Q: Have any environmental studies been conducted?

A: Yes. The December decision by the government of Bali to issue Bali Energy, Ltd. an exploration permit was based on a detailed UKL/UPL report prepared by LIPI, which concluded that the project would have an "insignificant" impact on the local environment. Copies are available upon request to interested parties.

Q: Will the project affect the water table?

A: No. Wells used in the project are tapping water sources hundreds of meters below the water table, deep in the earth. There is no effect on the underground rivers and lakes from which Bali obtains its water.

Q: Will the project affect the lakes around Bedugul?

A: Bali Energy has contracted with the PDAM, the local water utility, to provide water for lubrication during the drilling process and for spraying the roads to keep down dust. This water will come from Lakes Bratan and Tamblingan and will be supplemented by Bali Energy’s own wells. The environmental assessment conducted by LIPI determined that the impact of this water usage on the lake levels will be "insignificant".

Q: Will the project result in deforestation in protected areas?

A: No. Under its contract with the government, Bali Energy, Ltd. is required to replant all trees which have been cut. The company is being extremely selective in its tree cutting. An area of approximately 2 hectares has been cleared of trees at each of the 14 test well sites, along with a minimal number of trees to provide road access. No "old growth" forests are involved. All of these trees are young, part of a previous government reforestation project. Wherever possible, existing vegetation is replanted.

Q: Is this damaging the Botanical Gardens?

A: No. Only one test drill site, approximately 0.2 hectares in size, has been placed in the gardens themselves. If this proves to be a viable source of geothermal energy, the actual wells will be dug at an angle from outside the Garden.

Q: Has an AMDAL study been conducted?

A: The project is still in the exploration stage. The AMDAL report is not required until the company applies for a permit to build a power plant. It is scheduled to be commissioned in the near future.

Q: Who owns the land on which the project is located?

A: Bali Energy, Ltd. has purchased property on which two of the drill sites are located. The balance is owned by the government of Indonesia.

Q: How is the company addressing the fact that the region is considered a sacred area?

A: Bali Energy recognises that in Bali nature in general, and the mountains and water in particular, have great religious and cultural significance. The company is working with the religious authorities in the area to ensure there is minimal impact on nature and that all appropriate rituals and observances are carried out.

The company has been careful to ensure that no project activities take place within restricted areas around temples or temple land.

Q: Is there a danger to local residents or their crops?

A: No. In some geothermal projects, small amounts of hydrogen sulfide are a by-product of the drilling process. This has not been encountered to date at the Bali Energy site. Sophisticated sensors are located at each drill pad to detect this gas. It is then immediately "flared off" or reinjected into other wells to make it harmless.

Q: Will the geothermal energy affect the local environment?

A: No. Simply put, geothermal energy is steam from deep in the earth. It is completely natural.

Q: Will the project raise the temperature in the area?

A: No. The geothermal energy is completely contained, and the amounts involved are far too small to affect the temperature of the area. In fact, geothermal energy actually helps safeguard the environment, since it is one of the only power plant technologies that does not contribute to the so-called "greenhouse effect" and raise the earth’s temperatures.

Q: Are local workers being employed by the project?

A: Yes, wherever possible Balinese are being employed, primarily in the construction and security areas. Those numbers are expected to increase as the project moves beyond the exploration stage (which largely requires experienced, highly-trained technicians).