DECISION

ON THE ISSUING OF THE REGULATION ON THE PROTECTION OF THE ENVIRONMENT IN THE SEARCH FOR, PROSPECTION AND DEVELOPMENT OF MINES, IN THE EXPLOITATION, STORING, TRANSPORTATION AND PROCESSING OF OIL AND GAS AND IN RELATED SERVICES

THE MINISTER OF SCIENCE, TECHNOLOGY AND ENVIRONMENT

Pursuant to Decree No.22-CP of May 22, 1993 of the Government on the tasks, powers and organizational structure of the Ministry of Science, Technology and Environment,
Pursuant to Decree No.175-CP of October 18, 1994 of the Government guiding the implementation of the Law on Environmental Protection;
Pursuant to Decree No.84-CP of December 17, 1996 of the Government guiding the implementation of the Law on Oil and Gas;
Pursuant to Official Dispatch No.4180/KGVX of August 20, 1997 of the Government Office on the issuing of the Regulations on the Protection of the Environment in the Oil and Gas Industry;
At the proposal of the Head of the Environment Department,

DECIDES:

Article 1.- To issue together with this Decision the Regulation on the Protection of the Environment in the Search for, Prospection and Development of Mines, in the Exploitation, Storing, Transportation and Processing of Oil and Gas and in Related Services.

Article 2.- The Head of the Environment Department, the General Director of the Vietnam Oil and Gas Corporation, the Directors of the Science, Technology and Environment Services, the Heads of the oil and gas organizations shall have to implement this Decision.

Article 3.- This Decision takes effect 30 days after its signing.

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MINISTER OF SCIENCE, TECHNOLOGY AND ENVIRONMENT




Chu Tuan Nha

REGULATION

 ON THE PROTECTION OF THE ENVIRONMENT IN THE SEARCH FOR, PROSPECTION AND DEVELOPMENT OF MINES, IN THE EXPLOITATION, STORING, TRANSPORTATION AND PROCESSING OF OIL AND GAS AND IN RELATED SERVICES

(issued together with Decision No.395/1998/QD-BKHCNMT of April 10,1998 of the Minister of Science, Technology and Environment)

Chapter I

GENERAL PROVISIONS

Article 1.- This Regulation is issued with a view to preventing and reducing to the minimum the adverse impact on the environment caused by the activities in the search for, prospection and development of mines, in the exploitation, storing, transportation and processing of oil and gas (liquefaction of gas, refining oil) and services directly related to these activities.

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1. Oil and gas organizations are organizations or individuals conducting oil and gas activities. They include:

- State enterprises,

- Enterprises founded according to the Corporate Law,

- Private enterprises founded according to the Private Enterprise Law,

- Cooperatives,

- Foreign - invested enterprises.

2. Oil and gas enterprises are various kinds of oil rigs, mobile or fixed constructions, means and other structures used on the mainland or on the sea in service of oil and gas activities.

3. Production waste are gas, liquid and solid matters which are eliminated during oil and gas activities.

4. Living wastes comprise liquid and solid wastes and other wastes which are eliminated in the living process of humans at the places or constructions to search for, prospect, exploit and develop mines, store, transport, process oil and gas and related services.

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1. All oil and gas organizations conducting the search for, prospection, exploitation and development of mines, storing, transportation and processing of oil and gas and related services on the mainland, offshore islands, internal water areas, territorial waters, the contiguous sea area, the exclusive economic zone and the continental shelf of the Socialist Republic of Vietnam.

2. The constructions of Vietnamese organizations and individuals serving the oil and gas activities in cooperation with foreign countries in places outside the jurisdiction of the Socialist Republic of Vietnam unless otherwise provided for by International Conventions which the Socialist Republic of Vietnam has signed or adhered to.

Article 4.- Oil and gas organizations must have specialized personnel in environmental protection and when necessary a section specialized in environmental protection must be set up.

