Архив рубрики: OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

Appeal Regarding the Emergency Situation in the Village of Berezovka

On November 28, 2014, 19 children and three adults fainted in the Berezovka village school in Burlin district of Western Kazakhstan Oblast, and were taken to the Burlin district hospital. On November 29th, six children were transferred to the regional clinical hospital.

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Appeal Regarding the Emergency Situation in the Village of Berezovka to:

The President of the Republic of Kazakhstan

Commissioner for Human Rights under the President of the Republic of Kazakhstan

Commission for Human Rights under the President of the Republic of Kazakhstan

Committee for Agriculture, Natural Resource Use and Development of Agricultural Territory of the Senate of the Parliament of the Republic of Kazakhstan

Committee on Environment and Natural Resource Use of the Majilis of the Parliament of the Republic of Kazakhstan

The Government of the Republic of Kazakhstan

The Akimat of Western Kazakhstan Oblast 

Karachaganak Petroleum Operating, B.V.

The Department for Emergency Situations of Western Kazakhstan Oblast

Department of Health Protection of Western Kazakhstan Oblast

Department of Natural Resources and Natural Resource Use of Western Kazakhstan Oblast

Department of Consumer Protection of Western Kazakhstan Oblast

Department of Education of Western Kazakhstan Oblast

December 2, 2014

On November 28, 2014, 19 children and three adults fainted in the Berezovka village school in Burlin district of Western Kazakhstan Oblast, and were taken to the Burlin district hospital. On November 29th, six children were transferred to the regional clinical hospital.

On November 29th during a public meeting with the residents of the village, the deputy head of the regional health department, M. Aimurzieva, stated, “Preliminary results indicated that an unknown toxic substance impacted the central nervous system [of the hospitalized villagers].”

The village of Berezovka is located not far from the Karachaganak oil and gas condensate field of the international consortium, Karachaganak Petroleum Operating, B.V. (KPO), which is one of the most dangerous industrial enterprises in Kazakhstan. KPO’s sanitary protection zone crosses the northern edge of the village. The situation with the borderline and the village has been the formal basis for refusal to relocate the villagers to a safe location. Numerous factual documents demonstrate that the placement of the minimal five-kilometer sanitary protection zone is not enough to ensure the environmental safety of the residents.

Since 2002, the residents of Berezovka, on their own and with the help of human rights organizations, have repeatedly appealed to the responsible government bodies and to the Karachaganak Petroleum Operating, B.V. consortium with requests to relocate the village from this dangerous area. Their appeals have had no effect, regardless of the fact that more and more data have appeared about the growing threats to the health and lives of the residents. In 2010 the villagers appealed to the courts; the court determined that the sanitary protection zone had been illegally reduced. The residents of Berezovka appealed to state bodies numerous times about accidental emissions into the atmosphere, which negatively impacted the residents, and about illnesses among children. In 2011 the residents began to worry about the appearance of sinkholes in the village and surrounding areas.

We believe that the emergency, which took place in the village of Berezovka on November 28, 2014, is not a surprise. It is the logical result of unscrupulous fulfillment of responsibilities by state bodies and the result of violations of environmental and industrial safety standards by the consortium, Karachaganak Petroleum Operating, B.V. This led to further violations of the human right to a clean and healthy environment, which is enshrined in the Constitution of the Republic of Kazakhstan, the environmental code and in international agreements ratified by the country. Furthermore, the residents of the village are exposed to discrimination on the basis of where they live, and their social status and wealth.

Based on the above statements, we fully support the demands of the residents of the village to be relocated to safe location.

We demand:
— the provision of complete, accurate information about all types of work carried out by KPO in the sanitary protection zone, and data on industrial monitoring for the past two years;
— the provision of complete, accurate medical information on the reasons for the poisoning of the residents of the village;
— the provision of independent research into the reasons for the poisoning with the involvement of all responsible bodies and the prosecutor’s office;
— full, transparent research and provision of all results to the residents of the village, the public, and the media.

We demand an end to the human rights violations and discrimination against the residents of the village of Berezovka.

We demand the rapid relocation of the residents of Berezovka.

We request that you send your responses to:

1. Sergey Kuratov, Chairman, Ecological Society Green Salvation, 050000, Republic of Kazakhstan, Almaty, Ul. Shagabutdinova, 58, Apt. 28

2. Kate Watters, Executive Director, Crude Accountability, P.O. Box 2345, Alexandria, VA 22301, USA;

3. Svetlana Anosova, Chairwoman, Zhasil Dala, Republic of Kazakhstan, Western Kazakhstan Region, Burlin District, Berezovka, Ul. Dostyk 7

4. Lukpan Akhmediarov, Editor, Uralsk Weekly, 090000, Republic of Kazakhsatn, Western Kazakhstan Region, Uralsk, Ul. Kerderi 138.

5. Roza Akylbekova, Director, Kazakhstan International Bureau for Human Rights and the Rule of Law, 050035, Republic of Kazakhstan, Almaty, Microregion 8, d.4-a, office 423

6. Elvira Batlina, Working Group of NGOs of Kazakhstan, For the Defense of the Rights of Children”

Details:  AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

Sinkholes Appear in and Around the Village of Berezovka Near the Karachaganak Field in Kazakhstan

2011berezovka-proval1Sinkholes are appearing in and around the village of Berezovka as the ground gives way near the territory of the Karachaganak Oil and Gas Condensate Field in western Kazakhstan. Local residents are concerned that this is could be related to the expanded exploration and drilling of oil and gas condensate at the Karachaganak Field.

After a sinkhole appeared in the village in December 2010, and three others were found in close proximity to Berezovka, at the request of the local villager in whose home the sinkhole occurred, the local environmental organization, Zhasil Dala (Green Steppe), filed a formal complaint with the prosecutors’ offices on the local, regional and national levels.

“It has been a month since the sinkhole appeared, and nothing has been done,” said Nagaisha Demesheva. “I am constantly terrified, and I am afraid for those of us living in the house. I’m also worried about what can happen now since it is winter and parts of my house could just fall into the street.”

2011berezovka-proval2“The failure to conduct the required investigation into the cause of the sinkhole under Demesheva’s home and the inaction of government bodies create a dangerous threat to her family. This is a violation of her rights, which are guaranteed by the Constitution and laws of the Republic of Kazakhstan,” stated Zhasil Dala in its formal statement to the prosecutor. “It is a well-established fact that the formation of sinkholes happens during the development of oil and gas fields.”

Several months ago, two sinkholes appeared approximately 1.5 kilometers south of Berezovka. They are 2.5 meters by 1.5 meters wide; one sinkhole is about 4 meters deep, the other is approximately 5 meters deep. The internal diameter of the sinkholes is around 5 to 6 meters, according to Sergey Solyanik of Crude Accountability, who witnessed the caved-in areas himself.

2011berezovka-proval5+A third sinkhole was recently found inside the Sanitary Protection Zone of the Karachaganak field not far from the village of Zhanatalap. The diameter of this sinkhole is 10 to 12 meters, with a depth of 8 to 9 meters. In this same location are two older sinkholes, which were found by local hunters two years ago. KPO has erected special signs in the area warning local residents that it is dangerous.

“The appearance of the sinkholes in and near the village demands immediate investigation into why they are occurring. It is possible that this is connected with the development at Karachaganak,” said Sergey Solyanik. “The residents of Berezovka are concerned because now, along with the gas emissions from the field, there is a new threat. This demonstrates again the danger to people living close to Karachaganak and the need to relocate the residents of Berezovka as quickly as possible.”

2011berezovka-proval7+The villagers have been fighting for relocation for the past 8 years, as it is illegal, according to Kazakhstani law, for anyone to live inside the Sanitary Protection Zone.

Waste water is reinjected into the ground at the Karachaganak field, a common practice at oil and gas fields. Researchers have been investigating the potential connection between reinjection and the appearance of sinkholes. One of the most recent and well-known instances of sinkholes damaging communities occurred in 2008 in Daisetta, Texas, when a 600 foot sinkhole emerged in an area where salt domes were used to inject salty waste water from oil and gas operations. (Wall Street Journal, May 18, 2008)

According to the appeal from Zhasil Dala, rumors have begun to circulate among the residents of Berezovka that the village itself will soon fall into a sinkhole.

2011berezovka-proval9+To read Zhasil Dala’s appeal and to learn more about the village of Berezovka’s campaign for relocation, please visit www.crudeaccountability.org.
January 19, 2011

Contact:
Kate Watters: 703-299-0854, kate@crudeaccountability.org
Sergey Solyanik: ss_grs@yahoo.com

The People have Taken a Partial Step towards Victory

Alla Zlobina

Republic, 2/2/2010

The first ever lawsuit filed by NGOs against the Government of Kazakhstan has received a continuance. The Review Board of the Supreme Court satisfied the complaint filed by the public association “Zhasil Dala” and the Ecological Society “Green Salvation” with its decision to continue to review the case regarding relocating the residents of the village of Berezovka.

The Ecological Society “Green Salvation” and the residents of the village of Berezovka (Burlinsky Raion, Western Kazakhstan Oblast) filed the lawsuit against the Government of Kazakhstan in early 2009. They have accused the federal government of “failing to undertake measures to protect and defend the rights and freedoms of citizens and to ensure the safety of the residents of the village of Berezovka who have been forced to live in a zone that is dangerous to their health, and in violation of their rights to a healthy environment” (Author’s Note: the village is located next to the Karachaganak Field).

The story behind the lawsuit has been ongoing since 2004. As a result of the reduction of the Karachaganak Field’s Sanitary Protection Zone (SPZ) from 5 to 3 kilometers, the village of Berezovka, which is located on the zone’s border, was rendered well outside of its boundaries. As such, the village residents were effectively excluded from the opportunity to raise the question of relocating their village to a safe zone.

In 2006, following numerous complaints by Berezovka’s residents and statements to the media, the Republic of Kazakhstan’s Senior Sanitary Doctor, Anatoly Belonog, acknowledged as illegal the reduction of the Sanitary Protection Zone. Karachaganak Petroleum Operating B.V. should have defined and presented for approval the new borders of the SPZ within the course of one year. However, no such reaction followed on the part of the consortium of foreign companies, and, subsequently, the Ecological Society “Green Salvation” filed the lawsuit on behalf of the residents.

In the course of the past year, the lawsuit has been reviewed in the Western Kazakhstan Oblast Court and the City of Astana’s Interdistrict Economic Court. The case was declared outside the jurisdiction of the court; nevertheless the Interdistrict Economic Court of Astana partially satisfied the legal demands of the villagers by acknowledging as illegal the decision to reduce the Karachaganak Field’s SPZ from 5 to 3 kilometers. However, the residents have fought for relocation of the village because their proximity to the field has already impacted the health of children and adults.

Environmentalists had already lost hope for success in this case when Svetlana Anosova, leader of “Zhasil Dala”, received the decision from the Supreme Court’s Review Board. The villagers’ case will be directed “for a new review by the same court, but under a different judge”.

Svetlana Anosova is convinced that if considered in detail and fairly, then it is possible the determination will be that her native village, where 1500 people live, is located in a zone that is dangerous to life.

“We are now concerned with this issue: If there is a definite size—a five kilometer zone—then there should be a definite reference point,” she concluded. “As far as we understand, the reference point should be determined from the external border of the field equipment, that is, from the last well or other industrial object.”

One month ago, Svetlana Anosova sent an inquiry to KPO, requesting that this reference point be made public, arguing that, as the Karachaganak project is under development and new objects are being constructed, it is possible that the external border of the industrial objects has come significantly closer to the village of Berezovka.

