Environmental Manual Jan 21 2009 PDF

Environmental Manual
for petroleum activities
Norwegian Ministry of Environment

The Oil for Development Programme, Norad
Petrad
FOREWORD
This Environmental Manual has been produced primarily to form a common foundation for
providing advice and training to governments in developing countries by Norwegian
environmental authorities and others, under the auspices of the Oil for Development Programme
at Norad, the Norwegian Directorate for Development Cooperation. It summarizes many of the
experiences gained through more than 40 years of petroleum activities in Norway, and draws also
upon experiences from other developed and developing countries. However, it is the hope that the
Manual may be of direct use to partner countries when they shall formulate, regulate or supervise
environmental matters related to their petroleum activities.
The current version of the Manual is a draft which has been released to be used and thus to gain
some experiences from practical implementation. Comments to the Manual are therefore most
welcome. The Manual will be revised and a more developed version will be issued within a few
months. 1
The Manual has been developed by a group of representatives from the Ministry of the
Environment, the Directorate for Nature Management and the Norwegian Pollution Control
Authority, with experts from Det Norske Veritas as consultants.
The Manual will be available in printed form, and on the home pages of the Ministry of
Environment (www.miljo.no), the Oil for Development Programme (www.norad.no/ofd) and
Petrad, the main training provider (www.petrad.no).
The Norwegian Ministry of the Environment
Please submit comments to:

Terje Lind, Deputy Director General
Ministry of the Environment
P O Box 8013 Dep, NO-0030 Norway
Tel +4722245922
email: terje.lind@md.dep.no
Environmental Manual- DRAFT January 21 2009
Table of Contents
1
INTRODUCTION ............................................................................................................. 2
THE OIL AND GAS VALUE CHAIN ............................................................................ 4
ENVIRONMENTAL ASPECTS AND POTENTIAL IMPACTS ................................ 6
3.1
Introduction ................................................................................................................ 6
3.2
Environmental aspects................................................................................................ 7
3.3
Overview of environmental aspects and potential impacts along the oil and gas
value chain................................................................................................................ 10
ENVIRONMENTAL POLICY AND LEGISLATION ................................................ 17

4.1
Introduction .............................................................................................................. 17
4.2
Developing an Environmental management policy ................................................. 17
4.3
Implementing an Environmental management policy ............................................. 18
ENVIRONMENTAL TOOLKIT ................................................................................... 19

5.1
Introduction .............................................................................................................. 19
5.2 Strategic Environmental Assessment ....................................................................... 21

5.2.1
SEA for opening of new areas to petroleum activity ...................................... 21
5.2.2
Regional SEA/IA for existing and future activities ........................................ 22
5.2.3
Ecosystem based Integrated Management Planning ....................................... 23
5.3 Coastal zone management ........................................................................................ 24
5.4
Sensitivity mapping .................................................................................................. 25
5.5
Environmental Resource Database ........................................................................... 26
5.6
Environmental Management System ....................................................................... 27
5.7
Waste management Plan .......................................................................................... 28
5.8
Environmental Risk Assessment .............................................................................. 29
5.9
Oil Spill Contingency Planning................................................................................ 30
5.10 Environmental Baseline Study and Environmental Monitoring .............................. 32

5.11 Environmental Impact Assessment .......................................................................... 33
5.12 Social Impact Assessment ........................................................................................ 34
6
A GUIDE TO ASSESS THE ENVIRONMENTAL SENSITIVITY OF A

PETROLEUM DEVELOPMENT PROJECT.............................................................. 35
6.1
Introduction .............................................................................................................. 35
6.2
How can environmental sensitivity be categorised? ................................................ 35
Date : 2009-01-21
GUIDANCE ON CLIMATE CONSIDERATIONS WITHIN OFD ........................... 38

7.1
Introduction .............................................................................................................. 38
7.2
Mitigating measures ................................................................................................. 38
7.3
Policy measures ........................................................................................................ 38
7.4
Clean Development Mechanism .............................................................................. 39
7.5
Adaptation measures ................................................................................................ 39
ENSURING SUSTAINABLE LOCAL AND REGIONAL DEVELOPMENT ......... 40

8.1
The need for a holistic approach .............................................................................. 40
8.2
Economic implications of environmental concerns in the case of oil and gas

exploration ................................................................................................................ 41
8.3 Elements of successful sustainable development ..................................................... 42

8.3.1
Transparency ................................................................................................... 42
8.3.2
Stakeholder dialogue....................................................................................... 44
8.3.3
Compensation ................................................................................................. 44
8.3.4
Civil Society ................................................................................................... 45
8.3.5
Human Rights (incl Minorities) ...................................................................... 46
8.3.6
Operator CSR initiatives ................................................................................. 47
9
REFERENCES ................................................................................................................ 48
Appendix 1
Date : 2009-01-21
Global agreements and conventions
ii
LIST OF ABBREVIATIONS (not complete)

OFD
Oil for Development
E&P
Exploration and Production (of oil and gas)
FPSO-
Floating Production Storage and Offloading (vessel)
GHG
Green House Gases
CSR
Corporate Social Responsibility
CDM
Clean Development Mechanism
Date : 2009-01-21
Page 1
1 INTRODUCTION
Background
The Oil for Development programme was established in 2005 by Norad, the Norwegian Agency
for Development Cooperation. Oil for Development aims at assisting developing countries with
petroleum resources in their efforts to manage these resources in a way that generates economic
growth, promotes the welfare of the population as a whole, and is environmentally sustainable.
The Oil for Development programme is built around three pillars; resource management, revenue
management and environmental management. Increased focus on environmental protection and
increased demand from cooperating countries for guidance on these issues have created a need
for a Manual that will be the information basis for such guidance.
Purpose
The purpose of this Manual is to give an overview of environmental challenges related to the
development of petroleum resources so that these can be taken into consideration when
developing countries plan and carry out petroleum related activities. Further, the purpose of this
Manual is to provide an overview of the main tools available to manage environmental impacts.
The target audience is primarily government staff from the Norwegian environmental institutions
involved in giving advice to the cooperating countries in the field of environment. It is assumed
that also the staff of Oil for Development at Norad, consultants and other cooperating partners
will find it useful. The Manual may also form the basis of training courses offered by Petrad,
which is the executive body to organize a wide range of training programmes for developing
countries in the field of petroleum. It may also be of use to government staff and others in
developing countries working with environmental matters related to oil and gas activities.
Outline of Manual
The Manual consists of the following two main parts:
Environmental aspects and potential impacts (chapter 3)- The Manual provides an
overview of the main environmental aspects related to the development of petroleum
resources, from beginning to end of the oil and gas value chain. An overview of the main
potential environmental impacts is given, as well as socioeconomic impacts associated
with petroleum activities.
Environmental toolkit (chapter 5)- The Manual provides an overview of the main tools
that can be used by governments and/or the petroleum industry in order to avoid,
minimize or mitigate environmental impacts. The focus is on tools used in Norway
however international guidelines are given where relevant.
The overall outline of the Manual and the underlying logic is further explained in Table 1-1
Date : 2009-01-21
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Table 1-1 The outline of the Manual. The main content of the manual is highlighted.
What are the main activities carried out along the Chapter 2 The oil and gas value chain
oil and gas value chain?
What are the environmental aspects related to
these activities, and what are the potential impacts
on the environment?
Chapter 3 Environmental aspects and

potential impacts
What management measures can be used to avoid, Chapter 4 Environmental policy and
minimize and mitigate these impacts?
legislation
Chapter 5 Environmental toolkit
How can the environmental sensitivity be
assessed at an early stag of a planned petroleum
development project?
Chapter 6 A guide to assess the

environmental sensitivity of a petroleum
development project
(before any of the tools in the toolkit are applied)

How can climate considerations be made in
petroleum activities?
Chapter 7 Guidance on climate

considerations within OfD
Applying a more holistic approach- how can

sustainable local and regional development be
ensured?
Chapter 8 Ensuring sustainable local

and regional development
Date : 2009-01-21
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2 THE OIL AND GAS VALUE CHAIN

This text gives a brief overview of the main activities that are carried out from start to finish of
the oil and gas value chain. Environmental impacts have an origin in the activities that are carried
out. Hence, this section serves as background information to chapter 3 Environmental aspects
and potential impacts.
For the purpose of this Manual, the oil and gas value chain is divided into seven different phases
as shown in Figure 2-1. An overview of main activities along the oil and gas value chain is given
in Table 2-1.
GEOLOGICAL,
RESOURCE,
ENVIRONMENTAL
MAPPING
OPENING OF NEW
EXPLORATION
REGIONS/FIELDS
FIELD/
FACILITY
OPERATION
DEVELOPMENT
TRANSPORTATION
REFINING
DECOMMISSIONING
Figure 2-1 The Oil and gas value chain
Table 2-1 Overview of main activities along the oil and gas value chain
Value chain
Description of main activities
Geological,
resource,
environmental
mapping
Geological mapping, including desk study and seismic surveys, identify areas with favourable
geological conditions for oil and gas extraction.
Seismic surveys offshore are conducted by sending sound waves into the seabed, using large,
specially designed ships with air guns and cables with receivers. The air guns fire strong,
compressed air-based sound pulses (sound waves) at regular intervals, typically each 25 metres
the vessel moves.
Seismic surveys onshore are conducted either by shot-hole method (using dynamite) or
vibroseis (using a generator that hydraulically transmits vibrations into the earth).
Mapping of resources and environment is performed to establish a knowledge base for
environmental protection.
Opening of new
regions/fields
The government 1) opens new regions (areas) for exploration drilling, 2) issue production
licenses in opened areas, and 3) approve field developments for discoveries in granted licences.
Exploration
Exploratory drilling explores the presence or absence of a hydrocarbon reservoir while

appraisal drilling may improve quantification of the reserves. Mobile rigs commonly used
offshore include jack-ups and semi-submersibles, whilst in shallow protected waters barges
may be used. For land-based operations a pad is constructed at the chosen site to accommodate
drilling equipment and support services. A self-contained support camp is also constructed,
which may include helipad for remote sites. The time to drill a bore hole is commonly in the
order of one or two months. Where a hydrocarbon formation is found, initial well testspossibly lasting another month, are carried out, often generating oil, gas and formation water
that need to be disposed of, followed by the drilling of more wells to determine the size and
extent of the field (appraisal wells).
Field and facility
Field and facility development involves drilling of production wells and constructing
Date : 2009-01-21
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development
platforms/FPSO/subsea systems, production facilities, pipelines and infrastructure for

transportation of oil and gas.
Operation
Oil and gas is produced from the reservoir through formation pressure, artificial lift (water or
gas), and possibly advanced recovery techniques, until economically feasible reserves are
depleted. Injection wells are drilled in order to inject gas/water/steam to maintain reservoir
pressures and increase recovery rates (other methods of recovery can also be used). Production
facilities process the hydrocarbon fluids and separate oil, gas and water. Produced water is
treated and discharged or re-injected.
Transportation
and refining
Oil and gas is transported to refinery where crude oil is separated and converted into end
products such as high-octane motor fuel (gasoline/petrol), diesel oil, liquefied petroleum gases
(LPG), jet aircraft fuel, kerosene, heating fuel oils, lubricating oils, bitumen, and petroleum
coke. Refined products are transported from refinery to end-users by pipelines, ship or road.
Decommissioning
Petroleum installations are either re-used or demolished for recycling or disposal. Clean up is
also included as part of decommissioning. Decommissioning generally involves permanently
plugging and abandoning all wells, and may include removal of buildings and equipment,
transfer of buildings and roads to local communities or host government entities,
implementation of measures to encourage site re-vegetation and site monitoring.
Sources: OGP, 2008 and E&P Forum/UNEP, 1997
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3 ENVIRONMENTAL ASPECTS AND POTENTIAL IMPACTS

3.1 Introduction
The purpose of this section is to provide an overview of the main environmental aspects related to
the development of petroleum resources, from beginning to end of the oil and gas value chain. A
broad overview of corresponding potential environmental impacts is given. The potential for oil
and gas operations to cause impact must be assessed on a case-by case basis, since different
operations, in different environments, in different circumstances may produce large variations in
the magnitude of a potential impact (E&P Forum/ UNEP 1997). With management and
application of best practice, potential impacts can be avoided, minimized or reduced (relevant
management and assessment tools are described in section 4).
Significant environmental aspects for oil and gas sector have been identified, using the following
definition of environmental aspect:
Environmental Aspect- Elements of an organizations activities, products of services
which can interact with the environment (ISO 14001)
The main environmental aspects are identified as follows:
1. Land use, water use and physical footprint
2. Discharge to water and soil
3. Emissions to air including green house gases
4. Noise/vibration
5. Waste disposal
6. Accidental discharge
Aspects 1 through 5 are all related to planned activities along the oil and gas value chain, while
aspect 6 relates to the unwanted events.
Environmental aspects can result in impacts on the environment that can be either direct or
indirect. The following definitions are used:
Environmental Impact- Any change to the environment, whether adverse or beneficial,
wholly or partially resulting from an organizations activities, products or services (ISO
14001)
Direct impacts are caused by an action and occur at the same time and place as
the action. Ex: water contamination due to disposal of hazardous wastes.
Indirect impacts are caused by the action and are later in time or farther removed
in distance, but still reasonably foreseeable. Ex: degradation of biodiversity due to
water contamination
Date : 2009-01-21
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Environmental impacts can also result in socioeconomic impacts. The relationship between
aspects and impacts are shown in Figure 3-1.
Environmental
aspect
Environmental
impact
Socioeconomic
impact
Figure 3-1 Relationship between environmental aspects, environmental impacts and

socioeconomic impacts
The following sections are based on E&P Forum/ UNEP report Environmental Management in
oil and gas exploration and production. An overview of issues and management approaches.
3.2 Environmental aspects

