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Environmental planning and management of offshore hydrocarbon operations: the development of environmental guidelines
Energy Vol. 6, No. II. PP. 130fl308, Printed in Great Britain.
036&5442/81/l I I343-06$02.00/0 Pergamon Press Lid.
1981
ENVIRONMENTAL PLANNING AND MANAGEMENT OF OFFSHORE HYDROCARBON OPERATIONS: THE DEVELOPMENT OF ENVIRONMENTAL GUIDELINES J. T. E. GILBERTand P. HARRISON Environmentand Policy Institute, East-West Center, 1777East-West Rd., Honolulu, HI 96848,U.S.A. Abstract-This paper discusses the planning and management of environmental aspects related to offshore oil and gas prospecting, development drilling and production. In particular it reviews the development of offshore oil and gas environmental guidelines. These approaches are intended to assist top and midmanagement government officials and oil company personnel in discussing environmental aspects both prior to the issuing of concession licenses and during exploration, development and production planning.
INTRODUCTION
The need for reviewing
the environmental aspects at the early stages of a project has been
recognized as follows. “Onshore effects of the development of offshore resources are by far the most important for OECD countries due to their densely populated and industrialized coastal zones and the existence of less populated areas with high amenity and tourist value. Accordingly, adverse environmental impacts will have a high social and economic cost. The critical stage is when a government makes the decision to lease offshore lands for exploration. Once this is done, the pace of events can be controlled only with great difficulty, unless, of course, no oil or gas is found. It is therefore necessary that governments examine at a very early stage the effects that may result from their decision to lease offshore lands.” Thus environmental guidelines are part of a conscious effort to move from the present focus on oil spills and clean up operations to an approach which can identify environmental concerns and develop plans to minimize adverse impacts from the very early stages of a project. Accidents will still happen, and the most serious environmental impacts will be experienced under major oil spill situations. However, effective environmental planning can reduce the likelihood of such accidents and also provide a basis for environmental problem recognition and solving before a firm commitment is made in economic and technical terms. BACKGROUND
Oil spills through accidents with tankers and offshore production wells are the most dramatic sources of oil pollution and in terms of the concentration of such spills are the major short-term oil pollution points. In terms of overall pollution however, Fig. 1 illustrates the relatively low pollution in world terms that is attributed to petroleum emanating from tanker accidents and offshore blow outs. Considerable attention needs to be given to oil pollution that emanates from land based uses. The nature of offshore oil prospecting, and the development drilling and production that may follow, does, however, create potential for considerable environmental risk. Offshore drilling has increased significantly over the last 10 years. The increased price of oil has resulted in prospecting in offshore areas that would previously have been considered uneconomical, e.g., recent drilling in the Great South Basin at 48”, 150 miles south of New Zealand, north of 62”N in Norway and in the Canadian Arctic, and drilling off the north west coast of Australia in water in excess of 2000 m. These hostile environments also make the capping of wells that blow out a difficult and very skilled operation often requiring months before a blowout can be brought under control and the flow of oil to the ocean stopped. The recent Bay of Campeche accident and the 1977 Norwegian North Sea blowout serve as reminders of the timespans required to cap runaway wells.
1304
J. ‘I.
t;. (irk txtKl ;tnd P.HARRISON
Source: M. T W&away. ‘EnvIronmental impact of Offshore Development”, IPIECA paper prepared by B P Ltd for UNEP Seminar, Paris, 1977. Based on NAS study Fig
I.
Oil introduced
into the ocean.
