and actions taken to prevent reoccurrence. Where possible, the environmental authority should maintain staff at operations on a permanent basis. In presenting their plans for approval by government, oil, gas, and mining sector project sponsors may be reasonably required to demonstrate that they have the organizational capacity to comply with social and environmental impact laws and regulations and with undertakings given in the environmental and social management plan and the closure plan. Environmental performance data should be provided to government by the operator of the project. Environmental performance data should also be provided to local communities in the local language with annual updates.
Capacity building
Much has been said about the importance of capacity building in making good governance feasible. One area requires further emphasis, however. Many countries have limited environmental oversight and enforcement capacity. Governments should make every effort to see that their environmental agencies have sufficient staff with adequate knowledge and experience of all the key sectors of the economy, including the oil, gas, and mining sector. They must have adequate budgets for both wages and other costs (such as computers, data, record-keeping systems, vehicles, and operational travel) in order to be able to hire and retain competent staff, provide training, and have a strong presence on the ground, including at mine sites. Very close collaboration is needed between the environmental authority and the technical staff at the EI sector ministry in reviewing and approving environmental and social impact assessments and environmental and social management plans. This can help compensate for a lack of capacity in countries with weakness in environmental areas and environmental staff that have only limited experience or knowledge of the oil, gas, and mining sector (Alba 2009, 8). Social aspects
In more advanced developing countries, where there is a social ministry or a women’s ministry, these ministries should be responsible for social and gender issues. However, in countries where such dedicated ministries do not exist, social and gender issues should be the mandate of whichever agency has responsibilities that include such matters, or, if this does not exist, then whichever agency has the most expertise or was most involved in establishing social
mitigation measures and local development initiatives for the oil, gas, or mining sector project (Liebenthal, Michelitsch, and Tarazona 2005, 170). Potentially, as in South Africa, the Department of Mineral Resources is the coordinating agency. Monitoring and reporting
Good practice calls for both internal and external auditing of the EI project sponsor’s compliance with measures, promises, and obligations made on undertakings throughout the project life, and regular public reporting of those audits. This requires the environmental authority and the oil, gas, and mining sector ministry to work together to have in place a well-defined and comprehensive monitoring program that identifies serious or potentially serious environmental issues. These can include impacts on water quality and availability, protection of biodiversity and natural habitats, safe handling and storage of hazardous materials, and interventions in place to reduce risks.
10.6 RESPONSE 3: ACCOUNTABILITY— STAKEHOLDER CONSULTATION AND PARTICIPATION
Successful and sustainable oil, gas, and mining sector management depends upon the participation of all key stakeholders—parliament, the executive, industry (including national resource companies), international financial institutions and other investors, civil society, and citizens. While objectives and focus may differ among stakeholder groups, constructive and successful models of collaboration are emerging. In addition to the extensive discussion in chapter 9, see box 10.1 for an example of environmental and social institutional collaboration. Identifying stakeholders, seeking their participation, and consulting with them in reform or good governance agendas across all links of the EI Value Chain have proven critical to the successful management of the oil, gas, and mining sectors and their impacts. In conflict areas, this has proven to be a particular challenge (see chapter 2, sections 2.3 and 2.4). Who are the stakeholders?
The principal stakeholders in the EI Value Chain have been described in the preceding chapters of the Sourcebook. Each deserves to be consulted in any matter with an important bearing on oil, gas, and mining sector management, and each, at the same time, should be expected to
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