biodiversity & oil&gas site selection process _guidelines ebi2003

8/14/2019 Biodiversity & Oil&Gas site selection process _guidelines EBI2003

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The Energy & Biodiversity Initiative

Framework for Integrating Biodiversity into the Site Selection Process

Framework for IntegratingBiodiversity into theSite Selection Process

TABLE OF CONTENTS

EXECUTIVE SUMMARY............................................................................................................................................................................ ............................. 2

1. Background........................................................................................................................................................................................................................4

2. Introduction.......................................................................................................................................................................................................................6

3. Principles................................................................................................................................... ......................................................................................... 7

4. Application of the Framework........................................................................................................................................................... ............................8

QUESTION 1. Has the project area been identied as having high biodiversity values?.................................................................... 8

QUESTION 2. Does the project area contain, or exist within, a Protected Area?.................................................................................10

QUESTION 2.1 Is the PA designated under international agreements?................................................................................. 12

QUESTION 2.2 Is the PA designated under regional agreements?.......................................................................................... 12

QUESTION 2.3 Is the PA designated under national processes?.............................................................................................. 13

QUESTION 2.4 Is the PA designated under sub-national processes?......................................................................................14

QUESTION 3. Can the Protected Area be avoided using technical options?.........................................................................................15

QUESTION 4. Can the Government approve hydrocarbon development activities within a

Protected Area through a valid process?...... ....................................................................................................................... 15

QUESTION 4.1 Is oil and gas exploration and production allowed? ........................................................................................ 15

QUESTION 4.1.1 Is the PA inscribed as a World Heritage site?................................................................................... 16

QUESTION 4.1.2 Is the PA a Ramsar site? ........................................................................................................................ 17

QUESTION 4.1.3 Is the PA designated nationally, regionally, locally and/or privately?.........................................18

QUESTION 4.2 Could exploration and production activities proceed without compromising

the biodiversity values of the PA? ....................................................................................................................... 19

QUESTION 4.3 Can project authorization be granted? .............................................................................................................. 19

QUESTION 5. Can the biodiversity values of the Conservation Priority Area Not Currently Under

Protection be conrmed? .......................................................................................................................................................20

QUESTION 6. Are there any signicant biodiversity issues? .................................................................................................................... 21

QUESTION 7. Can impacts be mitigated to an acceptable level?............................................................................................................24

APPENDIX A. Amman Declaration Recommendation 2.82 (World Conservation Congress)...................................................................... 26

APPENDIX B. Industrial Activities and World Heritage and Ramsar Sites............................................................................................................28

FIGURE 1. Relationship between PAs, CPAs and rest of the world.......................................................................................................................6

FIGURE 2. The Framework owchart...................................................................................... ......................................................................................... 9

FIGURE 3. Filtering using QUESTIONS 1 and 2........................................................................................................................................................... 11

FIGURE 4. Relationship among sub-questions in QUESTION 4....................................................................... .........................................................16

FIGURE 5. World Heritage Sites Nomination Process................................................................................................................................................30

FIGURE 6. World Heritage Sites Monitoring & Reporting Process........................................................................................................................... 31

FIGURE 7. World Heritage Sites Threat Identication Process ............................................................................................................................... 32

BOX 1. The IUCN Protected Area Management Categories ........................................................................................................................................ 13

photo credit: Conservation International, Haroldo Castro


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2The Energy & Biodiversity Initiative

TheFramework for Integrating Biodiversity into the SiteSelection Process (the Framework) is designed to supportcompanies in identiying and developing appropriateresponses to managing new business ventures in areaso high biodiversity value. To ensure that biodiversityis addressed everywhere, regardless o the legal statusor other protective status o the area in question, theFramework considers three categories areas withlegal protection, areas that have a high conservationpriority without legal protection and the rest o theworld, which may contain areas o high value yet to beidentiied. The Framework is part o a wider context o acomplex and multi-layered decision-making process inwhich companies prioritize and evaluate risks accordingto a broad range o perspectives. A company may chooseto terminate its interest in a new business opportunityin an area irrespective o the options indicated by theFramework.

Several principles have inormed the design o theFramework:

Biodiversity exists within and outside o ProtectedAreas (PAs).

Biodiversity conservation is an integral element osustainable development.

Companies should respect the reason or which PAshave been established.

Not all PAs are closed to industrial activity.

Aggravated risks may result rom operating within or

near to a PA or Conservation Priority Area (CPA).

Opportunities to benet biodiversity may arise at oiland gas operations.

Addressing biodiversity issues in PAs and CPAs,and any other area, has signicant advantages orcompanies e.g. reduced risks or shareholders,potentially improved access to capital, an easier path toobtaining and maintaining a license to operate, lower

capital and operational costs and improved reputationmanagement, etc.

Benets or companies o participating in orencouraging regional land use planning exercises mayinclude early identication and difusion o sensitivebiodiversity-related issues; increased credibility withlocal stakeholders; and investment and project designdecisions that t existing plans or regional development.

As a means o simpliying the issues and options thatconront a company, the Framework uses a lowchartbased on seven key questions to irst identiy the extento the biodiversity values in an area. Whether the areahas been legally protected or not, the Framework assistswith identiying the nature o the protection or priorityassociated with the area or, or areas that all into therest o the world category, the presence o previouslyunrecognized biodiversity issues and values. The logic behindthe key questions can be summarized as noted below:

Question 1. Has the project area been identified as having

high biodiversity values? Regions may be identiiedas having high biodiversity values by governments,by international convention bodies, conservationorganizations or the scientiic community. Areas arecategorized into those with legal protection, thosewithout legal protection but with recognized biodiversityvalues, and those that may contain as yet unidentiiedbiodiversity values.

Question 2. Does the project area contain, or exist

within, a Protected Area? PAs are a common eature inconservation schemes in almost every country o the

world. PAs may indicate an area o high biodiversity andsocietal value, and they are oten related to the provisiono important environmental services and products.Knowing where PAs are in relation to planned operationscan give a company an idea o where governments mayor may not allow it to work, as certain activities maybe restricted by law, and what the potential risks to itsreputation may be.

EXECUTIVE SUMMARY


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Question 3. Can the Protected Area be avoided using

technical options? Having identiied that the companysproject area is within, or contains, a PA, the nextquestion is whether the company can avoid enteringthe PA. Are there reasonable location, re-routing ortechnological options available which may preclude theneed to enter the PA? Has the company considered the

option o not continuing with the project, as well as thesocial, ecological, and economic tradeos o avoidingthe PA? Assessing alternatives should be a standardprocedure within the Environmental and Social ImpactAssessment (ESIA) process that should look at the no-project alternative (i.e. what would happen i the projectdid not proceed) based on biodiversity issues as wellas technical alternatives (e.g. building mitigation intoengineering design, pipeline routing options, deviateddrilling, etc.).

Question 4. Can the Government approve hydrocarbon

development activities within a Protected Area through avalid process?Government authorization o a projectin a protected area is not a oregone conclusion, anda company should exercise signiicant care even iit receives such authorization. There are a variety oscenarios under which a government may considerauthorizing activities in a protected area, including onesin which the existing protected area legislation allowsoil and gas activities, and those in which it does not butgovernment may have legal authority to authorize suchactivities under speciic circumstances. Each o thesescenarios presents dierent risks to the company that

the company should careully evaluate in making anydecisions whether or not to pursue such authorization orto proceed on the basis o any authorization granted.

Question 5. Can the biodiversity values of the

Conservation Priority Area Not Currently Under Protection

(CPA) be confirmed? CPAs can be deined in many ways.A starting point is to take areas either identiied bygovernments and/or scientiic organizations as part otheir national planning processes or areas recognized byconservation organizations as a preliminary indication

o high biodiversity value. However, it is important torecognize that this is not a comprehensive deinition obiodiversity value and the related need or conservation.Companies may be advised to undertake testing obiodiversity value during the very early stages o theproject, even where this requires additional inancialsupport and sta time. In cases where there is littleor no inormation available, or the inormation iscontradictory, best proessional judgment should be usedto identiy the initial level o eort required to conirmbiodiversity values o a particular area. The results o the

science should then direct the need or additional work ivalues are initially deemed to be high

Question 6. Are there any significant biodiversity issues?

