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National NGO Monitoring of the Azerbaijan Section of the Baku-Tbilisi-Ceyhan Pipeline

ENVIRONMENTAL WORKING GROUP

R E P O R T

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National NGO Monitoring of the Azerbaijan Section of the Baku-Tbilisi-Ceyhan Pipeline

ENVIRONMENTAL WORKING GROUP

R E P O R T

Working Group Members:

Fikret Jafarov - Project Coordinator, Executive Director of NGO Friends of Earth Shamil Huseynov - Project Evaluator, Director of NGO Engineering Association Sabuhi Huseynov - Group Member, Caucasus REM Saleh Huseynov - Group Member, Agroeco-Consulting Centre Elshad Mammadov - Group Member, Ecological Fund Tural Abbasov - Group Member, Renessans Public Union Namig Rzayev - Group Member, ECOMED NGO

Baku – 2005

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Financial Support Provided by Azerbaijan OSI-AF

Disclaimer

The content and ideas in this report should be treated as the personal opinion of the authors. In no way does this report reflect the policies or views of the project sponsor, its members or relevant organisations. The authors are solely responsible for any mistakes, omissions or misinterpretations of the data and analysis. All group members signatory hereto are in agreement with the contents of this report.

Fikret Jafarov Shamil Huseynov Sabuhi Huseynov Saleh Huseynov Elshad Mammadov Tural Abbasov Namig Rzayev

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CONTENTS

1. EXECUTIVE SUMMARY...... 5 2. EVALUATOR’S STATEMENT...... 16 3. INTRODUCTION ...... 18 4. METHODOLOGY ...... 21 5. MONITORING RESULT...... 24 5.1 SUMMARY AND ANALYSES OF SOCIOLOGICAL SURVEY...... 24 5.2 BTC ‘S ENVIRONMENTAL MANAGEMENT PROGRAMS AND PLANS:...... 36 · ANALYSIS OF FULFILMENT OF MANAGEMENT PRINCIPLES...... 36 · WASTE MANAGEMENT...... 36 5.3 MONITORING RESULTS ON PROTECTION OF BIODIVERSITY...... 41 5.4 MONITORING RESULTS ON UTILIZATION AND PROTECTION OF WATER RESERVES...... 47 5.5 MONITORING RESULTS ON ATMOSPHERE...... 54 5.6 MONITORING RESULTS ON SOIL...... 61 6. CONCLUSIONS AND RECOMMENDATIONS ...... 72 7. ACKNOWLEDGEMENTS...... 72 8. BIBLIOGRAPHY ...... 97 9. PARTICIPANTS OF ECOLOGICAL MONITORING...... 101 10. ATTACHMENTS...... 104

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1. EXECUTIVE SUMMARY The monitoring project was implemented in August-November 2005 by financial and technical support of the Open Society Institute–Assistance Foundation (OSI-AF). For the first time in Azerbaijan, 27 local NGOs participated in the implementation of the monitoring project on the basis of the Memorandum of Understanding signed by and between OSI-AF and BP on April 22, 2004 and Grant Programme No. 12312, dated September 2004.

When implementing the project, the Environmental Monitoring Working Group had the following targets: · Monitor the impact of pipeline construction and operation activities on the environment and natural resources and the study subsequent environmental conditions · Assess the implementation of obligations undertaken by BP, BTC and their contractors to ensure environmental protection and public safety during pipeline construction and operation phases · Prepare recommendations on mitigating the negative impacts of pipeline construction on the environment and human health, in order to eliminate the shortcomings while fulfilling the obligations The Environmental Monitoring Working Group adhered mainly to the following directions of activity to achieve the pre-defined targets:

Monitoring Sub-Working Group on Sociological Survey: · Sociological Survey questionnaire forms were developed and the surveyors were provided with training on methods and techniques of conducting surveys in the communities · Distributed 812 questionnaires to 18 communities along the pipeline. Analysed 550 questionnaires and developed a report based on the analysed questionnaires · Members of the Monitoring Group, including F. Jafarov, N. Rzayev, S. Huseynov, T. Abbasov, visited these communities to verify several survey-related issues

Monitoring Sub-Working Group on the Ecological Policy and Environmental Management : · Analysed the ESIA document of the BTC oil pipeline, reviewed the obligations undertaken by the company and prepared a list of essential standards · Met with environmental experts from BTC and its contractors CCIC and Petrofac and reviewed their environmental management plan, obtained detailed information on the activities performed on the basis of the environmental management plan · Monitored and assessed the result of implementation of environmental management by BTC and its contractors Monitoring Sub-Working Group on Biodiversity:

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· Monitored and analysed the conditions of flora and fauna and the impact of the activities of BTC and its contractors on flora and fauna and mitigation measures · Analysed and assessed the activities performed on various types of biodiversities along the pipeline corridor and in infrastructures and camps Monitoring Sub-Working Group on Conditions of Water Recourses: · Analysed the actions taken by BTC and its contractors to protect rivers and other water sources (springs, lakes, etc.) and to prevent water contamination in those areas where BTC and its contractors are operational · Reviewed and assessed water contamination, water treatment and its rational utilization, and waste water management along the pipeline corridor and in infrastructures and camps · Group members made observations and five trips to the both BTC oil pipeline sections which is still under construction and is complete Monitoring Sub-Working Group on Atmosphere: · Analysed the conditions of the atmosphere and the air pollution prevention measures in the areas where BTC and its contractors are operational · Studied and assessed the emissions from the incinerator along the pipeline route and in infrastructures, camps and at the Kurdamir Pump Station · Group members made six trips to the both sections of BTC oil pipeline which is still under construction and is complete Monitoring Sub-Working Group on Soil: · Analysed activities performed regarding Soil protection and its rational utilization by BTC and its contractors. Reviewed and assessed the conditions of soil and reinstatement along the oil pipeline route and in infrastructures and camps · Group members made six trips to the both sections of BTC oil pipeline which is still under construction and is complete One representative from each of the seven NGOs participated in the activities of the Environmental Working Group. They worked in collaboration with 11 experts in various fields. Moreover, monitoring group members and experts held discussions and monitored pipeline-crossed territories. The results obtained from the monitoring activities were analysed by the group members. The following conclusions were reached as the result of discussion with experts and consultants.

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ACHIEVEMENTS 1. Ecological Policy and Environmental Management: The BTC environmental, health and safety management plans, corporate policy on environmental protection and management system and obligations of BTC in the line with Host Government Agreements have been developed. The EIA documents include all of the required sections, which have covered a large volume of information. Environmental impact minimisation measures theoretically meet modern requirements and international standards. The management structure has been established on the basis of theoretically identification individual responsibilities and duties. Company management structures are interrelated and vertically structured, which is comprised of the organisational chart of contractors. All structures have approved work plans, accurate statements and control schedules. Moreover: · When operating vehicles and construction machinery safety procedures are followed in the most cares · BP Golden Rules related to environment and health and safety are extensively applied through using posters and leaflets (mostly in English) within camp areas and infrastructure · This has been arranged on a higher level at the Sangachal Terminal. Even inside the canteen, information on BP Golden Rules is displayed in two languages on wide screens 2. Waste Management. Prior to the commencement of project, BP/BTC and stakeholders developed the Waste Management Procedure, which was agreed upon with the relevant authorities. The aforementioned document mainly consists of the incineration of domestic wastes, land filling and the theoretically full treatment of sewage waters. Moreover: · Domestic wastes are initially segregated at the Sangachal Terminal. As such, there are containers everywhere for various waste streams 3.Biodiversity: Based on a series of consultations with stakeholders, in Azerbaijan BP developed comprehensive and significant Strategy on Biological Diversity. This strategy proposes the implementation of local and regional projects, which will include a variety of activities aimed at increasing general knowledge on biodiversity and biodiversity awareness. This also theoretically coincides with the long-term interests of BP in Azerbaijan, as well as the commitments stated by BP CEO Lord John Browne in April 2000, who expressed his objective, “to have a real, measurable and positive impact on biodiversity.” The monitoring group has acquainted itself with various below indicated projects implemented by BP/BTC. Furthermore: · The Rehabilitation of the Tugai Forests along the Kura River was selected as a long-term project to ensure the protection of biological diversity in the region. This project proposes the implementation of a variety of activities, including the reforestation of a 10ha plot of land and the protection and reforestation of an additional 150ha plot · BP hosts competitions for short-term projects and biodiversity in Azerbaijan and Georgia. Three competitions have been held among local NGOs to date. Projects proposing greenery planting and the implementation of research on the landscape, fish and birds were declared as the winners of competition and are currently being implemented · The implementation of the Spur-Thigh Tortoise Conservation Plan and Captive Breeding Programme is ongoing as part of the Sangachal Terminal Expansion

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Programme. This project has been developed to protect the red-listed spur- thigh tortoise species · BP has also implemented a series of projects aimed at increasing general awareness and child education on biodiversity. BP’s involvement in the protection of biodiversity throughout the regions of Azerbaijan includes the development of several publications such as, Amazing Living Organisms of the Caspian Sea, Amazing Fish of the Caspian Sea and Oil and Biological Resources of the Caspian Sea, as well as numerous posters of fish and mammals. These publications have been distributed at various schools and higher educational institutions throughout Azerbaijan. Three television advertisements on sustainable development were broadcasted on Azeri television channels. One of the advertisements was geared towards corporate biodiversity policy. In addition, BP created an animated cartoon series and documentaries on biodiversity to increase awareness among Azeri youth · BP and its partners conducted several studies as part of the baseline environmental studies and EIA report, which included an analysis of the causes of mortality among seals, monitoring of birds and fish, macro-benthos, the chemical composition of water, sediments, underwater monitoring, re- vegetation, etc. · The BP Caspian Environmental Programme spans the five littoral countries of the Caspian Sea. A number of environmental studies and monitoring projects have been included in the Caspian Environmental Programme, theoretical monitoring of marine and onshore habitats, including the study of myriad fish, birds and mammals had been conducted under these projects 4. Water Reserves: 71% of the respondents involved in the questionnaire survey stated that no changes had occurred in the quality and quantity of water springs and water reservoirs in the areas where the pipeline construction conducted by BTC and its contractors; 63.3% stated that no changes had occurred in the quantity and quality of water wells. The percentage of those who indicated that the conditions of water springs, water reservoirs and water wells had improved was 16.2%, 14% and 18.1%, respectively. 57.5% of the respondents involved in the survey stated that BTC construction had had no impact whatsoever on the course of small rivers; 69.2% said that the pipeline construction did not cause sewage waters to contaminate the environment; 53% of respondents stated that laying pipeline in water channels had no impact whatsoever on the quality of water; 75.6% said that BTC pipeline construction did not contaminate the soil and water; 69% stated that the aforesaid construction activities brought no harm to the environment; and, the percentage of those who indicated that wastes were removed from the territory was 38.9%. Moreover: · Domestic sewage waters are theoretically treated by biological treatment plant and are reused at the Sangachal Terminal · The treated discharge waters are used for the irrigation of soil around the Sangachal Terminal · As the water of the Baku main waterline is not in compliance with BP standards the water treatment plants are installed to purify the water for use as drinking water 5. Atmosphere: Of the respondents involved in the survey, 70% answered, “No,” to the question as to whether they felt discomfort as a result of the dust generated by exhaust gases and the movement of vehicles and machinery involved in pipeline construction.

