environmental manual jan 21 2009 (2).pdf

7/26/2019 Environmental Manual Jan 21 2009 (2).pdf

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Environmental Manual

for petroleum activities

Norwegian Ministry of Environment

The Oil for Development Programme, Norad

Petrad


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FOREWORD

This Environmental Manual has been produced primarily to form a common foundation forproviding advice and training to governments in developing countries by Norwegianenvironmental authorities and others, under the auspices of the Oil for Development Programmeat Norad, the Norwegian Directorate for Development Cooperation. It summarizes many of theexperiences gained through more than 40 years of petroleum activities in Norway, and draws alsoupon experiences from other developed and developing countries. However, it is the hope that theManual may be of direct use to partner countries when they shall formulate, regulate or superviseenvironmental 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 mostwelcome. The Manual will be revised and a more developed version will be issued within a fewmonths. 1

The Manual has been developed by a group of representatives from the Ministry of theEnvironment, the Directorate for Nature Management and the Norwegian Pollution ControlAuthority, 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)andPetrad, the main training provider (www.petrad.no).

The Norwegian Ministry of the Environment

1Please submit comments to:Terje Lind, Deputy Director GeneralMinistry of the Environment

P O Box 8013 Dep, NO-0030 NorwayTel +4722245922email: [email protected]
http://www.miljo.no/http://www.miljo.no/http://www.miljo.no/http://www.norad.no/ofdhttp://www.norad.no/ofdhttp://www.norad.no/ofdhttp://www.petrad.no/http://www.petrad.no/http://www.petrad.no/http://www.petrad.no/http://www.norad.no/ofdhttp://www.miljo.no/


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Environmental Manual- DRAFT January 21 2009

Date : 2009-01-21 i

Table of Contents

1 INTRODUCTION ............................................................................................................. 2

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

3 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 gasvalue chain ................................................................................................................ 10

4 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

5 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 ...................................... 215.2.2 Regional SEA/IA for existing and future activities ........................................ 225.2.3 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 .............................................................................. 295.9 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 APETROLEUM DEVELOPMENT PROJECT .............................................................. 35

6.1 Introduction .............................................................................................................. 35

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


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7 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

8 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 gasexploration ................................................................................................................ 41

8.3 Elements of successful sustainable development ..................................................... 428.3.1 Transparency ................................................................................................... 428.3.2 Stakeholder dialogue ....................................................................................... 448.3.3 Compensation ................................................................................................. 448.3.4 Civil Society ................................................................................................... 458.3.5 Human Rights (incl Minorities) ...................................................................... 468.3.6 Operator CSR initiatives ................................................................................. 47

9 REFERENCES ................................................................................................................ 48

Appendix 1 Global agreements and conventions


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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


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1 INTRODUCTION

Background

The Oil for Development programme was established in 2005 by Norad, the Norwegian Agencyfor 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 economicgrowth, 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, revenuemanagement and environmental management. Increased focus on environmental protection andincreased demand from cooperating countries for guidance on these issues have created a needfor 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 thedevelopment of petroleum resources so that these can be taken into consideration whendeveloping countries plan and carry out petroleum related activities. Further, the purpose of thisManual 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 institutionsinvolved in giving advice to the cooperating countries in the field of environment. It is assumedthat also the staff of Oil for Development at Norad, consultants and other cooperating partnerswill 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 developingcountries 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 (chapter3)-The Manual provides anoverview of the main environmental aspects related to the development of petroleumresources, 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 associatedwith petroleum activities.

Environmental toolkit (chapter5)- The Manual provides an overview of the main toolsthat 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 Norwayhowever international guidelines are given where relevant.

The overall outline of the Manual and the underlying logic is further explained inTable 1-1


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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

oil and gas value chain?

Chapter2 The oil and gas value chain

What are the environmental aspects related tothese activities, and what are the potential impactson the environment?

Chapter3 Environmental aspects andpotential impacts

What management measures can be used to avoid,minimize and mitigate these impacts?

Chapter 4Environmental policy andlegislation

Chapter5 Environmental toolkit

How can the environmental sensitivity beassessed at an early stag of a planned petroleumdevelopment project?

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

Chapter6 A guide to assess theenvironmental sensitivity of a petroleumdevelopment project

How can climate considerations be made inpetroleum activities?

Chapter7 Guidance on climateconsiderations within OfD

Applying a more holistic approach- how can

sustainable local and regional development beensured?

Chapter8 Ensuring sustainable local

and regional development


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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 ofthe oil and gas value chain. Environmental impacts have an origin in the activities that are carriedout. Hence, this section serves as background information to chapter 3Environmental aspectsand potential impacts.

For the purpose of this Manual, the oil and gas value chain is divided into seven different phasesas shown inFigure 2-1.An overview of main activities along the oil and gas value chain is giveninTable 2-1.

DECOMMISS-

IONING

GEOLOGICAL,

RESOURCE,

ENVIRONMENTAL

MAPPING

OPENING OF NEW

REGIONS/FIELDS

FIELD/

FACILITY

DEVELOPMENT

OPERATIONTRANSPORTATION

REFINING

EXPLORATION DECOMMISS-

IONING

GEOLOGICAL,

RESOURCE,

ENVIRONMENTAL

MAPPING

OPENING OF NEW

REGIONS/FIELDS

FIELD/

FACILITY

DEVELOPMENT


REFINING

EXPLORATION

Figure 2-1 The Oil and gas value chain

Table 2-1 Overview of main activities along the oil and gas value chainValue chain Description of main activities

Geological,resource,

environmentalmapping

Geological mapping, including desk study and seismic surveys, identify areas with favourablegeological 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 metresthe vessel moves.

Seismic surveys onshore are conducted either by shot-hole method (using dynamite) orvibroseis (using a generator that hydraulically transmits vibrations into the earth).

Mapping of resources and environment is performed to establish a knowledge base forenvironmental protection.

