SPE 86585

An Integrated Approach to Impact Assessment

Stephen Macklin, (Shell international Exploration and Production B.V., now with Salym Petroleum Development B.V.), and
Jan J. Hartog, (Shell international Exploration and Production B.V)

Copyright 2004, Society of Petroleum Engineers Inc.

• Integrating the impact assessment process with the
This paper was prepared for presentation at The Seventh SPE International Conference on
Health, Safety, and Environment in Oil and Gas Exploration and Production held in Calgary,
project/business opportunity realisation process.
•
Alberta, Canada, 29–31 March 2004.
Integrating impact assessment as a cross functional
This paper was selected for presentation by an SPE Program Committee following review of
information contained in a proposal submitted by the author(s). Contents of the paper, as
activity within the project /business processes.
presented, have not been reviewed by the Society of Petroleum Engineers and are subject to
correction by the author(s). The material, as presented, does not necessarily reflect any • Looking at issues raised by projects that are also
position of the Society of Petroleum Engineers, its officers, or members. Papers presented at
SPE meetings are subject to publication review by Editorial Committees of the Society of
important outside of the project scope, in the overall
Petroleum Engineers. Electronic reproduction, distribution, or storage of any part of this paper context of both the host society and international interest.
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Box 833836, Richardson, TX 75083-3836, U.S.A., fax 01-972-952-9435.
Integrating environment, social (economic) and
health aspects within the impact assessment
process
Abstract
Impact Assessment is continuously developing both in process Our business decisions have the potential to influence many
and in application. Increasingly society expects that business different conditions in the places in which we operate: the
should make a broader contribution to it. This has translated in quality and diversity of the natural environment, the economic
impact assessment to spending more effort on enhancing and cultural welfare of communities, and the health of people.
benefits as well as mitigating the negative impact of our
activities. Society is also expecting more openness and Integrating environment, social and health aspects starts with a
transparency, with greater communication and engagement on holistic approach to the definition of environment. This
issues throughout the impact assessment process. means defining the environment as a set of natural and human
features which exist in a given place and point of time. The
New developments in impact assessment include increasing environment can be thought of as comprising the physical,
attention to social, health and biodiversity impacts, and biological and human environment.
integrating environmental, social and health aspects. • The physical environment (also known as the abiotic
Increasingly attention is being given to integrating impact environment) - everything in nature that is not living,
assessment within the project/business processes and including human induced changes in physical and
integrating the results of the impact assessment into chemical environmental properties and physical
project/business execution. Furthermore, impact assessments structures.
are being applied to an increasing range of projects, as well as
• The biological environment - essentially all life on earth
to earlier phases of decision-making such as country entry.
and the systems that support it. More specifically, the
Also, Strategic Environmental Assessment is emerging as a
Convention on Biological Diversity, 1992 (CBD), defines
new regulatory requirement in some areas of the world.
biodiversity as “the variability among living organisms
from all sources including terrestrial, marine and other
The paper will outline the recent developments within and key
aquatic ecosystems and the ecological complexes of
challenges faced by Shell EP, and the key features of its new
which they are part. This includes diversity within
integrated impact assessment approach. Of particular note will
species, between species and of ecosystems”.
be how biodiversity and health are addressed in the impact
• The human environment - a set of human features that
assessment process.
exist in a given place and point of time - man-made
systems and structures including social and economic
Proposal
systems, health, and cultural/heritage resources.
Shell International Exploration and Production B.V. (SIEP)
At the start of the integrated impact assessment process, (see
have developed an integrated approach to impact assessment,
Figure 1) addressing environment, social and health aspects
which means several things:
during the scooping exercise will identify and map out the key
• Integrating environment, social (economic) and health
issues to be addressed. Scoping (see Figure 2) will determine
aspects within the impact assessment process.
2 SPE 86585
common baseline data sets, potential synergies/conflicts and
areas where aspects need to be combined.
The baseline, (see Figure 3) comprises the factual
understanding and interpretation of existing environmental,
social and health conditions of where the business activity is
proposed. Collecting, interpreting and reporting baseline data
in an integrated way will reduce the potential for duplication,