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6. Soil Conditions:

· Some times matting is applied at areas under risk of high erosion

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Opportunities for Improvement 1. Ecological Policy and Environmental Management: The fulfilment and control of environmental management requirements was not arranged at the required level in the BTC ‘s contractors and subcontractors. The companies involved in construction activities conducted low-level educational and awareness activities during BTC pipeline construction. As to whether they were aware of the actions implemented to protect the plant and animal kingdoms, 73.3% of respondents stated, “No.” A deficiency observed in the environmental management is that documentation was primarily maintained in English. This means that the requirements of the Law on the State Language of the Azerbaijan Republic are not being met. It should be noted that the BTC and CCIC maintain all of their main documents in English which cause difficulties for public to make an acquaintance with them.. 2. Waste Management: BTC and its contractors have made a commitment to manage wastes in accordance with European standards. However, relevant BTC services have failed to arrange for the fulfilment of commitments in the required manner at sites where the monitoring was conducted. Company contractors fail to ensure the quality implementation of the commitments made under BP rules and standards on sites. Moreover: · Several waste containers were checked within the Sangachal Terminal during the inspection. Prohibited substances and wastes were identified within these containers, although they had indicated otherwise. It was also observed that wastes accumulated for incineration at the Kurdamir Camp contained several items, which are not allowed to be incinerated · The main provisions of the waste management rules adopted by BP/BTC (i.e. not incinerating domestic wastes, completing waste-water treatment) are being violated by the contractor. For example, АА Services regularly transported accumulated waste to the Baku and Sumgayit waste dump areas where they had arranged for its incineration. This is against the aforementioned rules. Moreover, MESCO transports domestic wastes that have accumulated in the camps and varying infrastructure to Kurdamir for incineration · As has been observed, the environment has been polluted with domestic wastes and, in particular, discarded plastic bags in all of the territories where pipeline construction has been ongoing. In Akstafa, local residents stated that a number of livestock were poisoned by these wastes. 3. Biodiversity: Azerbaijan’s unique flora and fauna have not been properly reflected by BTC’s documentation on biodiversity (EIA, Biodiversity Strategy, etc.), which seems to limit the effectiveness of measures aimed at protecting and breeding fauna and flora species. CCIC and Petrofac representatives verbally provided the monitoring group with information, but provided no documents regarding the relocation of fauna species observed within the pipeline corridor as envisaged in the ESIA document. It was difficult to assesss the implemented activities as BP/BTC failed to deliver the results of the internal monitoring on biodiversity to the monitoring group. The following was identified during the course of the monitoring activities: · BTC’s commitments to protect biodiversity were not honoured to the full extent. Although the ESIA document envisaged the protection of several types of endangered plants and animals, which had been entered into the Red Book, it was revealed during the monitoring that measures had been taken to protect only one plant and animal species Iris and tortoise. 10 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

· Pipeline construction impacted biodiversity, albeit this impact was insignificant. In some areas, trees were cut down and vegetation and lairs of wild animals were destroyed · Local communities are not sufficiently supplied with electric energy and domestic gas. They satisfy this demand by cutting timber and greeneries. Consequently, these ecosystems are destroyed. This is inadmissible on territories crossed by a pipeline as significant as BTC · A key measure designed to ensure successful erosion control is the introduction of the Vetiveria plant on a pilot area of the Sangachal Terminal. We think that the introduction of Vetiveria, which was imported from South Africa, may lead to negative consequences 4. Water Resources: As a result of the Sociological Survey and investigations of the complaints expressed by the local community, it was discovered that the irrigation systems were not rehabilitated in a timely manner in some areas (Samukh, Shamkir and Tovuz districts). These irrigation systems were put out of operation during the construction activities and rehabilitation measures were delayed. Moreover: · The operation of infrastructure and the treatment of the domestic sewage waters generated at the camps during construction do not undergo all necessary procedures (i.e. mechanical treatment, physiochemical treatment, chemical treatment, biological treatment, etc.) · Monitoring indicates the disturbance of natural watercourses and partial alteration of riverbed structures occurred as a result of pipeline crossings. Furthermore: · Highly toxic wastewaters generated during incinerator operations are stored untreated for a long period of time 5. Atmosphere: The assessment of atmospheric impacts during BTC construction shows that emission sources may be considered to be temporary in terms of time and space. Although the locations of these sources do not change at the pump station and Sangachal Terminal, the construction process is temporary and the concentration value of the emissions generated during the course of construction activities are close to the allowable concentration limits. Moreover, they are likely to exceed them. The generators are inevitable factors, which need to be considered to be emission sources. In some cases, the harmful emissions produced and emitted by the generators may exceed allowable concentration limits due to long working hours. The chief composition of these emissions is greenhouse gases, which is contradictory to the terms of the agreement on reducing GHG as stipulated by the Kyoto Protocol. Moreover: · The main negative environmental impact of BTC pipeline construction and, specifically, trenching works was dust. The sociological inquiry has also shown that the majority of the local population claimed dust to be an impact · Another important issue is the specification of relevant standards, which define the compensation amount to be paid for dust damage

6. Soil Conditions: Occasionally, the requirements and norms for storing and protecting topsoil were not observed during pipeline construction and the installation of relevant infrastructure. When making calculations, it was revealed that the height and sloping angle of the fertile topsoil exceeded norms. This may cause the soil’s natural conditions and fertile layer to deteriorate. The spread of construction activities beyond the boundaries of the construction corridor has caused damage and polluted agricultural crops along the transportation routes. Furthermore:

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· Representatives of BTC Co. stated that the stripped topsoil was taken from Sangachal Terminal and delivered to the Ministry of Ecology and Natural Resources and, subsequently, to the Garadagh Executive Authority. However, investigations proved inconsistency in this information. It was also revealed that the topsoil had not been stripped on the territory where the temporary accommodation camps are located in Kurdamir and Shamkir · Although the representative of the respective company has claimed that topsoil was removed at the CCIC and Petrofac temporary accommodation camps in Yevlakh, he refused to show the place where topsoil stored. · Due to the absence of concrete covering the drainage the sides of channel around the Sangachal Terminal, which is supposed to prevent runoffs from entering the site area, a portion of the land has been exposed to erosion. Generally, the technology applied for sowing the seeds of wild plants along the pipeline area to prevent erosion has been improperly designed. Thus, due to topsoil grading activities conducted parallel to the pipeline route along the hill slopes, the water has exposed the territory to erosion · The extent to which reinstatement and vegetation activities have been conducted on monitored territories is unsatisfactory. Therefore, these activities should be repeated · Construction activities (trenches excavation, pipe–laying, etc.) and the movement of heavy lorries have caused significant damage to the local traffic infrastructure, particularly to roads. The damaged infrastructure has not been rehabilitated. In addition, the movement of these heavy lorries and machinery has also damaged facilities of farming significance. Consequently, this has had a negative impact on the environment (increase in dust and draught) in these areas

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PROPOSALS AND RECOMMENDATIONS

1. Ecological Policy and Environmental Management: BP/BTC should reinforce control over contractor performance and considerably update their monitoring system. Furthermore: · The key issue concerns the commencement of environmental awareness studies at secondary schools and teaching younger generations to care for the environment. All the respondents who involved in the questionnaire survey expressed the abovementioned desire · All documentation related to environmental management should also be provided in the Azeri language

2. Waste Management: The full implementation of the waste management plan should be ensured and all contractor organisations should be required to comply · It is also important to install modern equipment for disposing domestic and toxic wastes

3. Biodiversity: All previous and current programmes and projects on biodiversity must be redeveloped taking into consideration the entire list of flora and fauna species. Moreover: · It is advised that the desk studies be substituted with the field studies during the development of the EIA report. Trained specialists must execute these tasks · It is necessary to intensify activities designed to conserve and rehabilitate endangered species of flora and fauna. This will require the establishment of a joint working group with community representatives. Moreover, a specific action programme should be developed and implemented. Initially, this programme should provide for the assesssment of the conditions of all endangered species and the implementation of specific actions to improve their conditions · Due to the prolongation of construction activities, it is necessary to expand and continue the implementation of the Spur-thigh Tortoise Conservation Programme as part of the Biodiversity Protection Programme · It is crucial for flora and fauna monitoring to be conducted during the spring, early summer and autumn but not during the winter. This is the only option capable of providing any insightful information on flora and fauna in any specific area. Monitoring activities should be focused on the assessment of the general conditions of biodiversity and the impact of BTC pipeline construction · It is crucial for forestation activities to be conducted on territories located along the route of the pipeline, destroyed forests to be restored and protected and greeneries to, by and large, cover a more expansive territory. 35.9% of the respondents who involved in the questionnaire survey expressed abovementioned desire. Therefore, firstly, the issue regarding supplying the community with energy should be resolved · The introduction of species harmful to the biodiversity of Azerbaijan to ensure erosion control (i.e. Vetiveria) must be agreed upon with the relevant state bodies. The implementation of this process should be controlled by state bodies · Information on the results of the biodiversity monitoring conducted by BP/BTC should be collected at a single centre and made available for public use

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4. Water Resources: Seasonal agricultural activities should be taken into account during the construction phase and a relevant action plan should be developed and applied to ensure the reinstatement of irrigation systems (inter-farm and internal irrigation channels and collectors) damaged during pipeline construction. Furthermore: · The use of modern treatment technology and facilities for the complete treatment of the sewage generated during the course of the construction (current equipment does not allow for the complete treatment of sewage water), as well as the disposal of treated sewage to water reservoirs after testing should be legalised · It is necessary to identify whether the failures discovered in the water reservoirs during the construction and project-implementation phases is a general characteristic of the pipeline area. It is also necessary to consider the hydrometric and hydrologic characteristics of the area and apply a series of measures aimed at consolidating riverbanks and riverbeds, erosion control and preventing water contamination · It is nearly impossible to suggest any general or specific opinions or to provide a long-term forecast on the basis of the monitoring, as only a very small portion of the watercourses has been reviewed. The sensitivity of the water resources to contamination and their exposure to more intensive contamination (during pipeline construction or operation) call for the implementation of long-term monitoring. It is also necessary to utilise pertinent monitoring equipment or conduct laboratory analyses of taken samples · Modern equipment should be installed and used for the treatment of toxic waters

5. Atmosphere: Although the generator emissions produce high concentrations of harmful gases around the territory of the pump station, it is necessary to discuss the significance of corrective measures depending on the dimensions of the sanitary- protection zone. In addition, relevant programmes must be developed. Moreover: · It is also necessary to increase the scope of wetting and soaking activities during excavations of planned trenches, which will mitigate the impact of dust. Workers must be provided with special personal protective equipment · Another important issue is the specification of compensation and relevant tariffs for paying compensation for dust damage. Therefore, it is necessary to ensure that the terms and conditions stipulated in the contract are met. According to the Production Sharing Agreement and Host Government Agreement signed by the BP Azerbaijan Business Unit, BP and BTC are exempt from taxes. However, compensation for contamination is not included in the list of tax exemptions

6. Soil Conditions: Identify and implement urgent measures to eliminate shortcomings as soon as possible or prevent them from happening on other areas. Firstly, such land areas must be specified, an inventory of these areas must be made and required reinstatement activities must be implemented. This will require the establishment of a joint working group with community representatives. Moreover, a specific action programme should be developed and implemented. Therefore, it is necessary to perform the following: · Expand NGO potential in conducting environmental monitoring on project- affected lands and encourage NGO participation during the implementation of reinstatement activities · Identify all pipeline areas exposed to erosion and develop and implement a set of actions

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· Develop and implement a relevant programme and measures to create an inventory of eroded land areas, payment of compensations to landowners in Samukh, Shamkir, Tovuz and Akstafa and restore these lands to their original condition · All failures identified during the course of the monitoring should be discussed with the participation of the specialists of the customer, contractor and NGO monitoring group · A relevant programme should be developed and implemented to ensure land rehabilitation and the restoration of vegetation Note: For information on suggestions and recommendations as to how to rectify damage caused to infrastructure and facilities by heavy machinery, please refer to the relevant reports developed by the working groups on the “Use of Local Resources” (Assessment of the Impact Caused by BTC Pipeline Construction on Economical Status of the Regions) and “Social Impacts of BTC Pipeline during the Construction Phase.”

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2. EVALUATOR’S STATEMENT The seven members of the Environmental Working Group participated in comprehensive capacity-building training in July-August 2004, together with 11 experts involved in the implementation of the ecological monitoring. The training was organised by OSI with the support of BP. All of the working group members actively participated in the discussions. They displayed their skills in both Q&A and practical training sessions. Furthermore, they significantly benefited from the preliminary training programmes. As a result of these valuable training sessions, the working group acquired the required skills to develop a project proposal for the implementation of environmental monitoring along the BTC oil pipeline in September and December of 2004. At the beginning of the monitoring, the working group divided into subgroups on environmental management, soil, water, the atmosphere, biodiversity and socio- ecological surveys. The group became acquainted with the commitments of BP, BTC and CCIC and the ESIA document based on the responsibilities shared by the project. Monitoring group members also defined their responsibilities in terms of field observations along the pipeline, identified questions requiring answers and conducted consultations with other accomplished experts regarding the implementation of the monitoring. The timeframe and work schedule allocated under the project for the implementation of the monitoring allowed the working group to reach the majority of their goals and objectives. The working group demonstrated an adequate amount of professionalism, which allowed them to implement the monitoring efficiently as was demanded by the project. During the project’s preparatory period and training sessions, several group members, who had previously failed to establish a positive relationship with one another, worked to bridge this gap through coordinating activities amongst themselves. This occurred during the first week after the project’s commencement. An understanding business atmosphere among the working group members and experts involved in the project enabled the group to demonstrate a high level of cooperation throughout the duration of the project. The BP representatives responsible for facilitating the monitoring arranged fieldtrips for the working group corresponded to all appropriate standards. Despite several delays, BTC and its contractors assisted the monitoring group significantly in obtaining the data and documents necessary for the project’s successful implementation. Group members used the statistically correct sampling method for documentation, data- gathering and analysis. Group members and experts involved in the implementation of the monitoring had a systematic, creative and objective approach towards the issues raised during the course of the monitoring. Moreover, these individuals demonstrated quality performance and expertise and maintained a balanced and methodical approach during monitoring activities. As a result of their hard work, the monitoring group was capable of developing a high-quality report, which was rich with concrete facts and photos. Primarily, the report includes accurate observations and proposals, as well as conclusions and recommendations supported by sound evidence. In a word, it should be noted that the ecological monitoring group has achieved the goals and objectives established by the action plan. The successful implementation of

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the project is an important step towards the implementation of the public monitoring, which will gauge the environmental impact of these gigantic global energy facilities.

