energy dissipation
devices.
. .



0                                                      0
Table 1. Summary of Impacts and Mitigation Measures
RNJONMffTAL  ENVIRONWNMTAL IACT                             CAUSE OF IMPACT                          COMMENTS                        MITIGATION
PARAMETER           ._ ._._:_.__________  ________:_:_::_._i_i                                                                       MEASURES
Groundwater         Potential mixing of aquifers      -Drilling of water wells for use    Groundwater resources in most areas     Wells will be properly
during construction                have relatively high annual recharge.   cased to avoid aquifer
.________________________________                                                                 interaction.
Potential lowering of the water   *Withdrawal of water for camps     Construction timeframe is limited.      Groundwater resources
table                                                                Many camps will be mobile, moving       will be evaluated before
frequently along the right-of-way.     well establishment.
Potential groundwater             *Accidental spills of fuel and     Fuels, lubricants and chemicals will be    Spill prevention and
contamination                      chemicals                         present in limited quantities.          control measures will be
.______________ _                                                                                                   applied.
Surface Water       Potential increase in sediment    *Construction activities in water   Many rivers to be crossed are shallow  Application of erosion
loads                              courses and wetland areas.        and carry significant sediment loads.   and sedimentation
The additional load is likely to be    control measures for
insignificant.                         river and stream
crossings.
Temporary disruption to local     *Wetland and water body crossing   Many water crossings will be on         -Application of special
drainage patterns                 activities                         shallow, slow-flowing waters, thus       wetland and water body
reducing the magnitude of potential     construction techniques.
effects on local drainage patterns.
Similarly, low rainfall reduces the risk of
drainage impacts.
Permanent modification of local   *Placement of fill and impervious  To the extent possible compressor       -Proper design of
drainage patterns                  surface for project facilities such as   stations have been sited to minimize this   stormwater management
compressor stations.              possibility. In many areas there is low  systems and cross
rainfall, generally flat terrain, and   drains where necessary.
limited placement of fill and impervious
surfaces will be required.
Potential reduction in surface    *Withdrawal of water for hydrostatic  The main sources of hydrotest water will  *Impact can be
water availability                testing                            be the major rivers. Volumes withdrawn   minimized with proper
will be limited to protect aquatic life,  calculation of surface
and preserve water for other downstream    flow and withdrawal
uses.                                   rate and volume.
Potential contamination of surface   *Accidental spills              Project activities will require the     *This impact can be largely
waters                                                               utilization of hazardous materials such as   avoided by applying proper
gasoline, oil, and paints, but in small  tediniques to manage and
quantities and in localized areas.      dispose hazardous mnaterials.
iii



0                                                       0
Table 1. Summary of Impacts and Mitigation Measures
Surface Water                                          *Untreated discharges of domestic   Domestic wastewater will be generated    -Proper treatment and
(cont)                                                  wastewater                         mainly at the workers camps.              discharge of domestic
wastewater.
-lmproper solid waste disposal      Solid and domestic wastes will be       -Waste management will
produced in all construction and camp    include minimization,
areas.                                   separation, recycling,
and proper disposal
l _________________                                                                                                                  procedures.
Vegetation          Alteration or elimination of        -Clearing right-of-way             A 5-meter wide swath was cut for route   .Deforestation will be
vegetation and forest canopy      .Opening access roads                survey. Route has been selected to avoid   limited and regrowth
-Construction of campsites         forested areas as much as possible.       will be allowed except
*Construction of meter and          Cutting of vegetation is prohibited by   in the permanent ROW.
compressor stations               law in sensitive areas.                  *Native species will be
replanted in some areas.
Removal of species of special     .Clearing right-of-way               Endemic species are present in a ntunber  .Clearing will be
concern                           .Opening access roads                of protected areas,                      restricted to the right-
*Construction of camps & facilities                                          of-way and designated
construction sites.
Fauna               Loss of individuals, including      -Construction activities            Slow moving and/or small terrestrial    -Training will be
species of special concern                                             animals, such as tortoises are most likely   provided to work force
to be affected.                          regarding protection of
fauna.
Increase in predatory hunting and    -Mobilization of workforce        There is an abundance of wildlife and   -Hunting and fishing
fishing                           .Opening of access roads and right-   species of special concern.             will be strictly
of-way                                                                      forbidden.
.Crossing water bodies                                                      *Access to wildlife areas
will be controlled.
'Warning signs will be
displayed and work
force will be educated
about the hunting and
_.__________________________     _ .fishing   policy.
Potential entrapment of fish      .Hydrostatic testing of pipeline prior  This impact is largely avoidable if  *Intake will be screened
to commissioning                   proper procedures are followed.          to prevent fish from
_ _ _ _ _ _ _ _ _ _   _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _   _ _ _ _ _ _ _ _ _ _ _ _ _ _ _e n terete i g ii e
IV



