Human rights’ case: Court presses govt on oil, gas explorers’ welfare obligations

Also asks petroleum ministry to provide gas to localities within 5km radius of gas fields.

ISLAMABAD/ LAHORE:

The Supreme Court on Friday directed oil and gas exploration and mining companies to ensure that their activities did not have an adverse effect on the surrounding populations, as it ordered the government to monitor the social welfare obligations of the companies.

The court was revealing its judgment, earlier reserved on the human rights suo motu case regarding the environmental damage caused by the exploration and production (E&P) companies operating in Sanghar district of Sindh.

The court also ordered the Ministry of Petroleum and Natural Resources to implement the prime minister’s September 15, 2003 directive to provide gas to all the surrounding localities and villages falling within the radius of 5km of all gas fields, on a priority basis.

The judgment, authored by Justice Jawwad S Khwaja, said Oil and Gas Development Corporation Limited (OGDCL) – a state enterprise – and more than 25 other domestic and international companies, engaged in exploration and mining of oil and gas in various districts covered more than 30% of the land area of Pakistan.



“The activities of these companies [however] inevitably have a disruptive effect on the populations residing in the areas where they operate,” the order noted, adding that the government had also failed to implement the social welfare funds committed by these companies as part of their contractual obligations.

The court observed that these funds had either remained unutilised or had been under-utilised or the use of these funds had not been adequately monitored to ensure evaluation of spending

“Therefore, we direct the Director General Petroleum Concessions (DG PC) and the relevant provincial government to ensure diligent collection and monitoring of social welfare obligations of the exploration and production (E&P) companies,” the court ordered.

The order said the DG PC, the relevant provincial government and the local government within the area of activities of an E&P company would ensure optimum utilisation of social welfare funds, production bonuses and other sums generated on account of the contractual obligations of the E&P companies.

“This shall be done in an open and transparent manner by ensuring that consistent with article 19A of the constitution [Right to Information] the local population has available to it all relevant information relating to such funds,” the court observed.

The court said the provincial and local governments would review the existing policy guidelines and would make suitable amendments to constitute a committee for each district, tehsil or taluka to ensure coordinated and effective use of the funds.



“The committee for utilisation of funds should ensure that the social welfare obligations of the E&P companies are fulfilled,” the order said.

It also added that the committee would also evaluate progress and completion of welfare schemes and have public hearings for receiving local level inputs in respect of selection and completion of welfare schemes.

The court further ordered that the DG PC would solicit half-yearly reports from all companies in respect of their social welfare obligations towards the local community, including among other things, the locations, budgets and status of schemes completed as well as those which are ongoing, or initiated during those six months.

“The case shall be listed for hearing after 45 days to consider the report of the DG PC and steps taken pursuant to the aforesaid directions,” the order noted.

Published in The Express Tribune, December 28^th, 2013.