as some of the data sets will be needed during the assessment
for more than one aspect.
The core activity of impact assessment is prediction,
evaluation and mitigation of negative impacts and
enhancement of benefits, (see Figure 4). An impact is a
change in an aspect of the physical, biological and human
(including economic and health) environment that would not
otherwise have occurred had the activity not taken place.
Potential impacts should be seen against the total life of the
business. As environment, social and health aspects
interrelate, undertaking the assessment in an integrated way
allows for the connectivity to be addressed and avoids
multiple engagement with the same stakeholders. Also, a
holistic approach to residual impacts will enable a compete
picture of the project/business impacts and enable synergies in
control and recovery measures to be addressed.
Health Impact Assessment is relatively new and we have
therefore elevated health aspects outside of social. There is no
single definition of ‘health’; the World Health Organisation
employs a broad and holistic definition that emphasises well-
being in addition to disease and infirmity. In Health Impact
Assessment we have therefore used a broad socio-
environmental model of health that focuses on health
determinants and not merely on disease and infirmity. This
model is relatively unfamiliar to those trained in curative
medicine and capacity building may be required.
Integrating impact assessment within the
project/business opportunity realisation process
Impact assessment is a tool to aid design and decision-making
and can be used for all phases of a project/business
opportunity, from identification, design and development,
operation & operational changes, through to decommissioning
and abandonment.
An integrated approach to impact assessment means
integrating within the project/business opportunity realisation
process. In order to deliver optimal value, impact assessments
should be fully aligned with the phases that realise the
project/business opportunity and feature throughout the
lifecycle.
For country entry or new business opportunity the “profile”
initiates the integrated impact assessment programme and
activities to mitigate impacts and enhance benefits. The profile
is typically a rapid exercise applied at the country level,
regionally or to a specific project area. It may be undertaken
purely as a desk-based exercise, or involve site visits. The
profile provides a high level understanding of the
environmental, social and health risks and benefits, and input
to the hazard and issues management registers. Often it
includes identification and mapping of key stakeholders for
the issues identified. The profile may involve or trigger
stakeholder engagement, where ‘early warning’ issues (such
as biodiversity and human rights) are identified. The profile
sets the scene for subsequent impact assessments and assesses
the nature of the impact assessment to be applied. The profile
is an internal report focusing on the risks to the business and
decisions to be taken, and supports future management
actions.
From this point, other impact assessment applications occur
through the lifecycle of the project/business. For new
developments, impact assessment serves as a tool for site
selection, technology selection and design and planning
optimisation. Once operating, the asset may undergo change,
which may be substantial and therefore require a further
impact assessment. For older facilities that may never have
had an impact assessment at the design stage, impact
assessment may be used as part of the hazards and effects
management process within the HSE management system, and
as part of the issue identification and management system.
Eventually the asset may be decommissioned, which will also
require an impact assessment.
In certain cases we may also undertake a diagnostic, which is
an application of the impact assessment process to a single
strategic issue or topic, where the project/business requires
detailed information and analysis on a specific issue or
identified risk, which may be outside the timeframe of the
project impact assessment. The issue or risk could be as
diverse as biodiversity, HIV/AIDS in a community or
(un)employment.
Regardless of how many different types of impact assessment
and related applications in which the project may be involved,
they all feed into a bigger picture for the overall business. An
impact assessment programme therefore involves a series of
impact assessment studies, coupled with longer term social
and environmental research and consultation programmes, to
progressively influence design and operational activities to
meet business objectives.
Clear linkages are established between project impact
assessments and the other business impact assessments and
related applications that precede and overlap with them. This
ensures that information and issues feed through from one to
the other, providing a continuity of treatment and follow
through of measures to mitigate impacts and enhance benefits.
Indeed our ultimate goal is to implement impact assessment as
a seamless continuous process of identifying and minimising
impacts and enhancing benefits throughout the
business/project lifecycle, rather than a programme or series of
impact assessments.
SPE 86585 3

Integrating impact assessment as a cross functional approach to impact assessment will ensure that we are well
activity within the project /business processes equipped to participate if the need arises.

