05 766-AUR-06-0001 a ESIA Yemen Section 2 Revision 1

8/9/2019 05 766-AUR-06-0001 a ESIA Yemen Section 2 Revision 1

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Yemen LNG Company ltd

Yemen LNG Project

Environmental and Social ImpactAssessment

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CONTENTS

Section Page Number

2. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ........................................ 2-12.1. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK OF YEMEN......................2-12.1.1. General Framework ................................................................................................2-12.1.2. Environmental Protection Council...........................................................................2-22.1.3. Environment Protection Authority (EPA) ................................................................2-32.1.4. The Environmental Protection Law (EPL) No 26 of 1995 ......................................2-52.1.5. The Law n11 for the Protection of the Marine Environment .................................2-82.1.6. Operational Discharge Controls..............................................................................2-82.1.7. Emergency Preparedness and Response..............................................................2-92.1.8. Other Laws related to the Environment ................................................................2-102.2. INTERNATIONAL ENVIRONMENTAL CONVENTIONS ...........................................2-112.3. ENVIRONMENTAL AND SOCIAL POLICIES FOLLOWED BY YLNG ......................2-132.4. ENVIRONMENTAL STANDARDS APPLICABLE TO THE PROJECT......................2-14

TABLESTable 2-1 Global Conventions Protecting the Environment

Table 2-2 Ambient Air Quality Standards Adopted for the YLNG Project

Table 2-3 Atmospheric Emission Requirements Adopted for the YLNG Project

Table 2-4 Concentrations Limits for the Point of Discharge into the Sea

Table 2-5 World Bank Criteria for Noise-Sensitive Land Uses


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2. POLICY, LEGAL AND ADMINISTRATIVEFRAMEWORK

2.1. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK OFYEMEN

2.1.1. General Framework

The Republic of Yemen was formed on 22 May 1990 through the unification of the YemenArab Republic (YAR) and the Peoples Democratic Republic of Yemen (PDRY). Its firstconstitution was passed in 1991, at which time the central government functions weretransferred to the new capital city of Sanaa. Since the unification, legislated environmental

protection in Yemen has been undergoing a rapid development process.The Environmental Protection Authority (EPA), formerly called Environment ProtectionCouncil (EPC) is the central organization responsible for policy making on the protection ofthe environment.

The Ministry of Water and the Environment has the overall responsibility for environmentalmanagement in Yemen. The following ministries have environmental managementresponsibilities with regards to the oil and gas industry:

The Ministry of Oil and Minerals (MOM) is responsible for assessing thepotential environmental impacts from oil and gas pipelines and otherupstream and downstream related facilities, as well as damage resulting fromoil spills. The MOM is assisted by the EPC in coordinating environmentalstudies within the country. The MOM executes all PSAs and GDAs on thestates behalf. The PSAs and GDAs remain subject to ratification by lawaccording to constitutional procedures before becoming effective. The MOMis also YLNGs primary point of contact with the government of Yemen.

The Ministry of Agriculture and Water Resources (MAWR) is focused on themanagement of biological resources. Various departments within MAWRdeal with different issues such as the protection and management of wildlife,agriculture, forestry and fisheries. At this time, MAWR has no legislativemandate for environmental protection.

The Maritime Affairs Authority (MAA) is responsible for taking measures to

prevent the pollution of the sea. Under Law No. 16 of 2004 Regarding theProtection of Marine Environment from Pollution (PMEFP). the PCMA has fullpower to intervene, investigate and regulate marine pollution. Such powersextend to the inspection and detention of vessels.

Legislation on the protection on marine and terrestrial habitats in Yemen isalso addressed under the Environment Protection Law (EPL) 1995. Thislegislation, described further in Section 2.3, includes articles on requirementsfor environmental assessment, the control of waste discharges, theprevention of marine pollution and compensation for environmental damage.

Prior to the implementation of the Environmental Protection Law of 1995 (EPL), legislationregarding the management of flora and fauna was primarily aimed at commercial fishing and


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livestock interests. The only legislation focused on the protection of wildlife within Yemenwas Law n 40 of 1977, which banned the hunting of gazelles in all areas for 10 years. Since

the expiration of this law in 1987, no additional legislation has been promulgated. However,in the last few years, the MAWR has been in the process of proposing major wildlifeconservation legislation.