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3. INTRODUCTION With a total length of 1,750km and passing through the territory of Azerbaijan for 443km, the BTC pipeline will be commissioned in 2005. A total of $3.6bln will have been spent on the project’s completion. The BTC pipeline’s throughput capacity is 1mln bpd (or 50mln tonnes per year). Construction of the main terminal, the pipeline and its infrastructure is on the verge of completion (70%-90%). It should be emphasised that the project is coordinated and implemented in parallel with the Baku-Erzurum South Caucasus Pipeline (SCP) Project, which will enable the transportation of gas produced from the Shah Deniz Field. Within Azerbaijan, the pipeline passess through 13 administrative districts and 135 settlements (including 97 villages). The pipeline and its infrastructure cover 2,548.7ha. The pipeline crosses 16 water basins, or rivers, and twice traverses the Kura River. The total weight of the pipes transported on roads along the route of the pipeline exceeds 1.5mln tonnes. A total of 9.5mln km are travelled annually by various types of vehicles (heavy vehicles, trucks and light vehicles). In terms of the scale of construction activities and the capacity of the project, the BTC pipeline is one of the largest projects not only in Azerbaijan and the region but in the entire world. It is quite apparent that the implementation of such large-scale activities may possibly result in significant and/or negative changes to the environment of Azerbaijan.\ During the pipeline project’s development, serious large-scale actions aimed at minimising these negative outcomes were planned. They propounded the safety, health and environmental standards provided for such global projects. Nevertheless, the general public in Azerbaijan and numerous countries throughout the world have taken an interest in the level and quality of the company’s compliance with these standards. Immense interest has been drawn to the implementation of measures for protecting the environment during pipeline construction. Firstly, this was related to a lack of sufficiently correct and independent information. BTC management and relevant state agencies provide the general public with irregular superficial information regarding the activities conducted in the sphere of the environment and ecology. Information is inadequate regarding activities performed at various sites, its status and negative impacts on the environment and/or natural landscape and the activities of local communities. Given these circumstances, conducting an independent social and environmental monitoring is not only a matter of critical urgency but of grave importance for informing the general public and local communities as to these conditions. Such monitoring notifies the local population as to the project’s compliance with requirements and norms related to protecting the environment during construction. The results of the public monitoring and monitoring of the Chad-Cameroon Pipeline indicate that the deficiencies revealed during the monitoring lead to a minimisation of negative environmental impacts. They increase the level of safety amongst the people and environment as a whole. In turn, the control of the general public determines the level of responsibility attached to the companies and the joint cooperation of all of the interested community groups.

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Project Aims and Objectives

Project aims include the following: · Studying the impact of the pipeline on the environment and natural resources during its construction and future operation, as well as the study of the ecological situation established within that period · Assessment of the obligations undertaken by BP/BTC and its contractors to ensure the implementation of measures for environmental protection and the safety of the population during the construction and operation of the pipeline · Developing recommendations with the purpose of minimising the negative impacts of the pipeline on the environment and human health and its hazards to remove the drawbacks encountered during the implementation of the aforementioned obligations The following issues have been planned to be studied to achieve the main project goals: · Ecological Policy and Environmental Management: Analyse and assess the conditions regarding the implementation of environmental management by BTC and its contractors · Waste Management: Analyse and assess the conditions regarding the principal obligations undertaken to manage wastes · Biodiversity: Analyse and assess the conditions of flora and fauna and the impact of the activities of BTC and its contractors on flora and fauna and mitigation measures; · Water Resources: Analyse and assess the actions undertaken by BTC and its contractors to protect rivers and other water sources (springs, lakes, etc.) and to prevent pollution in areas where BTC and its contractors are operational; analyse and assess the rational utilisation of water and waste-water management · Atmosphere: Analyse and assess the conditions of the atmosphere and the preventive measures for air pollution undertaken by BTC and its contractors in the areas where they are operational · Soil Conditions: Analyse and assess the activities performed regarding the protection, rational utilisation and reinstatement of soil by BTC and its contractors

A public monitoring database should be formed upon the collection of the necessary information (See Appendices). The aim of creating the database is to inform the general public and relevant interested bodies about the ecological and environmental conditions established within pipeline-affected areas. The database will ensure that measures for protecting the environment and environmental codes and standards are upheld during construction and operation. Increasing the level of awareness in communities on pipeline-crossed territories will help the local population to obtain impartial information about processes related to pipeline construction on their lands. Increased awareness will facilitate the establishment of mutual understanding between local communities and the personnel involved in current and future pipeline operation and activities.

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The accurate information acquired during the course of the monitoring will assist all interested bodies, including relevant state agencies and public organisations, to utilise existing capacities more efficiently. The information will allow the local population to focus their efforts on solving priority issues related to environmental protection and improve the ecological situation. Thus, the project outcomes will have a positive impact on large areas and increase the level of mutual understanding and cooperation among various layers of civil society.

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4. METHODOLOGY Ways and Means for Project Implementation The following pre-planned actions were implemented to achieve the stated objectives: · Environmental monitoring of the constructed section of the pipeline within the Shamkir-Boyuk Kasik area · Monitoring of the pipeline route, temporary camps for personnel and pipeline infrastructure facilities (terminal, pumping stations, pigging installations, etc.) · Conducting the Social Survey among local communities residing on pipeline- crossed areas. The Environmental Monitoring Group comprised of NGO representatives and specialists (experts) conducted its activities in the following spheres indicated in BTC Pipeline Project documentation (Environmental Impact Assessment, Environmental Codes and Standards): · Environmental management, including compliance with environmental codes and standards. Waste Management · Condition of flora and fauna within pipeline-crossed areas · Condition of water resources and facilities (use of water, contamination of surface and subsurface waters with domestic and industrial waste waters, etc.) · Condition and pollution of the atmosphere during construction and in the course of pipeline operation, its impact on human health (discharges into the air from vehicles and equipment) · Condition of soil, erosion processes, impacts on surrounding land plots and natural landscape, effectiveness of reinstatement activities within pipeline- crossed areas Alongside the monitoring, a dedicated group conducted the Sociological Survey within pipeline-crossed areas to understand public opinion and determine the level of impact in population centres. The project leader (coordinator), in liaison with the heads of the working sub-groups in various areas, established a work schedule, the scope of the activities to be performed and the scope and conformity of the groups’ interim reports. The project coordinator also implemented control over all organisational issues and the proper (unequivocal) use of financial resource. In accordance with the approved plan, the working group leaders were responsible for the activities conducted at the various sites, as well as the quality and accuracy of the information that they obtained. The project-implementing individuals ensured the fulfilment of all of the planned activities and were responsible for the quality of the information acquired. A digital camera was utilised to record the facts discovered in the course of the monitoring. Each photograph has been dated and accompanied with relevant comments of both the working group and BTC personnel and its contractors. According to the methodology for conducting public monitoring, all of the data is based on facts. All of the data obtained has been processed and compiled as a database. Information on the monitoring results, as well as the environmental conditions prior to BTC pipeline construction, have been collected in the database. In addition, preliminary subject reports on each area of the studies have been developed (by working group members and relevant experts) and a summarised report about the 21 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

monitoring results has been developed. Following discussions between the Open Society Institute and BTC/BP representatives, the report will be prepared for printing and placed on an Internet website. The following issues were examined during the monitoring programme: Sociological Survey: · Sociological Survey questionnaire forms were developed to review all issues and the surveyors were provided with training on methods and techniques of conducting surveys in the communities · Distributed 812 questionnaires to 18 communities along the pipeline. Analysed 550 questionnaires were analysed. Data and analysis have been incorporated into sections of report as relevant · Members of the monitoring group, including F. Jafarov, N. Rzayev, S. Huseynov, T. Abbasov, visited these communities to verify several survey- related issues. Ecological Policy and Environmental Management: · Analysed the ESIA document of the BTC oil pipeline, reviewed the obligations undertaken by the company and prepared a list of essential standards · Met with BTC and environmental experts from its contractors CCIC and Petrofac and reviewed their ecological management plan, obtained detailed information on the activities performed on the basis of the ecological management plan · Monitored and assessed the fulfilment of environmental management by BTC and its contractors Status of Biodiversity: · Monitored and analysed the conditions of flora and fauna and the impact of the activities of BTC and its contractors on flora and fauna and mitigation measures · Analysed and assessed the activities performed on various types of biodiversities along the pipeline corridor and in infrastructures and camps Status of Water Resources and Facilities: · Analysed the actions undertaken by BTC and its contractors to protect rivers and other water sources (springs, lakes, etc.) and to prevent pollution in areas where BTC and its contractors are operational · Reviewed and assessed water pollution, water treatment and rational utilisation and waste-water management along the pipeline corridor and in varying infrastructure and camps · Group members made observations and five trips to the BTC oil pipeline both to sections still under construction and completed sections Status of Atmosphere: · Analysed the conditions of the atmosphere and the preventive measures for air pollution undertaken by BTC and its contractors in the areas where they are operational’ · Studied and assessed the emissions from the incinerator along the pipeline route and in infrastructures, camps and at the Kurdamir Pump Station · Group members made observations and five trips to the BTC oil pipeline both to sections still under construction and completed sections

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Soil Condition: · Analysed activities performed regarding land protection and rational utilisation by BTC and its contractors. Reviewed and assessed the conditions of land and reinstatement along the oil pipeline route and in varying infrastructure and camps · Group members made six trips to the BTC oil pipeline both to sections still under construction and completed sections

Note: The condition, usage and storage of wastes were also monitored during the monitoring process,

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5. MONITORING RESULT

5.1 SUMMARY AND ANALYSES OF SOCIOLOGICAL SURVEY The Sociological Survey on the environmental impacts of BTC construction was conducted in communities along the construction corridor. A key objective of the Sociological Survey was to ascertain the attitude of local communities towards BTC construction. The Sociological Survey of the BTC Pipeline Environmental Monitoring Project was conducted on the basis of a work plan, which was proposed within the frameworks of the project. The Sociological Survey of BTC Pipeline Environmental Monitoring Project was conducted by the Renessans Public Association. Survey-related inquires were sent to the heads of the respective subgroups on the atmosphere, water and soil. Sociological Survey questionnaires were developed by the head of the Sociological Survey subgroup based on information, which had been received from the sub-working groups as a result of the studies conducted by the association. The final questionnaire form was approved at a meeting of the working group by considering the opinions of all of the parties involved. The questionnaire is attached to this report as Appendix 11. A total of 800 copies of the approved questionnaire forms were printed. A key aspect of implementing the Sociological Survey was selecting surveyors from the local communities. Therefore, Tural Abbasov and Irshad Abbasov, members of the association, visited the districts along the route of the pipeline and selected future surveyors. These individuals were chosen from among the local population to conduct the survey in pre-selected communities. Subsequently, they were invited for training in Ganja. The training programme lasted for two days. Future surveyors participated in interactive training sessions on survey techniques and methods. They learned how to deal with the respondents involved in the process. Additionally, they were provided with information on the significance of the survey and taught how to choose target respondents. They also were recommended to cover all layers of society in the local communities. From October 25-November 20, the Sociological Survey was conducted according to the project’s work schedule in the Akstafa, Shamkir, Samukh, Yevlakh, Kurdamir and Hajigabul districts. The survey covered three communities in each district. It should be noted that during the survey process, the local representatives received all of the necessary information from the local municipalities and conducted the survey on this basis. The information provided to these individuals allowed them to cover all of the existing social layers of these communities.

Photo No.1. Analysis of questionnaires

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Moreover, the surveyors were instructed to speak with local communities regarding issues, which were not included in the questionnaires. They were advised to learn more about their problems and to communicate their issues to the project team. For example, a quantity of livestock was poisoned as the result of environmental pollution and domestic waste. The explicit cause of the poisoning was polyethylene bags that had been discarded by construction employees in KP 402, KP 404 and KP 417 in Akstafa. Furthermore: · More than 30 households stated that they had been disturbed by the dust and noise caused by the movement of heavy vehicles in the Girag Kasamanli village. Some houses also sustained cracks due to the movement of these heavy trucks · suffered tremendous losses, as 12 hectares of clover field of Mr. Khalilov -the resident of Sarovlu settlement was destroyed · During BTC construction, irrigation channels were destroyed in Samukh. However, they were rehabilitated after the community complained in this regard · Several streets in the centre of the Hajigabul District and in Ranjbar village sustained damage as a result of the movement of heavy lorries. They have not yet been rehabilitated. Information regarding the abovementioned problems, among others, was communicated to the working group. The monitoring group verified these facts during the course of the monitoring. Detailed information regarding these facts can be obtained from the reports of the Monitoring Working Group on the Use of Local Resources (Assessment of the Impact of the BTC Pipeline on Economic Conditions of the Regions) and Monitoring Working Group on the Assessment of the Social Impacts of the BTC Pipeline during the Construction Phase. Later, the questionnaires that had been collected from the respondents were reviewed and analysed. The review process was implemented in several stages.

Photo No.2 During the Sociological Survey Of the 800 reviewed questionnaires, 550 met survey requirements. The reason why 170 questionnaires were not used during the analysis was because they had been completed by respondents living in disgruntled communities. Their negative answers to each and every question would have severely affected the objectivity of the survey. These respondents focused on land compensation and domestic problems. The remaining questionnaires were not included in the report due to their improper completion. Survey results were processed in several stages, including: · A software programme was developed to analyse the questionnaires · Survey results were transferred to the calculator’s memory for further analysis 25 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

· Surveys results were entered in tables and charts Of the respondents involved in the survey, 21% were women and 79% were men. There are two reasons for this disproportion between the number of female and male respondents. Firstly, a larger number of questionnaires completed by women were found unsuitable for analysis. Secondly, on many occasions, the questions were answered by men on behalf of their families as the head of the household. Of the respondents involved in the survey, 7.2% were under the age of 25; 26.9% were between the ages of 26-40; 52.8% were between the ages of 41-60; and, 13.1% were above the age 60.

