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03pa JS 1 6 PDF
03pa JS 1 6 PDF
03pa JS 1 6 PDF
Confrontation: Building Participative Partnerships with Communities and Stakeholders for the Development of Petroleum Resources near Urban Centres.
James G. Shaw, Nexen Inc., Canada Abstract:
Most organisations tend to characterise the sensitive environment as that of the biophysical domain. In the case of sour gas1 exploration and development bordering a major urban centre, the City of Calgary, Canada, the sensitivities Nexen Inc. faced were in the social, political, and economic impact of a rapidly encroaching urban and rural population. Since the early 1990s Nexen has continued its leadership role in establishing meaningful consultation in the face of unprecedented confrontation. Efforts have extended far beyond local regulatory requirements and are producing consistent win/win relationships. As Nexens drilling and production on Calgarys urban fringe evolved over a decade ago, so did the Communitys concern for the potential of hazards and perceived health and safety risks often associated with sour gas development activities. With escalating opposition and growing community tension around increased sour gas extraction operations, the communities in NE Calgary became progressively more frustrated. Their relationship with the Company was pushed to the near-breaking point. Recognising that a cumbersome regulatory process for adjudicating development would further deteriorate this already fragile relationship, Nexen developed and successfully implemented a voluntary process for public consultation and engagement that embodied the principles of Open, Honest and Transparent Communication. These principles are embodied in the International Code of Ethics for Canadian Business and this remains today, key to many of the successes that Nexen has enjoyed through effective and engaging consultation. As Nexen looks to the future of public involvement, we are guided by our vision of being leaders in public consultation; encouraging community and industry to see the mutual advantage that comes from meaningful, collaborative relationships.
Introduction:
This paper explores the basic principles and supporting strategies for effective participative community consultation, which build upon the many opportunities, pitfalls, challenges, and successes that Nexen Inc. has experienced in this challenging sensitive operating environment over the past 40 years.
sour gas is defined as natural gas containing greater than one percent hydrogen sulphide (H2S)
Our History:
The Western Canadian Sedimentary Basin with its vast reserves spread throughout the provinces of British Columbia, Alberta and Saskatchewan is to many the centre of oil and gas exploration and production in Canada. Approximately 35 per cent of the natural gas production in Alberta is impacted by hydrogen sulphide and considered sour. Urban sprawl and the nature of our geological richness have meant that some of this valued energy resource is located directly adjacent to urban regions of the province, such is the case with Calgary. Nexen Inc. (formerly Canadian Occidental Petroleum Ltd.) has been operating a sour gas field with a hydrogen sulphide (H2S) content of up to 37 per cent, northeast of the city since the early 1960s. Prior to the 1990s, the company's presence in this region was largely unnoticed by the general public. However, by the 1980s the city had sprawled north and eastward and was now encroaching upon the company's field facilities. To further complicate the issue of encroachment, a shift by the public occurred that reflected an escalating fear of the perceived health and safety risks associated with sour gas development. This attitude was fuelled by a high degree of public concern largely created by a lack of quality information about the associated risks of sour gas development. Despite the exemplary safety record of the company, the outrage felt by the public over what they perceived to be a new and risky intrusion on their lives was unexpectedly high. Initially the company had difficulty appreciating these concerns in light of the fact we were first to occupy the area and that regardless, our operations had been scientifically shown to be safe. The end result was extreme frustration and a mutual loss of respect between the company and the residents. When the community became aware that the company had decided to seek regulatory approval and drill additional sour gas wells into this field, the relationship was pushed to the breaking point.
recognised that there existed the opportunity to accomplish something positive by working together. Residents and the Company soon acknowledged the sincerity of the people involved. According to the community 'The turning point was when we started to ask probing questions and demanding answers which were dependent upon having access to normally confidential information. The Nexen people were the first to support us and agreed to full disclosure. The journey to building trust had begun. In the months that followed, most all of the community issues were addressed and consensus reached on their resolution. The report eventually filed with government concluded that the residents would not object to the drilling of additional wells subject to implementation of a number of recommendations. Important to the resolution was the need to include enforcement of the most stringent technological standards available, timing considerations for continued development, emergency ignition practices, further public communication mechanisms, and residential and industrial set-back considerations. What was originally perceived by many to be impossible, only one year earlier, was ultimately achieved, -a win/win benefit for all. In the end, the success of the group was not measured by who got their own way, but rather in terms of shared pride in our conclusions and in the consensus process used in arriving at those conclusions. Stated Community Representative: Brian Holmes.