The environmental aspects relevant to the development of petroleum resources are elaborated
below.
Land use, water use and physical footprint
Land use/occupation of land needed for shooting seismic, base camps, facilities, roads,
pipelines.
Water use (surface water, ground water) for production facilities and consumption
Physical footprint is defined as physical disturbance to or removal of soil, seabed,
vegetation and water cover as a result of construction of facilities and infrastructure
Waste
The primary types of wastes produced in the oil and gas value chain are listed in Table 3-1.
Table 3-1 Wastes produced in the oil and gas life cycle
Value chain
Wastes produced
Geological,
resource,
environmental
mapping
The primary wastes from seismic operations include domestic waste, sewage, possibly
explosive wastes, lines, cables and vehicle (including ship) maintenance wastes.
Opening of new
regions/fields
(none)
Exploration
The primary wastes from exploratory drilling operations include drilling muds and cuttings
(small rock fragments), cementing wastes, well completion, workover and stimulation fluids
and production testing wastes. Other wastes include excess drilling chemicals and containers,
construction materials (pallets, wood, etc), process water, fuel storage containers, power
unit/transport maintenance wastes, scrap metal and domestic and sewage wastes.
Date : 2009-01-21
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Field and facility

development
The primary wastes from construction activities include excess construction materials, used
lubricating oils, paints, solvents, scrap metal, sewage and domestic wastes.
Operation
In addition to the wastes listed in Exploration and Field and facility development, the main
wastes from operations include produced water, drain water, flare and vent gas, production
chemicals, workover wastes, e.g. brines, and tank or pit bottoms.
Transportation
and refining
The primary wastes from refineries are asbestos, acid tars, sludges with a high lead content and
many oil contaminated materials (for instance oily waste and sludges from water clean-up
operations), waste biomass from effluent treatment plants, scrap metal, spent catalytic cracking
catalyst and domestic waste;. (CONCAWE, 2003).
Decommissioning
The primary wastes from decommissioning and reclamation include construction materials,
insulating materials, plant equipment, sludges and impacted soil.
Source: OGP, 2008

Discharge to water and soil
The main wastes that can be discharged to water (ocean or fresh water) and soil are (E&P/UNEP
1997):
Produced water. Typical constituents are inorganic salts, heavy metals, solids, production
chemicals, hydrocarbons, benzene, PAHs and naturally occurring radioactive material.
Drilling fluids and cuttings. Typical constituents of water-based mud and cuttings are clay
and bentonite with metals bound in minerals (Barium, Cadmium, Zink, Lead). Oil-based
mud and cuttings contain hydrocarbons. Certain drilling fluids and cuttings have high pH
and salt content.
Well treatment chemicals.
Process, wash and drainage water.
Sewage, sanitary and domestic wastes.
Cooling water
Emissions to air
The primary sources of emissions to air from exploration and production are as follows
(E&P/UNEP 1997):
Combustion processes such as diesel engines and gas turbines
Flaring, venting and purging gases
Fugitive gases from loading operations and tankage and losses from process equipment
Airborne particulates from soil disturbance during construction and from vehicle traffic
Date : 2009-01-21
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Particulates from other burning sources, such as well testing

The primary emission gases include carbon dioxide, carbon monoxide, methane, volatile organic
compounds and nitrogen oxides. Emissions of sulphur dioxides and hydrogen sulphide can occur
and depend upon the sulphur content of the hydrocarbon and diesel fuel, particularly when used
as a power source. In some cases, sulphur content can lead to odour near the facility.
Flaring, venting and combustion are the primary sources of carbon dioxide emissions from
production operations, but other GHG should also be considered, for example methane. Methane
emissions primarily arise from process vents and to a lesser extent from leaks, flaring and
combustion.
The primary sources of emissions to air from refineries are (Concawe, 1999):
Process furnaces, boilers, gas turbines
Fluidised Catalytic Cracking (FCC) regenerators
Flare systems
Incinerators
Sulphur Recovery Units (SRU)
Coke plants
Storage and handling facilities
Oil/water separation systems
flanges and vents
The primary emission gases from refineries include carbon dioxide, sulphur dioxide, oxides of
nitrogen, particulates and volatile organic compounds.
Accidental discharge
Accidental discharges of oil and gas, fuel, chemicals and hazardous materials may occur to sea,
soil, surface water and ground water, and air. Main sources representing the largest volumes are:
Oil or gas well blow-out
Leakages from pipelines, storage and process facilities
Marine casualty as ship grounding, collisions or structural failure
Most often there is a complex causality for accidental discharges. An accidental discharge can be
caused by a complex combination of unwanted events such as human error, navigational failure,
loss of well control during drilling, explosions, fires, structural failure, equipment failure, natural
disasters, war and sabotage. The spill size depends on the volume that potentially can be
discharged and the measures taken to reduce the spill size. The spill duration is an important
factor regarding the size of a discharge. Thus, efficient and quick response to reduce spill size is
important.
Date : 2009-01-21
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Noise/vibration
The primary sources of noise/vibration are:
Seismic surveys. Shooting seismic onshore involves the use of explosives. Seismic
surveys offshore are conducted by sending sound waves into the seabed.
Construction of base camps, facilities, roads, pipelines and vehicle traffic
Operation of process facilities and vehicle traffic
Decommissioning activities
3.3 Overview of environmental aspects and potential impacts along the oil
and gas value chain
Table 3-2 provides an overview of the main environmental aspects and potential environmental
impacts along the oil and gas value chain. The table also provides an overview of potential
socioeconomic impacts associated with environmental impacts. Impacts are split into direct and
indirect impacts.
The impacts given in the table are potential impacts and, with proper care and attention, may be
avoided, minimized or mitigated. Numerous relatively small projects may alone have relatively
minor impacts, but the cumulative impacts of such projects can become significant over time.
Cumulative impacts are generally described as changes in the environment that result from
numerous human-induced, small scale alterations. Cumulative impacts occur first, through
persistent additions or losses of the same materials or resource, and second, through the
compounding effects as a result of the coming together of two or more effects. Cumulative
impacts may be hard to foresee. Thus, cumulative impacts of a development must be identified
and managed the same way as direct impacts, and be incorporated into land use and coastal zone
management.
Date : 2009-01-21
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Table 3-2. Main environmental aspects along the oil and gas value chain. Potential environmental and socioeconomic impacts, both direct and indirect are given.
Activity
Source
Environmental aspect
Potential Environmental impacts

Direct
Aerial Survey
Aircraft
Noise
Potential
Environmental impact
Potential
Socioeconomic impact
Indirect
Direct or Indirect
Disturbance to wildlife.
Short-term, transient
Seismic
operations
(onshore)
Seismic
equipment
(drilling,
explosions)
Noise/vibration
Disturbance to wildlife.
Short-term
Base camps
Footprint
Loss of flora due to vegetation

clearing.
Erosion due to soil/ vegetation
cleared.
Noise
Disturbance to local environment.

Short-term, transient.
Waste disposal
Soil and water contamination.
Changes in surface
hydrology and drainage
pattern
Habitat damage.
Loss of biodiversity.
Disturbance to local
population.
Schedule operations during

least sensitive periods. Avoid
sensitive areas.
population.
Schedule operations during

least sensitive periods. Avoid
sensitive areas. Noise
attenuation on engines.
population.
Select site to minimize

clearing of vegetation and top
soil. Minimize camp size.
Encourage natural
rehabilitation by indigenous
flora. Selectively use heavy
machinery to minimize
footprint, noise, emissions to
air. Use existing infrastructure.
Influx/settlement through
new access routes
(potential long term
impact)
Land use conflict
Immigration of labour
Discharge of sewage
Accidental discharge (fuel,
chemicals)
Line cutting
Emission to air (power

generation)
Degradation of air quality
Footprint

clearing.
Possible erosion due to vegetation
cleared
Mainly short-term and transient
Date : 2009-01-21
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Mitigating measures (not

complete)
Minimize waste, and ensure

safe handling and disposal of
waste. Ensure safe handling
and storage of fuels,
chemicals.
Contingency plans
Changes in drainage
patterns and surface
hydrology.
new access routes
impact)
Minimize clearing of
vegetation. Minimize line
width. Hand-cut lines to
minimize disturbance. Use
dog-legs to minimize use as
access.
Activity
Source

Direct
Seismic
operations
Seismic
equipment
Noise (acoustic sources)
(offshore)
Physiological effects. Disturbance

to marine organisms.
Potential
Potential
Indirect
Direct or Indirect
Behavioural impacts to
wildlife
Schedule seismic survey

during least sensitive periods,
e.g. time restrict seismic
activity in spawning areas for
important fish species, and in
areas where concentrated
spawning journeys take place.
Short-term and transient
Vessel operation
Emissions to air from engines
Discharges to ocean of bilges,

sewage
Contamination of marine
environment.

chemicals).
Waste disposal on shore
Conflict with other

resource users (e.g.
fishing). Short-term,
transient.
Site preparation,
construction of
roads and camp
Land use and Footprint

clearing.
Possible erosion due to vegetation
cleared.

chemicals)
Degradation of air quality.
Changes in surface
hydrology and drainage
pattern
Habitat damage.
Disturbance of local
population.
new access routes
impact)
Land use conflict
Aesthetic visual intrusion
Soil, surface water and ground

water contamination.
Noise
Disturbance of wildlife
Short-term provided adequate
decommissioning and rehabilitation
Safe disposal of waste and oily

water.
Stay on survey track to avoid

unwanted interactions.
Loss of biodiversity
Emissions to air from earth
moving equipment
Contingency planning for oil

spills and loss of equipment.
Label and safeguard towed

equipment.
Contamination at on-shore waste

disposal site.
Low-level, transient
Exploration
(onshore)

complete)
Select least sensitive site

location in dialogue with
stakeholders, close to existing
access roads and using existing
infrastructure (water, sewage)
if possible.
Schedule construction during
least sensitive periods.
Minimize cleared area and size
of site. Plan ahead for optimal
site restoration, reusing
removed vegetation and soil.
Ensure proper drainage.
Consider drilling method that
minimizes footprint.
Prevent unauthorised use of
access roads.
Protect soil, surface and
ground water from pollution:
Seal areas to be used for mud
mixing, fuel and chemical
storage; any mud and burn pits
Date : 2009-01-21
Page 12
utilised for well test operations

must be lined and bunded, or
pits replaced by tanks.
Camp and
operation
Use of local water sources

Discharges to soil and water from
well test operations (muds,
cuttings, produced water, mud
pits).
Depletion of local water sources,

lowering of ground water table
water contamination
Habitat damage.
Disturbance and
interference to local
population
Land use conflicts
Water conflicts
Discharges to soil and water from

camp (sewage, grey water,
drainage
Interaction between
workforce and local
population.
Accidental discharges of oil, fuel,

chemicals (blow-out, leakages)
Immigration
Employment
Waste disposal of oily muds and

cuttings by landfarming, pits.
Hunting
Emissions to air from plant

equipment, transport, well test
operations and flaring
Noise, vibration and extraneous

light (drilling, camp, helicopter,
vehicle traffic)
Disturbance to wildlife
Poaching
Fishing
Local infrastructure
(education, roads,
services)
Use local infrastructure for

water supply, sewage and
wastes when possible.
Minimize water use and
maximize water recycling in
areas of water shortage.
In remote areas without access
to infrastructure, case by case
solutions must be designed to
minimize impacts, e.g. soak
away/septic tank for sewage,
safe burial or incineration of
wastes, monitoring of all
discharges/emissions.
Use low-toxic water-based
drilling muds.
Ensure machinery and
equipment are properly
cladded for noise. Shade light
sources and direct onto site
area.
Control workforce activities in
terms of interaction with local
population, use of local
resources.
Exploration
(offshore)
Operations
Discharges to marine environment

from well test operations (muds,
cuttings, produced water).
environment (sediment and sea
water)
Other discharges to marine

environment (wash water,
drainage, sewage, sanitary and
kitchen wastes).
Accidental discharge of oil,
chemicals (blow-out, leakages).
Date : 2009-01-21
Disposal of oily muds and cuttings

on onshore waste disposal sites
Contamination of soil, ground water

and water at onshore waste disposal
site
Emissions to air (burning, flaring)
Noise (helicopter, vessel
Page 13
Loss of access and

disturbance/conflicts
with other marine
resource users
Schedule exploration during

least sensitive periods.
Local infrastructure
(ports, roads).
Treatment of all aqueous

wastes prior to discharge:
Local infrastructure in
connection with onshore
waste disposal
Use low toxic water-based

drilling muds.
Disturbance of local
population from
helicopter and vessel
movements.
Select least sensitive location.
Safe handling and storage of

wastes for onshore disposal.
Use efficient and maintained
well test burners. Control H2S
emissions.
Activity
Source
movement)
Short-tem and transient.