Article 5.- In the process of carrying out a project on oil and gas the oil and gas organizations shall have the following responsibilities:

1. Not to discharge into the environment gaseous, liquid and solid wastes in excess of the current Vietnamese standard, especially noxious wastes

2. To conduct environment survey and monitoring and the program of supervising the environment according to the Decision of the Ministry of Science, Technology and Environment which ratifies the Evaluation Report on the Environmental Impact of the project and the establishment.

3. To work out and submit to the State managing agency for environmental protection the reports on environmental protection and environmental accidents in conformity with Article 7 of this Regulation.

4. To pay fees related to environmental protection according to prescriptions of Vietnamese law.

Article 6.- Upon completing an oil or gas project, the oil and gas organization must dismantle the fixed constructions, clean up the site of the project and report to the competent State agency.

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1. Each year the oil and gas organization shall have to make and send a report on environmental protection, including documents on the survey and monitoring of the environment to the State managing agency on environmental protection at the place where the oil and gas organization operates within the first 15 days of the next year. The report on environmental protection must reflect the implementation of the ratified evaluation report on environmental impact.

2. In case of an accident causing major damage to the environment as stipulated in Articles 37 and 38 of this Regulation, after completing the handling of the pollution, the oil and gas organization shall have to make a report to the Ministry of Science, Technology and Environment about the cause of the accident, the process of handling the accident and the consequence to the environment.

3. Upon completion of the oil and gas project, the oil and gas organization must make and submit a report on environmental protection in the process of carrying out the project to the State managing agency on environmental protection at the place where the oil and gas organization operates. The report must reflect the implementation of the ratified evaluation report on environmental impact.

Article 8.- The oil and gas organization shall have to work out and submit the report on environmental impact and the plan to handle oil spills according to the following prescriptions:

1. To make the evaluation report on environmental impact and submit it to the State managing agency on environmental protection according to the provisions of Decree No.175-CP of October 18, 1994 of the Government guiding the implementation of the Law on Environmental Protection and the related guiding documents.

2. The contents and procedures for the examination of the preliminary report on environmental impact, the detailed report on environmental impact for each kind of oil and gas activities must comply with the prescriptions of Vietnamese Law on Environmental Protection.

3. To work out the plan to cope with oil spill accidents including all the possible risks that may cause accidents, and proposal for measures to be applied to limit to the minimum the possibility of pollution of the environment, the plan of mobilization of manpower and corresponding equipment for timely handling when an accident happens.

Chapter II

SEARCH FOR, PROSPECTION AND DEVELOPMENT OF MINES AND EXPLOITATION OF OIL AND GAS

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Article 10.- While conducting explosion-provoking activities the oil and gas organization must comply with the provisions of Decree No.27-CP of April 20,1995 of the Government and Circular No.11-TT/CNCL of March 13, 1996 of the Ministry of Industry guiding the implementation of Decree No.27-CP of April 20, 1995 of the Government on the management, production, supply and use of industrial explosives.

Article 11.- The control of the explosion and noise provoking activities is prescribed as follows:

1. Seismic explosions can be conducted only on the mainland in conformity with the contents of the evaluation report on environmental impact already ratified by the State managing agency on environmental protection.

2. The oil and gas organization must ask the permission of the local authorities at least 30 days before conducting an explosion-provoking activity (not including explosion causing activities within the drilling well for seam testing and other daily activities such as tube cutting...). After getting the permission, the oil and gas organization must inform the organizations and individuals operating in areas related to the area of the explosion and must put up warning signs at appropriate places when conducting the explosion.

3. It is forbidden to conduct seismic explosions and to send low flying airplanes that cause sudden noise in areas of national preserves for endangered animals during their nesting or mating season.

4. The oil and gas organizations must pay full compensation for damage caused by explosion provoking activities to humans, animals, plants and constructions such as roads and houses according to prescriptions of law.

