Assessing the Impact
Exploring Impact Assessment Extractive Industries‐ Oil and Gas . The Case Study and Analysis Final Comments This product is available in the category Text Slides/ Tables
Exploring Impact Assessment Introducing The Case The Petroleum Industry The Incidents ▪ Impact from Operations ▪ Incident Impact Petrotrin
Analysis and Evaluation Final Comments
The Parameters Environmental Impact Areas of Impact Relevant Questions
Extractive Industries Stakeholders Impact Assessment
Industries involved in : (1) prospecting and exploring for wasting (non‐ regenerative) natural resources, (2) acquiring them, (3) further exploring them, (4) developing them, and (5) producing (extracting) them from the earth.
Stakeholders are defined broadly as those groups or individuals: (a) that can reasonably be expected to be significantly affected by the organization’s activities, products, and/or services; or (b) whose actions can reasonably be expected to affect the ability of the organization to successfully implement its strategies and achieve its objectives. Ref: Sustainability Reporting Guidelines, Global Reporting Initiative (2000)
Environmental impact assessment (EIA) is a process of identifying, predicting, evaluating, and mitigating the biophysical, social, and other relevant effects of proposed projects and physical activities prior to major decisions and commitments being made. Sadler (1996)
Assessment, Environment and Development Resource and Ecosystem Services (+) Natural Hazards and Extreme Geophysical Events (‐) Natural Processes
Human Activities Environmental Impact (‐) Nature Protection and Conservation (+)
Sadler( 1996)
Environmental Impact ‐ The Physical Environment Health Impact ‐ Social Impact ‐ Integrated assessment ‐
Often required by legislation. Impact on the environment (soil, air, water, wastes, fauna, flora and human activities). Consultation phase often legislated
Source : A Guide to Social Impact Assessment in the Oil and Gas Industry, IPIECA
Recommended by the Word Health Organization, the EU, the World Bank, UNEP, the ILO and the FAO. Impact on health status, ‐ definition of health encompasses the state of complete physical, mental and social well‐being. Health is determined by a multiplicity of factors including socio‐economic and environmental factors. Community participation and consultation critical, forming an integral part of the process. In some instances HIA is carried out as part of SIA.
Source : A Guide to Social Impact Assessment in the Oil and Gas Industry, IPIECA
Green Field Projects Impact of operations on Community Health New diseases in Indigenous communities
• Brown Field Projects
▪ Impact of operations on community health
Usually carried out voluntarily by a company, but can be required by legislation or by funding institutions. Impact on communities (including impacts on socio-economics, governance and institutions, culture, religion, human rights, community, beliefs, housing, values and organization). Consultation required all through the process, and as a tool to collect baseline information
Source : A Guide to Social Impact Assessment in the Oil and Gas Industry, IPIECA
Demographics 6. Social Equity
5. Psychological & Community
4. Resources
Social Impact Assessment
1. Socio‐ economic
2. Health
3. Social Infrastructure
Source : Adapted from : A Guide to Social Impact Assessment in the Oil and Gas Industry, IPIECA
Government Revenue
Project Time profile
Socio – Economic
Supply chain Impacts
Employment Practices Source : Adapted from : A Guide to Social Impact Assessment in the Oil and Gas Industry, IPIECA
Government Revenue‐ Taxes, royalties etc. Supply Chain Impacts Opportunities for local content and participation Inflationary impact on local goods and services
markets Impact on other (non‐extractive) sectors (Dutch Disease)
Employment & Labour practices – Structural changes in existing industries as workers
shift from traditional industries to extractive activities; Movement of other necessary workers (e.g. teachers and police) into the extractive industry as translators, analysts or security personnel; Return of construction workers to lower end jobs
Project Time Profile –
Impact of project phases ‐ construction boom;
operation phase; decommissioning; potential extractive industry dependency.
Often required by legislation. Impact on both, the environment and communities (but often restricted to socioeconomic impacts). Presently, health impacts are rarely detailed and often restricted to negative impacts. Consultation phase often legislated
Meaningful Impact Analysis requires public involvement
Public participation may be defined as the involvement of individuals and groups that are positively or negatively affected by a proposed intervention (e.g., a project, a program, a plan, a policy) subject to a decision‐ making process or are interested in it. Ref:André, P., B. Enserink, D. Connor and P. Croal (2006) Public Participation International Best Practice Principles .Special Publication Series No. 4. Fargo, USA: International Association for Impact Assessment
Passive Participation or information reception (a unidirectional form of participation), Participation through consultation (such as public hearings and open‐houses), Interactive Participation (such as workshops, negotiation, mediation and even co‐management).