While oil production may be at. or reaching. it\ global production peak, the economic and strategic incentives are such that many areas that may have been considered too environmentally and technically and thus economically difficult for exploration are now receiving attention. Under such circumstances, a sound environmental planning and management approach may be able to minimize the environmental impact on an area. In such cases, the more that is known of the ecology in the area prior to commercial operations, the greater is the chance of using the most efficient pollution treatment systems during normal and accident situations. Some of the impacts are not readily identifiable because they are related to secondary developments and impacts which can affect areas away from the rig itself, e.g., pipelines, coastal impacts and onshore social and economic changes. ENVIRONMENTALMANAGEMENTPRINCIPLES
(1) The ocean, marine life, seafloor and adjoining coastal zone should be seen as an existing environmental resource. Before initiation of exploration, the marine environment needs to be evaluated as a resource. Determination of those resource elements that should be preserved, and those that may undergo alteration or even elimination will provide a planning basis for assessing the impact of a hydrocarbon exploration and possible production program. (2) Effective early environmental planning is based on co-operation, communication and effective information dissemination to all parties. Environmentally-sound planning of offshore oil prospecting and development requires that from the outset, environmental aspects be given equal consideration together with economic and technical aspects. Environmental management should be a joint responsibility shared by the public, government agencies, and the industry concerned. Thus environmentally-sound planning involves the establishment of a dialogue between the prospecting company, government officials and, where feasible, the affected public. A dialogue in the early planning stage will encourage consultative planning. Withholding of information in an industry-government agency dialogue or in an industry-government agency-public dialogue can lead to conflict, particularly with local government and the local public, through lack of opportunity to discuss real or imagined problems. It is essential that policymakers, regulatory authorities and the public be informed of those aspects of offshore oil and gas development which bear on their responsibilities or interests. It is equally important that they be informed in a manner which is commensurate with (1) their level of technical, economic and environmental understanding, and (2) the time that they can direct to that understanding. (3) Early determination of the environmental parameters which the industry will be required to work within are necessary requirements for both industry and the country involved. The cs!ahlishment of these regulatitrnh in the pre-equipment Jtt5ign stage is critical to industry. Once
Environmental planning and management of offshore hydrocarbon operations
1305
construction is started, changes in regulatory requirements that would require design and equipment changes would cause significant time delays and added cost which could shut down the project. (4) In order for the exploration development and production phases of hydrocarbon exploration to proceed, sound and uncomplicated environmental-institutional relationships are required. Jurisdictional control over continental shelf resources within countries is often unclearly defined. The imprecise definition of responsibilities and jurisdiction of different government agencies can contribute to confusion and contradiction. Such confusion is often accentuated by a proliferation of regulations and compliance procedures at different levels of government (federal, state, local). A possible method of avoiding such confusion would be the clarification and/or extension of the mandates of an existing agency to responsibility for offshore environmental regulation. In some instances, use of this approach could require the creation of completely new institutions.
ENVIRONMENTAL
ASSESSMENT
Two aspects stand out in offshore oil operations. (1) The assessment of the existing environment is made difficult because of the highly complex and variable nature and the extent of the ocean environment. Controlled measurements and observations are more difficult for marine-based systems than for land-based systems. (2) The operation is not only impactive on the environment, but the environment places limitations on the operations. Basically three distinct stages are involved in the initial environmental assessment. 1. The assessment of the sensitivities of the existing environment to the proposed venture; 2. The assessment of the technology proposed for environmental protection; 3. The adequacy of (2) to deal with (1). The approach recognizes that at the early planning stage there may be a need to adopt technical changes and to assess economic costs to design an environmentally acceptable proposal. The approach also recognizes that there may be environmental costs. In everyday terms, it is an exercise in decision making “tradeoff” that can be undertaken as the project is developing to enable assessment of the acceptability of drilling and a potential offshore production operation in both national and industry planning terms. It is essential to assess environmental implications based on the best available data. An impact statement or evaluation report may not result in the collection of all the data required. However, such a report, which is in essence an environmental management plan, should identify the areas where ongoing research and monitoring is required, and indicate the operational procedures necessary for an efficient operation in economic, technical and environmental terms. It is desirable for the oil company involved to give a clear statement of the company’s approach to environmental management. Such a statement should clearly state the company’s attitude toward its operation during the exploration, development, and production phases, including such aspects as its plans for eventual “decommissioning” of the field.
EFFECTS OF OPERATIONS
During normal offshore exploration development and production there are routine operational impacts on the environment. Some, such as the shockwaves produced in seismic prospecting, seabed modification for and by pipelines, air pollution from flaring water produced with oil, and refinery wastes are related to various specific phases of development. The escape of drilling muds occurs during drilling. Operational wastes and their impacts are easily identified, but it is frequently necessary to define acceptable concentrations and frequencies. Figure 2 indicates the key environmental aspects under normal operating conditions.