It is extremely important to identiy any signiicantbiodiversity issues as early as possible in the ESIAprocess. The company can then take steps to manage the

potential impacts, identiy what the residual impacts maybe and determine what the beneiting (compensatory)measures might be. I these are ignored, there areincreased environmental risks with the associatedpotential reputation issues, and the prospect otechnically diicult and costly retrospective mitigation.Once damaged, it may be extremely diicult to recover acompanys positive reputation.

Question 7. Can impacts be mitigated to an acceptable

level? In most instances, it may only be possible to reducean impact to a certain degree. For example, although

land-take can be minimized in areas o high biodiversityvalue, it is not possible to construct a production acilitywithout any land-take impacts. These impacts arethereore residual in the sense that they remain aterthe mitigation measures have been designed into theintended activity. However, acilities and inrastructurecan be designed in a way that can acilitate reuse(interpretation or social centers, research acilities,etc.) ater the lie o the project, thus minimizing land-take impacts. Mitigating impacts to a reasonable andacceptable level is the basic premise o the ESIA process.An ESIA is conducted to identiy, predict, assess and then

mitigate potential impacts o a project. I the companycannot mitigate impacts to a reasonable/acceptablelevel, then it will have to eed the indings back into thedecision ramework to include modiications such asimproved design and/or more robust mitigation measures.I it still cannot mitigate impacts, then this should be edinto the overall decision-making process or the companyand other stakeholders, as appropriate, to evaluatewhether the project should proceed in that location.

For each o these possible outcomes arising rom the yesor no answers to these questions, appropriate responsesare suggested. These include choosing not to proceedand the consideration o alternative sites. It is not theintent o this Framework to encourage companies toseek exemptions, redesignation o area boundaries, orother means to obtain authorization to operate in a PAwhere the applicable PA legislation does not explicitlypermit oil and gas activities. However, in very limitedcircumstances the process o seeking redesignation oprotected areas or their boundaries to allow oil and gasactivities to proceed may also be considered.


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TheFramework for Integrating Biodiversity into the SiteSelection Process (hereater reerred to as the Framework)is designed to support companies in identiying anddeveloping appropriate responses to managing newbusiness ventures in areas o high biodiversity value,both inside and outside o legally protected areas. Theseresponses may include the option o not proceedingwith the development on biodiversity grounds. TheFramework considers biodiversity value rom twoperspectives. The irst is evident at the global/nationalscale, where governments or the scientiic andconservation communities have identiied particularpriority areas. The second exists at the regional/localscale where areas may be classiied as having highvalue because o local community or indigenous peoplepriorities (e.g. hunting grounds or community reserves).It is important to recognize that these two perspectivesmay not always overlap and that stakeholder engagementis necessary to ully understand both.

To be used most eectively, the Framework should beintegrated with other approaches to environmental

management and biodiversity conservation, suchas Environmental Management Systems (EMS) andEnvironmental and Social Impact Assessments (ESIA).It may also be used in conjunction with regionalplanning exercises that can help identiy where oil andgas development and other economic activities areappropriate, recognizing the diering perspectives onland use. Long-range strategic land-use planning is animportant tool or determining priorities or regionaldevelopment and conservation, based on geological,ecological, cultural and economic actors; it is also useulor minimizing tensions usually associated with these

priorities. Such a process should be led by government,but incorporate the views o all stakeholders, includingindigenous people, local communities, the private sector,NGOs and development agencies.

It is anticipated that the principal users or thisdocument will be oil and gas companies. However, itmay also help conservation organizations and otherstakeholders to better understand issues related tooil and gas projects and acilitate improved dialoguebetween all parties. Additionally, although this document

is designed or use as a standalone document, otherEnergy and Biodiversity Initiative products oer detailedguidance on key elements contained within it.

Integrating Biodiversity Conservation into Oil and

Gas Development contains a summary of the analysis

and recommendations of the EBI, which form the

overall context for the Framework.

The Framework is laid out using seven key questionsto lead the user through a process o identiying andresponding appropriately to the challenges posed byareas with high biodiversity values. These questions canlargely be answered using inormation the company islikely to gather as a matter o course, or to which it hasready access. In more detail, the Framework:

Provides a means to identiy whether regions ointerest to the company and other stakeholders(including those likely to host pipelines and roads)

are sensitive with respect to biodiversity and itsconservation.

Highlights where specic management responses arerequired.

Provides a decision-support ramework to addressbiodiversity issues within and outside legally protectedareas.

The Framework also provides background inormationand context to the questions that are used to guide

the reader. The methodology laid out in the ollowingsections simpliies the process to acilitate use o theFramework. However, the issues and options conrontinga company are normally complex and multi-layered.Companies typically prioritize and evaluate relative riskswithin a much broader business process. A companymay choose at any point to terminate its interest in anew business opportunity in an area, irrespective othe options indicated by the Framework. However,it should be borne in mind that a potential challengeor biodiversity conservation can be the transer o

1. BACKGROUND
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oil and gas activities rom one company to another.This can result in a lack o continuity o philosophy,commitment and practice between companies,jeopardizing sustainable biodiversity conservation anda companys ability to maintain the reputational value oits investment in conservation. Thus, exiting the processmay bring its own risks where operation or rights to

operation are transerred to another company.

Additional information surrounding the issue of

divestiture can be found in Integrating Biodiversity

into Environmental and Social Impact Assessment

Processes.

Finally, the continued improvement o this Framework isdependent on the active participation o end-users andstakeholders. Thereore we welcome any comments and

suggestions relating to revisions and additions that willimprove the usability, content and breadth and depth oapplication in the oil and gas sector.

PLEASE SEND COMMENTS, SUGGESTIONS

AND QUESTIONS TO:

THE ENERGY & BIODIVERSITY INITIATIVE

c/o Dr. Assheton Stewart Carter

The Center for Environmental Leadership in Business

Conservation International

1919 M Street NW, Suite 600Washington, DC 20036

USA

Tel: +1 202 912 1449

Fax: +1 202 912 1047

Email: [email protected]

Website: www.TheEBI.org
http://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfmailto:[email protected]://www.theebi.org/http://www.theebi.org/mailto:[email protected]://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdf


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When considering new ventures or acquisitions,the Framework distinguishes between three broadgeographic categories to ensure that biodiversity impactsare addressed everywhere, regardless o the legal or otherprotective status o the potential project area in question:

Protected Areas (PAs): those areas o land and/or seaespecially dedicated to the protection and maintenanceo biological diversity, and o natural and associatedcultural resources, and managed through legal andother efective means. Note that although mostprotected areas are designated under national, local orregional legislation, some areas are designated undercustomary law and tradition (e.g. in the South Pacic).In addition, some protected areas are recognized underinternational (e.g. World Heritage or Ramsar sites) orregional processes (e.g. European Union Natura 2000sites).

Conservation Priority Areas Not Currently Under Protection

(hereafter referred to as CPAs in this document): thoseareas that are not currently under protected status

but have been identied by governments and/or thescientic or conservation community as having a high

conservation priority. Examples include WWF Global200 Ecoregions and Conservation InternationalsBiodiversity Hotspots and Wilderness Areas.

Rest of the World (RoW): the remaining areas notspecically included in PAs or CPAs, which maycontain areas o high value that are yet to be identied.

The relationship between these three categories is shownin Figure 1.

Almost everywhere hydrocarbons are developed will havepotential implications or biodiversity, so companiesmust make themselves aware o the potential ecologicalimpact o their operations. Nevertheless, in additionto PAs some areas have been identied as priorities orbiodiversity conservation (CPAs) based on the judgmentso governments or conservation organizations.Operating in areas that are not protected but still havehigh biodiversity values may carry the same level o riskto biodiversity and corporate reputation as workingin ormal PAs. When choosing to work in these areas,

the company should also recognize that it can providebenets that may not occur i there were no development.

2. INTRODUCTION

REST OF THE WORLD

CONSERVATION

PRIORITY AREAS

PROTECTED

AREAS

AREAS NOT YET

IDENTIFIED AS

IMPORTANT FOR

BIODIVERSITY

FIGURE 1. RELATIONSHIP BETWEEN PAS, CPAS AND REST OF THE WORLD


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The Framework has been developed according to theollowing principles:

Biodiversity exists within and outside o PAs.