350

300

250

Age Groups under 25 n

o 200

s 26 - 40 r e

p 41 - 60

–

r 150 over 61 e b m

u

N 100

50

0 Age Groups

Age Groups of Respondents

According to their professions, the respondents were classified as follows: Farmers -- 17%; educational professionals – 14.2%; those holding senior positions – 8.1%; engineers – 3.5%; entrepreneurs – 0.7%; workers -- 12.2%; medical professionals – 3%; traders – 2.2%; pensioners -- 13.1%; housewives – 4.4%; employed women – 11.6%; agricultural specialists – 6.3%; and, others – 3.7%.

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100 92 90 80 77

71 Farmer n 70 66 o s 63 Rural

r e

p Educationalis 60 – t

r Salary

e worker

b 50 44 Enginee

m r u Entrepreneu

N 40 34 r Labourer 30 24 Medical worker 20 19 Commercial 20 16 12 Trade 10 r 4 Retiree Housewife 0 Job Cluster Unemployed

Job Cluster Of Respondents

The questionnaire forms have been analysed and the results grouped according to the following spheres of monitoring. General Environmental Impact Assessment Of the respondents involved in the survey, 69% stated that no damage had been caused to the environment during pipeline construction; 21.8% stated that they did not know anything in this regard. The replies from respondents to the question, “How do you assess the condition of the environment after BTC pipeline construction?” were as follows: 9% stated that the environmental conditions improved after BTC construction; 6% stated that the conditions worsened; 59% stated that nothing had changed; and, 26% stated that they did not have any information in this regard.

Improved Worsened No changes I don’t know

Waste Management When asked how the construction company utilises construction wastes, 7.4% of the respondents stated that the construction company stored construction wastes at a single location and subsequently neutralised them; 3.5% stated that the construction company contaminated the territory with wastes; 38.9% stated that the wastes were transported from the territory altogether; and, 49.8% stated that they did not know anything in this

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regard. As to whether soil and water pollution was generated as a result of BTC pipeline construction, 75.6% of the respondents said, “No,” 1.3% said, “Yes,” and 19.9% said, “I do not know.”

Have you observed any residuals of domestic and/or industrial (construction) wastes in your area after BTC pipeline construction?

Yes No I don’t know

Consequently, it has been observed that the environment suffered minor damages from pipeline construction. Specifically, the environment has been contaminated with sewage waters and wastes. It was also observed that builders threw construction materials onto the construction sites along the route of the pipeline. This was observed mainly in the Yevlakh, Samukh and Shamkir districts. Environmental contamination from domestic wastes and, specifically, polyethylene bags was observed on all of the territories where the pipeline was constructed. The local community in Akstafa even mentioned that these wastes poisoned domestic animals.

How have the construction companies managed construction wastes?

Wastes have been stored in a single location and neutralized Area has been contaminated with wastes Companies have completely transported wastes I don’t know

Biodiversity and Education The companies involved in construction activities conducted low-level educational and awareness activities during BTC pipeline construction. As to whether they were aware of the actions implemented to protect the plant and animal kingdom, 73.3% of respondents stated, “No”; 1.3%, “Yes”; and 25.1%, “I do not know.”

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Which habitats require more attention in the area? Please select three of the following.

Pastures Trees/bushes Lakes/ water swamp areas Coastal areas Islands Rocky places Saline water Other

In response to the question regarding which types of natural habitats required special attention on the existing territories, 83.9% of respondents said, “Pastures”; 89.5%, “Trees”; and, 34.3%, “Territories with water.” A minor impact on biodiversity as a result of BTC pipeline construction was also observed. Of the respondents involved in the survey, 5.9% stated that pipeline construction had an impact on biodiversity; 71.4% stated that construction did not have an impact on biodiversity; and, 34.1% stated that they did not know anything in this regard. In response to whether they had witnessed any animals being killed or nests destroyed on the construction territory, 3% of the respondents stated, “Yes”; 73.4%, “No”; and 23.2%, “I do not know.” The overwhelming majority i.e. 73.8% of the respondents answered that the attitude of construction workers towards wildlife was not cruel. The local communities requested the construction companies to restore biodiversity and plant green grass within the pipeline-crossed zones, which would ultimately prevent wind erosion of the topsoil. Respondents consider the following actions to be essential for the protection and preservation of the plant and animal kingdoms: - Education and awareness 48.3%; - Legislation and supervision 26.9%; - Restoration and protection activities 30.4%; - Advertising and broadcasting 14.9%; - Propaganda 21.2%; - Monitoring 4.1%; - Fund and charitable activities 10.9%; - Determining impacts 1.1%; - Workshop 3.1%; - Other 0.6%; - None of the above 4.6%.

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Hence, people living in the construction territory hope that the activities implemented for the protection of biodiversity will focus on education, training, legislation, supervision, restoration and protection, as well as an advocacy campaign. What measures are applicable for the conservation of plant and animal species?

Education and awareness Advertising and broadcasting Legislation and supervision Determining impacts Restoration and protection activity Propaganda Monitoring Workshop Fund and charitable activities Other None of the above

After investigating this question, it can be concluded that regional NGOs should be empowered. The companies engaging in pipeline construction and operation should provide public awareness sessions on pipeline-crossed territories and ensure the active participation of communities in the implementation of legislation for restoring biodiversity, environmental protection and safeguarding the pipeline. Most of the respondents who involved in the questionnaire survey are not aware of the payment of compensation for the environmental damage In response to the question are you aware of the payment of compensation for the environmental damage 61.3% of respondents said: ”I don’t know” 31.7% said: ”No” and 6.6 % said: “yes” Detailed information regarding the answers to Question 34 about which activities should be conducted to protect the environment today and in the future is incorporated into the Appendix. When analysing the answers to the question, one reaches the following conclusion. Most of the respondents want the forestation activities to be conducted on territories located along the route of the pipeline, destroyed forests to be restored and protected and greeneries to cover a large territory. Of the respondents involved in the survey, 35.9% shared the abovementioned wish. The main reason why the communities gave priority to these issues is that they are not sufficiently supplied with electric energy and domestic gas. They satisfy this demand by cutting timber and greeneries. Consequently, ecosystems are destroyed. This is inadmissible on territories crossed by a pipeline of such significance as BTC. Therefore, firstly, the issue regarding supplying the community with energy should be resolved. Secondly, activities to improve the social welfare of the local communities should be conducted to protect the environment. This includes supplying rural communities with uninterrupted gas and electric energy, resolving domestic problems in villages i.e. constructing water supply pipes and sewage systems in villages. Resolving these issues may be achieved through expanding the use of

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alternative energy sources on pipeline-crossed territories. 26.5% of the respondents stated that alternative energy sources should be utilised. Restoring the natural landscape, protecting vegetation and restoring and protecting natural pastures also remain pressing issues. A certain percentage of the respondents i.e. 17.5% had expressed the abovementioned desire. Reconstructing communications and replacing old communication lines with new ones on territories along the route of the pipeline was a desire also expressed by the local communities. 11% of the respondents expressed this desire. A key concern of the local communities was the protection of the BTC pipeline. Local residents think that the pipeline needs to be protected to prevent potential damage to the environment. The communities also expressed their desire for domestic wastes to be managed in such way, so as to prevent environmental pollution. The last key issue that all of the communities stressed is that environmental education and awareness and teaching younger generations to care for the environment should be introduced into secondary school programmes.

Assessment of BTC Construction Impact on Water Sources

Most of the respondents answered that no changes occurred to water sources during BTC pipeline construction. 71% of respondents involved in the questionnaire survey said that no changes had occurred in water springs; 16.2% said that the conditions of water springs had improved; 3% said that conditions of water springs had worsened. Of the respondents involved in the survey, 71.2% said that no changes had occurred to the water reservoirs; 14.8% said that the conditions of the water reservoirs had improved; 4.1% said that the conditions of the water reservoirs had worsened. Of the respondents involved in the survey, 63.3% respondents said that no changes had occurred to the water wells; 18.1% said that the conditions of the water wells had improved; 4.1% said that the conditions of the water wells had worsened. Of the respondents involved in the survey, 57.5% said that BTC construction had no impact on the course of small rivers; 2.8% indicated that it had an impact on the course of small rivers; and, 39.7% noted that they did not know anything in this regard.

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Did you notice any changes in the volume and quality of the water sources in your area during construction?

Improved

Worsened

No changes

I don’t know

Decreased volume of water in water springs

Increased volume of water in water springs

Improved quality of water springs

Worsened quality of water springs

No changes whatsoever in water springs Decreased volume of water in water wells Increased volume of water in water wells Improved quality of water in water wells Worsened quality of water in water wells

No changes whatsoever in water wells

Did you observe any environmental contamination generated by sewage as a result of BTC pipeline construction?

Yes No I don’t know

In response to whether the environment was contaminated by sewage water as a result of BTC pipeline construction, 69.2% of the respondents stated, “No,” 1.5%, “Yes,” and 29%, “I do not know.”

Have a ny impacts to the quality and quantity of water been observed while laying pipes at rivers and water channels?

Yes No I don’t know

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Of the respondents involved in the survey, 46% said that they had no information regarding the impact of laying pipes at rivers and water channels on the quality and quantity of water; 1% said that it had an impact on the quality and quantity of water; and, 53% said that it did not have any impact on the quality and quantity of water. The conducted survey allows us to come to the conclusion that the pipeline construction had a minor impact on the of drinking water sources. Meanwhile in most of the regions for example, in the region of Samukh the irrigation channel was damaged by BTC construction and only rehabilitated after the complaint lodged to BTC.

Atmosphere In response to the question, “Have you been disturbed by the noise caused by the movement of heavy vehicles?” 20.8% respondents said, “Yes”; 70.8% said: “No” In response to the question, “Have you been disturbed by smoke generated from the engine of heavy vehicles and dust caused by the movement of trucks employed during BTC construction? 20% of respondents said: ”Yes”, 70% said: ”No” ,and 10 said: ”I do not know”.

Yes No I don’t know

Meanwhile, it was also observed that heavy lorries and equipment during BTC pipeline construction caused disturbance among the local communities. They inflicted material damage on some communities. This is demonstrated by the destruction of inter-village roads and cracks emerging on the walls of the homes. Overall, the health of individuals has been assessed as being good in pipeline construction areas. As to the condition of their health, 46.9% of respondents said, “Good”; 26.8% said, “Satisfactory”; 19.9%, “I do not know”; only 6.1% of respondents said, “Poor.” In response to the question regarding whether cases of contracting allergies had been detected along the construction areas, 70.1% of respondents said, “Yes” and 5.9% said, “No.”

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Have local residents been exposed to any injuries during pipeline construction?

Yes No I don’t know

It was also mentioned that no personal injuries had occurred during construction. 74% of the respondents said, “No” personal injuries have occurred; 24.2% said, “I do not know”; and, only 1.8% said, “Personal injuries have occurred.”

Have local residents been exposed to any injuries during pipeline construction? It was also stated that no one was injured during pipeline construction. As to this question, 74% of respondents stated, “No”; 24%, “I do not know”; and, only 2% answered, “Yes.”

Soil Conditions Of the respondents involved in the survey, 60% indicated that changes had occurred to the status of municipal and private land plots as a result of pipeline construction; 5.7% stated that no changes had occurred; and, 33.9% stated that they did not know anything in this regard. In response to the question, “How do you assess the work performed for the reinstatement of soil in the construction area?” 5% of respondents said, “No work has been conducted”; 31% said, “I don’t know”; 38% assessed the soil reinstatement as “good”; 4% as “poor”; and, 22% as “satisfactory.” In response to whether they required instructions and/or consultations regarding the restricted utilisation and fertility of soil within the pipeline-crossed area, 32.7% of the respondents responded positively; 45.4%, negatively; and, 21.6% stated, “I do not know.”

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How do you assess the work performed for the reinstatement of soil in the construction area?

No work has been carried out I don’t know Good Poor Satisfactory

As has been made apparent, the pipeline construction has damaged municipal and private land plots and the damaged soil within the construction area has not been reinstated to the fullest extent. Responding as to how construction impacted agricultural productivity, 71.4% of the respondents stated that construction had no impact on productivity; 6.1% stated that construction had an impact on productivity; and 22.1% stated, “I do not know anything in this regard.”

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5.2 BTC ‘S ENVIRONMENTAL MANAGEMENT PROGRAMS AND PLANS: · ANALYSIS OF FULFILMENT OF MANAGEMENT PRINCIPLES · WASTE MANAGEMENT

Coordinator F. Jafarov, Management Expert N. Aliyev, Environmental Standards Expert F. Iskenderov and Health Expert U. Ahmadova participated in this section of the monitoring. Approved environmental management programmes, plans and fulfilment schedules have been studied at BTC and its contractor companies. Meetings have been held with environmental personnel and their site representatives within the companies. The fulfilment level of the approved environmental management plans has been identified and their effectiveness studied. Recommendations related to environmental standards have been identified for other working groups to conduct studies. In addition, subject reports on environmental management have been developed (See Appendix 1).