J. T. E. GILBERT and P.
1306 DEVELOPMENT
HARRISON
KEY ENVIRONMENTAL ASPECTS
PHASES
OTHER USERS
hellkh .._^ I.‘_
I
Fig. 2. ACCIDENTS
AND OIL SPILLS
The most obvious, emotive, and critical impacts of offshore oil and gas exploitation occur when oil and refined products are introduced accidentally into the marine environment. Oil enters the environment from blowouts from wells, tanker collisions, and accidents in loading and unloading. By definition these incidents are unplanned and frequently unavoidable. It is estimated that over 6 million metric tonnes of oil are introduced into the oceans each year. It is very important to remember, however, that off shore production per se contributes very little 0.08 million metric tonnes to the total. Although offshore production is not a key source of oil pollution on a world scale, when such pollution occurs it can be both spectacular, as in a blowout, and have critical impacts on coastal areas where oil slicks come ashore. Figure 3 indicates the key environmental aspects under accident conditions. ONSHORE IMPACTS
Offshore hydrocarbon exploitation results in the development of onshore facilities. These can range from supply bases and yards to rig/platform construction areas and, eventually, refinery installations. The number and type of onshore facilities required is a function of both the stage of development of offshore fields and the size of eventual finds. Because of the potential impact of onshore facilities, the whole process of offshore exploitation requires sound management of the resource coupled with effective regional planning procedures onshore. KEY ENVIRONMENTAL ASPECTS
DEVELOPMENT PHASES
OTHER USERS
Coastal shellfIsh Other marine life
Exploratory drilling +
ACCIDENTAL
Development
Fig. 3.
Environmental planning and management of offshore hydrocarbon operations
1307
Three types of onshore impacts can be identified: (i) Land use All onshore facilities require flat land, and in most cases direct access to the sea. The use of this land, or its construction by infilling, can lead to extensive alterations of the nearshore environment. The sites of onshore facilities can also pre-empt other types of coastal uses and alter the land use patterns of an entire region. The process of locating onshore facilities such that they minimize these effects but also fulfill the needs of offshore operators is a critical one. (ii) Labor The employment effect of onshore facilities can be quite marked in local areas. Both imported and local labor used in offshore/onshore operations can help create certain local multiplier effects which give rise to indirect development of the regional economy. If labor influx is restricted only to the construction and/or development phases of exploitation, a “boom-bust” cycle could be created. (iii) Local public services Offshore support facilities use and consume a number of infrastructural type goods and services (water, sewage, roads, etc.) which are normally provided by local authorities. The direct demand for these services by oil-related activities can be increased by the multiplier phenomenon noted above, especially for schooling and social services. Instances could arise where the income generated for municipalities is not sufficient to cover the increased costs. These three types of impact-land use, labor, and local public services-need to be assessed before development takes place. Lack of a regional “strategy”, and mechanisms to offset negative impacts, could result in delays to offshore development that are detrimental to both the country and operators involved.
GUIDELINES
AND CONCLUSIONS
In constructing an integrated approach to environmental management of offshore oil and gas activities, several key areas need to be considered in detail by project managers. These are now summarized in point form, each point being a guideline for action to be taken in constructing a management plan and in negotiating environmental aspects with operators and other marine area users. The guidelines do not constitute policy directives nor are they all necessary in each given situation. They are rather a “checklist” to be considered in developing an awareness of what is involved in managing the impacts of offshore oil and gas activities. It is obvious that any government involved in developing its offshore resources must have as much and as clear information as possible concerning the area to be exploited. The frequency and direction of winds, tides and currents, the structure and dynamic tendencies of seabed formations; the form and development of ecologic communities; the chemical and physical processes taking place in marine and coastal areas; the type, location and importance of other marine users-all must be understood clearly if major impacts are to be avoided. The following guidelines are not concerned with the acquisition and presentation of such information. They deal rather with the points at which such information becomes relevant in the process of environmental management of the offshore and the avoidance of negative physical, and social effects. The purpose of these guidelines, as outlined earlier, is to help government decision makers in their discussions with operators and with other government agencies, but they can also be of use to operators by providing a basis for discussion.
1. Exploration During seismic investigations it is useful and normal to: (i) review seismic instrumentation and sound sources to be used in exploration; (ii) notify the public of the time, date and place of survey operations (Notice to mariners); (iii) communicate with fishermen and obtain their cooperation in temporarily removing fishing equipment during survey operations; and (iv) avoid if possible the use of large explosive charges, particularly in sensitive fishing grounds.