Opening of newregions/fields

The government 1) opens new regions (areas) for exploration drilling, 2) issue productionlicenses 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 whileappraisal drilling may improve quantification of the reserves. Mobile rigs commonly usedoffshore include jack-ups and semi-submersibles, whilst in shallow protected waters bargesmay be used. For land-based operations a pad is constructed at the chosen site to accommodatedrilling 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 theorder of one or two months. Where a hydrocarbon formation is found, initial well tests-

possibly lasting another month, are carried out, often generating oil, gas and formation waterthat need to be disposed of, followed by the drilling of more wells to determine the size andextent of the field (appraisal wells).

Field and facility Field and facility development involves drilling of production wells and constructing


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development platforms/FPSO/subsea systems, production facilities, pipelines and infrastructure fortransportation of oil and gas.

Operation Oil and gas is produced from the reservoir through formation pressure, artificial lift (water orgas), and possibly advanced recovery techniques, until economically feasible reserves aredepleted. 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). Productionfacilities process the hydrocarbon fluids and separate oil, gas and water. Produced water istreated and discharged or re-injected.

Transportationand refining

Oil and gas is transported to refinery where crude oil is separated and converted into endproducts such as high-octane motor fuel (gasoline/petrol),diesel oil,liquefied petroleum gases(LPG), jet aircraft fuel,kerosene,heatingfuel oils,lubricating oils,bitumen, andpetroleumcoke.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 isalso 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
http://en.wikipedia.org/wiki/Octane_ratinghttp://en.wikipedia.org/wiki/Gasolinehttp://en.wikipedia.org/wiki/Diesel_oilhttp://en.wikipedia.org/wiki/Liquefied_petroleum_gashttp://en.wikipedia.org/wiki/Kerosenehttp://en.wikipedia.org/wiki/Fuel_oilhttp://en.wikipedia.org/wiki/Lubricating_oilhttp://en.wikipedia.org/wiki/Petroleum_cokehttp://en.wikipedia.org/wiki/Petroleum_cokehttp://en.wikipedia.org/wiki/Petroleum_cokehttp://en.wikipedia.org/wiki/Petroleum_cokehttp://en.wikipedia.org/wiki/Petroleum_cokehttp://en.wikipedia.org/wiki/Lubricating_oilhttp://en.wikipedia.org/wiki/Fuel_oilhttp://en.wikipedia.org/wiki/Kerosenehttp://en.wikipedia.org/wiki/Liquefied_petroleum_gashttp://en.wikipedia.org/wiki/Diesel_oilhttp://en.wikipedia.org/wiki/Gasolinehttp://en.wikipedia.org/wiki/Octane_rating


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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 tothe 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 oiland gas operations to cause impact must be assessed on a case-by case basis, since differentoperations, in different environments, in different circumstances may produce large variations inthe magnitude of a potential impact (E&P Forum/ UNEP 1997). With management andapplication of best practice, potential impacts can be avoided, minimized or reduced (relevantmanagement and assessment tools are described in section4).

Significant environmental aspects for oil and gas sector have been identified, using the followingdefinition 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, whileaspect 6 relates to the unwanted events.

Environmental aspects can result in impacts on the environment that can be either direct orindirect. 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 towater contamination


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Environmental impacts can also result in socioeconomic impacts. The relationship betweenaspects and impacts are shown inFigure 3-1.

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

The following sections are based on E&P Forum/ UNEP reportEnvironmental Management inoil 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 elaboratedbelow.

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 inTable 3-1.

Table 3-1 Wastes produced in the oil and gas life cycleValue chain Wastes produced

Geological,resource,environmentalmapping

The primary wastes from seismic operations include domestic waste, sewage, possiblyexplosive wastes, lines, cables and vehicle (including ship) maintenance wastes.

Opening of newregions/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 fluidsand production testing wastes. Other wastes include excess drilling chemicals and containers,construction materials (pallets, wood, etc), process water, fuel storage containers, powerunit/transport maintenance wastes, scrap metal and domestic and sewage wastes.

Environmentalimpact

Socioeconomicimpact

Environmentalaspect


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Field and facilitydevelopment

The primary wastes from construction activities include excess construction materials, usedlubricating oils, paints, solvents, scrap metal, sewage and domestic wastes.

Operation In addition to the wastes listed in Exploration and Field and facility development, the mainwastes from operations include produced water, drain water, flare and vent gas, productionchemicals, workover wastes, e.g.brines, and tank or pit bottoms.


The primary wastes from refineries are asbestos, acid tars, sludges with a high lead content andmany oil contaminated materials (for instance oily waste and sludges from water clean-upoperations), waste biomass from effluent treatment plants, scrap metal, spent catalytic crackingcatalyst 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/UNEP1997):

Produced water. Typical constituents are inorganic salts, heavy metals, solids, productionchemicals, hydrocarbons, benzene, PAHs and naturally occurring radioactive material.

Drilling fluids and cuttings. Typical constituents of water-based mud and cuttings are clayand bentonite with metals bound in minerals (Barium, Cadmium, Zink, Lead). Oil-basedmud and cuttings contain hydrocarbons. Certain drilling fluids and cuttings have high pHand 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 equipmentAirborne particulates from soil disturbance during construction and from vehicle traffic


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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 occurand depend upon the sulphur content of the hydrocarbon and diesel fuel, particularly when usedas 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 fromproduction operations, but other GHG should also be considered, for example methane. Methaneemissions primarily arise from process vents and to a lesser extent from leaks, flaring andcombustion.

The primary sources of emissions to air from refineries are (Concawe, 1999):

Process furnaces, boilers, gas turbines

Fluidised Catalytic Cracking (FCC) regeneratorsFlare systemsIncineratorsSulphur Recovery Units (SRU)Coke plantsStorage and handling facilitiesOil/water separation systemsflanges 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 becaused 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, naturaldisasters, war and sabotage. The spill size depends on the volume that potentially can bedischarged and the measures taken to reduce the spill size. The spill duration is an importantfactor regarding the size of a discharge. Thus, efficient and quick response to reduce spill size isimportant.


