INPEX: Savannah Fire Management

INPEX OPERATIONS AUSTRALIA PTY LTD.

EOI NO. 800605 - PROVISION OF SAVANNAH FIRE MANAGEMENT SERVICES

EXPRESSION OF INTEREST MEMORANDUM 1

Savannah

The Ichthys LNG joint venture has committed to supporting the implementation of savannah fire management project(s) in the Northern Territory as an opportunity to offset in part the GHG emissions from the Ichthys Project. Projects such as savannah fire management also provide an opportunity for the Joint Venture to contribute to the growth of the land-based carbon offset industry in the Northern Territory and the potential for flow-on social benefits to the Aboriginal and Torres Strait Islander (ATSI) communities who may participate in these projects having historically managed such projects employing traditional methods.

The land-based carbon offset industry is in the early stages of development and the regulations governing the creation of carbon offsets (through the Carbon Farming Initiative (CFI)) are still emerging. As a result, there are numerous parties who could potentially participate in fire management projects in various capacities. In order to ensure we give full, fair and reasonable opportunity to all potential parties who may be interested in tendering their services, INPEX Operations Australia (on behalf of Ichthys LNG) has initiated this Expression of Interest (EOI) process.

Through this process, we expect to receive a number of proposals for implementation of the savannah fire management project. Should we receive several potentially suitable proposals, we will engage with proponents to clarify their submission and understand the extent to which the proposals promise to deliver against our dual objectives of generating offset credits for the Ichthys Project and providing local community development opportunities.

In order to provide guidance for the format and content of submissions, we have defined a set of minimum qualification criteria (below) against which all respondents must demonstrate their proposal complies.

Minimum Qualification Criteria

There must be an ATSI group or entity, as defined by the Aboriginal Councils and Associations Act 1976, that is either partly or solely responsible for the submission.
The submission must identify land within the NT that is located in a region with rainfall over 600 mm1 per annum (See map page 7 of Ref. 1) for implementation of savannah fire management as described in the Carbon Farming Initiative (Ref. 1).
The submission must identify an ATSI community or entity who will be engaged as rangers or some other capacity for supporting savannah fire management.
The activity must be conducted on land which is greater than 30,000 ha in size.
The submission must demonstrate how the organisation will secure agreement to conduct savannah fire management on the land specified.

Beyond demonstration of compliance with these criteria, submissions will be evaluated on the extent to which they provide a comprehensive and detailed proposal, including:

A mechanism to create carbon credits through the CFI legislation.
A single commercial entity with which INPEX Operations Australia can contract for delivery of the project. This entity may be a collaborative effort between multiple entities or groups but is acting as the single point of contact and is accountable for delivery of the project. This entity will act as the proponent for the project as defined by the Carbon Farming Initiative.
Assurance that the appropriate commercial structures and processes will be in place for managing the program (this may include details of individuals and organisations who are involved and details of the roles they will play).
Assurance on the ability to safely design, manage and operate a savannah fire management program (this may include details of participants who fulfil these requirements and any training required of the new workforce).
Assurance that the organisation is able to secure all approvals and agreements to conduct savannah fire management.

INPEX Operations Australia will accept submissions that fulfil part of the identified requirements; however preference will be given to proposals which provide this comprehensive solution. Organisations that can fulfil only part of the requirements are encouraged to collaborate with others to generate a more comprehensive submission.

Return of memorandum submissions

All completed submissions will be treated in strict confidence and shall be clearly labelled and delivered to:

Attn: Mr. Chris Taylor EOI No. 800605

Provision of savannah fire management services - Expression of Interest Memorandum 1.

INPEX Operations Australia Pty. Ltd.

Level 22. 100 St Georges Terrace. PERTH WA 6000.

Submissions must be received no later than 5:00pm AWST on Monday, 4th June, 2012.

One (1) hard copy and one (1) electronic copy stored on a CD (in native format) must be submitted.

Community Consultation & Queries prior to submission

INPEX plans to undertake community consultation as part of the Expression of Interest.

All queries during the memorandum period or to register your interest in participating in the community consultation process can be addressed to:

Daniel Loden, GHG Technical Advisor Daniel.loden@inpex.com.au +61 8 6213 6102

Queries specific to Aboriginal and Torres Strait Islander Engagement can be addressed to:

Irene Stainton, Snr Aboriginal Affairs Advisor Irene.stainton@inpex.com.au +61 8 6213 6131

Please note that this letter is not an offer of work, nor is it acceptance of any offer you may or have made, nor does it bring into existence any contract, or guarantee of work between our companies.

Yours faithfully

Reinoud BLOK

General Manager, Greenhouse Gas

This information is publically available through the ICN Gateway and INPEX Public website.

References

1. Savannah Burning, Carbon Farming Initiative Offset Methodology - http://www.climatechange.gov.au/government/submissions/closed-consultations/carbon-farming-initiative/savanna-burning.aspx