Management of Statutory Overlaps in Environmental Regulation
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Transcript Management of Statutory Overlaps in Environmental Regulation
MANAGEMENT OF STATUTORY OVERLAPS ON
ENVIRONMENTAL REGULATIONS IN THE
NIGERIAN OIL & GAS INDUSTRY
Dr. Musa M Zagi, SPE, Mei
DEPARTMENT OF PETROLEUM RESOURCES
LAGOS, NIGERIA
PRESENTED AT THE 15TH HSE INTERNATIONAL BIENNIAL
CONFERENCE ON OIL AND GAS, ABUJA-NIGERIA
NOVEMBER 5-7, 2012
PRESENTATION OUTLINE
FRAMEWORK FOR ENVIRONMENTAL REGULATION
DPR ENVIRONMENTAL LEGAL REGULATORY FRAMEWORK
MULTIPLE REGULATORS FOR ENVIRONMENTAL MANAGEMENT
CURRENT AREAS OF CONFLICT
POTENTIAL AREAS OF CONFLICT
WAY FORWARD
CONCLUSION
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FRAMEWORK FOR ENVIRONMENTAL REGULATION
ARMS AND LEVELS OF GOVERNMENT
THE CONSTITUTION
FEDERAL
80 legislative items (68+12)
Oil as item 39 on the exclusive
STATE
legislative list
LOCAL
Executive
Environment not listed in either
of the list, implying that it is on
the residual list with each arm of
Judiciary
Legislature
Government having legislative
right hence the multiplicity of
regulators
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DPR ENV. LEGAL/ REGULATORY FRAMEWORK
Petroleum Act, 1969; Section 9 (1)(b)(iii)
Associated Gas Reinjection Decree 99, 1979 and its amendments
Oil Terminal Dues Act, 1969
Mineral Oils (safety) Regulations, 1997; section 21
Petroleum (D&P) Regulations, 1969; sections 21-25
Petroleum Refining Regulations, 1974; sections 27, 35, 38 & 43
The Oil and Gas Pipelines Regulations, 1995
Environmental Guidelines & Standards for the Petroleum Industry, 2002
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MULTIPLE REGULATORS FOR ENVIRONMENTAL
MANAGEMENT
THE ORGANIZATIONS
KEY AREAS OF CONFLICT
The FMEnv
Current Areas
NOSDRA
Oil spill response management
DPR
Environmental Impact Assessment
NEMA
NIMASA
NDDC
SEPAs
Potential Areas
Drilling & production waste management
Gas flaring and leakage management
compensations and fines
Decommissioning and abandonment
The focus of my paper will be on
Pipelines/facilities integrity monitoring
FMEnv, NOSDRA and DPR
Abrogation of DPR’s laws
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ENVIRONMENTAL IMPACT ASSESSMENT (FMEnv / DPR)
The Environmental Impact Assessment Processes for DPR & FMEnv are similar in
content upto 2002 with the following major differences that arose when a revised
EGASPIN was issued
– ‘During’ not ‘before’ or ‘after’
– Integration of EIA with project concept selection, project engineering design, construction,
operation and decommissioning with attendant opportunities for design mitigation and
impact elimination (BOEM).
– A CTR-based Environmental Management Plan (EMP)
– Extensiveness vs Intensiveness
– Consolidation vs Fragmentation
Preparing EIA reports to satisfy both requirements is difficult with impacts on cost, time,
resources and project schedules
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OIL SPILL RESPONSE MANAGEMENT (NOSDRA/DPR)
Oil Spill Management evolved through a tiered response approach.
NOSDRA originally conceived to cater for disastrous spills i.e. 3rd tier (section 5 of
the Act), but now responsible for managing all tiers (section 1 of the Act) NOSCP though formulated, is yet to be established.
Multiple JIVs and OSCP activation
Increase in CTR and risks associated with frequent exposure of personnel to areas
with security concern.
Efforts underway to amend NOSDRA enabling act to include dealing with Gas
flaring, E&P Wastes, pipelines integrity, decommissioning and abandonment etc.
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OIL SPILL RESPONSE MANAGEMENT (NOSDRA/DPR) Cont’d
On a proximodistal axis of our HSE schedules, OSR is at the distal end
At the proximal side of the axis our focus is to design out oil spill incidents by
– Restricting number of connectors, hinges and valves on high pressure hydrocarbon
lines.
