Oil, Gas, and Mining

Page 292

Box 9.8 Challenges Associated with Artisanal and Small-Scale Mining (ASM) (continued) chemicals—are compounded by livelihood practices that support mining populations—gathering firewood, hunting for food, or trading goods. Furthermore, on a global scale, artisanal and small-scale forms of gold production remain the biggest environmental challenge due to mercury use. The Minamata Convention on Mercury 2013 to further limit and in some cases

ban mercury use in countries presents a renewed opportunity to tackle its use in ASM. However, the environmental agenda surrounding ASM must be integrated into broader governance discussions, as often environmental degradation caused by ASM occurs within a vacuum of government regulation and presence.

Box 9.9 Essentials of a Good Environmental Protection Regime If well designed, a regime will provide for the following: ■

Coverage of both the mineral or hydrocarbon operation and all related infrastructure Environmental permits that cover key impacts such as water use and waste water discharge quality, waste storage and disposal, atmospheric emissions, and noise Community hearings open to the public where all data collection, impact assessments, and management plans are presented as part of the approval process—final, approved documents should be provided to communities Participatory community monitoring that can help reduce community concerns Identification of assets for handover at an early stage and setting up of arrangements for them to be jointly operated and maintained by the community agency or organization that will receive them

technology can be stimulated to produce energy solutions using local renewable energy sources. In this context, companies have an interest in drawing on industry good practice standards and generally becoming proactive; this includes working with communities to build the skills necessary for resource employment and the provision of goods and services. At the same time, companies are able to draw on the growing body of standards and soft-law mechanisms that require a voluntary response from the players for compliance. A summary of the essentials of a good environmental protection regime is contained in box 9.9.

272

OIL, GAS, AND MINING

The establishment of financial assurance mechanisms needed to ensure that sufficient funds are in place for plant removal and disposal and land reclamation and rehabilitation at the time of closure and decommissioning—they should also require that reclamation and restoration be built into the production plan to take place on a progressive basis, in which case there is less to do during closure and decommissioning Penalties that are clearly stipulated for violations of requirements and compliance standards, and compensation set out for harmed parties where needed, all of which should be commensurate with the seriousness of the violation Environmental audits and surveys of any legacy issues from past operations as well as identification of environmental risks and action priorities and mobilization of any funding required

Oil and gas. In the field of petroleum sector governance, a distinct initiative should be mentioned. Given the impressive track record and global influence of the Norwegian approach to resource governance, it is perhaps unsurprising that the Government of Norway should have supported a Petroleum Governance Initiative (PGI) with the World Bank. Based on three pillars (transparency and revenue management, environmental sustainability and community development). It provides support to countries undertaking oil and gas activities by assisting in the implementation of appropriate governance frameworks. Environmental implications are considerable: organizing support for


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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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