She believes that “under the new calculation, it is altogether likely that the village of Berezovka is located not on the border, but on the territory of the SPZ itself.”

The leader of the public association has not received a concrete answer. It was only dryly reported to her that the issue of the zone’s territory is still under consideration.

Experts believe that in the future, rather than hiding its head in the sand, the country’s government is going to have to resolve the question of the safety of the residents of Western Kazakhstan Oblast’s Burlinsky Raion. Five other villages, consisting of nearly nine thousand people, are situated on the perimeter of the Karachaganak Field’s SPZ—the villages of Uspenovka, Zharsuat, Karachaganak, Zhanatalap and Priuralny. The residents of these villages are also experiencing negative impacts from the Field and, sooner or later, will raise the issue of their relocation.

If the new legal process ends positively and the lawsuit demands are satisfied, the villagers of Berezovka will be relocated. As a rule, the expenses in such cases are incurred by the company that is operating the Field. However, in accordance with the final Production Sharing Agreement, all charges on foreign investors are compensated for by the Kazakhstani government. Therefore, the relocation decision should be made at the federal level.

….It should be noted that this case is unprecedented. We think that there is hardly another country in which the question of the size of a Sanitary Protection Zone for a major oil and gas condensate field, and most importantly, the safety and health of the people living along the zone, would not be resolved during the course of six years.

Translated by Crude Accountability

Details:  AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

Lawsuit on the Government’s Failure to Act: A Complaint has been Submitted!

On February 12, the Ecological Society “Green Salvation”, the Kazakhstan International Bureau for Human Rights and Rule of Law, and the Nationwide Public Association “Shanyrak” issued a complaint to the Appellate Board on Civic Affairs for the Astana City Court. The complaint was submitted in connection with the fact that, on January 30, the judge of the Almaty District Court of Astana City decided that the case falls under the jurisdiction of the… Specialized Interregional Economic Court of Astana City!

At a press conference on January 27, 2009, the plaintiffs reported that the lawsuit was filed on June 19, 2008 in the interests of the village of Berezovka (Western Kazakhstan Oblast). For nearly half a year and under various pretexts, Astana’s city courts—including the Specialized Interregional Economic Court—refused to accept the lawsuit. However, on December 11, 2008, the Board on Civic Affairs of the Astana City Court satisfied the plaintiff’s complaint and issued a decision to review the lawsuit on its merits in the Almaty District Court of Astana City.

The trial session took place on January 30, 2009. At the assigned time, the judge proceeded to review the case, verified the authority of the parties, heard their explanations on the merits of the lawsuit, received the plaintiffs’ petition to call in the General Public Prosecutor, and then retreated to the deliberation room to decide upon a verdict. But instead of a verdict, the judge issued a determination to return the lawsuit to the plaintiffs, stating that the case falls under the jurisdiction of the Specialized Interregional Economic Court!

Disagreeing with the judge’s determination, the plaintiffs submitted a complaint to the Astana City Court, with the request:

— to rescind the judge’s determination as an illegal decision, handed down without consideration of the circumstances of the case, and in violation of the December 11, 2008 decision from the Board on Civic Affairs of the Astana City Court;

— to require the judge to review the case on its merits and to issue a verdict in accordance with the requirements of the law.

Information on future case developments will be published on our website.

Translated by Michelle Kinman.

Details:  AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

For the first time, a court in the Republic of Kazakhstan has agreed to review a lawsuit from the public against the government for its failure to act 

For the first time, a court in the Republic of Kazakhstan has agreed to review a lawsuit from the public against the government for its failure to act, which has led to a violation of the right of citizens to a healthy environment.

Kazakhstan Press Club
January 27, 2009, 12:00 PM

PRESS RELEASE

For the first time, a court in the Republic of Kazakhstan has agreed to review a lawsuit from the public against the government for its failure to act, which has led to a violation of the right of citizens to a healthy environment.

The lawsuit was submitted on June 19, 2008 in the interests of the residents of the village of Berezovka (Western Kazakhstan Oblast) by the Ecological Society “Green Salvation”, the Kazakhstan International Bureau for Human Rights and Rule of Law, and the Nationwide Public Association “Shanyrak”. For nearly half a year and under various pretexts, a number of Astana’s city courts refused to accept the lawsuit for review. Finally, on December 11, 2008, the Board of Civic Affairs of the Astana City Court satisfied the plaintiff’s complaint and issued a decision to review the lawsuit on its merits in the Almaty District Court of Astana City.

In 1979, the Karachaganak Oil and Gas Condensate Field was opened near Berezovka, which currently has a population of nearly 1400. In 1997, the field was turned over to the international consortium “Karachaganak Petroleum Operating B.V.” for development. The active development of the field has led to intensive environmental pollution. Kazakhstan’s Ministry of Environmental Protection lists KPO as an enterprise that is especially dangerous to the environment. In 2002, the Ministry of Public Health established a Sanitary Protection Zone with a radius of 5000 meters around Karachaganak, and a portion of the village of Berezovka fell within this boundary. As it is not permitted for people to live within Sanitary Protection Zones, the residents of Berezovka should have been relocated to a safe location. The relocation issue has been raised repeatedly. However, the government has not resolved the issue.

The government’s failure to act forced the residents of Berezovka, with the assistance of public organizations, to appeal (in 2004, 2007 and 2008) to the International Finance Corporation’s (IFC) Office of the Compliance Advisor/Ombudsman (CAO). The IFC awarded a loan of $150 million to Lukoil, one of the companies comprising KPO. In their complaints, the local residents draw attention to the fact that the IFC’s investment is fostering environmental pollution. The Berezovka residents also raise the need for relocation and compensation for damages incurred. In response to the first complaint, the CAO conducted an audit and acknowledged that the monitoring of atmospheric emissions and water quality conducted by KPO is not in accordance with the IFC’s requirements. The process of reviewing the complaints is still underway.

In accordance with the statutes of the Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (Aarhus Convention) and the laws of the Republic of Kazakhstan, the public has the right to contest in court actions or lack of actions on the part of government bodies, which violate the provisions of national legislation.

The violation of the Sanitary Protection Zone conditions, which was cause for appealing to the court, is, unfortunately, a typical example of the lack of compliance with environmental protection legislation in our country. Public enterprises as well as government bureaucrats are the perpetrators of these legal violations. As a result, the health and lives of thousands of people is under constant threat. One of the fundamental rights of each person—in this and future generations—is being violated: the right to live in an environment that is favorable to his/her health and wellbeing.

On January 26, 2009, the first trial session on this lawsuit is to be held in the Almaty District Court of Astana City. The session results will be announced at the press conference.

More information is available at www.greensalvation.org

Press Conference Participants:

Sergey Georgievich Kuratov, Chair of the Ecological Society “Green Salvation”;

Evgenii Aleksandrovich Zhovtis, Director of the Kazakhstan International Bureau for Human Rights and Rule of Law;

Asylbek Bazarbaevich Kozhakhmetov, Chair of the Nationwide Public Association “Shanyrak”.
Address of the Kazakhstan Press Club:
Almaty, 050059, microraion “Samal-2”
ul. Furmanova, at the corner of Al’-Farabi
Business Center “СAТТІ, Entrance 1 (from ul. Furmanova).
Tel.: +7 (727) 272-79-92, 272-88-67, 272-82-37, 261-77-73
E-mail: info@pressclub.kz
www.pressclub.kz

Details:  AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

Supreme Court of the Republic of Kazakhstan – Decree of the Court No. 4GP-64-08

Supreme Court of the Republic of Kazakhstan
010000, Astana, Levyi Bereg Reki Ishim, Ulitsa Tauelsyzdyk, d-39
Tel: (7172) 74-75-85, Fax: (7172) 74-78-13, Email: v_sud@kepter.kz

 

090000
Specialized Interregional Economic Court
Western Kazakhstan Oblast090000, Western Kazakhstan Oblast Court010000, General Public Prosecutor’s Office of the Republic of Kazakhstan

09000, Uralsk, Ul. Dostyk-Druzhba, d. 215
Office 306, representing the Ecological Society 
Green Salvation, P.M. Kochetkov, P.M.

05000, Almaty, Ul. Shagabutdinova, d. 58, kv. 28
Ecological Society Green Salvation

090306, Western Kazakhstan Oblast
Burlinsky Raion, Berezovka, Anosova, S..Ya.

09000, Uralsk, Ul. Mukhita, 50/1 GU
Statistics Department of Western Kazakhstan Oblast
Khamzin A.

 

In reference to the civil case concerning the request by the public association the Ecological Society Green Salvation to the Head of the Government Department “Statistics Department of Western Kazakhstan Oblast”, A. Khamzin, about the acknowledgment of the activity by the responsible individual for the refusal to provide the requested information about pollution of the atmosphere by emissions from the enterprise, “Karachaganak Petroleum Operating, B.V.”, which violated the rights and legal interests of the individual, S. Ya. Anosova, the requirement to present information about the emissions from the enterprise, “Karachaganak Petroleum Operating, B.V.”, which are polluting the atmosphere, with the ordinance of the Review Board of the Supreme Court of the Republic of Kazakhstan from March 26, 2008 for implementation.Attachment:
addressing: civil act No. 2-436/07 in one volume of 181 pages:
to four addressees — copies of the legal documents in five pages, a copy of the decision in five pages;
to the other addressees — copies of the decision in five pages.
Chairman of the Review Board                            A. Smolin

0105539

***
Decree of the Court
No. 4GP-64-08 


26 March 2008
Astana

The Supreme Court’s Review Board on Civic Affairs of the Republic of Kazakhstan, consisting of the presiding representative of the Review Board A.S. Smolin, Judge G.B. Ak-kuova, B.K. Axmetov, V.V. Nozdrin, L.G. Poltorabatko, and with the participation of Deputy General Public Prosecutor of the Republic of Kazakhstan, R.N. Mamyrbaev, reviewing in open court session the civil case on the application of the public organization, the Ecological Society Green Salvation to the Head of the Government “Statistics Department of Western Kazakhstan Oblast” A. Khamzin on the acknowledgement of the action of the responsible person for the refusal to provide requested information on the emissions of the enterprise, “Karachaganak Petroleum Operating, B.V.” for polluting the atmosphere, violating the rights and legal interests of the individual, S.Ya. Anosova, which was required to present information on the emissions of the enterprise, “Karachaganak Petroleum Operating, B.V.”, polluting the atmosphere, and admitting to the complaint for review by the representative of the public organization, the Ecological Society Green Salvation through the power of attorney of P.M. Kochetkov for the decision of the Specialized Interregional Economic Court of Western Kazakhstan Oblast from May 7, 2007 and the statement of colleagues of the civil case of the Western Kazakhstan Oblast Court from 12 June 2007.

Established:

The public organization the Ecological Society Green Salvation (further, ES Green Salvation) appealed to the court with an application to the Head of the Government “Statistics Department of Western Kazakhstan Oblast” (further GD), A. Khamzin, on the acknowledgement of the activity of the responsible person on the refusal to provide the requested information on emissions of the enterprise “Karachaganak Petroleum Operating, B.V.” (further “KPO B.V.”), polluting the atmosphere, violating the rights and legal interests of the individual S.Ya. Anosova.. This individual was required to present the information on the emissions of the enterprise “KPO B.V.”, which was polluting the atmosphere, motivated by the presentation of the demand that on 16 January 2007, the ES Green Salvation, appealed to the GD with a request to present the information on the emissions of toxic substances into the atmosphere by the enterprise, KPO, B.V. However, A. Khamzin, the Head of the GD, refused to present the information, stating in his letter No. 7-1-45/127 of January 24, 2007 that the information was confidential.

