The Environmental Challenges in the Oil Rich Albertine Graben: A Critical Analysis of the Legal Framework

ABSTRACT Uganda announced the discovery ofcommercially viable amounts ofoil deposits in 2006. This was followed by much jubilation as oil is expected to uplift Uganda’s economy from fangs of poverty and transform her economic development. Howeveri the discovery ofoil has occurred within the Albertine Rjft region, which is one ofthe richest biodiversity hotspots. Unfortunately, at the time the oil exploration starte4 Uganda did not have the requisite law and Personnel with requisite technical skills to manage the sector. The law in existence at the time was so inadequate to address the environmental challenges associated with the oil and gas sector. In 2013, Parliament enacted the Petroleum (Exploration, Development and Production) Act and the Petroleum (Refining Conversion, Transmission and Midstream Storage) Act to regulate the upstream and midstream operations respectively. These laws oblige players in the oil and gas sector to uphold environmental management principles and to design measures to conserve the environmenL It encourages a serfregulation model, which seems not to be working as some oil companies are dumping oil wastes in total disregard ofthe environment and the health of the surrounding community members. Petroleum activities have sofar led to biodiversity destruction leading to climate change, which has forced animals to flee their habitats due to noisa The community has also suffered the blunt ofthis climate change because migrating animals have ended up destroying their gardens. The noise generated by tracks and other seismic equ4pment, has also affected their sleep hence health implications. Equally, the National Environment Act and the regulations made thereunder have not been updated to bring them in conformity with environmental challenges associated with the oil and gas sector. The study therefore, among others, recommends that government strengthens the institutional capacity, both in terms of technical expertise andfinancial capacity in order to achieve a close monitoring and auditing of activities ofoil companies to ensure that they are in line with sound environment management practices. There is also urgent need to review and update the National Environment Act and all regulations relevant to the sector.

 APPROVAL

DEDICATION

DECLARATION .

TABLE OF CONTENTS v

LIST OF STATUTES

LISTOFCASES x

LISTOFACRONYMS xi

ABSTRACT

CHAPTER ONE

I .0. Introduction

I . I Background to the Study 3

I .2 Statement of the Problem 4

I .3. Objectives of the Study 6

1.3.1. General Objective 6

1.3.2. Specific Objectives 6

1 .4. Research Questions 6

1 .5. Scope of the Study 7

1 .6. Justification of the Study 8

1.7. Review of Literature 8

1.8. Research Methodology 13

I .9. Limitations of the Study 13

CI IAPTER TWO 14

ENVIRONMENTAL CI IALLENGES IN TI IF OIL RICI 1 ALBERTINE GRA[3EN 14

2.0. Introduction 14

2. I .0. Eff~cts on the Natural Environment I 5

2.1.1. Impact on Biodi~ersity is

2. I .2. En ironmental Pollution (Land. Water and Air) 16

2.1 .3. Effect of Petroleum Activities on the Land 18

2.2 Effects on human i 9

2.3. Conclusion .20

CHAPTER THREE 22

A CRITICAL ANALYSIS OF THE POLICY. LEGAL AND INSTITUTIONAL

FRAMEWORK FOR ENVIRONMENTAL PROTECTION IN ThE UGANDA’S OIL AND

GAS SECTOR

3.0. Introduction

3.1. Policy framework for the protection ofthe environment in the Petroleum sector 23 -

3.1.1. The National Oil and Gas Policy 1kw Uganda. 2008 23

3.1.1.1. Intioduction 23

3.1.1.2. Analysis ofthe National Oil and Gas Policy 24

3.1.2. The National Policy for Disaster Preparedness and Managiment, 2010 26

3.1.2.1. Introduction 26

3.1.2.2. Analysis ofthe National Disaster Preparedness and Management Policy. 2010 26

3.1.3. The National Environment Management Policy for Uganda 28

3.1 .3.1. The National Environmental Management Policy for Uganda 1994 28

3.1.32. The Draft National Environmental Management Policy for Uganda. 2014 30

3.1.4. Environmental Impact Assessment 32

3.1.5. National Policy on Conservation and Sustainable Development of Wildlife Resource,

2014 35

3.1.6. Uganda National Land Policy. 2013 37

3.1.7. The National Water Policy. 1999 39

3.1.8. The Uganda Fisheries Policy. 2004 41

3.1.9. The Uganda Forestry Policy. 2001 41

32. Legal Framework for oil and Gas sector in Uganda 42

32.1. The Upstream Petroleum (Exploration, Development and Production) Act. No. 3 of

2013 42

3.2.2. The Midstream Petroleum (Refining. Conversion. Transmission and Midstream

Storage) Act. No.4 of 2013 48

3.2.3. The Do~~nstrcam Petroleum Supply Act. 2003 53

3.2.4. The National En’ ironment Act Cap. 153. 1995 54

3.2A.1. Environmental Impact Assessment (EllA) 55

3.2.4.2. Environmental Audits 56

3.2.4.3. Environmental monitoring .57

3.2.4.4. Environmental Standards 58

3.2.4.5. Environmental Restoration Orders 58

3.3. Institutional framework for environmental Governance in the petroleum sector in

Uganda 59

3.3.1 .The National Environment Management Authority 60

3.3.2. Ministry ofEnergy and Mineral Development (MEMD) 62

3.3.3. The Petroleum Authority ofUganda 64

3.3.4. Ministry of Lands, Housing and Urban Development 66

3.3.5. Directorate of Disaster Preparedness and Management, Office ofthe Prime Minister

3.4. Conclusion 69

CHAPTER FOUR 71

A COMPARATIVE ANALYSIS OF OIL PRODUCING COUNTRIES AND THEIR

INTERNAL MANAGEMENT MECHANISMS FOR THE MANAGEMENT OF THE

ENVIRONMENT 71

4.0. Introduction 71

4.1. Internal management mechanisms fbr successfW environment management 72

4.I.l.Norway

4.1.2. Chile 73

4.2. Internal Management mechanisms for environment management in Petroleum countries

where oil has been a curse is

4.2.1. Nigeria

4.2.2. Ghana 77

4.3. Conclusion 78

CHAPTER FIVE 80

KEY FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 80

5.1. Key findings and Conclusions 80

5.1 . I. Internal mechanism: success depends on the strength of legal, policy and institutions

5.1.2. Lack of requisite preparations 81

5.1.3. Upstream and Downstream laws: Enacted with inadequacies 82

5.1 .4. Oil wastes dumped in total disregard of environment and health safeties 82

5.1.5. Biodiversity destruction 83

5.1.6. Capacity constraints 83

5.2. Recommendations 84

5.2.1. Need to monitor oil activities to enforce compliance 85

5.2.2. Need to review the NEA and Regulations 85

5.2.3. Government should invest in Training and research 85

5.2.4. Enactment of the law on pollution damage 86

5.2.5. Zero tolerance to corruption 86

BIBLIOGRAPHY 88