In addition to the EPL, several new laws related to the environment are in various stages ofdevelopment, including: the Law for the Protection of the Marine Environment from Pollution,which will deal with pollution of the marine environment by oil and its products from bothships and marine structures and shore-based operations; the Civil Aviation Law, which willdeal with noise and atmospheric pollution; the Land Use Law, which will address theenvironmental effects of automobiles and roads; and the Ports Law, which will deal withenvironmental protection within port areas. A new Forest law and new Water and SewageLaw are also in preparation. In addition, the proposed Municipality Law will focus on the

decentralization of the provision of public services, and may affect environmental regulationwithin Yemen. (EPC,1996).

It should be noted that, although the EPL outlines a legislative framework with regards toenvironmental assessment, an administrative and regulatory process governing projectapproval under the EPL has not yet been established in Yemen. In addition no guidelines forundertaking an environmental assessment have been produced by the Yemeni government.This ESIA was therefore undertaken using recognized international guidelines, in particularthose outlined by the World Bank for oil and gas operations.

Local rural communities are governed by sheikhs and aqils, who rule the community byconsent based on the Koran, the Islamic Sharia law and the traditional or tribal law - Urf.Such laws or customs, which often include a significant element of environmental and land-

use rules, tend to regulate rural life to a much greater extent than legislation of the centralgovernment.

2.1.2. Environmental Protection Council

The Environmental Protection Council (EPC) was first established under the former YemenArab Republic in 1987 and has continued to function after unification in 1990. The EPC wasestablished under the chairmanship of the Council of Ministers and was responsible forsetting the national policy for environmental protection. The EPC was also empowered tocoordinate the various other government ministries to ensure the implementation of thispolicy. This council had predominant expertise in the area of environmental health, andnational programs for the protection of the natural environment are currently in their initialstages.

The EPC consisted of the following 11 executive members from various ministries andgovernment agencies:

1. Minister of Municipalities and Housing (Chairman);

2. Minister of Health (Vice Chairman);

3. Deputy Advisor, Deputy Legal Office (member);

4. Deputy Chief of Staff for Military Affairs (member);

5. Deputy Interior Minister for Internal Security (member);

6. Deputy Minister of Municipalities and Housing (member);


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7. Deputy Minister of Agriculture and Fisheries (member);

8. Deputy Minister of Economy and Supply for Economic Sector (member);9. Chairman of the Board of Port Authority (member);

10. General Director of Physical Planning in the Ministry of Municipalities(member);

11. General Director of Environmental Health in the Ministry of Municipalities(member, Recorder and Undersecretary to the Council).

The EPC had been attached to the Department of Environmental Health in the former MMHand the General Director of Environmental Health in MMH serves as the Undersecretary ofthe EPC.

In 1996, a National Environment Action Plan was published for Yemen by the EPC. Major

environmental concerns identified by the EPC include: water management, control ofdesertification, abatement of industrial impacts on the environment, hazardous wastes,marine pollution, sanitation, legislation and education activities, and institution building. Inestablishing the EPC work plans for these programs, six committees have been formed andexternal support has been offered by the government of the Netherlands (technical support)as well as by international organizations such as UNEP (for preparation of work plans andvarious experts) and UNEP/FAO (for desertification measures). Later on EPC was renamedas the Environment Protection Authority (EPA).

2.1.3. Environment Protection Authority (EPA)

EPA has been established to carry out the activities of environmental protection and natural

resources conservation. Accordingly, the Authority is the official and specializedgovernmental agency for environmental protection and natural resources conservation withthe following objectives:

Protect the environment and conserve its balance and maintain theecosystems;

Combat the different kinds of pollution and avoiding any damage or negativeimpacts of various developmental projects;

Protect and develop the natural resources and conserve the life qualities innational environment from the damages come from outside the nationalenvironment;

Protect the society, human health and other organisms from the different non-environmentally activities;

Eliminate air pollution and the impacts of climate change.


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The duties of the Authority to achieve its objectives are as follows:

1. Propose and implement policies, strategies and plans for protecting theenvironment.

2. Prepare national emergency plans to face natural disasters and pollution incoordination with concerned agencies.

3. Carry out environmental surveys and determine the areas, resources andspecies which require taking legal procedures for their conservation. Protectthe fauna and flora and wild and marine birds according the existing lawsand legislation and monitor their application.

4. Prepare proposed laws and legislation related to environment protection incoordination with MOTE and concerned agencies.

