Environmental Checklist: 2. Oil and Natural Gas Development (1)Category

Environmental

Main Check Items

Item(Example)--

Outline of production/operation process and main facilities/infrastructure

Outline of the-Overview of the project site

Project-

Project schedule-

Results of alternatives analyses-

Environmental legal framework applicable to the project① Have ESIA reports been officially completed? Have ESIA reports been written in the official(1) ESIA and
Environmental
Permits

language or a language widely used in the host country?
② Have ESIA reports been approved by the government of the host country?
③ Are the conditions for approval of the ESIA reports satisfied by appropriate actions?
④ In addition to the above approvals, will the project obtain or have obtained other required
environmental permits from the appropriate regulatory authorities of the host country’s government?
① Is the project accepted in a manner that is socially appropriate to the country and locality throughout
the preparation and implementation stages of the project based on sufficient consultations with

1. Permits

stakeholders, such as local residents, conducted via disclosure of project information and potential

andimpacts?

Approvals,② Are consultations with affected people held in a two-way process free of external manipulation,

Explanations/consultations

interference, coercion, or intimidation？
(2) Consultation③ Are the records of such consultations with the stakeholders, such as local residents, prepared?

with the Public④ Are the written materials for the disclosure prepared in a language and form understandable to the
local residents?
⑤ Are ESIA reports available at all times for perusal by stakeholder such as local residents, and copyingof the reports permitted?
⑥ Are proper responses made to comments from the public and regulatory authorities?
⑦ Have the project proponents established a point of contact for complaints in order to receive
complaints from the third parties at an early stage and to promote their resolution?

Confirmation of Environmental
and Social Considerations

Environmental Checklist: 2. Oil and Natural Gas Development (2)Category

Environmental

Main Check Items

Item① Throughout construction and operation period, are air pollutants, such as sulfur oxides (SOx),
nitrogen oxides (NOx), particulate matter (PM) and Volatile Organic Compounds (VOCs) emitted
from the combustion facilities, processing / treatment facilities, and other ancillary facilities
adequately controlled? Does the emission from the project comply with the host country’s emission
standards and meet the international standards through suitable emission control measures such as
2. Antipollution

installation of equipment for removal of pollutants and monitoring of exhaust gas?
(1) Air Quality

Measures② Is there a possibility that air pollutants emitted from the flare system will adversely affect thesurrounding environment?
③ Is there a possibility that air pollutants emitted from the project will cause areas that do not comply
with the host country’s ambient air quality standards or that do not meet the international ambient air
quality standards?
④ Are the GHG emissions from the project calculated? Are adequate measures including measures forpreventing leakage of GHG (e.g. methane) taken to reduce GHG emissions from the project?
① Throughout construction and operation period, are adequate measures taken to control pollutants
such as BOD, COD, SS, heavy metals and other chemicals discharged in industrial wastewater fromproduction facilities, processing / treatment facilities, drilling mud, flowback water, sanitary wastewaterand stormwater? Does the quality of wastewater comply with the host country’s effluent standards andmeet the international standards through suitable effluent control measures, such as installation of(2) Water

wastewater treatment equipment and adequate monitoring?

Quality② Are adequate measures taken to prevent spills and discharges of crude oil and hazardous materials tothe surrounding areas?
③ Are adequate measures taken to prevent contamination of surface water and groundwater by
wastewater and effluents? Is there a possibility that the effluents from the project will result in polluted
waterbody that do not comply with the local ambient water quality standards of the host country, or do
not meet the international water quality standards?
① Throughout construction and operation period, are adequate measures taken to reduce the amount(3) Wasteof waste from drilling wastes including drilling muds, processing / treatment facilities, and otherancillary facilities as much as possible, and recycle if feasible?

Confirmation of Environmental
and Social Considerations

Environmental Checklist: 2. Oil and Natural Gas Development (3)Category

Environmental

Main Check Items

Item② Throughout construction and operation period, are municipal waste, hazardous wastes and otherindustrial wastes generated from drilling wastes including drilling muds, processing / treatment
facilities, and other ancillary facilities properly treated and disposed of in accordance with the laws andregulations of the host country?
③ When hazardous waste disposal is conducted by third parties, will the client use contractors that are
reputable and legitimate enterprises licensed by the relevant government regulatory agencies and obtainchain of custody documentation to the final destination?
① Has the soil at the project site been contaminated in the past by previous users? If so, are adequate
measures taken to prevent health hazard by contaminated soil and groundwater?
② Throughout construction and operation period, are adequate measures taken to prevent soil
(4) Soilcontamination by the leaching and seepage of raw materials, products, fuels, chemicals, leachates fromContamination

the drilling waste ponds and waste leachate or any other substance?
③ Is soil survey carried out before the construction of landfill or embankment in order to prevent
bringing in contaminated soil?
④ Is soil survey carried out before the shipment of surplus soil generated from construction activities?
① Are adequate measures taken to control noise and vibration during construction and operation at siteby soundproofing and vibration damping that comply with the host country’s standard and meet the(5) Noise andinternational regulation?