Direct
Field/facility
development
Roads, site
preparations,
pipelines
Land-use and footprint
Barriers to wildlife movement
Erosion due to vegetation clearance

(onshore)
Noise
Disturbance of wildlife
Emissions to air (earth works)
Potential
Potential
Indirect
Direct or Indirect
Long term loss of habitat
Disturbance due to traffic
Immigration
Changes to surface
hydrology
Impact on local
infrastructure
Global warming
Demand on local
infrastructure (water,
sewage, solid waste
disposal).
Ozone depletion
Labour force
Long term impacts
Operation
Use of local water sources
Depletion of local water sources
(onshore)
Discharge from well operations

(drill cuttings, muds, produced
water).

water contamination
Loss of Biodiversity
Discharges, others (drainage,

sewage, sanitary and kitchen
wastes)
Employment
Education
Accidental discharge of oil,

chemicals (blow-out, leakages)
Medical and other

services
Waste disposal of oily muds and

cuttings by landfarming, pits.

complete)
All aspects identified for

exploration drilling should be
applied to permanent sites and
access roads, with particular
considerations for long term
disturbance and effect on
environment, infrastructure
and local population. Site
selection and preparation
planning should include
considerations of eventual
decommissioning and
restoration.
Install proper waste and waste
water treatment facilities. Reinject produced water.
Install treatment facilities for
waste gases. Avoid gas
venting.
Install oil sumps, interceptors
and oily water treatment
system.
Local economy
Emissions to air from power and

process plant (waste gases,
flaring).
Noise/vibration
Disturbance of wild life
Effects on indigenous
populations.
Land-use conflicts
Water conflicts
Long term impacts.
Visual and aesthetic

intrusion.
Long term impacts
Operation
(offshore)
Date : 2009-01-21
Discharges from well operations

(drill cuttings, mud, produced
Page 14
Long term chronic effects on

benthic and pelagic biota

Demand on local onshore

infrastructure (local port,
All aspects identified for

exploration drilling should be
water)
Discharges, other (drainage,
sewage, sanitary and kitchen
wastes)
Emissions to air from power and

process plant, flaring.
Disposal of oily muds and cuttings

on onshore waste disposal sites
Noise from facilities and flaring

Transportation
and refining
Degradation of sediment and water

quality
Global warming
solid waste disposal).
applied to permanent sites.
Ozone depletion
Disturbance from vessel

and helicopter
movements.
Install oily water treatment

system for both produced
water and contaminated water
treatment
Resource use
interactions.
Community interactions
related to supply and
support functions.
Contamination of soil, ground water

and water at onshore waste disposal
site
Contamination of marine and

terrestrial environment.
Accidental discharge and

operational discharges of oil,
chemicals from refineries. Waste
disposal

water contamination
Emission to air from refinery
Noise from refinery
Proper handling and disposal

of wastes onshore.
Loss of habitat
Global warming
Demand on local
infrastructure (water,
sewage, solid waste
disposal).
Ozone depletion
Labour force
Employment
Education
Medical and other
services
Local economy
Effects on indigenous
populations.
Land-use conflicts
Water conflicts
Visual and aesthetic
intrusion.
Long term impacts
Land-use and Footprint
(onshore)
Accidental discharges of oil,

chemicals
Waste disposal of hazardous
Date : 2009-01-21
Page 15
Install system for treatment of

waste gases. Avoid gas
venting.
Accidental discharge of oil during

transportation (pipe, ship, road)
Decommissioning
Install sewerage treatment

system.
Permanent impact on wildlife if site

is not restored to original state
Contamination of soil, surface water
and ground water
Contamination of soil, surface water
and ground water at onshore waste
Infrastructure and
resource conflicts.
Install systems for treatment of

emissions to air and
operational discharges.
Proper handling and disposal
of wastes.
materials, and other wastes
disposal sites.
Disturbance to wild life
Noise
Decommissioning
Land-use and Footprint
(offshore)
Date : 2009-01-21
Permanent impact on wildlife if site

is not restored to original state
Accidental discharges of oil,

chemicals if systems are not
cleaned before removal
environment from accidental spills
if systems are not cleaned before
removal.
Noise
Disturbance to wild life
Page 16
Secondary use of
installations as artificial
reefs: Increased
bioproductivity of coastal
waters by providing
additional habitats for
marine life.
Infrastructure and
resource conflicts.
Abandonment of
offshore structures can
result in physical
interference with fishing
activities (e.g. trawling).
Decommissioning of offshore
structures is subject to
international and national laws,
and should be dealt with on an
case by case basis with local
authorities, developing a
decommissioning and
rehabilitation plan.
4 ENVIRONMENTAL POLICY AND LEGISLATION

4.1 Introduction
Environmental management of a countrys oil and gas activities consists of the following three
elements:
1. Environmental policy
2. Laws and regulations
3. Tools
The goals and aims on how the countrys petroleum resources is to be developed is established in
an environmental policy. The policy is enacted through laws and regulations and control of
petroleum activities. Environmental management goals are achieved through the application of
various tools. The hierarchy of policy, laws and regulations and tools is illustrated in Figure 4-1.
An overview of main elements to policy and law and regulations is given in the following
sections, while tools are described in chapter 5.
Figure 4-1 The hierarchy of policy, laws and regulations and tools
4.2 Developing an Environmental management policy

One of the first tasks of a government deciding to prepare for petroleum exploration or
exploitation would be to adopt a petroleum policy. The policy may set forward where, when and
how the search for oil and gas should take place, the goals and aims on how the petroleum
resources should be developed, the environmental and social conditions which should be taken
into account and how petroleum activities could contribute to achieving wider political goals.
The fundamental values and principles on which the society is founded, e.g. with regard to the
ownership of natural resources, the regional and social distribution of wealth, the regard for
traditional peoples and industries etc, will also form the basis of an environmental policy. In this,
the environmental principles may also be addressed e. g. polluter pays, precautionary, risk based
Date : 2009-01-21
Page 17
management, ecosystem based integrated management, equitable distribution, best available

techniques and technology, stakeholder and public participation, transparency etc.
Similarly, any international obligations related to agreements and conventions to which the state
may be a party may form a basis for an environmental policy (ref annex 1). The process,
including intergovernmental coordination, stakeholder and public participation etc may be an
important part of developing and adopting a policy.
4.3 Implementing an Environmental management policy

When a government has decided on an environmental policy as part of a wider petroleum policy,
the next step will be to decide what kind of instruments should be used to implement the policy.
Generally speaking, the government would then analyse the situation in the country and decide to
use instruments of legislation (acts and regulations), economic (taxes, levies) and/or other
instruments (information, voluntary agreements etc.) and/or enforcing strategies (monitoring,
control, sanctions etc).
To cope with these tasks, governmental institutions must be capacitated or even established,
either as part of the environmental, or the oil and gas administration (or through a mixture of
shared responsibilities). State oil companies sometimes perform such governmental tasks, posing
special challenges. The staff of these institutions must be trained in order to perform their
functions in a proper way. The relationship and responsibilities of the various
organizations/ministries, such as ministries of energy and ministries of environment, must be
clearly defined.
Each country has developed its individual set of acts and regulations governing the oil and gas
sector. It is important that the environmental legislation also encompasses issues/aspects covering
petroleum activities. This may imply drafting of new environmental legislation or revision of
existing acts and regulations. In addition, it is important that the environmental legislation and the
sector legislation, e.g. petroleum acts, are harmonised and that the sector acts also contains
environmental considerations. The legislation should cover all links of the value chain.
Date : 2009-01-21
Page 18
5 ENVIRONMENTAL TOOLKIT
5.1 Introduction
There are a variety of assessment and management tools that are applied in order to avoid,
minimize and mitigate environmental and social impacts from oil and gas activities. Different
tools are applied in different phases of the oil and gas value chain. At the start of the value chain,
the government will typically apply tools that enable a holistic and ecosystem-based management
of the activities in a specific area to be opened up for exploration. Operators apply tools specific
for dealing with the different environmental issues that arise during exploration, production and
finally during decommissioning.
Figure 5-1 shows the main tools along the oil and gas value chain that are used in Norway. They
are part of Norwegian regulation of oil and gas activities. In the following sections, the tools
shown in Figure 5-1 are briefly described. The purpose is to provide an overview of the toolkit
available to avoid, minimize and mitigate environmental and social impacts. For each tool, the
following is described:
-
purpose of tool
the party responsible for its application (government or operator)
main content or steps
reference to guidelines/ relevant sources
how the tool relates to other tools in the toolkit
Some of the tools are described based on Norwegian approaches, motivated by the overall
purpose of OfD to transfer Norwegian experiences within management of petroleum activities.
For tools without specific Norwegian approaches, descriptions are based on international
guidelines.
Date : 2009-01-21
Page 19
GEOLOGICAL,
RESOURCE,
ENVIRONMENTAL
MAPPING
OPENING OF NEW
EXPLORATION
REGIONS/FIELDS
FIELD/
FACILITY
OPERATION
DEVELOPMENT
STRATEGIC ENVIRONMENTAL IMPACT ASSESSMENT

SENSITIVITY MAPPING
ENVIRONMENTAL RESOURCE DATABASE
LAND USE PLANNING AND COASTAL ZONE MANAGEMENT
ENVIRONMENTAL BASELINE STUDY
SOCIAL IMPACT ASSESSMENT
ENVIRONMENTAL MONITORING
OIL SPILL CONTINGENCY PLANNING
ENVIRONMENTAL MANAGEMENT SYSTEM
ENVIRONMENTAL RISK ASSESSMENT
WASTE MANAGEMENT PLAN
ENVIRONMENTAL IMPACT ASSESSMENT
Exploration license +
discharge permit
Figure 5-1. The tools along the oil and gas value chain.
.
Date : 2009-01-21
Page 20
Operation license +
discharge permit
TRANSPORTATION
REFINING
DECOMMISSIONING
5.2 Strategic Environmental Assessment

Strategic Environmental Assessment (SEA) has been defined as the formalized, systematic, and
comprehensive process of evaluating the environmental effects of a policy, plan, or program and
its alternatives, including the preparation of a written report on the findings of that evaluation,
and using the findings in a publicly accountable decision-making (Thrivel et al., 1992).
The application of SEA World wide extends from project specific environmental impact
assessment (EIA) to policies, programs, and plans. SEA legislation generally falls under
environmental impact assessment (EIA) legislation and extends the use of environmental impact
assessment to programs and plans and, in some cases to policies. The European SEA Directive
(Directive 2001/42/EC), for example, applies to programs and plans and equates SEA with a
formal EIA-based procedure.
The World Bank describes SEA as a participatory approach for upstreaming environmental and
social issues to influence processes for development planning, decision making, and
implementation at the strategic level.
Of relevance to the offshore oil and gas activities in Norway there are two processes that may be
considered SEA:
SEA for opening of new areas to petroleum activity (mandatory process cf. the Petroleum
Activities Act)
Regional SEA/IA for existing and future activities (voluntary process cf. the Petroleum
Activities Act)
5.2.1 SEA for opening of new areas to petroleum activity

Purpose of tool:
Establish a sound decision basis for opening of new offshore areas to petroleum activities.
For offshore oil and gas activities in Norway a SEA is required for opening of new areas under the
Petroleum Activities Act, section 3-1.
Prior to the opening of new areas with a view to granting production licenses, an evaluation shall be
undertaken of the various interests involved in the relevant area. In this evaluation, an assessment shall be
made of the impact of the petroleum activities on trade, industry and the environment, and of possible risks
of pollution, as well as the economic and social effects that may be a result of the petroleum activities.
Responsible: The Government by Ministry of Petroleum and Energy
Date : 2009-01-21
Page 21
Main steps and / or elements:

The Strategic Environmental Assessment is an integrative process and requires the participation of key
stakeholders (local, regional and national). In Norway this is corresponding to that of project specific EIA.
The SEA for opening of new areas in Norway deviate from common World Bank SEA approach (i.e.
common Steps in SEA: Screening, Scoping, Identification, Prediction and Evaluation of Impacts,
Mitigation, Monitoring) as the SEA is subject to decision making and not followed up by mitigation or
monitoring. Such activities are however implemented by other requirements and processes (e.g. EIMP).
Hence the main steps of the Norwegian official SEA process is to perform
Screening; are impacts possible and the SEA process necessary?
Scoping; What are the impacts (issues) to be assessed?
Prediction and evaluation of impacts including possible secondary impacts.
Mitigation measures are intended to avoid, reduce, or offset the adverse effects of an action.
5.2.2 Regional SEA/IA for existing and future activities

Purpose of tool:
The main purpose of the process is to establish a common basis on strategic/generic issues rather than
consider these only on a fragmented field by field scale, and to reduce the magnitude of assessment effort
for future field specific EIAs.
Responsible: Oil industry association (Joint Industry Project)
The second SEA process applied for offshore oil and gas activities in Norway is the Regional EIA. This
process differs from the authority initiated SEA in different ways, e.g.:
It considers present and future activities
It focuses on particular common areas of concern on a strategic or generic level
It establishes a basis for future field specific EIAs.
Similar to that of EIA (see below) but with a regional focus also involving more and more political related
stakeholders than field specific EIAs. Key issues are related to possible impacts on natural resources, the
environment, third parties and the national society.
Guidelines/ relevant sources:

- World Bank
Date : 2009-01-21
Relation to other tools:

- EIA
Page 22
5.2.3 Ecosystem based Integrated Management Planning

The first Ecosystem based Integrated Management Plan was decided by the Norwegian
Parliament in 2005 for the Barents Sea/Lofoten area, following a data collection and assessment
process in the period 2002-2005.
In 2007 the Government initiated a similar process for the Norwegian Sea (to be presented for the
Parliament spring 2009) and in 2008 a pre-process for the North Sea was initiated.
Purpose of tool:
The aim of an Ecosystem based Integrated Management Plan (EIMP) is to establish a holistic and
ecosystem-based management of the activities in a specific area. The purpose of the EIMP is to provide a
framework, where all activities in the area should be managed within a single context, for the sustainable
use of natural resources and goods derived from the area and at the same time maintain the structure,
functioning and productivity of the ecosystems of the area. The EIMP is thus a tool which should be used
both to facilitate value creation and to maintain the high environmental value of the area.
The management of a sea area should be based on ambitious goals set for the desired environmental quality
of the area. These goals are intended to ensure that the state of the environment is maintained where it is
good and is improved where problems have been identified. The achievement of the goals will then be
measured through a coordinated and systematic monitoring of the state of the environment in the sea area.
Should the monitoring detect negative changes in environmental quality, the need for further measures will
be assessed.
(Source: Norwegian Ministry of the Environment)
Responsible: National authorities
EIMP is used for balancing various interests and activities without threatening the ecosystem(s) and their
functions.
Important factors for achieving EIMP include knowledge on baseline data (natural resources and activities
etc.), and dialogue / stakeholder involvement to obtain a common understanding of status of activities,
objectives and means of the EIMP. Main measures to achieve EIMP include:
-
Area-based management, where activities and measures are adjusted to the environmental quality
of the ecosystems.
Protection of the most valuable and vulnerable areas against negative pressures, included oil
pollution.
Reduction of long-range pollution.
Strengthening of the sector/activities management.
Securing control with the development of the state of the environment in the area through a more
coordinated and systematic environmental monitoring.
Strengthening the knowledge base through better surveys and increased research.
Guidelines / relevant sources:

