The sponsor has presented plans to address these impacts to ensure that the proposed project will, upon implementation of the specific measures agreed, comply with applicable host country laws and regulations and World Bank/IFC requirements. The information about how these potential impacts will be addressed by the sponsor/project is summarized in the paragraphs that follow.
Omimex is in the process of establishing an integrated Environmental and Social Management System (ESMS) to address environmental, health and safety, and social issues. The ESMS will include corporate policies and procedures to ensure that Omimex projects are implemented in compliance with IFC’s policies on involuntary resettlement, cultural property and indigenous peoples. One of the functions of the ESMS will be the standardization of procedures and instructions for employees as well as for contractors in the fields operated by Omimex. The ESMS would be ratified by the General Manager of Omimex and implemented throughout the company, including contractors.
Omimex has formulated a plan for 2002-2004, which includes the development of the Jazmin, and Under River heavy oil fields, as well as the expansion of the company’s 100% owned pipeline. These fields will be developed in stages, beginning with the Jazmin field.
In April 1998, the company prepared an Environmental Impact Assessment (EIA) for the drilling of production wells and gathering lines for the Jazmin field. On the basis of this document, the Colombian Ministry of the Environment issued a Licencia Ambiental Global (Global Environmental License) in July 1999. Omimex requested the modification of this license in August 2001 for the drilling of production wells in “cluster” Ac and Ad and for the construction and drilling of injection wells A and B. The company is currently awaiting the Ministry’s decision.
The Jazmin field is located in the municipality of Puerto Boyacá. The field will be developed through the directionally drilled wells in clusters of 2.4 hectares. In total, there will be 320 wells in 28 clusters. In addition, the company will construct one production module (treatment plant for the separation of water and gas), one transfer station and one pumping station to provide crude to the pipeline Velázquez – Galán. By selecting the drilling of wells in clusters the company will reduce by 26% (compared to the current method of single-wells) the total amount of land used for access roads and the movement of soil. The cluster method will increase safety during exploitation, and improve the efficiency of the high temperature steam distribution systems by connecting dozens of wells to the same steam injection line.
Water-based drilling mud will be used for all the wells. The drilling mud will be treated in a series of lined pits where solids will be continuously separated from the water. In one of the pits water will be treated to adjust the physical-chemical properties of the water to standards required under Colombian regulations. The treated water will be applied to roads for dust control. The oily mud will be mixed with quarry material to be used for road maintenance. Omimex has contracted the services of a specialized company to manage solid waste disposal. Omimex will install and operate an incinerator for the waste. The company will establish a recycling program, which will also be a component of the community development program. Hazardous materials will be the responsibility of the contractors, however, the contractors will follow the procedures and policies established by Omimex in the management of hazardous materials.
The necessary water for domestic and industrial operations will be supplied by water wells drilled at strategic sites in the Jazmin field and from the Magdalena River. The company has obtained the appropriate permits for the extraction of water. Water used in extraction and drilling activities will be treated on-site and re-injected. Storm water (non-contaminated) will be contained on-site through a system comprised of concrete troughs and then routed through a sedimentation process and finally discharged into the flood plains. A second system of concrete troughs will collect contaminated water that will then be routed to the mud pits for treatment. Sanitary water will be treated in septic tanks.
Gas produced by exploration/exploitation activities will either be re-injected or used as a supply source for Omimex equipment (e.g. steam generators). The Jazmin oil field has minimal H2S.
There are no protected areas or national parks within or adjacent to the Jazmin oil field. The Jazmin oil field is characterized by flood plains and marshes. In addition, the areas surrounding the oil field are cultivated or used for livestock and have low biodiversity.
The Velásquez-Galán oil pipeline, built in 1955, has an extension of 189 kms and is located in the Magdalena River Valley . The pipeline begins at the Velásquez 26 located in the municipality of Puerto Boyaca. After 13 km, the pipeline begins to run parallel to the Ecopetrol pipeline and the Magdalena River. Once it reaches the Cantimplora pumping station, it begins to diverge from the Magdalena River and the Ecopetrol pipeline. At the 119 km mark the Velásquez-Galán once again begins to run parallel to the river until it reaches km 189 at the station Terminal El Sauce. According to agreements with Ecopetrol, the crude is pumped from this terminal to Ecopetrol’s Galán station.
