Environmental Regulation and Permitting Oscar Graça Couto Lobo & Ibeas Constitutional Basis “Everyone has the right to an ecologically balanced environment, an asset intended for the people’s collective use and essential to a healthy quality of life. The Government (in the federal, state, and local levels) and the community have the duty to preserve it for the present and future generations” (Federal Constitution, art 225) Legislative Responsibility (who sets the rules) • Constitution (art.24) grants concurrent lawmaking powers to Federal Government and the States Forests; conservation of nature; protection of the soil and other natural resources; environmental protection, pollution control Liability for environmental damage • Subject to Federal and State rules, Municipalities have powers to legislate on “matters of local interest” (art.30) • Federal Government establishes general principles and rules Must be followed nationally States have supplementary lawmaking powers • In case of conflict between Federal, State and Municipal rules, the most restrictive one generally prevails Enforcement • Common duty of Federal, States and Municipal governments (art. 23) to: Protect the environment and to fight pollution Register, monitor and inspect activities under concession Environmental Permits • Law 6.938/81 (art. 10) • Broad-based prior environmental permitting requirements apply to activities Making use of environmental resources Considered effectively or potentially polluting Capable of causing environmental degradation • Permits needed for different stages Construction Installation Expansion Modification Operation • Location is an important factor Pollution • Law 6.938/81 (art. 3) • Pollution defined as degradation of environmental quality resulting from activities that, directly or indirectly: Harm population’s health, security and wellbeing Create conditions adverse to social and economic activities Adversely affect the ecosystem Affect the aesthetic and sanitary conditions of the environment Discharge substances or energy not in accordance with established environmental standards Environmental Permitting System • Law 6.938/81, Decree 99.274/90, CONAMA Resolutions 23/94 and 237/97 • IBAMA (Federal Environmental Agency) grants environmental permits for: Offshore activities Activities affecting more than one State Activities affecting Federal lands or subject to Federal jurisdiction • States’ environmental agencies grant environmental permits for activities affecting only their State Seismic Activity Type of Permit Operation Permit (LO) Studies Required Environmental Study (EA) Characteristics of the Simple study for identification of specific studies environmental impacts (fish, whales, turtles) and implementation of mitigating measures. Drilling Activity Type of Permit Prior Permit for Drilling (LPer) Studies Required Environmental Control Report (RCA) Characteristics of the studies ➤Activity description ➤Identification of the environmental risks and the effective impacts of the activity ➤Indication of mitigating measures Testing Activity Type of Permit Studies Required Prior Permit for Production test for Resource Evaluation (LPpro) Environmental Feasibility Assessment (EVA) Characteristics of the ➤Development plan for production test studies or resource evaluation ➤Environmental assessment (risks, impacts) ➤Indication of control measures Development Activity Type of Permit Installation Permit (LI) Studies Required Environmental Impact Study (EIA/RIMA) or Environmental Assessment Report (RAA) Characteristics of the studies ➤EIA/RIMA - Complex socio-environmental study (CONAMA 1/86) - Public Hearing ➤RAA - Environmental assessment - Description of new ventures or activities - Mitigating measures Installation Permit (LI) • For new field developments EIA/RIMA • Where production already exists (installation of new facilities) RAA Production Activity Type of Permit Operation Permit (LO) Studies Required Environmental Control Project (PCA) Characteristics of the Assessment of projects for minimizing studies environmental impacts License Procedures • ANP approves plan/requisition • IBAMA prepares TOR for each environmental study: Obligations and limitations to be observed • Concessionaire is responsible for execution and content of the studies • IBAMA analyses study and asks for complementary data, when necessary consults other entities EIA/RIMA: IBAMA coordinates the public hearings process ANP’s Activities and Responsibilities • Petroleum Law makes ANP responsible for ensuring Preservation of environment Safety of operations Conservation of hydrocarbon resources • Civil and criminal liability for wrongfully granting a permit or authorization Coordination with IBAMA Consistent application of rules • Preventative measures Environmental aspects to be considered in the new regulations (e.g. decommissioning and abandonment, relinquishment) Co-operation with IBAMA • Agreement with MMA (Environmental Ministry) Environmental Agenda Creation of terms of reference for seismic and drilling activities • Coordination with IBAMA Installations and activities license situation check Environmental studies analysis Creation of terms of reference for environmental auditing Joint fiscalization ANP and Law 9.966/00 • MARPOL and CRC/90 Pollution prevention: harbours, ships and E&P facilities Compulsory notification of accidents Oil and dangerous substances Response to emergencies: three levels Fragile ecosystems Compulsory environmental auditing Fines up to R$ 50,000,000 • Shared responsibility on implementation ANP: event and accountability investigation IBAMA: environmental damage evaluation Navy: accountability investigation Development Plan • Project Evaluation Emissions and residues management system Area security classification HSE relevant guidelines • Operational Evaluation Impact on the seabed Onshore developments Community impacts Development Plan (cont.) • Management system Risk management Inspection and maintenance of installations • Planning Emergency response Abandonment Drilling / completion fluids Hazardous substances Annual Work Program and Production Plan • Work Program and Budget Environmental programs and plans Special projects • Annual Production Plan Produced water handling and disposal Gas handling for H2S, CO2, etc Disposal of cuttings and residues Termination of activities • Well abandonment requirements Portaria 176/99 • Relinquishment and decomissioning Exploration blocks: Portaria ANP 114/01 Producing fields: “portaria” under preparation - Facilities deactivation / abandonment program - Cessation, alienation and reversion of goods - Environmental auditing - Documentary proof of obligations and actions Additional Regulations (together with other institutions) • • • • • Detection system for oil leaks in the sea Individual emergency plans Area plan (in construction) Environmental data system (CTPETRO) Agreement with the Navy Maritime traffic control Emergency response back-up data Cooperation for inspection Coffee Break