The Environment Ministry has recently released a notification, of interest to oil and gas companies. This notice effectively exempts these firms from acquiring environmental clearance before beginning on-shore and offshore drilling explorations. Onshore drilling involves digging deep holes into the earth’s surface, while offshore drilling pertains to drilling operations conducted under the seabed. The primary purpose of these drilling methods is to extract natural resources, predominantly oil and gas, from within the earth’s crust.
Demotion of Exploratory Projects: A New Perspective on EIA
An important detail in the notification is the downgrading of exploratory projects to the ‘B2’ category in the Environment Impact Assessment (EIA) process. EIA appraisals for category B projects occur at the state level, and these are further divided into two types:
- Category B1 projects which necessitate an EIA.
- Category B2 projects that do not require an EIA.
However, there are some exceptions to this rule. The construction of an offshore or onshore drilling site designated as a hydrocarbon block will still be classified as a “category A” project.
Decentralisation: A Step Towards Empowering Local Entities
The recently announced exemptions form part of a broader process of ‘decentralisation’ instigated by the Central Government. This initiative aims to delegate an increasing number of regulatory responsibilities to State and local units.
Past Protocols for Environmental Scrutiny
In the past, exploratory surveys mandated the highest level of environmental scrutiny and fell under the purview of ‘A’ category projects. These projects were required to prepare an EIA plan and undergo meticulous assessment by a centrally constituted committee of experts. Additionally, public hearings involving locals from the proposed drilling site are generally held for such projects. However, such public hearings are typically exempted for offshore ‘A’ category projects.
A Glance at Potential Environmental Concerns
| Concern | Impact |
|---|---|
| Loss of biodiversity | The drilling process disrupts local ecosystems leading to loss of flora and fauna |
| Effect on marine life | Offshore drilling operations may have a negative impact on fish and whales and disorient marine life |
| Pollution due to heavy water contaminants | These operations can lead to a build-up of heavy water contaminants |
| Risk of oil spills | An oil spill not only threatens marine ecosystems but also affects coastal and terrestrial biomes |
Risks Associated with the EIA Exceptions
Despite the benefits that these exemptions may present for oil and gas firms, there are concerns regarding their potential environmental impact. Exploratory drilling, for instance, is an ecologically-intensive activity that includes digging multiple wells and conducting seismic surveys offshore. Hence, the risk of biodiversity loss due to these exemptions is a looming issue.
Offshore drilling operations could negatively affect fish populations and lead to a surge in heavy water pollutants. Marine life, including whales, might also be disoriented by these activities. Additionally, a significant environmental threat arises from the risk of oil spills, which jeopardize both coastal and terrestrial ecosystems.