The decision of the Specialized Interregional Economic Court of Western Kazakhstan Oblast of May 7, 2007 with regard to the application of the ES Green Salvation was a refusal.

The decision of the Specialized Interregional Economic Court of Western Kazakhstan Oblast from May 7, 2007 was unchanged by the decision of the Board on Civic Affairs of Western Kazakhstan Regional Court from June 12, 2007.

In the complaint for review, the representative of the ES Green Salvation, through the power of attorney of P.M. Kochetkov, requested that the decision of the Specialized Interregional Economic Court of Western Kazakhstan Oblast of May 7, 2007 be changed and the decision of the Board on Civic Affairs of the Western Kazakhstan Oblast Court from June 12, 2007, and make a new decision on the outcome of the application, considering the violation of norms of material and procedural rights by the courts.

Having listened to the report of Judge G. B. Ak-Kuova on the circumstances of the case and the arguments of the complaint, and the conclusions of the public prosecutor regarding the suppositions of the complaint and the materials from the civil case, the Board finds in the case of the legal acts subject to cancellation because of the following.

In accordance with Article 387 of the Civil Procedural Code, the existing violations of the norms of material or procedural rights provide the grounds for reconsidering the review procedures, which bear the legal force of court acts.

According to the facts of the case, a violation of the standards of material rights has occurred, which has resulted in an incorrect interpretation of the standard of the law.

In the complaint under consideration, the declarant claims that the ES Green Salvation, as a public organization, having the right to receive complete and reliable environmental information according to the standards of the Ecological Code, appealed to the GD “Statistics Department of Western Kazakhstan Oblast” with a request to obtain the annual data from the State Statistical Report Form 2-TP “Air” on emissions of polluting elements in the atmosphere from the enterprise, KPO B.V. for the years 2000-2006.

However, in the letter from the Department Head, A. Khamzin, No. 7.1-45/127 from January 24, 2007, the requested information was refused, because physical and legal entities are guaranteed the protection of state and commercial secrets, and the confidentiality of primary statistical information on the basis of personal responsibility of the employees of organs of state statistics and in accordance with the legislation of the Republic of Kazakhstan.

The declarant believes that the requested information does not qualify as a state or commercial secret. Furthermore, the ES Green Salvation requested information about the state of the pollution of the atmosphere by the enterprise KPO B.V., and not primary information about the legal entity KPO B.V.

The Supreme Court’s Review Board on Civic Affairs finds the stated argument of the complaint to have basis.

The Court, in refusing to satisfy the lawsuit filed by the ES Green Salvation, justified its conclusions, saying that the information requested by the declarant in the form 2-TP “Air” “Report on the Protection of Atmospheric Air” is primary statistical information.

In accordance with Point 2, Article 11 of the Law “On State Statistics,” the representative organ and its territorial subdivisions are required, within the limits of their capacity, to observe the confidentiality of primary statistical information on the basis of personal responsibility of the employees of the state organs of statistics in accordance with the legislation of the Republic of Kazakhstan.

Therefore, the Court came to the conclusion that the information requested by the ES Green Salvation is primary, and therefore, confidential.

Meanwhile, in accordance with Article 2 of the Law “On State Statistics”, primary statistical information—data about concrete physical individuals, legal entities and their structural subsections—introduced during statistical observation by organs of state statistics for statistical purposes.

As is clear from the materials from the case, the ES Green Salvation did not ask for evidence of the number of workers at KPO B.V., their salaries, profiles of their activity, or structural subdivisions. Therefore, it is impossible to agree with the conclusions of the Court that the requested information on the atmospheric emissions is primary information, and therefore confidential.

According to the Law of the Republic of Kazakhstan from October 23, 2000, the United Nations Economic Commission for Europe Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters, signed in Aarhus (Denmark) on June 25, 1998 (further the Aarhus Convention) was ratified.

This Convention assigns special significance to the transparency of information regarding environmental pollution. First, this information cannot be called a commercial secret, and secondly, this serves as further basis for decision-making on the disclosure of confidential information. The Board proposes that when a public request for a document with a confidential character is received, the state organ must exclude the closed information from the document, providing access to the remainder of the document.

In the development of the provisions of the Aarhus Convention in the Concept of Environmental Safety from 2004-2015, approved by decree of the President of the Republic of Kazakhstan from December 3, 2003, No. 1241, public access to environmental information and the public’s participation in environmental decision-making was identified as one of the basic principles of environmental safety.

In accordance with Point 3, Article 4 of the Constitution of the Republic of Kazakhstan, international agreements ratified by the Republic have priority over national laws and are applied directly, except in instances when from the international agreement it follows that its application demands the promulgation of law.

In connection with what is set forth, the Board finds the possible application of Article 4 of the Aarhus Convention in the examination of this case.

Thus, in accordance with the provisions of this article in the request for the presentation of environmental information, it is possible to determine whether divulging this information would negatively impact:

a)    the confidentiality of the work of state organs in instances where this confidentiality is covered by national legislation;

b)    the confidentiality of commercial and industrial information in those circumstances when the confidentiality is protected by law with the purpose of protecting legal economic interests. In these parameters, information on emissions, related to environmental protection, is subject to disclosure.

The abovementioned bases for refusal are interpreted in a limited way with regard to the interest of the pubic in disclosure of the information and with regard for the fact that the requested information is related to emissions in the environment.

An analysis of the above-described standards, including both national legislation and an international agreement, demonstrate that the requested environmental information cannot be closed, and the presentation of this information will not negatively impact the confidentiality of the work of the state organ, in particular the organ of statistics. Furthermore, information on emissions, related to environmental protection, must be disclosed.

Paying attention to the decreed responsibility, the Board believes that the refusal of the statistics organs in providing information on emissions into the atmosphere contradicts the standards of the international agreement, and in this connection the legal decision is liable to repeal with the new decision on the satisfaction of the demands of the declarant.

On the basis of what has been stated here, and guided by Article 398 of Civil Procedural Code, the Review Board.

ORDERED:

The decision of the Specialized Interregional Economic Court of Western Kazakhstan Oblast from May 7, 2007, and the decree of the court of the Board on Civic Affairs of the Western Kazakhstan Oblast Court from June 12, 2007 are repealed.

The lawsuit of the ES Green Salvation is satisfied.

To require GD “Statistics Department of Western Kazakhstan Oblast” to provide the ES Green Salvation with the requested environmental information.

To satisfy the reviewed complaint.

Chairman                                                                                                            A.S. Smolin

Judges of the Review Board: G.B. Ak-kuova, B.K. Akhmetov, L.G. Poltorabatko, V.V. Nozdrin

Copy verified by Judge G.B. Ak-kuova

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Unofficial translation from Russian to English by Crude Accountability.

Letter from Office of the Compliance advisor/Ombudsman

On July 25, 2007, Green Salvation received  letter from CAO. Ombudsman office suggested to close the complaint of organization. Green Salvation has rejected this suggestion and required to investigate the complaint.


Office of the Compliance advisor/Ombudsman

2121 Pennsylvania avenue, NW • Washington, DC 20433, USA
Telephone (202) 458-9452 • Facsimile (202) 522-7400
MTaylor@ifc.org

July 25, 2007

Mr. Sergey Solyanik
on behalf of Green Salvation
The Ecological Society Green Salvation
St.Shagabutdinov 58-28
050000, Kazakhstan, Almaty

Sent by electronic mail (grsalmati@gmail.com) and courier:

Dear Mr. Solyanik,

I am writing to follow up on the complaint you had provided to our office on April 12 2007. We have now had an opportunity to review the issues you have raised and discuss them with the parties concerned.

Our understanding is that your principal concerns relate to specific IFC policy violations which you believe have resulted in harmful environmental conditions and health effects of local residents. You have raised concerns about transparency and public access to information on environmental discharges and public health, the re-zoning of the Sanitary Protection Zone (SPZ) and resettlement.

As you are aware, the CAO has been involved on complaints relating to the KPO project since 2004. The issues you have raised have been investigated by our office in its response to concerns raised by the residents of Berezovska in September 2004. We have reported on the status of our work with respect to this complaint on our website (http://www.cao-ombudsman.org/html-english/complaint_karachaganak.htm).

In response to this complaint, we have undertaken two field assessments (in December 2004 and February 2006) during which we engaged directly with project-affected communities, complainants and company representatives. Our last field visit promoted extensive discussion amongst the principal parties about their desire to resolve the complaint through a fact-finding process organized by the Ombudsman. Based on information from that visit, CAO released a progress report which included a recommended process for establishing a multi-party monitoring initiative — an idea first proposed by KPO. The parties were asked to confirm to CAO whether they were willing to pursue the multiparty monitoring program or attempt some other type of solution.

Both parties have responded that they wish to resolve the conflict through Kazakhstan’s legal and regulatory authorities, rather than attempt a mediated or collaborative process through the Ombudsman. Accordingly, the Ombudsman transferred the complaint to CAO’s Compliance Office for a judgment on IFC’s compliance with relevant environmental, social and disclosure policies. An appraisal report was made public on April 17 2007, and Terms of Reference for the Audit released soon after.

Both these documents are available on our website (http://www.cao-ombudsman.org/html enqlish/complaintKazkhstanCompliance.htm)  where any updates on the status of the audit will also be published. The final audit report must be cleared by the President before it is released publicly together with IFC’s management response.

It is our understanding that the positions of parties has not changed since the completion of our last assessment visit. In addition, the audit report which we are completing may well provide you with a number of answers to the specific questions and concerns you have raised. On that basis, we are recommending that we close your complaint at this time, on the understanding that you may wish to review your position once the audit report has been released. If at such time in the future, you wish to re-submit a complaint based on new information or evidence that the parties are willing to engage in a dispute resolution process, you are free to do so.

Thank you for raising these concerns with the CAO and we look forwards to providing you with a copy of our audit report in due course.

With kind regard,

Meg Taylor
Compliance Advisor/Ombudsman

 

Details:  AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

The village of Berezovka is located in the Burlinsky District of Western Kazakhstan Oblast. It was formerly a central farmstead in the “Akbulaksky” state farm, one of the wealthiest farms in the oblast. Nearly 1400 people currently reside in the village.

In 1979, the Karachaganak Oil and Gas Condensate Field was opened adjacent to Berezovka. In 1997, the international consortium “Karachaganak Petroleum Operating, B.V.” began developing the field, leading to severe environmental pollution.

KPO is one of the largest projects in the Republic of Kazakhstan, and has been included in a list from the Ministry of Environmental Protection of enterprises that are particularly dangerous to the environment. In 2002, the Ministry of Public Health established a Sanitary Protection Zone (SPZ) with a radius of 5000 meters around the Karachaganak Field, and a portion of the village of Berezovka falls within this zone. In accordance with Kazakhstani legislation, people are not permitted to live within Sanitary Protection Zones. For this reason, the residents of the village should have been relocated to a safe location. The issue of relocation has been raised repeatedly with local authorities and authorized government bodies.

However, in 2004, the State’s Senior Sanitary Doctor made the decision to reduce the SPZ from 5000 to 3000-3840 meters, violating a number of requirements set forth in national legislation and in the Aarhus Convention. As a result, the village of Berezovka found itself outside of the SPZ’s boundaries.

In 2006, the General Public Prosecutor issued a protest against this decision. As a result, the decision was recognized as illegal and it no longer carries legal force. Today, the SPZ has been restored to 5000 meters.