· Analysis of Fulfilment of Management Principles The BTC environmental, health and safety management structure complies with the principles stated in Appendix 1 (summary of normative documents on environmental protection and social issues, corporate policy regarding environmental protection and management system, Host Government Agreements; See Appendix 1). The EIA [1, 5, 10] documents include all of the required sections and are successfully structured and cover a large volume of information. Environmental impact minimisation measures meet contemporary requirements and international standards. The management structure has been established based on specifying individual responsibilities and duties. Company management structures are interrelated and vertically structured (Chart 1), which is comprised of the organisational chart of contractors. Personnel selection is conducted on a highly proficient level. It should be noted that even in the event that activities are conducted by contractors and subcontractors, responsibility for executing commitments is assumed by the company. All structures have approved work plans, accurate statements and control schedules.

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Environmental Manager Baku Office Richard Kingham E&S-11 Social Manager Dan Bliss E&S-21 ESMS Coordinator E&S Admin Assistant To be appointed Elnara Huseynova Bech Ops-29 Grant Compliance Officer Social Coordinator Giyas Agayev Ariadna Aliyeva E&S-23 E&S-22 Senior Environmentalist Environmental Advisor Yvetta Filatova Zaur Hasanov E&S-14 E&S-12 Social Administrative Assistant Rene Hasanova Bech Ops-30 Technical Assistant E&S Challenger Environmental Assistant - Monitoring Sabina Husseinova Sevil Sadikhova Nailya Aliyeva E&S-13 N/A N/A

Construction Manager CLO Team West CLO Team Centre CLO Team East Neil Clough Proj Dev 33/34 Proj Dev 31/32 Proj Dev 29/30 P/L-03

Field Environmental Coordinator Field Environmental Coordinator Site Environmentalist Reinstatement Social Field Coordinator David Maynard / Peter Bayliss Paul Bochenski / Simon Maguire Arturo Arze / Luis Felipe Seleme To be appointed P/L-131 P/L-31 P/L-135

Environmental Field Officer Environmental Field Officer Laboratory (EFO) Technician Ziya Efendiyev / Farid Djafarov Mamed Mamedov / Nail Mirzoyev Dina Zalaletdinova / Alexandra Salamakhina P/L-134; P/L-133 P/L-32; P/L-33 P/L-132

Environmental Field Officer Environmental Field Officer BTC Excavation Archaeologist Bakhitiyar Shikhzadayev / Aliaga Mamedov Yuri Mescheryakov / Azer Mirzoyev Richard Moore / Claire Angus P/L-133; P/L-134 P/L-32; P/L-33 N/A Field Construction Team

Site Archaeologist Environmental Field Officer Latif Osmanov / Shaheen Hajiyev Osman Tarzumanov / Aminaga Dadashev P/L-35 P/L-136

Site Archaeologist Rashid Bashirov / Mikail Mustafayev P/L-34

BP/BTC Environmental and Health Management Chart Various level meetings were held at the BTC, CCIC, Petrofac offices, temporary worker camps (CCIC camps in Tovuz, Yevlakh and Kurdamir, Petrofac camps in Yevlakh and Sangachal), pipeline construction sites and infrastructure facilities (Sangachal Terminal, Yevlakh Pump Station, construction site for laying a micro-tunnel under the Kura River in Poylu village, the Hasansu River pipeline-crossing site, etc.). Approved environmental, health and safety plans and programmes meet contemporary requirements and fully comply with the company’s commitments (it should be noted that the key documents at It should be noted that the BTC and CCIC maintain all of their main documents in English which cause difficulties for public to make an acquaintance with them. BP Golden Rules related to environment, health and safety are extensively applied through the utilisation of posters and leaflets (mostly in English) within the camp areas and infrastructure. This has been arranged on a higher level at the Sangachal Terminal. Even inside the canteen, this information is displayed in two languages on wide screens. Safety rules and programmes provided for transportation and construction activities should be specifically noted. Strict compliance with and control over these rules enabled BTC to work without any accidents. As a result, the accident-free work period has already reached 16mln man-hours. This is a significant achievement. The company arranges regular training sessions and informational meetings for its employees and other workers, which is a positive practice. It would be professional for other companies to engage in similar practices.

Facts identified allow the following conclusions to be made:

· The BTC environmental, health and safety management structure fully meets contemporary requirements and can be considered to be best practice · The fulfilment and control of environmental management requirements was not arranged for as required at the following organisations (BTC contractors and subcontractors). A shortcoming observed in the environmental management is 37 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

that most of the documentation is maintained in English. This means that the requirements of the Law on the State Language of the Azerbaijan Republic are not being met. In addition, this prevents the necessary information and requirements from being understood by company employees and the general public with poor English

Proposed actions to remove drawbacks: · BP/BTC should reinforce control over contractor performance and considerably update their monitoring system · All documentation related to environmental management should also be provided in the Azeri language

Waste Management

Domestic wastes undergo initial segregation. Thus, there are containers everywhere for various waste types (Figure 1). This may be encountered, though in a slighter form, at other facilities as well (i.e. those are also equipped with relevant waste-type containers located at waste accumulation areas).

Figure 3. Toxic waste area Figure 4. Containers

BTC and its contractors have made a commitment to conduct waste management in accordance with European standards. However, BTC and its relevant contractors have failed to fulfil the accepted commitments in the required manner. For example:

· Waste segregation activities are not conducted on the required level at the Sangachal Terminal, camps and infrastructure. Several waste containers were checked during inspections and prohibited substances and wastes were identified inside them within the Sangachal Terminal. However, these substances were not provided for by these containers (Figures 5, 6, 7);

Figure 5 Figure 6 Figure 7 Waste composition The rules Violation of the rules

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· During the inspection of the Kurdamir Pipe Yard, the area was contaminated with domestic wastes (polyethylene, paper and cardboard, plastic receptacles, etc.). Although the BTC representative explained that the wastes were removed from the pipe yard on a weekly basis, monitoring group members, having inspected the site, concluded that the wastes have been left for several months because of the surrounding growth of vegetation. (Figures 8, 9)

Figures 8-9 Waste dump at the Kurdamir Pipe Yard

· Items prohibited for burning were observed inside the waste accumulated for burning inside the incinerator at the Kurdamir Camp (Figures 10-11)

Figures 10-11 Waste containers

· The personnel failed to comply with the established rules within a number of CCIC construction sites. Surrounding areas are contaminated with domestic wastes. This issue was raised numerously by the local community during the survey. In addition, these facts were confirmed during the inspections conducted by the monitoring group onsite (KP 417, Hasansu area, etc.) (Figures 12-13).

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Figures 12-13 Site contamination observed

It should be noted that the main provisions of the waste management rules adopted by BP/BTC (i.e. not incinerating domestic wastes, complete treatment of waste waters) are violated by the contractor. For example: · АА Services transports the accumulated waste to the Baku and Sumgayit waste dump areas where the waste is incinerated, which is against the aforementioned rules (See Appendix 1) · МЕSCО takes the domestic waste accumulated at the camps and varying infrastructure to the incinerator in Kurdamir. Toxic substances (in gas purifying water) generated during the operation of the incinerator are accumulated and stored in nonofficial storehouses. This simply means accumulating such wastes in an indefinite manner and storing them for a long time rather than merely solving the problem (Figure 14)

Figure 14 AA Services shipper containers The following conclusions may be made on the basis of these facts: · BTC and its contractors have made a commitment to manage wastes in accordance with European standards. However, relevant BTC contractors have failed to arrange for the fulfilment of the commitments as required at sites where the monitoring was conducted. Waste segregation activities are not conducted as required at the Sangachal Terminal, camps and infrastructure. Several waste containers were checked during the inspection and prohibited substances and wastes were identified inside of them within the Sangachal Terminal, which were not provided for by those containers · Company contractors fail to ensure the quality implementation of the commitments made under BP rules and standards onsite. This has a 40 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

negative influence on the overall evaluation of the activities. The personnel fail to comply with established rules at some CCIC construction sites (where the monitoring was conducted) and the surrounding areas are contaminated with domestic wastes · The main provisions of the waste management rules adopted by BP/BTC (i.e. not incinerating domestic waste, complete treatment of waste waters) are violated by the contractor. For example, АА Services regularly transported accumulated waste to the Baku and Sumgayit waste dump areas where they arranged it to be incinerated, which is against the aforementioned rules The following are measures recommended for eliminating these shortcomings: · BP/BTC should strengthen their control over activities conducted by contractors and significantly upgrade the control system · All documentation related to environmental management should also be provided in the Azeri language · Ensure the full implementation of the waste management plan and require that all contractor organisations comply with it; strengthening control and conducting public control; installing modern equipment for disposing domestic and toxic wastes

5.3 MONITORING RESULTS ON PROTECTION OF BIODIVERSITY This section of the monitoring was conducted by Chief N. Rzayev and Flora and Fauna experts E. Nuriyev, S. Gafarova and O. Seyidzade. The primary objective was to study the degree to which environmental protection standards are met with the objective of protecting biodiversity during BTC pipeline construction. Similarly, the monitoring analyses biodiversity and the timely implementation and effectiveness of environmental protection measures during forest protection and reforestation activities. The monitoring group has developed a thematic report based on the results of field observations (Figure 15). This report includes reviews of the pipeline route examining a variety of indicators and myriad studies of rare and relocated plant species. Analyses of the results of the company’s and state monitoring outcome (See Attachments 9 and 10) are also included. The monitoring has been concluded owing to close cooperation with the relevant units of BTC and its contractors and through the analysis of questionnaires completed by local residents.

Figure 15 Monitoring process After having reviewed the BTC EIA, we have identified several flaws and errors that have the capability of significantly altering the results of our environmental monitoring. These errors include: 41 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

· The study of fauna and records regarding prominent animal species along the 200m strip of the pipeline do not reflect the actual situation. This could lead to a potential pre-planned depletion of species diversity. As opposed to the botanical or vegetation studies, the area for fauna studies can be no smaller than 3km. This figure is an average indicator for areas considered to be habitats for primary animal populations across pipeline districts · The inadequate consideration of seasonal changes during the zoological studies may negatively affect the results. Short-term studies were conducted using two/three specialists without having consulted with the Institute of Zoology and Biology Science Division of the National Academy of Sciences · A rather superficial study on invertebrates was conducted. Furthermore, a shortage of several invertebrate species was noted in certain areas in proportion to the overall animal population (such errors are noticeable in the EIA) · Additionally, several errors occurred either when the EIA report was translated into other languages or inadvertently by the developers of the report. For example, the butterfly species Manduca atropos is referred to as a bee species. In addition to it, the species Arviocola terrestris (water vole) yet is common species in Azerbaijan, and no one is going to enter it into Red Book · Another astonishing aspect is the failure to consider the rich biodiversity of medicinal plants or include any figures indicating the number of such plants in the studied area. Some specialists suppose that 35-40 medicinal plant species may be found in this area · After the completion of the EIA report, the number of bird and mammal species reached to 363 and 106, respectively (See Attachment 1). These are both negative cases During the monitoring, the group conducted eight short visits (three to the Sangachal Terminal, two to the pump station and construction camp near Yevlakh, as well as to CCIC’s Kurdamir and Mughan camps). Members of the monitoring group met with environmental experts with the aim of reviewing the environmental activities conducted onsite. The attempts were met with mixed success owing to time handicaps. All required documentation was provided to group members at the pump station. They were able to receive answers to all of their questions from Petrofac officials. The pump station was also reviewed during these visits. BTC’s plan on biodiversity was the only programme implemented at the pump station as a result of the absence of any other special biodiversity programme.This plan proposed relocating, or evacuating, animals from the Right of Way, reinstating the vegetation destroyed during construction and painting the station walls with dyes matching the surrounding landscape. There is a three-month gap in the development of the Environmental Protection Plan. Therefore, the monitoring group studied the 44m corridor at the CCIC camp along the route of the pipeline. There is no evidence of visual disturbances in the vegetation or anthills on the analysed area located 200-250m from the pipeline corridor. The hare stools identified on the area have been thoroughly studied (Figure 16).

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Figure 16 The area surrounding the pipeline

During the meeting with BTC environmentalists at the Sangachal Terminal, the group intended to review the results of the internal monitoring. The monitoring report was not available, allegedly it had yet to be translated. It has not been made available to the monitoring group to date. A measure designed to ensure successful erosion control was the introduction of the Vetiveria plant on a trial area at the Sangachal Terminal, as well as the addition of Bermuda grass or Cynodon dactylon (Figure 17).