5. Field follow ups to implement the criteria and stipulations to commit thepublic and private establishments to implement them and take the recitedprocedures in EPL and other existing legislation in coordination withconcerned agencies.

6. Prescribe the referring principles, procedures and terms of environmentalimpact assessment and review EIA studies of public and private projects togive opinion and monitor their implementations.

7. Prescribe the national criteria to protect the environment from pollution,conserve the natural resources and monitor its implementation incoordination with concerned agencies.

8. Implement the international commitments related to environmental protectionthat have been ratified by Republic of Yemen.

9. Collect the international, regional and national data and information relatedto the changes on environment and natural resources periodically incoordination with concerned agencies. Assess the data and information tobe used in environmental planning and management.

10. Prepare regular reports on environmental status and main environmentalindicators in Republic of Yemen to be published periodically.

11. Propose protected areas and manage them in coordination with concernedagencies according to existing laws and legislation.

12. Prepare integrated plans for coastal zone management in coordination withconcerned agencies.

13. Prepare and implement pilot projects to protect the environment andconserve the natural resources.

14. Prepare and implement environmental awareness programs.


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2.1.4. The Environmental Protection Law (EPL) No 26 of 1995

In 1993, the cabinet of the Yemeni government approved the draft Environment ProtectionLaw (EPL) and, in 1995, the proposed legislation was ratified by Parliament as presidentialdecrees and laws. The EPL includes regulations for the protection of both the marine andterrestrial (land) environments and outlines the basic objectives and roles of concernedauthorities in the protection of air, water, and soil. It establishes controls on pesticide use,environmentally damaging activities, transportation and disposal of hazardous materials andwastes, environmental monitoring, and marine pollution. It is very general in nature, anddoes not provide specific compliance standards for area such as air and water emissions orsoil and groundwater contamination.

This Law is currently under revision and it is going to be fully revised. The Executive Plan forthe above law is under preparation.

The following is a chronological list of the legislation that addresses environmental issues inYemen:

Prime Ministerial Decree No. 7 of 1987: Establishing the EnvironmentalProtection Council;

Law No 42 of 1991:On the Regulation and Protection of Sea Life;

Law No. 11 of 1993: Amended by Law No. 16 of 2004: On the Protection ofMarine Life from Pollution;

Law No. 12 of 1994: On Crime and Punishment;

Law No. 26 of 29 October 1995: Environmental Protection Law.

Environmental Impact AssessmentThe EPL establishes special importance to an Environmental Impact Assessment (EIA) as atool for combining both environmental protection and sustainable development. Part 3 of theEPL establishes the basis for the control of environmentally damaging projects and/oractivities. The law includes a requirement (Article 36) for an EIA to be undertaken prior toimplementation of any project or activity which might cause negative effects to theenvironment. For these activities, licenses shall not be issued unless an EIA has beenundertaken. In addition, activities already established prior to the implementation of the rulesare required to submit an EIA to the competent body within a year (Article 40).

Under Article 37 of the EPL, the Yemeni government has the authority to issue a decreewhich will outline the criteria to be used in determining whether a proposed activity may

substantially affect the environment. The decree may also determine the elements thatcompose the EIA.

Under Article 39 of the EPL, the competent authority must take into account the followingconsiderations when deciding to approve or reject the EIA:

The current state of the environment in which the activity will be established;

The environmental impact that may occur due to the Project establishment;

Any other development that may be reasonably expected in the area wherethe activity is proposed to be carried out;

Any objections that have arisen or which may arise out of the Project.


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The Law also contains a number of general propositions, including, Article 4(8), whichrequires all new projects and establishments to use the best available technologies to protect

the environment and control pollution. Existing projects are required to comply with theenvironmental standards and norms issued by the EPC.

At the time the EIA for the YLNG Project was undertaken, only the basic legislativeframework had been introduced with respect to the environmental assessment process inYemen.

Protected areasAt international level, Yemen is a party to the World Heritage Convention 1972, the BiologicalDiversity Convention 1992 and the Desertification Convention 1994.

Prior to the issue of the EPL 1995 there was no national legislation governing protectedareas in Yemen. However, traditional forms of rangeland protected area (mahjour or mahjur)

were and continue to be practised by local communities in Yemeni rural areas. Furthermore,under the tribal jurisdiction of local sheikhs or administrators, there have been cases of localforest felling bans and entry bans into certain areas to protect the environment, with finesapplying in the case of infringements. For example, such community initiatives have beenfunctioning for a number of years in Jebel Lawz and Wadi Zabid.