Since 2002, the residents of Berezovka have tried unsuccessfully to defend their rights to live in a healthy environment. Their repeated appeals to the authorities and KPO to resolve the issue of relocation have not led to any concrete results.

In 2004, Berezovka residents were compelled to submit a complaint to the International Finance Corporation’s (IFC) Office of Compliance Advisor/Ombudsman (CAO). In 2002, the IFC awarded a $150 million loan for development of the Karachaganak Field to Lukoil, which together with ENI, BG Group, and Chevron, comprises KPO. Therefore, the local residents appealed to the CAO, stating that the IFC’s investment is fostering environmental pollution. In 2007 and 2008, two additional complaints were filed, raising the issue of the need to relocate the residents of the village and to provide them with compensation for damages incurred. In response to the first complaint, the CAO conducted an audit, the results of which were published in April 2008. The CAO acknowledged that KPO’s monitoring of atmospheric emissions and water quality was not in compliance with the IFC’s standards. The complaint review process is still underway.

In 2007, KPO was the focus of a corruption scandal. The United States District Court for the Southern District of Texas, found the American company Baker Hughes, which was a contractor at KPO, guilty of bribing Kazakhstani bureaucrats. As such, the American entrepreneurs were awarded a profitable contract to participate in the preparatory work at the Karachaganak Field.

In connection with the Government’s failure to act, on June 19, 2008, the Ecological Society Green Salvation, the Kazakhstani International Bureau for Human Rights and Rule of Law, and the Nationwide Public Association “Shanyrak” filed a lawsuit in Kazakhstan on behalf of the residents of the village of Berezovka.
Translated by Michelle Kinman.

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KARACHAGANAK IN THE NEWS (Crude Accountability)

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Appeal Regarding the Emergency Situation in the Village of Berezovka (2.12.2014)

— Sinkholes Appear in and Around the Village of Berezovka Near the Karachaganak Field in Kazakhstan (19.01.2011)

— A Town that Suffers because of World Bank Inaction (youtube — CrudeAccountability) (2010).

—  A lawsuit about the government inactivity. Court on-site hearings in Berezovka village (13.05.2010)

Kazakhstan has Charged an Oil Extraction Consortium $700 Million in Illegal Revenue (Gazeta.ru, 26.03.2010)

— The People have Taken a Partial Step towards Victory (Republic, 02.02.2010)

Lawsuit on the Government’s Failure to Act: A Complaint has been Submitted! (27.02.2009)

For the first time, a court in the Republic of Kazakhstan has agreed to review a lawsuit from the public against the government for its failure to act, which has led to a violation of the right of citizens to a healthy environment (27.01.2009).

— On May 9, the Ecological Society Green Salvation and Crude Accountability submitted a joint complaint to the Compliance Advisor Ombudsman (CAO) of the International Finance Corporation (IFC) to protect the rights of Berezovka residents (Burlinsky District, Western Kazakhstan Oblast). It is the third public complaint to the CAO regarding this problem. On June 5, the CAO announced that an assessment of the complaint will be undertaken.

Supreme Court of the Republic of Kazakhstan — Decree of the Court No. 4GP-64-08 (26.03.2008)

APPRAISAL REPORT. Case of Green Salvation / Residents in the Village of Berezovka II (15.01.2008)

ASSESSMENT REPORT. Case regarding the Green Salvation Ecological Society and Karachaganak Petroleum Operation (15.11.2007)

Letter from Office of the Compliance advisor/Ombudsman (25.07.2007)

Appeal of Kazakhstani and American NGOs to the World Bank (13.06.2007)

—  IFC Officially Confirmed That the Complaint Is Eligible for Further Assessment (02.05.2007)

Complaint to Compliance Advisor/Ombudsman International Finance Corporation (11.04.2007)

An Oil Democracy, or the Story of Berezovka (Green Salvation Herald, 2006)

—  Film «Svetlana’s Story» (08.2003)

Appeal of Kazakhstani and American NGOs to the World Bank

Last week several Kazakhstani and American NGOs sent an appeal to the World Bank’s Department of Institutional Integrity. The appeal addressed the fact that the US government found the company Baker Hughes guilty of bribing Kazakhstani bureaucrats in order to secure a profitable contract to participate in the development of the Karachaganak Oil and Gas Condensate Field.

On June 15, 2007, the World Bank’s Department of Institutional Integrity confirmed receipt of the appeal and stated it would investigate the claims.

The organizations below signed the appeal and request that rights-protecting bodies of the Republic of Kazakhstan join the investigation undertaken in the US by stopping the guilty parties from the Kazakhstani side.

This corruption scandal is destroying the image of the republic on the international level and is decreasing the investment attractiveness of the country in the eyes of foreign investors.


To:
Department of Institutional Integrity

The World Bank
Email: investigations_hotline@worldbank.org 

June 13, 2007

To the Director of the Department of Institutional Integrity:

We are writing to you to express our concern about the IFC’s ongoing involvement in the development of the Karachaganak Oil and Gas Condensate Field in light of a recent Foreign Corrupt Practices Act conviction by the US Department of Justice.

On April 26, 2007, the Texas-based oil services company Baker Hughes pled guilty to violating US anti-bribery provisions under the United States Foreign Corrupt Practices Act and agreed to pay a fine of $44 million. Baker Hughes employee, Roy Fearnley, was identified in the case as the individual responsible for paying a bribe to ensure a successful bid for a Baker Hughes contract at Karachaganak.

Baker Hughes was charged with engaging in corrupt practices in a successful attempt to win a tender to operate at the Karachaganak Oil and Gas Condensate Field in western Kazakhstan. The operator at the Karachaganak Field is Karachaganak Petroleum Operating, B.V. (KPO), a consortium of international oil companies comprising British Gas, ENI/Agip, Chevron and Lukoil. Lukoil received $150 million in financing from the International Finance Corporation in 2002 to support operations at Karachaganak.

The facts of the case are outlined below, and taken from the SEC’s website (http://sec.gov/litigation/litreleases/2007/lr20094.htm).

“The SEC’s complaint alleges that Baker Hughes paid approximately $5.2 million to two agents while knowing that some or all of the money was intended to bribe government officials, specifically officials of State-owned companies, in Kazakhstan. The complaint alleges that one agent was hired in September 2000 on the understanding that Kazakhoil, Kazakhstan’s national oil company at that time, had demanded that the agent be hired to influence senior level employees of Kazakhoil to approve the award of business to the company. Baker Hughes retained the agent principally at the urging of Fearnley. According to the complaint, Fearnley told his bosses that the «agent for Kazakhoil» told him that unless the agent was retained, Baker Hughes could «say goodbye to this and future business.» Baker Hughes engaged the agent and was awarded an oil services contract in the Karachaganak oil field in Kazakhstan that generated more than $219 million in gross revenues from 2001 through 2006. Baker Hughes, the complaint alleges, paid the agent $4.1 million to its bank account in London but received no identifiable services from the agent.”

According to court documents (Exhibit 99.2: http://sec.edgar-online.com/2007/05/01/0000950134-07-009594/Section35.asp), “In or about early October 2000, officials of KPO notified BHSI and Baker Hughes that the Baker Hughes tender was successful and the Karachaganak contract was awarded to Baker Hughes. The Integrated Services Contract between KPO and BHSI became effective on or about October 23, 2000. Thereafter, Baker Hughes and operating divisions Baker Atlas, Baker Oil Tools, and INTEQ, through Baker Hughes’s subsidiary BHSI, performed services pursuant to the contract with KPO.” Baker Hughes employee Roy Fearnley, was charged with “violating and aiding and abetting violations of the FCPA” by the SEC (http://sec.gov/litigation/litreleases/2007/lr20094.htm).

As a party to this agreement, Karachaganak Petroleum Operating, B.V. was involved in an illegal contract with Baker Hughes at the time that consortium member, Lukoil Overseas Operating, applied for and received financing from the International Finance Corporation.

The Baker Hughes’ corruption conviction appears to violate the following INT guidelines: bid manipulation, coercive practices, fraudulent bids, fraud in contract performance, bribery or acceptance of gratuities, abuse of authority, and misuse of Bank Group funds.

In particular, in addition to merely being a subcontractor to KPO—enough reason to warrant investigation—because Baker Hughes is a provider of oil service products, the question of whether Bank funds were directly used to pay Baker Hughes for their activity as contractors at Karachaganak must be thoroughly investigated.

The IFC-funded development of the Karachaganak Field has been severely detrimental to the health and safety of local populations living near the field, in particular to the residents of the village of Berezovka, which is located five kilometers from the field. Environmental degradation threatens the community, air pollution has caused serious health problems within the community, and the villagers have concluded that their only option is to seek compensation and relocation to a safe and healthy location. Detailed information on the devastating impacts of the Karachaganak operations is available at http://www.crudeaccountability.org/eng/campaigns/karachaganak/karachaganak.htm.

Two separate complaints about the IFC’s financing at Karachaganak have been filed with the Office of Compliance, Advisor, Ombudsman at the International Finance Corporation. The first complaint, which was submitted in 2004, has been transferred from the ombudsman’s function to compliance following an extensive investigation by the CAO’s office, which resulted in a report that was published in April 2005. The second complaint, which was filed in April 2007, has been accepted by the CAO and is in the initial phases of investigation.

Concerns about corruption at Karachaganak have been present since the onset of the project, but difficult to prove. The Baker Hughes case demonstrates to the local population what they have known all along: the project is not transparent or accountable to the public.

Therefore, we, the undersigned organizations, urge the INT to investigate the extent to which corruption that occurred at Karachaganak may extend beyond that which was investigated by the US Securities and Exchange Commission including, but not limited to, corruption that may have occurred in the establishment of the project’s Sanitary Protection Zone. We also request that the IFC withdraw its loan to KPO, cease any further engagement with the consortium and refrain from any future financing of the Karachaganak Oil and Gas Condensate Field. Additionally, we urge the INT to place Baker Hughes, Roy Fearnley, Kazakhoil and each of the companies of the Karachaganak Petroleum Operating, B.V. consortium on the list of debarred firms and individuals. Finally, we urge the IFC to cease all financing to the oil and gas sector in Kazakhstan because of the involvement of the Kazakhstani state oil company, Kazakhoil, in the Baker Hughes case.
 
Thank you for your attention to this matter, and we look forward to hearing from you soon.

Sincerely,

Kate Watters
Executive Director, Crude Accountability
kate@crudeaccountability.org

Sergey Solyanik
Co-Chair, Ecological Society Green Salvation

Svetlana Anosova
Director, Berezovka Initiative Group
sanosova@mail.ru
 
Evgeniy Zhovtis
Director, The Kazakhstan International Bureau for Human Rights and Rule of Law
zhovtis@omaz.almaty.kz

Details:  AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

Complaint to Compliance Advisor/Ombudsman International Finance Corporation

Translated by CAO
Complaint

To: Compliance Advisor/Ombudsman 
International Finance Corporation 
2121 Pennsylvania Avenue, NW 
Washington, DC 20433 USA 
Fax: 1 202 522 7400 
Email: cao-compliance@ifc.org 

The Green Salvation Ecological Society (ES) is filing a complaint with regard to the implementation of project #9953 by the company Lukoil Overseas Karachaganak B.V., which received credit from the International Finance Corporation to develop the Karachaganak oil and gas condensate field in the Republic of Kazakhstan (RK). The ES is filing the complaint to defend the rights of the residents of the village of Berezovka (Burlinsky District, Western Kazakhstan Oblast, Republic of Kazakhstan), which are being violated during the implementation of the project. The complaint is being filed on the basis of an appeal by the residents of the village of Berezovka to the ES dated 3 April 2007 and a power of attorney dated 8 November 2006, the provisions of the Aarhus Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters (Article 3.9) and the RK Ecological Code (Article 14.1), which are the legal basis of the activities of public organizations defending the rights and interests of the inhabitants of the Republic of Kazakhstan. 