- Norwegian Ministry of the Environment
Date : 2009-01-21

- Can be considered part of a SEA process
Page 23
5.3
Coastal zone management
Purpose of tool:
Integrated Coastal Zone Management (ICZM) is a process of governance and consists of the legal and
institutional framework necessary to ensure that development and management plans for coastal zones are
integrated with environmental (including social) goals and are with the participation of those affected.
The purpose of ICZM is to maximize the benefits provided by the coastal zone and to minimize the conflicts
and harmful effects of activities upon each other, on resources and on the environment. The ICZM takes
into account all of the sector activities that affect the coastal zone and its resources and dealing with
economic and social issues as well as environmental/ecological concerns. The goal is to harmonize these
activities in such a way that all of them are consistent with and support a broader set of overarching national
goals for the coastal zone.
Guidelines for integrated coastal zone management. World Bank
Responsible: National government
Main content and steps:
ICZM focuses on three operational objectives:
1. Strengthening sector management, for instance through training, legislation, and staff
2. Preserving and protecting the productivity and biological diversity of coastal ecosystems, mainly
through prevention of habitat destruction, pollution, and overexploitation.
3. Promoting rational development and sustainable utilization of coastal resources.
A key part of the formulation of an ICZM program is the development of the specific policies and goals that
are to be the central objectives of the ICZM program in question. The means adopted to achieve the selected
goals and policies include
new and strengthened regulatory programs
zonation schemes for partitioning the coastal zone into areas for particular uses and activities
new management programs tailored for particular resources (e.g. coral reefs) or particular sites (e.g.
estuary)
action programs aimed at correcting and/or restoring degraded coastal resources (e.g. damaged
wetlands) and other problems (e.g. coastal erosion)
action programs targeted at stimulating new types of economic development in the coastal zone.
ICZM is a dynamic and continuous process involving the following three steps:
Step 1 Formulation of the plan
Step 2 Program implementation
Step 3 Monitoring, evaluation and enforcement
Guidelines for integrated coastal zone
management. World Bank.
Date : 2009-01-21

Input is needed from Environmental Resource
Database.
Page 24
5.4 Sensitivity mapping

Purpose of tool:
The purpose of conducting Sensitivity mapping is to identify the environmental sensitivity of the area of
interest. The sensitivity of an area should have consequences for the environmental impact management
process.
Responsible: Operator
Main steps:
Collect environmental data relevant to the project scope. Data can be collected from already existing
databases or new data has to be sampled through e.g. field surveys. This is dependent on the quality and/ or
level of data that are available.
Evaluate the data to identify the sensitivity of the area, e.g. through a categorisation process.
Environmental sensitivity indicators can be (BP 2007)
1. Areas within or potentially affecting officially designated protected area(s) or potentially affecting
areas proposed for protected status.
2. Areas representing intact, unique, or rare ecosystems, and/or areas representing unique
environments such as the last or most important examples of habitat types. This may include
outstanding physical, biological, and geological formations; habitats of threatened species of
animals and plants; areas with scientific, conservation, or aesthetic value; and pristine
environments
3. The presence of protected/endangered species as defined in the World Conservation Union (IUCN)
Red List (critically endangered, endangered, vulnerable); the US Endangered Species Act of 1973
(endangered, threatened); or other recognised international/national legislation, treaties,
conventions, or documents.
4. Fragile environments (e.g. permafrost, tundra, forests, pantano, true deserts, fragile soils);
ecosystems (e.g. mangroves, shallow and deep-water corals, saltwater and freshwater wetlands, sea
grass beds etc.); and critical watersheds where construction or operational incidents could result in
irreparable damage.
5. Areas of significant biodiversity value.
6. Areas where there is likely to be significant public concern or outrage (e.g. wilderness, the
presence of charismatic wildlife species, perceptions of project risk)
7. Areas with subsistence cultures dependent on limited resources and where poor environmental performance
could affect their livelihoods or traditional way of life.
8.
Sites of significant cultural property including monuments, groups of buildings, natural sites and
properties with historical, aesthetic, archaeological, scientific, ethnological, or anthropological
value.
9. Areas with a legacy of poor environmental performance by external investors (particularly
extractive industries).
10. Significant potential of cumulative or secondary environmental impacts due to planned operations.
11. Areas where operations could have significant impact on essential ecosystem services or where
resource use could create a conflict with other community users.
12. Other locally identified indicators

Environmental requirements for new projects (BP
2007)
Date : 2009-01-21

Provides input to
- Strategic Environmental Impact Assessment
- Environmental resource database
- Oil Spill Contingency Planning
- Environmental Risk Assessment
- Environmental Impact Assessment
Page 25
5.5 Environmental Resource Database

Purpose of tool:
Store information on environmental data, e.g. flora, fauna, protected areas, monitoring data etc, in a
consistent manner.
Secure access to environmental resource data preferably through easy search and display functions.
Give operators and authorities a uniform knowledge platform on environmental resources.
Information on distribution of environmental resources is important input into several of the tools in the oil
and gas value chain.
Responsible: Operator(s) and/or authorities
Main steps:
Environmental databases are efficient tools to be used in all phases of the oil and gas value chain, and at
several levels.
When planning for and operating an oil and gas activity, environmental resource data is needed on a local,
regional, national and sometimes trans national level, e.g. information on protected areas, sensitive habitats,
fisheries, wildlife and coastline. This type of environmental data may be stored in national or international
databases like the Norwegian Naturbase, international databases like World Database on Protected Areas
(WDPA) or trans national initiatives like Global Monitoring for Environment and Security (GMES).
Databases with national environmental resource data are most commonly the reasonability of the authorities
in each country. If environmental resource data is not available, there may be necessary to initiate large
scale monitoring programs (e.g. Seapop and mareano) or collect data more locally. New data collected by
operators should always be transferred to a relevant database. Activity specific databases should always be
considered if national or regional databases are not available or covering the necessary environmental
aspects. Activity specific databases are the operators responsibility.
Common and specific needs for environmental resource data shared by operators and authorities in a region,
may justify the development of specific databases. The Norwegian Marine Resource Database (MRDB) is
such a database, covering all relevant information for specific tools in the oil and gas value chain. MRDB is
financed and managed by operators and authorities in collaboration. MRDB covers publicly available
information on coastal and marine resources vulnerable to oil pollution, for use in environmental impact
analysis, environmental risk analyses, oil-spill response planning and emergency response operations.
Another example of a database developed to suit the needs of the oil and gas industry is the Norwegian
Environmental Monitoring Database (MOD) which contains the results of sediment monitoring studies on
the Norwegian shelf. The database is financed and managed by the Norwegian Oil Industry Association
(OLF).
The following activities are important in the administration of an environmental database:
Collect new data or up-date existing data from all relevant sources
Store data in consistent manner in functional software for easy search and display of information.
Provide access to the database for all relevant parties
Naturbase; dnweb12.dirnat.no/nbinnsyn/
WDPA; http://www.wdpa.org/
GMES; http://www.gmes.info/index.php?id=home
SEAPOP; www.seapop.no/
MAREANO; www.mareano.no/
MRDB; www.mrdb.no
MOD; projects.dnv.com/MOD
Data harmonisation;
http://inspire.jrc.ec.europa.eu/index.cfm
http://www.statkart.no/Norge_digitalt/Engelsk/
About_Norway_Digital/
Date : 2009-01-21

Provides input to
- Sensitivity mapping
- Oil Spill Contingency Planning
Page 26
5.6 Environmental Management System

Purpose of tool:
An Environmental Management System (EMS) is part of an organisations management system used to
develop and implement its environmental policy and manage its environmental aspects.
ISO 14001
In ISO 14001, environment is defined as surroundings (extending from within an organisation to the global
system) in which an organisation operates, including air, land, fauna, humans, water, flora, natural resources
and their interrelation.
The purpose of an EMS is continuous improvement of environmental performance. E & P Forum has
developed guidelines to assist in the development and application of an EMS in E&P. This model is
compatible with the requirements of the ISO 14000 series. Unlike ISO 14001, it also addresses occupational
health and safety.
Main elements:
E & P Forum has developed guidelines to assist in the development and application of an EMS in E&P.
This model is compatible with the requirements of the ISO 14000 series. Unlike ISO 14001, it also
addresses occupational health and safety. Main elements are:
Leadership and commitment
Top-down commitment and company culture, essential to the success of the system.
Policy and strategic objectives
Corporate intentions, principles of action and aspirations with respect to health, safety and
environment.
Organisation, resources and documentation
Organisation of people, resources and documentation for sound HSE performance.
Evaluation and risk management
Identification and evaluation of HSE risks, for activities, products and services, and development
of risk reduction measures.
Planning
Planning the conduct of work activities, including planning for changes and emergency response.
Implementation and monitoring
Performance and monitoring of activities, and how corrective action is to be taken when necessary.
Auditing and reviewing
Periodic assessments of system performance, effectiveness and fundamental suitability.
- ISO 14001
- E&P Forums Guidelines for the Development
and Application of Health, Safety and
Environmental Management Systems
Date : 2009-01-21

Incorporates
- Waste management plan
- Environmental monitoring
Page 27
5.7 Waste management Plan

Purpose of tool:
A waste management plan directly relates to the choice of waste handling and disposal options to the
ecological sensitivities, regulatory requirements and available facilities/infrastructure of the geographical
area involved. The plan should be written from the field perspective and provide guidance for handling
each waste stream.
The objective of a waste management plan is to minimize the potential of wastes to cause harm to health
and the environment. Responsible waste management may be accomplished through the hierarchical
application of source reduction, reuse, recycling, recovery, treatment and responsible disposal.
(E&P Forum, 1993)
Main steps:
Step 1 Obtain management approval & commitment
Step 2: Goal and Area definition. Establish the goal of the plan with measurable objectives for each goal.
Define the geographical area and operational activities to be addressed.
Step 3: Waste identification. Identify and briefly describe all wastes generated.
Step 4: Regulatory analysis. Review international, regional and national laws and regulations to determine
the types of wastes for which management practises should be highlighted. Waste types for which the
regulations do not adequately define management requirements should also be identified.
Step 5: Waste categorization. Identify the physical, chemical and toxicological properties of each waste via
Material Safety Data Sheets (MSDS) or other sources like manufacturer, lab analyses, etc. Wastes can be
grouped according to their health and environmental hazards.
Step 6: Evaluation of waste management and disposal options. Identify and compile waste management
options for each waste. Evaluation of options should include: environmental considerations, location,
engineering limitations, regulatory restrictions, operating feasibility, economics, potential long-term
liability, etc.
Step 7: Waste minimization. Evaluate options to minimize volume of waste, reduction of toxicity, recycling
and reclaiming, or treatment.
Step 8: Selection of preferred waste management practise(s). Select the best practice for the specific
operation and location. Life-cycle analysis including use, storage, treatment, transport and disposal should
be considered.
Step 9: Implementation of an area waste management plan. Compile waste management and disposal
options for each waste into one comprehensive waste management plan.
Step 10: Plan review and update. Review and update the waste management plan whenever new waste
management practises or options are identified.
E& P Forum, 1993
- E&P Forum Waste Management Guidelines
- OGP Guidelines for waste management with special focus on areas with
limited infrastructure
- Recommended Guidelines for Waste Management in the Offshore Industry
(OLF guideline No 093, 2004)
Date : 2009-01-21
Page 28
Relation to other
tools:
Part of Environmental
Management System
5.8 Environmental Risk Assessment

Purpose of tool:
Environmental Risk Assessment (ERA) of accidental oil discharges is a tool to identify the main hazards for
accidental oil discharges and its potential environmental impacts in order to manage and mitigate the
environmental risk.
Responsible: Authority / Operator
Main steps:
Step 1: Scoping
Scoping defines what activity the assessment shall cover and what environmental impact that shall be
analysed as the risk indicator.
Step 2: Hazard identification
Hazard identification is the process of identifying events (e.g. accidental oil discharges) which unless
controlled or mitigated, could result in environmental damage. In ERA hazard identification is often carried
out in a separate technical risk assessment TRA, but it can also be an integrated part of the ERA. The hazard
identification shall give the probability/frequency of an event and the severity of the event (amount of oil
discharged or spill rate and duration).
Step 3: Modelling of oil dispersion
The fate and transport of oil in the environment is modelled. Most often a probabilistic model is applied that
gives the probability of oil pollution in specific areas. The model shall make a mass balance of the oil, for
oil at sea this shall be the amount of oil evaporated, dispersed, degraded, beached and remaining at sea
surface.
Step 4: Interaction between oil pollution and sensitive environmental resources
The presence of sensitive environmental resources within the area that may be polluted must be identified
(see sensitivity mapping). The interaction between the sensitive resources and oil pollution must be analysed
to give the probability of polluting the sensitive resources.
Step 5: Assessing environmental impact
The environmental impact is assessed based on the amount of oil polluting sensitive resources, the
sensitivity of the resources to oil pollution and its potential to recover from a pollution. The impact can for
instance be expressed as recovery time for a specific population or habitat.
Step 6: Assessing the risk
The probability / frequency of an environmental impact shall be evaluated against established risk
acceptance criteria.