A national legal framework for habitat and species protection was established by the EPL1995. The Law provides for the establishment of natural protected areas, defined as land orwater (both coastal and inland) that enjoys special protection to preserve its environment,archaeological features, or to protect fauna, flora, birds or marine species that areendangered or threatened with extinction (Article 2(20) & 11(1)). The Yemeni EPC or anyother concerned body may submit proposals to the cabinet for the designation of natural

protected areas (Article 11, EPL 1995). In particular, it is prohibited to constructestablishments, buildings or roads, or to transport vehicles and equipment, or to perform anycommercial or industrial activities unless permission has been obtained from the competentauthority specified by the cabinet (Article 11(2), EPL 1995).

With regard to species protection, Article 12 of the EPL 1995states that all fauna and birds(including migratory species) have "legal protection". However, the government may byresolution permit the hunting for commercial or other purposes of certain species at certaintimes. The EPL 1995 also establishes prohibitions relating to rare species of flora and theconducting of industrial or commercial activities in agricultural or other environmentallysensitive areas.

A new Law for Protecting Sensitive Areas is under preparation. Currently the Environment

General Authority is preparing contracts for conducting a study aiming at establishing a planfor determining and managing protected areas. The implementation of this study has begunin March 2002.

Based on the results of the above-mentioned study, a new Law for Protecting SensitiveAreas will be prepared. The purpose of the law will be to:

Determine sensitive areas

Regulate investment in such areas

Regulate management of such areas through public participation

The coastal area of Balhaf Burum will be covered by this law.


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Pollution Free Areas: The EPL 1995 makes provision for the establishment of "pollution-free areas", defined in Article 2(19) as the territorial sea, the contiguous zone, the exclusive

economic zone and the continental shelf, as well as any other area specified by law. UnderArticle 27, the EPC is vested with the power to designate pollution-free areas and green beltsin which construction, agriculture or industrial activities which cause damage andenvironmental pollution are prohibited.

Atmospheric EmissionsThe EPL 1995 does not contain any chapters dedicated to the prevention of air pollution.However, a number of its general provisions apply to all environmental media, such as Article4(2) under which all new projects must use the best available technology to protect theenvironment and control pollution, including pollution of the atmosphere.

The EPL 1995 does, however, make provision for the establishment of environmental

standards. Article 30 requires the EPC to prepare environmental standards and criteria inorder to regulate, inter alia, emissions of pollutants to the air and noise.

Chemical ManagementThere are no industry-specific regulations governing the management of chemicals in E&Poperations in Yemen. The EPL 1995establishes a framework for the development of controlson the use and handling of toxic and hazardous substances in Yemen and requires the EPCto prepare a list of toxic and hazardous materials, which is to be formally issued in a cabinetdecree (Article 44(2)). The list must be reviewed, amended and updated from time to time inaccordance with scientific and technical progress. The Yemeni cabinet may establishparticular measures to be taken in respect of the listed toxic or hazardous materials. Suchmeasures may relate to, for example, the method and location of disposal, conditions ofstorage and transportation, or packaging and labelling requirements (Article 47).

Waste ManagementThere are no industry-specific regulations governing the management of wastes arising fromoil and gas E&P operations. Yemeni waste management in general has had little directregulation in the past. However, a framework for the future development of wastemanagement law is provided by the EPL 1995.

Article 22 of the EPL 1995 imposes a general prohibition on the dumping, disposal ordischarge of pollutants of a type or quantity that affects or causes damage to theenvironment. A specific prohibition on the disposal or discharge of toxic or hazardousmaterials is imposed under Article 50 of the Law, which also requires all necessary measuresand precautions to be taken to prevent any risk of such a disposal or discharge. If the person

responsible for the discharge and disposal is unable to take such measures, the EPC has thepower to take the measures itself and recover its costs from the person responsible.

A wider prohibition against the handling of toxic and hazardous wastes is imposed underArticle 53 of the EPL 1995, which prohibits the importing, dumping, burying, disposal orstorage of toxic, radioactive and hazardous wastes by any means in Yemen.

