Oil and Gas Industry Experience: Lessons Learnt, examples and BP case-study

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Oil and Gas Industry Experience Lessons Learnt,
examples and BP case-study

• Rob Cox (IPIECA)

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What is IPIECA?

• The single global association representing both
  the upstream and downstream oil and gas industry
  on key environmental and social issues
• Founded in 1974 following the establishment of
  the United Nations Environment Programme (UNEP),
  IPIECA provides a principal channel of
  communication with the UN
• Consensus-based
• Non-advocacy

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Company and Association Members
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Successful Impact Assessment

• This presentation explores differing approaches
  to successful Impact Assessment by highlighting
  lessons learnt, tools and industry experiences.
• Get the right data - start early with early
  screening tools
• Assessment of Ecosystem Services
• Biodiversity Action Plans (BAPs)
• Integrated Impact Assessment
• Guides for both assessing and managing risks
• 6. Biodiversity Offsets

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1. Get the right data - start early with early
screening tools

• KEY MESSAGES
• Start early to identify high-level show-stoppers
  and to enable any early mitigation procedures
• Access to and availability of data is key
• Early screening to identify potential risks
  sensitivities
• Environmental and social indicators should be
  used
• UNEP-WCMC - This type of intelligence is
  invaluable and has provided strategic input to
  our development plans. At one point we were on
  the point of signing a joint venture agreement
  when WCMC alerted us to the fact that the area
  has been designated a World Heritage Site. (June
  2000, John Roskam Rio Tinto)
• CASE-STUDY
• Shell Canada - Monitoring Oil Sands Development
  and Future Reclamation, Canada Shell Canada and
  the European Space Agency have used satellite
  imagery technology to establish baseline
  environmental information before developing new
  areas.

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2. Assessment of Ecosystem Services

• KEY MESSAGES
• Ecosystem Services provide a holistic view of
  biodiversity encouraging a joined up perspective
• There are several ES tools which can be applied
  at different stages of the project lifecycle,
  some are more relevant than others
• TOOLS
• WBCSD The Corporate Ecosystem Services Review
  (2008) The ESR helps understanding around a
  number of emerging environmental changes and how
  this might affect business.
• BSR Ecosystem Services WG The Environmental
  Services, Tools and Markets Initiative (2006)
  increased member awareness of emerging ecosystem
  service tools and policies.
• IPIECA An Ecosystem Approach to Oil and Gas
  Industry Biodiversity Conservation. (2007)

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3. Biodiversity Action Plans (BAPs)

• KEY MESSAGES
• A set of future actions that will lead to the
  conservation or enhancement of biodiversity.
• There are pockets of learning across the
  industry from the use and implementation of BAPs.
  Their implementation can be problematic without
  clear guidance
• TOOL
• IPIECA - A Guide to Developing Biodiversity
  Action Plans for the Oil and Gas Sector (2005)
• CASE-STUDY
• Chevron Biodiversity Management Program at
  Pembroke Refinery, UK
• Participation in the Biodiversity Action on
  Industrial Sites (BAIS) 3-year pilot sponsored
  by EU. The area was mapped and Chevron developed
  a BAP to monitor, maintain and potentially
  improve biodiversity.

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4. Integrated Impact Assessment

• IIA Environmental, Social and Health Impact
  Assessment
• TOOLS
• Health Impact Assessment A Guide to Health
  Impact Assessment in the Oil and Gas Industry.
  (2005)
• Social Impact Assessment An IPIECA Guide to
  Social Impact Assessment in the Oil and Gas
  Industry. (2004)
• Environmental Impact Assessment Key
  Biodiversity Questions in the Oil and Gas
  Lifecycle (2006)
• OGP Environmental-Social-Health Risk and Impact
  Management Process. (2007)

 
  
  
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OGP e-SHRIMP

• E-SHRIMP is a toolbox in its own right
• It provides a framework/basic lifecycle process
  from which issues can hang
• Social
• Environmental
• Health
• Biodiversity/Ecosystem Services
• Challenges
• Starting the environmental, social and health
  impact assessment (ESHIA) process earlier in the
  project lifecycle
• Integrating it more fully into design and
  decision-making
• Middle management commitment
• Effective contractor relationships
• Branding ESHIA as a continuous process

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5. Guides for both assessing and managing risks

• KEY MESSAGES
• Pragmatic usable tools OR guidance for assessing
• and managing risk
• Essential to pre-identify sensitive
  areas,(ecological and social aspects) - potential
  risks and opportunities for mitigation
• TOOLS OR GUIDANCE
• IPIECA Alien Invasive Species (Pending
  publication)
• Other habitat location specific guidelines
• OGP/IUCN Oil and Gas Exploration and
  Production In Arctic Offshore Regions (1993)
• OGP Oil and gas exploration and production
  operations in Mangrove areas
• IPIECA Managing Oil and Gas Activities in
  Coastal Ecosystems (Primer in preparation)

