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Environmental Guidelines - Table 5

OIL & GAS DEVELOPMENT

Oil and gas development, which can include exploration drilling, extraction, production facilities, pipeline transport and tanker loading & unloading, affects the environment through production of waste fluids, emissions and site impacts resulting from field development and related infrastructure. Onshore production drilling to achieve full reservoir development may require large quantities of water, thereby taxing regional water resources. Oil spills, both chronic and accident related, remain a principal public concern due to the their potentially severe and long-term environmental impact. 

The international guidelines for oil & gas development (both onshore and offshore) presented in this Table are condensed from World Bank Group guidelines set forth in the Pollution Prevention and Abatement Handbook (PPAH) and applicable World Bank Group Operational Policies. Large scale projects in this sector, which include extraction of oil & gas for commercial purposes and pipelines, terminals and associated facilities for the large-scale transport of oil (per Annex D), or projects in this sector located in or near a sensitive area, will require submission of an Environmental Impact Assessment (Annex E) describing the environmental effects of the project and measures to mitigate the adverse impacts. 

Further information relative to the guidelines presented in this Table and a description of measures to control emissions and effluents associated with oil and gas projects are contained in the PPAH of the World Bank Group (1998). International guidelines of the World Bank Group for petroleum refineries are presented in Table 8. Guidelines for LNG, liquefaction and regasification plants are presented in Table 10.

The PPAH and the World Bank Operational Policies referenced in this Table can be found at: http://www.ifc.org/enviro/EnvSoc/pollution/guidelines.htm. In the case of ambiguity between information contained in this Table and the relevant sections of the PPAH and referenced Operational Policies of the World Bank Group, the guidelines presented within the PPAH and referenced Operational Policies, in effect as of December 18, 2003, will prevail for purposes of Ex-Im Bank's review and its determination of a project's compliance with the applicable international guidelines of the World Bank Group.

AIR QUALITY
AIR AND STACK EMISSIONS - Concentrations of contaminants from significant sources (equivalent to heat input >10 million BTU/hr) should not be diluted nor exceed the following limits: 

Note: Nm³ refers to a cubic meter at 00C and pressure of 1,013 milibars under dry conditions.

*Emissions of hazardous air pollutants (HAPs), including VOCs (Benzene, Toluene, etc.) and inorganic substances (HCl, H₂SO₄, metals, etc.) should be minimized to the extent possible. The emission levels of these substances for a particular project will be evaluated based on the processes used and available emission control technologies. Storage tanks and loading areas should have vapor recovery systems to control losses of VOCs.

AMBIENT AIR QUALITY - EIAs required in conjunction with new oil and gas development projects, or large expansions to existing projects, should contain air-modeling studies that take into account existing air quality data to assess the quantitative impact of the new project (or development field expansion.) The aggregate level of emissions from all sources measured at the gas or oil field boundary as ground concentrations, including emissions from new and existing facilities, should not result in ambient air conditions that exceed local standards or the values set forth below: 

For projects containing emission sources that exceed 200 million BTU/hour (>58 MWe), those limits set forth in Table 6 (Thermal Power Plants), which relate to a project's area of influence, may be used as an alternative to the more stringent property-boundary levels noted above for general oil and gas development sources.

WATER QUALITY
LIQUID EFFLUENTS FOR OFFSHORE DEVELOPMENT

The following "Best Practices" (listed by the IFC) should be adopted to manage offshore effluents and waste products:

1. Usage of closed loop systems and use of enhanced solids control systems to reduce the amount of wastes from circulation systems and the amount of dilution;

2. Reduction of hydrocarbon content of cuttings by either mechanical, chemical or thermal clean-up treatment (where possible), transportation to onshore treatment facility, or downhole injection 

3. Utilization of chemicals with the lowest toxicity and lowest levels of biologically available heavy metals (cadmium, mercury, etc.) and other hazardous substances, especially persistent organic chemicals and substances with a potential to bioaccumulate;

4. Minimization or avoidance, where possible of the use toxic additives in drilling fluids

5. Consideration of alternatives to surface discharge of produced water such as re-injection, onshore treatment & disposal or down-hole separation of oil and water

LIQUID EFFLUENTS FOR ONSHORE DEVELOPMENT 
Process wastewater, domestic sewage and contaminated stormwater should be treated to meet the following specified limits before being discharged to surface waters. Reduction in the generation of effluents through process modifications and recycling is recommended.

Liquid effluent discharges to a public or private central wastewater treatment system may be subject to pre-treatment requirements. Applicants should provide information from the wastewater operator confirming that the treatment system has the capacity to adequately treat the project's liquid effluents.

For projects potentially causing erosion and sedimentation impacts in receiving waters, a plan should be submitted incorporating measures to mitigate the impacts on water quality and aquatic life. 

OTHER GENERAL ENVIRONMENTAL REQUIREMENTS

• Monitors for hydrogen sulfide must be installed wherever this gas may accumulate. The monitors should be set to activate warning signals whenever detected concentration levels of H₂S exceed 5 ppm.