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Noise/vibration

The primary sources of noise/vibration are:

Seismic surveys. Shooting seismic onshore involves the use of explosives. Seismicsurveys 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 chainTable 3-2provides an overview of the main environmental aspects and potential environmentalimpacts along the oil and gas value chain. The table also provides an overview of potentialsocioeconomic impacts associated with environmental impacts. Impacts are split into direct andindirect impacts.

The impacts given in the table are potential impacts and, with proper care and attention, may beavoided, minimized or mitigated. Numerous relatively small projects may alone have relativelyminor 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 fromnumerous human-induced, small scale alterations. Cumulative impacts occur first, through

persistent additions or losses of the same materials or resource, and second, through thecompounding effects as a result of the coming together of two or more effects. Cumulativeimpacts may be hard to foresee. Thus, cumulative impacts of a development must be identifiedand managed the same way as direct impacts, and be incorporated into land use and coastal zonemanagement.


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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

PotentialEnvironmental impact

Indirect

PotentialSocioeconomic impact

Direct or Indirect

Mitigating measures (notcomplete)

Aerial Survey Aircraft Noise Disturbance to wildlife.

Short-term, transient

Disturbance to localpopulation.

Schedule operations duringleast sensitive periods. Avoidsensitive areas.

Seismicoperations

(onshore)

Seismicequipment(drilling,

explosions)

Noise/vibration Disturbance to wildlife.Short-term


Schedule operations duringleast sensitive periods. Avoidsensitive areas. Noise

attenuation on engines.Base camps Footprint Loss of flora due to vegetation

clearing.

Erosion due to soil/ vegetationcleared.

Changes in surfacehydrology and drainage

pattern

Habitat damage.

Loss of biodiversity.


Influx/settlement throughnew access routes(potential long termimpact)

Land use conflict

Immigration of labour

Select site to minimizeclearing of vegetation and topsoil. Minimize camp size.Encourage naturalrehabilitation by indigenousflora. Selectively use heavymachinery to minimizefootprint, noise, emissions toair. Use existing infrastructure.

Minimize waste, and ensuresafe handling and disposal ofwaste. Ensure safe handlingand storage of fuels,chemicals.

Contingency plans

Noise Disturbance to local environment.Short-term, transient.

Waste disposal

Discharge of sewage

Accidental discharge (fuel,chemicals)

Soil and water contamination.

Emission to air (powergeneration)

Degradation of air quality

Line cutting Footprint Loss of flora due to vegetationclearing.

Possible erosion due to vegetation

clearedMainly short-term and transient

Changes in drainagepatterns and surfacehydrology.


Minimize clearing ofvegetation. Minimize linewidth. Hand-cut lines tominimize disturbance. Usedog-legs to minimize use asaccess.


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Activity Source Environmental aspect Potential Environmental impacts

Direct


Indirect


Direct or Indirect


Seismicoperations

(offshore)

Seismicequipment

Noise (acoustic sources) Physiological effects. Disturbanceto marine organisms.

Short-term and transient

Behavioural impacts towildlife

Schedule seismic surveyduring least sensitive periods,e.g. time restrict seismicactivity in spawning areas forimportant fish species, and inareas where concentratedspawning journeys take place.

Vessel operation Emissions to air from engines

Discharges to ocean of bilges,sewage

Accidental discharge (fuel,chemicals).

Waste disposal on shore


Contamination of marineenvironment.

Contamination at on-shore wastedisposal site.

Low-level, transient

Conflict with other

resource users (e.g.fishing). Short-term,transient.

Contingency planning for oil

spills and loss of equipment.Safe disposal of waste and oilywater.

Label and safeguard towedequipment.

Stay on survey track to avoidunwanted interactions.

Exploration(onshore)

Site preparation,construction ofroads and camp

Land use and Footprint

Emissions to air from earthmoving equipment

Accidental discharge (fuel,chemicals)

Noise

Loss of flora due to vegetationclearing.

Possible erosion due to vegetationcleared.

Degradation of air quality.

Soil, surface water and groundwater contamination.

Disturbance of wildlife

Short-term provided adequatedecommissioning and rehabilitation

Changes in surfacehydrology and drainage

pattern

Habitat damage.

Loss of biodiversity

Disturbance of localpopulation.


Land use conflict

Aesthetic visual intrusion

Select least sensitive sitelocation in dialogue withstakeholders, close to existingaccess roads and using existinginfrastructure (water, sewage)if possible.

Schedule construction duringleast sensitive periods.

Minimize cleared area and sizeof site. Plan ahead for optimalsite restoration, reusingremoved vegetation and soil.

Ensure proper drainage.Consider drilling method thatminimizes footprint.

Prevent unauthorised use ofaccess roads.

Protect soil, surface andground water from pollution:Seal areas to be used for mudmixing, fuel and chemicalstorage; any mud and burn pits


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utilised for well test operationsmust be lined and bunded, or

pits replaced by tanks.

Camp andoperation

Use of local water sources

Discharges to soil and water fromwell test operations (muds,cuttings, produced water, mud

pits).

Discharges to soil and water fromcamp (sewage, grey water,drainage

Accidental discharges of oil, fuel,chemicals (blow-out, leakages)

Waste disposal of oily muds andcuttings by landfarming, pits.

Emissions to air from plantequipment, transport, well testoperations and flaring

Noise, vibration and extraneouslight (drilling, camp, helicopter,vehicle traffic)

Depletion of local water sources,lowering of ground water table

Soil, surface water and groundwater contamination


Disturbance to wildlife

Short-term, transient.

Habitat damage.


Disturbance andinterference to local

population

Land use conflicts

Water conflicts

Interaction betweenworkforce and local

population.

Immigration

Employment

Hunting

Poaching

Fishing

Local infrastructure(education, roads,services)

Short-term, transient.