Inform and educate the stakeholders, (which includes the proponent, public, decision-maker(s) and the regulator) on the planned intervention and its consequences.
Gather data and information from the public about their human (including cultural, social, economic and political dimensions) and biophysical environment, as well as about the relations (including those related to traditional and local knowledge) they have with their environment.
Seek input from the public on the planned intervention, including its scale, timing and ways to reduce its negative impacts, to increase its positive outcomes or to compensate impacts which may not be mitigated. Ref:André, P., B. Enserink, D. Connor and P. Croal (2006) Public Participation International Best Practice Principles .Special Publication Series No. 4. Fargo, USA: International Association for Impact Assessment
Contribute to better analysis of proposals leading to more creative development, more sustainable interventions and consequently greater public acceptance and support than would otherwise be the case.
Contribute to the mutual learning of stakeholders and to improvement of the PP and IA practice for a proposal. Ref:André, P., B. Enserink, D. Connor and P. Croal (2006) Public Participation International Best Practice Principles .Special Publication Series No. 4. Fargo, USA: International Association for Impact Assessment
PP Must be : Adapted to the context Informative and proactive Adaptive and communicative Inclusive and Equitable Educative Cooperative Improve the proposal
Initiated early and sustained Well planned and focused on negotiable issues Supportive to participants Tiered and optimized Open and transparent Context‐oriented Credible and rigorous The effort to achieve these defines a role for civil society
Environmental Impact is broader than what happens to the physical environment Social Impact Assessment is more challenging and requires stakeholder participation
More than 100 years of commercial operations Employs 3‐5 % of the labour force Many years of environmental pollution Major source of Government revenue Major contributor to GDP
% Contribution Petroleum
Non‐Petroleum
65.7
57.2
53.8
56.0
57.7
34.6
42.7
46.8
43.7
42.9
2009
2010
Source: Review of the Economy 2013
2011
2012
2013
Oil Revenue consists of Taxes from Oil Companies, 15 percent Withholding Tax, Royalties on Oil and Gas, Shares of Profits from Oil Companies under Production Sharing Contracts, Oil Imposts, Signature Bonuses‐ Competitive Bidding and Unemployment Levy (Oil)
Revenue and Grants TT$ Mn. Oil Revenue
Other Revenue
26,937.80 23,272.10 29,910.00 15,772.70 2008
2009
26,018.00
32,878.80 27,353.90 29,466.10
17,844.90 20,146.70 19,811.80 20,106.00 2010
Source: Review of the Economy 2013
2011
2012
2013
Impact of Operations on the environment VS.
Impact of Industry Incidents on the environment
The incident – Oil slick Location – Approx. 10 miles off Tobago Source/Cause of pollution : Collision of two oil tankers Sea state – Tropical rainstorm poor visibility Surveillance – Five Ships and four aircraft Assistance – Mobil , Amoco
July 19, 1979 during a rainstorm the Atlantic Empress en route to Texas collided with the Aegean Captain en route from Aruba to Singapore approx. 10 miles off Tobago Both vessels were Very Large Crude Carriers (VLCCs) carrying over 500,000 tonnes of oil combined Both vessels caught fire and 26 crewmen lost their lives
The fire on the Aegean Captain was put out and the ship towed to Curacao where the remaining oil was discharged The Atlantic Empress burned for approx. 2weeks but was towed 300 nautical miles away from Tobago but sank after an explosion An estimated 285,000 tonnes of oil was spilled , the largest ever ship spill
The Trinidad and Tobago Coast guard led the effort aided by a disaster team from Mobil, the owner of the Atlantic Empress cargo and Amoco Trinidad Oil Company Five ships and 4 aircraft were used to combat the fire and spill using dispersants and fire fighting equipment
Objective conditions Tropical rainstorm Poor Visibility ( 600 yards) Atlantic Empress apparently driven off course No Impact Analysis done Long term Impact unknown
Spill Management There was an National Oil Spill Contingency Plan The T & T Coast Guard led the effort Mobil sent 5 man disaster team Amoco provided assistance
There was less awareness of the impact of marine pollution The attention of the world was on the Ixtoc I blow out situation in the Gulf of Mexico ( This well spilled for about 1 year) No impact assessment was done for the Trinidad situation but NOAA studied the impact of Ixtoc 1 on the Gulf of Mexico
We may have escaped this time," said the Trinidad/Tobago Express, "but as an oil‐ producing and refining country, we are directly in the path of tanker movements and thus (very) vulnerable. The point is not whether it took place within our maritime boundaries, but to determine if our precautions to minimize the possibility of such accidents (in the future) are adequate."
