Vinccler has presented plans to address these impacts to ensure that the proposed project will upon implementation of the specific agreed measures, comply with the environmental and social laws and regulations in Venezuela and the World Bank/IFC environment and social policies and the environmental, health and safety guidelines. The information about how these potential impacts will be addressed by the company is summarized in the paragraphs that follow.
Cumarebo is a mature oil and gas field located in the state of Falcon which is situated in the north western portion of Venezuela. In the Cumarebo field a total of 169 wells have been drilled to date and currently 13 wells are active. Average production for 2004 is projected to be 900 barrels of oil per day of crude and 1.3 MMcf/d of gas. As part of the development program of the Company, additional wells will be drilled in Cumarebo and a short pipeline, approximately 1.7 km, will be built to connect the connect with the ICO pipeline. La Vela field is located approximately 15 km from the city of Coro which has been designated by the UNESCO as World Heritage Site 8 wells have been drilled to date. At the La Vela field, the initial development plan comprises the work-over of 3 existing wells, drilling and completion of 3 new wells, a water disposal well, the construction of a central gas facility and a 1.9 km pipeline to connect with the ICO pipeline.
The company performed an environmental audit of the existing facilities at the Cumarebo field prior to commencing operations. The report indicated that soil conditions near the operational facilities were not contaminated, and this is evident by the presence of vegetation. However, some areas presented erosion problems. The company has implemented corrective actions to control erosion. The existing facilities have appropriate secondary containment, preventive signals, all the equipment is fenced in, including the wells that are located near communities. Authorization is required to enter at all the facilities. Next to the Cumarebo field are the storage tanks for crude oil. Trucks arrive at this area to fill-up and then transport the crude oil to the PDVSA refinery located to the west of East Falcon. The trucks have emergency equipment for small emergencies, but also maintain radio communication with the Refinery. The truck company is approved and authorized by the Ministry of Energy and Mines (MEM). The facilities at Cumarebo are equipped with firefighting equipment
The company also conducted an environmental audit for the La Vela Field, the report indicates no contamination from either oil or gasoline. Most of the vegetation remains in excellent condition and no erosion was visible. The existing wells have appropriate security precautions including fencing and safety valves.
For the development of the La Vela field the company is in the process of preparing the Environmental Impact Assessment (EIA). The selected area for the development of the field is uninhabited and the vegetation is semi-arid. The proposed central processing facility (CPF) will have a surface area of 95,000 m2, but the acquired property is of 230,000 m2 for safety and security purposes. The CPF will have production separators, compressors, water pumps, LPG pumps, tanks for LPG storage, water and crude. The CPF would also have a fire fighting system in place as well as emergency management plans for any type of incidents and/or accidents.
At the Cumarebo and the La Vela fields the Company will install approximately 1.7 km and 1.9 km respectively of feeder pipelines to connect to with the first stage of the ICO gas pipeline which is being constructed. The ICO pipeline, once fully constructed will be 298.5 km long and crosses the states of Carabobo, Yaracuy and Falcon. PDVSA is responsible for managing the construction of the ICO pipeline which will eventually include 11 stations, 1 valve station, and two compression plants. PDVSA Gas has commenced construction of the first stage of the pipeline from the town of Moron to Rio Seco. The EIA for the ICO gas pipeline has been prepared by Hidroambiente a consulting firm approved by the Ministry of Environment. The EIA has also been approved by the Ministry of Environment.
Vinccler will only use the western segment of ICO pipeline (110 km) to transport the gas produced at Cumarebo and La Vela. As the Vinccler project will not use the remaining section of the ICO pipeline to the east of Cumarebo (approximately 188.5 km), only the first segment of the ICO pipeline is considered as part of the associated facilities for this project. However, the IFC Environmental and Social Department will do an assessment (travel and inspect the remaining route of the pipeline) of the ICO pipeline.
The EIA for the ICO pipeline indicates that the planned routing of the remaining portion of the pipeline will pass through four areas under ABRAE (areas under special protection). These include a national park, a protected forest, an area of tourism interest, and an area of agricultural interest. The park and the forest are considered of high ecological sensibility and the other two of medium ecological sensibility under the ABRAE definitions.
Vinccler has an environmental policy statement which calls for the protection of the environment and biodiversity by following specific strategies established by the company. The policy also stresses the protection of human health through appropriate training and the compliance with the Venezuelan environmental regulations. The policy will be updated to include plans that the company has for social and community development.
Statistics provided by Vinccler demonstrate that in the past five years the company, as well as its sub-contractors, have not had serious or lethal accidents. Vinccler has training programs for all personnel. To maintain the motivation of staff and safety in the field, supervisors provide training on safety, analysis of job risks, consultation and analysis of accidents and/or incidents occurred in the areas of the project, consultation and disclosure regarding conservation of the environment and disclosure of the Law on Occupational Health and Safety. The company has a training program for new employees as well as refresher courses for long term employees. In 2004, Vinccler has had two emergency drills at the Cumarebo plant, one for fire fighting and the other one for oil spills.
Although no cultural property has been identified in the immediate area of Vinccler operations, as there are areas of potential cultural importance in the larger areas, the Company has a protocol to stop work and bring in a professional archeologist should any accidental cultural property finds be made.
11.Vinccler uses procedures to deal with compensation for any local land use associated with operations in the La Vela and Cumarebo areas in compliance with both Venezuelan law and World Bank/IFC requirements. Vinccler always seeks to reach mutually-agreeable fair market value compensations for land use based on willing-buyer willing-seller negotiations. Land use includes seismic work, flowline construction and the central processing facility. In all cases, local market value guidelines are used for compensation. This is also the practice and policy of PDVSA, who will employ this same practice and principle along the ICO pipeline. The site selected by Vinccler for the construction of the central processing facility is currently uninhabited. Vinccler is currently negotiating a lease for this land.
12.Vinccler’s interaction and communication with local communities fall into 2 areas: community development and employment. Local Union members indicated that there has been good collaboration with Vinccler for 5 years, their relations with Vinccler have been good and that Vinccler has kept its commitment to hire local workers. The company works within the requirements of a collective bargaining agreements and complies with the labor laws. Vinccler’s staff meet regularly with local communities and maintain open communication with community leaders. Complaints and queries can be channeled through these representatives. Vinccler is working closely with the local consultancy firm, Pronostico, to:
- review and assess the company’s current social strategies and policies; and
- carry out a survey in the field areas and meet with communities in order to assess their needs.
The consultation process and information gathered will be used to refine the company’s community development in East Falcon.
The social aspects of the projects developed by Vinccler are managed by a committee that includes management from headquarters and staff from the East Falcon unit. The committee assess social programs with respect to sustainability and priority with the local communities. Recently, Vinccler has been supporting local communities through the provision of supplies to local schools, the distribution of medicines, and the provision of financial aid for local housing repairs. As noted above, the company is reviewing programs to ensure that they will focus proactively on important needs identified by local communities. An annual budget of $60,000 has been set aside for the new programs and a number of projects are already being supported with a focus on health issues. An example is a campaign aimed at identifying the cause of intestinal parasites and then providing medicines or training to reduce the incidence of these maladies. The company has developed a good working relationship with some dynamic local NGOs, including Aprodesa (Asociación pro-desarrollo de Santa Rosa ) in the town of Santa Rosa. Vinccler is developing projects with some of these NGOs.