Vibration② In order to prevent noise pollution generated by the traffic of heavy-duty trucks that transport
construction materials, raw materials and products, are adequate measures taken such as strict routing
to avoid residential areas, speed limit, and load monitoring?
① Is the land at the project site designated for subsidence monitoring due to groundwater overdraft?
② Throughout construction and operation period, if any incident of subsidence arises by the overdraftof groundwater, would adequate measures be taken to minimize the effects of subsidence by switching(6) Subsidence

water supply and optimizing water usage?
③ In case of drilling tunnels or creating large underground cavity, are adequate measures taken toprevent subsidence caused by the lowering of groundwater level, such as soft ground stabilization orapplication of other proper engineering method?

Confirmation of Environmental
and Social Considerations

Environmental Checklist: 2. Oil and Natural Gas Development (4)Category

Environmental

Main Check Items

Item① Throughout construction and operation period, are there any odor sources, such as hydrogen sulfide
and mercaptans originating from crude oil (especially sour oil containing relatively high hydrogen(7) Odorsulfide)? Are adequate odor control measures taken? (not applicable to offshore oil and gas
development projects)② Throughout construction and operation period, are there any other odor sources? If so, areadequate odor control measures taken, such as incineration, oxidation, or biological treatment?
① Is the land used for the project located in the protected areas designated for biodiversity

3. Natural(1) Protected

Environment

Areas

conservation by the host country’s laws or international treaties? Is it located in the habitat of protected
species?
② Throughout construction and operation period, is there a possibility that the project will significantly
affect the protected areas or the habitat of protected species?
① Does the project cause significant conversion or significant degradation of ecologically important
habitats including habitats for endangered species, endemic species, and important migratory species?
② Does the project involve significant conversion or degradation of natural habitats? If so, is itprioritized to avoid the impact? If the impact is unavoidable, will the adequate mitigation measures betaken?
③ Will the evaluation of the impacts on natural habitats by the project and consideration for the offset(2) Ecosystemmeasures be carried out based on expert opinion?

and Biota④ Is the illegal logging of the forest avoided?
⑤ Is there a possibility that the amount of water (e.g. surface water, groundwater) used by the projectwill adversely affect the ecosystem of the surrounding aquatic environments such as rivers and lakes, inthe case of development in the land area? Are adequate measures taken to reduce the impacts onaquatic environments, such as aquatic organisms?
⑥ Throughout construction and operation period, if any adverse impact on ecosystem is expected, will
adequate measures be taken to reduce the impacts on ecosystem?

(3) Hydrology① In the case of onshore oil and gas development, is there a possibility that groundwater systemchanges due to alteration of topographic features and surface water system changes due to installation ofConfirmation of Environmental
and Social Considerations

Environmental Checklist: 2. Oil and Natural Gas Development (5)Category

Environmental

Main Check Items

Item

structures will adversely affect surface water and groundwater flows? If negative impacts are expected,
are adequate mitigation measures taken?
② In the case of new offshore structures installation, is there a possibility that oceanographic conditionchanges due to installation of structures will adversely affect oceanographic conditions, such as waves,and tidal currents? Is the possibility of water quality degradation by the development studied? Are
adequate water quality control measures taken, if necessary?
① Is there a possibility that the installation of structures will cause a large-scale alteration of
topographic features and geological structures around the project site?
② Is there a possibility that civil works, such as excavation or embankment work will cause slope(4) Topography
and Geology

failures or landslides? Are adequate measures considered to prevent slope failures or landslides?
③ Is there a possibility that soil collapse and landslide will result from civil engineering works such as
excavation or embankment work? Are adequate measures taken to prevent soil collapse and landslide?
④ Is there a possibility that soil runoff will result from embankment and cut slope, waste soil disposalsites and borrow sites? Are adequate measures taken to prevent soil runoff?

(5) Management① Are the environmental protection and restoration measures taken in the well abandonment based onof Abandoned

the laws of the host country?