1308
J. T. E. GILBERTand P.
HARRISON
2. Drilling Before drilling commences operators should be required to submit a development plan detailing: (i) when and where drilling will take place, the equipment to be used, and measures which will be taken to avoid geologic hazards; (ii) the kinds of drilling muds to be used and the location and methods of their disposal; (iii) safety measures and equipment to be used in avoiding blowouts; and (iv) equipment and procedures for dealing with potential blowouts, collisions and other accidents. 3. Production Before production begins, the regulating government should be aware of and approve plans concerning: (i) the types of production platforms to be used; (ii) the cleaning and disposal methods for produced water; and (iii) flaring procedures and dispersal methods. 4. Transportation In planning the transport of crude oil/gas to shore, it is normal to: (i) define the location, type, size and capacity of SBM’s and storage facilities; (ii) implement the LOT method of surface transport; (iii) identify and determine the significance of geologic hazards to be considered during the planning stages of SBM’s to pipelines; (iv) assure that construction and design of pipelines, SBM’s and storage units are done in such a fashion as to reduce the risk of rupture by natural and man-made hazards; (v) develop a continuous monitoring and inspection procedure; and (vi) identify land-fall sites and avoid hazard areas and fragile environments. 5. Onshore efects In order to avoid onshore conflict and development problems, it is useful to prepare in conjunction with operators and different levels of government: (i) a development plan for coastal areas to identify sites where facilities (including refineries) will be located; (ii) an investment plan identifying the costs and timing of infrastructure construction; (iii) a strategy to deal with cyclical problems (boom-bust) of development; (iv) mechanisms for intergovernmental agency co-operation; and (v) possible financial measures to help impacted communities. 6. Emergency preparedness Since accidents can happen, a clear plan and set of procedures must be set up, in cooperation with operators, other levels of government and other users to: (i) identify probable impact areas; (ii) acquire and strategically locate the necessary equipment; (iii) identify clear responsibilities both for command and for paying the costs of clean up, salvage and rescue; (iv) set up an educational program for parties involved; and (v) consider an indemnity fund system for impacted users and communities.
036&5442/81/l I I343-06$02.00/0 Pergamon Press Lid.
1981
ENVIRONMENTAL PLANNING AND MANAGEMENT OF OFFSHORE HYDROCARBON OPERATIONS: THE DEVELOPMENT OF ENVIRONMENTAL GUIDELINES J. T. E. GILBERTand P. HARRISON Environmentand Policy Institute, East-West Center, 1777East-West Rd., Honolulu, HI 96848,U.S.A. Abstract-This paper discusses the planning and management of environmental aspects related to offshore oil and gas prospecting, development drilling and production. In particular it reviews the development of offshore oil and gas environmental guidelines. These approaches are intended to assist top and midmanagement government officials and oil company personnel in discussing environmental aspects both prior to the issuing of concession licenses and during exploration, development and production planning.
INTRODUCTION
The need for reviewing
the environmental aspects at the early stages of a project has been
recognized as follows. “Onshore effects of the development of offshore resources are by far the most important for OECD countries due to their densely populated and industrialized coastal zones and the existence of less populated areas with high amenity and tourist value. Accordingly, adverse environmental impacts will have a high social and economic cost. The critical stage is when a government makes the decision to lease offshore lands for exploration. Once this is done, the pace of events can be controlled only with great difficulty, unless, of course, no oil or gas is found. It is therefore necessary that governments examine at a very early stage the effects that may result from their decision to lease offshore lands.” Thus environmental guidelines are part of a conscious effort to move from the present focus on oil spills and clean up operations to an approach which can identify environmental concerns and develop plans to minimize adverse impacts from the very early stages of a project. Accidents will still happen, and the most serious environmental impacts will be experienced under major oil spill situations. However, effective environmental planning can reduce the likelihood of such accidents and also provide a basis for environmental problem recognition and solving before a firm commitment is made in economic and technical terms. BACKGROUND
Oil spills through accidents with tankers and offshore production wells are the most dramatic sources of oil pollution and in terms of the concentration of such spills are the major short-term oil pollution points. In terms of overall pollution however, Fig. 1 illustrates the relatively low pollution in world terms that is attributed to petroleum emanating from tanker accidents and offshore blow outs. Considerable attention needs to be given to oil pollution that emanates from land based uses. The nature of offshore oil prospecting, and the development drilling and production that may follow, does, however, create potential for considerable environmental risk. Offshore drilling has increased significantly over the last 10 years. The increased price of oil has resulted in prospecting in offshore areas that would previously have been considered uneconomical, e.g., recent drilling in the Great South Basin at 48”, 150 miles south of New Zealand, north of 62”N in Norway and in the Canadian Arctic, and drilling off the north west coast of Australia in water in excess of 2000 m. These hostile environments also make the capping of wells that blow out a difficult and very skilled operation often requiring months before a blowout can be brought under control and the flow of oil to the ocean stopped. The recent Bay of Campeche accident and the 1977 Norwegian North Sea blowout serve as reminders of the timespans required to cap runaway wells.
