Interior Department says Dodd-Frank Provision – “Could be Very Useful”

By Ian Gary, August 18th, 2011

Reposted from Oxfam America

Last year, when Oxfam and allies were celebrating the passage of the Dodd-Frank Wall Street Reform Act and the provision on oil and mining payment  transparency, we were largely focused on the impact that these new disclosures would have on resource-rich developing countries. It turns out, though, that there could be a big financial benefit for the US Treasury and a country struggling with record deficits.

Few realize that the oil and mining payment disclosure provision – section 1504 or the “Cardin-Lugar” provision – requires reporting by companies in every country of operation, including reporting of payments in the US from production on Federal lands and offshore oil and gas production on the Outer Continental Shelf. The US Interior Department has just told the Securities and Exchange Commission (SEC) that implementation of this provision could be “very useful” in its work to collect oil and gas revenues inside the US.  The Office of Natural Resource Revenue (ONRR) – charged with collecting and disbursing more than $10 billion in oil and gas revenues each year – has written to the SEC to say that how the agency implements the provision could help them “ensure that energy companies are reporting correctly and paying every dollar due to the American taxpayer.”

Full article

Photo caption: President Obama Signs the Dodd-Frank Wall Street Reform and Consumer Protection Act. Photo by Leader Nancy Pelosi, available under a Creative Commons Attribution-Noncommercial license.

In the wake of the first report cataloging the widespread oil spill damage in the Niger Delta reports of a new spill emerge.

Fresh oil spill seen near Shell pipeline in Nigeria’s restive southern oil delta

By Associated Press, Published: August 21
Reposted from The Washington Post

LAGOS, Nigeria — Community leaders in Nigeria’s oil-rich southern delta say a new oil spill has been seen near a Royal Dutch Shell PLC pipeline where a fire broke out earlier this week.

The oil sheen could be seen Sunday near the Okordia Rumuekepe trunkline in Bayelsa state, which is operated by Shell’s Nigerian subsidiary. The same trunkline saw a fire break out Friday.

Full article

image source:  guardian.co.uk

by Ben Amunwa

Reposted from Platform, August 17, 2011

Today, the Nigerian Extractive Industries Transparency Initiative (NEITI) warned that Nigeria stands to lose billions of dollars in oil revenue over the coming years if the new oil law, the Petroleum Industry Bill (PIB) is passed unamended.

“NEITI does not see the rationale for passing a bill that is designed to reduce government revenue from petroleum operations by a minimum of $3 billion annually through inappropriate and unfavourable adjustments to the fiscal provisions,” the agency said in a statement.

“Sadly, the House of Representatives Report establishes fiscal terms with a government share of oil revenues below internationally competitive levels and with a structure that will result in a rapid erosion of government petroleum revenues during the next 5 years.”

I should point out that Nigeria has lost billions to successive corrupt regimes. But that’s another blog post entirely.

Here’s some background on the PIB.

The PIB, presented to the National Assembly in 2008, is Nigeria’s attempt to re-structure its embattled oil industry, primarily to resolve long-standing funding issues and incorporate NNPC, the national oil company. However, the Bill has been subject to substantial mission creep, and could eventually affect a wide range of issues from fiscal terms, gas flaring to host community rights.

Full article

Read the joint position paper on the PIB from Social Action, ERA, and CISLAC and see the latest version of the PIB

Nigeria: Oil-polluted Ogoniland could become environmental model

UN says clean-up operation following two massive oil spills in the Niger Delta could benefit other African countries developing their oil reserves

By John Vidal
Reposted from  guardian.co.uk, Tuesday 9 August 2011

Ogoniland is one of the most oil-polluted places on earth but it could become a model for other countries wanting to clean up their environments or avoid making the same mistakes, the UN has said.

“This could be the world’s biggest oil contamination clean-up,” said Nick Nuttall, spokesman for the UN’s environment programme (UNEP) director, Achim Steiner. “It is up to the government of Nigeria what happens now, but [from talks with President Goodluck Jonathan in Abuja this week] there appears to be a willingness to act,” he said while in London.

Preliminary cost estimates to decontaminate and restore the devastated ecology of the 1,000 sq km of land and water are nearly $1bn for the first five years, with much more money possibly needed over the full 30 years it will take to clean up the region, said UNEP chief scientist Joseph Alcamo in London.

But he said that if governments and oil companies were prepared to put up the money to act, it could provide work to train tens of thousands of Ogonis, leave the area “pristine” and help many other African countries that were on the point of commercially developing their oil reserves.

São Tomé, Ghana, Uganda, Sierra Leone and Ethiopia all expect to produce oil in the next 10 years. “One in 10 barrels of oil in the world presently comes from Africa. It is very likely that oil production will increase on the continent. Countries can learn from this painful experience,” said Alcamo.