Biodiversity conservation is an integral element osustainable development.

Companies should respect the reason or which PAshave been established.

Not all PAs are closed to industrial activity.

Aggravated risks may result rom operating within ornear to a PA or CPA.

Opportunities to benet biodiversity may arise at oiland gas operations.

Addressing biodiversity issues in PAs and CPAs,and any other area, has signicant advantages orcompanies e.g. reduced risks or shareholders,potentially improved access to capital, an easier path toobtaining and maintaining a license to operate, lowercapital and operational costs and improved reputationmanagement, etc.

Benets or companies o participating in orencouraging regional land-use planning exercises mayinclude early identication and difusion o sensitivebiodiversity-related issues; increased credibilitywith local stakeholders; and investment and projectdesign decisions that t existing plans or regionaldevelopment.

3. PRINCIPLES


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As noted above, the Framework uses seven principalquestions to inorm a companys decision regardingoperating in areas o high biodiversity value. Thesequestions are:

1. Has the project area been identiied as having highbiodiversity values?

2. Does the project area contain, or exist within, aProtected Area?

3. Can the Protected Area be avoided using technicaloptions?

4. Can the government approve hydrocarbondevelopment activities within a Protected Areathrough a valid process?

5. Can the biodiversity values o the ConservationPriority Area Not Currently Under Protection (CPA)be conirmed?

6. Are there any signiicant biodiversity issues?

7. Can impacts be mitigated to an acceptable level?

The decision-support owchart shown in Figure 2summarizes the potential pathways that may arise whenusing the Framework. Users should reer to this as theywork through each o the questions, which are examinedin greater detail in the ollowing sections. The owchartuses the symbols noted in the key below it as a visualprompt to the user where urther action is required.

Two urther aides are used to assist the reader in usingthe Framework and in ollowing the logical ow oquestions:

Each o the seven principalquestions has a next-questionbox, which shows the reader thenext question in the sequencebased on whether the answer to thecurrent question is yes or no(an example box is shown to thelet).

More detailed owcharts showing the interrelationshipo sub-questions, responses and actions are presentedor some o the principal questions these owchartsexpand upon and supplement Figure 2.

Many sources o inormation are available to answerthe questions posed by the Framework. Certain specicsources are listed at the end o each question within thisdocument.

Additional sources are described in more detail in

the Online Biodiversity Information Sources and

International Conventions.

Note that the inormation gathering process may beconstrained by condentiality considerations in acompetitive business environment (i.e. it may only bepossible to conduct a desk-top study in the early stageso a project, which may then lead on to eld-work andstakeholder engagement).

QUESTION 1.

Has the project area been identied as having high

biodiversity values?

Regions may be identied ashaving high biodiversity valuesby governments, by internationalconvention bodies, conservationorganizations or the scienticcommunity. During this earlyidentication phase, a company

should look or either PAs or CPAs asdened in Section 2.

There are many diferent systems under which PAs aredesignated, including international agreements such asthe World Heritage Convention and Ramsar Convention(see Question 2.1), regional processes (Question 2.2),national and provincial legislation (Question 2.3) and sub-national processes, including private PAs (Question 2.4).

YES

Qx

NO

Qy

4. APPLICATION OF THE FRAMEWORK
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FIGURE 2. THE FRAMEWORK FLOWCHART

Highervalues

1. Has the project area beenidentified as havinghigh biodiversity values?

1. Has the project area beenidentified as havinghigh biodiversity values?

2. Does the region of interestcontain, or exist within, aprotected area? (e.g. World Heritagesite/UN Listed Protected Area)

2. Does the region of interestcontain, or exist within, aprotected area? (e.g. World Heritagesite/UN Listed Protected Area)

3. Can the Protected Area beavoided using technical options?3. Can the Protected Area beavoided using technical options?

7. Can impacts be mitigated to anacceptable level?7. Can impacts be mitigated to anacceptable level?

YES

YES

YES

NO

NO

NO

Additional Measures& ESIA

Additional Measures& ESIA

YES

ESIA

5. Can the biodiversity values of theConservation Priority Area beconfirmed?

5. Can the biodiversity values of theConservation Priority Area beconfirmed?

YESYES Lower values

NO

NO

NO

6. Are there any significantbiodiversity issues?6. Are there any significantbiodiversity issues?

GO

ProjectIdentifica

tionPhase

ProjectManagementPhase

Note: a company may choose atany point to terminate or divestits interest in a new businessopportunity in an area irrespectiveof the options indicated by

the Framework.

This flowchart MUST be used with the accompanying text.

4. Can the government approvehydrocarbon development activitieswithin a Protected Area through avalid process?

4. Can the government approvehydrocarbon development activitieswithin a Protected Area through avalid process?

See Questions4.1 - 4.3

See Questions4.1 - 4.3

GO

Caution: Yellow flag is raised and an appropriate response is triggered.

Green Light: Proceed feed outcome into overall company decision-making frameworks.

Stop and Assess: The company may choose to voluntarily exit at any point in the process, but at theStop and Assess points shown in Figure 2, pressure to do so may be derived from non-voluntary orexternal drivers (e.g. no legal permission or impacts cannot be mitigated or offset). The assessmentprocess therefore reaches a potential do not proceed decision. Companies will need to feed thisoutcome into their overall decision-making frameworks as part of an integrated environmental, socialand economic risk and benefit assessment.

Environmental and Social Impact Assessment (ESIA): Used to identify the biodiversity, social, healthand other environmental impacts of an operation, and take action to avoid, minimize or mitigate theireffects.

Measures Above and Beyond Standard ESIA Practice: Triggers a management response to consideradditional early risk management or measures that may be conducted above and beyond normalactivities in the ESIA process.

ESIA

AdditionalMeasures

ESIA

AdditionalMeasures


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PAs are a common eature inconservation schemes in almostevery country o the world. About96,000 PAs worldwide cover anarea similar to that o China andIndia combined (totaling nearly 11percent o the Earths land surace).

Biodiversity research continues todene new areas o importance, somany countries are still updating

their national protected areas systems. There is ahigh likelihood that oil and gas companies may ndestablished and/or proposed PAs in or near to theirconcessions.

PAs may indicate an area o high biodiversity andsocietal value, and they are oten related to the provisiono important environmental services and products.Knowing where PAs are in relation to planned operations

can give a company an idea o where governments mayor may not allow it to work, as certain activities maybe restricted by law. Finally, knowing where PAs are isimportant to the process o identiying potential risks toa companys reputation.

PAs are mainly designated under nationallegislation or, in the case o ederal countries, underprovincial legislation. However, due to trends in thedecentralization o governments unctions, PAs are alsoincreasingly designated by state, provincial and evenlocal governments, as well as by local groups, including

indigenous peoples. Moreover, in a number o regions,mainly Latin America and the Caribbean and increasingly

in Arica, the number o private PAs is increasing. Inmany countries, private PAs are recognized as part o thenational protected areas system.

As noted in Section 3, not all PAs are closed to industrialactivity. In some cases, the relevant PA legislationwill explicitly authorize such activity as compatible

with the purposes or which the PA was established.However, in other cases, government authorizationor such activity may be unclear, opaque, or simplyout o step with the concerns o some stakeholders. Inthese cases, government authorization may increase,rather than decrease, the companys potential risks asthey relate to operating in or near to a PA. Even whereoil and gas exploration and production projects canbe operated in ways that either do not threaten theintegrity o a PA, or might even benet it (see Question4.2) and the government has explicitly authorized thatoperation through a valid process, the risk o signicant

biodiversity impacts and related impacts to reputationare increased by operating in or near to that PA.Thereore, companies must careully consider not onlythe potential biodiversity impacts o operating in or nearto a PA, but also the business consequences, irrespectiveo the nature o government approval. There may be clearbusiness gains rom choosing not to operate in suchareas.

See also Opportunities for Beneting

Biodiversity Conservation.

FIGURE 3. FILTERING USING QUESTIONS 1 AND 2.
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Questions 2.12.4 examine the variety o designationsavailable or PAs and allow a company to understand theirrelevance to the project area being considered.

