S.L. 549.68 Art. 25Offences. CRITERIA POTENTIAL The surrounding according to Derogations authority pro 4 is not Step 1: Data Sufficient dimensional including the connected of the storage (a) (b) (c) for (d) (e) (f) (g) The (h) (i) (j) on 21 (k) (l) Step 2: earth including the be built using shall the reservoir horizon

(1) Any person who contravenes any of the provisions of these regulations or of a permit or licence condition or of an authorisation or approval issued thereunder, shall be guilty of an offence and shall, on conviction, be liable to a fine (multa) of not more than sixty-nine thousand euro (€69,000) or for one thousand and three hundred euro (€1,300) for each day during which the offence persists.

(2) Any person who, when information with respect to these regulations is requested or required by the competent authority, knowingly or recklessly -

(a) gives any false, inaccurate or misleading information; or

(b) supplies incomplete information; or

(c) fails, without reasonable cause, to supply information requested within the time given; or

(d) prevents or hinders any investigation; or

(e) produces or furnishes, or causes or knowingly allows to be produced or furnished, any document or information which he knows to be false in any material respect, shall be guilty of an offence. and shall, on conviction, be liable to a fine (multa) of not less than one thousand euro (€1,000) and of not more than sixty thousand euro (€60,000) for each day during which the offence subsists. FIRST SCHEDULE

Regulation 4(2) FOR THE CHARACTERISATION AND ASSESSMENT OF THE STORAGE COMPLEX AND SURROUNDING AREA REFERRED TO IN REGULATION 4(2)

characterisation and assessment of the potential storage complex and area referred to in regulation 4(2) shall be carried out in three steps best practices at the time of the assessment and to the following criteria. from one or more of these criteria may be permitted by the competent vided the operator has demonstrated that the capacity of the characterisation and assessment to enable the determinations pursuant to regulation affected. collection data shall be accumulated to construct a volumetric and three-static (3-D)-earth model for the storage site and storage complex, caprock, and the surrounding area, including the hydraulically areas. This data shall cover at least the following intrinsic characteristics complex: geology and geophysics; hydrogeology (in particular existence of ground water intended for consumption); reservoir engineering (including volumetric calculations of pore volume CO injection and ultimate storage capacity); 2 geochemistry (dissolution rates, mineralisation rates); geomechanics (permeability, fracture pressure); seismicity; presence and condition of natural and man-made pathways, including wells and boreholes which could provide leakage pathways. following characteristics of the complex vicinity shall be documented:

domains surrounding the storage complex that may be affected by the storage of CO in the storage site; 2 population distribution in the region overlying the storage site; proximity to valuable natural resources (including in particular Natura 2000 areas pursuant to Council Directive 79/409/EEC of 2 April 1979 the conservation of wild birds and Council Directive 92/43/EEC of May 1992 on the conservation of natural habitats and of wild fauna and flora, potable groundwater and hydrocarbons); activities around the storage complex and possible interactions with these activities (for example, exploration, production and storage of hydrocarbons, geothermal use of aquifers and use of underground water reserves); proximity to the potential CO source(s) (including estimates of the 2 total potential mass of CO economically available for storage) and 2 adequate transport networks.

Building the three-dimensional static geological earth model Using the data collected in Step 1, a three-dimensional static geological model, or a set of such models, of the candidate storage complex, caprock and the hydraulically connected areas and fluids shall computer reservoir simulators. The static geological earth model(s) characterise the complex in terms of:

(a) geological structure of the physical trap;

(b) geomechanical, geochemical and flow properties of overburden (caprock, seals, porous and permeable surrounding formations;

(c) fracture system characterisation and presence of any pathways;

(d) areal and vertical extent of the storage complex;

(e) pore space volume (including porosity distribution);

(f) baseline fluid distribution;

(g) any other relevant characteristics.