1304
J. ‘I.
t;. (irk txtKl ;tnd P.HARRISON
Source: M. T W&away. ‘EnvIronmental impact of Offshore Development”, IPIECA paper prepared by B P Ltd for UNEP Seminar, Paris, 1977. Based on NAS study Fig
I.
Oil introduced
into the ocean.
While oil production may be at. or reaching. it\ global production peak, the economic and strategic incentives are such that many areas that may have been considered too environmentally and technically and thus economically difficult for exploration are now receiving attention. Under such circumstances, a sound environmental planning and management approach may be able to minimize the environmental impact on an area. In such cases, the more that is known of the ecology in the area prior to commercial operations, the greater is the chance of using the most efficient pollution treatment systems during normal and accident situations. Some of the impacts are not readily identifiable because they are related to secondary developments and impacts which can affect areas away from the rig itself, e.g., pipelines, coastal impacts and onshore social and economic changes. ENVIRONMENTALMANAGEMENTPRINCIPLES
(1) The ocean, marine life, seafloor and adjoining coastal zone should be seen as an existing environmental resource. Before initiation of exploration, the marine environment needs to be evaluated as a resource. Determination of those resource elements that should be preserved, and those that may undergo alteration or even elimination will provide a planning basis for assessing the impact of a hydrocarbon exploration and possible production program. (2) Effective early environmental planning is based on co-operation, communication and effective information dissemination to all parties. Environmentally-sound planning of offshore oil prospecting and development requires that from the outset, environmental aspects be given equal consideration together with economic and technical aspects. Environmental management should be a joint responsibility shared by the public, government agencies, and the industry concerned. Thus environmentally-sound planning involves the establishment of a dialogue between the prospecting company, government officials and, where feasible, the affected public. A dialogue in the early planning stage will encourage consultative planning. Withholding of information in an industry-government agency dialogue or in an industry-government agency-public dialogue can lead to conflict, particularly with local government and the local public, through lack of opportunity to discuss real or imagined problems. It is essential that policymakers, regulatory authorities and the public be informed of those aspects of offshore oil and gas development which bear on their responsibilities or interests. It is equally important that they be informed in a manner which is commensurate with (1) their level of technical, economic and environmental understanding, and (2) the time that they can direct to that understanding. (3) Early determination of the environmental parameters which the industry will be required to work within are necessary requirements for both industry and the country involved. The cs!ahlishment of these regulatitrnh in the pre-equipment Jtt5ign stage is critical to industry. Once
Environmental planning and management of offshore hydrocarbon operations
1305
construction is started, changes in regulatory requirements that would require design and equipment changes would cause significant time delays and added cost which could shut down the project. (4) In order for the exploration development and production phases of hydrocarbon exploration to proceed, sound and uncomplicated environmental-institutional relationships are required. Jurisdictional control over continental shelf resources within countries is often unclearly defined. The imprecise definition of responsibilities and jurisdiction of different government agencies can contribute to confusion and contradiction. Such confusion is often accentuated by a proliferation of regulations and compliance procedures at different levels of government (federal, state, local). A possible method of avoiding such confusion would be the clarification and/or extension of the mandates of an existing agency to responsibility for offshore environmental regulation. In some instances, use of this approach could require the creation of completely new institutions.