Sites① Are involuntary resettlement and loss of means of livelihoods caused by project implementation
avoidable? Where involuntary resettlement is unavoidable, have appropriate measures been taken to
mitigate and minimize adverse impacts on displaced persons and host communities?
4. Social
Environment② Are the people affected by the project provided with sufficient compensation and support to improve(1) Resettlement

their standard of living, income opportunities, and production levels or at least to restore them to preproject levels? Also, is prior compensation at full replacement cost provided as much as possible? Also,is the compensation standard for the affected people applied with transparency and consistency?
③ Is appropriate participation by the people affected and their communities promoted in planning,
implementing, and monitoring involuntary resettlement action plans and measures against the loss ofConfirmation of Environmental
and Social Considerations

Environmental Checklist: 2. Oil and Natural Gas Development (6)Category

Environmental

Main Check Items

Itemtheir means of livelihood? In addition, have appropriate and accessible grievance mechanisms been
established for the people affected and their communities?
④ For projects that will result in large-scale involuntary resettlement or large-scale loss of means of
livelihood, have resettlement action plans or livelihood restoration plans respectively been prepared andmade available to the public? Does the resettlement action plan or the livelihood restoration plan
include elements required in the standard of the international financial institution, which JBIC
benchmarks in its environmental review?
⑤ When preparing a resettlement action plan or a livelihood restoration plan, have consultations madewith the affected people and their communities based on sufficient information made available to themin advance? When consultations are held, are explanations given in a form, manner, and language thatare understandable to the affected people?
⑥ Has appropriate consideration been given to vulnerable social groups, such as women, children, theelderly, the poor, and indigenous peoples

in the resettlement action plan?

⑦ Are agreements with the affected people obtained prior to the resettlement?
⑧ Is the organizational structure established to properly implement resettlement? Are the capacityand budget secured to implement the resettlement action plan?
⑨ Is there any plan developed to monitor the impacts of resettlement? Are the people affected andtheir communities properly encouraged to participate in the monitoring process?
① Is there a possibility that the project will adversely affect the living conditions and the livelihood of
inhabitants in the neighborhood? Are adequate measures taken to mitigate the potential negative
impacts?
② Is there a possibility that the amount of water used (e.g. surface water, groundwater) by the project(2) Living andwill adversely affect the existing water uses and water area uses? If so, are adequate measures taken to

Livelihood

mitigate the potential negative impacts?
③ In the case of offshore oil and gas development projects, is there a possibility that offshore facilities
will affect vessel traffic and the existing water area uses?
④Does the project affect the baseline ecosystem services that support the foundation of local
community’s livelihood? If so, are adequate measures taken to mitigate the potential negative impacts?

Confirmation of Environmental
and Social Considerations

Environmental Checklist: 2. Oil and Natural Gas Development (7)Category

Environmental

Main Check Items

Item⑤Has appropriate consideration been implemented to vulnerable social groups, such as women,children, the elderly, the poor and indigenous peoples?
① Is there a possibility that the project will damage the local archeological, historical, cultural, and(3) Heritage

religious heritage sites? Are adequate measures considered to protect these sites in accordance withthe host country’s laws?

(4) Landscape① Is there a possibility that the project will adversely affect the local landscape? Are necessary
measures taken?
① Are the impacts to indigenous peoples avoidable by project implementation? If unavoidable, areefforts made to minimize the impacts and to compensate for their losses?
② If the project has adverse impacts on indigenous peoples' various rights in relation to land and(5) Ethnic
Minorities andIndigenous
Peoplesnatural resources, is such rights respected?
③ Is the indigenous peoples plan prepared and made public? Does the indigenous peoples plan include
elements required in the standard of the international financial institution benchmarked in its
environmental reviews?
④ In preparing the indigenous peoples plan, is consultation made with the affected indigenous peoples
based on sufficient information made available to them in advance and are explanations given in a form,
manner, and language that are understandable to them?
⑤ Are the free, prior, and informed consents of the indigenous peoples obtained?
① Is the project proponent not violating any laws and regulations at the host country associated withthe working conditions of the direct employees of the project?

(6) Working
Conditions(including
occupationalsafety)② Are appropriate human rights considerations in place for the direct employees of the project, such as
banning child labor and/or forced labor, implementing anti-discrimination measures and providing
equal opportunities?
③ In terms of workplace safety and health, are tangible measures taken to prevent occupational hazardsof the direct employees such as installation of safety equipment, proper management of hazardous
substances, etc.?
④In terms of workplace safety and health, are intangible measures taken to provide the direct employeesof the project with safety training program on traffic safety and public health?

Confirmation of Environmental
and Social Considerations

Environmental Checklist: 2. Oil and Natural Gas Development (8)Category

Environmental

Main Check Items

Item⑤ Is a proper internal grievance mechanism established for the direct employees?
⑥ Is it confirmed beforehand that a proper internal grievance mechanism and human rights
consideration in place for the third parties contracting indirect employees, such as temporary
construction workers? Also, is a proper monitoring and management system in place for the third
parties to guarantee the human rights of the indirect employees during the terms of contract?
⑦ Is there a consistent communication between the project proponent and the primary suppliers tomonitor the working conditions of supply chain workers to avoid the risk of child labor and/or forcedlabor and occupational health and safety issues? In case of aforementioned risk, will the project
proponent request supplier to adopt corrective measures? If there is no reasonable prospect for
improvement, will the project proponent consider to shift the contract to another supplier that adheresto proper human rights consideration?
① Is there a possibility that outbreaks of diseases, including communicable diseases, such as HIV anddeterioration of public safety will arise due to influx of workers associated with the project? If negative
impacts are expected, are adequate mitigation measures taken to protect public health?
②In the case of onshore oil and gas development projects, is there a possibility that large vehicle traffic
for transportation of materials, such as construction materials, raw materials and products will cause
impacts on traffic in the surrounding areas and impede the movement of inhabitants, and cause risks to(7) Community

pedestrians? If negative impacts are expected, are adequate mitigation measures taken?