– Robust pipeline and vessel hydro-testing procedures
– drainage systems underneath HC separators.
– Optimal pipeline/flowline routing to avoid high risk areas.
– Preventive maintenance programs of critical facilities
– Emplacement of hydrocarbon leak detection systems on pipelines and export
pumps
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POTENTIAL AREAS OF CONFLICT
NOSDRA’s Act 2006 is currently being amended by the NA with the following amendments
amongst others
prevention, detection and general management of oil spills, oily wastes, gas leakages and response and
gas flaring
remediation and compensation
ensuring subscription of operators to CNA or similar bodies
increasing penalty for failure to report oil spillage from N500K to N5M
a penalty of N50M or 2 years imprisonment or both for failing to clean-up within 2 weeks of the spill
Monitoring decommissioning and abandonment for drill sites and other oil facilities
Funding of the agency ( 2.5% EF, 0.5% IOC/LOC’s operational fund and 10 cents/bbls)
Repealing/ overriding/voiding of existing laws relating to oil, oily wastes pollution management and gas
leakages in the petroleum sector
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WAY FORWARD
WHAT OPTIONS ARE AVAILABLE FOR TACKLING THE PROBLEM?
OPTION 1 :Maintain the status quo with its corresponding consequences
OPTION 2: Transfer the environmental functions of DPR to FMEnv and
its Agencies
OPTION 3: Retain the environmental functions in the oil and gas industry
with the DPR
OPTION 4: Tackling the root causes of the problem
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WAY FORWARD
OPTION 1: Maintain the status quo
Not the way to go because of:
The attendant unwieldiness associated with duplication of efforts.
Different process and schedule for same activity
Wastage of Considerable resources to achieve same/similar goals
Project delays in a schedule-driven industry
surreptitiousness on the part of operators
It decreases accruable revenue to government
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WAY FORWARD
OPTION 2: Transfer DPR Environmental Functions to FMEnv
Already attempted in 1999 and reversed. A possible option but one that is unconventional, unnecessary,
and costly for the following reasons:
Enforcing sustainable development in oil & gas projects will be hampered as there will be
- no Integration of social, economic and environmental factors in project decision making thus
tempering with the proximodistal axis of our activities
-total disequilibrium between productivity and environmental protection
DPR predating FEPA & FMEnv not an anomaly
FMEnv does not have the capacity and enforcement instrument (license or permit for oil and gas
operations). Sectoral enforcement is most effective
Current approach to oil & gas industry regulation is a one-stop-shop approach to avoid predication
of Petroleum Minister’s time-bound activities on the activities of another Minister
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WAY FORWARD
OPTION 3 Retain the Environmental Functions in the Oil and Gas
Industry with the DPR.
Strengthen the DPR with adequate resources for Optimal HSE Performance
as done to MMS post- Macondo (BOEMRE, BOEM, BSEE)
Revisit and establish MOUs between DPR (MOU enablers) and
FMEnv/NOSDRA/NIMASA with clear demarcations, delineation and/ or
delegation of responsibilities as done internationally (USEPA)
Previous efforts in the past were encumbered. (MOU)
This is in line with global practice of a one-stop-shop concept in oil and gas
industry operations
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WAY FORWARD
OPTION 4: TACKLING THE ROOT CAUSES OF THE PROBLEM
Arbitrariness of legislative process
-TOR Vs Scope
- Power of lobby
-Extant laws
-Alliance with MDAs (H/U/E)
Executive fiat that create MDAs before defining (and enacting by NA) policies and elements
Self serving bureaucracy
- The ??? is can we hold unto our views/proposals head or tail of the coin?. If not, then our
views/proposals are selfish and unpatriotic
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CONCLUSION
Multiple environmental regulations/regulators exist in the oil and gas operations with its
associated negative effects on standards, safety and CTR
There is a need for a one-stop-shop approach with one agency that could provide definitive
answers to regulatory questions and that agency should be able to enforce environmental
compliance
The FME should issue, upgrade and/or adopt standards and allow for sectoral enforcement
The short term solution is for FME and its agencies to establish MOUs with other Federal,
State and Local Government agencies with a clear demarcations of roles and responsibilities
as enshrined in the statutes of the FME/NOSDRA
The long term solution is through legislative amendments of conflicting laws
We all have a role to play: - the executive, the legislature and the bureaucrats
Are we ready to make history by playing our respective roles?
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THANKS FOR LISTENING
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