Question 2.1

Is the PA designated under international agreements?

I the operation the company is planning will take placein a PA that has been designated under an internationalconvention such as the UNESCO World HeritageConvention or the Ramsar Convention on Wetlands oInternational Importance, or related programs suchas UNESCOs Man and Biosphere Programme, thenthe company should recognize and be aware o bothinternational and resulting national policies, regulationsand guidelines. The procedures set out under these twoconventions are diferent, as oil and gas operations aremore likely to be permissible within Ramsar sites thanWorld Heritage sites. However, the translation o these

designations into national statute is oten done as parto stronger legislative support. This may place tighterrestrictions than the basic international designation:

World Heritage Sites: The 1972 World HeritageConvention denes and conserves the worlds heritageby drawing up a list o natural and cultural sites whoseoutstanding universal values should be preservedor all humanity. As o July 2003, the 754 total sitesin 128 countries inscribed on the World Heritage Listincluded 149 natural, 23 mixed and 582 cultural sites.Further inormation on World Heritage Sites can be

ound in Question 4 and atwhc.unesco.org.

Ramsar Sites Wetlands of InternationalImportance: The Ramsar Convention (signed in1971) provides a ramework or national action andinternational cooperation or the conservation andwise use o wetlands and their resources. As o 2003,there were 138 Contracting Parties to the Convention,with 1,308 wetland sites, totaling 110 million hectares(271.8 million acres), designated or inclusion in theRamsar List o Wetlands o International Importance.Further inormation on Ramsar sites is given inQuestion 4 and atwww.ramsar.org.

Biosphere Reserves: The UNESCO Man andBiosphere Programme (MAB) recognizes governmentnominated areas o terrestrial and coastal ecosystemsas internationally important. The MAB Programme isoriented toward establishing a World RepresentativeNetwork o Biosphere Reserves, with each reserveaiming to contribute to the conservation oecosystems, species and genes, to oster economic

and human development which is socio-culturallyand ecologically sustainable, and to provide supportor research, monitoring, education and inormationexchange related to local, national and global issueso conservation and development. Each reserveconsists o a core area (or group o core areas), a buferzone, and a transition area. The core area requires

legal protection and is oten part o the existingPA network and may even be recognized by otherinternational conventions such as World Heritageor Ramsar. Many o the areas have mixed ownershipregimes, with the core area oten under governmentownership and the bufer zone in private or communityhands. Thus, the challenge and reward o biospherereserves is establishing an appropriate mechanismor coordinating activities within the total Reserve while biodiversity conservation is a central eatureo Biosphere Reserves, conservation is not necessarilya primary unction o all parts o a Biosphere Reserve.

Further inormation on Biosphere Reserves can beound atwww.unesco.org/mab/wnbr.htm.

For summary details of, and online links to, a

comprehensive range of relevant international

conventions including information on World Heritage

and Ramsar sites and Biosphere Reserves, see

International Conventions.

Question 2.2

Is the PA designated under Regional Agreements?

Regional reers to more than one country (e.g. theEuropean Union) or more than one state or provincewithin a single country. Under some regionalagreements, provisions have been made to enhance themanagement o existing PAs as key elements o socio-economic development. One example is the EuropeanUnion-wide network o nature conservation sitesknown as Natura 2000 and established under the ECHabitats Directive (92/43/EEC) and the EC Wild Birds

Directive (79/409/EEC). The objective o this network isto saeguard European biodiversity by designating andprotecting key sites. Member governments are requiredto identiy these sites and take steps to protect them,ensuring that they have what is reerred to as avorableconservation status (see europa.eu.int/comm/environment/nature/natura.htm or urther inormationon Natura 2000). This is achieved by managing boththese sites, and through the use o biodiversity-supportive policies in the non-protected areas. Further
http://whc.unesco.org/http://www.ramsar.org/http://www.unesco.org/mab/wnbr.htmhttp://www.theebi.org/pdfs/conventions.pdfhttp://www.theebi.org/pdfs/conventions.pdfhttp://www.theebi.org/pdfs/conventions.pdfhttp://www.theebi.org/pdfs/conventions.pdfhttp://www.theebi.org/pdfs/conventions.pdfhttp://europa.eu.int/comm/environment/nature/natura.htmhttp://europa.eu.int/comm/environment/nature/natura.htmhttp://europa.eu.int/comm/environment/nature/natura.htmhttp://europa.eu.int/comm/environment/nature/natura.htmhttp://www.theebi.org/pdfs/conventions.pdfhttp://www.theebi.org/pdfs/conventions.pdfhttp://www.theebi.org/pdfs/conventions.pdfhttp://www.theebi.org/pdfs/conventions.pdfhttp://www.theebi.org/pdfs/conventions.pdfhttp://www.unesco.org/mab/wnbr.htmhttp://www.ramsar.org/http://whc.unesco.org/


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examples include the recognition o PAs in CentralAmerica under the Central American Commission onProtected Areas and the special protocols containingprovisions or PA conservation and management inthe Caribbean and Mediterranean regions. Regionalregulations and agreements on PAs may enable nationalregulations that allow or certain types o activities, while

other designations may not allow any activities at all.Again, it is important to understand and ollow regionallaws relevant to PAs.

Question 2.3

Is the PA designated under national processes?

Each country has its own processes and sets odesignations or protected areas, with numerous meanso designating protected areas at sub-national levels.This leaves a somewhat conusing global picture onationally designated protected areas. However, the UN

List o National Parks and Protected Areas, compiled byIUCN and the UNEP World Conservation MonitoringCentre (UNEP-WCMC) since 1959, provides an overviewo national protected areas around the world.

Countries propose protected areas or inclusion inthe UN list to UNEP-WCMC, which then reviews theproposal against three criteria: (a) size only protectedareas 1,000 ha (2,471 acres) or larger are included; (b)management objectives based on the IUCN ProtectedArea Management categories (see Box 1), and (c)authority o the management agency. In many developed

countries, the typical protected area is less than 1,000 ha,making the IUCN categorization a very coarse sieve, andexcluding substantial numbers o protected areas romthe WCMC database. In addition, the categorization isnot used in national legislation in many countries.

The IUCN Protected Area Management categories are

not designations or PAs, but are a way o classiyingPAs around the world using common terminology. Thecategories promote internationally agreed standards oprotection and management, to help global accountingand comparisons, to demonstrate the ull range o PAvalues, and to encourage governments to create systemso PAs. The six categories in the IUCN system are basedon conservation management objectives and reect agradient o management intervention. All categoriesare equally important but reect an increasing humaninuence on the environment, except that Category VIactually sits between Categories IV and V. Thereore

Category V is the category where human inuence islikely to be the greatest. Each category carries a varying butpotentially signicant degree o risk or a company thatoperates or seeks to operate in or near to such areas, notleast because some environmental and conservationsNGOs may consider them as no-go areas.

While the IUCN Categories system is a convenienttool or making comparisons between countries, thecategory system itsel i not typically enshrined innational legislation. Rather, each government has its ownnational legislation that establishes its own restrictions

BOX 1. THE IUCN PROTECTED AREA MANAGEMENT CATEGORIES

National legislation for protected areas varies from country to country as well as across types of protected areas. Some

protected areas may allow certain types of activities, where others may be totally off limits to any human activity apart

from research. This variety across national classication systems is part of the rationale behind the creation of the IUCN

Protected Area Management Categories system, which creates a common language, based on an international framework,

among PA managers. But, as each nation is sovereign and national law binds companies, it is imperative to understand and

follow the national law regarding PAs.

IUCN Categories

I(a). Strict Nature Reserve (managed mainly for science)

I(b). Wilderness Area (managed for wilderness protection)

II. National Park (managed for ecosystem protection and recreation)

III. Natural Monument (managed for conservation of specic natural features)

IV. Habitat/Species Management Area (managed for conservation through management intervention)

V. Protected Landscape/Seascape (managed for conservation and recreation)

VI. Managed Resource Protected Area (managed for the sustainable use of natural resources)


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on land use in various types o protected areas. In somecountries, such as Australia, well over 100 types oprotected areas have been named. In many countries,protected areas are publicly owned, requiring that theState acquire the land rom private owners, sometimesthrough the right o pre-emption over any land thatcomes on the market. Public ownership is commonly

elt to be an advantage in preventing harmul activitiesor developments, but each government decides or itselwhat kinds o activities are permissible within whichtypes o protected areas.