The Green Salvation Ecological Society is a public nonprofit organization (RK Ministry of Justice Registration No. 2032-1910-OO), headquartered at the address: 
ul. Shagabutdinova, 58, Apt. 28 
Almaty, Kazakhstan 050000 phone/fax (3272) 536256 
e-mail: grsalmati@gmail.com
www.greensalvation.org 

Grounds for the complaint. 

1. Name, implementation site and substance of the project 

In 2002 the International Finance Corporation (IFC) granted the company Lukoil Overseas Karachaganak B.V. credit totaling $150 million to implement project #9953, which is aimed at developing the Karachaganak oil and gas condensate field (www.ifc.org). Lukoil Overseas Karachaganak B.V. is a member of the international consortium Karachaganak Petroleum Operating B.V. (KPO), which operates the Karachaganak field (Burlinsky District, Western Kazakhstan Oblast, Republic of Kazakhstan). 

2. Participant in the project: The International Finance Corporation. 

3. Project sponsor: Lukoil Overseas Karachaganak B.V. 

4. The interests of Berezovka’s residents are affected by the following socio-ecological consequences of the project’s implementation: 

The village of Berezovka is situated in proximity to the Karachaganak oil and gas condensate field, which is distinguished by a high hydrogen sulfide content in the natural gas of 4 to 4.3 percent (Report by the CAO ombudsman, 19.04.2005, p. 5). Under national law the field is a hazard class 1 enterprise and has been added by the RK Ministry of Environmental Protection to the list of especially hazardous facilities (Procedure for Distribution of Powers Between the Republic of Kazakhstan Ministry of Environmental Protection and Oblast (Municipal) Territorial Environmental Protection Bureaus With Regard to the Ecological Experts’ Review, No. 134-p, dated 11 June 2003). 

After KPO began active development of the field the ecological situation in Berezovka rapidly began to deteriorate, which is having a deleterious impact on people’s health and welfare. Since Berezovka was part of the field’s five-kilometer sanitary-protection zone (SPZ), pursuant to the sanitary guidelines and regulations SNP No.1.01.001-94 (Appendix 1, the section “ The Extraction and Exploration of Ores and Nonmetalliferous Minerals,” Class 1 “A Sanitary-Protection Zone of At Least 1,000 m,” paragraph 3, note), according to Republic of Kazakhstan law the residents of the village should have been resettled in a safe location, a fact that was repeatedly pointed out by state agencies (Letters No. 02-05-09/1639 dated 29.05.2002 and No. 2-2-2-12/300-2 dated 04.03.2005). In 2003, however, the RK Chief Sanitary Officer reduced the SPZ from five to three kilometers on the grounds that KPO had “introduced advanced technology in the field and had partially revised the operating procedure itself” (Letters No. 2-2-1-35/k/E-16 dated 21.05.2005 and No. 07-21-8056 dated 01.09.2006). The reduction of the SPZ was carried out without an environmental impact assessment and a state ecological experts’ review, without providing information to the local residents and without their participation in the decision-making process, and their opinion was not taken into account (Letter No. 3-2-2-12/2 dated 25.01.2005). This is a violation of the provisions of the Aarhus Convention (Article 6) and the 1997 RK Law on Ecological Experts’ Reviews (Articles 13, 14, 15.1, 16 and 36). As a result the village of Berezovka found itself outside the newly approved SPZ. For five years the residents of Berezovka have unsuccessfully tried to protect their rights to live in a healthy environment, feeling the effects of toxic waste from the field on a daily basis. Repeated requests by the residents that the authorities and KPO resolve the issue of relocation have not produced any results. For more detail, see the article “An Oil Democracy, or the Story of Berezovka” (Green Salvation Herald 2006, pp.82-95). 

In 2006 additional evidence was obtained regarding the illegality of the reduction of the SPZ, an increase in the amount of emissions into the atmosphere from the field and a violation by KPO of a whole host of requirements in Republic of Kazakhstan environmental protection law. By expanding production and introducing new technologies, KPO continues to violate the provisions of international conventions and RK law, increasing the amount of environmental pollution and creating a hazard to people’s health and safety. We bring new facts to your attention. Specifically: 
    
The RK Prosecutor General ruled that the finding by the RK Chief Sanitary Officer to reduce the SPZ around the Karachaganak field was illegal and issued a directive to rescind the finding. As a result, the RK Ministry of Public Health suspended the aforementioned finding and adopted a decision to establish a commission to conduct studies of the air in communities and to justify the size of the SPZ (Letter No. 7-21-06 dated 30.05.2006). 

— The Public Health Ministry commission determined that “KPO B.V. sharply increased the emission of pollutants into the air in 2004-2005 over 2002-2003.” It also noted that “there have been complaints from the public who live in communities adjacent to the field about a gas odor, uncomfortable living conditions and health anomalies.” It acknowledged that the introduction by KPO of new technologies entails “risks of emergencies” (Letter No. 07-21-6887 dated 08.08.2006). 

— The RK Ministry of Environmental Protection and the Western Kazakhstan Oblast territorial environmental protection bureau acknowledged that from 2002 through 2006 the plans related to the introduction of new technologies by KPO were not submitted for ecological experts’ reviews (Letters No.03-02-01-10/8182 dated 05.10.2006 and No. 2681 dated 27.10.2006). That is, as in the case of the reduction of the SPZ, the introduction of new technologies by KPO was carried out without an environmental impact assessment and a state ecological experts’ review, without providing information to the local residents and without their participation in the decision-making process, and their opinion was not taken into account. This is a violation of the provisions of the Aarhus Convention (Article 6) and the 1997 RK Law on Ecological Experts’ Reviews (Articles 13, 14, 15.1, 16 and 36). 

— At the end of 2006 the Kazakh Environmental Protection Society (KEPS), in accordance with RK law, conducted a public ecological experts’ review of the design and regulatory documents of KPO’s activities with regard to environmental protection. In particular, the experts’ report cites the following violations in the activities of KPO: 

“Violations were uncovered in the revision of the SPZ dimensions from the regulatory 5,000 m to 1,500 m and the current 3,000 m (KEPS Report, 2006, p. 29). 

“The company is violating the provisions of Article 20 of the RK Law on Environmental Protection of 15 July 1997, No. 160-I (with later amendments and revisions), which requires resource users ‘to comply with the prescribed ecological regulations and ecological requirements with regard to economic and other activities.’ Actual emissions of pollutants into the atmosphere by the company in the zone where the KOGCF is situated exceeded the ecological guideline in 2004 by 331 percent and in 2005 by 282 percent. Actual discharges by the company exceeded authorized amounts in 2004 by 267 percent and in 2005 by 540 percent. Actual amounts of waste disposal by the company exceeded authorized amounts in 2004 by 580 percent and in 2005 by 1600 percent” (KEPS Report, 2006, p. 28). 

“A discrepancy was found between actual atmospheric monitoring data in the field and the baseline pollution of the atmosphere. In the vast majority of cases the baseline concentrations determined for the KOGCF area by RGP Kazgidromet [Kazakhstan Hydrometeorological Service, a republic state enterprise] of the RK Ministry of Environmental Protection for all parameters and over many years of observation turn out to be higher than on the SPZ boundary, which leads to the absurd conclusion that the production operations of one of the largest companies in the country’s oil and gas sector have a positive impact on the environment” (KEPS Report, pp. 29-30). KEPS thereby casts doubt on the reliability of the data from the operational monitoring of KPO. 

“In violation of regulations (GOST 17.2.3.01-86, RD 52.04.186-89) the company discontinued flare observations in the KOGCF, while in 2004 alone 225.2 million cu.m. of gas was burned and 56,600 tons of pollutants were released into the atmosphere – 3.3 times more than the prescribed ecological guideline” (KEPS Report, 2006, p. 30); 

“In violation of Article 27 of the RK Law on the Protection of the Air of 11 March 2002, No. 302-II (with later amendments and revisions) the company is not taking the proper measures to prevent and eliminate accidental emissions, which in 2003-2005 led to significant above-guideline burning of casinghead gas and emissions of pollutants” (KEPS Report, 2006, p. 30). 

“In violation of Article 9 of the RK Law on the Protection of the Air of 11 March 2002, No. 302-II (with later amendments and revisions) the company’s air-protection programs were not submitted for discussion by citizens and public organizations in order to take account of their suggestions in the planning and implementation of measures to improve air quality” (KEPS Report, 2006, p. 30). 

“The draft guidelines on maximum permissible emissions for the KOGCF for 2006-2008 were prepared in violation of regulations … with modeling that assumed wind direction in at all times from the communities situated at various distances along the KOGCF perimeter toward the center (!) of the field, which improperly lowers possible concentrations of pollutants” (KEPS Report, 2006, pp. 28-29). 

“Environmental-protection measures have not been implemented for a number of years (KEPS Report, 2006, p. 30). 

“The company is violating its own statements and declarations regarding environmental protection” and “has disseminated questionable information to the effect that more than US $100 million has been invested in environmental-protection measures in the past three years” (KEPS Report, 2006, p. 31). 

For more detail see the report by the public ecological panel of experts. 

Based on the results of the public ecological experts’ review, the RK President has issued an order to the country’s relevant ministries and agencies to conduct an investigation and punish the individuals responsible for the violation of environmental protection law (Directive of the RK President No. 1078 of 27.02.2007). 

The foregoing facts attest that the KPO company has been, systematically and for a prolonged period of time, violating a whole host of provisions of international conventions and Republic of Kazakhstan environmental protection law, endangering the lives and health of local residents, creating through its activities a risk of emergencies and violating citizens’ rights to a favorable environment. This validates the legitimacy of the demands by the residents of the village of Berezovka that they be relocated out of the zone that is hazardous to health and life. 

5. To resolve this issues, the residents of Berezovka have taken the following actions: 

Since 2002 the residents of Berezovka have been trying unsuccessfully to protect their rights to live in a healthy environment. The details of appeals and actions by the residents of Berezovka are in the article “An Oil Democracy, or the Story of Berezovka” (Green Salvation Herald 2006, pp.82-95). 

At the national level, however, the residents of Berezovka have been unable to achieve a positive resolution of the relocation issue due to the inconsistent actions of the country’s state agencies, which on the one hand recognize the Karachaganak field as an especially hazardous facility but on the other hand reduce the size of the SPZ around it. Whereas in 2002 the RK Ministry of Environmental Protection was in favor of resettling the residents of Berezovka, after the reduction of the SPZ it no longer saw any grounds for this (Letters No. 02-05-09/1639 of 29.05.2002 and No. 2-2-1-35/k/E-16 of 21.05.2005). In 2006 the ministry again changed its attitude toward the problem and, as in 2002, endorsed the idea of relocation (www.kz-today.kz, 17.05.2006). This inconsistency stems from the fact that officials do not follow the letter of the law but orient themselves by the domestic political atmosphere and the establishment’s attitude toward foreign companies. In the current situation KPO treats the residents of Berezovka in the manner that the authorities “allow.” The company easily ignores the country’s laws and international conventions, covering itself with its “special” relationship with the Kazakhstan leadership. The rights of the residents of Berezovka continue to be violated. Therefore the residents have decided to appeal to an international, independent body to solve the problem. 

In September 2004 the residents of Berezovka filed a complaint with the IFC office of the ombudsman (CAO), which raised the problems of KPO’s impact on the health and economic well-being of the residents of Berezovka, as well as the illegality of the reduction of the SPZ. 