The MIRA method, a Norwegian industry standard
for ERA for accidental oil spill;
http://www.olf.no/miljoerapporter/metode-formiljoerettet-risikoanalyse-mira-revisjon-2007article1955-247.html (in Norwegian only)
European Environment Agency: Environmental
Risk Assessment - Approaches, Experiences and
Information Sources
http://reports.eea.europa.eu/GH-07-97-595-ENC2/en/sect1in.html
SINTEF Offshore Blowout Database:
http://www.sintef.no/Home/Technology-andSociety-2009/Safety-Research/Projects/SINTEFOffshore-Blowout-Database/
Date : 2009-01-21

- Environmental Resource Database
- Environmental Sensitivity Mapping
- Oil spill contingency planning
Page 29
5.9 Oil Spill Contingency Planning

Purpose of tool:
Oil spill contingency planning is necessary in order ensure prompt response to avoid or minimise the
impact of an oil spill. Oil spills can have a significant impact on ecosystems, amenities and livelihoods
(www.ipieca.org).
To ensure a holistic management of oil spills the oil spill contingency planning should be based on
integration of offshore, near-coast, and shoreline oil spill management and a process involving analysis,
planning and incident follow-up.
Responsible:
To ensure a holistic and systematic approach to oil spill contingency the collaboration between public and
private contingency is important. The Norwegian approach implies interaction between private, municipal
and public parties where responsibilities, roles and tasks are regulated by law. Primarily private actors hold
the responsibility for the oil spill contingency.
In situations where the polluter is not capable of handling the spill himself the public and the municipalities
can be used. As an example, the organisation of oil spill contingency relating to offshore oil & gas activities
on the Norwegian Continental shelf is based on the operator holding responsibility for the spill, and the use
of common technical resources through the Norwegian Clean Seas Organisation for Operating Companies
(NOFO) and their agreements with Regional Pollution Combat Groups (IUAs). These groups organize
response on a municipality level, involving harbour authorities and resources from local fire brigades.
Response to oil spills from ships in Norwegian waters are the responsibility of the Norwegian Coastal
Administration (NCA). In the response operation, NCA may draw their own resources, located at a number
of depots along the coast, on dedicated NCA vessels and Coast Guard vessels. In addition, NCA may
mobilize privately owned resources (including NOFO resources). In the subsequent cleanup operation, NCA
cooperates with the IUAs. NCA has the overall responsibility for the entire operation in strategic, tactical
and economical terms and holds the position of the Operation Coordinator and the Shoreline Environmental
Task Force. IUAs have the practical and technical responsibility for cleanup operations within their area,
and provide On-scene Commanders, Group Leaders and the shoreline cleanup work forces (Paper IOSC,
Savannah 2008)
The Norwegian Coastal Administration (NCA) has been delegated the responsibility for inspection of
private and municipalities actions related to acute pollution (e.g. oil spill). Private actors and the
municipalities have legal duty to contribute in public actions.
Date : 2009-01-21
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Main steps:
Step 1:
The first step in the establishment of an integrated plan for oil spill preparedness is to identify scenarios that
would form the basis for dimensioning of the spill response capacity. Capacity requirements are generally
provided by a detailed oil spill contingency analysis (OSCA) carried out in conjunction with an
environmental risk assessment (ERA) for specific activities and operations.
Step 2:
Having defined the dimensioning scenarios the fate of the oil spill should be modelled in order to estimate
the extent of the spill and provide necessary input to the ERA and OSCA.
Step 3:
The OSCA is carried out in order to identify the required extent of the oil spill contingency measures with
regards to system capacity, response time, types of equipment, monitoring and other specific aspects related
to the activity of interest. The OSCA will give important input to ERA related to consequence reducing
measures.
The OSCA concludes on a recommended solution which will be an input to further planning of the oil spill
contingency.
Step 4:
Following the OSCA and ERA an oil spill contingency plan should be developed. The plan should clearly
identify the actions necessary in case of a spill such as (E&P Forum/UNEP 1997):
- organization structure,
- response strategies,
- individual responsibilities of key personnel,
- training and exercise requirements,
- communications network and
- procedures for reporting to authorities.
The plan should clearly identify:
- vulnerable and sensitive locations,
- equipment needed for combating the oil spill and its availability,
- handling and disposal of recovered material (contaminated waste and debris) and
- provide data directory and supporting information
IPIECA has several relevant studies and guidelines, among
others:
- IPIECA Guide to Tiered Preparedness and Response Volume 14
- A Guide to Contingency Planning for Oil Spills on
Water - Volume 2
- A Guide to Oiled Wildlife Response Planning Volume 13
- Guidelines for Oil Spill Waste Minimisation and
Management - Volume 12
See more on:
http://www.ipieca.org/activities/oilspill/oil_publications.p
hp#21
OLF/NOFO has developed a guideline for OSCA: Veileder for miljrettet beredskapsanalyse (in Norwegian
only)
Date : 2009-01-21
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The tool is based on input from:
- Environmental Resource Database
5.10 Environmental Baseline Study and Environmental Monitoring

Purpose of tool:
Environmental monitoring provides information about key environmental aspects of the project, based on
potential impacts identified in the Environmental Assessment. The Environmental Monitoring Plan
identifies monitoring objectives and specifies the type of monitoring to be carried out in order to reveal any
impacts on the local environment. The outcome of the monitoring activities are used to evaluate the
effectiveness or need of mitigation measures.
A Baseline Study must be conducted prior to any project activities. This forms the basis of comparison to
identify any changes/impacts after the activities have commenced.
Main steps:
Step 1: Assessment of the dimensions of the study area and description of relevant physical,
biological, and socioeconomic conditions, including any changes anticipated before the project commences.
Step 2: Collection of existing Baseline data, identify need for baseline surveys ; keywords:
Physical environment: geology; topography; soils; climate and meteorology; ambient air quality;
surface and ground-water hydrology; coastal and oceanic parameters; existing sources of air
emissions; existing water pollution discharges; and receiving water quality.
Biological environment: flora; fauna; rare or endangered species; sensitive habitats, including parks
or preserves, significant natural sites, etc.; species of commercial importance; and species with
potential to become nuisances, vectors or dangerous.
Socio-cultural environment (include both present and projected where appropriate): population;
land use; planned development activities; community structure; employment; distribution of
income, goods and services; recreation; public health; cultural properties; tribal peoples; and
customs, aspirations and attitudes.
Step 3: Conduct Baseline surveys prior to project development and implementation.
Step 4: Assemble and evaluate baseline data and prepare an Environmental Monitoring Plan identifying the
objectives of the monitoring activities. The plan should include how, who, when, detection limits, threshold
values that will trigger corrective actions, reporting procedures (e.g. ensure early detection of conditions that
necessitate particular mitigation measures), budget and other necessary inputs (e.g., training) to monitor the
impacts of the project during all project phases (construction/ operation/ decommissioning/ postdecommissioning) as well as implementation of mitigating measures.
Step 5: Implementation of Monitoring Plan.
Step 6: Evaluate monitoring data according to Monitoring Plan. Implement corrective actions and/ or
mitigation measures. Review and update Monitoring Plan regularly through all project phases until postdecommissioning.
Step 8: Implementation of an area waste management plan. Compile waste management and disposal
options for each waste into one comprehensive waste management plan.
Environmental Assessment Sourcebook, World
Provides
input to
Step 9: Plan review and update. Review and update the waste
management
plan whenever new waste
Bank / EA Sourcebook Update no. 14:
- Social Impact Assessment
management practises or options are identified.
Environmental Performance Monitoring and
Supervision.
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5.11 Environmental Impact Assessment

Purpose of tool:
Environmental impact assessment (EIA) is a process of identifying, screening, 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.
Main purpose of EIA is to establish a sound basis for decision making based on objective assessment of
positive and negative impacts of a specific project (normally field development and operation) and its
alternatives.
Responsible: Licensee/Operator
Scoping:
1. Establish a proposal for EIA program (scoping document) describing briefly the project plans,
possible areas of concern/impacts and present an overview of issues, scope and magnitude of
impact assessment to be performed.
2. Stakeholder consultation: Proposal for EIA program is circulated to all relevant stakeholders
(authorities and NGOs) for comments.
3. The received comments are evaluated and will together with the proposed program form the
formally set EIA program.
EIA process: The EIA is an integral part of the development project ensuring that environmental issues are
properly considered and documented. This also includes assessment of relevant alternatives (development
options, energy production solutions etc.).
EIA reporting: Summarises the process and main findings of the EIA process. The EIA report normally
include e.g.:
Project description
Legislation review
Baseline data evaluation/description
Impact identification and prediction (environmental aspects, natural resources, third parties,
society)
Impact significance evaluation (focus on key issues)
Mitigation measures/abatement options
Alternative options assessment
Environmental management planning
Environmental monitoring planning
Oil spill contingency
The EIA report is issued for stakeholder consultation to ensure that the contents of the formally set EIA
program are fulfilled.
Guidelines/relevant sources:
- MPE/NPD PDO/PIO guidelines (2000- currently
being revised)
Date : 2009-01-21
Relation to other tool:

SEA regional EIA approach
Page 33
5.12 Social Impact Assessment

Purpose of tool:
Social Impact Assessment (SIA) includes the process of analysing, monitoring and managing the intended
and unintended social consequences, both positive and negative, of planned interventions (policies,
programs, plans, projects) and any social change processes invoked by those interventions. Its primary
purpose is to bring about a more sustainable and equitable biophysical and human environment.
(IAIA, SIA International Principles, May 2003)
The objective of SIA is to ensure that development maximises its benefits and minimises its costs,
especially those costs borne by people (including those in other places and in the future). Costs and benefits
may not be measurable or quantifiable and are often not adequately taken into account by decision-makers,
regulatory authorities and developers. Benefits of a proactive rather than reactive approach:
1) Better decisions can be made about which interventions should proceed and how they should
proceed
2) Mitigation measures can be implemented to minimise the harm and maximise the benefits from a
specific planned intervention or related activity

SIA is best understood as an umbrella or overarching framework that embodies the evaluation of all impacts
on humans and on all the ways in which people and communities interact with their socio-cultural,
economic and biophysical surroundings.
Depending on the context in question, the SIA may include (but not be limited to) the following specialist
sub-fields:
- aesthetic impacts (landscape analysis)
- archaeological and cultural heritage impacts (both tangible and non-tangible)
- community impacts
- cultural impacts
- demographic impacts
- development impacts
- economic and fiscal impacts
- gender impacts
- health and mental health impacts
- impacts on indigenous rights
- infrastructural impacts
- institutional impacts
- leisure and tourism impacts
- political impacts (human rights, governance, democratisation etc)
- poverty
- psychological impacts
- resource issues (access and ownership of resources)
- impacts on social and human capital
- International Association for Impact Assessment
(IAIA): SIA International Principles
Date : 2009-01-21

SIA is sometimes incorporated into a more
comprehensive Environmental Impact Assessment
(referred to as ESIAs). For projects with extensive social
impacts a separate SIA should be conducted.
Page 34
6 A GUIDE TO ASSESS THE ENVIRONMENTAL SENSITIVITY OF A

PETROLEUM DEVELOPMENT PROJECT
6.1 Introduction
Geographical areas to be developed for oil and gas extraction may have ecological, social and
cultural sensitivities that warrant special considerations. Presence of protected/endangered
species and areas of cultural importance and subsistence indigenous populations are examples of
sensitivities that warrant special considerations.
Using this guide, participants in OfD can assess the environmental sensitivity of a proposed
petroleum development project in a specific geographical area.
The guide does not replace any of the tools in the toolkit (chapter 4), rather it can be seen as an
early assessment tool that can be applied before other tools are put to use, increasing the
understanding of the level of precaution needed in subsequent decision making processes. The
higher the environmental sensitivity, the more precaution must be taken by both government and
operator. The outcome of the assessment can provide input to Environmental Impact Assessments
and other tools that may be applied later in the process.
This guide for assessment of environmental sensitivity is based on BP Group Practice
Environmental Requirements for new projects.
6.2 How can environmental sensitivity be categorised?

Environmental sensitivity can be categorised as high, medium and low using the definitions
shown in Table 6-1.
Table 6-1 Categorisation of environmental sensitivity- high, medium and low.
Environmental Sensitivity
Categorisation
High sensitivity
Projects with the potential, using a precautionary principle, to have chronic

or irreversible adverse impacts on environments
Medium sensitivity
Projects whose potential adverse impacts on the environment are generally

localised, reversible, and in most cases, where mitigation measures can be
designed more readily than for projects of high sensitivity.
Low sensitivity
Projects likely to have minimal or no adverse environmental impacts. For

example: where there is significant precedence and prior experience, and
where the environmental risks are low and manageable.
Source: BP
Categorisation of environmental sensitivity is done in three steps:

1. Assess environmental value
2. Assess project footprint
3. Assess environmental sensitivity based on step 1 and 2
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Step 1 Assess environmental value

Assess environmental value qualitatively, considering issues shown in Table 6-2.
Table 6-2 Assessing the environmental value
Issues
Scale
Uniqueness
Low-High
(of habitat or ecosystem)

Biodiversity value
Low-High
Ecosystem value and use
Low-High
Ecosystem capacity
Low-High
(capacity or fragility to damage)

Stakeholders concern
Low-High
The assessment is conducted against a set of environmental sensitivity indicators (indicators are
given in chapter 5.4). The indicators can be used to help identify key issues that might result in an
areas being defined as environmentally sensitive. The precautionary principle is applied where
there is incomplete knowledge.
Step 2 Assess Project Footprint
Assess project footprint qualitatively, considering issues shown in Table 6-3.
Table 6-3 Assessing the project footprint
Issues
Scale
Spatial extent
Small-Large
(to which biodiversity, ecosystems or habitats may

be impacted)
Knowledge
Low-High
(knowledge and understanding of the issues)

Timescale of impact
Short-Long
(temporal impact of the consequences and time

/potential for rehabilitation)
Precedence
Precedent- No precedent
(novel/familiar engineering solutions)

Complexity of project
Easy-Difficult
Step 3 Assess environmental sensitivity

Assess the environmental sensitivity using Figure 6-1. In Figure 6-1, environmental sensitivity is
a function of environmental value (step 1) and project footprint (step 2).
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Figure 6-1 Environmental sensitivity (low, medium and high) presented against
Environmental Value (y-axis) and Project Footprint (x-axis).. Category A = High
sensitivity. Category B = Medium sensitivity. Category C = Low sensitivity. Source: BP,
2007
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7 GUIDANCE ON CLIMATE CONSIDERATIONS WITHIN OFD