• An assessment of oil spill risks and potential impacts must be conducted, and an oil-spill prevention response plan and pollution control plan must be developed and implemented.

• Minimization, to the extent practical, of flaring to reduce greenhouse gases and harmful emissions must be practiced.

• A reclamation and closure plan for the site should be developed early in the process to address the removal and disposal of facilities and restoration of the site in an environmentally sensitive manner.

• Minimize (avoid where possible) the use of toxic additives in drilling fluids.

• Maximize the use of water based mud systems.

• Recycle/reuse drilling mud decant fluids.

ENVIRONMENTAL GUIDELINES SPECIFIC TO OIL PIPELINES

• Positive pipe corrosion control measures;

• Program of periodic inspection and maintenance;

• Automatic leak detection systems and where practical automatic pump shutdown systems;

• Adequate engineering design providing adequate protection from water currents, storm events, likely external physical forces;

• Accurate and complete records of all inspections, leak incidents, unusual events, and safety measures taken;

• Emergency response plans and provisions (preparedness) for leaks and spills;

• Minimization of disturbance to natural vegetation, soils, hydrological regimes, and topography.

SOLID AND LIQUID NON-HAZARDOUS WASTES
Applicants should provide a waste management plan that incorporates environmentally safe waste management and disposal practices. Recycling or reclamation of materials is encouraged where possible. If recycling or reclamation is not practical, wastes must be disposed of in an environmentally safe manner that incorporates best management practices, as well as in compliance with applicable local laws and regulations. Offshore development projects must comply with the provisions of the MARPOL convention.

HAZARDOUS AND TOXIC MATERIALS AND WASTES
Projects that include the handling, storage, treatment and disposal of hazardous materials must include a management plan for those materials which contain the following elements:

• Existing equipment and systems involving PCBs or CFCs should be phased-out and disposed of in a manner consistent with the requirements of the host country and in accord with the recommendations set forth in the PPAH ("Industrial Management of Hazardous Wastes").

• Storage and liquid impoundment areas for fuels, raw and in-process materials, solvents, wastes, and finished products should be designed with secondary containment or liners, where required, to prevent the contamination of soil, groundwater and surface waters.

• Maintenance of all hazardous materials in clearly labeled containers or vessels

• Storage and handling of all hazardous materials appropriate to their hazard characteristics: reactivity; flammability; corrosivity; radioactivity; and toxicity

• Fire prevention systems and secondary containment for storage facilities, where required, to prevent fires or the release of hazardous materials to the environment

• Hazardous wastes must be treated and disposed of in a manner to prevent the contamination of soil, groundwater and surface waters and to avoid the release of toxic substances in the environment.

• Dispose of drilling muds in a manner that minimizes the impacts on the environment

• A suitable remediation plan will be developed to address the clean-up, as necessary, of contamination on soil and water as appropriate, for the specific site conditions.

NOISE
The project boundary is the commonly accepted location for evaluating project-related noise impact, although the outer edge of a buffer zone or other uninhabited area may be appropriate in selected cases.

AMBIENT NOISE: Noise abatement measures should achieve either the levels given below or a maximum increase in background levels of 3 dB(A) when measured at receptors located outside the project boundaries.

RESETTLEMENT, INDIGENOUS PEOPLES, CULTURAL PROPERTY (When Applicable)
Project site selection should take into account and minimize to the extent practical adverse impacts to indigenous and other vulnerable people within the project's area of influence resulting from involuntary resettlement, land use changes, population influx due to increased access caused by the project, or effects on culturally significant artifacts or sites.

Where large resettlement or relocation becomes unavoidable, a Resettlement Action Plan (RAP) must be developed and implemented in compliance with host-country laws and international guidelines such as those of the World Bank Group. (See Operational Safeguard Policies of the World Bank: OP 4.20, Indigenous Peoples; OP 4.11, Safeguarding Cultural Property and OD 4.30, Involuntary Resettlement). 

NATURAL HABITATS (When Applicable) 
Project site selection should take into account and minimize to the extent practical impacts to the ecology within the project's area of influence. Care to avoid/minimize impacts should be demonstrated, particularly in the case of important and critical natural habitats as defined in World Bank Operational Policy 4.04; Natural Habitats. For projects situated in sensitive locations, the EIA should address the risk of direct and indirect impacts on the environment of the project's area of influence as well as measures to mitigate these impacts. Guidance in protecting natural habitats is provided in OP 4.04. 

ENVIRONMENTAL MANAGEMENT AND MONITORING (When Applicable)
For Category A projects, an environmental management and monitoring plan (EMP), as described in Annex E, should be provided that sets forth: (a) the measures to be taken during the implementation and operation of a project to eliminate or offset adverse environmental impacts, or reduce them to acceptable levels; (b) the actions needed to implement these measures; and (c) actions required to assess the effectiveness of the mitigation measures employed. Specific requirements of the EMP will be made on a case-by-case basis according to the project's environmental sensitivities. The World Bank Operational Policy 4.01 provides guidance with respect to the preparation of an EMP.