The ombudsman responded promptly to the complaint. Meetings were held with the local residents and with the company management. In April 2005 a report on the results of the consideration of the complaint was published. Although the report acknowledged “that KPO is operating in compliance with IFC standards and claims to adhere to international best practices,” the ombudsman cited insufficient transparency in the operations of KPO and, in effect, acknowledged the company’s violation of the right of local residents to have access to information on the results of medical studies and the justification of the revision in the dimensions of the SPZ (Report by the ombudsman CAO, 19.04.2005, pp. 11-12, 19). The 2005 CAO report does not address the main problem – the violation of the rights of Berezovka residents to live in a favorable environment. The propriety of the reduction of the SPZ was not analyzed (Report by the ombudsman CAO, 19.04.2005, pp. 17-19). Subsequent proposals by representatives of the CAO to the residents of Berezovka that they participate in KPO initiatives to cooperate with village soviets and jointly monitor air quality did not meet with understanding or support from the residents of Berezovka, since they failed to resolve the main issue of relocation (Letters from CAO Kate Kopischke dated 26.06.2006 and Meg Taylor dated 29.08.2006). For more detail, see article “An Oil Democracy, or the Story of Berezovka” (Green Salvation Herald 2006, pp.88-90). In August 2006 the ombudsman closed consideration of the complaint and turned it over to the CAO to assess the advisability of conducting an audit (http://www.cao-ombudsman.org/html-english/complaint_karachaganak.htm). Right up to this moment the residents of Berezovka do not know the results of this assessment. 

Therefore, based on the newly discovered circumstances and new violations by KPO of the provisions of international conventions and Republic of Kazakhstan environmental protection law, which were cited above and which confirm the fears of the residents of Berezovka as set forth 

6. In order to solve the problems, the residents of Berezovka have maintained contact with the following individuals at the IFC and KPO: 

Rashad Kaldany, Director, Oil, Gas, Mining and Chemicals Department 
Rachel Kyte, IFC, Director, Environment and Social Development 
Sabina Cosic, IFC 
Rosa Orellana, IFC 
Patricia Miller, IFC 
Assaad J. Jabre, IFC, Vice President, Operations and Acting Executive Vice President 
John Butler, IFC, Karachaganak Project Officer 
Lubomir Varbanov, IFC, Senior Investment Specialist 
Issak Sekeev, Outreach, КРО Paulo Campelli, General Director, KPO Cameron Crawford, Operations Director, KPO Jack Hinton, KIO (КРO) 

7. In order to solve the problems, the residents of Berezovka have maintained contact with the following individuals at the CAO: 

Meg Taylor, CAO 
Henrik Linders, Senior Specialist, Compliance 
Kate Kopischke, Specialist, Ombudsman’s office 
Amar Inamdar, Senior Specialist, Ombudsman 
Jacques Roussellier, Ombudsman’s office 

8. In implementing the project, KPO has violated the following provisions of IFC policy and operating standards: 

The International Finance Corporation Procedure for Environmental and Social Review of Projects, December 1998 

11. IFC does not finance project activities that would contravene country obligations under relevant international environmental treaties and agreements, as identified during the EA. 

The International Finance Corporation Operational Policies: Environmental Assessment. OP 4.01, October 1998 

Adherence to international law: 

3. The IFC does not finance project activities that would contravene such country obligations, as identified during the EA. 
Pollution: 

6. The Pollution Prevention and Abatement Handbook describes pollution prevention and abatement measures and emission levels that are normally acceptable to the IFC. The EA report must provide full and detailed justification for the levels and approaches chosen for the particular project or site. 
Public Consultation: 

12. For all Category A and as appropriate for Category B projects during the EA process, the project sponsor consults project-affected groups and local nongovernmental organizations (NGOs) about the project’s environmental aspects and takes their views into account. In addition, the project sponsor consults with such groups throughout project implementation, as necessary to address EA related issues that affect them. 

Disclosure: 

15. For meaningful consultations between the project sponsor and project-affected groups and local NGOs on all Category A and as appropriate for Category B, the project sponsor provides relevant material in a timely manner prior to consultation and in a form and language that are understandable and accessible to the groups being consulted. 

The World Bank Operational Manual Operational Policies, OP 4.00, July 2005 

Operational Principle 2: Assess potential impacts of the proposed project on physical, biological, socio-economic and physical cultural resources, including transboundary and global concerns, and potential impacts on human health and safety. 

Operational Principle 3: Assess the adequacy of the applicable legal and institutional framework, including applicable international environmental agreements, and confirm that they provide that the cooperating government does not finance project activities that would contravene such international obligations. 

By failing to comply with IFC policy and standards, KPO is not only endangering the lives and health of local residents and creating the risk of emergencies, but is also damaging the image of the International Finance Corporation. The IFC, in turn, by financing this project, is in effect turning a blind eye to the many years of violations of the human rights of the residents of Berezovka and undermining public confidence in its own statements, policy and standards. 

9. The residents of Berezovka expect that the following decision will be issued in response to this complaint: 

The International Finance Corporation, together with the KPO company and the Republic of Kazakhstan authorities, will provide assistance in resolving the issue of moving the residents of the village of Berezovka to a safe location. 

Copies of all of the letters, materials and RK legal statutes cited in the complaint, including copies of the appeal by the residents of the village of Berezovka dated 3 April 2007 and the power of attorney dated 8 November 2006, are enclosed. 

At the request of the residents of the village of Berezovka, these materials are being sent to the representative office of the European Union in the Republic of Kazakhstan in connection 
with the participation of European companies in the consortium Karachaganak Petroleum Operating B.V. 



Date: 11 April 2007

Signatures:

Sergei Kuratov,
chairman of the Green Salvation ES

Svetlana Katorcha,
attorney for the Green Salvation ES

Sergei Solyanik
vice-chairman of the Green Salvation ES
responsible for the complaint to the CAO

Green Salvation Ecological Society
ul. Shagabutdinova, 58, Apt. 28
Almaty, Kazakhstan 050000
phone/fax (3272) 536256

Details:  AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

Since 2001, the residents of the village of Berezovka, which was formerly a thriving state farm (Burlinsky District, West Kazakhstan Oblast), have been standing up for their right to live in a healthy environment. They have found themselves hostage to transnational corporations and the natural resource exploitation politics of the government of the Republic of Kazakhstan.

Background

002The village of Berezovka is located adjacent to one of the largest oil and gas condensate fields in the world—Karachaganak. It was opened in 1979, but active development of the field began relatively recently. In 1998, a Production Sharing Agreement was signed between the Republic of Kazakhstan and well-known oil extraction companies ENI (Italy), British Gas (UK), Chevron (USA) and LUKOIL (Russia). The resulting consortium “Karachaganak Petroleum Operating B.V. (KPO)” obtained the right to extract the oil and gas (www.kpo.kz, 19 June 2006).

A distinctive feature of the field is the high concentration of hydrogen sulfide in the natural gas—from 4% to 4.3% (CAO Assessment Report, 2005, p. 5). Hydrogen sulfide is a strong nerve toxin that causes the cessation of breathing, leading to death (Reference book, 1977, pp. 50-54). Therefore, the Karachaganak Field is an enterprise of unparalleled danger and the Ministry of Environmental Protection (MEP) has listed it as a particularly dangerous entity (Procedures…, 2003).

As Berezovka lies within the enterprise’s five-kilometer Sanitary Protection Zone (SPZ), in accordance with the legislation of the Republic of Kazakhstan, the village residents should have been relocated to a safe location (Letter No. 2-2-2-12/300-2).

Once the active development of the Karachaganak Field began, and in spite of KPO’s use of new technology, the environmental situation in Berezovka rapidly began to decline. This was immediately noted by state environmental protection bodies (Informational Ecological Bulletin, 1998, pp. 30-37). Medical studies conducted by local doctors and central scientific research institutes proved that the unfavorable environmental situation is having a disastrous effect on people’s health (Burlinsky Vesti, 22 June 2002; Proceedings…, 2002).

Originally, the Oblast Environmental Protection Administration was concerned about the fact that the villages of Berezovka and Tungush were located in the enterprise’s SPZ. An accident at the Field could threaten the lives of thousands of people (Proceedings…, 2002). The Ministry supported this opinion by the Oblast Administration. It “developed a project” in which it is stated that the local authorities and the company should “resolve the issue of relocating the population of the villages from the Sanitary Protection Zone”. Moreover, the Ministry raised the question of increasing the size of the SPZ (Letter No. 02-05-09/1639; Burlinsky Vesti, 22 June 2002).

However, despite the unanimity of the environmental protection departments and the public, the relocation of Tungush and Berezovka residents did not begin in 2002. Local authorities took an indecisive position, and the consortium obviously did not rush to ensure people’s safety (Burlinsky Vesti, 22 June 2002). Inquiries by members of Parliament to the Prime Minister were also futile, in spite of the fact that the Prime Minister’s predecessor had stated that the question of relocation was being resolved (Deputy Inquiry…, 24 April 2002).

The course of events

004In accordance with the Constitution of the Republic of Kazakhstan, the individual and his/her rights and freedoms are of the highest value to our government (Article 1). The government aims to protect the environment, ensuring that it is favorable for life and human health (Article 31). Government employees must guard the interests of the country’s citizens and defend their rights and freedoms (Law “On Government Service”, 1999). These provisions are also guaranteed in other legislative acts.

However, government bodies are far from fulfilling their obligations on a regular basis.

In December 2002, ten months after the Ministry of Public Health established Karachaganak’s five-kilometer Sanitary Protection Zone, bureaucrats “by means of qualifying developments, proved the possibility of reducing the normative dimensions of the zone to 1500 meters” (Conclusion…, 24 December 2002). That is a reduction to less than a third of the original size! Such a proposal evidently led to outrage on the part of some bureaucrats. Debates ensued, resulting in the 2003 decision to establish a three-kilometer SPZ (Letter No. 2-2-1-35/k/E-16). As such, the village of Berezovka found itself outside the newly established Sanitary Protection Zone.

The bureaucrats were not the least bit embarrassed that the reduction of Karachaganak’s SPZ was implemented in violation of the statutes of the Aarhus Convention and the requirements of Kazakhstan’s environmental protection legislation. A state environmental assessment was not conducted, the opinion of the residents was not taken into consideration, and the residents were not allowed to participate in the decision-making process (Letter No. 3-2-2-12/2). The government bodies did not even attempt to justify their illegal actions. Instead, they announced that KPO was introducing new environmental protection technology and that this was sufficient basis for reducing the SPZ (Mikhailov, 2005; Gubenko, 2005; Letter No. 07-21-8056).

Yet perhaps there is another reason? The relocation of a few thousand people requires significant expense, while the reduction of the SPZ spares both the authorities and the consortium from additional costs.

Nevertheless, the residents of Tungush were relocated as the village remained within the boundaries of the new SPZ (Joint Committee…, 2003). They were moved into an empty high-rise apartment building on the outskirts of Uralsk, and not to a village with 21st century standards, as was earlier promised by the authorities and the consortium (Sokovnin, 2003). This caused great upheaval for many. People were torn from the land; their whole way of life changed. By way of compensation, they received a meager sum. Later, the District Court recognized this violation of their rights, but it was only after two years time that people received additional funds from the consortium (Akhmedyarov, 2005).