The EPC and other competent state bodies are subject to a number of obligations under theEPL 1995relating to the development of waste management regulation in Yemen, includingthe preparation and publishing of standards relating to the disposal of pollutants.

The Yemeni government has not yet issued the necessary rules and regulations to giveeffect to the EPL 1995. Nevertheless, the contractor's proposals for waste management


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during E&P operations must form part of any EIA required by the Yemeni authorities prior tothe commencement of operations.

Environmental liabilityThe EPL 1995 also addresses liability for environmental damage, including the assessmentof costs for removing damages, remediation of the environment and penalty compensation.

Under the EPL 1995, any authority with project-licensing responsibilities also has the powerto intervene where a licensed project causes environmental pollution or deterioration.Penalties for breach of the EPL 1995 include a maximum prison sentence of ten years, aswell as payment of any compensation due. These penalties are expressed to be withoutprejudice to any stronger penalties provided for in the Sharia Islamic Law, and other validlaws and executive regulations. A maximum sentence of ten years imprisonment is also laiddown by the Law on Crime and Punishment 1994 for pollution which causes risk to life or

serious injury.2.1.5. The Law n11 for the Protection of the Marine Environment

The law No. 11 for the Protection of the Marine Environment, 1993 amended by Law No. 16of 2004 is aimed at protecting the Free Polluted Area from oil pollution. Except for Part 6 (thepenalties) and part 7 (final Rules), the articles of this law have been revised and included inthe EPL Law No. 26 of 1995 under part 4 (marine pollution).

The law prohibits throwing, dumping or the discharge of any wastes relating to oil explorationand production or shipping processes to the Free Polluted Area before such wastes aretreated by the best available techniques of waste treatment which should comply withinternational rules and specifications and an emergency plan agreed by the EnvironmentAuthority, which should cover personnel, equipment and materials should be prepared.

The Maritime Affairs Authority (MAA) is responsible for taking measures to prevent thepollution of the sea. Under Law No. 16 of 2004 regarding the Protection of MarineEnvironment from Pollution (PMEFP), the MAA has full power to intervene, investigate andregulate marine pollution. Such powers extend to the inspection and detention of vessels.

2.1.6. Operational Discharge Controls

At international level, Yemen is party to the Jeddah Convention 1982which concerns theconservation and prevention of pollution of the Red Sea and Gulf of Aden. Parties to theConvention are required to take all appropriate measures to prevent, abate and combatpollution of the sea area from various sources, including land-based activities, ships, marinestructures and, specifically under Article VII of the Convention, offshore E&P operations.

E&P-specific operational discharge controls do not exist under Yemeni law and, as yet, nogeneral or specific discharge standards have been issued by the government. A frameworkfor the development of discharge controls exists, however, under the EPL 1995. Article 22 ofthe 1995 Law as well as Article 35 of the (PMEFP) 2004 lawimpose a general prohibition onoperational discharges. Operational discharges are also regulated under controls laid downin the EPL 1995 relating to the protection of water and soil. The 1995 Law also expresslyprohibits any activity that contributes, either directly or indirectly, to soil pollution; and soilprotection must be taken into consideration in EIAs undertaken prior to the commencementof projects which have a negative effect on the environment (Article 9, EPL 1995)


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Offshore: Article 63 of the EPL 1995prohibits the discharge of any polluting materials intoYemeni territorial waters, continental shelf or exclusive economic zone from vessels or

pipelines. Pollution of the marine environment from land-based sources is prohibited underArticle 64 of the EPL 1995.

The Law regarding the Protection of Marine Life from Pollution 2004 governs dischargesfrom vessels into the marine environment, prohibiting the discharge of any substances of apolluting nature and regulating the manner in which such substances should be handled.

The 2004 Law also empowers the Maritime Affairs Authority (MAA) to intervene, investigateand regulate pollution, including powers to board and detain vessels where necessary. TheMAA also has the right to bring civil proceedings where damage to the marine environmenthas occurred Breaches of the 2004 Law are punishable by imprisonment.

Finally, the Law on the Protection of Sea Life 1991 aims to protect fisheries and to this end,

inter alia, prohibits the discharge of chemicals and petrochemical substances into the seaunless such substances are treated and will not harm sea life.

The EPC is responsible for preparing and implementing the standards and criteria required togive full effect to the EPL 1995. In particular, the EPC is required under Article 30 to establishstandards governing the discharge of pollutants to surface water, groundwater, seawater andland.