Process:
Key elements in the success of this consultative process were in identifying a credible, strong yet neutral, facilitator, and the immediate establishment of terms of reference that governed the process. It was critical that the participants in the process represented the widest spectrum of views on the issues. In addition, it was extremely important that the participants identify the issues of concern - do not assume beforehand that you know or understand the issues. Accordingly, a management process was clearly defined that tracked issues and progress made in achieving resolution of those issues. Once the issues of the sour gas operations were clearly defined, they were consolidated into four key work areas: Public safety; Orderly and economic development of the reserves; Land use conflicts; and Communications. Sub-committees of the main or plenary forum were established for these areas and each chaired by a member of the public. At the sub-committee level, each of the issues was examined in detail, resolution sought for any outstanding areas of disagreement and then consensus pursued before the plenary group. Government, Nexen and outside consultants provided technical expertise when needed. Interestingly, the residents concluded that the use of outside parties was not required.
Learnings:
Building upon these experiences and others that we now define within our framework of Corporate Social Responsibility, Nexen undertook to work with industry and government in the development of The International Code of Ethics for Canadian Business. Key principles embodied in the Code have helped Nexen to develop a policy framework that incorporates the following in its consultation approach: Local communities need to be involved in the decision-making for issues that effect them; Public consultation and community engagement adds value and contributes towards a stable operating environment; Consultation is the preferred mechanism to resolving issues with stakeholders; Open, honest and transparent relationships are critical to our success; Provide meaningful and transparent consultation with all stakeholders and attempt to integrate activities with local communities; At the end of the day, it is the public that must decide what constitutes an acceptable level of risk to their lives. The company's role in this process is to help facilitate that decision. Our experience with this process has also led to the development of a set of prerequisites for successful public consultation:
WPC -2002 Block 1, Forum 6 Exploration and Production in Environmentally Sensitive Areas July 2, 2002 page 3
There must be a genuine willingness on the part of all parties to engage in the consultation process; There needs be some flexibility in the positions of all parties; All parties must be willing to engage in straight talk; There must be a champion to initiate and drive the process; There needs to be an informed, yet neutral, third-party facilitator.
In addition, the Company discovered that it is not just the scientific determination of the risk that is critical to resolving issues of concern in the community. Of equal importance is the ability to communicate that risk effectively, and to acknowledge that any perceived risk is as valid an issue as any scientifically proven risk. Clearly, perception is regarded as the editor of reality.
resolve public concerns about petroleum activities and energy development. The group has become a vehicle for both community and industry to communicate in a positive and responsible manner. APPA is a community based registered society, which works to provide a forum where community and the petroleum industry can address areas of mutual concern, identify synergies that minimise our footprint on the community, and develop Best Practices that ensure consistency in our approach to areas of concern. Four committees, similar to the NCACC process established by Nexen in the early 1990s carry out APPAs work. The committees (Communications, Safety & Health, Environment, and Operations Integration) meet every other month and are co-chaired by the community and the petroleum and energy industry. A General or Plenary Meeting occurs approximately every two months following the subcommittee meetings. These meetings are widely advertised so that the general public can participate. In May 2001 Nexen facilitated the distribution of nearly five thousand information brochures to residents in the rural areas northeast of Calgary and organised the first multi-industry Open House event for the new group. The open house and information session sought to facilitate communication of planned and ongoing activities as well as to provide a forum for education on current events and undertakings in the petroleum industry. Regulators and other key stakeholders and community interest groups were also invited to participate. Feedback mechanisms and interviews from attendees are incorporated into the performance and communications process. Nexen is currently developing a community web-site and web-based database for tracking information and recording member company performance in the APPA area.
Conclusion:
Nexen continues to play an active and significant role in the evolution and development of public consultation in the Canadian upstream oil and gas industry. We continue to learn from our own experiences and that of others, and contribute to the ongoing improvement of public consultation and community engagement, in Canada and Internationally. Nexen has received recognition for its contributions in this area from many prestigious organisations, including The Global Compact; IPIECA; The Dow Jones Sustainability Index; The International Association for Public Participation; and the Canadian Association of Petroleum Producers. The greatest recognition achievable though is the acknowledgement from community members when they address Nexen as a good corporate citizen and a welcome community member.
Acknowledgements:
Special thanks to Dr. Randall Gossen - V.P. SESR Nexen Inc., Mr. Garry Mann Manager SESR Nexen Inc., and Mr. Brian McAusland Manager Balzac Complex & Chairman of APPA. It is the shared vision, leadership and energy of these persons that help to make Nexens Community Affairs and Public Consultation initiatives a reality and a model for industry.
WPC -2002 Block 1, Forum 6 Exploration and Production in Environmentally Sensitive Areas July 2, 2002
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1. Responsible Care: A Total Commitment is a registered trademark of Canadian Chemical Producers Association (www.ccpa.ca); 2. Canadian Association of Petroleum Producers, Guide to Effective Public Involvement (www.capp.ca); 3. Alberta Energy and Utilities Board (www.eub.gov.ab.ca); 4. Advisory Committee on Public Safety and Sour Gas (www.publicsafetyandsourgas.org); 5. Airdrie & Area Public & Petroleum Producers Awareness Alliance; 6. International Association for Public Participation (www.iap2.com).
References:
WPC -2002 Block 1, Forum 6 Exploration and Production in Environmentally Sensitive Areas July 2, 2002
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