Use local infrastructure forwater supply, sewage andwastes when possible.Minimize water use andmaximize water recycling inareas of water shortage.

In remote areas without accessto infrastructure, case by casesolutions must be designed to

minimize impacts, e.g. soakaway/septic tank for sewage,safe burial or incineration ofwastes, monitoring of alldischarges/emissions.

Use low-toxic water-baseddrilling muds.

Ensure machinery andequipment are properlycladded for noise. Shade lightsources and direct onto sitearea.

Control workforce activities interms of interaction with local

population, use of localresources.

Exploration(offshore)

Operations Discharges to marine environmentfrom well test operations (muds,cuttings, produced water).

Other discharges to marine

environment (wash water,drainage, sewage, sanitary andkitchen wastes).

Accidental discharge of oil,chemicals (blow-out, leakages).

Disposal of oily muds and cuttingson onshore waste disposal sites

Emissions to air (burning, flaring)

Noise (helicopter, vessel

Contamination of marineenvironment (sediment and seawater)

Contamination of soil, ground waterand water at onshore waste disposalsite



Loss of access anddisturbance/conflictswith other marineresource users

Local infrastructure(ports, roads).

Local infrastructure inconnection with onshorewaste disposal

Disturbance of localpopulation fromhelicopter and vesselmovements.

Schedule exploration duringleast sensitive periods.

Select least sensitive location.

Treatment of all aqueouswastes prior to discharge:

Use low toxic water-baseddrilling muds.

Safe handling and storage ofwastes for onshore disposal.

Use efficient and maintainedwell test burners. Control H2Semissions.


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movement) Short-tem and transient.

Activity Source Environmental aspect Potential Environmental impacts

Direct


Indirect


Direct or Indirect


Field/facilitydevelopment

(onshore)

Roads, sitepreparations,pipelines

Land-use and footprint

Noise

Emissions to air (earth works)

Barriers to wildlife movement

Erosion due to vegetation clearance

Disturbance of wildlife


Long term impacts

Long term loss of habitat


Changes to surfacehydrology

Disturbance due to traffic

Immigration

Impact on localinfrastructure

All aspects identified forexploration drilling should beapplied to permanent sites andaccess roads, with particularconsiderations for long termdisturbance and effect onenvironment, infrastructureand local population. Siteselection and preparation

planning should includeconsiderations of eventualdecommissioning andrestoration.

Operation

(onshore)

Use of local water sources

Discharge from well operations(drill cuttings, muds, producedwater).

Discharges, others (drainage,sewage, sanitary and kitchenwastes)

Accidental discharge of oil,chemicals (blow-out, leakages)

Waste disposal of oily muds andcuttings by landfarming, pits.

Emissions to air from power andprocess plant (waste gases,flaring).

Noise/vibration

Depletion of local water sources



Disturbance of wild life

Long term impacts.


Loss of Biodiversity

Global warming

Ozone depletion

Demand on localinfrastructure (water,sewage, solid wastedisposal).

Labour force

Employment

Education

Medical and otherservices

Local economy

Effects on indigenous

populations.

Land-use conflicts

Water conflicts

Visual and aestheticintrusion.

Long term impacts

Install proper waste and wastewater treatment facilities. Re-inject produced water.

Install treatment facilities forwaste gases. Avoid gasventing.

Install oil sumps, interceptorsand oily water treatmentsystem.

Operation

(offshore)

Discharges from well operations(drill cuttings, mud, produced

Long term chronic effects onbenthic and pelagic biota



Demand on local onshoreinfrastructure (local port,

All aspects identified forexploration drilling should be


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water)

Discharges, other (drainage,sewage, sanitary and kitchenwastes)

Emissions to air from power andprocess plant, flaring.

Disposal of oily muds and cuttingson onshore waste disposal sites

Noise from facilities and flaring

Degradation of sediment and waterquality


Contamination of soil, ground waterand water at onshore waste disposal

siteDisturbance to wildlife

Global warming

Ozone depletion

solid waste disposal).

Disturbance from vesseland helicoptermovements.

Resource useinteractions.

Community interactionsrelated to supply andsupport functions.

applied to permanent sites.

Install oily water treatmentsystem for both producedwater and contaminated watertreatment

Install sewerage treatmentsystem.

Install system for treatment ofwaste gases. Avoid gasventing.

Proper handling and disposal

of wastes onshore.


Accidental discharge of oil duringtransportation (pipe, ship, road)

Accidental discharge andoperational discharges of oil,chemicals from refineries. Wastedisposal

Emission to air from refinery

Noise from refinery

Contamination of marine andterrestrial environment.




Loss of habitat


Global warming

Ozone depletion

Demand on localinfrastructure (water,sewage, solid wastedisposal).

Labour force

Employment

Education

Medical and otherservices

Local economy

Effects on indigenouspopulations.

Land-use conflicts

Water conflicts

Visual and aestheticintrusion.

Long term impacts

Install systems for treatment ofemissions to air andoperational discharges.

Proper handling and disposalof wastes.

Decommissioning

(onshore)

Land-use and Footprint

Accidental discharges of oil,chemicals

Waste disposal of hazardous

Permanent impact on wildlife if siteis not restored to original state

Contamination of soil, surface waterand ground water

Contamination of soil, surface waterand ground water at onshore waste

Infrastructure andresource conflicts.


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materials, and other wastes

Noise

disposal sites.

Disturbance to wild life

Decommissioning

(offshore)

Land-use and Footprint

Accidental discharges of oil,chemicals if systems are notcleaned before removal

Noise

Permanent impact on wildlife if siteis not restored to original state

Contamination of marineenvironment from accidental spillsif systems are not cleaned beforeremoval.

Disturbance to wild life

Secondary use ofinstallations as artificialreefs: Increased

bioproductivity of coastalwaters by providingadditional habitats formarine life.

Infrastructure andresource conflicts.