7.1 Introduction
OfD will provide guidance to cooperating countries on how to include climate considerations in
the development of petroleum resources. The purpose of providing guidance on climate
consideration is to enable national authorities in the cooperating countries to introduce those
policy instruments and measures that will stimulate the most cost-effective solutions for reducing
emissions of greenhouse gases.
This section provides an overview of the guidance that OfD will provide, focusing on four topics
(OfD, 2008):
1. Mitigating measures
2. Policy instruments
3. Clean Development Mechanism
4. Adaptation measures
7.2 Mitigating measures

The largest sources of emissions of greenhouse gases from oil and gas production activities are
flue gases from energy plants and flares, emissions of natural gas from cold venting and diffuse
leakages. Guidance will be offered on how countries can undertake an overall analysis of
measures for reducing greenhouse gas emissions and, where appropriate, assistance in
implementing and estimating the costs of such measures. Emphasis should be placed on measures
that have a positive impact on the environment and development beyond that of reducing
greenhouse gas emissions. Technical mitigation measures for the petroleum sector can be roughly
divided into three categories:
Energy efficiency
Reduction of direct emissions from flares and cold venting, and
Carbon capture and storage
7.3 Policy measures

Authorities may choose to adopt different policy instruments for reducing greenhouse gas
emissions. The chosen instruments should, however, be adapted in such a way as to achieve
the desired objectives and to be administratively possible to follow up. In addition to the
desired reductions in greenhouse gas emissions and environmental impact, it is also important
to highlight socio-economic profitability and budgetary implications when determining which
instruments to adopt. The potential revenues which national authorities can earn from
environmental taxes or the sale of quotas will be particularly significant in developing
countries. The instruments that are chosen by a countrys authorities should be established by
law. National authorities in many OfD countries have poor levels of expertise and therefore
little authority in issues linked to the regulation of petroleum activities, including that of
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regulating environmental and climate measures. The building of expertise and institutions is
therefore absolutely decisive.
OfD will provide assistance in both developing policy instruments and building the
necessary institutions, so that environmental regulation and good climate measures can be
implemented and enforced as an integrated part of petroleum activities.
National authorities in the recipient countries should be encouraged to adopt an
international level of climate policy instruments in order to avoid exploitation of weak
environmental legislation by operators.
OfD will offer education on the significance and implementation of integrated impact
assessments and analyses. It is important to highlight the socio-economic and budgetary
impacts when determining which instruments should be adopted.
7.4 Clean Development Mechanism

The Clean Development Mechanism (CDM) under the Kyoto Protocol, and measures within the
petroleum sector represent an area which demands particular expertise and one in which the
amount of effort required in the years to come can prove to be considerable. The CDM is
therefore within the scope of the OfD initiative.
OfD will provide basic information on the CDM, with an emphasis on capacity building
and project development.
Should a cooperating country request more detailed training, technical or economical
support in development of specific CDM projects, the country should be referred to the
relevant specialist communities, institutions or Norad support schemes.
Where appropriate, OfD will facilitate contact between project developers and the
Ministry of Finance, which purchases CO2 emission quotas under the CDM.
7.5 Adaptation measures

Climate change can result in natural resources becoming more vulnerable to adverse impacts. An
example of this is where water deposits in arid areas may be more vulnerable to pollution or
water harvesting than indicated by a current assessment. Climate changes may also increase the
risk of injury to humans and of environmental and material damage when, for example, extreme
wind conditions destroy petroleum installations or infrastructure. The estimated climate changes
in the region in question should therefore be included in impact assessments and risk analyses
before petroleum activities are developed.
The OfD initiative will contribute to raising national authorities' awareness about these
issues, not least in respect of assessing the need for a regulatory framework, etc. OfD will
provide general information about the possible impacts of climate change and the
necessary adaptations related to petroleum activities.
Should a countrys authorities request assistance with more detailed analyses and
technical support relating to the possible impacts of and adaptations to climate changes,
the OfD initiative should refer them to the relevant specialist communities for more
specialised training.
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8 ENSURING SUSTAINABLE LOCAL AND REGIONAL

DEVELOPMENT
8.1 The need for a holistic approach
Sustainable development is a concept that refers to development where emphasis is shifted from
short term economic gains to a more long term approach where there is balance between
economic, social and environmental considerations. The most widely quoted definition of
sustainable development is that outlined in the United Nations World Commission on
Environment and Development (WCED) report Our Common Future (1987), also known as the
Bruntland Report:
Def Sustainable Development:
"development that meets the needs of the present without compromising the ability of future
generations to meet their own needs."
The definition encompasses both how considerations must be given to interrelationships and
integration of competing needs, as well as the long term intra-generational perspective. Inherent
in this lays the assumption that the national and/or regional policy context must take into account
cross-sectoral issues in an integrated resources management approach.
Oil and gas exploration brings opportunities for great economic gains. However, multiple
examples show that if inadequately administered, these economic gains are often dispersed in an
uneven and unsustainable manner, providing short term gains to a selected few (and often
foreign) benefactors at the sacrifice of local and regional economic growth and improved social
conditions. To exploit the full development potential stemming from oil and gas exploration, the
breadth of potential socioeconomic impact areas must be appreciated and included in the wider
resource management schemes.
A distinction should be made between the different forms of socioeconomic impact. Direct
impacts typically include local job opportunities and boost in local services. Changes in the
biophysical environment may however also cause significant indirect impacts, one notable and
often seen example being the need for resettlement of current inhabitants in the relevant
extraction areas. Failing to include both direct and indirect impacts in the overall resource
management plan may both represent a lost opportunity for positive local and regional
development but also, more gravely, lead to a deterioration of current conditions. If, in addition to
this, the environmental aspects of the oil and gas exploration are neglected, the net impact on
local communities may in fact be negative. There are numerous examples of environmental
neglect in petroleum production causing unfortunate spin-off effects on other local industries
such as tourism, fishery or agriculture (see section 8.2).
To ensure full exploitation of the long term socioeconomic scope of oil and gas exploration, it is
therefore essential to apply a holistic approach to resource management, capturing both
immediate local and wider regional concerns. Rather than a piecemeal approach, an integrated
approach to decision-making is required, linking the economy, the environment, and society.
Development of this type requires a process of interaction between public authorities, civil
society, and the private sector.
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8.2 Economic implications of environmental concerns in the case of oil and

gas exploration
The potential environmental issues accompanying petroleum production are numerous. Many of
the commonly experienced problems are most notably seen in natural resource rich developing
countries with rapid economic growth. And, whilst economic growth should in theory enable
countries to better deal with their environmental problems, there are abundant examples of failure
or a scarcity of success in dealing with these challenges. Environmental problems are often of a
refractory and poorly understood nature, resulting in either failure to deal with them altogether, or
to interventions that tend to treat the symptoms rather than the underlying root causes, with
consequent failure.
Alongside issues of intrinsic value and preserving local nature and wildlife, there is also an
economic rationale for investing into environmental protection. Generally speaking,
environmental degradation stemming from petroleum production has two main economic
implications:
Significant clean-up costs in the case of accidents (e.g. spills or leakages)
Serious negative ripple effects on other local / regional industries
World-wide there are numerous examples of how environmental degradation stemming from
petroleum production has spurred significant costs and negatively affected other industries. A
classical example is offshore oil-spills damaging local fisheries and / or tourism due to lack of
sufficient preparedness schemes. Accidents of environmental degradation often have widespread
geographic consequences.
Failing to preventively identify, analyse and plan for potential environmental problems stemming
from oil and gas exploration activities can have serious implications. The cost of proactively
installing preventive measures is likely to be minimal compared to the potential economic
implications of dealing with the consequences of various forms of environmental degradation,
particularly so when including also the many indirect negative effects.
Date : 2009-01-21
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Illustrative examples:
When the oil tanker Erika broke in two parts and went down in the Bay of Biscay on 12
December 1999, the oil spill spread along a 400 kilometre coastline in France and
Northern Spain. Norway, along with other European countries, took part in the rescue and
clean-up after the accident; however the immediate negative impacts on aquatic
biodiversity, birdlife and popular tourist sites along the affected coastline were
substantial.
During the war between Israel and Lebanon in July 2006, the bombing of the power
station of Jiyeh led to a large quantity of fuel oil being spilled into the sea and polluting
the Lebanese coast. Clean-up operations had to be carried out at sea, in the coastal zone
and on the shores. Norway contributed with equipment and expertise immediately after
the incident, and has since considered financial support to the clean-up operations and
treatment of the hazardous waste generated from the incident.
In Uganda, oil has been discovered in one of the most valuable areas of the country which
also constitutes the most attractive area for nature-based tourism. Here, the potential
benefits of petroleum production had to be weighted against the overall economic scope
for the tourist industry, hereunder considering the zero-option alternative.
8.3 Elements of successful sustainable development

To ensure successful local and regional development in the wake of new petroleum production, a
holistic long-term approach should underpin the development of resource management schemes.
Good governance at both national and international level is a central sustainable development
prerequisite. At the domestic level, sound environmental, social and economic policies, together
with democratic institutions responsive to the needs of people, the rule of law, anticorruption
measures and an enabling environment for investment are essential underlying factors for a
sustainable development.
8.3.1 Transparency
Transparency can be defined as a principle that allows those affected by administrative decisions,
business transactions or charitable work to know not only the basic facts and figures but also the
mechanisms and processes. The definition implies a duty on civil servants, private sector
managers and civil society trustees to act visibly, predictably and understandably. Corruption, the
misuse of entrusted power for private gain, is the main hamper to transparent and efficient
processes. In later years, the issue of corruption has been addressed widely both within public and
private sectors worldwide, and there is a growing notion of zero-tolerance in this respect.
The cost of corruption is said to be four-fold:
On the political front, corruption constitutes a major obstacle to democracy and the rule of
law, particularly so in newly emerging democracies. In a democratic system, offices and
institutions lose their legitimacy when they are misused for private advantage.
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Economically, corruption leads to the depletion of national wealth when it causes

funnelling of scarce public resources into uneconomic profile projects at the expense of
more necessary infrastructure projects such as hospitals and roads. Furthermore, it hinders
the development of fair market structures and distorts competition, thereby deterring
investment.
Socially, corruption undermines people's trust in the political system, in its institutions
and its leadership, resulting in a weak civil society. That in turn clears the way for
irresponsible management where bribes and personal agendas flourish.
Environmental degradation is another consequence of corrupt systems, typically
stemming from a lack (or non-enforcement) of environmental regulations and legislation.
In many cases careless exploitation of natural resources by both domestic and
international agents has led to ravaged natural environments. Environmentally unsound
projects are given preference in funding, because they are easy targets for channelling
public money into private pockets.
In several cases, unsustainable petroleum production projects (e.g. pipelines and refineries) have
marked unfortunate examples of uneconomic profile schemes launched at the expense of more
necessary local needs.
(Source: Transparency International)
The Extractive Industries Transparency Initiative (EITI) supports improved governance in
resource-rich countries through the verification and full publication of company payments and
government revenues from oil, gas and mining. The EITI is a globally developed standard that
promotes revenue transparency at the local level, by requiring companies to publish what they
pay for and governments to disclose what they receive. The EITI is a coalition of governments,
companies, civil society groups, investors and international organizations. The initiative has a
robust yet flexible methodology that ensures a global standard is maintained throughout the
different implementing countries. Whilst an EITI Board and international Secretariat are the
guardians of the EITI methodology, implementation itself is the responsibility of individual
countries.
Government of Norway hosting the EITI International Secretariat

Since the outset of the initiative in 2007, the EITI International Secretariat has been based in Oslo.
Officially opened in September 2007 and hosted by the Government of Norway, the Secretariat is an
independent body solely accountable to the EITI Board.
The Secretariat is responsible for turning policy decisions of the EITI Board into action, and for
coordinating worldwide efforts in implementing the EITI. Its role specifically includes: outreach and
advocacy, communicating and sharing lessons learned with stakeholders, managing a resource centre on
revenue management and transparency, and oversight of the Validation process.
An important role of the Secretariat is to support implementation. Although implementation is the
responsibility of local EITI stakeholders, the Secretariat aims at ensuring coordination between supporting
countries and assistance providers such as the World Bank. The Secretariat closely follows in-country
implementation and findings of Validation processes to guide and inform the national EITI processes.
Norway actively supports the EITI, and encourages all OfD-countries to implement the initiative.
Date : 2009-01-21
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Reference Sources:
Transparency International
www.transparency.org
Offers various tools on anti-corruption work.
Extractive Industries Transparency Initiative (EITI)

www.eitransparency.org
8.3.2 Stakeholder dialogue

To optimise the sustainable development scope from petroleum production activities, a
cooperative process between the different sectors involved should be promoted, where both
Government, operators and civil society (including community) interests are formally
represented. To enhance transparency and endorsement of overall resource management
strategies, all affected stakeholders should be given the opportunity to participate in relevant
decision-making processes. Stakeholders in this context could span from individual local
inhabitants, interest groups and businesses through to national and international NGOs. In a
transparent dialogue process, the stakeholders roles and rights to access information should be
documented in a language relevant to their needs, taking into account potential illiteracy or lack
of access to media such as the internet. To the extent possible, the stakeholder engagement
process should try to identify the scope for local capacity building and facilitation of
understanding and learning.
AccountAbility outlines in its Stakeholder Engagement Standard (AA1000) a best practice
guideline for planning for, preparing, and measuring the implementation of a best practice
stakeholder engagement approach.
Reference Sources:
AccountAbility
www.accountability21.net
(Stakeholder Engagement Standard AA1000
available for download at website.)
8.3.3 Compensation
The introduction of petroleum production activities will often have significant impact on the local
exploration area. In the case of oil spills, resettlement, or otherwise substantially affecting the
livelihood of local inhabitants, appropriate compensation schemes are vital.
When local communities are likely to be affected directly or indirectly by petroleum production,
legal and formally binding compensation agreements should be developed. Where compensation
is to be paid in monetary forms, this should be undertaken in a timely manner to ensure that the
displaced or otherwise affected persons are not disadvantaged. Where involuntary displacement
(resettlement) is necessary, the same compensation and support standards should apply to all
groups whether they have agreed to relocation arrangements or not.
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At the overall community level, larger social compensation projects such as new roads, schools or
health facilities are often introduced. The ownership of such projects should be considered, both
during construction periods and not least for the long-term operational phases of petroleum
extraction, and if possible be anchored with the local authorities rather than with the commercial
operators (ref section 8.3.6).
8.3.4 Civil Society