Figure 17 Trial area at the Sangachal Terminal The group has concluded that the introduction of Vetiveria, a species of perennial grass imported from South Africa, may lead to negative consequences. For the first time at the Earth Summit held in Rio de Janeiro, Brazil in 1992 the Convention which declares that “The Protection Of Biodiversity Is The Common Responsibility All Mankind And Is The Integral Part Of The Sustainable Development “was adopted . This convention was ratified by the National Parliament (Milli Medjlis) of the Azerbaijan Republic in March 2000. The following is an excerpt from a relevant article (Article 8, Paragraph h) from the aforementioned document: “Each Contracting Party shall, as far as possible and as appropriate, prevent the introduction, control or eradication of those alien species, which threaten ecosystems, habitats or species.” During the monitoring conducted along the route of the BTC pipeline KP 417 near Poylu, Akstafa on December 12, we identified and photographed a significant number of plastic bags and plates scattered throughout the construction site (Figure 18). This is clear evidence of improper waste management practices, which directly impact biodiversity. Local wildlife and household pets feed on this garbage, which can directly result in their death.

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As a result of the improper management of topsoil storage standards at the Yevlakh Pump Station, 20ha of soil have been seriously damaged (Figure 19). Such a negative situation causes direct destruction of the local landscape and vegetation.

Figure 18 Figure 19 BTC Pipeline, KP 417 Topsoil storage area at Yevlakh Pump Station On December 7, members of the monitoring group visited the spur-thigh tortoise farm at the Sangachal Terminal as part of the BTC monitoring. This facility was established under the programme designed for breeding spur-thigh tortoises or Testudo graeca, which were exposed to the negative effects of pipeline construction. It has been noted that the programme has been operational since March 1, 2002.

Figure 20 Spur-thigh tortoise farming area at the Sangachal Terminal Currently, there are 191 tortoises and 30-40 eggs at the farm. This is a tremendous increase from the number of tortoises initially relocated to the farm (approximately 30 species) (Figures 20, 21). On the whole, this project has yielded positive results. It is advisable to implement this programme on an ongoing basis until the completion of the ROW reinstatement period. This will ensure the protection of biodiversity.

Figure 21 Spur-thigh tortoise farming area at the Sangachal Terminal The enclosure designed for young tortoises, however, remains exceptionally small and the nightly blackouts at the Sangachal Terminal could potentially result in the death of these young tortoises. 44 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

Another red-listed plant species exposed to the adverse impacts of BTC construction is Iris acutiloba, an endemic plant currently under stringent surveillance. The protection programme is widely implemented by the Institute of Botany, ANAS and BP. 32,450 irises have been excavated from the pipeline-crossed areas of Gobustan and Gazi Mammed. The remaining 24,350 plant specimens were replanted in desert area near the Mardakan arboretum. The observations conducted on the eastern section of the pipeline route have demonstrated that irises are budding in the area (Figure 22). On December 6, several members of the monitoring group visited the area of the Mardakan arboretum where the Iris acutiloba was replanted (Figure 23) as part of the BTC Pipeline Monitoring Project. Director of the Arboretum, coordinator and the employees overseeing the area were interviewed during the course of the visit. The bulbs of the Iris acutiloba have turned green and the seeding process has been delayed. In addition, knowledge of employee regarding the plant species is poor.

Figure 22 Area of irises around the pipeline Despite these gaps, the programme implemented for the relocation and storage of the red-listed Iris acutiloba species from pipeline areas is an immense and successful project.

BP/BTC Biodiversity Activities to be Implemented in Azerbaijan

Based on a series of consultations with stakeholders, BP developed the Strategy on Biological Diversity in Azerbaijan. This plan proposes the implementation of short local and long-term regional projects, which will include a variety of activities aimed at increasing general knowledge of biodiversity and biodiversity awareness. This also coincides with the long-term interests of BP in Azerbaijan, as well as the commitments stated by BP CEO Lord John Browne in April 2000, who expressed his objective, “to have a real, measurable and positive impact on biodiversity.” The monitoring group has reviewed various projects implemented by BP/BTC and immensely appreciated their status: · The Rehabilitation of the Tugai Forests along the Kura River was selected as a long-term project to ensure the protection of biological diversity in the region. BP has already completed the preparatory phase of the project and is planning to commence operations in Akstafa. This project proposes the implementation of a variety of activities, including the reforestation of a 10ha plot of land and the protection and reforestation of an additional 150ha plot

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· BP hosts competitions for short-term projects and biodiversity in Azerbaijan and Georgia. Three competitions have been held among local NGOs to date. Projects proposing the implementation of research on landscape, fish and birds were declared as the winners and are currently being implemented · The implementation of the Spur-Thigh Tortoise Conservation Plan and Captive Breeding Programme is successfully ongoing at the spur-thigh tortoise farm at the Sangachal Terminal. This project has been developed to protect the red-listed spur-thigh tortoise species · BP also implemented a series of projects aimed at increasing general awareness and child education on biodiversity. BP’s involvement in the protection of biodiversity throughout the regions of Azerbaijan includes the development of several publications such as, Amazing Living Organisms of the Caspian Sea, Amazing Fish of the Caspian Sea and Oil and Biological Resources of the Caspian Sea, as well as numerous posters of fish and mammals. These publications have been distributed to various schools and higher education institutions throughout Azerbaijan. Three television advertisements on sustainable development were broadcasted on Azeri television channels. One of the advertisements was geared towards corporate biodiversity policy. In addition, BP created an animated cartoon series and documentaries on biodiversity to increase awareness among Azeri youth · BP and its partners conducted several studies as part of the baseline environmental studies and EIA report, which included an analysis of the causes of mortality among seals, monitoring of birds and fish, macro- benthos, the chemical composition of water, sediments, subsurface monitoring, re-vegetation and various other species of aquatic life · By way of the Caspian Environmental Programme, BP contributed to the resolution of regional environmental problems related to the Caspian Sea. The effectiveness of this programme spans all five littoral states. A number of environmental studies and monitoring projects have been included in the Research and Monitoring Programme, which implemented the continuous monitoring of marine and onshore habitats, including the study of myriad fish, birds and mammals It should be noted that the abovementioned programmes and activities implemented by BP/BTC could be crucial to maintaining rich biodiversity in Azerbaijan. The sociological inquiry conducted during the monitoring project proved that there is a viable interest among local communities in forestation and reforestation activities. This was made evident by the support shown by local communities for various projects such as the Rehabilitation of the Tugai Forest along the Kura River. On the other hand, the same inquiry demonstrated a lack of knowledge among the local population regarding ongoing activities. This was made evident by the overwhelming lack of participation and support from local communities. Facts identified allow for the following conclusions: · Azerbaijan’s unique flora and fauna have not been properly reflected by BTC’s documentation on biodiversity (EIA, Biodiversity Strategy, etc.), which seems to limit the effectiveness of measures aimed at protecting and breeding fauna and flora species

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· BP/BTC and CCIC made some mistakes while protecting endangered flora and fauna species. These mistakes include a failure to relocate other species indicated in the EIA report and to submit relevant documentation on the relocation of species to monitoring group (except for the relocation of irises) · Assessing the implemented activities was difficult as BP/BTC failed to deliver the results of internal monitoring on biodiversity to the monitoring group · Land restoration and re-vegetation on the observed areas was conducted without due diligence. Therefore, it has been demanded that these activities be conducted once more

Measures Proposed to Eliminate Shortcomings: · It is advised that the desk studies be completed with adequate field studies during the development of any future EIA reports. Trained specialists must conduct these studies · It is crucial for flora and fauna monitoring to be conducted during the spring, early summer and autumn but not during the winter. This is the only option capable of providing any useful information on flora and fauna in any specific area · Due to the prolongation of construction activities, it is necessary to expand and continue the implementation of the Spur-thigh Tortoise Conservation Programme as part of the Biodiversity Protection Programme · The introduction of species harmful to the biodiversity of Azerbaijan (i.e. Vetiveria) must be agreed upon with the relevant state bodies to ensure erosion control · All previous and current programmes and projects on biodiversity must be reviewed and raised to take into consideration the entire list of flora and fauna species · It is necessary to intensify activities designed to conserve and rehabilitate endangered species of flora and fauna. This will require the development of public discussions on relevant programmes. Meanwhile, the necessary conditions must be created to ensure public control over these activities.

5.4 MONITORING RESULTS ON UTILIZATION AND PROTECTION OF WATER RESERVES This section of the monitoring was conducted by Team Leader E. Mammadov and expert A. Poladova. The main objective was to study the degree to which environmental standards (Attachment 7, EIA Commitments) are met with the aim of protecting water reserves and facilities during pipeline construction. Moreover, the monitoring aimed to evaluate the efficiency of the technology used to treat industrial and domestic sewage and prevent the potential contamination of water sources. The group has prepared a thematic report on the basis of field observations (Figure 24), as well as analyses of the results of company and state monitoring’s outcome. The activities have been concluded owing to close cooperation with the relevant units of BTC and its contractors and through the analysis of questionnaires completed by local residents.

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Figure 24 Results of field observations conducted by the Monitoring Group

Summary of Environmental Monitoring of Field Studies

The monitoring group has conducted several observations and studies along the route of the BTC pipeline and identified the following. While monitoring the Petrofac construction camp, the monitoring group discovered that the PSA-2 is an intermediate pump station designed to increase the pressure of oil exported from the Sangachal Terminal. Camp staff consists of 828 employees. It has also been discovered that the biological treatment facilities handle 400m3 of domestic water prior to discharge. The main components of the sewage water are washing agents and oils (Table 3.4.1). In addition, 50m3-60m3 of generated sewage water is discharged at the treatment facility at the Mingechevir Hydroelectric Power Plant. The monitoring group has not been provided with the necessary information regarding the capacities of the treatment facility. Moreover, information regarding small rivers and springs crossed by the pipeline and the chemical composition of the water discharged into the biological treatment facility could not be obtained. The monitoring conducted at the Sangachal Terminal has revealed that domestic sewage was treated at biological treatment facilities prior to reusing the treated water at the terminal. The treatment capacity is 300m3. The next stage is mechanical treatment. The primary components of 50m3 of water are washing agents and oils. Water containing various other chemical components is discharged into Sahil Treatment Facility. The treatment capacities of this facility are unknown. We could not obtain information regarding the chemical makeup of the treated water. Furthermore, information regarding the composition of chemicals used in the reinstatement of soil and other sewage has not been made available.

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Hydrotest Water (Petrofac. Results provided by Jeyhun Sultanov.) Table 3.4.1

Microbiological Analyses

Item Test Result 1 Coliforms < 400 Chemical Analyses № Test Result 1 OBS (BPK), mg/l 12.7 2 ОКС (ХПК), mg/l 26 3 Petroleum and Oils 2.4 4 As, mg/l 0.003 5 Cd, mg/l 0.0012 6 Cr, mg/l 0.070 7 Pb, mg/l 0.0019 8 Hg, mg/l < 0.006 9 Ni, mg/l 0.005 10 Se, mg/l < 0.006 11 Ag, mg/l 0.0032 12 Zn, mg/l 0.190 13 Cyanide, mg/l < 0.01 14 Ammonium, mg/l 3.4 15 Phenol, mg/l 0.015 16 Phosphor, mg/l 4.5 17 Nitrogen, mg/l 50 18 Sulphide, mg/l 0.041

At Poylu, the monitoring group learned that there are plans for the pipeline to pass through the Kura River using a micro-tunnel system (Figure 25). The 400m tunnel lies at a depth of 14m under the riverbed. This construction system has a low environmental impact. The ground water generated during the course of construction is pumped into a special reservoir and subsequently discharged into the Kura River. The composition or volume of the discharged water is not recorded.

Questions Raised and Answers: Q: What technology is being used to treat sewage water? Please provide pertinent information such as the names of the chemicals, their quantity and discharge points. A: The biological treatment unit (bioremediation) consists of a system of subsequent cyclic reactors (SCR) with three tanks. Each tank goes through filling, aeration, sedimentation and filtration processes. 5mg/l sodium hypochlorite is added to effluents in the tanks to ensure disinfection. The effluents in the SCR tanks go through a three- fold sand-filtering process to guarantee their treatment. We plan to use the treated sewage for land irrigation around the terminal or discharge them into the sewer. The

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system is capable of treating 300m3 of sewage water and is operated by trained personnel [1, 2]. Q: Please provide information regarding the sources and volume of drinking water, including the programme for the rational use of drinking water. A: Treatment facilities have been installed under the STEP programme to treat water from the Baku water main to BP specifications and use it for drinking. Domestic water is also used for cleaning facilities and equipment and hydro testing during pipeline construction. The total volume of the water used is between 30,000 m3-40,000m3.

Figure 25 Pipeline crossing with the Kura River in Poylu, Agstafa

Unlike static waste generators such as oil refineries, contaminations cased by leakage can be distinguished by their lengthy duration, potentially large volume and high concentration and, thus, grave environmental impacts. Therefore, it is advisable to apply integrated environmental measures that would prevent the abovementioned from occurring.

The irrigation channel in Poylu has been closed for a long period of time. Another small river, the Hasansu, flows through the mountainous area.

