The House of Representatives on Wednesday approved tougher sanctions against oil companies and other operators in the petroleum sector for failing to report oil spills, commence clean-up operations and comply with environmental regulations.
The proposed sanctions include fines of not less than N5 million and imprisonment for up to two years.
The House adopted the report on a bill seeking to amend the National Oil Spill Detection and Response Agency (Establishment) Act, 2006, at the Committee of the Whole, chaired by Speaker Abbas Tajudeen.
The bill seeks to strengthen the statutory powers of the National Oil Spill Detection and Response Agency (NOSDRA) to impose adequate penalties, establish criminal offences and ensure stricter compliance with existing environmental laws governing the petroleum industry.
The proposed amendments also prescribe a minimum daily penalty of N2 million for facility owners or operators who fail to report oil spill incidents to NOSDRA within 24 hours of their occurrence.
Under the proposed amendment to Section 6 of the principal Act, any facility owner or operator who fails to notify the agency of an oil spill in writing or by electronic mail within 24 hours commits an offence and, upon conviction, is liable to a fine of not less than N2 million for every day the failure continues.
Similarly, operators who fail to commence clean-up operations at an affected site within two weeks after the completion of a Joint Investigation Visit (JIV), in line with the polluter-pays principle, will be liable to a fine of not less than N5 million, imprisonment for a term not exceeding two years, or both.
The amendment further provides that failure to submit an action plan for remediation and restoration within two weeks after the completion of a post-clean-up assessment will attract the same sanctions.
To strengthen the monitoring of oil facilities, the bill introduces new provisions requiring operators to notify NOSDRA in writing at least two months before commencing the decommissioning or abandonment of any facility or installation within their operational areas.
Failure to provide such notification will attract a penalty of at least N2 million.
The bill also empowers NOSDRA to periodically inspect records of assets and integrity tests conducted by facility owners to ensure that facilities used for storing or conveying crude oil and petroleum products are safe and capable of minimising the risk of oil spills.
It also provides for periodic inspection and compliance monitoring of oil facilities across the upstream, midstream and downstream sectors in accordance with regulations, guidelines and standards issued by the agency.
In another significant provision, the amendment proposes that NOSDRA receive 2.5 per cent of the Ecological Fund annually for the procurement of oil spill response equipment and materials, management of oil spill disasters, and the clean-up and remediation of sites affected by third-party interference.
The agency is also expected to generate revenue through penalties, permits and certification fees prescribed under its regulations, guidelines and standards.
The bill further expands NOSDRA’s regulatory and enforcement responsibilities to include inspecting oil facilities to ensure compliance with environmental legislation and enforcing adequate compensation payments to individuals and communities affected by oil pollution.
Under the proposed new Section 26A, authorised officers of the agency will have the power, in collaboration with relevant agencies and subject to obtaining the requisite court warrant, to enter and inspect premises, oil facilities, vessels, barges, floating production, storage and offloading facilities, vehicles and other structures suspected of being connected with activities that violate environmental standards.
The officers will also be empowered to take samples, examine documents, seize relevant articles and obtain court orders to suspend operations, seal or shut down premises and facilities found to be in violation of the law.
The legislation prescribes additional sanctions for obstructing NOSDRA officials in the discharge of their duties. Individuals found guilty will be liable to a fine of not less than N300,000, imprisonment for a term of not less than two years, or both.
For corporate organisations, obstruction will attract a fine of not less than N5 million, alongside an additional N500,000 for every day the offence continues.
Furthermore, any person whose activities result in the spillage of crude oil or petroleum products will be liable, upon conviction, to a fine of not less than N2 million, imprisonment for a term of not less than two years, or both.
The bill also empowers NOSDRA, subject to the consent of the Attorney-General of the Federation and the provisions of Section 174 of the 1999 Constitution, to institute and conduct criminal proceedings against offenders for violations of the proposed law and its subsidiary regulations.
It further provides that the agency must ensure that polluters pay reasonable compensation for losses or damages arising from the use of equipment, facilities or personnel required under the legislation.