The role of civil society is increasingly being acknowledged in national and international
decision-making processes. A broadly-based and dynamic civil society is thought essential to the
development of a democratic society that serves the interests of all its members.
Civil society can be defined as:
Formal and informal organisations, networks and movements that are active in the public
sphere between state and family. These organisations are neither owned nor governed by
the state and primarily operate on an idealistic basis.
An arena for participants in civil society and their relationship to other actors such as the
state and the private sector. This arena is shaped by the external environment in which
civil society operates, including legislation.
In practice, the concept encompasses organisations such as community groups, charities, NGOs,
faith-based organisations, professional associations, trade unions, business associations,
coalitions and advocacy groups. Civil society gives people the right and opportunity to influence
societal development, improve their own circumstances and provide support for the poor and
underprivileged so that their voices are heard and their interests are brought into focus.
Norwegian governmental cooperation with civil society

Norwegian authorities actively cooperate with civil society organisations domestically and abroad
through The Norwegian Agency for Development Cooperation (Norad).
In Norads work, considerable emphasis is placed on efforts to strengthen local cooperation partners
organisations in developing countries in order to ensure the sustainability of projects and promote the
development of civil society. Cooperation with civil society is partly conducted through Norwegian and
international organisations, and in some cases directly with national organisations via Norwegian
embassies. The objective of Norads cooperation with NGOs is to strengthen civil society as a driving
force and agent of change in order to achieve national development objectives.
Date : 2009-01-21
Page 45
8.3.5 Human Rights (incl Minorities)

The past decades have marked an increasing emphasis on sensitizing the general public on
violations of and threats to human rights. International media and the global civil society are
scrutinizing both private and public sector decision-makers into seriously tackle the issue.
The international system of promotion and protection of human rights has been substantially
developed and strengthened during recent years. International human rights law now comprises a
vast number of standard-setting instruments adopted by universal and regional intergovernmental
organizations. Numerous bodies entitled to monitor the implementation of these instruments have
been established. Examples include the numerous International Labour Organisation (ILO)
Conventions, addressing different aspects of workers rights.
One aspect of human rights is the issue of minority rights. In the case of extracting industries
such as petroleum production, this issue typically arises in the case of resettlement or otherwise
affecting areas that minority / indigenous groups currently inhabit or depend on. Indigenous
groups livelihood often strongly depends on the environment, and as such they are particularly
vulnerable to changes in the local biophysical sphere. In later years, many governments from
around the world have signed up to a variety of international human rights treaties, the UN
Declaration on the Rights of Persons Belonging to National or Ethnic, Religious and Linguistic
Minorities and the UN Declaration on the Rights of Indigenous Peoples being two notable
examples.
Reference Sources:
UNESCO
www.unesco.org
(A guide to Human Rights: Institutions, Standards, Procedures available for download at
website)
UN Declaration on the Rights of Persons belonging to National or Ethnic, Religious and
Linguistic Minorities
(available for download at www.minorityrights.org)
UN Declaration on the Rights of Indigenous Peoples
(available for download at www.minorityrights.org)
Date : 2009-01-21
Page 46
8.3.6 Operator CSR initiatives

The later years have marked a strong increase in expectations of Corporate Social Responsibility
(CSR) among private sector operators, particularly so for companies in exposed sectors including
oil and gas. CSR is increasingly prioritised and communicated as a core element of large
multinationals key strategies. CRS initiatives can span from philanthropic support of projects far
from the companys own operations, through to extensive social schemes developed around highimpact commercial projects. Examples of the latter are often seen in commodity industries such
as petroleum, where exploration projects will typically have significant impact on local
communities and may involve substantial resettlement schemes. Company-funded schools, roads
and health infrastructure may also be put forward as a way to gain local governmental support,
e.g. in cases where multiple operators compete for licences to operate in a new area.
Although company CSR initiatives may often be both thorough and well-managed, there is also
an element of letting what is normally seen as key government responsibilities too much into the
hands of commercial agents. There might in the end be an issue of power distribution in the local
area. Ideally a dialogue between local authorities and relevant operators should be established
from the very outset, where the interface between private CSR initiatives and local governmental
involvement is clearly defined. One way of ensuring that the power over key infrastructure is kept
within local authorities could be schemes where funding and / or development costs are carried
by the operator, whilst administration and ownership is placed with local municipalities, at least
in the post-construction phases.
Reference Sources:
World Business Council for Sustainable Development
(WBCSD)
www.wbcsd.org
Date : 2009-01-21
Page 47
REFERENCES
OfD, 2008
E&P Forum /UNEP,
1997
World Bank, 1996
Climate Change and the Oil for Development Initiative. Report by the Working
Group on Climate Measures under the OfD Initiative. 5 June 2008
Environmental Management in oil and gas exploration and production. An
overview of issues and management approaches. Joint E&P Forum /UNEP
Technical Publication. 1997
Guidelines for Integrated Coastal Zone Management. Jan C. Post and Carl G.
Lundin, Editors. Environmentally sustainable development studies and
monographs; no. 9. World Bank 1996.
OGP, 2008
Guidelines for waste management with special focus on areas with limited
infrastructure. Report No. 413. September 2008. OGP
CONCAWE, 2003
A guide for reduction and disposal of waste from oil refineries and marketing
installations. CONCAWE report no. 6/03.
CONCAWE, 1999
Best available techniques to reduce emissions from refineries. CONCAWE

document no. 99/01.
BP, 2007
BP Group Practice Environmental Requirements for new projects.
E&P Forum, 1994
E&P FORUM Guidelines for the Development and Application of Health, Safety
and Environmental Management Systems. Report No. 6.36/210. July 1994
Therivel et al, 1992
Thrivel, Riki, Elizabeth Wilson, Stewart Thompson, Donna Heaney, and David
Pritchard. 1992. Strategic Environmental Assessment. London: Earthscan.
Date : 2009-01-21
Page 48
APPENDIX
1
GLOBAL AGREEMENTS AND CONVENTIONS
- o0o -
Overview of agreements- SKAL REVIDERES P BAGRUNN AV INPUT FRA MD/SFT

Global agreements and conventions
Regional and bilateral agreements

Air
Convention on Long-range Transboundary Air Pollution
(LRTAP)
United Nations Framework Convention on Climate Change

(UNFCCC)
Convention for the Protection of the Ozone Layer (Vienna
convention)
International Convention for the Prevention of Pollution from
Ships (MARPOL 73/78)
Fresh water sources

Convention on the Protection and Use of Transboundary
Watercourses and International Lakes (ECE Water Convention)
Waste
Convention on the Control of Transboundary Movements of
Hazardous Wastes and their Disposal (Basel Convention
Convention on the ban of the import into Africa and the

control of transboundary movements and management of
hazardous wastes within Africa (Bamako convention, not yet
in force)
Convention on liability and compensation for damage in

connection with the carriage of hazardous and noxious
substances by sea (HNS)
Hazardous substances/chemicals
Stockholm Convention on Persistent Organic Pollutants (POPconvention)
Convention on the Prior Informed Consent Procedure for Certain
Hazardous Chemicals and Pesticides in International Trade
(Rotterdam convention)
Sea
United Nations Convention on the Law of the Sea (UNCLOS)
Convention on the Prevention of Marine Pollution by Dumping
of Wastes and Other Matter (London convention) and the 1996
Protocol thereto
Convention for the protection of the marine environment of

the North-East Atlantic (OSPAR convention)
Convention for the protection of the marine environment of
the Baltic Sea (Helsinki convention)
Convention on the Law of the Non-navigational Uses of

International Watercourses
Convention for the protection of the Mediterranean Sea

against pollution (Barcelona convention)
International Convention for the Prevention of Pollution from

Ships (MARPOL 73/78)
International Convention on the Control of Harmful Anti-fouling
Systems on Ships (AFS Convention)
Convention on the protection of the Black Sea against

Pollution (Bucharest convention)
Agreement for cooperation in dealing with pollution of the
North Sea by oil and other harmful substances (Bonn
Agreement)
Convention for Co-operation in the protection and
development of the marine and coastal environment of the
West and central African Region (Abidjan convention)
Convention for the protection, management and development
of the marine and coastal environment of the Eastern African
Region (Nairobi convention)
Kuwait regional convention for co-operation on the
protection of the marine environment from pollution (Kuwait
convention)
Convention for Co-operation in the protection and
sustainable development of the marine and coastal
environment in the North-East Pacific (Antigua Convention)
Convention for the protection and development of the marine
environment of the Wider Caribbean Region (Cartagena
convention)
Convention for the protection of the marine environment and
coastal zone of the South-East Pacific (Lima convention)
International Convention for the Control and Management of

Ships' Ballast Water and Sediments (BWM Convention) (not in
force)
International Convention on Oil Pollution Preparedness,
Response, and Co-operation (OPRC)
Convention for the protection of the marine environment and

coastal zone of the South Pacific (Noumea convention)
Biodiversity
Convention of Biological Diversity
Convention on the Conservation of European Wildlife and

Natural Habitats (Bern Convention)
Convention on Migratory Species
The European Landscape Convention
The Ramsar Convention on Wetlands

The UN Convention to Combat Desertification
Others
Convention on the Transboundary Effects of Industrial
Accidents
Convention on the environmental impact assessment in a
transboundary context (ESPOO)
Convention on Access to Information, Public participation in
Decision-Making and Access to Justice in Environmental
Matters (rhus convention)
Air
United Nations Framework Convention on Climate Change (UNFCCC)
The objectives of the convention are to stabilize greenhouse-gas concentrations in the
atmosphere at a level that would prevent dangerous anthropogenic interference with the
climate system, within a time-frame sufficient to allow ecosystems to adapt naturally to
climate change, and to ensure that food production is not threatened to enable economic
development to proceed in a sustainable manner. The Kyoto protocol follows up the work of
the convention, and commits the developed countries to stabilize the green house gas
emissions.
http://unfccc.int/resource/docs/convkp/conveng.pdf
Convention for the Protection of the Ozone Layer (Vienna convention)
The objectives of the Convention are: to protect human health and the environment against
adverse effects resulting or likely to result from human activities which modify or are likely to
modify the ozone layer, to adopt agreed measures to control human activities found to have
adverse effects on the ozone layer, to co-operate in scientific research and systematic
observations, and to exchange information in the legal, scientific, and technical fields. The
Montreal protocol follows up the work of the convention, and has taken measures leading to
total elimination of global emission of ozone-depleting substances.
http://ozone.unep.org/Treaties_and_Ratification/2A_vienna_convention.asp
http://www.unep.org/ozone/montreal.shtml
International Convention for the Prevention of Pollution from Ships (MARPOL
73/78)
The protocol of 1978 relating to the convention also deals with prevention of air pollution
from ships. For more details about the convention, see under sea section.
Sea
United Nations Convention on the Law of the Sea (UNCLOS)
The convention lays down a comprehensive regime of law and order in the world's oceans
and seas establishing rules governing all uses of the oceans and their resources. The
Convention governing all aspects of ocean space, such as delimitation, environmental
control, marine scientific research, economic and commercial activities, transfer of
technology and the settlement of disputes relating to ocean matters.
http://www.un.org/Depts/los/convention_agreements/convention_overview_convention.htm
Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other
Matter (London convention) and the 1996 Protocol thereto
The objectives of the convention are to prevent indiscriminate disposal at sea of wastes
liable to create hazards to human health, to harm living resources and marine life, to
damage amenities, or to interfere with other legitimate uses of the sea. The fundamental
principle of the Convention is the prohibition of dumping of certain wastes, the
requirement of a specific permit prior to dumping of others, and the demand for a general
permit for the rest. The 1996 Protocol to the Convention entered into force in 2006 and
thus replaced and modernized the Convention as between Protocol parties. Under the
Protocol all dumping is prohibited, except for acceptable wastes on the so-called "reverse
list".
http://www.londonconvention.org/
Convention on the Law of the Non-navigational Uses of International Watercourses
The convention applies to uses of international watercourses and of their waters for
purposes other than navigation and to measures of protection, preservation and
management related to the uses of those watercourses and their waters.
http://www.un.org/law/ilc/texts/nnavfra.htm
International Convention for the Prevention of Pollution from Ships (MARPOL
73/78)
The objectives of the convention are to eliminate pollution of the sea by oil, chemicals, and
other harmful substances which might be discharged in the course of operations; to
minimize the amount of oil which could be released accidentally in collisions or strandings
by ships, including also fixed or floating platforms; to improve further the prevention and
control of marine pollution from ships, particularly oil-tankers. The protocol of 1978
relating to the convention also deals with prevention of air pollution from ships.
http://sedac.ciesin.org/entri/texts/pollution.from.ships.1973.html
International Convention on the Control of Harmful Anti-fouling Systems on Ships
(AFS Convention)
The International convention on the Control of Harmful Anti-fouling Systems on Ships
prohibits the use of harmful organotins in anti-fouling paints used on ships and establishes a
mechanism to prevent the potential future use of other harmful substances in anti-fouling
systems.
http://www.imo.org/home.asp?topic_id=1488
International Convention for the Control and Management of Ships' Ballast Water
and Sediments (BWM Convention) (not in force)
The objective of the Convention is to prevent, minimize and ultimately eliminate the
transfer of harmful aquatic organisms and pathogens through the control and management
of ships' ballast water and sediments. The Convention was adopted in 2004 and will enter
into force 12 months after ratification by 30 States, representing 35 per cent of world
merchant shipping tonnage.
http://www.imo.org/home.asp?topic_id=1488
International Convention on Oil Pollution Preparedness, Response, and Co-operation
(OPRC)
The objectives of the convention are to prevent marine pollution incidents by oil, in
accordance with the precautionary principle, in particular by strict application of the
International Convention for Safety of Life at Sea (SOLAS) and MARPOL 73/78; to advance
the adoption of adequate response measures in the event that an oil-pollution incident does
occur; and to provide for mutual assistance and co-operation between States for these aims.
http://www.imo.org
Fresh water resources