2.1.7. Emergency Preparedness and Response

International Law: Yemen is party to the Jeddah Convention 1982 which concerns theconservation and prevention of pollution of the Red Sea and Gulf of Aden. Article IX of theConvention requires contracting parties, acting individually or jointly, to take all appropriate

measures to deal with pollution emergencies in the Red Sea and Gulf of Aden. Suchmeasures include taking steps to ensure that adequate equipment and qualified personnelare readily available. Contracting parties are also required to co-ordinate their nationalcontingency plans for combating marine pollution by oil or other harmful substances. Anycontracting party which becomes aware of a pollution emergency in the sea area covered bythe Convention must immediately notify the Convention's governing body - the RegionalOrganisation for the Conservation of the Red Sea and Gulf of Eden Environment - as well asany party likely to be affected by the incident (Article IX).

Yemen is also party to the Jeddah Protocol 1982, the objective of which is to facilitate andencourage co-operation between the parties to the Protocol in combating oil spills and loss ofother harmful substances in the marine environment of the Red Sea and Gulf of Aden. TheProtocol requires contracting parties to maintain emergency contingency plans and toestablish a Marine Emergency Mutual Aid Centre to assist in the development of nationalcapabilities. Information about emergency situations that arise must be passed to otherparties, who must use their best endeavours to provide assistance, if requested. Article VII ofthe Protocol obliges each contracting party to require that persons in charge of offshoreinstallations report the existence of marine emergencies to the appropriate national authority.

Note: The 1982 Protocol was signed by both the former Yemen Arab Republic (YAR) and thePeople's Democratic Republic of Yemen (PDRY). However, the Protocol only entered intoforce for the YAR.


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National Level: Article 11.1 of the Production Sharing Agreements (1999 version) requirescontractors to take all proper measures, according to generally accepted methods in the

petroleum industry, to prevent loss or waste of petroleum during drilling, producing,transporting, storage and distribution operations. The MOM can prevent any operation onany well that might reasonably be expected to result in the loss or damage of the well or theoil and gas field.

New Production Sharing Agreements (2005 version) (namely for Blocks 2 and 3) included anew article which states as follows:

The CONTRACTOR shall abide by, and ensure that sub contractors abide by, allenvironmental laws of the ROY and shall ensure that Petroleum Operations are conducted inaccordance with standard Petroleum Industry Practices to ensure the protection of theenvironment.

A legal requirement to prepare emergency contingency plans is imposed under Article 29 ofthe EPL 1995 as well as Article 35 of (PMEFP).

2.1.8. Other Laws related to the Environment

The Law No. 120 for the Prevention of Importing Equipment that use orcontain Substances that deplete the Ozone Layer, 1998Article (1) prevents the import of the equipment that use or contain the following substances:

Freons : CFC 11,12,14,113

Halons : 1211,1301

This law is currently under revision and it is intended to be replaced by a new applicable law

that control the importing and use of the substances that deplete the ozone layer.

The Law No. 21 for Archaeology, 1994Article (13) prohibits the establishment of heavy or dangerous industry in a distance of lessthan half a kilometre from any archaeological site except for cases exempted by the Authorityof Archaeology.

The Law No. 21 for the States lands and Real Estates, 1995Articles (37 and 38) restrict the use of Yemeni islands and coastlines and their prohibited

areas to the rent for investment projects provided that the activities of such projects wouldnot have adverse impacts on the environment.


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2.2. INTERNATIONAL ENVIRONMENTAL CONVENTIONS

Yemen has international environmental law obligations that are directly related to its nationalenvironmental planning activities and which concern both marine and terrestrial habitats.Either the former YAR and/or the former PDRY ratified many of the global treaties andconventions protecting the environment. According to the Unification Declarations, theinternational conventions ratified in this manner remain valid and are applicable to the wholenation.

Yemen has ratified all conventions listed in Table 2-1 (if the former YAR and the formerPDRY signed the convention, then only the earlier date is given).

Amongst these conventions, the Regional Convention for the Conservation of the Red Seaand Gulf of Aden (1982) is applicable to the Project. In this convention, the contractingparties agree to prevent, abate and combat pollution resulted from:

Discharges from ships (article IV)

Dumping of wastes from ships and aircraft (article V)

From land based sources :discharges from land reaching internal waters andthe sea area whether water-bore, air bore or directly from the coast includingoutfall and pipelines:(article VI)

From coastal dredging ( article XIII)

The contracting parties agree to give due concentration to the assessment of potentialmarine effects particularly in the coastal areas with the help of international standards (XI).

