Oil, Gas, and Mining

Page 301

For protected areas, particularly with respect to the natural environment, an initial response is to designate such areas according to an internationally accepted scheme such as that laid down by the IUCN. The IUCN protection area management categories are an attempt to classify protected areas according to their management objectives (IUCN 2013). They are recognized by international bodies such as the United Nations and by many national governments as the global standard for defining and recording protected areas. An indication of the importance that the international community sets on this is given by the resolution adopted by the World Conservation Congress in 2000 recommending that its members “prohibit by law, all exploration and extraction of mineral resources in protected areas corresponding to IUCN Protected Area Management Categories I to IV” (IUCN 2000).58 For culturally significant sites, there are codes of industry good practice guidelines such as the IFC’s performance standards and the ICMM principles. 9.7 SUMMARY AND RECOMMENDATIONS

The fifth chevron in the EI Value Chain is unique in the sense that it does not follow sequentially from the preceding ones. For EI operations to be truly sustainable, they need to have social and environmental elements added throughout, particularly in the first chevron. To achieve development that is sustainable, policies must be designed to ■

produce clear and lasting (sustainable) benefits from extractive industry (EI) activities, and address, in a comprehensive and integrated way, the potential and actual impacts on environment and society.

Comprehensive ESIAs and mitigation plans should be required of all EI sector projects, and they usually are. Very few countries do not have such regulations. Governments should also work to ensure the institutional capacity to enforce SEAs (or SESAs) and related regulations. The reasons for this are clear enough. EI sector policies, plans, and programs can have significant externalities or spinoff impacts—both positive and negative—on society and on the physical environments. Sustainability in the extractives sector has become a matter of maximizing the social and economic benefits from an investment while at the same time minimizing the negative

impacts on communities and the environment. There are now various ways of leveraging extractives projects for wider development gains: resources for infrastructure arrangements, resource corridors, and local benefit initiatives. An attraction of these is that they envisage a partnership relationship between the host government and the investors and the relationship is therefore less “legalistic.” However, sustainability goes much beyond mitigation. It also asks questions about the relevance of a mine or commodity in a sustainable future. In some cases the answers will be “no” to a proposed mining or oil and gas development. The relevance of international law in this area is considerable. This extends well beyond the influence of international or regional conventions and encompasses the design, adoption, and use by countries and nonstate actors like companies of standards. Many issues are increasingly perceived as being common concerns since they have cross-border effects and therefore require joint action in such areas as human rights, environmental protection, gas flaring, and climate change mitigation, to name only the obvious examples. International best practice is being shaped not only by law making in the traditional sense (by states) but by international initiatives deliberately aimed at involving a variety of actors or stakeholders, generating a wide consensus and rich body of knowledge in specialist areas. Attempts to tackle the long-standing enclave character of mining and oil and gas projects are well under way, with resource corridors being one of these, aimed at transforming and leveraging a large but enclave commercial project or industry investment and its needs for infrastructure and goods and services into a sustainable and diversified economic space. Key features in this are the creation of a viable financial structure based on expected government revenues as a result of the EI activity and the establishment of government, private sector, and civil society capacities to develop and implement agreed plans. Currently, resource corridors have been constrained by a lack of proper ex ante consideration of environmental and community factors, by insufficient government capacity to plan in an integrated fashion, and by a lack of political rationale based on sound economic grounds. Project-specific decommissioning and closure plans should be available for each operation. If a commercialscale operation does not have, or is not required to have, a decommissioning and closure plan, this should be corrected and a plan prepared without delay. A decommissioning and closure plan is essential even for an operation at the start of

CHAPTER 9: SUSTAINABLE DEVELOPMENT IMPLEMENTATION

281


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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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