ENVIRONMENTAL
ASSESSMENT
Two aspects stand out in offshore oil operations. (1) The assessment of the existing environment is made difficult because of the highly complex and variable nature and the extent of the ocean environment. Controlled measurements and observations are more difficult for marine-based systems than for land-based systems. (2) The operation is not only impactive on the environment, but the environment places limitations on the operations. Basically three distinct stages are involved in the initial environmental assessment. 1. The assessment of the sensitivities of the existing environment to the proposed venture; 2. The assessment of the technology proposed for environmental protection; 3. The adequacy of (2) to deal with (1). The approach recognizes that at the early planning stage there may be a need to adopt technical changes and to assess economic costs to design an environmentally acceptable proposal. The approach also recognizes that there may be environmental costs. In everyday terms, it is an exercise in decision making “tradeoff” that can be undertaken as the project is developing to enable assessment of the acceptability of drilling and a potential offshore production operation in both national and industry planning terms. It is essential to assess environmental implications based on the best available data. An impact statement or evaluation report may not result in the collection of all the data required. However, such a report, which is in essence an environmental management plan, should identify the areas where ongoing research and monitoring is required, and indicate the operational procedures necessary for an efficient operation in economic, technical and environmental terms. It is desirable for the oil company involved to give a clear statement of the company’s approach to environmental management. Such a statement should clearly state the company’s attitude toward its operation during the exploration, development, and production phases, including such aspects as its plans for eventual “decommissioning” of the field.
EFFECTS OF OPERATIONS
During normal offshore exploration development and production there are routine operational impacts on the environment. Some, such as the shockwaves produced in seismic prospecting, seabed modification for and by pipelines, air pollution from flaring water produced with oil, and refinery wastes are related to various specific phases of development. The escape of drilling muds occurs during drilling. Operational wastes and their impacts are easily identified, but it is frequently necessary to define acceptable concentrations and frequencies. Figure 2 indicates the key environmental aspects under normal operating conditions.
J. T. E. GILBERT and P.
1306 DEVELOPMENT
HARRISON
KEY ENVIRONMENTAL ASPECTS
PHASES
OTHER USERS
hellkh .._^ I.‘_
I
Fig. 2. ACCIDENTS
AND OIL SPILLS
The most obvious, emotive, and critical impacts of offshore oil and gas exploitation occur when oil and refined products are introduced accidentally into the marine environment. Oil enters the environment from blowouts from wells, tanker collisions, and accidents in loading and unloading. By definition these incidents are unplanned and frequently unavoidable. It is estimated that over 6 million metric tonnes of oil are introduced into the oceans each year. It is very important to remember, however, that off shore production per se contributes very little 0.08 million metric tonnes to the total. Although offshore production is not a key source of oil pollution on a world scale, when such pollution occurs it can be both spectacular, as in a blowout, and have critical impacts on coastal areas where oil slicks come ashore. Figure 3 indicates the key environmental aspects under accident conditions. ONSHORE IMPACTS
Offshore hydrocarbon exploitation results in the development of onshore facilities. These can range from supply bases and yards to rig/platform construction areas and, eventually, refinery installations. The number and type of onshore facilities required is a function of both the stage of development of offshore fields and the size of eventual finds. Because of the potential impact of onshore facilities, the whole process of offshore exploitation requires sound management of the resource coupled with effective regional planning procedures onshore. KEY ENVIRONMENTAL ASPECTS
DEVELOPMENT PHASES
OTHER USERS
Coastal shellfIsh Other marine life
Exploratory drilling +
ACCIDENTAL
Development
Fig. 3.
Environmental planning and management of offshore hydrocarbon operations
1307
Three types of onshore impacts can be identified: (i) Land use All onshore facilities require flat land, and in most cases direct access to the sea. The use of this land, or its construction by infilling, can lead to extensive alterations of the nearshore environment. The sites of onshore facilities can also pre-empt other types of coastal uses and alter the land use patterns of an entire region. The process of locating onshore facilities such that they minimize these effects but also fulfill the needs of offshore operators is a critical one. (ii) Labor The employment effect of onshore facilities can be quite marked in local areas. Both imported and local labor used in offshore/onshore operations can help create certain local multiplier effects which give rise to indirect development of the regional economy. If labor influx is restricted only to the construction and/or development phases of exploitation, a “boom-bust” cycle could be created. (iii) Local public services Offshore support facilities use and consume a number of infrastructural type goods and services (water, sewage, roads, etc.) which are normally provided by local authorities. The direct demand for these services by oil-related activities can be increased by the multiplier phenomenon noted above, especially for schooling and social services. Instances could arise where the income generated for municipalities is not sufficient to cover the increased costs. These three types of impact-land use, labor, and local public services-need to be assessed before development takes place. Lack of a regional “strategy”, and mechanisms to offset negative impacts, could result in delays to offshore development that are detrimental to both the country and operators involved.
