ONGC & the hoax beneath Changpang Oil Fields

The pitiable issues centering the Changpang oil fields that have been lying dormant for more than one and half decade has been brought to the limelight with the august visit of the cabinet sub-committee on 08th January 2011. Clearly, the committee had two tasks in hand: one is to oversee the environmental impacts of oil spills from the abandoned oil rigs; and the other is to explore the possibilities of resuming further exploration from the Changpang-Tssori belt, that according to ONGC estimates, has a geological reserve of 110 million barrels of oil with a recoverable reserve of approximately 1,600 barrels per day.
Media around the country has been pointing fingers at the underground groups, the NSF, land owners and even the Lotha Hoho for its shutdown in May 1994 by the oil giant ONGC.  But very few knew that the trial exploration was granted only for 18 kiloliters of crude oil, whereas the oil giant extracted 7 million barrels of oil without proper consent and knowledge of the people. Not satisfied with that, the ONGC hurriedly abandoned the wells without following the international legislation guiding proper abandonments, decommissioning, remediation, reclamation and consolidation protocols. And in doing so, the ONGC has not only violated rules but had also committed a crime against the innocent Naga people and the environment.
The ONGC which was established in August 1956 and deals with petroleum, natural gas and petrochemicals is sitting on an asset of more than US$ 37 billion, and their consolidated net profit ending March 2010 was Rs. 19,404 Crore. Richer than many state governments in India, ONGC can play balls as it wants but that does not gave them the power to undermine the rights and privileges of the weaker beings. The ONGC needs no lecture on the terrible effects of human and environmental disasters that could arise from such multi-million projects through sheer negligence. They are aware that regulations for temporarily abandoned wells mandates oil companies to present plans for future reuse or permanently plug such wells within a stipulated time, but they have intentionally circumvented those policies by shifting the blame to the locals for obstructions and allowing the oil to seep through the wells making the area an environmental minefield.
Abandoned oil wells, be it on land or at sea, poses a serious threat to the environment once their seal fails and begin to leak. Improperly abandoned oil wells, improperly abandoned facilities, and abandoned oil sumps are all potential sources of safety hazards. The danger is that, pressures that builds up from the gases in the earth and shifting earthquakes could cause oil and gas to resurface, even on an oil well that had been capped. This causes spills and emissions that could harm air, land and water body.
Improperly capped wells have the potential to leak methane which poses a critical explosion hazard. Again, there is the danger that leaking gas combined with the oil could create an inferno. There is also the potential incident of spillage or blowout resulting to disaster. Apart from threatening aquatic lives, spills could lead to destruction of natural vegetation and flora as well as the soil. It is therefore in the interest of the ONGC to secure these wells and other facilities at Changpang oil fields in order to comply with the industry standards and best practice to guide against the potential consequences of such failures and prevent future catastrophes.
Record shows that the negotiation for oil exploration and survey started as early as 1963, the same year when the state of Nagaland came into being, and the ONGC started its production in March 1981.  Oblivious to the hidden corporate agendas, the infant state government gave a green signal without formulating any comprehensive oil policy. This was an end to the beginning itself, sowing the seeds of mistrust and acrimony amongst the state government, ONGC and land owners even before the project began to bear fruits.  
During the 8th October 2010 consultative meet on land and its resources, I overheard a chit chat between government officials where one said that the landowners are becoming too greedy and the tribal Hoho’s acting as a guardian of angels. They were obviously referring to the abnormal hike in the land price and compensation claims from various corners whenever the government proposes any development schemes. This is indeed what is happening and had stalled and hampered many developmental activities in the state. But in a rare case like the ONGC- Changpang issue, the people were deprived not only of their legal entitlements but were left alone with no sign of hope except to be struck anytime with horrendous environmental misfortune because of the ONGC intransigence and their unholy treatments towards the wellbeing of the communities at stake.
The reason why the state government did not kept any records of the amount of oil that was illegally extracted from the site is known only to the officials who were in power during those times. The irony is flabbergasting. Media reports reveal that the state received a royalty to the tune of Rs. 33.83 Crore from the ONGC, whereas the same government somehow feigns ignorance and claims that the trial exploration was meant only to extract 18 kilotons of crude oil. Did some forces joined hands to mislead the people? For even a layperson will come to the conclusion that a royalty of Rs. 33.83 Crore was far too much for extracting a mere 18 kilotons of oil.  
But bygones are bygones.  Scores of opportunities and resources have been lost. Revenues that could have made the state financially strong and stable could not be realized. Yet, the end of a chapter usually leads to the beginning of another. That new beginning can be seen by the sincerity of the present government to impress upon the ONGC to expedite repair and restoration activity in the oil spilling areas, and to engage into fresh negotiation for resumption of oil exploration activity in the state.
However, while welcoming the initiatives of the state government to resume oil exploration in the state, be it at Changpang or elsewhere, certainly there are plethora’s of questions that need to be answered on moral, environmental and economic grounds; and without these issues being resolved, any rhetoric’s and commitment to develop the oil bearing areas will only serve as another backup to derail justice towards deprivation and marginalization of the already affected communities.  
First, the repair and restoration activity of the ONGC at the Changpang oil fields should not be limited only towards properly sealing the seepages form the oil wells. But it must also include securing the oil wells with parameter fencing, testing of soil, air and water toxicity in the vicinity and preventive measures being implemented including health insurance, if required, so as to safeguard human health, safety and environment.
Secondly, the genuine demands of the landowners must be heard and attended. The payment of 2 percent royalty on the value of the crude oil extracted, opening of administrative offices in Nagaland, employment opportunities to the native people, providing basic amenities and services to the community etc. are all legitimate demands throughout in the world, and must be pursued vigorously, though the demand for installing refineries in the state may require further debate.  
Thirdly, the provision of developmental facilities like good roads, standardized health centers, educational institutions, electricity, potable water, civic centers, town halls, modern roof coverings and other benefits as stipulated in the utilization of the ecological trust fund or corporate social responsibility projects must be implemented in letter and in spirit.
Fourthly, fresh Environmental Impact Assessment (EIA) be carried out by competent authority that must cover the nature, extent and location of the proposed project activity; a description of the affected environment including specific information necessary to identify and access the environmental effect of the propose activities; an identification and description of measures available to mitigate potential environmental impacts. Such assessment may also decide who should pay, and how much shall be paid in case of any human and environmental disaster that may happen in near future as had happened in the past like the recent deepwater oil spill or the Bhopal gas tragedy.  
Lastly, anti-human and anti-environment exercise practiced by oil companies in the developing countries like flaring of associated gases, improper dumping of industrial effluents, toxics and hazards must be addressed properly. Moreover, international standards in decommissioning, remediation, reclamation and re-vegetation procedures must be followed and honored even after the completion of the project.  
It is true and urgent that the Nagas come out of our conventional mindset and pave a way to utilize and exploit our rich natural resources efficiently in order to accumulate the necessary resources to combat the problems of underdevelopment, poverty, unemployment, illiteracy and ill health etc. and to elevate our standards of living.  But, while embarking on a new and improved developmental strategy, the reformed and educated Naga community must ensure optimization of benefits from such activity without compromising on our economic and environmental sustainability.

“Conserve to Sustain”
Sd/-
N Janbemo Humtsoe, Director,
Green Foundation, Wokha Nagaland.      
Post Box No. 171., PO Wokha. 797111.
E-mail-   janbemolotha@gmail.com
gfwokha@gmail.com