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

1. Oil and Gas Industry Experience: Lessons Learnt, examples and BP case-study Rob Cox (IPIECA)

2. 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

3. Company and Association Members

4. 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

5. 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.

6. 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)

7. 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.

8. 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)

9. 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

10. 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)

11. 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.

12. 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 59:77-84. 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

13. Forming the zygote of environmental sustainability in Casanare (Colombia) Rob Cox on behalf of BP

14. About Colombia and the BP Operations • Population: 43´000.000 • Total Area: 207’040.800 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

15. 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

16. 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

17. 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 BP’s 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

18. 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

19. 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 NGO’s pays off. • Conservation investments and offsets help maintain licence to operate and reputation.

20. 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