Abandonment ofoffshore structures canresult in physicalinterference with fishingactivities (e.g. trawling).

Decommissioning of offshorestructures is subject tointernational and national laws,and should be dealt with on ancase by case basis with localauthorities, developing adecommissioning andrehabilitation plan.


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4 ENVIRONMENTAL POLICY AND LEGISLATION

4.1

Introduction

Environmental management of a countrys oil and gas activities consists of the following threeelements:

1. Environmental policy

2. Laws and regulations

3. Tools

The goals and aims on how the countryspetroleum resources is to be developed is established inan environmental policy. The policy is enacted through laws and regulations and control of

petroleum activities. Environmental management goals are achieved through the application ofvarious tools. The hierarchy of policy, laws and regulations and tools is illustrated inFigure 4-1.An overview of main elements to policy and law and regulations is given in the followingsections, while tools are described in chapter5.

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 orexploitation would be to adopt a petroleum policy. The policy may set forward where, when andhow the search for oil and gas should take place, the goals and aims on how the petroleumresources should be developed, the environmental and social conditions which should be takeninto 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 theownership 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


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management, ecosystem based integrated management, equitable distribution, best availabletechniques and technology, stakeholder and public participation, transparency etc.

Similarly, any international obligations related to agreements and conventions to which the statemay 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 animportant 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 otherinstruments (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 ofshared responsibilities). State oil companies sometimes perform such governmental tasks, posingspecial challenges. The staff of these institutions must be trained in order to perform theirfunctions in a proper way. The relationship and responsibilities of the variousorganizations/ministries, such as ministries of energy and ministries of environment, must beclearly defined.

Each country has developed its individual set of acts and regulations governing the oil and gassector. It is important that the environmental legislation also encompasses issues/aspects covering

petroleum activities. This may imply drafting of new environmental legislation or revision ofexisting acts and regulations. In addition, it is important that the environmental legislation and thesector legislation, e.g. petroleum acts, are harmonised and that the sector acts also containsenvironmental considerations. The legislation should cover all links of the value chain.


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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. Differenttools 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 managementof the activities in a specific area to be opened up for exploration. Operators apply tools specificfor dealing with the different environmental issues that arise during exploration, production andfinally during decommissioning.

Figure 5-1 shows the main tools along the oil and gas value chain that are used in Norway. Theyare part of Norwegian regulation of oil and gas activities. In the following sections, the toolsshown inFigure 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, thefollowing 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 overallpurpose of OfD to transfer Norwegian experiences within management of petroleum activities.For tools without specific Norwegian approaches, descriptions are based on internationalguidelines.


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ENVIRONMENTAL MONITORING

STRATEGIC ENVIRONMENTAL IMPACT ASSESSMENT

LAND USE PLANNING AND COASTAL ZONE MANAGEMENT

ENVIRONMENTAL MANAGEMENT SYSTEM

ENVIRONMENTAL RISK ASSESSMENT

WASTE MANAGEMENT PLAN

OIL SPILL CONTINGENCY PLANNING

ENVIRONMENTAL IMPACT ASSESSMENT

SENSITIVITY MAPPING

ENVIRONMENTAL RESOURCE DATABASE

SOCIAL IMPACT ASSESSMENT

ENVIRONMENTAL BASELINE STUDY

Exploration license +

discharge permit

Operation license +

discharge permit

DECOMMISS-

IONING

GEOLOGICAL,

RESOURCE,

ENVIRONMENTAL

MAPPING

OPENING OF NEW

REGIONS/FIELDS

FIELD/

FACILITY

DEVELOPMENT


REFINING

EXPLORATION

ENVIRONMENTAL MONITORING

STRATEGIC ENVIRONMENTAL IMPACT ASSESSMENT

LAND USE PLANNING AND COASTAL ZONE MANAGEMENT

ENVIRONMENTAL MANAGEMENT SYSTEM

ENVIRONMENTAL RISK ASSESSMENT

WASTE MANAGEMENT PLAN

OIL SPILL CONTINGENCY PLANNING

ENVIRONMENTAL IMPACT ASSESSMENT

SENSITIVITY MAPPING

ENVIRONMENTAL RESOURCE DATABASE

SOCIAL IMPACT ASSESSMENT

ENVIRONMENTAL BASELINE STUDY

Exploration license +

discharge permit

Operation license +

discharge permit

DECOMMISS-

IONING

GEOLOGICAL,

RESOURCE,

ENVIRONMENTAL

MAPPING

OPENING OF NEW

REGIONS/FIELDS

FIELD/

FACILITY

DEVELOPMENT


REFINING

EXPLORATION DECOMMISS-

IONING

GEOLOGICAL,

RESOURCE,

ENVIRONMENTAL

MAPPING

OPENING OF NEW

REGIONS/FIELDS

FIELD/

FACILITY

DEVELOPMENT


REFINING

EXPLORATION

Figure 5-1. The tools along the oil and gas value chain..


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5.2 Strategic Environmental Assessment

Strategic Environmental Assessment (SEA) has been defined as the formalized, systematic, andcomprehensive 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 impactassessment (EIA) to policies, programs, and plans.SEA legislation generally falls underenvironmental impact assessment (EIA) legislation and extends the use of environmental impactassessment 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 aformal EIA-based procedure.

The World Bank describes SEA as a participatory approach for upstreaming environmental andsocial issues to influence processes for development planning, decision making, andimplementation at the strategic level.

Of relevance to the offshore oil and gas activities in Norway there are two processes that may beconsidered SEA:

SEA for opening of new areas to petroleum activity (mandatory process cf. the PetroleumActivities Act)

Regional SEA/IA for existing and future activities (voluntary process cf. the PetroleumActivities Act)

5.2.1 SEA for opening of new areas to petroleum activity

Responsible: The Government by Ministry of Petroleum and Energy

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 thePetroleum 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 bemade of the impact of the petroleum activities on trade, industry and the environment, and of possible risksof pollution, as well as the economic and social effects that may be a result of the petroleum activities.