The World Conservation Congress (WCC) in Amman,October 2000, adopted Recommendation 2.82that related to the protection and conservation obiological diversity o protected areas rom the negativeimpacts o mining and exploration (the ull text o theRecommendation is presented in Appendix A). TheWCC is the key gathering or conservation organizations

(governmental and NGOs) and is part o the IUCNgoverning system, where its members approve theIUCN program o work and propose resolutions andrecommendations that should be implemented as part othat program.

Although specically targeted at mining,Recommendation 2.82 could also be extended to includeoil and gas operations given that it:

Invites all governments and corporations to promoteand implement best practice in all aspects o mining

and mineral extraction, rom rst exploration throughto decommissioning and subsequent land use.

Calls on all IUCNs State members to prohibit by lawall exploration and extraction o mineral resourcesin protected areas corresponding to IUCN ProtectedAreas Management Categories I to IV.

Urges that proposed changes to the boundaries oprotected areas, or to their categorization, to allowor the exploration or localized extraction o mineralresources, should be subject to procedures at least asrigorous as those involved in the establishment o theprotected area in the rst place.

The Amman Recommendation is the basis o the WorldWide Fund or Natures (WWF) To Dig or Not to Dig, inwhich it is suggested that mineral activity (includingossil uels) should not take place in the ollowing places:

Highly protected areas (IUCN categories I-IV, marinecategory I-V protected areas, UNESCO World Heritage

sites, core areas o UNESCO biosphere reserves, andNatura 2000 sites in European Union countries).

Proposed protected areas within priority conservationareas selected through ecoregional planning exercises.

Areas containing the last remaining examples o

particular ecosystems or species, even i these lieoutside protected areas.

Places where mineral activities threaten the well-being o communities including, particularly, localcommunities and indigenous people.

Question 2.4

Is the PA designated under sub-national processes?

Relative to the national level, the situation at the sub-national level may be even more complex with a myriad

o diferent types o protected areas ranging rom privatereserves to local community protected areas to state andprovincial parks within ederal government systems.These protected areas will need to be identied throughconsultation, access to local knowledge resources (e.g.government agencies, academic or scientic institutions,NGOs, etc.), and through the ESIA process.

Information sources for answering Question 2

General

UNEP-WCMC Protected Areas Database:www.unep-wcmc.org/protected_areas

International

World Heritage Sites:whc.unesco.org

Ramsar Sites Wetland o International Importance:http://www.ramsar.org/

Biosphere Reserves: http://www.unesco.org/mab/wnbr.htm

National Sites

National Biodiversity Strategies and Action Plans:http://www.biodiv.org/world/reports.asp?t=ap

UNESCO Man and Biosphere Reserves: http://www.unesco.org/mab/wnbr.htm
http://www.unep-wcmc.org/protected_areashttp://whc.unesco.org/http://www.ramsar.org/http://www.unesco.org/mab/wnbr.htmhttp://www.biodiv.org/world/reports.asp?t=aphttp://www.unesco.org/mab/wnbr.htmhttp://www.unesco.org/mab/wnbr.htmhttp://www.biodiv.org/world/reports.asp?t=aphttp://www.unesco.org/mab/wnbr.htmhttp://www.ramsar.org/http://whc.unesco.org/http://www.unep-wcmc.org/protected_areas


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National Government Ministry responsible or PAs.

Regional Departments responsible or PAs.

IUCN Environmental Law CentreGodesberger Allee 108-112, 53175 Bonn, GermanyPhone: ++49 228 2692 231; Fax: ++49 228 2692 250,

Email: [email protected]

QUESTION 3.

Can the Protected Area be avoided using technical options?

Having identied that the companysproject area is within, or contains,a PA, the next question is whetherthe company can avoid entering thePA. Are there reasonable location,re-routing or technological optionsavailable which may preclude theneed to enter the PA? Has thecompany considered the option onot carrying on with the project/

acquisition/purchase, as well as the social, ecologicaland economic tradeofs o avoiding the PA? Assessingalternatives should be a standard procedure withinthe ESIA process, which should look at the no-projectalternative (i.e. what would happen i the project did notproceed based on biodiversity issues) as well as technicalalternatives (e.g. building mitigation into engineering

design, pipeline routing options, deviated drilling etc.).

QUESTION 4.

Can the Government approve hydrocarbon development

activities within a Protected Area through a valid process?

In order to answer Question 4, three sub-questions thatassess the government approval process in greater detailmust be considered:

Is oil and gas exploration and production (E&P) allowed?

Could E&P activities proceed without compromisingthe biodiversity values o the PA?

Can project authorization be granted?

The relationships among these sub-questions are shownin Figure 4 (which supplements Figure 2).

QUESTION 4.1

Is oil and gas exploration and production allowed?

The rst question is whether hydrocarbon activities areallowed under the legal structures or exceptions allowedunder those structures. The reason or knowing this isso that a company can operate within the law. As statedabove, companies should, as a basic premise, seek toavoid PAs. However, when technical options do not existto allow this, companies may choose to pursue operationsi the PA legislation explicitly allows such activities, orseek government authorization to conduct hydrocarbonactivities even i the PA legislation does not explicitlyauthorize them. It should be recognized that concernsmay be raised regarding the nature o any authorization

as noted in Question 2, the government process toallow industrial activities in PAs may lack clarity orconsistency, raising stakeholder concerns that suchactivities should not be undertaken irrespective o thelegal right to do so.

The type o designation that the protected area has beenassigned will guide the process that a company needsto ollow to determine i the government will allowhydrocarbon activities in that area. This guide explainsprocesses associated with:

WHY IS THIS QUESTION IMPORTANT?

Although, as noted above, companies have voluntary

options to exit at any stage in the business process,

they may also have the opportunity to avoid a

PA through the use of suitable technical options.

Alternative locations to the PA should be investigated

in order to:

Fully assess and consider all pre-operational options

for minimizing impacts on biodiversity.

Establish credibility: for a company to hold a credible

position when discussing options of operating in PAs

(such as avoidance, offsets, best practice, etc.), it is

important to have demonstrated to the conservation

community, governments, and society that all options

have been seriously considered and the only viable

alternative being chosen is to operate within thePA. Being able to articulate a clear decision-making

and risk assessment process that demonstrates

consideration of alternatives can be a powerful tool

in establishing credibility.

Avoid unnecessary costs and delays: operating

in PAs may result in incremental business and

reputational costs for a project. Identifying an

alternative that avoids the PA early in the planning of

the project can help avoid unnecessary costs.
mailto:%[email protected]:%[email protected]


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World Heritage Sites.

Ramsar Wetlands o International Importance.

Nationally, regionally, locally and privately designatedprotected areas.

Question 4.1.1

Is the PA inscribed as a World Heritage site?

Where the protected area within the companys projectarea is inscribed as a World Heritage site, the companyshould be amiliar with the guidelines and procedures othe World Heritage Convention as well as the national,regional and local laws, as the sites are designated undernational law in addition to being inscribed on the WorldHeritage List. As mentioned under Question 2.1, theWorld Heritage Convention provides protection ornatural and cultural properties o outstanding universalvalue. The Convention relies on the Parties to protectthe sites, which entails having the relevant orms olegislation, stang, unding and management plans (July

2002 Operational Guidelines) to protect the property.

Whether industrial activities are allowed in a WorldHeritage site depends on the legal and administrativestructures relevant to the site, such as nationallegislation, any regional or local regulations and the sitemanagement plan. But generally speaking, industrialactivities are viewed by the Convention as incompatiblewith World Heritage status and mining is specicallynamed as an activity that may lead to a natural or mixed

World Heritage site being listed in danger (July 2002Operational Guidelines). Thereore, avoiding WorldHeritage sites would be the best option in terms o easierreputation management and avoiding the potentiallylong and involved process o progressing with an option,where legally permitted to do so. There are currently noormal guidelines under the Convention or approachingoperations in such areas, so this Framework recommendsthat the company contact both the Ministry responsibleor managing World Heritage (e.g. Education, Culture or

Environment) and the World Heritage Centre in Paris.

