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The Protection of Indigenous Peoples' Lands from Oil Exploitation in Embrging Economies

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ot- THE ) LIB RARY -J +. \ Op THE PROTECTION OF INDIGENOUS PEOPLES' LANDS FROM OIL EXPLOITATION IN EMBRGING ECONOMIES by Alexandra Sophia Wawryk December 2000 A Thesis Submitted for the Degree of Doctor of Philosophy in the School of Law Adelaide University THE PROTECTION OF INDIGEI{OUS PEOPLES' LANDS FROM OIL EXPLOITATION IN EMERGNG ECONOMIES VOLUME I PARTS I AND II TABLE OF CONTENTS Abstract,,..... v Acknowle dgments ........... List of Tab\es.................. INTRODUCTION 1 PART l DEFINITIONS AND BACKGROUND INFORMATION ....................I2 CHAPTER 1 : DEFINITIONS .................... 12 l.I Definition of "Emerging Economies" ......... 13 1.2 Definitíon of "lndigenous Peoples ...,,,,,,,..........,".I7 1.2.1 Definitions from International Documents and Legal Literature .......'..........'.....'.'.' 17 L2.2 Problems with Applying the Concept of "Indigenous Peoples" to Africa and Asia......... ..............21 1.2.3 Application of the Concept of "Indigenous Peoples" to Africa and Asia 26 CHAPTER 2: THE INTERNATIONAL PETROLEUM INDUSTRY..... 32 2. I Introduction............. 33 2.2 World Reserves, Production and Consumption of Oil 33 2.2.1Proved Reserves of Oil .34 .35 2.2.3 Consumption of Oil.. .36 2.3 Oil Exploitation and Indigenous Peoples' I'ands 37 2.4 Oil Operators In The International Petroleum Industry 38 2.4.1Majors 38 2.4.2 Independents ..40 2.4.3 Nationalised Oil Companies ..41 2.5 The Privatisation of State-Owned OiI Companies 43 2.6 Oíl and Gas Industry Assocations ...... 45 2.6.2The International Association of Oil and Gas Producers (OGP)............ .............'....46 INTRODUCTION TO THIS PART.. 51 CHAPTER 3: THE HUAORANI OF ECUADOR............. 52 3. I Introductíon............... 53 3.2 The People of Ecuador 56 3.3 The Huaorani of Ecuador .. 58 3.4 The Huaorani and Oil Exploitation...... 60 3.4.1 The Ecuadorean Oil Industry 60 62 3.5 The Role of the Law............. 7I 7l 79 3.5.3 New Guarantees for Indigenous Peoples in the 1998 Constitution 8l 82 3.6 Social, Economic and Political Factors 87 87 3.6.2 Inadequate Institutional Capacity 9t 92 3.6.4 Racism.. 94 96 96 3.6.7 National Security and the Role of the Military 98 3.6.8 Access to Justice... 00 3.6.9 The Role of Ecuador's Indigenous Organisations 05 CHAPTER 4: THE OGONI OF NIGERIA t07 4. I Introduction............... 108 4.2 The Ogoni of Nigeria.... 109 4.3 The Ogoni and Oil Exploitation.. 111 4.3.1 The Nigerian Oil Industry lll 4.3.2 Ogoni Grievances ll3 4.4 The Role of the Law .. 121 4.4.1 LandLaw 12t 4.4.5 Oil Mineral Producing Areas Development Commission (OMPADEC) 142 4.5 Social, Economic and Polítical Factors ,.............143 4.5.2 Ethnicity 147 4.5.6 The Role of Transnational Oil Companies in Military Repression t62 CHAPTER 5: THE KHANTY OF WESTERN SIBERIA. r66 5.1 Introduction 167 5.2 The Khanty of Western Siberia ..... 170 5.3 The Khanty and Oil Exploitation .. 176 5.3.1 Structure of the Russian Oil Industry 176 5.4 The Role of the Law ......... 184 5.4.2Federal and Regional Legislation Pertaining Specifically to Indigenous Peoples 186 5.4.3 Land Code ...200 5.4.4 Petroleum Law ...202 5.4.5 Environmental Law ...203 5.5 Social, Economic and Political Factors .209 5.6.1Economic 209 5.6.3 Lack of Will to Protect Indigenous Peoples' Lands.............. ...........223 5.6.4 Indigenous Peoples' Lack of Political Activity and Influence .......226 5.6.5 Political and Economic Power of Oil Companies...................... ......227 5.6.6 Legacies of the Soviet Economic System for Environmental Law Today ............ ........................230 CHAPTER 6: CONCLUSIONS FROM CASE STUDIES 235 6.1 The Impact of Oil Exploitation on Indigenous Peoples 235 6.2 The RoIe of the Law .,......,......,... 235 6.3 Social, Economic and Political Factors that Undermine the Effectiveness of Lønd Tenure and Environmental Laws .......... 237 6.4 A Dual Approach to the International Protection of the Land, Resource and Environmental Rights of Indigenous Peoples 241 PART III: INTERNATIONAL LA 244 INTRODUCTION TO THIS PART... 244 CHAPTER 7: GLOBAL INTERNATIONAL INDIGENOUS RIGHTS AND HUMAN RIGHTS LAWS ,.,..247 7. I lntroduction...................... 248 7.1.1 The United Nations Human Rights Regime 248 7.2 Instruments of International Law that Specffically Address the Rights of Indigenous Peoples ............,251 7 .2.1 ILO Convention No. 107 Concerning the Protection and Integration of Indigenous and Other Tribal and Semi- Tribal Populations in Independent Countries 25t 7.2.2LLO ConventionNo. l69ConcerningIndigenousandTribalPeoplesinIndependentCountries.......................255 7 .2.3 Uniled Nations Draft Declaration on the Rights of Indigenous Peoples ................273 ll 7.3 International Legal Instruments Concerning Individual Human Rights 289 7.3.1 International Covenant on Civil and Political Rights (ICCPR) ............... ...... ........289 T.3.2lnTernational Convention on the Elimination of All Forms of Racial Discrimination 307 7.7.3 United Nations Non-Treaty or Charter-Based Procedures for Dealing with Human Rights Violations...........,.3l8 CHAPTER 8: REGIONAL HUMAN RIGHTS REGIMES 323 8,1 Introduction. 