Here, the construction team has used temporary culverts to bury the pipeline and guarantee water flow. This has prevented the contamination of the river during construction and facilitated the construction process. At this point, spring water continues to flow from the mountains to the Hasansu River. The bridge constructed on the river has altered the structure of the riverbed and caused a contamination threat. Monitoring has also shown that the area has become swampy. It should be noted that the river water is clean and continues to be used for domestic purposes. Generally, the construction of the main pipeline and river crossings has had an impact on watercourses. For example, river crossings are constructed under riverbeds. There are also a number of other activities such as large-scale ground works, the cutting of steep slopes, trench excavation, backfilling, etc. All of these activities impact watercourses and relevant water organisms. Mechanical handling has several impacts on riverbeds, bank slopes and water contamination. Specifically, excavation activities conducted on earthen areas have a dreadful impact on fish during spawning periods. The improper management of excavation activities also impacts fish migration. As a

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result, it is necessary to consider paying relevant compensation. We could not, however, obtain any information in this regard. Stringent requirements on the physical and chemical quality of the water are noteworthy.

Biological and mechanical treatment methods are used during the treatment of sewage waters at the Tovuz Camp. Three treatment facilities (each 50m3) process 300m3 of water per day. The treated water is then discharged into the municipal sewer after the separation of solid substances.

The incineration of solid wastes has been observed at the Kurdamir Camp (Figure 26). The exact volume of water used in this process is not known although information suggests that it may be 1m3 per 10-15 days.

Organic and synthetic substances have been identified in the composition of the incinerated wastes. Organic chlorine compounds and relevant toxic substances (dioxins and persistent organic pollutants) are likely to be generated as a result of such waste incineration. Information regarding chemical composition and the water volume was also unavailable.

Figure 26 Incineration of solid wastes at the Kurdamir Camp

Mechanical operations at riverbanks contribute to the high contamination of water and have a negative impact on aquatic life and devastate spawning areas (Figure 27). The second contamination occurs when pipe-laying operations commence and spread across larger distances [8, 11, 63].

Figure 27 Decontamination activities during mechanical operations at the Hasansu River

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Tovuz Camp. Results of Analyses.

Parameter Standard Limit (mg/l) pH 6-9 ТSS 35 Total N 15 Total P 2 Residual Cl 0 COD 125 Based on the aforementioned, the following is crucial during BTC pipeline construction and should be referred to during future monitoring processes:

Jeyrankechmez River: Flows through the territory of the Gobustan Historical and Natural Reserve at approximately 1km south of the pipeline crossing.

NB: It is necessary to either construct a road by disturbing the stability of riverbanks on the right hand of the route of the pipeline or ensure the careful planning of the route’s deviation. Careful planning is also required to ensure the stability of the cliffs.

· Turyanchay Goshgarchai: Runs into the Kura River above the Mingechevir Water Reservoir. The Shamkir Sanctuary and Samukh State Hunting Area are 3.5km and 1km downstream, respectively. Future impacts on these areas should be considered.

· Hasansu Kura River (Western crossing point): No protected plant species. Protected animal species have been identified upstream and approximately 5km downstream. Kura River (Eastern crossing point): Residential settlements about 10m around the crossing point are Ashaghy Garkhun and Arabsheki. NB: Disturbances of bird habitat. Residuals of dischargeable oil may impact wetlands and fisheries. This area is distinguished by its high environmental sensitivity. Hasansu: There are protected animal species at the crossing point. NB: This area is part of other areas with high environmental sensitivity and requires stringent control over sediments from the riverbanks. Garabagh Channel: The Yaldili, Garamammedli and Malbinesi villages are located 10km downstream from the crossing point. Information regarding the volumes of sewage generated at construction camps, their composition and treatment methods should be submitted to the Public Monitoring Group. There are a number of vague factors that require studies to be implemented for clarification. Close control over small water resources such as rivers, springs and lake along the construction camp in Yexlakh and Tovuz is also required. Furthermore, some irrigation channels were closed in Samukh and Shamkir during pipeline construction. They should be upgraded, reinstated and handed over to the local population in an appropriate manner.

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The working group could not obtain the answer of the following questions, which needed for implementation of monitoring

Unanswered Questions: · Are chemicals used during the consolidation of soil? · Is drinking water supplied to workers onsite? · Which authorities have approved the water crossings (including marine protection)? · What is the composition of toxic gas generated during waste incineration in Kurdamir? What is the volume of the treated water? · Is there any relevant compensation? If so, what is it?

Facts Identified Allow for the Following Conclusions: · Treatment of domestic sewage waters generated at the camps and infrastructures during construction does not follow the required sequence (i.e. mechanical treatment, physiochemical treatment, chemical treatment, bioremediation, etc.); · Monitoring indicates the disturbance of natural watercourses and partial alteration of riverbed structures occurred as a result of pipeline crossings; · Irrigation channels have been decommissioned for an extensive period of time and reinstatement activities have been delayed; · Long-term storage of treated highly toxic waters generated during incinerator operations. Measures Proposed to Eliminate Shortcomings: · It is nearly impossible to suggest any general or specific opinions or provide a long-term forecast on the basis of the monitoring, as only a very small portion of the watercourses has been reviewed. The sensitivity of the water resources to contamination and their exposure to more intensive contamination (during the pipeline construction or operation) call for the implementation of long-term monitoring. It is also necessary to utilise pertinent monitoring equipment or conduct joint laboratory analyses of the taken samples; · The use of modern treatment technology and facilities for the complete treatment of the sewage generated during the course of construction (the current equipment does not allow for the complete treatment of sewage water) should be legalised, as well as the disposal of treated sewage to water reservoirs after testing; · It is necessary to identify whether the failures discovered in the water reservoirs during the construction and project-implementation phase is a general characteristic of the pipeline area. It is also necessary to consider the hydrometric and hydrologic characteristics of the area and apply a series of measures aimed at consolidating riverbanks and riverbeds, erosion control and preventing water contamination; · A relevant action plan should be developed and applied to ensure the consideration of seasonality during the implementation of agricultural activities and to reinstate all of the irrigation systems (inter-farm and internal irrigation channels and collectors) damaged throughout pipeline construction;

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· Modern equipment should be installed and used for the treatment of toxic waters.

5.5 MONITORING RESULTS ON ATMOSPHERE This section of the monitoring was conducted by Team Leader S. Huseynov and expert I. Mustafayev. The primary objective was to study the degree to which environmental protection standards are employed with the aim of safeguarding the atmosphere during pipeline construction, as well as the timely implementation and effectiveness of these activities. The monitoring group has developed a thematic report based on analyses of the results of field observations and company’s and state monitoring outcomes (See Attachment 8). The activities have been completed owing to close cooperation with the relevant units of BTC and its contractors and through analysing the questionnaires completed by local residents.

Inventory of Main Streams of Atmospheric Emissions during BTC Oil Pipeline Construction The pipeline construction is conducted using modern technology via the following: 1 Identifying the pipeline route and planning construction activities; 2 Levelling the ground surface; 3 Transporting and stringing pipes; 4 Welding pipes, detecting defects and laying the anticorrosion layer; 5 Trenching; 6 Laying pipes in trenches and backfilling trenches; 7 Reinstating topsoil. (See: Attachment 8 )

Figure 28 Figure 29 Figure 30 The Sangachal Terminal Transportation emissions Construction emissions

The spectrum of our studies has been narrowed to visual monitoring as a result of the restrictions applied to the use of instrumental measurements and various devices during the course of the public monitoring. The calculations have been limited to emission volumes as per volume of special wastes. We initially prepared a list of principal emission sources and emission types. However, identifying the emission type (i.e. the extent to which the emission can be considered permanent or temporary) is somewhat difficult, as all of the equipment involved in the pipeline construction (as opposed to at infrastructure facilities) is always in motion.

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The average distance that the equipment moves along the pipeline is 650m-700m per day. Therefore, the impact of these emissions and physical constraints such as noise, vibration, radiation, etc. on individual villages and settlements along the pipeline is temporary (Figures 28, 29, 30). Moreover, it is not appropriate to consider them to be of a long-term, permanent nature. The period of the impact on each settlement is not longer than three months. The results obtained as a result of the public monitoring are provided in Table 3.5.1.

Table 3.5.1. Inventory of Sources of Atmospheric Emissions.

There are two principal methods used to define the exact volumes of the emissions: 1. Measuring the concentration of toxic substances and environmental characteristics of emission sources via instrumental methods and calculations made on the basis of defined parameters; 2. Calculations based on material balance, process technology and special volume of emissions.

Facilitie Process Technology Main Emission Emissions s Streams Pipeline Levelling of ground Bulldozers Dust particles, combustion

surface products (NОх, SОх, CОx, RH, etc.), noise, vibration Pipeline Transportation and Trucks, cranes, Dust particles, combustion

stringing of pipes special machinery products (NОх, SОх, CОx, RH, etc.), noise, vibration

Pipeline Welding pipes, defect Welding equipment, MnO2, CrO2, Cr2O5, CO, SO2, HF, detection and defect detectors, x-rays and gamma radiation application of special equipment anticorrosion coating Pipeline Trenching Excavators Dust particles, combustion

products (NОх, SОх, CОx, RH, etc.), noise, vibration Pipeline Laying of pipes in Cranes and Dust particles, combustion

trenches and bulldozers products (NОх, SОх, CОx, RH, backfilling etc.), noise, vibration

Pump Welding and Generators, welding Combustion products (NОх, SОх, station construction equipment, defect CОx, RH, etc.), MnO2, CrO2, detectors, cranes, Cr2O5, CO, SO2, HF, x-rays and fuel tanks gamma radiation

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Figure 31 Figure 32 Figure 34 Incinerator Welding operations ROW with potential for dust below

The first monitoring method includes direct calculations, trials and the dimensions of the emission sources, as well as an in-situ definition of their volume rates. However, due to the restricted, direct calculations made during pipeline construction, this method has not been applied. The implementation of the second method, however, requires information with multitude parameters. These parameters have been partially obtained during the course of the public monitoring. In particular, they have been successfully identified during the environmental expedition to the pump station. Additional information has been submitted by organisations involved in BTC pipeline construction. The analyses of the results of the environmental expedition and the Pipeline Construction Environmental Impact Assessment Project, as well as the expert experience previously obtained during the monitoring of the Baku-Supsa oil pipeline, have enabled our group to identify BTC-related emission sources and receive the information required to ensure that precise calculations are reached (See Attachment 8). It should be noted that BTC construction is planned for a short-term period and will be transient (Figures 31-34) as all emission sources are temporary and always in motion, although the motions may be slow. The overall construction period in Azerbaijan is more than 15 months. Therefore, the public monitoring should focus on attracting the attention of the constructing parties to control of emission sources. This aspect was considered during the course of project implementation and all of the emission sources have been reviewed. Table 3.5.2 provides information on the parameters required for monitoring toxic substances in atmospheric emissions.

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Table 3.5.2

Source of Information Required for Information Information Emission Monitoring Provided by Obtained Project Contractor Independently Bulldozers Quantity of bulldozers, Volume of total fuel operation period, distance used is known (see covered, type and volume of Calculations) fuel used Trucks Quantity of trucks, operation Provided for the Diesel period, distance covered, type Sangachal Terminal and volume of fuel used Cranes Quantity of cranes, operation Diesel period, distance covered, type and volume of fuel used Excavators Quantity of excavators, Quantity of operation period, distance excavators, covered, fuel used and its dimensions of volume, dimensions of trenches: trenches excavated W=1m-1.5m, L=443km Generators Quantity of generators, Quantity of Concentration of operation period, type and generators, capacity, toxic materials in volume of fuel used, volume of operation period, exhaust gases, atmospheric emissions, type and volume of volume rate of concentration of toxic fuel used emissions materials in exhaust gases, volume rate of emissions Welding Quantity and type of Pipe diameter and Equipment electrodes used, pipe diameter thickness – 42” and wall thickness Defect Type of radiation, exposition Detectors dose during the inspection of welding seams Fuel Tanks Quantity and dimensions of Quantity of fuel 2 Diesel tanks, 45 fuel tanks, type and volume of tanks, type and tones fuel stored volume of fuel stored

Based on the results of the public monitoring, calculations of the emission volumes have been prepared in a number of cases. The main objectives of these calculations are to: 1. Compare emission concentrations for individual cases with allowable concentration limits; 2. Compare the results with the figures indicated in the BTC EIA Report; 3. Monitor the contribution of BTC to preventing air pollution and identify appropriate payments. Determination of Volume and Concentration of Emissions Generated during the Construction of Pump Station

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The monitoring working group has conducted public monitoring at the PSA-2 pump station and identified the primary emission sources. These sources and their main characteristics are provided in Table 3.5.3.

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Table 3.5.3. Results of Public Monitoring at Pump Station Type of Emission Sources Characteristics of Emission Sources Emission Source Permanent Generator P500P1 Capacity: 500kW; Diesel consumption: 1800lpd; Dimensions of Source: Height - 4m, Diameter – 0.15m (stack pipe). Generator P500P1 Capacity: 500kW; Diesel Consumption: 1800lpd; Dimensions of Source: Height - 4m, Diameter – 0.15m (stack pipe). Generator P500P1 Capacity: 500kW; Diesel Consumption: 1800lpd; Dimensions of Source: Height - 4m, Diameter – 0.15m (stack pipe). Generator Capacity: 500kW; Diesel Consumption: TWD740GE 1800lpd; Dimensions of Source: Height - 4m, Diameter – 0.15m (stack pipe). Fuel tank 2 100 tonne fuel tanks (7 x 4.5m); Dimensions of Source: Height – 1.5m, Diameter – 0.05m (stack pipe). Temporary Special vehicles 57 vehicles use 32.000l of diesel per month. The average fuel consumption of cars is 10 litres per 100km. The source of emission is the exhaust pipe.