Article 12.- The use of drilling solution and noxious or dangerous chemicals must get the permission of the Ministry of Science, Technology and Environment. The grounds for consideration for the granting of permits are the certificates of noxiousness in the experiments conducted in the environmental conditions of Vietnam issued by a specialized agency of Vietnam empowered by the Ministry of Science, Technology and Environment or the permit in a country with conditions appropriate for use in Vietnam.

Article 13.- It is strictly forbidden to use diesel pressure drilling solution.

Oil pressure drilling solution shall not be used. When necessary it can be used but only with the approval after consideration and permission from the Vietnam Oil and Gas Corporation and the Ministry of Science, Technology and Environment.

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Article 15.- The discharge of production waste from oil and gas sea constructions in the areas under the jurisdiction of the Socialist Republic of Vietnam must comply with the following prescriptions:

1. Not to discharge into the sea oil slug and waste oil, the oil pressure drilling solutions, oil containing solids and other noxious liquid and solid wastes. These wastes must be collected and transported to the mainland for processing according to prescriptions.

2. It is allowed to discharge into the sea only the kinds of waste water and drill slug with oil contents prescribed in the Appendix attached to this Regulation and the noxious chemicals below the allowed levels prescribed by the Vietnam environment standard.

Article 16.- The discharge of wastes of living from sea oil and gas constructions in the areas under the jurisdiction of the Socialist Republic of Vietnam must comply with the following prescriptions:

1. Not to discharge into the sea substances difficult to decompose such as empty tins, bottles, plastic bags... These wastes must be collected and transported to the mainland for processing according to prescriptions.

2. Solid wastes such as timber and paper may be burnt and the ashes are allowed to be discharged into the sea unless they are noxious and oil impregnated.

3. Food left-overs can be discharged directly into the sea after being ground into particles smaller than 25 mm in diameter.

Article 17.- The collection and processing of solid and liquid wastes from oil and gas constructions on the mainland must comply with the following prescriptions:

1. Solid wastes must be collected into appropriate containing means or equipment then must be processed or buried at the dumping grounds according to the prescribed standard and must comply with the guidance of the local authorities.

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3. Water from the extraction of the seams must be collected and contained in separate areas and must be processed according to the Vietnam Standard 5945-1995 - Industrial waste water - Waste standard before being discharged into the surrounding areas.

Article 18.-

1. It is forbidden to directly discharge hydrocarbonated gases into the environment without permission from the State managing agency on environmental protection.

2. When it is impossible to collect them for use, hydrocarbonated gases must be burnt out at the incineration towers. These towers must be designed to reach the standard prescribed by the Law on Protection of Environmental.

Chapter III

STORING AND TRANSPORTING OIL AND GAS

Article 19.- Oil and gas organizations shall work out plans to prevent and combat fires and explosion accidents and submit them to the Agency for the Prevention and Combat of Fires and Explosions under the Ministry of the Interior for approval and issue of permit for construction.

Article 20.-

1. Container basins, filling and receiving stations, oil and gas pipelines must be designed and built according to Vietnamese standards or international standards (API, ASME, BS...) already recognized by Vietnam. A program must be adopted to conduct regular control and supervision during the process of operating these equipments.

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Article 21.- The designing and building of undersea oil and gas pipelines must comply with the following prescriptions:

1. Adverse impact on the environment must be kept at the lowest possible level when choosing the pipelines. It is forbidden to lay oil and gas pipelines through national preserves or areas exceptionally sensitive to the environment unless it is permitted by the State managing agency on environmental protection.

2. When laying the pipelines, appropriate measures must be taken to prevent and limit the pollution of the sea environment (water and sea bed) caused by the construction and the discharge of wastes.

3. When permission is given to use explosives and radioactive matters in line with the Evaluation Report on Environmental Impact, the prescriptions in Article 10, Article 11 and Article 14 of this Regulation must be complied with.