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5.2.2

Regional SEA/IA for existing and future activities

Main steps and / or elements:

The second SEA process applied for offshore oil and gas activities in Norway is the Regional EIA. Thisprocess 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 relatedstakeholders than field specific EIAs. Key issues are related to possible impacts on natural resources, theenvironment, third parties and the national society.

Responsible: Oil industry association (Joint Industry Project)

Purpose of tool:The main purpose of the process is to establish a common basis on strategic/generic issues rather thanconsider these only on a fragmented field by field scale, and to reduce the magnitude of assessment effortfor future field specific EIAs.


The Strategic Environmental Assessment is an integrative process and requires the participation of keystakeholders (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 ormonitoring. 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 performScreening; are impacts possible and the SEA process necessary?Scoping; What are the impacts (issues) to be assessed?Prediction and evaluation of impactsincluding possible secondary impacts.Mitigation measures are intended to avoid, reduce, or offset the adverse effects of an action.

Relation to other tools:- EIA

Guidelines/ relevant sources:- World Bank


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5.2.3

Ecosystem based Integrated Management Planning

The first Ecosystem based Integrated Management Plan was decided by the NorwegianParliament 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 theParliament spring 2009) and in 2008 a pre-process for the North Sea was initiated.


EIMP is used for balancing various interests and activities without threatening the ecosystem(s) and theirfunctions.

Important factors for achieving EIMP include knowledge on baseline data (natural resources and activitiesetc.), 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.

Responsible:National authorities

Purpose of tool:

The aim of an Ecosystem based Integrated Management Plan (EIMP) is to establish a holistic andecosystem-based management of the activities in a specific area. The purpose of the EIMP is to provide aframework, where all activities in the area should be managed within a single context, for the sustainableuse 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 usedboth 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 qualityof the area. These goals are intended to ensure that the state of the environment is maintained where it isgood and is improved where problems have been identified. The achievement of the goals will then bemeasured 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)

Guidelines / relevant sources:- Norwegian Ministry of the Environment Relation to other tools:- Can be considered part of a SEA process


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5.3 Coastal zone management

Main content and steps:

ICZM focuses on three operational objectives:1. Strengthening sector management, for instance through training, legislation, and staff2. 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 selectedgoals and policies includenew and strengthened regulatory programszonation schemes for partitioning the coastal zone into areas for particular uses and activitiesnew 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. damagedwetlands) 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 planStep 2 Program implementation

Ste 3 Monitorin , evaluation and enforcement

Responsible: National government

Purpose of tool:

Integrated Coastal Zone Management (ICZM) is a process of governance and consists of the legal andinstitutional framework necessary to ensure that development and management plans for coastal zones areintegrated 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 conflictsand harmful effects of activities upon each other, on resources and on the environment. The ICZM takesinto account all of the sector activities that affect the coastal zone and its resources and dealing witheconomic and social issues as well as environmental/ecological concerns. The goal is to harmonize theseactivities in such a way that all of them are consistent with and support a broader set of overarching nationalgoals for the coastal zone.

Guidelines for integrated coastal zone management. World Bank

Relation to other tools:Input is needed from Environmental ResourceDatabase.

Guidelines / relevant sources:Guidelines for integrated coastal zonemanagement. World Bank.


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5.4 Sensitivity mapping

Main steps:Collect environmental data relevant to the project scope. Data can be collected from already existingdatabases or new data has to be sampled through e.g. field surveys. This is dependent on the quality and/ orlevel 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 affectingareas proposed for protected status.

2. Areas representing intact, unique, or rare ecosystems, and/or areas representing uniqueenvironments such as the last or most important examples of habitat types. This may includeoutstanding physical, biological, and geological formations; habitats of threatened species ofanimals and plants; areas with scientific, conservation, or aesthetic value; and pristineenvironments

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 inirreparable 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 anthropologicalvalue.

9. Areas with a legacy of poor environmental performance by external investors (particularlyextractive 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 whereresource use could create a conflict with other community users.

12. Other locally identified indicators

Responsible: Operator

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 managementrocess.

Relation to other tools:Provides input to- Strategic Environmental Impact Assessment- Environmental resource database- Oil Spill Contingency Planning- Environmental Risk Assessment- Environmental Impact Assessment

Guidelines / relevant sources:Environmental requirements for new projects (BP2007)


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5.5 Environmental Resource Database

Main steps:Environmental databases are efficient tools to be used in all phases of the oil and gas value chain, and atseveral 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 internationaldatabases 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 authoritiesin each country. If environmental resource data is not available, there may be necessary to initiate largescale monitoring programs (e.g. Seapop and mareano) or collect data more locally. New data collected byoperators should always be transferred to a relevant database. Activity specific databases should always beconsidered if national or regional databases are not available or covering the necessary environmentalaspects. 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) issuch a database, covering all relevant information for specific tools in the oil and gas value chain. MRDB isfinanced and managed by operators and authorities in collaboration. MRDB covers publicly availableinformation on coastal and marine resources vulnerable to oil pollution, for use in environmental impactanalysis, 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 NorwegianEnvironmental Monitoring Database (MOD)which contains the results of sediment monitoring studies onthe 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 sourcesStore data in consistent manner in functional software for easy search and display of information.Provide access to the database for all relevant parties

Responsible: Operator(s) and/or authorities

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 datapreferably 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 oiland gas value chain.