Experiences with industrial developments and WorldHeritage sites indicate that there are essentially threeways industrial activities may be considered in thecontext o a World Heritage site:

Through the nomination process.

Through reactive monitoring and periodic reporting.

Through stakeholder identication.

The processes associated with these three mechanismsare illustrated in Appendix B.

Information sources for answering Question 4.1.1

National Government Ministry responsible or WorldHeritage.

Regional Departments responsible or World Heritage.

FIGURE 4. RELATIONSHIPS AMONG SUB-QUESTIONS IN QUESTION 4.


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World Heritage Centre:www.unesco.org/whc

World Heritage Advisory Bodies: The WorldConservation Union (IUCN), International Council onMonuments and Sites (ICOMOS), International Centreor the Study o the Preservation and Restoration oCultural Property (ICCROM).

Question 4.1.2

Is the PA a Ramsar site?

There are two aspects o the Ramsar Convention toconsider in the context o oil and gas operations:

First, does the planned, proposed or existing operationafect, or have the potential to afect the ecologicalcharacter/integrity o the Ramsar site? Under Article3.1 o the Ramsar Convention, the Contracting Partiesare obligated to ormulate and implement planningthat promotes the conservation o the Ramsar wetlandsand, as ar as possible, the wise use o wetlands within

their territory (or urther inormation on the wiseuse concept seewww.ramsar.org/wurc_index.htm). Aprecautionary approach is advised, and where impactsare likely or even possible, but unknown, it should beassumed there is a possible change in the ecologicalcharacter, determined on a site-by-site basis as

WHY ARE THESE QUESTIONS IMPORTANT?

Governments may have various options to authorize hydrocarbon activities within a PA. There may be formal processes

whereby governments can issue a permit for such activities if they are not explicitly prohibited, grant a formal exemption

to a prohibition where the legislation provides for an exemption (e.g. urgent national interests), change zoning within the

area, or agree to the re-designation or alteration of PA boundaries to allow hydrocarbon activities to occur outside the

area. Typically, governments will make such decisions having considered the environmental, social and economic trade-

offs of the potential hydrocarbon development, although governments may also choose to short-circuit the formal

process where such an approach is not explicitly prohibited by international laws or conventions. In some cases, the

government may not act in a way that is transparent and credible to concerned stakeholders. In addition, it is important

to recognize that conicts between government agencies regarding development and conservation priorities may be

reected in conicting regulatory provisions (such as one ministry prohibiting hydrocarbon activities in a PA, and another

authorizing them) or activities by one ministry to persuade another ministry to alter its regulations. Similar problems may

arise between federal and regional/local authorities.

Due to the potential signicant risks to biodiversity and corporate reputation, companies should seek to avoid PAs,

although in some cases governments may explicitly allow industrial activity (e.g. National Wildlife Refuges in the U.S.)

or invoke national interests to justify the presence of such activities. It is not the intent of this Framework to encourage

companies to seek exemptions, redesignation of area boundaries, or other means to obtain authorization to conduct

hydrocarbon activities in or near a PA where the relevant PA legislation does not explicitly authorize such activities.

Nevertheless, the reality is that a company may be inclined to undertake such efforts and that government may have

legal processes to grant such authorizations. Therefore, it is essential to note that risks for companies and biodiversity

can escalate in association with such activities. If key stakeholders perceive that a company is seeking to enter a PA, the

company should expect more vocal and intense opposition from such stakeholders.

The specic authorization approach may also have its own implications. If a PA boundary is redrawn to permithydrocarbon activities, it may be that a single project may not irretrievably compromise the PAs biodiversity values.

However, if the redrawn boundary opens the door to multiple projects, the actual and perceived risks to biodiversity are

likely to be greater, giving rise to increased stakeholder opposition. It will also increase the probability that the company

that originally sought the redesignation will be viewed as responsible for damage caused by subsequent projects not under

the companys control. This will, in turn, have potentially signicant implications for the companys reputation. Therefore,

if companies propose changes to designation or boundaries of PAs (where this can be done without compromising

biodiversity values), then it must be done via a transparent, rigorous, legal and objective process, taking into account

the cumulative and secondary impacts, if it is to be credible to key stakeholders. Throughout the process of gaining

government authorization, the company can voluntarily exit should issues arise that cannot be satisfactorily resolved.
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part o the application process or listing under theConvention.

Second, Ramsar Parties are expected to only consentto activities or developments that will cause loss ordamage to a Ramsar site i that activity is o urgentnational interest (see Appendix B). Thereore,

to operate within the spirit o the Convention it isimportant to know i the government has invoked theurgent national interest clause under the RamsarConvention, and to know that it ollowed due processin so doing.


National Government Ministry responsible or Ramsar.

Regional Departments responsible or Ramsar.

Ramsar Bureau:www.ramsar.org

Wetlands International Database:www.wetlands.org/

Question 4.1.3

Is the PA designated nationally, regionally, locally and/or

privately?

Protected areas that are designated under national,regional (both supra and sub-national), local or privateprocesses will have restrictions and regulations relatingto their designation. Companies need to determine

these on a case-by-case, country-by-country basisin consultation with ministries and other relevantstakeholders.

Governments may have various options to validlyauthorize hydrocarbon activities within a PA. Forexample, within certain countries there may be ormalprocesses whereby governments can issue a permit orsuch activities i they are not explicitly prohibited, granta ormal exemption to a prohibition where the legislationprovides or an exemption (such as or the nationalinterest), change zoning within the area, or agree to there-designation or alteration o protected area boundariesto allow hydrocarbon activities to occur outside the area.Typically governments will make such decisions havingconsidered the environmental, social and economictrade-ofs o the potential hydrocarbon development.However, while many conservation organizations andgovernment protected area agencies will recognize thatboundaries may not always be perect, not least becauseo the dynamism o ecosystems, changing boundaries ordesignations o protected areas is usually a dicult and

controversial process. For example, IUCN, in its WorldConservation CongressRecommendation 2.82, calledor proposed changes to protected areas boundaries orcategorization to be subject to procedures at least asrigorous as those involved in the establishment o theprotected area in the rst place. It should be noted anyeforts by a company (working with the Government)

to re-draw PA boundaries could present a signicantimpact to biodiversity as well as an increased risk tothe company. Invariably the risks will be greater tothe company and the impacts to the biodiversity moresignicant i the area is opened to a series o projects(which may or may not be oil and gas related, such aslogging or tourism development).

Compensatory measures may be part o the processo discussing possible boundary changes and/or re-categorization or may come up as a separate discussion.An example includes ofsets, such as establishing a und

or conservation, supporting the management o PAsand research, placing other territory under protection,reclaiming degraded land, or managing the area ointerest as a conservation zone. It is critical to discusspossible ofset options with relevant stakeholders toensure the planned ofset meets their concerns, does notnegatively impact local communities, and is viewed asadequate compensation.

Compensatory measures should not be a rst recourse,and should only be explored as an option ater havingexamined all possibilities or avoiding, minimizing and

mitigating impacts.

Further information on measures useful

for consideration as compensatory can be

found in Opportunities for Beneting

Biodiversity Conservation.


National Government Ministry responsible orProtected Areas.

National and Regional Departments responsible orProtected Areas.

IUCN World Commission on Protected Areas:http://www.wcpa.iucn.org/

IUCN Programme on Protected Areas.
http://www.ramsar.org/http://www.wetlands.org/http://www.theebi.org/pdfs/opportunities.pdfhttp://www.theebi.org/pdfs/opportunities.pdfhttp://www.theebi.org/pdfs/opportunities.pdfhttp://www.theebi.org/pdfs/opportunities.pdfhttp://www.theebi.org/pdfs/opportunities.pdfhttp://www.wcpa.iucn.org/http://www.wcpa.iucn.org/http://www.wcpa.iucn.org/http://www.theebi.org/pdfs/opportunities.pdfhttp://www.theebi.org/pdfs/opportunities.pdfhttp://www.theebi.org/pdfs/opportunities.pdfhttp://www.theebi.org/pdfs/opportunities.pdfhttp://www.theebi.org/pdfs/opportunities.pdfhttp://www.wetlands.org/http://www.wetlands.org/http://www.ramsar.org/


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QUESTION 4.2

Could exploration and production activities proceed without

compromising the biodiversity values of the PA?