4. Pipelines shall be allowed to be buried into the seabed if they do not adversely affect the sea bed structures and the natural ecological conditions of the shoreline.

Article 22.- The designing and construction of oil and gas pipelines on the mainland must comply with the following prescriptions:

1. The corridor and pipeline must be so chosen as not to violate the nature preserves, beautiful landscapes, historic and cultural relics and areas exceptionally sensitive areas of the environment.

2. To reduce to the minimum the adverse impact on the environment and natural landscapes, destructive effect on architectural and cultural constructions or obstruction to traffic.

3. Once having got the permit to use explosives and radioactive substances in line with the ratified Evaluation Report on Environmental Impact, Articles 10, 11 and 14 of this Regulation must be observed.

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1. During the laying of the oil and gas pipelines on the mainland or near the shore, the liquid used in testing the water pressure of the oil and gas pipelines must be collected into a separate place and must be processed before its discharge into the surrounding areas in accordance with the approved Evaluation Report on Environmental Impact.

2. The chemicals used in the test of water pressure must be approved by the Ministry of Science, Technology and Environment. The issue of permit is based on the certificate of the level of noxiousness of the experiments conducted in the environmental conditions of Vietnam issued by the specialized agency of Vietnam empowered by the Ministry of Science, Technology and Environment or the permit in a foreign country with conditions appropriate for use in Vietnam.

Article 24.- In the process of operation, the rinsing of the oil tanks and the oil and gas pipelines and the processing of the wastes issued from the rinsing process must conform with the technical plans approved by the State managing agency on environmental protection.

Chapter IV

PROCESSING OF OIL AND GAS

Article 25.- Oil and gas organizations shall work out plans to prevent and combat fires and explosion accidents and submit them to the Agency for the Prevention and Combat of Fires and Explosions under the Ministry of the Interior for approval and issue of permit for construction.

Article 26.- When choosing the location of the oil and gas processing factory, steps must be taken to ensure the minimum of adverse impact on the environment and the services of onsite environmental protection, especially in case of environmental accident.

Article 27.- The technology of processing and the processes of operation, supervision and rescue in an environmental accident of the oil gas processing factory must so chosen as to ensure the reduction to the minimum of the discharge of gas, liquid and solid wastes into the environment and must comply with the prescription of legislation on technological transfer.

Article 28.- The measures of transportation of raw materials and products from the oil refinery must be so chosen as to ensure the maximum reduction the risks of oil spill caused by transport accidents.

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Article 30.-

1. The gas, liquid and solid wastes of the oil and gas processing factories must be treated according to the Vietnam environment standards or must be allowed by the Ministry of Science, Technology and Environment if these standards are still non existent, before being discharged into the environment.

2. The dumping grounds of liquid and solid wastes of the oil and gas processing factories must be designed and treated in order not to cause pollution of the environment.

Chapter V

SERVICE ACTIVITIES

Article 31.- Transport means of oil and gas organizations operating on land, on rivers and on the sea must comply with Vietnamese law, the International Convention on the Prevention of Pollution from ships (MARPOL 73/78) and the related international conventions which Vietnam has signed or acceded to.

Article 32.- Ships and boats taking part in oil and gas activities on the sea must comply with the following prescriptions:

1. They must have equipment to prevent pollution in accordance with Vietnam Standards 04044-85 the "Rules on the Prevention of Pollution from ships" already checked and certified by the ship registration agency. For foreign ships they must have international certificates of anti pollution caused by oil or waste water and recognized by the Vietnam Shipping Registry.

2. They must have guiding documents on prevention of pollution caused by noxious substances including waste of living, and also documents guiding the collection onto the ship and on oil delivery and reception.

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4. They must have a register to monitor the delivery and reception of oil and other substances. The register must record all the data on delivery and reception as well as the results of the inspection. It must be put on file and submitted to the State managing agency on environmental protection if requested.