The incident – Oil slick coming to shoreline Location – Gulf of Paria South western coast Source/Cause of pollution : inter alia over 7000 bbls. of Fuel Oil Surveillance –Ships, helicopters Assistance – International
Tier 1 ‐Site specific for which in‐house response capability is adequate. Includes shore side facilities, transfer sites, offshore installations, pipelines and vessels. Operators expected to have adequate response capability
Tier 2 Oil Spill –Small or medium spills with significant impact possible that require area or national support for adequate response
Operators must in addition to Tier 1 response capacity maintain a Tier 2 response capacity by subscription to dedicated , resident Tier 2 Oil Spill Response Organization (OSRO)
This Tier 2 OSRO must be able to provide 24 hour, 7 days a week response.
Tier 3 Spills – Large spills requiring substantial resources – regional or international cooperation Operators expected to obtain membership in a Tier 3 oil spill equipment cooperative that can mobilize within 24‐48 hours Plans for handling this type od spill based on Worst Case Discharge.
Produces 50% of the country’s oil output , Natural gas, Petroleum Products (e.g. LPG, Avgas, Gasoline, Kerosene, Jet A‐1, Sulphur, Bitumen, Fuel Oil )
Employs over 5,000 persons Contributes between TT$2.0 and TT5.0 billion annually to the Treasury
Provides medical services to approx. 20,000 employees, pensioners and their dependents Contributes over TT$200 million annually to subsidize petroleum products
MERGER (Expanded Trintoc) (1985) UBOT (1912 - 1956) SHELL (1956 - 1974)
(1974 - 1985)
(1985 - 1993)
TLL (1911 - 1956) TPD (1918- 1961 ) APEX (1919 - 1960) KTO (1920 - 1961)
Trinidad Northern Areas (TNA) 1962
2000
1993
(1956 - 1985)
TRINMAR LTD. 1993-2000 BRITISH PETROLEUM (1956 - 1969)
TESORO (1969 - 1985)
1969-1974
1974-1985
TRINTOPEC (1985 - 1993)
Petrotrin Established 1993 October 01
Fourteen constituencies in the Southern Half of Trinidad
La Brea Pointe a Pierre Mayaro Moruga‐Tableland Tabaquite Point Fortin Siparia
Fyzabad Oropuche East Oropuche West Naparima Princes Town San Fernando East San Fernando West
14 Constituencies Mayaro
Payments to Fisher folk TT$ 2.7 million PAP 1%
Expenditure on Oil Spill
EMA Fine 45%
Cedros/Fullerto n 4%
LA Brea /Otaheite 50%
Policies National Environmental Policy National Tourism Policy
National Biodiversity Strategy and Action Plan 2001 National Policy and Programme on Wetlands Conservation for Trinidad and Tobago (2002)
Applicable Sections Sec 4.8 (d) and Sec. 4.10
Permits required for particular sites Provides guidance on priorities for protection To manage threats to wetlands and requires protection, management and restoration of wetlands in order to sustain and enhance their ecological and socio economic values and function
LAWS
Applicable Sections
Oil Pollution of Territorial Waters Act 37:03 1951
3,4
Territorial Sea Act 1969
6 A
Continental Shelf Act 1969
7
Petroleum Act 1969
Part III, 29 (l),(h),(j)
Petroleum Regulations
42 (2), (c) (d), (i), (j), (k), (l) ; 43 ( r), (s).
Disaster Measures Act 16:50 1978
2,3,4
Archipelago Waters and Exclusive Economic Zone Act 1986
28, 30, 32.
Environmental management Act 35:05 2000 and Applicable rules – CEC Rules
24,25, 53,55, 61, and 70 (l)
OSH Act as amended 2004
As it relates to Industrial Establishments
Government Ministries Employees Board of Directors Worker Representative organizations Fenceline communities T& T Citizens Regulatory Agencies Media – Television, Radio, Newspapers, Freelance journalists ,Other
Fisher folk Associations including:
Fullerton Fisher folk Association Cedros fisher Folk United La Brea Fisher folk Association Otaheite Fishermen Oysters and Crab catchers Association
Fishermen and Friends of the Sea Environmental NGOs
Civil society has played a significant role in public discussion on extractive industry issues. A greater involvement of civil society can : Facilitate a greater understanding of public issues, concerns, priorities and solutions Build broader support for programmes and initiatives Increase mutual learning through the sharing of information, data and experiences Ensure that decisions and policies incorporate knowledge and expertise that otherwise might be overlooked Reflect a wider range of public concerns and values in decision‐ making Rapidly identify possible controversial aspects of an issue and help bring together different points of view to Achieve consensus in a collaborative manner Slocum N.(2003) Participatory Methods Toolkit: A practitioner’s manual. www.unu.cris.edu