Health, Safety③ In the case of offshore oil and gas development projects, is there a possibility that transportationand Security

means, such as vessels and helicopters will cause sea and air space traffic congestion, and result inincrease in traffic accidents? If negative impacts are expected, are adequate mitigation measures taken?
④ Are appropriate measures including the implementation of education and training being taken to
ensure that security guards involved in the project do not violate safety of other individuals involved, or
local residents?
⑤ Throughout construction and operation period, is there any prospect for negative impacts over thesafety and health of the local community? If so, are adequate mitigation measures taken?

Confirmation of Environmental
and Social Considerations

Environmental Checklist: 2. Oil and Natural Gas Development (9)Category

5. Other

Environmental

Main Check Items

Item(1) Impacts① During construction period, if any negative impact is expected over the natural and social

duringenvironment besides those already mentioned in the categories in 2. Anti-pollution measures; 3. Natural

Construction

environment; and 4. Social environment, will adequate measures be implemented?
① Based on the analysis and identification of potential risk (including spills from crude oil and gas
storage facilities, loading/unloading operations, transportation, and blow out during drilling) of accident
in the project, are adequate accident prevention measures in place, such as designing safe environment(eliminating risk of hazards at work places, introducing alternative safer practice); installation of safety
equipment and facilities; preparation of safety procedures; installation of safety signs; designating(2) Accident

emergency exits and evacuation spaces, etc.? Are those safety procedures periodically reviewed andPrevention

updated?

Measures② Are adequate accident prevention measures in place, including assignment of safety and healthmanager, establishing monitoring system, periodical maintenance of facilities, provision of safety
education and training to workers?
③ Is there a comprehensive mitigation plan developed, based on the analysis and identification ofpotential risk of accidents at the project site and the surrounding area that may be caused by emergency
such as flooding, drought, earthquake, tsunami and any other climate related hazards?
① Do the monitoring programs and environmental management plans of the project include
appropriate quantitative/qualitative indicators, which serve as the basis for periodical performance(3) Monitoring

evaluation?
② Does the project proponent properly follow the legal requirements when reporting to the regulatory
authority?
③ Does the project proponent plan to disclose the monitoring results to the stakeholders of the project?
① Where necessary, pertinent items described in the Pipelines checklist should also be checked (e.g.

(1) Reference to
6. Notes

Checklists of
Other Sectors

projects including construction of pipelines).
② Where necessary, pertinent items described in the Forestry Projects checklist should also be checked(e.g. projects including large areas of deforestation).
③ Where necessary, pertinent items described in the Roads, Railways and Bridges checklist should also
be checked (e.g. projects including construction of roads railways and bridges).

Confirmation of Environmental
and Social Considerations

Environmental Checklist: 2. Oil and Natural Gas Development (10)Category

Environmental

Main Check Items

Item

Confirmation of Environmental
and Social Considerations④ In the case of offshore oil and gas development projects, where necessary, pertinent items describedin the Ports and Harbors checklist should also be checked (e.g. projects including construction of ports
and harbors).
(2) Notes on① If necessary, the impacts to transboundary or global issues should be evaluated (e.g. In case theUsing

project causes problems, such as negative effects on international river basin, transboundary waste

Environmental

shipments, acid rain, destruction of the ozone layer, and global warming).

Checklists
1) Regarding the Standards for Confirmation of Appropriateness of Environmental and Social Considerations, confirm the background and rationale for deviation and the measures to rectify it ifnecessary, when the environmental and social considerations of the project substantially deviate from the World Bank Environmental and Social Standards or IFC Performance Standards and a
relevant section of EHS Guidelines, and also where appropriate compare with the standards established by other international financial institutions, other internationally recognized standards, and/or
standards or good practices established by developed countries such as Japan, in addition to environmental laws and standards of the host country and local governments concerned. For standards thatcurrent regulations in the host country has not been established, examine by comparison with the international standards such as the World Bank Environmental and Social Standards and thestandards of developed countries such as Japan.
2) Environmental checklist provides general environmental items to be checked. It may be necessary to add or delete items taking into account the characteristics of the project and the particular
circumstances of the country and locality, including the direct and immediate impact of projects, derivative, secondary, cumulative impact and impact of associated facilities, and the impact throughout
the life cycle of the project.