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International Legal Framework Governing Artificial Reefs, with a Review of Iran’S

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International Legal Framework Governing Artificial Reefs, with a Review of Iran’S Petroleum Research Article-Law Studies Business Review Petroleum Business Review, Vol.4-N0.4, p.1-11, Autumn 2020 International Legal Framework Governing Artificial Reefs, with a Review of Iran’s Regulations Seyed Mohammad Tabatabaeinejada* and Foroogh Torabib a Associate Professor, University of Tehran Oil and Gas law, Email: [email protected] b Candidate,Faculty of law, University of Tehran, Iran, Email: [email protected] ARTICLE INFO ABSTRACT Keywords: Converting unused offshore oil and gas installations into artificial reefs Artificial reefs, as one of the alternative methods of decommissioning, is used in many Decommissioning, Marine coastal states across the globe for the purposes of coastal management, environment, Oil and gas enhancement and attraction of living marine resources, protection and installations preservation goals. Despite the positive impacts of artificial reefs, there are also potential negative impacts which require adequate maintenance of assets as well as, continuing monitoring and supervising. Although a lot of countries have comprehensive regulation on artificial reefs, many nations have blanket regulation requiring obsolete structures to be removed, yet it can bring about enormous environmental, socio-economic benefits. The sensitivity of deployment of structures as artificial reefs induced international and regional conventions to intervene and regulate the matter. The aim of this paper is to compare the most important international and regional conventions and critically compare and analysis them with the DOI: 10.22050/pbr.2020.254721.1131 current Iran’s national laws and regulations. Iran is one of the biggest oil and gas producers and has a huge number of offshore installations which will require decommissioning in the coming years. Therefore, comprehensive Received: 27 October 2020 national regulation should be enacted on decommissioning and also the Revised: 19 November 2020 possibility of creation artificial reefs. The authors seek out to evaluate the Accepted: 25 November 2020 existing legislation in order to assess the potential capacity of Iran’s seas for converting the installations into artificial reefs. Once production ceases, the assets and installations must 1. Introduction be disconnected from the reservoir and removed The offshore asset life cycle begins with issuing an (Wilkinson et al., 2016). There are numerous offshore exploration authorisation (Hammerson, 2016). Provided installations which are approaching obsolescence around that it is proved the reservoir production will be the globe and would need to be decommissioned within economic, drilling and exploitation procedure will be the next few years (Fowler et al., 2014). initiated. Hydrocarbon reservoirs typically reach their Decommissioning of oil and gas installations may be production peak before the cost of extraction outweighed include: leaving in place, complete or partial by the value it creates. This is known as Cessation of decommissioning, in-situ dumping/disposal at sea and or Production (CoP) date (Oil and Gas Authority, 2018). alternative reuse of the structure (Zawawi et al., 2012). * Corresponding author 1| Petroleum Business Review While complete removal is based on the theory of and habitat has been degraded. Converting oil and gas “leaving the seabed as you found it” (Fowler et al., installations and structures to artificial reefs programme 2014), and can be assumed the most environmentally- have been increased in recent years which makes it one sound decommissioning option which international of the most important alternative methods of regulations is favoured it, could be more complicated decommissioning in many nations. from the point of economic and technical feasibility and The following chapter provides a definition of even can cause harm to marine environment (Bernstein, artificial reefs as well as the main reason for artificial 2015). It is because oil and gas structures develop reefs deployment and the way of management and copious and diverse marine communities during the monitoring, and at the end of the section some significant exploitation and production phase. Thus, complete case studies will be reviewed. removal of these assets may be adversely affected ecosystem and biological diversity and marine habitat. 2.1. Backgrounds and Definition of Artificial This has led to explore alternative decommissioning Reefs options such as using installations as artificial reefs (Sommer et al., 2019). The first time an artificial reef was built for the purpose of ecology was in Japan during the 17th Century Artificial reefs are “submerged structures placed on to grow kelp. The modern concept of artificial reefs the seabed deliberately, to mimic some characteristics of however, was born in the 18th century in this country and natural reefs” (Armono, 2004). Because of proven carried over into United States in the beginning of the significant benefits of artificial reefs for fisheries, 19th century and, then Europe, in the mid-19th century tourism, scientific purposes and etc., today, this method started to use it (Mckinney, 2013). has been using broadly across the globe and although many international and national regulations have enacted There are different national and international its requirements, many nations still have blanket regulations enacted artificial reefs’ definition, however, regulations towards artificial reefs (W. S. Alevizon, one the most comprehensive delineation belongs to the 1989). definition of London Convention and Protocol Guidelines for the Placement of Artificial Reefs; Article Iran is one the biggest oil and gas producers in the 1,3 of the Guidelines which also embraces the purposes world, however, there is no specific legislation related to of these structure placement states that: “ An artificial decommissioning and its methods in national law. The reef is a submerged structure deliberately constructed or topic of decommissioning of infrastructure or artificial placed on the seabed to emulate some functions of reef placement in the Iran’s national legislations has not natural reef such as protecting, regenerating been referred. Therefore, the aim of this study is to concentrating, and/or enhancing populations of living provide the ground for more researches and studies by marine resources. discussing some important aspects of it. Objectives of an artificial reef may also include the This paper, first gives an explanation of artificial protection, restoration and regeneration of aquatic reefs concept, and the aims and effects of setting these habitats, and the promotion of research, recreational structures up, and then will have a look at management, opportunities, and educational use of the area. maintenance and monitoring of artificial reefs. Next, we will identify international and regional convention The term does not include submerged structures relevant to rigs to reef programmes in order to deliberately placed to perform functions not related to understand the position of international regulations for those of natural reef - such as breakwaters, mooring carrying out the operations. Subsequently, the existing cables, pipelines, marine research devices or platforms – Iran’s regulation related to decommissioning and the even if they incidentally imitate some functions of a possibility of using artificial reefs in the waters under natural reef.” Iran’s sovereignty right will be evaluated to provide the As a result, structures considered to be artificial reefs basics for creating legal framework of artificial reefs. that are exclusively placed to perform natural reefs’ functions and this will exclude artificial islands, or 2. An Introduction to Artificial Reefs structures such as breakwaters, established for coastal Artificial reefs are deployed for a variety of purposes, defence purposes (Burt et al., 2009). but the main aim is considered to enhance and rebuilt marine environment resources where the natural biota |2 Volume 4, Issue 4 December 2020 2.2. Overview of the Objectives of Artificial result of changes in wave action; artificial reefs may also Reefs have adverse impact on the aquatic and fish resources which may derived from ghost fishing, or increasing the Artificial reefs can be placed in waters for a wide potential fishing effort because of greater attainability variety of purposes from research purposes to (Fabi et al., 2015). For preventing these negative effects recreational and marine preservation. Therefore, they from happening, all the potential risks should be may be designed differently in order to perform analysed and considered in reef plan (Polovina & Sakai, distinctive intended functions. As it was aforementioned, 1989). artificial reefs constructed to play natural reefs’ roles in Form a socio-economic aspect, in the absence of an the marine area. Oil and gas unused assets may be appropriate management plan, the deployment of converted to artificial reefs in place or transport to a new artificial reef can increase conflicts between the users of area. In some situations, installations may begin to carry the reef and overexploitation of the reef resources. It is out the features of artificial reefs during their active the reason of necessity of a comprehensive management operations. plan in order to mitigate and eliminate the potential • Although the purposes of artificial reefs placement negative impact (Ramos, 2014). Although the socio- cannot be excluded, the following objectives are economic effects arising from artificial reef have
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