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Viewing cable 08TRIPOLI470, OIL- AND GAS-RELATED POLLUTION IN LIBYA

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Reference ID Created Released Classification Origin
08TRIPOLI470 2008-06-16 12:45 2011-08-23 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Tripoli
TelegramRestricted by caption. UNCLASSIFIED   TRIPOLI   00000470 
P 161245Z JUN 08
FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC PRIORITY 3539
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEHEG/AMEMBASSY CAIRO 1114
RUEHTU/AMEMBASSY TUNIS 0523
RUEHAS/AMEMBASSY ALGIERS 0690
RUEHRB/AMEMBASSY RABAT 0637
RUEHRH/AMEMBASSY RIYADH 0043
RUEHLO/AMEMBASSY LONDON PRIORITY 0828
RUEHFR/AMEMBASSY PARIS 0506
RUEHTRO/AMEMBASSY TRIPOLI 4045
UNCLAS SECTION 01 OF 02 TRIPOLI 000470 
 
SENSITIVE 
 
DEPT FOR NEA/MAG; COMMERCE FOR NATE MASON; 
ENERGY FOR GINA ERIKSON 
 
E.O. 12958: N/A 
TAGS: ECON ENRG EPET SENV PGOV LY
SUBJECT: OIL- AND GAS-RELATED POLLUTION IN LIBYA 
 
1. (SBU)  Summary. Libya is slowly acknowledging the need to 
address the environmental impact of its oil and gas production. 
Environmental issues are becoming more central to the Libyan oil 
and gas industry, particularly with the influx of foreign 
companies, which often have a corporate mandate to operate in an 
environmentally-conscious manner, and the drive to expand 
production.  In practical terms, though, the GOL's involvement 
in and concern about environmental issues remain marginal. 
Significant shortcomings in the regulatory framework and legal 
system remain; spotty enforcement and a lack of environmental 
remediation facilities are key issues.  End Summary 
 
GOVERNMENT OVERSIGHT AND LEGAL FRAMEWORK 
 
2. (SBU)  Government of Libya (GOL) oversight of environmental 
issues stems from several laws passed by the General People's 
Congress, which in turn tasked the General People's Committee 
(GPC) for Health and Environment with implementation.  The GPC 
for Health and Environment in turn relies on the Libyan General 
Environmental Authority (EGA) to play the role of environmental 
watchdog and day-to-day implementer of these regulations. 
Unfortunately, the EGA is not an effective actor.  Its staff has 
suffered considerable turnover, contributing to a lack of 
continuity and direction. (Note: Not an uncommon situation in 
GOL entities.  End note.)  The EGA takes a hands-off approach to 
its environmental oversight responsibilities.  When energy 
companies wish to carry out environmental projects, EGA steers 
them into cooperative relationships with municipalities, 
universities, or other community-based organizations or 
associations, further diluting oversight and implementation. 
 
3. (SBU)  The EGA's role is complicated by the a confusing legal 
and regulatory framework.  New decrees and amendments to 
existing laws are often adopted without repealing earlier 
legislation; in Libya's system, there is no effective mechanism 
for reconciling new legislation with previously existing 
statutes.  Laws lack sufficient specificity to offer useful 
guidance.  For the moment, GPC Law No. 15/2003 (regarding 
protection and improvement of the environment) is the most 
comprehensive and widely-implemented Libyan environmental law. 
However, law No. 7/1982, (regarding environmental protection) 
and law No. 8/1973 (regarding the prevention of oil pollution in 
the sea) remain on the books and have discrete sets of 
implementing regulations.  Law No. 15 was added to the mix in 
2003 without any corresponding implementing regulations; 
implementing regulations related to law 7 (1982) and law 8 
(1973) have effectively been used to implement law 15.  Given 
the confusing regulatory situation, most foreign energy 
companies do their best to comply with Libyan law, while also 
adhering to environmental standards established by their own 
companies, which reflect North American/European standards, in 
the hope that doing so will keep them out of trouble. 
 
SCOPE OF THE PROBLEM 
 
4. (SBU) Oil and natural gas production entail unique 
environmental issues.  These include the need to properly handle 
waste and polluted water generated from drilling operations, 
residuals from oil tank farms, chemical wastes, 
naturally-occurring radioactive materials, oil pits, and 
spillages.  This is a sizeable undertaking in a fully developed 
economy with a mature oil and gas sector; it is a significant 
challenge in an operating environment in which western producers 
were absent for 25 years and in which government oversight is 
uncoordinated and in some cases contradictory.  A significant 
problem is the lack of proper facilities, principally well-run 
landfill sites and industrial waste incinerators, in Libya. 
There are a handful of Libyan and foreign companies currently 
attempting to establish viable operations here; however, none 
have enjoyed considerable success to date. 
 
5. (SBU)  The most significant issue is contamination from oil 
pits, storage facilities, refineries and the petrochemical and 
chemical plants associated with production and refining 
operations.  Dumping is a common practice, particularly in the 
remote areas of the country in which most oil and natural gas 
wells and production facilities are located.  Expatriate oil and 
gas contacts report that some local companies representing 
themselves as environmental service companies are known to 
regularly take custody of pollutants and simply relocate them to 
more remote locations in the middle of the desert.  Some waste 
 
TRIPOLI 00000470  002 OF 002 
 
 
is buried; some is left on the sand.  According to foreign 
environmental remediation companies marketing their services in 
Libya, more than five million tons of hydrocarbon 
production-related waste requiring special handling have 
accumulated throughout the country.  Environmental studies 
conducted in populated areas, such as al-Zawiya (where the 
Zawiya refinery is located) and Tripoli (home to a number of 
storage facilities) have shown high levels of soil 
contamination. 
 
6. (SBU) Comment: While there appears to be a growing awareness 
among some GOL actors of environmental issues and a desire to 
develop best practices in the oil and gas sector, opaque 
regulations and inconsistent implementation of existing laws 
suggest that the burden will remain on foreign companies to 
cobble together environmentally responsible operations based on 
a combination of  Libyan and international standards.  The good 
news is that North American and European oil and gas companies 
have generally adopted stringent internal guidelines and 
monitoring mechanisms to ensure hydrocarbon production is 
carried out in an environmentally-responsible fashion.  Those 
firms are likely to produce a greater percentage of Libya's oil 
and gas as the country seeks to increase oil production to three 
million barrels/day from a current production level of 1.7 
million barrels/day by 2013.  Nonetheless, indigenous Libyan 
entities, particularly oilfield services companies, are playing 
an increasingly active role in oil and gas production.  More 
concerted efforts by the GOL to govern those entities, 
particularly with respect to clarifying regulations and 
enforcing them, will be necessary if Libya is to adequately 
safeguard its environment.  End comment. 
STEVENS