Article 33.- The on-shore oil and gas services must comply with the following prescriptions:

1. They must not directly discharge into the surrounding areas any kind of oil and grease, noxious chemicals, gas and water waste containing substances with toxity higher than the permitted level of the Vietnam Standards on industrial and living waste gas and water.

2. They must collect and treat production and living wastes during the process of operation as prescribed.

3. Service bases for the reception, storing and treatment of wastes from the oil and gas industry must have dumping grounds, and appropriate processing technology as prescribed by the Law on Protection of the Environment and related laws. It is strictly forbidden to receive and treat waste materials imported from foreign countries.

4. The conservation, storing and transportation of radioactive substances must comply with the legislation on Radioactive Safety and Control, and also with the Vietnamese Standards:

TCVN - 4586-97 (Rules on Safety of Conser-vation, Transportation and Use of Explosives).

TCVN - 4397-87 (Rules on Safety of Ionized Radiation).

TCVN - 4985-89 (Rules on Safe Transportation of Radioactive Substances).

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Article 35.- Oil and gas ports must meet the requirements stipulated in Article 33 of this Regulation, must have a plan of rescue for oil spills and a plan to prevent and combat fires already ratified by the competent State agency.

Chapter VI

OVERCOMING ENVIRONMENTAL POLLUTION, ENVIRONMENTAL DETERIORATION AND ENVIRONMENTAL ACCIDENT

Article 36.-

1. In the implementation of oil and gas projects, the oil and gas organizations must fully maintain their personnel, equipment and relations with related agencies including the local authorities and foreign organizations so as to manage and reduce to the lowest level the possible damage to the environment.

2. The oil and gas organizations that are exploiting oil and gas on the sea must ensure that:

2.1. On each oil rig and reception and distribution station, necessary equipments are ready to conduct on-site rescue during oil spills of less than 15 tons.

2.2. There is the capacity to launch into the sea rescue equipment in case of oil spills of less than 500 tons within 24 hours.

Article 37.-

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2. The Vietnam Oil and Gas Corporation has the responsibility to draw up the common rescue plan for the activities of the member units, the contractors of the Vietnam Oil and Gas Corporation, the joint ventures with capital contributed by the Corporation in order to coordinate actions among the oil and gas organizations, the related agencies and the People's Committee of the locality where the accident takes place as well as foreign rescue organizations in order to assure the quickest and most effective rescue.

Article 38.- In case of oil spill at the sea oil and gas construction with a volume of oil of more than two tons, the oil and gas organization must immediately inform the Ministry of Science, Technology and Environment and the People's Committee of the province where the accident takes place. A full report on the oil spill accident must be written and submitted to the Ministry of Science, Technology and Environment and the People's Committee of the province where the accident takes place within 15 days after the accident is resolved.

Article 39.- The use of foam to cope with oil spill must comply with the procedures written in the rescue plan for oil spills already ratified and must comply with the following requirements:

1. Foam can be used to cope with oil spill only after it is judged that the use of other measures is not appropriate for the recovery of the spilled oil.

2. Only registered foam and foam permitted by the Ministry of Science, Technology and Environment can be used. It must be used cautiously in order to avoid overuse of foam exceeding the permitted level.

3. It is forbidden to use foam on the rivers, estuaries and sea areas on the coast less than 20 m deep and less than 2 km from the shore and the other ecologically sensitive areas.

4. The use of foam must be permitted by the Ministry of Science, Technology and Environment. In emergency cases when the oil spill threatens seriously human lives, properties, natural resources, the oil and gas organization may use foam already registered in the rescue plan for oil spills and ratified by the Ministry of Science, Technology and Environment.

5. After using foam, the oil and gas organization must send a detail report to the Ministry of Science, Technology and Environment about the accident, the use of foam and its consequence.