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6. Biodiversity Offsets

• KEY MESSAGES
• Offsets can take a project from net impact to net
  gain
• Overall aim is to avoid impact but if this is not
  possible, offsets play an essential role in
  mitigating the impacts.
• Mitigation hierarchy avoid, minimize, restore
  and then offset
• Biodiversity offsets are conservation
  activities intended to compensate for the
  residual, unavoidable harm to biodiversity caused
  by development projects. (IUCN)
• Business and Biodiversity offsets programme
  (BBOP) is a partnership between companies,
  governments and conservation experts.
• Offsets can help achieve better and more
  cost-effective conservation
• If there is no net loss of biodiversity companies
  can secure licence to operate.

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Degree of impact mitigation using avoid ?
minimize ? restore ? offset
Early warning planning development projects
and conservation priorities
Selection of offset portfolio accounting for no
net loss
Net gain
Biodiversity breakeven point (Zero impact No
net loss)
Residual Impacts (net loss)
Offset
Residual Impacts (net loss)
Minimize/ Restore
Minimize/ Restore
No net loss
Avoided impacts
Avoided impacts
Avoided impacts
Avoidance Min/restore Offset
Anticipated Impact (net loss)
Avoidance only
Avoidance Min/restore
Adapted from Kiesecker et al. 2009
Kiesecker, J.M, H. Copeland, A. Pocewicz, N.
Nibbelink, B. McKenney J. Dahlke, M. Holloran and
D. Stroud 2009 A Framework for Implementing
Biodiversity Offsets Selecting Sites and
Determining Scale. BioScience 5977-84. Kiesecker
, J.M., H. Copeland, A. Pocewicz, B. McKenney
2009. Development by Design Blending Landscape
Level Planning with the Mitigation Hierarchy.
Frontiers In Ecology and the Environment In Press
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Forming the zygote of environmental
sustainability in Casanare (Colombia)

• Rob Cox on behalf of BP

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About Colombia and the BP Operations

• Population 43000.000
• Total Area 207040.800 h
• Natural regions Caribbean, Pacific, Andean,
  Orinoquia (grasslands), Amazon.
• Biodiversity with 0.77 of continental lands has
  10 15 of total world biodiversity
• Precipitation 2000 mm/year.
• The ODC pipeline built (1989 1990)
• The Ocensa pipeline built (1995 1996)

Overview of BP Operations in Casanare BP
Colombia Associations
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Overview of BP Operations in Casanare

• Since 1987 participation and operation over
  Santiago de las Atalayas together with Ecopetrol,
  Total and Triton.
• Hydrocarbon exploration and production
• 2 Central processing Facilities Cusiana and
  Cupiagua
• 4 satellite facilities
• 123 drilled wells
• Production 80. 000 bd gross , 200.000 mmmscfd
• 303 Km of roads
• 406 Km flow lines

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Forming the Zygote of Sustainability The
alliance between Corporinoquia and BP
Scarce regional environmental information for
developing sustainability
BP Expertise Resources Need for baseline
information Good relationships
Corporinoquia Expertise Relationship with
Ministries, Research Institutes and
Universities Need for resources
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Time for Action

• Paramo Siscuensí
• 140 hectares bought and donated for conservation
• In 2005 400 hectare were bought in La Tablona
  National Reserve for conservation.
• Making Casanare greener the alliance
  reforestation efforts
• Compensation for BPs operations
• 890 Hectares reforested using native species
• Key areas of 8 river basins
• Planning the future for sustainability
• Organization of river catchments according to
  regional activities (POMCAS)
• Focus on 3 rivers Cusiana, Cravo Sur and charte

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Echoes of the alliance

• A win-win situation for both BP and Corporinoquia
• Knowledge acquisition baseline information,
  cornerstone for planning the future and taking
  action.
• Transparent and trustable relationships between
  the allies.
• Echo to the region bringing
• Knowledge
• Research
• Education
• Consistent environmental management
• Steps towards sustainability

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Conclusion

• Starting early is essential in the screening
  process risk identification at early stages
  allows for
• Identification of show-stoppers
• Allows for avoidance and mitigation option
  evaluation
• Provides early ToR for scoping and ESIA studies
• Allows identification of synergies and
  opportunities for added value
• Insights into impacts on timescale to delivery,
  long lead time baseline studies etc. and hence
  budget and resources.
• Integration of Impact Assessment into the project
  design must consider risks, sensitivities,
  impacts (social, environmental health) and
  opportunities for mitigation.
• Time and effort invested upfront in developing
  successful partnerships with a multitude of
  actors including Local Authorities and NGOs pays
  off.
• Conservation investments and offsets help
  maintain licence to operate and reputation.

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Questions

• What is your awareness of these tools, are they
  being effectively communicated?
• Is there a value in BAPs? What is the feeling
  surrounding BAPs