The uncertainty associated with each of the parameters used to build shall be assessed by developing a range of scenarios for each parameter calculating the appropriate confidence limits. Any uncertainty associated model itself shall also be assessed. Step 3: Characterisation of the storage dynamic behaviou characterisation, risk assessment The characterisations and assessment shall be based on dynamic comprising a variety of time-step simulations of CO injection into 2 using the three-dimensional static geological earth model(s) in the storage complex simulator constructed under Step 2. Step 3.1: Characterisation of the storage dynamic behaviour

At least the following factors shall be considered:

(a) possible injection rates and CO stream properties; 2

(b) the efficacy of coupled process modelling (that is, the single effects in the simulator(s) interact);

(c) reactive processes (that is, the way reactions of the injected situ minerals feedback in the model);

(d) the reservoir simulator used (multiple simulations may order to validate certain findings);

(e) short and long-term simulations (to establish CO fate 2 over decades and millennia, including the rate of dissolution water). The dynamic modelling shall provide insight into:

(f) pressure and temperature of the storage formation as injection rate and accumulative injection amount over time;

(g) areal and vertical extent of CO vs time; 2

(h) the nature of CO flow in the reservoir, including phase behaviour; 2

(i) CO trapping mechanisms and rates (including spill points 2 and vertical seals); secondary containment systems in the overall storage complex; storage capacity and pressure gradients in the storage site; the risk of fracturing the storage formation(s) and caprock; the risk of CO2 entry into the caprock; the risk of leakage from the storage site (for example, through abandoned or inadequately sealed wells); the rate of migration (in open-ended reservoirs); fracture sealing rates; changes in formation(s) fluid chemistry and subsequent reactions (for example, pH change, mineral formation) and inclusion of reactive modelling to assess affects; displacement of formation fluids; increased seismicity and elevation at surface level.

Sensitivity characterization simulations shall be undertaken to identify the sensitivity of the assumptions made about particular parameters. The simulations shall altering parameters in the static geological earth model(s), and changing and assumptions in the dynamic modelling exercise. Any significant shall be taken into account in the risk assessment. Risk assessment assessment shall comprise, inter alia, the following:

Hazard characterization characterisation shall be undertaken by characterising the potential for the storage complex, as established through dynamic modelling and characterisation described above. This shall include consideration of, inter potential leakage pathways; potential magnitude of leakage events for identified leakage pathways (flux rates); critical parameters affecting potential leakage (for example maximum reservoir pressure, maximum injection rate, temperature, sensitivity to various assumptions in the static geological Earth model(s)); secondary effects of storage of CO , including displaced formation 2 fluids and new substances created by the storing of CO ; 2 any other factors which could pose a hazard to human health or the environment (for example physical structures associated with the project). characterisation shall cover the full range of potential operating test the security of the storage complex. Exposure assessment - based on the characteristics of the environment and distribution and activities of the human population above the storage complex, potential behaviour and fate of leaking CO from potential pathways 2 under Step 3.3.1. Effects assessment - based on the sensitivity of particular species, or habitats linked to potential leakage events identified under Step 3.3.1. Where relevant it shall include effects of exposure to concentrations in the biosphere (including soils, marine sediments waters (asphyxiation; hypercapnia) and reduced pH in those environments consequence of leaking CO ). It shall also include an assessment of 2 other substances that may be present in leaking CO streams (either 2 present in the injection stream or new substances formed through storage

These effects shall be considered at a range of temporal and spatial linked to a range of different magnitudes of leakage events. 3.3.4. Risk characterisation - this shall comprise an assessment of integrity of the site in the short and long term, including an assessment leakage under the proposed conditions of use, and of the worst-case environment health impacts. The risk characterisation shall be conducted based exposure and effects assessment. It shall include an assessment of uncertainty identified during the steps of characterisation and assessment site and when feasible, a description of the possibilities to reduce uncertainty.

SECOND SCHEDULE Regulation 13(2) CRITERIA FOR ESTABLISHING AND UPDATING THE MONITORING REFERRED TO IN REGULATION 13(2) AND FOR POST-CLOSURE MONITORING