Even though it might be legally possible to undertakean oil or gas operation within a PA, it is imperative thatthe likelihood o the project having negative impacts on

the biodiversity values o the PA is assessed. There maybe instances when those impacts may be too signicant,such that the values o the PA would be compromised,even though it would be legal to undertake the oil/gasoperation, thereby presenting a greater reputational riskto the company.

First, the company will need to work with others (suchas government, academics, local communities, NGOs,etc.) to determine the values o that particular PA (e.g.an area important or migratory species, habitat or arare/endangered species, an area providing important

ecosystem services and goods to local communities).Second, the company will need to identiy the potentialimpacts o the project upon those values (normallydone through the ESIA process, which may include anEnvironmental Prole, Rapid Assessment Program andmore detailed ESIA).

See also Integrating Biodiversity into Environmental

and Social Impact Assessment Processes.

Next, the ull range o mitigation measures will needto be identied to reduce the impacts to a minimumacceptable level (see Question 7). Finally, aterassessing all risks and impacts, i the governmentallows the company to operate in a protected area andthe company decides to do so, it is advised to ollow aormal transparent procedure to identiy acceptableofsets. Undertaking a unilateral discussion only withthe ministry responsible or oil and gas can lead to a lacko consultation and additional risks to the business. Byollowing a ormal transparent process, the company may

maintain credibility among stakeholders.

Information sources for answering Question 4.2

National Government Ministry responsible orProtected Areas.

National and Regional Departments responsible orProtected Areas.

Environmental and Social Impact Assessments.

QUESTION 4.3

Can project authorization be granted?

Project authorization by the government is not a oregoneconclusion irrespective o the answers to Questions4.1 and 4.2, and a company should exercise signicantcare even i it receives such authorization. The various

possible outcomes are examined in Figure 4.

Where a government allows oil and gas exploration, itmay exceptionally invoke urgent national interest andshort-circuit the process o assessing whether or how oiland gas operations might impact biodiversity in the PA.However, this scenario is likely to be a rarity, and one thata conscientious company would respond to by voluntarilyundertaking a detailed impact assessment on which tobase its own judgment o whether to proceed.

In other cases, the government may only authorize oil

and gas activities on the basis o existing legal permissionwhen studies are undertaken to demonstrate that nosignicant impacts on biodiversity values in or aroundthe PA will arise. The company may still need to considerthe business risks that may arise rom operating in a PApost-authorization, even i risks to biodiversity are absent.

In cases where there is no explicit legal permission oroperations in PAs, and studies indicate that there willbe no signicant impacts on biodiversity values, thegovernment may or may not consider re-designationand authorization at the companys request, depending

on other actors and pressures that it aces, such asstakeholder concerns, ensuring compliance withoverarching international agreements and conventionsand its own economic, social and environmentalpriorities (including consideration o urgent nationalinterests).

Finally, in cases where there is no legal basis orindustrial activity in PAs and studies indicate that theremay be signicant impacts, it is almost certain thatgovernmental authorization would not be given, unless

or reasons o urgent national interests. It is then up toeach individual company to evaluate the potential risk oproceeding with the decision.
http://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdf


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QUESTION 5.

Can the biodiversity values of the Conservation Priority Area

Not Currently Under Protection (CPA) be conrmed?

CPAs can be dened in many ways. Astarting point is to take areas eitheridentied by Governments as parto their national planning processesor recognized by conservationorganizations as a preliminaryindication o high biodiversity value.However, it is important to recognizethat this is not a comprehensive

denition o biodiversity value andthe related need or conservation. Prioritizing areasor conservation is a large, subjective concept and maydepend on local needs and concerns that exist within aregion. Thereore, it is necessary to conrm the valuesassociated with such priorities.

At the national level, National Biodiversity Strategies andAction Plans (NBSAPs) prepared under the Conventionon Biological Diversity (Article 6) may include a chapteron habitats that are a priority or conservation. Article6 creates an obligation on governments or nationalbiodiversity planning. A national strategy will reecthow the country intends to ulll the objectives o theCBD in light o specic national circumstances, and therelated action plans will constitute the sequence o stepsto be taken to meet these goals. More than 145 countrieshave to date either completed or drated their NBSAPs.The list o countries and their respective NBSAPs may beviewed atwww.biodiv.org/world/reports.asp?t=intro.

Designations can cover enormous areas o land orwater. (For instance, in the case o the Ecoregions andHotspots, the entire country o Madagascar is included.)Essentially, these designations provide an indicationthat the companys proposed project area may contain anarea o high biodiversity value. The company should besure to examine its specic area o interest to determine

i it holds some o the characteristics or which theoverall region was originally classied. Moreover,the company should be aware o other limitations othese assessments, mainly the lack o recognition obiodiversity values associated with cultural landscapes(such as in Europe), and the lack o attention to cultural/spiritual values that indigenous and traditional peoplesattribute to natural areas. CPAs are oten established onecological rather than social priorities, and the companyshould consider the ull range o potential impacts as itproceeds with its assessments.

Examples o CPAs are described in Question 1.However, it is important, to understand the criteriaused in dening CPAs, as this will enable a company tounderstand how to examine each area in the context o itsunique value.

The rst step in determining i there are highbiodiversity values in the companys project area is toidentiy why the overall region or area was originallycategorized as a CPA. As noted above, the criteria oreach type o CPA are quite variable. Example criteria mayinclude:

Are there any key ecosystem services/unctions ocritical importance in the concession (e.g. breedingand eeding areas or global and regional migratorybird species or migration corridor or terrestrialspecies, critical watershed, carbon capture, soilstabilization)?

Are there any other uses o special concern:

Key hunting and/or shing grounds or localcommunities?

Areas with signicant archaeological/spiritual/religious/historical/traditional value?

Areas used or ethno-botany (e.g. traditionalmedicines)?

Areas that have an amenity or spiritual value?

Areas that have high research/education potential?


It is important that a company knows if a project might

take place in a CPA, because such areas are regarded

as valuable, threatened and/or fragile by governments,

scientic and/or conservation organizations. The risks

to the company from an operational or reputation

perspective may be high if these areas are not

recognized.

However, given the large geographical extent of some of

these areas, it is important to conrm the biodiversity

values within them. They are not homogeneous and will

contain particular areas of higher or lower values; so

potential operational plans may be adjusted accordingly.
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At the local level, is the habitat/ecosystem an ecologicalcorridor between other isolated habitats o ecologicalimportance?

Is the ecosystem particularly vulnerable to theintroduction o alien species (e.g. on an island oranother isolated habitat)?

Is the habitat/ecosystem representative o thatwithin the companys project area (i.e. is the habitat/ecosystem well-represented or is it unique)? Thiswill give some idea as to the distinctiveness o thatparticular habitat.

Companies may be advised to undertake testing obiodiversity values during the very early stages o theproject, even where this requires additional nancialsupport and staf time. In cases where there is littleor no inormation available, or the inormation is

contradictory, best proessional judgment should be usedto identiy the initial level o efort required to conrmbiodiversity values o a particular area. The results o thescience should then direct the need or additional worki values are initially deemed to be high or whateverreason. I there is no access to proessional judgment in-house, third party assistance should be sought.

I it is determined that the biodiversity values are high,then a particular response should be triggered. Toconrm these values may involve commissioning anESIA or linking up with third party studies. This may lead

to a more thorough biodiversity baseline and monitoringprogram as the project develops.

Information sources for answering Question 5

National Biodiversity Strategies and Action Plans:www.biodiv.org

Conservation International Biodiversity Hotspots andWilderness Areas:www.biodiversityhotspots.org

WWF Global 200 Ecoregions:http://www.panda.org/resources/programmes/global200/pages/mainmap.htm

The Nature Conservancys Conservation by Design Last Great Places: http://nature.org/aboutus/howwework/

Birdlie International Important Bird Areas:http://www.birdlie.org/sites/whatareibas.cm

Centres o Plant Diversity: http://www.iucn.org/themes/ssc/plants/centres.htm

Species Survival Commission:http://www.iucn.org/themes/ssc/sisindex.htm

Inormation on rare ecological resources (e.g. IUCN

Red List: www.redlist.org

National publications.