Chapter VII

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Article 40.- An inspectoral team or a specialized inspector in environmental protection has the right to come to oil and gas organizations to:

1. Inspect the kinds of permits, certificates and other documents related to the prevention and fight against environmental pollution;

2. Inspect the register of the activities in environmental management, copy necessary documents, and request the responsible persons of the oil and gas organization to certify the authenticity of the originals;

3. Inspect the conservation, use and the status of activity of the equipment to prevent and combat pollution;

4. Collect necessary samples related to environmental protection.

5. Check the fact and interrogate the persons related to the pollution accident.

6. Detect and solve on the spot related questions or propose to the State managing agency on environment to settle according to the prescriptions of current legislation.

7. Order fines in accordance with prescriptions of law.

Article 41.-

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2. Oil and gas organizations may complain to the person who has ordered the inspection concerning the conclusions and the measures of handling of the team or the inspector. In case of disagreement with the decision to settle the complaint, the oil and gas organization may complain to the immediate higher level of the person who has ordered the inspection or file a suit at the competent Court.

3. In case the inspection is conducted at a foreign invested oil and gas organization, the complaints shall be settled according to the Law on Foreign Investment.

Article 42.-

1. In the process of conducting an oil and gas project, if the oil and gas organization causes environmental deterioration, environmental pollution and environmental accident, besides a fine, it shall have to pay compensation for damage according to prescriptions of Vietnamese law.

2. The oil and gas organization that causes environmental pollution has to pay the expenditures in cleaning the environment, and overcome the environmental accident to any organization or individual that has overcome the accident and done the cleaning.

3. The oil and gas organization must pay timely compensation to the organizations and individuals for the damage caused by the environmental deterioration, environmental pollution, and environmental accident caused by it and pay the expenditures which have been spent to clean the environment and overcome the accident.

Article 43.- The oil and gas organization shall not have the duty to pay compensation or pay the expenditures on cleaning the environment if the environmental accident is caused:

- by natural calamities;

- by war or terrorist acts;

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Article 44.- All organizations or individuals that implement well the prescriptions of this Regulation, that have done meritorious services in preventing pollution or in rescue operations during an environmental accident shall be rewarded or commended according to the provisions of Vietnamese law.

Article 45.- Any organization or individual that violates this Regulation shall, depending on the extent of the violation and its consequence, be dealt with according to the provisions of Vietnamese law.

Chapter VIII

IMPLEMENTATION PROVISIONS

Article 46.- The State managing agency on environmental protection shall have to guide, inspect and supervise the implementation of this Regulation according to its function and powers.

Article 47.- The Vietnam Oil and Gas Corporation is entrusted with the task of guiding, supervising and inspecting the implementation of this Regulation by the Contractors as prescribed in the Oil and Gas Contracts.

Article 48.- In the process of implementation if some earlier provisions are contrary to the contents stipulated in the Regulation on Environmental Protection during the search for, prospection, exploitation and development of mines, the storing, transportation and processing of oil and gas and related services, implementation shall conform with this Regulation.

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APPENDIX

PROVISIONAL REGULATION ON ALLOWED OIL CONTENT IN WASTE WATER AND DRILLING SLUG (APPLICABLE TO OIL AND GAS WORKS OPERATING IN VIETNAM SEA AREAS PENDING THE PROMULGATION OF RELATED VIETNAM STANDARDS)

Discharged matters

Limit

Note

Waste water

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1. Areas within 12 nautical miles from shore:

For exploitation water this is the average maximum limit in 24 hours

- Normal

15m/l

- Areas where special protection

The Ministry of Science, is needed Technology and Environment shall have concrete provisions for each case

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40 mg/l

B. Other kinds of water

1. Areas within 3 nautical miles from shore

1 mg/l

2. Areas more than 3 nautical miles from shore

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Drilling slug

1. Areas 3 nautical miles from shore

Discharge forbidden

2. Areas more than 3 nautical miles from shore (applicable to oil pressure drilling solutions)

10 g /1kg of dry drill slug

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