The contracting parties agree to ensure the availability of contingency plans for emergencies(article IX).

Article (XVI) establishes A Regional Organization for the Conservation of the Red Sea andGulf of Aden environment.

The United Nations Convention for the Bio-Diversity (1993): each contracting party shall,whenever needed, perform the following:

Develop and establish a system for protected areas or for areas that requirespecial considerations to conserve their bio-diversity

Set up guidelines for defining and managing protected areas

Organize and manage the most important biological resources for the

purpose of the conservation of bio-diversity whether inside or outside theprotected areas.


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TABLE 2-1

GLOBAL CONVENTIONS PROTECTING THE ENVIRONMENT

Conventions Ratified by Yemen Date ofRatification

United Nations Convention to Combat Desertification (UNCCD) 14.01.1997

Framework Convention on Climate Change : FCCC (New York,1992)andKyoto Protocol

21.02.1996and15.09.2004

Convention on Biological Diversity (Rio de Janeiro,1992) 21.02.1996

Convention on the Control of the Transboundary Movements of HazardousWastes and their Disposal (Basel, 1989)

21.02.1996

Protocol on Substances that Deplete the Ozone Layer (Montreal, 1987) 21.02.1996

Convention for the Protection of the Ozone Layer (Vienna, 1985) 21.02.1996

Protocol concerning Regional Cooperation of the Red Sea and the Gulf ofAden Environment

20.8.1982

Regional Convention for the Conservation of the Red Sea and the Gulf ofAden (PERSGA) (Jeddah, 1982)

20.8.1982

United Nations Convention on the Law of the Sea (Montego Bay, 1982)[UNCLOS]

10.12.1987

Protocol on Interference on High Seas in case of Marine Pollution withSubstances other than Oil (London, 1973)

06.03.1979

Convention concerning the Protection of World Cultural and Natural Heritage(Paris, 1972)

7.10.1980

Agreement on Civil Responsibility of Marine Transport of Nuclear Materials(Brussels, 1971)

06.03.1979

Convention on Intervention on High Seas in case of Catastrophes of OilPollution (Brussels, 1969)

06.03.1979

Convention for the Safety of Life at Sea (1960) 06.03.1979

Convention for the Prevention of Pollution of the Sea by Oil (1954) 06.03.1979

Stockholm Convention on Persistent Organic Pollutants POPs (2004) 09.01.2004

.


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2.3. ENVIRONMENTAL AND SOCIAL POLICIES FOLLOWED BY

YLNGYLNG has carried out the work relating to this ESIA with regard to World Bank Groupenvironmental and social guidelines. YLNG is also committed to complying with lenderenvironmental and social guidelines applicable to the Project. The policies that will apply tothe Project will be set out in an Environmental and Social Management Plan that will beincluded in the Project loan documentation.

The following list includes those policies and guidelines that may be deemed to apply to thedevelopment and operations phases of the Project and have been considered in thedevelopment of this ESIA.

World Bank Operational Policy 4.01 Environmental Assessment (January1999 revised August 2004)

International Finance Corporation (IFC) Operational Policy 4.04 NaturalHabitats (November 1998)

IFC Operational Policy 7.50 International Waterways (November 1998)

World Bank Operational Policy 4.12 and Bank Procedures 4.12 InvoluntaryResettlement (December 2001)

IFC Operational Policy Note 11.03 Management of Cultural Property(September 1986)

World Bank Group General Environmental Guidelines (July 1998)

World Bank Guidelines for Oil and Gas Development (Onshore) (July 1998) IFC Oil and Gas Development (Offshore) (December 2000)

IFC Policy Statement on Forced Labour and Harmful Child Labour (March1998)

IFC Occupational Health and Safety Guidelines (June 2003)

IFC Port and Harbor Facilities Guidelines (July 1998)

IFC Hazardous Materials Management Guidelines (December 2001)

IFC Waste Management Facilities Guidelines (July 1998)

IFC Policy on Public Disclosure (September 1998) OPIC Environmental Handbook (February 2004)

YLNG has also adopted the Voluntary Principles on Security and Human Rights in theProject security policy. All security policies and procedures for the YLNG Project will complyin all material respects with the Universal Declaration on Human Rights, applicableinternational and national laws and the Voluntary Principles on Security and Human Rights.