As well as immediate measures, such as warning Ogoni people if they are drinking from polluted wells and proposing that the oil companies rethink their clean-up procedures, the UN recommended that a global centre for excellence for environmental restoration be set up in Ogoniland.

Full article

image: UNEP Environmental Assessment of Ogoniland

Oil spills destroyed my village in Nigeria and decades of environmental and social injustice are still to be addressed

by Patrick Naagbanton, Thursday 4 August 2011
Reposted from  guardian.co.uk

Shell’s admission of liability for two massive oil spills in 2008-09 in my village of Bodo in the Niger Delta is a step forward in the long struggle for corporate accountability. An impoverished village that yesterday lay in ruins has today felt a welcome glimmer of hope and justice.

We are happy with the news that Shell could be forced to clean up the environmental devastation it has caused and to pay more than $400m in compensation. But our jubilation is overshadowed by more than five decades of environmental and social injustice yet to be addressed.

Bodo village is a fishing community in the minority Ogoni region of the Niger Delta. Shell was forced out of Ogoni in 1993, following mass protests led by writer and activist Ken Saro-Wiwa, who was executed on 10 November 1995 alongside eight other campaigners. Shell’s vast network of oil wells, pipelines, flow-stations and gas flares remained in Ogoni and are an everyday reminder of what we have suffered.

Many of Shell’s rusty, leaky pipelines date back to the 1970s and have been poorly maintained ever since (see pages 31-36 and 43 of Friends of the Earth Netherlands report). It was equipment failure that caused Shell’s high-pressure Trans-Niger pipeline to rupture on 28 August 2008, gushing an estimated 2,000 barrels of oil per day into Bodo for weeks. The land and water was covered in thick layers of crude. Shell was also responsible for a second spill from the same pipeline on 2 February 2009.

Oil spills have effectively destroyed my community. Local farmers and fishers were forced to abandon their traditional ways of life. Bodo Creek is, ecologically speaking, dead. The fish that were not killed by the heavy pollution now reek of petroleum and cannot sustain a village population of 69,000 people. Shell has violated our basic human rights to food, water and livelihood. The compensation Shell offered us – £3,500 plus bags of rice and sugar – was insulting and wholly inadequate.

Full article

Image: Ogoni Spill-Amensty International photos

Amnesty International Press Release
For Immediate Release
Thursday, August 4, 2011

Amnesty International, Responding to United Nations Report on Disastrous Oil Pollution in Nigeria, Demands Accountability from Shell Oil Company

Reposted from Amnesty International

Urges Institutional Investors to Urge Shell To “Clean Up Its Act” in Niger Delta

Contact: Suzanne Trimel, 212-633-4150, strimel@aiusa.org

(New York) – Amnesty International said today that Shell oil company has had a disastrous impact on the human rights of people living in the Niger Delta and must be held to account.  The organization was responding to a United Nations report – the first of its kind in Nigeria — on the severe and widespread effects of oil pollution in Ogoniland in the Delta region.

The report from the United Nations Environment Program is based on two years of in-depth scientific research. It found that oil contamination is widespread and severe, and that people in the Niger Delta have been exposed for decades.

“This report proves Shell has had a terrible impact in Nigeria, but has got away with denying it for decades, falsely claiming they work to best international standards,” said Amnesty International Global Issues Director, Audrey Gaughran, who has researched the human rights impacts of pollution in the Delta and is the author of a groundbreaking 2009 report, “Petroleum, Pollution and Poverty in the Niger Delta.”

The U.N. report, which was conducted at the request of the Nigerian government and paid for by Shell, provides irrefutable evidence of the devastating impact of oil pollution on people’s lives in the Delta – one of Africa’s most bio-diverse regions.  It examines the damage to agriculture and fisheries, which has destroyed livelihoods and food sources. One of the most serious facts to come to light is the scale of contamination of drinking water, which has exposed communities to serious health risks. In one case water was found to contain a known carcinogen at levels 900 times above World Health Organization guidelines. The U.N. Environment Program has recommended emergency measures to alert communities to the danger.

“This report should also be a wake-up call to institutional investors. In the past they’ve allowed Shell’s public relations machine to pull the wool over their eyes, but they will now want to see the company cleaning up its act in the Niger Delta – that means putting real pressure on Shell to avoid spillages, compensate those already affected and disclose more accurate information on their impacts,” said Gaughran.

The report reveals Shell’s systemic failure to address oil spills going back many years and  describes how sites that Shell claimed were cleaned up were found by UNEP experts to be still polluted.

Full press release