*                                                   0
Table 1. Summary of Impacts and Mitigation Measures
RNVJRONMRTAL  I.     NVTIRONMENTAL iMACT                 CAUS:E OF IWACT                        COMM1ENTS                     MITIGATION.
PARAMTER                                                                                                                    M.MEASURES:
Fauna              Alteration or loss of habitat   .Clearing the right-of-way        Insects and small animals will be most  -Clearing for the
(cont.)                                            -Opening of access roads           affected. Most animals will return to  pipeline will be
'Installation of camps            the area upon completion of          contained within the
-Construction of meter and        construction. A cut line has already  right-of-way.
compressor stations              been established throughout most of the  -Size of camp sites and
route.                              compressor stations will
be minimized.
.Construction. will be
expedited.
-Access by personnel to
areas outside the work
area will be controlled.
Protected Areas    Encroachment into Parks and other  .Clearing the right-of-way      Camp sites and compressor stations will  -Work force will be
protected areas                 -Opening access roads             not be located in protected areas.    educated on
Route has been selected to avoid     preservation of
protected areas to the extent possible.  protected areas.
.Impacts will be
compensated.
Population         Increase in the population of the  -Mobilization of the work force  This effect should be temporary, as it is   *Accommodations will
study area.                                                      unlikely that pipeline workers will settle   be provided.
permanently in the study area.       -Priority will be given to
local hiring.
. Camps will be located
away from small
villages if feasible.
Potential for cultural and social  -Mobilization of work force    Cultural and social differences may  -Measures will be
tension due to the interaction                                    arise.                                applied to promote
between residents and incoming                                                                          positive interaction and
workers                                                                                                 a productive cultural
exchange between
residents and incoming
workers.
v



*,v
Table 1. Summary of hmpacts and Mitigation Measures
RONMFN~AL   EtNVIONMNALIPATCAUSE OF IMATC0OMMENTS                                                                  MrITGATIN
PARAMETRM        __                    _         _      _     _     _     _       _____________D__________1i , 4 <sui                      :
Population        Exposure to risk of accidents   *Transportation of natural gas   Gas pipelines have an excellent safety   .Emergency Action
(Cont.)                                                                            record.                              Plans will be prepared
for construction and
operation and operation
of the pipeline.
.Communities will be
informed about the
pipeline.
* Activities will be
monitored and
controlled to avoid
accidents.
Health problems and an increase in  *Mobilization of work force  Workers will visit nearby communities   *Priority for hiring local
the incidence of contagious     Interaction between work force and  for supplies, relaxation and     labor
diseases, including sexually    local residents                 entertainment                        .Medical examination
transmitted diseases.                                                                                for work force on
admission and
periodically thereafter
.Medical and sanitation
education
*Proper treatment of
water, solid and liquid
waste from worksites
__ ___________________                and  accommodat ions.
Pressures on local health facilities   *Installation of construction camps  linprovements will be made to local  .Himing of local labor
*Consauction activities         medical facilities to accommodate the  -Admission and periodic
'Operations of compressor and   needs the project.                   examination of labor
meter stations                                                      *Medical and hygiene
education for work
force.
Accident prevention
campaign
vi



Table 1. Summary of Impacts and Mitigation Measures
ENVIROI!NMFNqAL  ENVIRONMETALA MPACT                     CAUSE OFIMIACLT                        COMMENTS                      MTIGATION
Economy            Potential for a temporary increase   eMobilization of work force  Workers are expected to depend upon   -Hiring of local labor
in the demand for goods and      hIstallation of camps and work  local facilities for non-essential supplies  -Location of work sites
services,                        sites                            and recreation, which will have a     close to large urban
positive impact on local economies.   centers as much as
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___  possible.
Increase in employment          *Mobilization of construction work   Significant opportunities will exist for    .Utilize fair hiring and
opportunities for local labor force.    force                     nationals, particularly in non-skilled  compensation practices
.Use of local labor for maintenance   labor.
operations
Long-term positive impacts to   -Promotion of industrial          Industrial development will provide  N/A
economies in Bolivia and Brazil  development in Brazil due to    indirect benefits to economies in other
will be realized                 increased energy source          countries.
hnprovements to local roadways  -Opening of access roads to the   Project will temporaily place heavy  .lmprove existing
right-of-way                    demands on the transportation systems  roadways
'installation of camps           in Bolivia and Brazil.                 Constmt new
roadways if required.
'Installation of compressor stations                                   'Install road signs.
and meter stations                                                    -Inform communities of
construction activities.
Loss of farm and forest production   *Opening of pipeline right-of-way  Much of the right-of-way has ahleady  -Landowners will be
.Construction of access roads    been cleared for surveying. Camps,     compensated for loss of
-Clearing for camps, pipe storage  storage yards, compressor and meter  production
yards and extra work space      stations have been sited to avoid    -Areas will be restored
*histallation of meter and       agricultural and forestry areas as much  to pre-project conditions
compressor stations             as possible.                          to the extent possible
Increase in municipal revenues  -Taxes on tansportation and       Through project taxes, improvements  N/A
distribution of natural gas     will be made to local municipalities.
oContribution to Bolivia's national
endowment fund
t vi



