TelegramRestricted by caption. UNCLASSIFIED   TRIPOLI   00000470 
P 161245Z JUN 08
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC PRIORITY 3539
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEHEG/AMEMBASSY CAIRO 1114
RUEHTU/AMEMBASSY TUNIS 0523
RUEHAS/AMEMBASSY ALGIERS 0690
RUEHRB/AMEMBASSY RABAT 0637
RUEHRH/AMEMBASSY RIYADH 0043
RUEHLO/AMEMBASSY LONDON PRIORITY 0828
RUEHFR/AMEMBASSY PARIS 0506
RUEHTRO/AMEMBASSY TRIPOLI 4045

UNCLAS SECTION 01 OF 02 TRIPOLI 000470 
 
SENSITIVE 
 
DEPT FOR NEA/MAG; COMMERCE FOR NATE MASON; 
ENERGY FOR GINA ERIKSON 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EPET SENV PGOV LY
SUBJECT: OIL- AND GAS-RELATED POLLUTION IN LIBYA 
 
¶1. (SBU)  Summary. Libya is slowly acknowledging the need to address the environmental impact of its oil and gas production. Environmental issues are becoming more central to the Libyan oil and gas industry, particularly with the influx of foreign companies, which often have a corporate mandate to operate in an environmentally-conscious manner, and the drive to expand production.  In practical terms, though, the GOL's involvement in and concern about environmental issues remain marginal. Significant shortcomings in the regulatory framework and legal system remain; spotty enforcement and a lack of environmental remediation facilities are key issues.  End Summary  GOVERNMENT OVERSIGHT AND LEGAL FRAMEWORK  2. (SBU)  Government of Libya (GOL) oversight of environmental issues stems from several laws passed by the General People's Congress, which in turn tasked the General People's Committee (GPC) for Health and Environment with implementation.  The GPC for Health and Environment in turn relies on the Libyan General Environmental Authority (EGA) to play the role of environmental watchdog and day-to-day implementer of these regulations. Unfortunately, the EGA is not an effective actor.  Its staff has suffered considerable turnover, contributing to a lack of continuity and direction. (Note: Not an uncommon situation in GOL entities.  End note.)  The EGA takes a hands-off approach to its environmental oversight responsibilities.  When energy companies wish to carry out environmental projects, EGA steers them into cooperative relationships with municipalities, universities, or other community-based organizations or associations, further diluting oversight and implementation.  3. (SBU)  The EGA's role is complicated by the a confusing legal and regulatory framework.  New decrees and amendments to existing laws are often adopted without repealing earlier legislation; in Libya's system, there is no effective mechanism for reconciling new legislation with previously existing statutes.  Laws lack sufficient specificity to offer useful guidance.  For the moment, GPC Law No. 15/2003 (regarding protection and improvement of the environment) is the most comprehensive and widely-implemented Libyan environmental law. However, law No. 7/1982, (regarding environmental protection) and law No. 8/1973 (regarding the prevention of oil pollution in the sea) remain on the books and have discrete sets of implementing regulations.  Law No. 15 was added to the mix in 2003 without any corresponding implementing regulations; implementing regulations related to law 7 (1982) and law 8 (1973) have effectively been used to implement law 15.  Given the confusing regulatory situation, most foreign energy companies do their best to comply with Libyan law, while also adhering to environmental standards established by their own companies, which reflect North American/European standards, in the hope that doing so will keep them out of trouble.  SCOPE OF THE PROBLEM  4. (SBU) Oil and natural gas production entail unique environmental issues.  These include the need to properly handle waste and polluted water generated from drilling operations, residuals from oil tank farms, chemical wastes, naturally-occurring radioactive materials, oil pits, and spillages.  This is a sizeable undertaking in a fully developed economy with a mature oil and gas sector; it is a significant challenge in an operating environment in which western producers were absent for 25 years and in which government oversight is uncoordinated and in some cases contradictory.  A significant problem is the lack of proper facilities, principally well-run landfill sites and industrial waste incinerators, in Libya. There are a handful of Libyan and foreign companies currently attempting to establish viable operations here; however, none have enjoyed considerable success to date.  5. (SBU)  The most significant issue is contamination from oil pits, storage facilities, refineries and the petrochemical and chemical plants associated with production and refining operations.  Dumping is a common practice, particularly in the remote areas of the country in which most oil and natural gas wells and production facilities are located.  Expatriate oil and gas contacts report that some local companies representing themselves as environmental service companies are known to regularly take custody of pollutants and simply relocate them to more remote locations in the middle of the desert.  Some waste  TRIPOLI 00000470  002 OF 002   is buried; some is left on the sand.  According to foreign environmental remediation companies marketing their services in Libya, more than five million tons of hydrocarbon production-related waste requiring special handling have accumulated throughout the country.  Environmental studies conducted in populated areas, such as al-Zawiya (where the Zawiya refinery is located) and Tripoli (home to a number of storage facilities) have shown high levels of soil contamination.  6. (SBU) Comment: While there appears to be a growing awareness among some GOL actors of environmental issues and a desire to develop best practices in the oil and gas sector, opaque regulations and inconsistent implementation of existing laws suggest that the burden will remain on foreign companies to cobble together environmentally responsible operations based on a combination of  Libyan and international standards.  The good news is that North American and European oil and gas companies have generally adopted stringent internal guidelines and monitoring mechanisms to ensure hydrocarbon production is carried out in an environmentally-responsible fashion.  Those firms are likely to produce a greater percentage of Libya's oil and gas as the country seeks to increase oil production to three million barrels/day from a current production level of 1.7 million barrels/day by 2013.  Nonetheless, indigenous Libyan entities, particularly oilfield services companies, are playing an increasingly active role in oil and gas production.  More concerted efforts by the GOL to govern those entities, particularly with respect to clarifying regulations and enforcing them, will be necessary if Libya is to adequately safeguard its environment.  End comment. STEVENS