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)
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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
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Environmental Permits