324 8.2 American Human Rights Regime 326 8.2.1 Introduction 326 8.2.2'|he Protection of Human Rights under the American Declaration on the Rights and Duties of Man and the 8.2.3 Proposed American Declaration on the Rights of Indigenous Peoples 350 8.2.4 Criticisms of the Inter-American Human Rights System 8.3 African Humqn Rights Regime: The African (Banjul) Charter on Human and Peoples' Rights ....,.,....362 CHAPTER 9: INTERNATIONAL ENVIRONMENTAL LAV/ 379 380 9.1.1 The Birth of Modern International Environmental Law............ ......380 9.1.2 Sources of International Environmental Law .382 9.1.3 Structure of this Part .3 83 9.2 Existing and Emerging Principles of International Environmental Law 384 9.2.1'lhe Rights of Indigenous Peoples in Instruments of International Environmental Law .....................................385 9.2.2 General Principles of International Environmental Law ............ .............................394 9.3 International Environmental Law Regulating The Oil And Gas Exploration And Productíon Industry 402 9.3.2 Standards and Guidelines Regarding Oil Industry Exploration and Production Practices..... ......408 9.4 Emerging International Environmental Standards and Practices of Relevance to the International OiI and Gas Industry....... 420 9.4.1 Environmental and Social Impact Assessment ..421 9.4.2 Environmental Management Systems (EMS) . ..435 9.4.3 Environmental Performance Evaluation (EPE) ............. ..443 ..447 9.4.5 Environmental and Social Reporting ..452 CONCLUSION TO THIS PART 459 PART IV THE INTERNATIONAL REGULATION OF OIL AND GAS CORPORATIONS THROUGH A CORPORATE CODE OF CONDUCT.............. ...,.462 INTRODUCTION TO THIS PART .......... 462 CHAPTER IO:THEORETICAL DISCUSSION REGARDING CODES OF CONDUCT 464 l0.l Public International Codes of Conduct 465 10. l. I Issues to be Addressed in Formulating a Public Code of Conduct.. ...466 10. 1.2 Strengths and Limitations of a Public International Code of Conduct ...483 10.2 Private Internal Corporate Codes of Conduct ....,........ .485 10.2.1 Issues to be Addressed in Formulating a Code of Conduct..... ...486 10.2.2 Strengths and Limitations of Private Internal Codes of Conduct ...495 10.3 Industry Association Codes of Conduct 500 10.3.1 Example of Industry Codes: Responsible Care 502 10.3.2 Strengths and Limitations of Industry Association Codes of Conduct 513 1 0.4 N ong ov e rnment al O r g anis ation C o de s of C onduc t ............. 522 10.4.1 Features of Three NGO Codes of Conduct..... 523 10.4.2 Strengths and Limitations of NGO Codes of Conduct 528 111 CHAPTER 11: CODE OF CONDUCT FOR OIL COMPANIES ENGAGED IN EXPLORATION AND DEVELOPMENT ON THE TRADITIONAL LANDS OF INDIGENOUS PEOPLES ..................................533 CHAPTER 12: DISCUSSION ON THE CODE OF CONDUCT FOR OIL COMPANIES ENGAGED IN EXPLORATION AND DEVELOPMENT ON THE TRADITIONAL LANDS OF INDIGENOUS PEOPLES563 Principle 1 OBJECTMS OF OILAND GAS COMPANIES........,.. s64 Principle 2 GENERAL POUCY 566 P rinciple 3 S UB STANTM P ROVIS IONS ............ 575 ..579 Principle 3.3 Prior Informed Consent ..589 Principle 3.4 Participation in the Benefits of Oil and Gas Exploitation ..590 Principle 3.5 Protection from the Impact of Colonisation Activities ..594 Principle 3.6 Environment.. ..597 Principle 3.7 Compensation ..606 Principle 3.8 Relocation 6r0 Principle 3.9 Security Arrangements 613 Principle 4IMPLEMENTATION BY OILAND GAS COMPANIES 615 Principle 4.2 Provision of Information to Indigenous Peoples 617 Principle 4.3 Compliance of Employees, Contractors and Subcontractors............... .....................,........619 Principle 4.4 Monitoring and Evaluation 620 Principle 4.6 Complaints Mechanisms and Conflict Resolution 625 Principle 4.7 Corporate Commitment to the Code of Conduct 627 CHAPTER 13: INTERNATIONAL IMPLEMENTATION MACHINERY OF THE CODE 629 I 3, I Introduction.............. 630 13.2 The Role of National and Regional Associations ............ 630 630 13.2.2 The Development of Performance Indicators.... 63r 13.2.3 Making the Code a condition of membership in the association 631 13.2.4 Industry complaints mechanism and conflict resolution 632 13.3 The Role of the International Assocíaîion of OiI and Gas Produceru .............. 633 1 3.4 Public Advisory Pane\s .....,........ 634 13.5 The Role of Governments........... 635 CHAPTER 14: CONCLUSION 638 IV ABSTRACT Large-scale oil exploration and production has
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