In parallel and interacting with the impact assessment process Improvement in the quality of the impact
are the stakeholder engagement and design and decision- assessment process and deliverables
making processes.
Stakeholder engagement is a systematic process. It starts with SIEP have recently developed a process of self-assessment
and a verification tool in an effort to improve the process and
developing an understanding of the issues and associated
stakeholders involved with the project or operation, and then its deliverables, and monitor improvement progress over time.
seeks to create and maintain stakeholder relationships and Figure 5 shows the summary sheet of the process self-
assessment tool.
partnerships based on mutual trust and respect. An integrated
approach to impact assessment will identify reputation issues
that cover more than one aspect and stakeholders with an Conclusion
interest in more than one aspect.
In conclusion, an integrated approach to impact assessment
Impact assessment cannot take place in isolation and the addresses synergies and conflicts between environmental,
social and health aspects, helps ensure impact assessment is
success of the assessment is therefore dependent upon the
direct involvement of project engineers and line managers. embedded within the project/business opportunity realisation
Impact assessment should be integrated with the design and process, integrates impact assessment within project/business
processes, and helps us influence strategic issues that are
decision making process and be appropriately resourced. If it
is left only to external specialist and consultant resources only, beyond our immediate control. An integrated approach to
impact assessment also helps to address contributing to
it will not work. An internal team is key to see the process
through. Nor does the process stop with the assessment alone. sustainable development in a systematic and transparent way.
It also involves implementation of the findings, ensuring that
mechanisms are in place for this and for monitoring follow-up.
Where contractors are responsible for implementation, they
too need to have appropriate mechanisms in place.

Looking at issues raised by projects that are also

important outside of the project scope, in the overall
context of both the host society and international
interest.

Our business can raise issues beyond our immediate control;

impact assessment provides an approach to exerting some
degree of influence.

Strategic Environmental Assessment (SEA) is emerging as a

new regulatory requirement in many areas of the world. SEA
is normally applied by the public sector (governments,
regional administration) to assess the environmental
implications of policies, plans and programmes. It may be
applied at national and regional levels. However, SEA’s could
also be applied to private sector policies, plans and
programmes, especially where such projects might have
impacts at a regional scale or raise strategic issues. Indeed
private sector companies are sometimes requested by
regulators to undertake a SEA, in addition to the more typical
project-level impact assessments. This approach has been
broadened by some companies to Strategic Impact Assessment
(SIA) to deliberately ensure all issues are covered.

The need for SIA (the term preferred by SIEP) may only arise
in a limited number of our world-wide business opportunities.
Strategic issues could encompass governance systems,
corruption, poverty, revenue distribution, boom-bust
development scenarios, role of military, changes to population
movement or religious or cultural dynamics. An integrated
4 SPE 86585

Figure 1. THE IMPACT ASSESSMENT PROCESS

Stakeholder Engagement

Identify and Assess the Impacts

Describe Implement
Scope the the
the IA Baseline Findings
Predict Evaluate Mitigate/Enhance

Design and Decision-making

Figure 2. THE SCOPING PROCESS

Issue
Review Identify Finalise
Plan the IA Scoping
data issues scope
Report

What further data What are the key Is there an Engage Does the Scope for
are needed issues/ understanding of stakeholders on the IA reflect
regarding the potentially most what needs to be the scope for the stakeholder views
proposals and E, important done, what the key IA. on what data to
S and H impacts (positive issues are, and what collect, alternatives
conditions? and negative) for methods and to examine and
the IA? resources are needed issues to
to address them? concentrate on?

Stakeholder Engagement
SPE 86585 5

Figure 3. THE BASELINE PROCESS

Plan further
Search and data Collate Consult
Identify Undertake
collect collection all data to check
data data
existing and agree and it is
needs collection
data with interpret correct
stakeholders

Figure 4. THE PREDICT, EVALUATE/ENHANCE SEQUENCE

M itigate/ Residual
Predict Evaluate
Enhance Im pact

W hat could Is it W hat can Is there still a

happen as a im portant? be done significant
consequence of about it? impact?
doing w hat is
proposed?

