Environmental Quality Act, 1974
This regulation instates a Director General for Environmental Quality ("DGEQ"), responsible for coordinating all activities related to the discharge of wastes into the environment, being in charge of pollution control and with the objective of enhancing environmental quality. It further refers to standards and criteria for the protection of the environment as well as the control of the volume, types, constituents and effects of wastes, discharges, emissions or other sources of pollution which impact or may impact the quality of the environment.
It has provisions regarding the publication of an annual report on environmental quality, the need to provide information and education to the public, the use of environmental impact assessments, the power to inspect facilities, and applicable penalties. Moreover, the law outlines requirements for permitting associated with potentially polluting activities and the obligation of providing information upon request.
In particular, the law stipulates that it is prohibited for any person to emit or discharge pollutants into the atmosphere in contravention of the conditions set by the Ministry of Natural Resources and Environmental Sustainability (“MNRES”) unless that person has received a licence from the DGEQ (Article 22). The term “pollutants” is defined as “any natural or artificial substances, [including] in the form of gas or vapour, [that is] emitted, discharged or deposited or is likely to be emitted, discharged or deposited from any source which can directly or indirectly cause pollution”. It is unclear whether methane is considered a “pollutant” for purposes of the law. So far, the MNRES does not appear to have issued any specific regulations with respect to methane or oil and gas activities.
Additionally, the law states that the DGEQ can attach a condition to an environmental licence requiring a facility’s owner to repair, alter or replace any equipment at the facility (Article 12). Further, where a pollutant is being or is likely to be emitted from a certain facility, the DGEQ can require the facility’s owner to install any device to record or limit pollution (Article 31). The DGEQ can also require the facility’s owner to adopt any other measure designed to reduce, mitigate or eliminate pollution (Article 31). It is unclear how frequently the DGEQ has resorted to these powers in the past, including whether the DGEQ has resorted to these powers with the view of limiting methane emissions.
Moreover, the MNRES may declare certain activities as “prescribed activities” if it considers that the activity in question may have significant environmental impacts (Article 34). Any person that wishes to carry out a prescribed activity must submit a report to the DGEQ containing an assessment of the proposed activity’s environmental impacts as well as proposed measures to prevent, reduce or control adverse impacts. If the DGEQ considers that the report is not satisfactory, he or she can refuse to approve the report, in which case the proposed activity cannot be carried out (Article 34A). If the DGEQ considers that the report is satisfactory, but the operator fails to adhere to the measures contained in the report, the DGEQ can issue a prohibition or stop work order to the operator (Article 34AA). Under the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 2015, the following activities are considered “prescribed activities”: the development of oil and gas fields, the construction of pipelines, and the construction of oil and gas facilities. It is unclear whether the DGEQ has previously used its powers under the EQA to impose measures related to methane abatement for new oil and gas projects.
The law also establishes an Environmental Fund. The MNRES can require any person engaged in the exploration, extraction, refining, production and distribution of oil to contribute to the Fund at the rate specified by the MNRES (Article 36D). The law states that the Fund can be used to mitigate pollution or prevent the discharge of environmentally hazardous substances. It is unclear whether this Fund has previously been used to finance methane abatement activities.
Lastly, under the law, where a pollutant is being or is likely to be emitted from a certain facility, the DGEQ can require the facility’s owner to measure, record and report the emission of any pollutant (Article 31). The DGEQ can also require the facility’s owner to install and operate a monitoring programme at the expense of the owner for the purpose of detecting or measuring the presence, amount or level of any pollutant (Article 31). Further, the DGEQ can require the facility’s owner to provide certain information, including information on the ownership of the facility, the use of any equipment in the facility, and any pollutant discharged or likely to be discharged from the facility (Article 37).
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