Table 1. Summary of Impacts and Mitigation Measures
dEiN VTh~rL;   JENVIRONMENT RMPACTf                    C1AUSE OF IMP. AC T    d               OMTENTS                      MiIGATION
Land Use          Alteration in land use           *Purchase/expropriation of land  Change in land use will be limited to the  -Segregation of topsoil
-Opening of right-of-way        pipeline corridor, compressor and meter   in agricultural areas
.Construction of access roads   station locations, and new access roads.  -Coordination of work
.Cleanng for camps and extra work                                     schedule with harvest
space                                                                season where feasible
*Installation of meter and                                           *Revegetation with
compressor stations                                                  native species
Indigenous         Encroachment into the historical    *Construction of access roads  Some indigenous territories are protected  *Hunting and fishing by
Populations        range of indigenous groups     -Opening the right-of-way        areas. Most indigenous areas have     project personnel will
.Construction of compressor and  already been impacted. Project will not    be forbidden.
meter stations                 impact indigenous population in Brazil.  *Any access roads not
-Operation of camp sites                                              required for
maintenance of the
pipeline will not be
retained.
Cultural,          Potential disturbance to sites of    -Opening of right-of-way   No historical or archeological sites have   'Development and
Archaeological, and  special concernL              -Excavation of the pipeline trench    been identified in the area of direct  implementation of a
Historical                                        'Constuction of access roads     influence of the pipeline. However, It is   contingency plan for
Resources                                         *Installation of camps           highly probable that such sites exist in  accidental discovery.
*Installation of compressor and  the Brazilian sector.               -Enlist presence of an
meter stations                                                       archeologist during
cleaing of any potential
areas of archeological
significance.
Salvage artifacts in
accordance with the
Archeological Salvage
Plan.
vii



BOLIVIA BRAZIL GAS PIPELINE - Logistics Map (Ports/ Waterways/Highways)
PERU                        B LAppLZ   '                BOLiVIAG
ANJOSBRASIL ,                                           - .  --'3
<_               RICKtRANDE     TO                         SUAREZARAGUAI_-_                          BOA-' I.'A'--.
A   t   ,,    '. SUCRI. /  R U M BA          CUMPB ,OSI,-
- }} TAM,S                                              E'Lts I / I                    SANA       -
SAN MIGUEL                                             G~~~~~~~~~~EGEND
Q PUICUE %    - - '   !        '}BOYUI                   .         E$A G OG BELOL:
- -LA4  -----TARIJA                                                                     P MATOAGROSSO AG,ACAA
TUP17:~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
RAAQAAVIASTRGARS
PARAGUAI                                                        BOAV17ARAPARAGUAIVER
Z                                                                                      BAUR     REPLBUNOAARE    -PAEDROD
S   9(ANTOFAGASTA  1-'  '' ''  /'  '    \                '          \   . *                          CAMPINAS ''   'NAERA
[  _  5         0      '               ''     X-----            *ASSUNUAo                    OUCURITA
I  01    j~        ~~~~~~~~~~~ ',1------------                                                 .
| COIAPO                               --- - - -- --- -                              CATARINIGODLESEO,/ ,CTAIAd L5,
(    |    .  A                               vX  ~~~~~~~~~~GRRAN°DE
2 % . .. I~~~~~~~ARGENINA                              ..                                                              .-.;~ OSLCANAPN7X..... LEGEND
(   '.    ,'  l   1               "/      \          ~~~~~~~~~~~~~PORTO ALER
J  \   ,    a            J        \                 ///--N                       ~~~~~~~~~~~~~GASBOL:
()   .   i:oRDoBA\   ?R   (              X          X                              =~~~~~~~~~ PLAN A
I-----                                                                                                          -    '      PLAN  C
\  \  \                     /                      /                                   |~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~BOA VISTA]| STORAGE AREAS
2    S       .   >sSS                    p  ~~~~URUGUAI //   
SANTIAGA                                   R O  S-SN NICS  PORTS
\   d         .      r    I~~~~~~~~~ROSARIO- rSAN NICOLA    MONTEVIDEv
l  8,  t  .:--            t  \   _rr---~~~~~~~~~~~~~~~~~~~~~ PARANA-PARAGUAY RIVER
/ t ' | ~~~~~~~~~BUENOSAIRES) l-PVDOS
(   /   '  ,  |                 \      4    -             .                             -  ~~~~~~~~~~~~~~~~~~~UNPAVED ROADS