GUIDELINES
AND CONCLUSIONS
In constructing an integrated approach to environmental management of offshore oil and gas activities, several key areas need to be considered in detail by project managers. These are now summarized in point form, each point being a guideline for action to be taken in constructing a management plan and in negotiating environmental aspects with operators and other marine area users. The guidelines do not constitute policy directives nor are they all necessary in each given situation. They are rather a “checklist” to be considered in developing an awareness of what is involved in managing the impacts of offshore oil and gas activities. It is obvious that any government involved in developing its offshore resources must have as much and as clear information as possible concerning the area to be exploited. The frequency and direction of winds, tides and currents, the structure and dynamic tendencies of seabed formations; the form and development of ecologic communities; the chemical and physical processes taking place in marine and coastal areas; the type, location and importance of other marine users-all must be understood clearly if major impacts are to be avoided. The following guidelines are not concerned with the acquisition and presentation of such information. They deal rather with the points at which such information becomes relevant in the process of environmental management of the offshore and the avoidance of negative physical, and social effects. The purpose of these guidelines, as outlined earlier, is to help government decision makers in their discussions with operators and with other government agencies, but they can also be of use to operators by providing a basis for discussion.
1. Exploration During seismic investigations it is useful and normal to: (i) review seismic instrumentation and sound sources to be used in exploration; (ii) notify the public of the time, date and place of survey operations (Notice to mariners); (iii) communicate with fishermen and obtain their cooperation in temporarily removing fishing equipment during survey operations; and (iv) avoid if possible the use of large explosive charges, particularly in sensitive fishing grounds.
1308
J. T. E. GILBERTand P.
HARRISON
2. Drilling Before drilling commences operators should be required to submit a development plan detailing: (i) when and where drilling will take place, the equipment to be used, and measures which will be taken to avoid geologic hazards; (ii) the kinds of drilling muds to be used and the location and methods of their disposal; (iii) safety measures and equipment to be used in avoiding blowouts; and (iv) equipment and procedures for dealing with potential blowouts, collisions and other accidents. 3. Production Before production begins, the regulating government should be aware of and approve plans concerning: (i) the types of production platforms to be used; (ii) the cleaning and disposal methods for produced water; and (iii) flaring procedures and dispersal methods. 4. Transportation In planning the transport of crude oil/gas to shore, it is normal to: (i) define the location, type, size and capacity of SBM’s and storage facilities; (ii) implement the LOT method of surface transport; (iii) identify and determine the significance of geologic hazards to be considered during the planning stages of SBM’s to pipelines; (iv) assure that construction and design of pipelines, SBM’s and storage units are done in such a fashion as to reduce the risk of rupture by natural and man-made hazards; (v) develop a continuous monitoring and inspection procedure; and (vi) identify land-fall sites and avoid hazard areas and fragile environments. 5. Onshore efects In order to avoid onshore conflict and development problems, it is useful to prepare in conjunction with operators and different levels of government: (i) a development plan for coastal areas to identify sites where facilities (including refineries) will be located; (ii) an investment plan identifying the costs and timing of infrastructure construction; (iii) a strategy to deal with cyclical problems (boom-bust) of development; (iv) mechanisms for intergovernmental agency co-operation; and (v) possible financial measures to help impacted communities. 6. Emergency preparedness Since accidents can happen, a clear plan and set of procedures must be set up, in cooperation with operators, other levels of government and other users to: (i) identify probable impact areas; (ii) acquire and strategically locate the necessary equipment; (iii) identify clear responsibilities both for command and for paying the costs of clean up, salvage and rescue; (iv) set up an educational program for parties involved; and (v) consider an indemnity fund system for impacted users and communities.