Due to urban growth in the municipality of Barranca, 9.5 km of the Velásquez-Galán pipeline passes through the center of the city of Barrancabermeja. The Municipal Council of Barrancabermeja established in 1993 the corredor de seguridad (safety corridor) for the municipality. The corredor establishes where the pipelines entering the city can be located. Based on this requirement, Omimex will relocate the 9.5 km of their pipeline and the new route for this portion of the pipeline will be located outside the urban center of the city and will not interfere with natural resources (e.g. rivers, marshes). The route will transverse natural pastures without interfering with forests or environmental sensitive areas.
The company is required by Colombian regulations to prepare an Oil Spill Prevention and Countermeasure (SPCC) plan. Omimex has prepared this plan, which has been approved by the environmental authorities in Colombia. The plan evaluates the risks posed by the pipeline to the environment and communities and establishes procedures for spill notification and training for persons involved in spill prevention and emergency response. For remote areas the plan has established a training program APELL (Awareness and Preparedness for Emergency at the Local Level) for communities to manage the emergency until the emergency team of Omimex arrives to the spill area. The plan establishes three levels of emergency for incidents/accidents and each of these levels has its appropriate strategy and personnel dedicated to it. Along the pipeline the plan has identified six points of control based on the sensitivity of the human and ecological environments. Each of the control points has a card that details the measures to take in the event of a spill or accident.
Areas that potentially could be affected by soil contamination from leaking or spills have been identified along the pipeline route. The company has prepared a plan for the clean up and restoration of these areas in case of spills or leaks.
Colombian regulation does not require a formal public consultation as part of the development of the Jazmin oil field. However, the company undertook a series of workshops to present details of the project to the community (e.g. employment opportunities, characteristics of project). Prior to the approval of the EIA and issuance of the environmental license, the company is required to present to the proper authorities a certificate indicating that “special ethnic” groups (e.g. indigenous communities and/or afro-colombian communities) are not within the direct area of influence of the project. Omimex presented the certificate indicating that there are no indigenous and/or afro-colombian communities in the area of direct influence of the project.
Omimex has developed an Environmental Management Plan (EMP) for the Jazmin oil field and the Velásquez-Galan pipeline, which has been approved by the environmental authorities in Colombia. Omimex is also in the process of developing a system of internal auditing to improve occupational safety, and the management of the environment. Under the Colombian regulations a representative of the Colombian Environmental Ministry (“Interventoria Ambiental”) is on-site permanently to monitor the implementation of the EMP. This representative will also conduct all the analysis necessary under the EMP as required by the Government. Monthly reports are presented to the environmental authorities.
Omimex has environmental, health and safety policies and procedures for the operation of the Jazmin oil field. These are implemented through the environment department via training, shift meetings, and weekly safety meetings. Training includes safe work programs, health and safety, waste management, fire, and spill prevention.
Omimex plans to acquire land for the Jazmin, and Diamante oil fields. Colombian legislation and, specifically, the Oil Code, provide legal support for the acquisition of land or establishment of easement rights to carryout petroleum exploration and exploitation activities. The policy of Omimex is to buy land or establish easements through direct negotiation with owners. When undertaking negotiations, Omimex first carries out a series of information gathering steps to facilitate an agreement, including exact location and measurement of the property, accurate identification of owners and/or administrators, title search and validation, and an analysis of market prices. The company’s policy is to seek a negotiated agreement with owners and, to date, the company has not had to resort to land acquisition through expropriation, despite having legal authority to do so. When an agreement is made with the owner, Ominex takes out title on the land whether the purchase is for land or whether it is for easement rights. In the projects that Ominex has undertaken in the Middle Magdalena zone, the company has negotiated with owners of large cattle ranches in the area. These individuals have not been adversely impacted by the sale of their land; rather, they have received above market prices for their properties.
Omimex has developed a Community Strategy (Estrategia Comunitaria) in order to assist the communities located in the area of influence of its projects. The strategy defines three areas of community development activities: health, education, support to micro enterprises, and recreation and protection of the environment. The company’s Community Relations Department is in charge of implementing this strategy in collaboration with local organizations. In 2001 Omimex allocated US$206,553.00 to community development projects.