Relation to other tools:Provides input to- Environmental Impact Assessment- Sensitivity mapping- Oil Spill Contingency Planning- Environmental Risk Assessment- Environmental Impact Assessment

Guidelines / relevant sources:Naturbase;dnweb12.dirnat.no/nbinnsyn/WDPA;http://www.wdpa.org/GMES;http://www.gmes.info/index.php?id=homeSEAPOP;www.seapop.no/MAREANO;www.mareano.no/MRDB;www.mrdb.noMOD;projects.dnv.com/MODData harmonisation;

http://inspire.jrc.ec.europa.eu/index.cfmhttp://www.statkart.no/Norge_digitalt/Engelsk/About_Norway_Digital/
http://dnweb12.dirnat.no/nbinnsyn/http://www.wdpa.org/http://www.gmes.info/index.php?id=homehttp://www.seapop.no/http://www.mareano.no/http://www.mrdb.no/http://projects.dnv.com/MODhttp://inspire.jrc.ec.europa.eu/index.cfmhttp://inspire.jrc.ec.europa.eu/index.cfmhttp://projects.dnv.com/MODhttp://www.mrdb.no/http://www.mareano.no/http://www.seapop.no/http://www.gmes.info/index.php?id=homehttp://www.wdpa.org/http://dnweb12.dirnat.no/nbinnsyn/


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5.6 Environmental Management System

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 alsoaddresses occupational health and safety. Main elements are:

Leadership and commitmentTop-down commitment and company culture, essential to the success of the system.Policy and strategic objectivesCorporate intentions, principles of action and aspirations with respect to health, safety andenvironment.

Organisation, resources and documentationOrganisation of people, resources and documentation for sound HSE performance.Evaluation and risk managementIdentification and evaluation of HSE risks, for activities, products and services, and developmentof risk reduction measures.PlanningPlanning the conduct of work activities, including planning for changes and emergency response.Implementation and monitoringPerformance and monitoring of activities, and how corrective action is to be taken when necessary.Auditing and reviewingPeriodic assessments of system performance, effectiveness and fundamental suitability.


Purpose of tool:

An Environmental Management System (EMS) is part of an organisations management system used todevelop 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 globalsystem) in which an organisation operates, including air, land, fauna, humans, water, flora, natural resourcesand their interrelation.The purpose of an EMS is continuous improvement of environmental performance. E & P Forum hasdeveloped guidelines to assist in the development and application of an EMS in E&P. This model iscompatible with the requirements of the ISO 14000 series. Unlike ISO 14001, it also addresses occupationalhealth and safety.

Relation to other tools:Incorporates- Waste management plan- Environmental monitoring

Guidelines / relevant sources:- ISO 14001- E&P Forums Guidelines for the Developmentand Application of Health, Safety andEnvironmental Management Systems


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5.7 Waste management Plan

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 determinethe types of wastes for which management practises should be highlighted. Waste types for which theregulations do not adequately define management requirements should also be identified.

Step 5: Waste categorization. Identify the physical, chemical and toxicological properties of each waste viaMaterial Safety Data Sheets (MSDS) or other sources like manufacturer, lab analyses, etc. Wastes can begrouped according to their health and environmental hazards.

Step 6: Evaluation of waste management and disposal options. Identify and compile waste managementoptions for each waste. Evaluation of options should include: environmental considerations, location,engineering limitations, regulatory restrictions, operating feasibility, economics, potential long-termliability, etc.

Step 7: Waste minimization. Evaluate options to minimize volume of waste, reduction of toxicity, recyclingand reclaiming, or treatment.

Step 8: Selection of preferred waste management practise(s). Select the best practice for the specificoperation 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 disposaloptions for each waste into one comprehensive waste management plan.

Step 10: Plan review and update. Review and update the waste management plan whenever new wastemanagement practises or options are identified.

E& P Forum, 1993


Purpose of tool:

A waste management plan directly relates to the choice of waste handling and disposal options to theecological sensitivities, regulatory requirements and available facilities/infrastructure of the geographicalarea involved. The plan should be written from the field perspective and provide guidance for handlingeach waste stream.

The objective of a waste management plan is to minimize the potential of wastes to cause harm to healthand the environment. Responsible waste management may be accomplished through the hierarchicalapplication of source reduction, reuse, recycling, recovery, treatment and responsible disposal.

(E&P Forum, 1993)

Relation to othertools:Part of EnvironmentalManagement System

Guidelines / relevant sources:

- E&P Forum Waste Management Guidelines- OGP Guidelines for waste management with special focus on areas withlimited infrastructure- Recommended Guidelines for Waste Management in the Offshore Industry(OLF guideline No 093, 2004)


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5.8 Environmental Risk Assessment

Main steps:

Step 1: ScopingScoping defines what activity the assessment shall cover and what environmental impact that shall beanalysed as the risk indicator.

Step 2: Hazard identificationHazard identification is the process of identifying events (e.g. accidental oil discharges) which unlesscontrolled or mitigated, could result in environmental damage. In ERA hazard identification is often carriedout in a separate technical risk assessment TRA, but it can also be an integrated part of the ERA. The hazardidentification shall give the probability/frequency of an event and the severity of the event (amount of oildischarged or spill rate and duration).

Step 3: Modelling of oil dispersionThe fate and transport of oil in the environment is modelled. Most often a probabilistic model is applied thatgives the probability of oil pollution in specific areas. The model shall make a mass balance of the oil, foroil at sea this shall be the amount of oil evaporated, dispersed, degraded, beached and remaining at seasurface.

Step 4: Interaction between oil pollution and sensitive environmental resourcesThe 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 analysedto give the probability of polluting the sensitive resources.

Step 5: Assessing environmental impactThe environmental impact is assessed based on the amount of oil polluting sensitive resources, thesensitivity of the resources to oil pollution and its potential to recover from a pollution. The impact can forinstance be expressed as recovery time for a specific population or habitat.

Step 6: Assessing the riskThe probability / frequency of an environmental impact shall be evaluated against established riskacceptance criteria.

Responsible: Authority / Operator

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 theenvironmental risk.

