Oil, Gas, and Mining

Page 278

The scope of human rights risks is potentially very wide. One study has tried to capture this by identifying human rights risk areas, where the risk of adverse human rights impacts is most significant.28 It examines risks in industrial and large-scale mining and in artisanal and small-scale mining, but even so, there is a vast field of particularly affected groups, such as women and children, that can raise complex issues (child labor, for example) and constitute a subset of risks to be identified and monitored. Women and child-specific aspects of human rights are particularly important in the extractives sector and have been the subject of research.29 Child labor in the mining sector is almost exclusively found in ASM operations in Africa, Asia, and Latin America, with more than 1 million children working in this sector (Max Planck and BGR 2016, 105). Although the risks to health are the same as those for adult miners, the risks to immature bodies are more intense. Violations to children’s rights to health and to education are common. Dependency. Many communities become overly dependent on EI projects in their area; and without advance measures to address this issue, they will become vulnerable to a ‘boom and bust’ cycle, suffering contraction or even collapse when production ceases or when profitability declines. The key to success for sustainable development is to prevent these from happening. Thus, social aspects and their associated costs should be included in decommissioning and closure plans, and initiatives should be taken from the earliest days of production to develop economic activities in the community that are independent of the EI sector activity. Alternative business development in the area needs to occur concurrently to foster links in and outside the community and reduce dependency. The aim should be for them to survive when production declines and eventually ceases.

Oil and gas. Oil and gas activities can have social and cultural impacts when they affect communities and indigenous groups by changes in their land use and traditional activities in local areas, their lifestyles, and their livelihoods, such as in agriculture, logging, and fishing (IPIECA 2011a; E&P Forum and UNEP 1997, 11–12). Disruption of community life will follow influxes of migrant workers, the introduction of changes and differences in income and social structures, and uneven distribution of benefits and liabilities. Health risks can arise from disease and the use of potentially hazardous chemicals. Like mining companies, oil and gas companies may be the first foreign investors that local communities encounter in areas in which services, health, and education are poor and government processes are still evolving. More dramatic impacts can be seen in the Niger Delta, for example, where human rights abuses by security forces have been documented. Communities have been largely unable to redress their grievances in the absence of an independent judicial system. The resulting confrontations between communities and oil companies have been considerable and intense. One result of these conflicts is that the time required to bring an oil project online has nearly doubled over the past decade, leading to a significant increase in costs (Davis and Franks 2014, 11). Mining Positive Social Impacts. For example, both large-scale mining and ASM can contribute to local employment and income and poverty reduction, often where few alternatives exist (see box 9.5 and box 9.6) (Davis and Franks 2014, 14). However, it can also be negative, when during the exploration and development phases, disruption can occur in land tenure and access, road construction, river diversion and large numbers of people, including foreign workers,

Box 9.5 Reframing the ASM Debate: Integrating It into the EI Value Chain Shifts in policy articulations of artisanal and small-scale mining (ASM) have generally corresponded to specific political and economic global periods. Pelon and MartelJantin (quoted in De Sa, Perks, and La Porta 2013) propose that since the postcolonial period, the position of ASM within mineral policy has transitioned from one of “isolation” to “integration.” Such a transition was evidenced first by a firmer inclusion of ASM in national

258

OIL, GAS, AND MINING

mineral legislation and policy starting in the late 1980s and into the mid- 1990s. This legislative reform focus was accompanied in several instances by technical assistance, such as small grant programs or credit and loan schemes to establish more viable small-scale mining operations. Furthermore, specific ASM government departments or agencies, typically under the umbrella of the ministry concerned with mining, were established or


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10.1 Environmental and Social Institutional Arrangements