After the reduction of the SPZ, the position of the bureaucrats changed. Earlier they had advocated for the relocation of Berezovka’s residents. At this point in time, they began to make assurances that the emissions of polluted matter from Karachaganak did not exceed the Emission Limits, that the level of illness in the village is the lowest in the region and these illnesses are not related to the development of the Field. Therefore, there is no basis for concern or relocation (Letter No. KE-118/2; Letter No. 1018). As if by magic, when the SPZ was reduced, the problems in the village disappeared.

The residents of Berezovka continued to appeal to the government, Parliament and the President of the country. The responses consisted of familiar phrases: the village is located outside the SPZ boundaries, monitoring results attest to the improvement of environmental conditions, etc. (Letter No. 2-2-1-42/1146; Letter No. 07-21-7830; Letter No. KE-50/1). Even the Republic of Kazakhstan’s Human Rights Representative did not uncover any violations of the rights of Berezovka residents (Letter No. 669/03-1959).

In this increasingly complicated situation, people tried to conduct independent monitoring of environmental conditions and to defend their legal rights, as many did not trust the authorities. One singular form of protest against the bureaucrats was the refusal by 225 Berezovka residents to participate in a comprehensive medical examination in 2004 (Menzhanova, 2006).

The authorities obviously did not appreciate this lack of cooperation and persistent reluctance to come to a compromise. They began to put pressure on activists from the local Initiative Group. The police and district Akimat tried to disrupt a seminar on protecting human rights, organized by nongovernmental organizations. This nearly led to conflict between some of the residents and the police, who openly hindered them from giving blood for independent analysis (Akhmedyarov, 2004; Appeal, 2005).

However, at the end of 2005 the situation changed again. In November 2005, the Uralsk City Public Prosecutor for Environmental Protection and the Public Prosecutor of Burlinsky Raion tested KPO’s compliance with sanitary/epidemiological requirements. They came to the conclusion that there was no basis for the reduction of the SPZ and that, as in the past, the residents of Berezovka were at risk (Kalashnikova, 2005). These results were given to the Public Prosecutor of West Kazakhstan Oblast, who sent them to the General Public Prosecutor. On March 27, 2006, the General Public Prosecutor objected to the conclusion issued by the Senior Sanitary Doctor, which served as the basis for the reduction of the SPZ, recognizing the conclusion as illegal (Letter No. 7-21-06).

In April 2006, the Ministry of Public Health suspended the conclusion and decided to create a commission to research the air in population centers and the basis for the size of the SPZ. In particular, the commission established that atmospheric emissions of polluted matter were significantly greater in 2004-05 than in 2002! The Ministry gave the following explanation for this phenomenon: “The increase in the volume of emissions is connected to the introduction of new technology and exploratory adjustment work on the technological lines” of KPO. However, the Ministry did not find substantial reasons for the change in the size of the SPZ, though it acknowledged that the introduction of new technology is connected to “risks of emergency situations”. Thus, the Ministry proposed that an independent assessment be conducted to determine the “definitive basis for the size of the Sanitary Protection Zone” (Letter No. 07-21-6887).

We are not calling into question the objectivity of the conclusions made by the Ministry of Public Health’s commission. Yet it is not clear why the Ministry’s specialists did not verify the legality of the established SPZ boundaries, but instead conducted another atmospheric study. They should know that the minimum SPZ boundaries for gas extraction enterprises with a high concentration of hydrogen sulfide are already established by “Sanitary Norms of Planning Industrial Enterprises” No.1.01.001-94 at no less than 5000 meters.

At the same time, the Ministry of Environmental Protection changed its position with regard to this problem. As in 2002, it supported the idea of relocation (www.kz-today.kz, 17 May 2006). In contrast to the Ministry of Environmental Protection, the Oblast Environmental Protection Administration sided with the consortium, asserting that there is no hazardous pollution in Berezovka (Akhmedyarov, 2006).

In this case, members of Parliament did not rise to the occasion. Only one Deputy from the Mazhilis continues to actively support the residents in the resolution of their questions (Zhamalov, 2006).

KPO’s position on relocation

014In one way or another, all of the companies that comprise KPO make statements about the necessity of observing human rights (BG Group, 13 June 2006). As advocates of responsible business, they are obliged to conduct their activities with respect to the rights of local communities and in a manner that protects the environment (ENI, 13 June 2006). For instance, in early 2006, Chevron published a document in which it stated its intention to conduct operations in accordance with the Universal Declaration of Human Rights (Chevron, 13 June 2006). The Russian company LUKOIL considers one of its priorities to protect the health of populations living in the areas in which it operates, as well as to protect a healthy natural environment (LUKOIL’s…, 14 June 2006).

However, the companies’ grand statements are often inconsistent with their actions. The companies violate not only their own principles, but also the provisions of national legislation and international agreements.

Officially, KPO is not against the relocation of the residents from the Sanitary Protection Zone. However, after the reduction of the SPZ’s boundaries, the village of Berezovka found itself outside its boundaries, therefore creating the appearance that the consortium is not violating any laws. Yet it is worth remembering that one of the official reasons for the reduction of the SPZ was the introduction of “technology to reduce air pollution” at the Field and beyond. Specialists from the authorized government bodies did not verify the effectiveness of this technology. Yet this work was conducted, under commission by KPO, by the public company “Kompaniya Kenesary”, the public company “EcoProekt”, the public company “Ekogidroanalitik”, the public company Informational/Production Center “Kazgidromet”, and the public company “AktyubNIGRI” (Letter No. 07-21-8056). This did not prevent government bodies from reducing the size of the SPZ in 2003 in violation of “Sanitary Norms of Planning Industrial Enterprises” No.1.01.001-94.

Yet whether or not the air pollution around the Field was in fact reduced remains an unanswered question as monitoring is conducted in violation of Articles 24 and 25 of the law “On Environmental Protection”. According to the requirements of these articles, government monitoring of the environment, including on the territory of population centers, must be conducted by authorized bodies in the field of environmental protection.

In 1998, due to a lack of resources, the government stations that monitored “Kazgidromet” were closed in West Kazakhstan Oblast. At the same time, in violation of Kazakhstan’s environmental legislation, KPO and a number of other major natural resource users began to finance “Kazgidromet’s” services. This calls into question the objectivity of the data obtained by “Kazgidromet” (Informational Ecological Bulletin, 1999, p.22; Yeslyamova, 2000).

For its part, aside from conducting industrial monitoring, KPO created air quality observation stations in the ten nearest towns (Letter No. VD/Out/02362). In fact, the “company took upon itself uncharacteristic functions—monitoring environmental pollution in the population points located beyond the boundaries of the contract territory and the established Sanitary Protection Zone” (Skakov, 2005).

The consortium signed a contract with the private venture “Gidromet Ltd.” to conduct industrial monitoring for KPO, the results of which are provided to government environmental protection bodies on a regular basis (Burlinsky Vesti, 28 December 2004; Zhusupkaliev, 2006). At present, KPO and Tengizchevroil are the primary customers of “Gidromet Ltd.”

However, the General Public Prosecutor recognized even in 2002 that a violation had occurred, given that data from private enterprises that conducted industrial monitoring were used for the preparation of “government monitoring conclusions” (Atyrau City Court Decision, 2000).

Evidently, such remarkable “flexibility” in monitoring enabled KPO’s leadership to announce that the concentration of harmful matter in the air around the Karachaganak Field is a result of the local population’s use of heating stoves (Sokovnin, 2003).

KPO’s introduction of new technology, without having obtained a positive government environmental assessment, is yet another gross violation of Kazakhstan’s environmental protection legislation (Letter No. 3-2-2-12/2). Yet this is precisely how the SPZ was reduced in 2003. And this led to an increase in pollutant emissions into the air in 2003-2005 (Letter No. 03-01-01-10/8182). By early 2005, emissions had increased more than twice the 2002 level (Letter No. 07-21-6887).

Violations also took place of Articles 15 and 36 of the law “On Environmental Assessment”, which concern the necessity of taking public opinion into consideration during decision-making processes. Moreover, there were violations of the provisions of six articles to the Aarhus Convention on public participation in decision-making processes.

It is incomprehensible how this is reconciled with the socially responsible business behavior of which KPO proclaims itself a supporter!

It is not surprising that to the question of what responsibility the company has to the residents of Berezovka in the event of an accident at the Field, a representative of the nongovernmental organization Crude Accountability received the following answer from KPO’s leadership: “Only moral [responsibility]…” (Akhmedyarov, 2004).

The IFC

006It is worth remembering still another player that has substantial influence on the course of events in the village of Berezovka. This player is the International Finance Corporation (IFC), which is part of the World Bank Group. Its mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. The IFC acknowledges that the observation of human rights is becoming an increasingly important aspect of corporate responsibility (IFC, 2006, p.2).

Based on these principles, in 1999 the IFC created the Office of the Compliance Advisor/Ombudsman (CAO) to review complaints about projects financed by the IFC. For instance, in 2002 the IFC gave LUKOIL a $150 million loan for development of the Karachaganak Field. The CAO is independent from the IFC management and reports directly to the President of the World Bank (www.cao-ombudsman.org), which allows it to provide an objective review of complaints.

Having learned of this office, the residents of Berezovka who had been unsuccessfully trying to defend their rights for several years, decided in September 2004 to appeal to the Office of the Compliance Advisor/Ombudsman with a complaint. Several problems caused by the development of the Field were raised in the complaint: the pollution of the environment, lower quality of drinking water, declining health of the population and the deterioration of the population’s material well-being. Nevertheless, as a result of the unfounded reduction of the SPZ, the village residents were not relocated outside of this dangerous zone.

The CAO promptly reacted to the complaint, and in December of that year its representatives visited Berezovka. They met with local residents and the consortium’s leadership. In April 2005, a report was published with the results of the complaint review.

According to the Assessment Report, KPO is operating in compliance with the IFC’s standards. The environmental problems that were brought to light during the review are explained by the “legacy of poor environmental standards and practices from previous field owners” (CAO Assessment Report, 2005, p. 9). The Assessment Report also stresses that due to a lack of quality information, it is not possible to determine how the oil extraction is impacting the population’s health. Attempts to more carefully examine this issue were unsuccessful. The consortium did not provide the CAO with all of the materials from the studies conducted by the Kenesary Centre of Preventative Medicine (Almaty). In 2001, KPO commissioned the Centre to study the health status of the population living in the immediate proximity of the field.

The CAO pointed out KPO’s insufficient transparency concerning its activities and, for all intents and purposes, acknowledged the consortium’s violation of the right of local residents of access to information. The general public was not made familiar with the results of the medical studies or with the basis for changing the size of the SPZ (CAO Assessment report, 2005, p.11,19). Therefore, the report recommends that KPO conduct regular consultations with the public, provide free access to the results of the studies conducted by the Kenesary Centre, and reconsider the practice of concealing environmental information (CAO Assessment Report, 2005, p. 12).

However, the fundamental problem—the violation of the rights of Berezovka residents to live in a healthy environment—is not raised in the Assessment Report. The legality of the SPZ reduction was not analyzed (CAO Assessment Report, 2005, p. 17). Despite the fact that representatives from the CAO’s office paid attention to the Berezovka residents’ complaint and tried to find a compromise, the IFC has, in fact, risen to the defense of the consortium’s interests.

In February 2006, representatives from the CAO’s office again visited the Karachaganak Field in order to check on the implementation of the Assessment Report’s recommendations. One of the areas under consideration was the progress of the village councils, which were created to provide KPO and the public with a forum through which to discuss problems. They noted KPO’s initiative regarding interaction with the village councils as a positive factor in the interaction between the consortium and local residents (CAO Progress Report, 2006, p. 2). However, the members of the Berezovka Initiative Group reacted coolly to the consortium’s proposals, though they acknowledged that the proposals were a step forward. Many of the residents do not trust the village councils since their members were not elected, but appointed by the local akims. There is also no trust in the initiatives that KPO has begun to implement following the signing of a Memorandum of Understanding with local authorities in August 2005 (CAO Progress Report, 2006, p. 7-8).