The project as For some

Interact w ith
currently planned im pacts the
Stakeholders Stakeholders
and the sequence m ay
can help and Project
m itigation need to be
to decide this to develop
already repeated
solutions
incorporated
6 SPE 86585

Figure 5. Integrated Impact Assessment Verification: Process Review Tool

Project Name/ Ref:

……………………
How adequate is
information on the
Scoping baseline and project in
terms of the level of detail
required for scoping?
Stakeholder How well do we understand
the issues of concern to the
Engagement project’s stakeholders?
Based on scoping,
Describing consultation and review,
how clearly are gaps in the
the Baseline existing baseline data
understood?
Key Review Questions to Help Determine the Rigour of the IIA Process
To what extent is scoping
presenting the development
alternatives (sites, routes,
technologies) to be
examined in the IIA?
How will stakeholders be
systematically consulted to
allow effective feedback to
the project an IIA?
To what extent do the plans
for further baseline data
collection and surveys
address these gaps?
How effective is scoping
in systematically
identifying the most
important potential impacts
and key issues for the IIA?
To what extent are we
building constructive
relationships and
understanding their views
and expectations?
How comprehensive and
balanced is the full baseline
dataset in meeting the IIA
and project needs?
To what extent has scoping
resulted in clear ‘terms of
reference’ for the remainder
of the IIA?
How effective is the
ongoing engagement with
stakeholders on the most
important issues and
impacts for the IIA?
How adequate are the
provisions for storage,
analysis, referencing and
presentation of data?
Conclusions and Overall Level of Assurance
Scoping
To what degree is scoping
involving stakeholder input
and to what extent does it
address their key concerns?
Stakeholder Engagement
How effective is stakeholder
engagement in terms of
two-way dialogue on
the IIA and project?
Describing the Baseline
How well have the baseline
data been interpreted in
terms of establishing
inter-relationships, trends
and key sensitivities?

Interaction with Design

To what extent is the IIA
Interaction
bringing the required
performance standards to
with Design the attention of design?
To what extent is the
Evaluation of evaluation effort systematic
Impacts and and focused on the
potentially most important
Mitigation impacts?
How effectively are all the
ESH commitments made in the
Management IIA being transferred into
project plans for
Planning implementation?
How integrated are the
design and IIA teams in
developing improved
design and operation
alternatives?
To what degree are impact
significance criteria derived
from appropriate legislation,
guidance standards and
the ‘design premises’?
To what extent are
monitoring actions specific
to IIA findings as well as
to regulatory requirements?
How effective is interaction
between the design and IIA
teams in generating the
source information
needed to quantify impacts?
To what extent are impacts
to resources and receptors
quantified and based on
project-specific
information?
To what extent are specific
management plans being
developed for key issues?
How well are the design
and IIA teams
communicating and
sharing information?
How well are impacts
described (direct, indirect,
cumulative, short-term,
long-term, planned,
accidental etc)?
To what extent are
commitments in the plans
being translated into
contractor documentation?
How well are the mitigation
of impacts and enhancement
of benefits being built into
design?
Evaluation of Impacts and Mitigation
How well is the process
working in terms of
demonstrably reducing
impacts to as low as
reasonably practicable?
ESH Management Planning
How well are uncertainties
and change management
being addressed
in the management plan?

IA Project Management
In terms of percentage To what extent is the IIA How well is the IIA
How well is the IIA
IIA Project complete and/or milestones effort collaborating with communicating with related
Something on bidding resourced In both the
achieved, how is the IIA other project activities to project activities (such as
process? project and IIA consultant
Management teams?
performing against seek cost savings (eg EA, human resources and
schedule and budget? shared survey logistics)? sustainable development)?

OVERALL CONCLUSION

Reviewer:
G Satisfactory with no significant gaps or Y Minor gaps and weaknesses A Gaps and weaknesses in certain areas that need to be
weaknesses addressed urgently
……………………
R Unsatisfactory. Major gaps and weaknesses affect the overall integrity of the IIA and N/A Does not apply at this stage in the IIA process
Date:…………….. need to be addressed immediately