Convention on the Protection and Use of Transboundary Watercourses and
International Lakes (ECE Water Convention)
The objectives of the convention are to strengthen national and international actions aimed at
the protection and ecologically sound management of transboundary waters, both surface
waters and groundwaters, and related ecosystems, including the marine environment; to
prevent, control, and reduce the releases of hazardous, acidifying, and eutrophying substances
into the aquatic environment; and to promote public information and public participation in
relevant decision-making processes. . It has a protocol on water and health.
http://www.unece.org/env/water
Waste
Convention on the Control of Transboundary Movements of Hazardous Wastes
and their Disposal (Basel Convention)
The goal of the Basel convention is the environmentally sound management of
hazardous wastes. To this end, the convention pursues three key objectives to reduce
transboundary movements of hazardous wastes to a minimum, to dispose of these
wastes as close as possible to where they are generated, and to minimize their
generation.
http://www.basel.int/
Convention on liability and compensation for damage in connection with the
carriage of hazardous and noxious substances by sea (HNS)
The main objective of the HNS convention is to provide adequate, prompt

and effective compensation for loss or damage arising in connection with the
carriage of HNS on sea-going ships.
http://folk.uio.no/erikro/WWW/HNS/hns.html#conv
Hazardous substances/chemicals
Stockholm Convention on Persistent Organic Pollutants (POP-convention)
The objective of the convention is to protect human health and the environment
from persistent organic pollutants (POPs). POPs are chemicals that remain intact in
the environment for long periods, become widely distributed geographically,
accumulate in the fatty tissue of living organisms and are toxic to humans and
wildlife. In implementing the convention, Governments will take measures to
eliminate or reduce the release of 12 of the most dangerous POPs into the
environment.
http://www.pops.int/
Convention on the Prior Informed Consent Procedure for Certain Hazardous
Chemicals and Pesticides in International Trade (Rotterdam convention)
The objectives of the convention are to promote shared responsibility and cooperative efforts in the international trade of certain hazardous chemicals in order to
protect human health and the environment from potential harm, and to contribute to
their environmentally sound use by facilitating information exchange about their
characteristics by providing for a national decision-making process on their import
and export.
http://www.pic.int/
Biodiversity
Convention of Biological Diversity
http://www.cbd.int/
Convention on Migratory Species
http://www.cms.int/index.html
The Ramsar Convention on Wetlands
http://www.ramsar.org/
The UN Convention to Combat Desertification
http://www.unccd.int/
Others
Convention on the Transboundary Effects of Industrial Accidents

The convention shall apply to the prevention of preparedness for and response to
industrial accidents capable of causing transboundary effects, including the effects
of such accidents caused by natural disasters, and to international cooperation
concerning mutual assistance, research and development, exchange of information
and exchange of technology in the area of prevention of, preparedness for and
response to industrial accidents.
http://www.unwcw.org/env/teia/text.htm
Convention on the environmental impact assessment in a transboundary context
(ESPOO)
The objectives of the convention are to enhance international co-operation in
assessing environmental impacts; to promote environmentally sound and sustainable
development; to support the development of anticipatory policies and of measures
preventing, mitigating, and monitoring significant adverse environmental impacts, to
promote measures taken at an early planning stage of proposed activities aimed at
preventing potentially harmful environmental impacts, in particular those with a
transboundary dimension, and to strive towards convergence of relevant national
policies and practices; to provide for notification and consultation among states
concerned on all major projects under consideration that are likely to cause significant
adverse environmental impact across boundaries; and to promote public information
and public participation in relevant decision-making processes.
http://www.unece.org/env/eia/eia.htm
Convention on Access to Information, Public participation in Decision-Making
and Access to Justice in Environmental Matters (rhus convention)
The objectives of this convention is to guarantee the rights of access to information,
public participation in decision making, and access to justice in environmental
matters in order to contribute to the protection of the right of every person of present
and future generations to live in an environment adequate to his or her health and
well-being.
http://www.unece.org/env/pp/
a. Regional and bi-lateral
Air
Convention on Long-range Transboundary Air Pollution (LRTAP)
The aim of the Convention is that Parties shall endeavour to limit and, as far as
possible, gradually reduce and prevent air pollution including long-range
transboundary air pollution. Parties develop policies and strategies to combat the
discharge of air pollutants through exchanges of information, consultation, research
and monitoring. The Convention has been extended by eight protocols that identify
specific measures to be taken by Parties to cut their emissions of air pollutants.
http://www.unece.org/env/lrtap/
Sea
Convention for the protection of the marine environment of the North-East
Atlantic (OSPAR convention)
The 1992 OSPAR Convention is the current instrument guiding international
cooperation on the protection of the marine environment of the North-East Atlantic.
It combined and up-dated the 1972 Oslo Convention on dumping waste at sea and
the 1974 Paris Convention on land-based sources of marine pollution. The work
applies the ecosystem approach to the management of human activities and is
organised under six strategies: Protection and Conservation of Marine Biodiversity
and Ecosystems, Eutrophication, Hazardous Substances, Offshore Oil and Gas
Industry, Radioactive Substances and Monitoring and Assessment.
http://www.ospar.org/eng/html/welcome.html
Convention for the protection of the marine environment of the Baltic Sea
(Helsinki convention)
The aim of the convention is to protect the Baltic marine environment from all
sources of pollution. The convention covers the whole of the Baltic Sea area,
including inland waters as well as the water of the sea itself and the sea-bed.
Measures are also taken in the whole catchments area of the Baltic Sea to reduce
land-based pollution.
http://www.helcom.fi/press_office/en_GB/pressroom/
Convention for the protection of the Mediterranean Sea against pollution
(Barcelona convention)
The aim of the convention is to protect and improve the Mediterranean marine
environment in order to contribute to sustainable development in the area and to
prevent, abate, combat and, as far as possible, eliminate pollution in this area.
Particular attention is given to four types of pollution: pollution caused by dumping
from ships and aircraft; pollution from ships; pollution resulting from exploration
and exploitation of the continental shelf and the seabed and its subsoil, and pollution
from land-based sources. http://europa.eu/scadplus/leg/en/lvb/l28084.htm
Convention on the protection of the Black Sea against Pollution (Bucharest
convention)
The aim of the convention is to prevent, reduce and control the pollution in the Black
Sea in order to protect and preserve the marine environment and to provide legal
framework for co-operation and concerted actions. The convention has three
protocols: the control of land-based sources of pollution; dumping of waste; and joint
action in the case of accidents.
http://www.blackseacommission.org/OfficialDocuments/Convention_iframe.htm
Agreement for cooperation in dealing with pollution of the North Sea by oil and
other harmful substances (Bonn Agreement)
The Bonn Agreement is the mechanism by which the North Sea States, and the
European Community, work together in order to combat pollution from maritime
disasters, chronic pollution from ships and offshore installations, and to carry out
surveillance in this regard.
http://www.bonnagreement.org/eng/html/welcome.html
Convention for Co-operation in the protection and development of the marine
and coastal environment of the West and central African Region (Abidjan
convention)
The aim of the convention is protection and development of the marine and coastal
environment of the West and Central African Region. The Convention and its
protocol concern cooperating in combating pollution in cases of emergency.
http://www.unep.org/AbidjanConvention/COP_8/index.asp
Convention for the protection, management and development of the marine and
coastal environment of the Eastern African Region (Nairobi convention)
The aim of the convention is to prevent pollution of the coastal environment from
activities, to establish objectives, policies and legislation for the protection of the
marine environment, and to promote sustainable development and management of
marine and coastal area. The convention provides a mechanism for regional cooperation, co-ordination and collaborative actions.
http://www.unep.org/NairobiConvention/
Kuwait regional convention for co-operation on the protection of the marine
environment from pollution (Kuwait convention)
The aim of the convention is to prevent, abate and combat pollution of the marine
environment by co-operation, developing an integrated management approach to the
use of the use of the marine environment etc.
http://sedac.ciesin.org/entri/texts/kuwait.marine.pollution.1978.html
Convention for Co-operation in the protection and sustainable development of
the marine and coastal environment in the North-East Pacific (Antigua
Convention)
The aim of the convention is to protect and preserve the marine and coastal
environment of the Northeast Pacific against all kinds and sources of environmental
pollution and degradation. The Antigua Convention sets forth the legal obligations
and establishes the cooperative mechanisms necessary for the long term conservation
and sustainable use of the highly migratory fish stocks of the Eastern Pacific Ocean.
http://www.unep.ch/regionalseas/main/nep/nepconve.html
Convention for the protection and development of the marine environment of
the Wider Caribbean Region (Cartagena convention)
The convention requires adoption of measures aimed at preventing, reducing and
controlling pollution from ships, pollution caused by dumping, pollution from seabed activities and airborne pollution. The convention is supplemented by three
protocols.
http://www.cep.unep.org/cartagena-convention/cartagenaconvention/plonearticle.2005-10-04.2793893381
Convention for the protection of the marine environment and coastal zone of
the South-East Pacific (Lima convention)
The objective of the convention is to protect the marine environment and coastal
zones of the
South-East Pacific against all types and sources of pollution.
http://sedac.ciesin.org/entri/texts/marine.environment.coastal.south.east.pacific.1981.
html
Convention for the protection of the marine environment and coastal zone of
the South Pacific (Noumea convention)
The aim of the convention is to prevent, reduce and control pollution from any
source and to ensure sound environmental management and development of natural
resources. The Convention has two protocols: protocol for the prevention of
pollution by dumping, and protocol concerning co-operation in combating pollution
emergencies.
http://cc.msnscache.com/cache.aspx?q=72732588134154&andmkt=nbNO&andlang=nb-NO&andw=1e108d79&andFORM=CVRE2
Waste
Convention on the ban of the import into Africa and the control of
transboundary movements and management of hazardous wastes within Africa
(Bamako convention, not yet in force)
The aim of the convention is to ban the import into Africa and the control of
transboundary movement and management of hazardous wastes within Africa.
http://sedac.ciesin.org/entri/texts/acrc/bamako.txt.html
Biodiversity
Convention on the Conservation of European Wildlife and Natural Habitats
(Bern Convention)
http://www.coe.int/t/dg4/cultureheritage/conventions/bern/default_en.asp
The European Landscape Convention
http://www.coe.int/t/dg4/cultureheritage/Conventions/Landscape/default_en.asp
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Environmental Manual- DRAFT January 21 2009

THE OIL AND GAS VALUE CHAIN ............................................................................ 4

ENVIRONMENTAL ASPECTS AND POTENTIAL IMPACTS ................................ 6

ENVIRONMENTAL POLICY AND LEGISLATION ................................................ 17

Developing an Environmental management policy ................................................. 17

Implementing an Environmental management policy ............................................. 18

ENVIRONMENTAL TOOLKIT ................................................................................... 19

5.2 Strategic Environmental Assessment ....................................................................... 21

Sensitivity mapping .................................................................................................. 25

Environmental Resource Database ........................................................................... 26

Environmental Management System ....................................................................... 27

Waste management Plan .......................................................................................... 28

Environmental Risk Assessment .............................................................................. 29

Oil Spill Contingency Planning................................................................................ 30

5.10 Environmental Baseline Study and Environmental Monitoring .............................. 32

A GUIDE TO ASSESS THE ENVIRONMENTAL SENSITIVITY OF A

How can environmental sensitivity be categorised? ................................................ 35

Environmental Manual- DRAFT January 21 2009

GUIDANCE ON CLIMATE CONSIDERATIONS WITHIN OFD ........................... 38

Mitigating measures ................................................................................................. 38

Policy measures ........................................................................................................ 38

Clean Development Mechanism .............................................................................. 39

Adaptation measures ................................................................................................ 39

ENSURING SUSTAINABLE LOCAL AND REGIONAL DEVELOPMENT ......... 40

The need for a holistic approach .............................................................................. 40

Economic implications of environmental concerns in the case of oil and gas

8.3 Elements of successful sustainable development ..................................................... 42

Global agreements and conventions

Environmental Manual- DRAFT January 21 2009

LIST OF ABBREVIATIONS (not complete)

Oil for Development

Exploration and Production (of oil and gas)

Floating Production Storage and Offloading (vessel)

Green House Gases

Corporate Social Responsibility

Clean Development Mechanism

Environmental Manual- DRAFT January 21 2009

Environmental Manual- DRAFT January 21 2009

Chapter 3 Environmental aspects and

Chapter 6 A guide to assess the

(before any of the tools in the toolkit are applied)

Chapter 7 Guidance on climate

Applying a more holistic approach- how can

Chapter 8 Ensuring sustainable local

Environmental Manual- DRAFT January 21 2009

2 THE OIL AND GAS VALUE CHAIN

Figure 2-1 The Oil and gas value chain

Description of main activities

Exploratory drilling explores the presence or absence of a hydrocarbon reservoir while

Field and facility

Environmental Manual- DRAFT January 21 2009

platforms/FPSO/subsea systems, production facilities, pipelines and infrastructure for

Sources: OGP, 2008 and E&P Forum/UNEP, 1997

Environmental Manual- DRAFT January 21 2009

3 ENVIRONMENTAL ASPECTS AND POTENTIAL IMPACTS

Environmental Manual- DRAFT January 21 2009

Figure 3-1 Relationship between environmental aspects, environmental impacts and