Another positive factor noted by the CAO representatives is KPO’s proposal to conduct air quality monitoring with the participation of all interested parties (CAO Progress Report, 2006, p. 3). The Berezovka residents also declined to participate in this program, despite the insistent recommendations of the representatives from the CAO’s office (Letter, 26 June 2006).

First of all, there are doubts as to the legal status of this initiative. There are no provisions in the legislation of Kazakhstan regarding independent monitoring. Organizations that conduct monitoring must have official permission; otherwise government bodies may not pay attention to their results.

Secondly, KPO is trying to avoid a legal resolution of the problem, all the while trying to maintain its image as a law-abiding enterprise, which is increasingly expensive to do. At the same time, it is as if the consortium has not noticed that the illegality of the SPZ reduction has been repeatedly acknowledged by government representatives. One gets the impression that the policy of keeping quiet is at the hands of both the consortium and the IFC. In addition to Berezovka, there are other villages near the Field; therefore it is disadvantageous for KPO to create precedent in terms of relocation.

Thirdly, all of the proposed measures create the semblance of resolving problems, while in fact indefinitely delaying the relocation of the villagers from this dangerous zone.

Press coverage of the relocation question

This account would not be complete without mention of the position of the journalists who are covering the events in Berezovka. They are divided into two groups. The majority are those who react sympathetically to changes in official opinion. Those who try to be objective, unfortunately, are in the minority.

On January 11, 2002, there was an article in one of the central newspapers, “Kazakhstanskaya Pravda”, about the consortium’s violation of the country’s environmental protection legislation, and the need to relocate the residents of Berezovka and Tungush (Korina, 2002). Following the reduction of the SPZ, Berezovka residents began to actively defend their rights, and they were supported by several nongovernmental organizations. This was not expected by the authorities. In January 2005, the very same newspaper began to regard the legal demands of the Berezovka residents as a “suitcase mentality” or a desire to get rich at the expense of the government and consortium. The newspaper stated that the Berezovka residents had been falsely roused by “guests” from “countries near and far” (Korina, 2005). The very same author wrote both articles!

The signals from above were heard, and the persecution of Berezovka residents and the public organizations that support them was taken up by a number of journalists.

The “vigilant” journalists wrote about everything other than the violation of human rights in Berezovka! The disgraceful “Berezovka idyll” — local and foreign public organizations — aim to “excite the public, to influence the public against its own government.” Therefore, “the environmental problem of the residents of Berezovka threatens to develop into a major political conflict”. Today they “dwell in small villages. Tomorrow the line might reach to the big cities where orange or rose revolutions will occur” (Kenzhegalieva, 2006).

So that the average citizen would know who “undermines” the foundations of the sovereign government, the names and passport information of foreign citizens representing the public organizations were published (Burlinsky Vesti, 28 December 2004).

The residents and NGOs were accused of trying “to spoil KPO’s image, to provoke conflict between the government and foreign investors, to introduce dissention into their constructive, partnership relations”. The result is a “puppet theater in which the strings are being pulled somewhere offstage, and yet a movement is being created in Berezovka” (Zhusupkaliev, 2006).

There is no doubt that the “sham” of local residents and the NGOs is well paid. “The Initiative Group has the support of wealthy sponsors and does not take money into consideration” (Alekseev, 2006).

The “vigilant” journalists have written about everything other than the violations of the rights of Berezovka residents due to illegal acts by the authorities and KPO.

It is noteworthy that the majority of the aforementioned articles have been published on KPO’s website (www.kpo.kz, 25 May 2006).

Fortunately, not everyone is under the reigns of the authorities and the consortium. It is worth noting the position of the journalists from the local newspaper “Uralskaya Nedelya”, who strive to objectively and consistently cover the situation in Berezovka.

It is also worth mentioning the authorities’ relationship foreign journalists. For instance, the well-known BBC television station commissioned a film about the confrontation between the Berezovka residents and the consortium. The film was shown in Europe on the BBC World Channel, but in Kazakhstan only those who participated in the filming have any knowledge of its existence.

Democratic weeds

Five years have passed since the Berezovka residents began the struggle for their rights. Unfortunately, during this time nothing has changed for the better. Every day people feel the “toxic breathing” of Karachaganak, the authorities pretend that nothing is happening, and the consortium cares only about its profits.

This is not surprising. The situation in Berezovka reflects the typical problems faced by numerous Kazakhstanis living close to major extraction enterprises belonging to domestic and foreign companies. The picture is one and the same in Balkhash, Temirtau, Ust-Kamenogorsk, Ridder and other cities.

The authorized ministries and departments do not display particular zeal in fulfilling their official obligations. They do not follow the letter of the law, but are oriented instead toward internal political conditions and relationships of the establishment with foreign companies. Even in those situations in which government bodies act as champions of the law and defend the interests of citizens, there is a lack of trust in their actions. This gives rise to well-founded fears that sincere intentions are being concealed for populist demagogy about human rights and the need to protect nature. In fact, the purpose of these government departments is to apply pressure to the companies in order to obtain additional profit and concessions. This explains the inconsistency in the actions of the government bodies described above.

Foreign companies, backed quietly by the government of Kazakhstan, treat the people of this country as they see fit. If it is possible to ignore the country’s legislation and international conventions, taking refuge in “special” relations with the leadership of Kazakhstan, why not!

Announcements by companies about their adherence to the principles of socially responsible business are increasingly at odds with their actions. Even in those cases in which the companies provide social assistance, it does not change their position. In Berezovka, a series of measures — gasification, and capital reconstruction of the village’s water system, school and cultural center — have been undertaken with the money provided annually by KPO as a stipulation in its contract (www.kpo.kz, 7 September 2006). However, Berezovka residents do not feel gratitude towards KPO and the local authorities as the quality of this work has garnered much criticism. The reconstruction of the water line in Berezovka is still not finished. Following the construction of a new dam on the local river, the water has disappeared. The repairs in the village school and cultural center are atrocious (Akhmedyarov, 2006).

The Berezovka residents are developing the impression that this assistance is necessary only in order to demonstrate KPO’s involvement in the resolution of village problems. The consortium is not interested in the fate of the people. Wouldn’t it be better to use these millions of dollars to relocate the residents of Berezovka!?

The loss of human life and the resulting strike at the Mittal Steel enterprises in Temirtau in the fall of 2006 demonstrated that neither “leading businesses” nor “wise authorities” are insured against accidents caused by human error or social upheaval. So who wins as the toxic cloud over Berezovka grows heavier? And what is to be done by people living in a country with a thriving oil democracy?

***

References (in Russian)

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Kalashnikova, L. “They are Poisoning the People.” Uralskaya Nedelya, No. 51, 22 December 2005.
Kenzhegalieva, G. “Americans in Berezovka.” GAZETA.KZ, www.gazeta.kz, 13 March 2006.
Korina, L. “The Field and the Birthplace.” Kazakhstanskaya Pravda, 11 January 2002.
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Letter No. 02-05-09/1639, 29 May 2002, Ministry of Natural Resources and Environmental Protection of the Republic of Kazakhstan.
Letter No. 1018, 29 October 2003, Akim of Burlinsky Raion of Western Kazakhstan Oblast.
Letter No. KE-118/2, 6 November 2003, Authorized Representative of the Akim of Western Kazakhstan Oblast.
Letter No. VD/Out/02362, 22 January 2005, Karachaganak Petroleum Operating, B.V. (KPO).
Letter No. 3-2-2-12/2, 25 January 2005, Ministry of Environmental Protection of the Republic of Kazakhstan.
Letter No. 2-2-2-12/300-2, 4 March 2005, Ministry of Environmental Protection of the Republic of Kazakhstan.
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Letter No. 07-21-7830, 19 March 2005, Ministry of Public Health of the Republic of Kazakhstan.
Letter No. KE-50/1, 20 May 2005, Deputy Akim of Western Kazakhstan Oblast.
Letter No. 2-2-1-35/k/E-16, 21 May 2005, Ministry of Environmental Protection of the Republic of Kazakhstan.
Letter No. 669/03-1959, 7 June 2005, National Center for Human Rights.
Letter No. 7-21-06, 30 May 2006, Public Prosecutor of Western Kazakhstan Oblast.
Letter from 26 June 2006, Office of the Compliance Advisor/Ombudsman (CAO) of the International Financial Corporation and the Multilateral Investment Guarantee Agency.
Letter No. 07-21-6887, 8 August 2006, Ministry of Public Health of the Republic of Kazakhstan.
Letter No. 07-21-8056, 1 September 2006, Ministry of Public Health of the Republic of Kazakhstan.
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Proceedings from the Public Hearing “On the Oblast’s Actual Environmental Problems and Measures to Resolve These Problems in Accordance with the Requirements of Legislation of the Republic of Kazakhstan.” Maslikhat of Burlinsky Raion of Western Kazakhstan Oblast, 13 June 2002.
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Skakov, A. “The Days and Nights of Karachaganak.” Letter from 15 February 2005.
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Zhamalov, A. “Deputy Inquiry.” Burlinsky Vesti, 15 February 2006.
Zhusupkaliev, I. “The Berezovka Triangle.” Priuralye, 28 January 2006.

Newspapers

Burlinsky Vesti
GAZETA.KZ
Kazakhstanskaya Pravda
Nadezhda
Novoe Pokolenie
Panorama
Panorama Karachaganaka
Priuralye
Uralskaya Nedelya

References (in English)
BG Group, Social Human Rights – Indigenous Peoples. www.bg-group.com, 13 June 2006.
Chevron, Human Rights Statement. www.chevron.com, 13 June 2006.
ENI, Corporate Responsibility at Eni: Values and Practices. www.eni.it, 13 June 2006.

Website
Compliance Advisor/Ombudsman (CAO): www.cao-ombudsman.org

Websites (in Russian and English)
Consortium Karachaganak Petroleum Operating B.V.: www.kpo.kz
News & Information Agency Kazakhstan Today: www.kz-today.kz
Sergey Solyanik
the Ecological Society Green Salvation
Almaty, Kazakhstan
12.2006

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Details:  AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

IFC Officially Confirmed That the Complaint Is Eligible for Further Assessment

On April 11, 2007, the Ecological Society “Green Salvation” submitted a complaint to the International Finance Corporation’s (IFC) Compliance Advisor/Ombudsman office. The complaint was filed in defense of the residents of Berezovka village (Burlinsky Raion, Western Kazakhstan Oblast). Their rights are being violated by the company “Lukoil Overseas Karachaganak B.V.”, which received a loan from the IFC for the development of the Karachaganak Oil and Gas Condensate Field. On May 2, 2007, the IFC officially confirmed that the complaint is eligible for further assessment.

Details:  AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA

 

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Svetlana’s Story

004In August 2003, the Ecological Society “Green Salvation” participated in the filming of “Svetlana’s Story” for the program “Sustainable World” (“Earth Report”, Great Britain). The film was shown on the BBC channel (BBC World) in November 2003. The film is focused on the problems facing the residents of the village of Berezovka, which is situated close to the Karachaganak Oil and Gas Condensate Field (Western Kazakhstan). Recent events in Berezovka have demonstrated that the local authorities continue to ignore the human right to a healthy environment in which to live.

Details:  AN OIL DEMOCRACY, OR THE STORY OF BEREZOVKA