PAPUA NEW GUINEA LNG PROJECT
AP084099XX
ENVIRONMENTAL REQUIREMENTS SUMMARY

This transaction is in support of the Papua New Guinea (PNG) Natural Gas Pipeline and Liquefaction Plant (PNG LNG) Project, which proposes to develop natural gas production and conditioning facilities, construct and operate onshore and offshore pipelines, gas liquefaction facilities and a marine terminal for the export of liquefied natural gas (LNG).  The PNG LNG Project is comprised of four major components:

• Upstream natural gas field development and gas conditioning facilities
• Upstream on-shore gas pipeline extending 292 kilometers through a diverse and often rugged landscape
• Off-shore gas pipeline extending for 407 kilometers across the Gulf of Papua, and
• Liquefied natural gas (LNG) plant with a design capacity of 6.6 million tonnes per year and marine export terminal.

Parts of the upstream project will be built adjacent to or within the footprint of existing oil production and transport facilities and infrastructure developed in Southern Highlands Province during the 1990's.

Project related environmental documents made available prior to approval included the PNG LNG Project Environmental Impact Statement. This and subsequent required environmental and social documents can be accessed at the PNG LNG Project website: http://www.pnglng.com/commitment/

Environmental requirements associated with Ex-Im Bank financing:

The Project assumed numerous environmental requirements in conjunction with Ex-Im Bank and other lenders financing. The material requirements are summarized below:

1. General provisions, including requirements that the Project comply in all material respects with the approved environmental and social management plan, national environmental laws and lender environmental and social standards (including the Ex-Im Bank Environmental Procedures and Guidelines); and promptly notify Ex-Im Bank and lenders of environmental matters such as any material non-compliances with social or environmental requirements or the occurrence of events relating to social or environmental matters that could cause significant adverse risk.

2. Provide periodic Environmental and Social Reports on the results of monitoring of the Project's compliance with the Environmental and Social, Management Plans. The Reports will be submitted quarterly until construction completion, on a semiannual basis for the first year following completion, and annually thereafter.

   • First Quarterly Environmental and Social Report on compliance during construction due 60 days after end of each calendar quarter, beginning May 31, 2010.
   • First Environmental and Social Report on compliance during operations is expected after start up in 2014, to be provided semiannually the first year of operations, and annually thereafter.

3. Submittal of the following Plans on the date due:

   • Construction Phase Environmental and Social Management Plan, including Appendices (Rev 0) by March 2010.
     1. Updated Construction Phase Environmental and Social Management Plan, including Appendices (Rev 1) by July 2010.
   • Environmental and Social Milestones Schedule (Action Plan) by March 2010
   • Lenders Environmental and Social Requirements (LESR) prior to financial close
   • Environmental Monitoring and Reporting Plan by July 2010.
   • Social Monitoring Plan by July 2010.
   • Operations Environmental and Social Management Plan, including Appendices at least six months prior to introduction of process hydrocarbons.
   • Operation Oil Spill Response Plan at least six months prior to introduction of process hydrocarbons.
   • Noise and Vibrations Plan by July 2010.
   • Ambient Noise and Vibration Plan by July 2010.
   • Traffic Management Plan by July 2010.
   • Biodiversity Strategy (Rev. D) by April 2010.
     1. Biodiversity Monitoring Program final revision by March 2013
     2. Biodiversity Offset Delivery final revision by September 2013
   • Project Environmental and Social Standards Document (Rev 0) by July 2010.
   • Community Support Strategy (CSS)
     1. CSS Summary by January 2010.
     2. CSS supporting documents and CSS Action Plan by mid-June 2010.
   • National Content Plan by March 2010.
   • Resettlement Policy Framework by March 2010.
   • Komo Resettlement Action Plan December 2009.
   • Resettlement Action Plan Completion Audit two years after Phase 1 resettlement.
   • Revised Cultural Heritage Management Plan by July 2010.

Requests for a copy of any of the reports listed above that relate directly to the Papua New Guinea LNG Project may be made once the desired report becomes available by contacting the following:

Export-Import Bank of the United States
Engineering and Environment Division
811 Vermont Ave. N.W.
Washington D.C. 20571
1-202 565-3570

The availability of such reports is subject to U.S. Federal law, which may require Ex-Im Bank to protect them from disclosure.

In addition to the above required reports, the borrower has also elected to make publically available the Environmental and Social Compliance Reports prepared by the Independent Environmental and Social Consultants by posting on the Project website at http://www.pnglng.com/quarterly_reports/

Updated: October 13, 2011