3min
page 316

10.6 Response 3: Accountability—Stakeholder Consultation and Participation

3min
page 315

10.5 Response 2: Effective Implementation, Monitoring, and Enforcement

3min
page 314

10.4 Response 1: Appropriate and Adequate Rules

3min
page 313

Notes

6min
pages 303-304

9.11 Goal Setting and Community Participation

11min
pages 298-300

9.7 Summary and Recommendations

7min
pages 301-302

9.10 Social Impacts: Special Issues

3min
page 297

9.9 Essentials of a Good Environmental Protection Regime

19min
pages 292-296

9.8 Challenges Associated with Artisanal and Small-Scale Mining (ASM

3min
page 291

9.6 The Responses

7min
pages 289-290

9.7 Decommissioning and Environmental Protection Plans

3min
page 288

9.5 Tools: Legal and Regulatory

30min
pages 280-287

9.6 Potential Opportunities Generated by ASM

3min
page 279

9.5 Reframing the ASM Debate: Integrating It into the EI Value Chain

3min
page 278

9.3 The Deepwater Horizon Oil Spill

11min
pages 273-275

Areas and Critical Ecosystems (PACE

7min
pages 276-277

9.4 Challenge 2: Environmental and Social Impacts

4min
page 272

9.2 Objectives of the Parties to an Infrastructure Project

2min
page 271

9.1 Liberia: Open Access Regime in Mineral Development Agreements

11min
pages 268-270

Investments Create Positive and Sustainable Impacts

23min
pages 262-267

9.2 Two Key Challenges

3min
page 261

8.4 Civil Society–Led Initiatives

3min
page 252

8.5 Private Sector–Led Initiatives

3min
page 253

8.6 Emerging Global Norms and Standards

3min
page 251

8.3 The Seven Requirements of the EITI Standard

5min
pages 249-250

8.5 Transparency Initiatives

3min
page 248

8.2 EIs and Social Accountability

2min
page 247

8.4 Challenges and Special Issues

3min
page 244

8.1 Balancing Transparency Interests: Opposing Dodd-Frank

7min
pages 245-246

Other Resources

1min
pages 238-240

8.2 Definition and Scope

3min
page 242

8.3 The Benefits of Transparency

3min
page 243

Notes

8min
pages 232-233

7.4 Examples of Revenue-Sharing Formulas

17min
pages 226-230

7.9 Revenue Allocation and Subnational Issues

3min
page 225

7.8 Spending Choices and Use of Government Revenues

16min
pages 221-224

7.7 Alternative Means of Addressing Volatility

4min
page 220

7.6 Addressing Volatility: Stabilization Funds

3min
page 218

7.3 Stabilization Funds: The Experience of Chile

3min
page 219

7.5 Alternative Means of Addressing Fiscal Sustainability

7min
pages 216-217

7.2 Savings Funds: Four Examples

6min
pages 214-215

7.3 Consume or Save?

10min
pages 205-207

6.5 What a Well-Designed Fiscal Regime Must Do

3min
page 197

7.1 Botswana and Chile: Experiences with Fiscal Rules

3min
page 208

7.2 Why Revenue Management is Difficult

3min
page 204

6.4 Routine Tax Administration: Challenges

7min
pages 194-195

6.7 Summary and Recommendations

3min
page 196

6.6 EI Fiscal Administration

3min
page 193

6.5 Special EI Fiscal Topics and Provisions

27min
pages 186-192

6.3 Elements for Action on Taxation of Transfer of EI Interest

3min
page 185

6.4 Main Fiscal Instruments under a Fiscal Regime

20min
pages 175-179

6.1 Forms of State Participation

13min
pages 180-183

6.2 Key Fiscal Objectives

13min
pages 170-173

6.3 The Main Types of EI Fiscal Systems

3min
page 174

5.4 Summary and Recommendations

3min
page 164

5.8 Unitization in Maritime Waters

32min
pages 156-163

5.6 Petroleum Sector Reform in Brazil

3min
page 150

5.5 Petroleum Reform in Colombia

3min
page 149

5.1 Institutional Structure: The Ministry and the Regulatory Agency

22min
pages 138-143

5.2 Mining Participation

3min
page 144

5.2 Organization in the Public Interest

5min
pages 136-137

5.3 NRC Success Stories

11min
pages 145-147

5.4 Petroleum Technical Assistance to South Sudan

3min
page 148

Notes

12min
pages 128-130

4.13 Taking Action: Recommendations and Tools

4min
page 127

4.12 Summary

4min
page 126

4.11 Disputes: Anticipating and Managing Them

8min
pages 122-123

4.11 Claims under Bilateral Investment Treaties (BITs

7min
pages 124-125

4.10 Contract Negotiations

3min
page 121

4.10 The Four Main Forms of Stabilization Clause

3min
page 120

4.9 Investment Guarantees: Stabilization

4min
page 119

4.8 Why Regulations Are Necessary

7min
pages 117-118

4.9 Geodata

23min
pages 111-116

4.7 The Award of Contracts and Licenses

3min
page 110

4.6 Contractual Provisions for Natural Gas

16min
pages 104-107

4.7 Model Mining and Development Agreement

3min
page 108

4.5 Local Benefit: The Kazakhstani Experience

7min
pages 102-103

4.4 Local Benefit

3min
page 101

4.8 Practices to Avoid

3min
page 109

4.6 Contracts and Licenses

31min
pages 93-100

4.5 Hydrocarbons and Mining Laws

27min
pages 86-92

4.3 Deep-Sea Mining

3min
page 85

4.2 Licensing across Shifting International Borders

3min
page 84

4.4 Policy Priorities

11min
pages 81-83

4.3 Eight Key Challenges

3min
page 80

4.1 Sovereignty over Natural Resources

3min
page 79

4.2 Getting Started: Facts of EI Life

3min
page 78

Other Resources

4min
pages 73-76

3.4 Convergence of Mining and Hydrocarbons?

16min
pages 67-70

3.3 Key Differences of the Industries

7min
pages 62-63

3.2 Features Specific to the Oil and Gas Sectors

2min
page 65

3.1 Key Differences between the Petroleum and Mining Sectors

3min
page 64

3.2 Common Features of the Industries

7min
pages 60-61

References

13min
pages 53-56

Other Resources

1min
pages 57-58

Notes

8min
pages 51-52

2.6 Conclusions

4min
page 50

1.2 The EI Value Chain

11min
pages 31-33

1.5 Our Approach

3min
page 34

1.4 Bridging the Knowledge Gap

3min
page 30

2.2 The Opportunities Arising from Resource Abundance

8min
pages 40-41

2.1 Changing Perspectives: Reframing the ASM Debate

3min
page 42

1.2 The Demand for Knowledge

4min
page 24

2.4 Understanding the Challenges: Changing Perspectives

8min
pages 47-48

2.5 Applying New Insights

4min
page 49
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