Tuesday, May 30, 2023

REDRESSING HUMAN RIGHTS VIOLATIONS IN MINING COMMUNITIES: A GREAT VALUE OR UNFORTUNATE SCARCITY?

African countries have been made to believe that their minerals and other natural resources if well harnessed could play a key role in their development. Ghana for instance has long and rich history of mining and the industry has been central to the political economy of the country.  Africa’s unique mineral resource endowment offers a window of opportunity for African countries to extract better terms from their exploitation and to catalyze growth, poverty eradication and economic transformation. While mining makes some contribution to government revenue, employment generation, foreign exchange earnings and community development, current realities have demonstrated that African countries including Ghana have not optimized the benefits of mining.  

In the face of economic difficulties facing Ghana during the late 1970s to early 1980s, and as a consequence of the global scheme for economic restructuring for developing countries at the instance of the World Bank, the country’s attention was directed to the role of Foreign Direct Investment (FDI) in the mining sector. In the early 1980s, Ghana embarked on a scale of mining sector reforms (which did not have any historical precedent) and formulated generous investment laws and regulations to enable FDI flows into the sector. The reforms translated into mining boom, particularly in the gold sub-sector. Gold mining which was originally concentrated in the Western and Ashanti Regions of Ghana have now extended to other parts of the country such as the Eastern, Brong-Ahafo, Central, Northern and the Upper East and West regions. This together with the type of methods used and the manner in which the lands/concessions are granted for mining in the country has often resulted in very negative impacts on affected communities.

Studies have found that indigenous people in Africa have lost, or are under imminent threat of losing their ancestral lands, territories and natural resources as a result of unfair exploitation for the sake of development. According to literature, natural resource extraction projects such as mining are land–intensive and water-intensive and often directly affect the collective rights of indigenous peoples to their lands and territories which often generate conflicts between corporations, indigenous people and the State over development projects which are initiated without consultation or consent of the very people who are dispossessed of their lands. With time these conflicts have intensified, often resulting in violent clashes between companies and communities. These conflicts have often revolved around the followings:

·       access to land within areas granted to mining companies by local communities who are often in occupation of the land prior to the grant or who exercise user rights in respect of the land;

·       the lack of or inadequate compensation for deprivation of land  and or the destruction of economic crops;

·       pollution of sources of drinking water of local communities without the provision of alternative drinking water sources;

·       destruction of sources of employment and livelihood;

·       destruction of cultural sites; and

·       violation of fundamental human rights with impunity.

These human rights violations and environmental degradation as noted cut across many countries in West Africa sub-region where natural resource extraction is taking place. While the above issues are worrying, most of affected mining communities are unable to access justice for their violated rights. This situation is worsened by inadequate access to legal education, information and legal aid and the inability of poor communities to afford legal representation.

The issue of human rights violations in mining communities will never die unless and until somebody takes leadership responsibility to care for people. My name is Kofi Anokye, a development enthusiast, and by the time I leave this world, it must be better than I found it. Brains, not natural resources, develop a nation!

Tuesday, May 2, 2023

IMPROVING PETROLEUM GOVERNANCE: CONTEMPORARY DISCUSSIONS ON GHANA’S PETROLEUM ENVIRONMENTAL LAWS AND REGULATIONS - Part 5

Gaps in the Laws and Regulations and Corresponding Recommendations

5. Blowout Prevention

Most of the exploitable offshore oil and gas deposits in Ghana’s territorial waters are in very deep seas (seabeds of greater than 2000 meters). Preventing catastrophic accidental releases at deepwater offshore wells is technologically challenging. A keystone for preventing accidental releases is the use of Blowout Preventers (BOPs) designed and operated to meet very robust standards, including redundant mechanisms for triggering the BOP to shut down a well in case of an accident. Following the Deepwater Horizon well blowout and oil spill that occurred in the Gulf of Mexico, which was attributed in part to a faulty BOP, petroleum regulators around the world have focused greater attention on technical and safety measures to prevent similar incidents from happening in the future.

The Petroleum (Exploration and Production) Act, 2016 (Act 919) and the Petroleum (Health, Safety and Environmental) Regulations 2017, (L.I. 2258) relate to accident prevention and containment. The regulations fall short of international standards requiring robust design and operating standards for BOPs, including redundant mechanisms for triggering the BOP to shut down a well in case of an accident.

Recommendation

To remedy these defects, the government of Ghana should consider adopting the U.S. Bureau of Safety and Environmental Enforcement (BSEE) Well Control Rule that imposes design requirements for blowout preventers.

6. Well Plugging and Abandonment

Production wells that can no longer be used must be plugged to prevent oil and gas reservoir fluids from migrating over time and possibly contaminating fresh water aquifers. Well plugging is addressed only briefly in the Petroleum (Exploration and Production) Act, 2016 (Act 919) and corresponding regulations.

Recommendation

Although Ghana’s laws require petroleum operators to abandon wells in a manner that protects underground aquifers and prevents migration of formation fluids, the laws should include specific well plugging standards. An example of abandonment standards for onshore wells is found in Section 319 of the rules and regulations developed by the U.S. State of Colorado’s Oil & Gas Conservation Commission (COGCC).

 

7. Decommissioning & Decommissioning Funds

Ghana’s petroleum regulations require very little information from operators before they undertake reconnaissance and exploration of petroleum deposits. In particular, there is no provision within the petroleum regime that requires operators to prepare and submit plans for decommissioning and site restoration of areas impacted by early-stage activities, including drilling.

Recommendation

(i) Early planning is crucial

Decommissioning of petroleum installations is costly and complex. Governments in many oil-producing countries do not pay sufficient attention to this key phase of petroleum development, and Ghana is no exception. This approach does not reflect international best practices, which strongly encourage decommissioning planning at the outset of project development.

(ii) Decommissioning plans must be thorough

Section 43 of the Petroleum (Exploration and Production) Act, 2016 (Act 919) provides that a decommissioning plan is to be submitted by upstream petroleum operators to the Minister for approval. The plan shall contain detail proposal for a shutdown of operations and disposal of petroleum facilities, or their further use in petroleum activities. The Act 919 provides scant detail as to the required content for decommissioning plans, stating only that a plan must contain a detailed proposal for “shutdown of operations and disposal of petroleum facilities” or “further use of the facilities in place of petroleum activities.” The required contents for decommissioning plans are to only consider infrastructure removal or reuse, but do not address environmental restoration and the long-term socioeconomic impacts on local communities.  In line with best practices, the Act 919 should be revised to clarify that decommissioning plans must not only consider infrastructure removal or reuse, but also address environmental restoration and the long-term socioeconomic impacts on local communities.

(iii) Petroleum companies must bear the full cost of decommissioning

Decommissioning obligations arise when oil field life (and profits) winds down; therefore, it is important to ensure that sufficient funds are available to fully implement and complete decommissioning plans. Section 45 of the Petroleum (Exploration and Production) Act, 2016 (Act 919) merely states that a licensee or contract “shall establish a decommissioning fund as prescribed.”  In line with international standards, the Act 919 should be revised to provide mandatory guidance and detail on this matter.

 

My name is Kofi Anokye, a development enthusiast, and by the time I leave this world, it must be better than I found it. Brains, not natural resources, develop a nation!