Relation to other tools:- Environmental Resource Database- Environmental Sensitivity Mapping- Oil spill contingency planning- Environmental Impact Assessment

Guidelines / relevant sources:The MIRA method, a Norwegian industry standardfor ERA for accidental oil spill;http://www.olf.no/miljoerapporter/metode-for-miljoerettet-risikoanalyse-mira-revisjon-2007-article1955-247.html (in Norwegian only)European Environment Agency: EnvironmentalRisk Assessment - Approaches, Experiences andInformation Sourceshttp://reports.eea.europa.eu/GH-07-97-595-EN-C2/en/sect1in.html

SINTEF Offshore Blowout Database:http://www.sintef.no/Home/Technology-and-Society-2009/Safety-Research/Projects/SINTEF-Offshore-Blowout-Database/
http://www.olf.no/miljoerapporter/metode-for-miljoerettet-risikoanalyse-mira-revisjon-2007-article1955-247.htmlhttp://www.olf.no/miljoerapporter/metode-for-miljoerettet-risikoanalyse-mira-revisjon-2007-article1955-247.htmlhttp://www.olf.no/miljoerapporter/metode-for-miljoerettet-risikoanalyse-mira-revisjon-2007-article1955-247.htmlhttp://reports.eea.europa.eu/GH-07-97-595-EN-C2/en/sect1in.htmlhttp://reports.eea.europa.eu/GH-07-97-595-EN-C2/en/sect1in.htmlhttp://reports.eea.europa.eu/GH-07-97-595-EN-C2/en/sect1in.htmlhttp://www.sintef.no/Home/Technology-and-Society-2009/Safety-Research/Projects/SINTEF-Offshore-Blowout-Database/http://www.sintef.no/Home/Technology-and-Society-2009/Safety-Research/Projects/SINTEF-Offshore-Blowout-Database/http://www.sintef.no/Home/Technology-and-Society-2009/Safety-Research/Projects/SINTEF-Offshore-Blowout-Database/http://www.sintef.no/Home/Technology-and-Society-2009/Safety-Research/Projects/SINTEF-Offshore-Blowout-Database/http://www.sintef.no/Home/Technology-and-Society-2009/Safety-Research/Projects/SINTEF-Offshore-Blowout-Database/http://www.sintef.no/Home/Technology-and-Society-2009/Safety-Research/Projects/SINTEF-Offshore-Blowout-Database/http://www.sintef.no/Home/Technology-and-Society-2009/Safety-Research/Projects/SINTEF-Offshore-Blowout-Database/http://reports.eea.europa.eu/GH-07-97-595-EN-C2/en/sect1in.htmlhttp://reports.eea.europa.eu/GH-07-97-595-EN-C2/en/sect1in.htmlhttp://www.olf.no/miljoerapporter/metode-for-miljoerettet-risikoanalyse-mira-revisjon-2007-article1955-247.htmlhttp://www.olf.no/miljoerapporter/metode-for-miljoerettet-risikoanalyse-mira-revisjon-2007-article1955-247.htmlhttp://www.olf.no/miljoerapporter/metode-for-miljoerettet-risikoanalyse-mira-revisjon-2007-article1955-247.html


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5.9 Oil Spill Contingency Planning

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, municipaland public parties where responsibilities, roles and tasks are regulated by law. Primarily private actors holdthe responsibility for the oil spill contingency.

In situations where the polluter is not capable of handling the spill himself the public and the municipalitiescan be used. As an example, the organisation of oil spill contingency relating to offshore oil & gas activitieson the Norwegian Continental shelf is based on the operator holding responsibility for the spill, and the useof common technical resources through the Norwegian Clean Seas Organisation for Operating Companies(NOFO) and their agreements with Regional Pollution Combat Groups (IUAs). These groups organizeresponse 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 CoastalAdministration (NCA). In the response operation, NCA may draw their own resources, located at a numberof depots along the coast, on dedicated NCA vessels and Coast Guard vessels. In addition, NCA maymobilize privately owned resources (including NOFO resources). In the subsequent cleanup operation, NCAcooperates with the IUAs. NCA has the overall responsibility for the entire operation in strategic, tacticaland economical terms and holds the position of the Operation Coordinator and the Shoreline EnvironmentalTask 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 ofprivate and municipalities actions related to acute pollution (e.g. oil spill). Private actors and the

municipalities have legal duty to contribute in public actions.

Purpose of tool:

Oil spill contingency planning is necessary in order ensure prompt response to avoid or minimise theimpact 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.


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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 thatwould 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 anenvironmental 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 estimatethe 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 withregards to system capacity, response time, types of equipment, monitoring and other specific aspects relatedto the activity of interest. The OSCA will give important input to ERA related to consequence reducingmeasures.

The OSCA concludes on a recommended solution which will be an input to further planning of the oil spillcontingency.

Step 4:Following the OSCA and ERA an oil spill contingency plan should be developed. The plan should clearlyidentify 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

Guidelines / relevant sources:IPIECA has several relevant studies and guidelines, amongothers:- 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 12See more on:http://www.ipieca.org/activities/oilspill/oil_publications.php#21

OLF/NOFO has developed a guideline for OSCA: -Veileder for miljrettet beredskapsanalyse (in Norwegianonly)

Relation to other tools:The tool is based on input from:- Environmental Resource Database- Environmental Risk Assessment
http://www.ipieca.org/activities/oilspill/oil_publications.php#21http://www.ipieca.org/activities/oilspill/oil_publications.php#21http://www.ipieca.org/activities/oilspill/oil_publications.php#21http://www.ipieca.org/activities/oilspill/oil_publications.php#21


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5.10 Environmental Baseline Study and Environmental Monitoring

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 airemissions; existing water pollution discharges; and receiving water quality.

Biological environment: flora; fauna; rare or endangered species; sensitive habitats, including parksor 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 ofincome, goods and services; recreation; public health; cultural properties; tribal peoples; andcustoms, 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 theobjectives of the monitoring activities. The plan should include how, who, when, detection limits, thresholdvalues that will trigger corrective actions, reporting procedures (e.g. ensure early detection of conditions thatnecessitate particular mitigation measures), budget and other necessary inputs (e.g., training) to monitor theimpacts of the project during all project phas

environmental manual jan 21 2009 (2).pdf

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