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Environmental Assessments in the Oil and Gas Industry – An International Perspective
as part of the ongoing activities of the facility. Its scope can be fairly narrow, Team Approach
and may be limited to a simple ‘what if’ discussion. In other situations, a A team approach is commonly used in conducting environmental
quantitative approach – similar to the hazardous risk assessment – would assessments. The selection of team members plays an important role in
be required. However, regardless of the depth of the review, an the success of the assessment. The purpose and scope of the
environmental design review is conducted as a standard management of assessment generally affects the size of the team. Other key factors
change procedure, and the results are integrated into the final design of include the complexity of the assessment and the presence of local
the facility. The critical success factor in this type of assessment is an environmental experts. The assessment team typically consists of
accurate review and mitigation approach within the project schedule.
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company environmental professionals or/and outside consultants and
environmental experts, with special team members invited as needed.
Environmental Impact Assessment Team members are typically selected based on their technical expertise,
Environmental impact assessment is a common requirement of financial interpersonal and communications skills and familiarity with applicable
institutions, government agencies and other stakeholders for new or environmental regulations and company operations and requirements.
expansion projects. It presents a different type of challenge to the
environmental professional as it requires forecasting and long-term Conducting the Assessment
predictions of environmental implications. However, it is a useful The assessment can be conducted periodically or on an as-needed
assessment to minimise the environmental impacts in the most cost- basis. Environmental compliance and management system assessments
effective manner. The components of this assessment include a for operating facilities are performed on a periodic basis, whereas the
description and scope of the project, relevant environmental regulatory rest of the assessments are conducted on an as-needed basis.
requirements, documentation of existing environmental conditions, a International oil and gas companies often have their own guidelines on
description of any potential environmental impacts of the project, plans assessment protocols and methodologies. In conducting periodic
and programmes to manage and mitigate these environmental impacts, assessments, the usual activities include staff interviews, document
a monitoring plan to ensure compliance with the environmental reviews, facility inspections, meetings, working sessions and follow-up
management programmes and the establishment of communications co-ordination. In performing the remaining assessments, common
channels with government agencies and the community. It is essential practices include the use of one or a combination of the following
that the potential environmental impacts are identified and resolved areas of expertise: project management, risk assessment, site
during the design phase rather than mitigated during operations. For assessment, engineering design concepts, cost–benefit analysis,
this reason, a critical success factor of this type of assessment is statistical analysis, physical modelling and utilisation of the results of
scheduling it in the front-end engineering of the project.
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relevant case studies and professional judgements.
Decision and Risk Analysis Documentation
Decision and risk analysis is a powerful tool used to compare the costs Documentation covers submitting a clear and concise assessment report
and benefits of a number of designs or strategies. It is commonly used including an executive summary, an introduction, scope and objectives,
to assist in deciding the comparative financial benefits of varying the assessment approach, results, conclusions and recommendations.
business scenarios. Experienced environmental professionals are Finally, it is critical to follow up on the assessment recommendations to
required throughout the assessment to estimate the probable ensure their effective implementation. This is an important step in
environmental implications of each scenario studied. Therefore, in this achieving the desired benefits expected from the assessment.
assessment the environmental professional is just one component of the
business team where the success factor is the right business decision. Challenges
In highly regulated operating environments, such as developed countries,
Execution of Assessments it is common for environmental pollution release limits, recording and
There is no single environmental assessment approach that can be reporting requirements and operating and emergency procedures to be
applied to all companies and all types of assessment. However, there is clearly defined through the federal, regional, state and local regulatory
a best practice used in the oil and gas industry for executing a successful processes. In these areas, environmental assessments are structured and
environmental assessment, which encompasses the following key steps. focused to ensure compliance with operating permit requirements and
other clearly established environmental standards.
Defining the Objectives and Scope of the Assessment
Defining the objectives and scope of the assessment is an important first Significant challenges face companies operating in areas where the
step. Effective stakeholder engagement and a clear scope enable a focus environmental regulatory climate is less well established. Issues of history,
on significant environmental issues, specification of boundaries and culture, geography, governmental structure and the availability of
setting of requirements for all of the necessary baseline information. financial capital all play an important role in determining the extent of the
regulatory requirements expected by the government. Other
Planning for Assessment complications arise when environmental laws have been enacted prior to
Planning for assessment involves scheduling, allocating resources, the establishment of well organised and well funded regulatory agencies
conducting site visits and other logistical matters. It also includes capable of translating environmental law into specific and applicable
compiling legislative guidelines applicable to the assessment and environmental standards for any given facility or operation. In many
collecting all necessary environmental documentation, data and cases, new environmental laws are written on the basis of new
records needed for the assessment. The assessment team leader is technologies that may be achievable only in new plants or facilities. The
typically responsible for arranging these activities. establishment of appropriate transitional and/or ‘grandfathered’
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EXPLORATION & PRODUCTION – VOLUME 7 ISSUE 1
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