National academic research institutes (includingMuseums o Natural Sciences).

National NGOs, community groups and otherstakeholders.

Field guides.

Ministries (e.g. Finance, Agriculture, Health, Trade,Fisheries).

QUESTION 6.

Are there any signicant biodiversity issues?

I the companys early screeningdoes not identiy any designatedPAs or CPAs within its project area,

then the standard ESIA processshould identiy whether there are anysignicant biodiversity issues.

Prediction o impacts on biodiversityis dicult. Understanding how anecosystem changes through time,even without an oil and/or gas project, is not simple.An important rst stage in gaining an understandingo how the system might be changed by the proposed


It is extremely important to identify any signicant

biodiversity issues as early as possible in the ESIA

process. The company can then take steps to manage

the potential impacts, identify what the residual

impacts may be and determine what the enhancement(compensatory) measures might be. If these are

ignored, there are increased environmental risks with

the associated potential reputation issues, and the

prospect of technically difcult and costly retrospective

mitigation. Once damaged, it may be extremely difcult

to recover a companys positive reputation.
http://www.biodiv.org/http://www.biodiversityhotspots.org/http://www.panda.org/resources/programmes/global200/pages/mainmap.htmhttp://www.panda.org/resources/programmes/global200/pages/mainmap.htmhttp://nature.org/aboutus/howwework/http://nature.org/aboutus/howwework/http://www.birdlife.org/sites/whatareibas.cfmhttp://www.iucn.org/themes/ssc/plants/centres.htmhttp://www.iucn.org/themes/ssc/plants/centres.htmhttp://www.iucn.org/themes/ssc/http://www.redlist.org/http://www.redlist.org/http://www.iucn.org/themes/ssc/http://www.iucn.org/themes/ssc/plants/centres.htmhttp://www.iucn.org/themes/ssc/plants/centres.htmhttp://www.birdlife.org/sites/whatareibas.cfmhttp://nature.org/aboutus/howwework/http://nature.org/aboutus/howwework/http://www.panda.org/resources/programmes/global200/pages/mainmap.htmhttp://www.panda.org/resources/programmes/global200/pages/mainmap.htmhttp://www.biodiversityhotspots.org/http://www.biodiv.org/


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project is to take a snap-shot o the existing conditions the baseline environment. Oten the main dicultyassociated with assessing biodiversity baselines is thelimited time within the ESIA or a thorough assessment.This results in issues such as migratory patterns andseasonal variations not being addressed properly, makingit still more dicult to develop an accurate assessment.

This is not to say, however, that baseline surveys withina standard ESIA should not be conducted, but it willbe a case o proessional judgment (either in-house orexternal) o how detailed they should be. Utilizing theskills o an expert within the ESIA team can expedite boththe eldwork and the interpretation o related ndings.In addition, consultation with local stakeholders such aslocal communities (harnessing local knowledge such asethno-botany), academics and local organizations willhelp to build a more accurate baseline.

See also Integrating Biodiversity into Environmental

and Social Impact Assessments.

Having established a biodiversity baseline and discussedit with stakeholders, it is then necessary to worksystematically through the various activities and aspectso each development alternative to determine the likelyefects o those activities on the baseline, making sure to:

Take into account the nature o the impact (director indirect, long-term or short-term, efects romcumulative impacts, etc.).

Identiy the type o impact (positive enhancingbiodiversity; negative causing biodiversity loss; orneutral no net change).

Determine the likely magnitude o the residual impact(x hectares/acres o an ecosystem or habitat, x numbero individuals o a species, etc.).

Take into account the efects that could be associatedwith emergency situations so as to consider such risksin the design o appropriate emergency response plans.

See also Biodiversity Indicators for Monitoring

Impacts and Conservation Actions and Good

Practice in the Prevention and Mitigation of

Primary and Secondary Biodiversity Impacts.

Social change also needs to be considered or example,how social changes caused by the project might afectbiodiversity resources, either directly or indirectlyby afecting other components o the ecosystem. Anexample o an indirect change would be i the projectresulted in an inux o people into an area, and this inturn resulted in the clearance o orest or subsistence

arming, or increased hunting, poaching or logging.Another example would be i the orest clearance resultedin signicant sediment loads in local watercourses,resulting in the smothering o aquatic auna and ora.Impacts such as these need to be assessed to determinetheir signicance, and this inormation needs to be edinto the overall decision-making ramework.

See also Negative Secondary Impacts from Oil

and Gas Development.

In predicting impacts, it is necessary to take into accountthe:

Ability o an ecosystem/habitat or species to recover.

Local value and role o biodiversity.

Temporary nature/cycles o some processes (e.g.ooding, migrations etc).

Global, national or local signicance (or importance)

o the biodiversity component and other nationalvalues or ecological processes.

For the purposes o an ESIA, it is useul to place somesort o value (low, moderate, high) on the componentsthat might potentially be afected. Although this isto some extent subjective, expert judgment (andstakeholder engagement) will ensure a reasonable degreeo consensus on the intrinsic value o a resource. Expertjudgment can also play an important role in designing amonitoring program that systematically assesses impactsagainst the baseline. This will assist in determiningadaptive measures to enhance operations while limitingtheir negative impacts.

It is essential that the criteria by which impact signicanceis judged be clearly dened and set out in the ESIA(unortunately, this is oten not done in manyESIAs, due to the apparent diculty in determiningsignicance). Setting the criteria or what amounts tohigh (major), medium (moderate) or low (minor)magnitude impact or a particular project involves
http://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/indicators.pdfhttp://www.theebi.org/pdfs/indicators.pdfhttp://www.theebi.org/pdfs/indicators.pdfhttp://www.theebi.org/pdfs/practice.pdfhttp://www.theebi.org/pdfs/practice.pdfhttp://www.theebi.org/pdfs/practice.pdfhttp://www.theebi.org/pdfs/practice.pdfhttp://www.theebi.org/pdfs/impacts.pdfhttp://www.theebi.org/pdfs/impacts.pdfhttp://www.theebi.org/pdfs/impacts.pdfhttp://www.theebi.org/pdfs/impacts.pdfhttp://www.theebi.org/pdfs/impacts.pdfhttp://www.theebi.org/pdfs/impacts.pdfhttp://www.theebi.org/pdfs/practice.pdfhttp://www.theebi.org/pdfs/practice.pdfhttp://www.theebi.org/pdfs/practice.pdfhttp://www.theebi.org/pdfs/practice.pdfhttp://www.theebi.org/pdfs/indicators.pdfhttp://www.theebi.org/pdfs/indicators.pdfhttp://www.theebi.org/pdfs/indicators.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdfhttp://www.theebi.org/pdfs/esia.pdf


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deciding what amount o change is acceptable in thatcase (sometimes reerred to as the limits o acceptablechange). Ideally, these criteria will be derived romappropriate objectives/targets or individual habitatsand species (e.g. targets sets in national, regional or localBiodiversity Strategies and Action Plans [BSAPs]) and/orrom stakeholder engagement. Of-the-shel criteria

denitions should not be encouraged.

Where there are no appropriate targets/natureconservation objectives, specic criteria will need tobe developed on a case-by-case basis based on expertopinions. Two examples o criteria used to assesssignicance are based on habitats and species:

Assessing Impacts to Habitat

Major negative impact: the proposal (either onits own or together with other proposals) may

adversely afect the integrity o an area/region,by substantially changing in the long term itsecological eatures, structures and unctions, acrossits whole area, that enable it to sustain the habitat,complex o habitats and/or population levels ospecies that makes it important. The whole area canirreversibly change into a diferent landscape.

Moderate negative impact: the area/regions integritywill not be adversely afected in the long term, butthe efect on the site is likely to be signicant inthe short to medium term to some, but not all, o

its ecological eatures, structures and unctions.The area/region may be able to recover throughnatural regeneration and restoration to its state atthe time o the baseline study.

Minor negative impact: neither o the above applies,bu

biodiversity & oil&gas site selection process _guidelines ebi2003

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