All boats and LNG carriers involved in YLNG construction and operation will comply withMARPOL 73/78 Convention.


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2.4. ENVIRONMENTAL STANDARDS APPLICABLE TO THE

PROJECTIn addition to the Environmental regulation of Yemen, the YLNG Project is committed tocomply with environmental guidelines, standards and design criteria that have beendeveloped specifically for the Project and are derived from World Bank standards (GeneralEnvironmental Guidelines Pollution Prevention and Abatement Handbook World BankGroup July 1998). These standards are related to the following aspects of the Project:

Ambient Air Quality Standards (Table 2-2)

Atmospheric Emission requirements (Table 2-3)

Concentrations limits for the point of discharge into the sea (Table 2-4)

Ambient Noise Level (Table 2-5).

TABLE 2-2

AMBIENT AIR QUALITY STANDARDS* ADOPTED FOR THE YLNG PROJECT

Pollutant Concentration Averaging period

150 g/m3

100 g/m3

Max 24-hour average

Maximum Annual AverageNitrogen Dioxide(as NO2) 100-150 g/m3 (guidance

value)24-hour average

40-60 g/m3 (guidance value) Annual arithmetic mean

50 g/m3

70 g/m3

Annual average

24-hour averageSulfur Dioxide (SO2)

30 mg/m3

10 mg/m3

1 hour

8 hour

Particulates 110 g/m3 (health protection) Max 8-hour average

Carbon monoxide(CO)

(WHO proposition)

2 mg/Nm3

* Ambient Air Conditions at Property Boundary


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TABLE 2-3

ATMOSPHERIC EMISSION REQUIREMENTS ADOPTED FOR THE YLNG PROJECT

Source Pollutant Stack emission limit

Liquid fossil fuel NOx Boilers: 250 mg/Nm3 max

NOx

Boilers: 200 mg/Nm3 max

Gas Turbines: 50* mg/Nm3 max

Process Heaters: 320 mg/Nm3 max

Gaseous fossil fuel

Particulates 50 mg/Nm3

* : According to the necessary reliability of the Power Generation System and the set points of the Gasturbines generators, an ongoing complementary study will precise if Reduced NOx emission burners canbe installed. If not the emissions would be 125 mg/Nm

3max


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TABLE 2-4

CONCENTRATIONS LIMITS FOR THE POINT OF DISCHARGE INTO THE SEA

Pollutant Maximum permitted concentrationMaximum permitted

daily load

pH 6-9 N/A

Total hydrocarbons 10 mg/l 100 kg/day

BOD5 50 mg/l 15 kg/day

COD 250 mg/l 50 kg/day

TSS 50 mg/l 15 kg/day

Phosphorus 2 mg/l 15 kg/day

N 60 mg/l 50 kg/day

Salinity max increase + 10%

Phenols 0.5 mg/l 1 g/day

Chlorinated organics 5 mg/l 30 g/day

Cr Hexavalent

Cr Total

0.1 mg/l

0.5 mg/l

1 g/day

free CN 0.1 mg/l 1 g/day

Pb 0.1 mg/l 5 g/day

Cu 0.5 mg/l 5 g/day

Ni 0.5 mg/l 5 g/day

Zn 2 mg/l 20 g/day

Mn 1 mg/l 10 g/day

Se 0.1 mg/l 10 g/day

Fe 3.5 mg/l 20 g/day

F 20 mg/l 150 g/day

As 0.1 mg/l 0.5 g/dayCl 0.2 mg/l

Cd 0.1 mg/l 2 g/day

Hg 0.01 mg/l 0.5 g/day

Temperature* < 3C above water temperature at100 m from point of discharge

N/A

*Note: The results of the modeling of the extent of the thermal plume from the wastewater outfall are provided inthe study report 3D Model Thermal study prepared by SOGREAH dated November 2001- revised September2005.


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TABLE 2-5

WORLD BANK CRITERIA FOR NOISE-SENSITIVE LAND USES

Land Use

Planning Limit,

Ldn (dBA)

Planning Limit,

Leq (dBA)

Residential 55 day

45 night

-

Commercial - 70

Industrial - 70

05 766-AUR-06-0001 a ESIA Yemen Section 2 Revision 1

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