Eventually, the construction process will include welding operations, defect detection works, other construction activities, etc. However, as the 3.5.3 table shows, the main source of emissions is the combustion products. The volume of these emissions has been calculated for the pump station (See Attachment 13). Generator Emissions Two generators are operational, while the other two are reserve generators. Both operational generators consume 1.800 litres of diesel to produce 500kW of energy each. The total consumption of diesel fuel per day (12 hours) is 3.600 litres. The fuel consumption is 3.00 litres or 255kg per hour. It is known that the volume of air required for the complete combustion of 1kg of fuel in the above generators is approximately 12m3. Thus, the total volume of the combustion product generated at the combustion facilities is 3,060m3/hr. The concentration of exhaust gases produced as a result of diesel combustion in the generator is described below. Previous measurements on generator gases are provided in the attachments (See Attachment 13).

The approximate volume of greenhouse gas emissions (GHG) such as CO2 and CH4 has been measured according to the organic fuel oil combustion formula [32, 47, 57]. Accordingly, the approximate volume of exhaust gases generated during the combustion of some 1,377 tonnes of diesel per year is 3,400-3,500 tonnes.

Emissions from vehicles used at the pump station have been measured according to the volume of fuel used and standard figures. According to the information provided, there are 57 vehicles operating on the territory of the pump station. These vehicles consume approximately 10 litres of diesel fuel per 100km. The monthly fuel consumption for all of the vehicles is 32,000 litres of diesel. The distance covered by

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these vehicles (based on the aforementioned consumption data) is, therefore, 32,000km per month (Attachment 13). Overall, the total volume of emissions is 90 tonnes per 12 months or one calendar year and 112.5 tonnes per 15 months. Emissions from Fuel Tanks The hydrocarbon emissions from two fuel tanks (100 tonnes) have been identified by measurements. The dimensions of the fuel tanks (7m x 4.5m) have required the application of a relevant formula to measure the volume of hydrocarbon emissions (Attachment 11). Thus, the total volume of hydrocarbon emissions from both of the fuel tanks is 19.6kg per annum and 24.5kg per 15 months. These emissions are insignificant (as opposed to other types of emissions). Measurement of Emission Concentrations at Pump Station The concentration value of emissions during the construction of the pump station is one of the most important environmental factors. The comparison of this value with the allowable concentration limits is significant in terms of gathering information about the company’s environmental impact. The measurement of these values, in extreme cases using a range of various approaches, is provided in the relevant attachments (Attachment 13). The first approach is based on the assumption that all of the emissions from the pump station come from a single source. In this particular case, the dimensions of the stack pipe at the pump station are as follows: H=4m, D=15cm. The temperature of the exhaust gas–air mixture is 190ºC. The average annual environmental temperature is 14ºC. In this case, the highest concentration of toxic products emitted from the aforementioned stack is calculated on the basis of a diffusion formula describing the dispersion of pollutants in the air (See Attachment 13).

Simple measurements show that the highest concentrations occur at approximately 60m from the source [1, 9, 29, 31, 37, 39]. The comparisons of the maximum concentrations with the allowable concentration limits stipulated in the legislation of the Azerbaijan Republic are provided in Table 3.5.4.

Table 3.5.4 Comparison of Concentration Limits

Toxic Product Maximum Average Daily Allowable Maximum One-Time Allowable Concentration at Concentratio Allowable Concentration Operation Site n Measured Concentration NОx 0.085 0.04 2.0 0.26

SО2 0.5 0.05 10 0.55 CО 5 3 20 5.8 RH 5 1.5 100 0.45 PM 0.15 0.05 1 0.692

The comparison of the abovementioned data shows that the atmospheric concentration of all of the toxic gases is below the limit allowable at the operation site. The maximum concentration of all of the other gases excluding hydrocarbons is above the daily limit. It should be taken into account that we have only considered generator emissions.

If the emissions generated by vehicles, welding operations and special equipment are considered during the calculations, then these values may considerably increase. The

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temporary nature of the construction activities does not currently require the implementation of a special action plan. However, if the capacity of the generators during the operation of the pump station is equal to or above the capacity required by construction standards, then special mitigations will be required. In this case, it is required to specify the precise boundaries of the sanitary-protection zone and to define the maximum concentration of harmful gases and coordinate the relevant concentration limit. It is also required to apply measures based on the obtained results.

Facts Identified Allow for the Following Conclusions: · The assessment of atmospheric impacts during BTC construction shows that emission sources may be considered to be temporary in terms of time and space. Although the locations of these sources do not change at the pump station and Sangachal Terminal, the construction process is temporary and the concentration value of the emissions generated during the course of the construction activities are close to the allowable concentration limits and are likely to exceed them; · The generators are inevitable factors that need to be considered as one of the emission sources. In some cases, the harmful emissions generated and emitted by the generators may exceed the concentration limits due to long working hours. The chief composition of the emissions is greenhouse gases, which is contradictory to the terms of the agreement on reducing GHG as stipulated in the Kyoto Protocol; · The main negative environmental impact during BTC pipeline construction and, specifically, trenching works was dust. The sociological inquiry has also shown that the majority of the local population claimed dust to be an impact; · Another important issue is the specification of compensations and relevant standards for the payment of compensations for damage caused by dust. Therefore, it is necessary to ensure that the terms and conditions stipulated in the contract are met. According to the Production Sharing Agreement and Host Government Agreement signed by the BP Azerbaijan Business Unit, BP and BTC are exempt from taxes. However, compensation for contamination is not included in the list of tax exemptions Measures Proposed to Eliminate Shortcomings: · Although the generator emissions generate high concentrations of harmful gases around the territory of the pump station, it is necessary to discuss the significance of corrective measures depending on the dimensions of the sanitary-protection zone. In addition, relevant programmes must be developed; · A plan detailing specific actions to ensure the reduction of greenhouse gases must be developed in the future; It is also necessary to increase the scope of wetting and soaking activities during excavations of planned trenches to mitigate dust impacts. Workers must be provided with special personal protective equipment.

5.6 MONITORING RESULTS ON SOIL Team Leader S. Huseynov and experts N. Mikayilov and T. Zeynalov conducted this section of the monitoring. The main objective was to study the degree to which environmental standards are employed to protect soil during pipeline construction, as well as the timely implementation and effectiveness of reinstatement activities on damaged lands and the natural landscape. The monitoring group has developed a

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thematic report based on analyses of the results of field observations and corporative and state monitoring studies (See Attachments 2, 3). The monitoring has been completed owing to close cooperation with the relevant units of BTC and its contractors (Figure 35).and through the analysis of questionnaires completed by local residents

Figure 35 Monitoring process

Negative Impacts on Topsoil According to literary sources, the integrated control of dust must be applied in all sources to ensure the normal quality of the atmosphere, environment and air on territories crossed by oil pipelines. Therefore, it is necessary to analyse the climate of the landscape (See Attachment 2) to understand the scheme of natural weather changes and soil-ground conditions. This allows us to gauge the actual intensity of internal and external sources of dust, to ensure the observation of relevant standards during soil transportation and to utilise technology suitable for dust reduction. There may be a direct and indirect impact on soil reserves during pipeline construction. The direct negative impacts on soil reserves include: a) Reduction of fertile land areas suitable for forestation and agricultural activities as a result of excavating large areas (Figure 36);

Figure 36 Excavations during pipeline construction

b) Contamination of farming areas and the environment due to wastes and emissions generated from facility failures and technical equipment malfunctions during construction and technological operations. The negative impact is changes in the hydro- geological conditions in contaminated areas. 62 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

However, it is possible to rectify some damage to arable land caused by pipeline construction through recultivation these lands. In many countries, including the United States, Germany and Japan, recultivation means reinstating and increasing the productivity of affected lands and implementing a system of complex measures (engineering, melioration, agro-engineering, recovering, etc.) to meet the socio- economic needs of the people and establish cultural landscapes. Mine engineering recultivation means ground works to reinstate the affected areas along the route of the pipeline and to use these lands in various agricultural spheres (See Attachments 3, 4, 5). Such engineering works include the levelling of damaged relief forms, spreading fertile topsoil on the area to reinstate vegetation and sowing plant seeds, melioration works and enhancing access roads (Figure 37).

Figure 37 Reinstatement of affected soils along pipeline route (Hasansu)

In addition to backfilling the topsoil excavated as a result of construction activities, it is also possible to recover soil fertility through planting quality plant species. The following measures can be implemented to achieve the above: · Forestation plans and tactics for the rational use of soil need to be developed; the characteristics of the soil excavated on the territory of the construction company need to be studied; · Integrated measures need to be taken to increase the fertility of marginal soils using the excavated topsoil and specifications to ensure policy compliance on pipeline-crossed territories; · Chart of open soil-rock-ground layers of varying chemical compositions to rectify project-affected areas, existence of technical conditions for biological reinstatement, etc. should be considered; · Landscape and environmental diagnostics of pipeline-affected lands should be studied and relevant precautionary measures and monitoring services should be arranged to ensure the normal implementation of all of these activities; · Landscape and environmental diagnostics of pipeline-affected lands should be studied and relevant precautionary measures and monitoring services should be arranged to ensure the normal implementation of all of these activities. Criteria Considered during BTC Environmental Monitoring on Soil Resources: · Dimensions of the pipeline Right of Way; · Dimensions of the territory of the Transfer Pump Station; · Dimensions of the temporary camps; · Dimensions of the pipe yards;

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· Area and volume of the stored topsoil; · Quarries used to take soil, sand, gravel and other materials for BTC pipeline construction; · Thickness of topsoil stripped, storage conditions and period; · Thickness of topsoil stripped from ROW, storage conditions and period; · Technology used for grading soil at the construction sites, dimensions and period; · Trench excavation, pipe stringing and burying; excavation period, stringing and pipe burying activities; · Reinstatement of topsoil at permanent construction sites, technology of wind and erosion control measures, dimensions, location and period of operation; · Reinstatement of topsoil within the construction corridor, technology of wind and erosion control measures, dimensions, location and period of operation; · Soil contamination as a result of physical substances; · Soil contamination as a result of chemical substances

Monitoring Potential Although the scale and significance of the construction activities were tremendous, the potential for conducting environmental monitoring of land resources was insignificant. BTC Co. assigned approximately 10 days for seven visits (with 15 man-hours of effective performance) to conduct the monitoring, which covers varied criteria stretching a territory of 443km. BTC construction commenced in mid-2003. By the time the monitoring had commenced (December 2004), over 95% of the construction activities had already been completed. As a result, it has not been possible to monitor the crucial technological processes implemented during pipeline construction. Furthermore, the majority of the verbal and written inquiries addressed to the project executor and contractors have remained unanswered. The observation facilities operating under the stringent regulations of BTC Co. had an impact on the overall objectivity of the monitoring results. Therefore, it is advisable for BTC Co. to arrange monitoring of model areas at a convenient time. Overall, the monitoring group conducted observations at the Sangachal Terminal (twice), KP 25-32, 167km-170km (near the Mughan Camp) and at KP 380-385 (Hasansu), near Poylu (on the territory of the micro-tunnel construction), on the territories of the Kurdamir, Yevlakh, Tovuz and Mughan camps, the Yevlakh Pump Station and Kurdamir Pipe Yard.

Monitoring Observations

Dimensions of Pipeline Right of Way

With the exception of several cases, the width of the land within the pipeline construction corridor complied with the established standard (44m). However, some deviations from this rule have been observed, including:

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· The width of approximately 3,000m-long affected land area along the pipeline route on the territory of the Hasansu River was 150m (Figures 38, 39)

Figure 38-39 On the territory of the Hasansu River · Due to time restrictions, it was not possible to determine the area of the Yevlakh Transfer Pump Station. The representative of the respective company did not provide any answers to the questions raised; · The dimensions of the temporary accommodation camps (Kurdamir, Yevlakh and Shamkir) and the areas of the Kurdamir Pump Yard (Kurdamir, Mughan) have not been identified. The representative of the respective company did not provide any answers to the questions raised. It should be noted that BP/BTC and its contractors have not provided the monitoring group with any formal documentation ( topsoil stripping, volume and storage) on EIA and BTC commitments.

Volume and Storage Area of Topsoil · The measurements of the topsoil stripped from and stored at the construction site (Petrofac) of the Yevlakh Transfer Pump Station (Figures 40 and 41) have been calculated. The average volume of measured topsoil was 1,740m3 (W=5m, H=1.2m, L=290m). A cone-shaped topsoil pile (H=5m, V=50m3) is stored on an additional 50m2 area. The volume of this topsoil pile is 1,790m3. However, the volume of the 30cm thick topsoil stripped from 9ha of land had to be 27,000m3 (Attachment 2). Thus, the actual volume of the topsoil stripped is 15 times less than planned. The height of the topsoil pile (5m) is also considered to be a serious failure. The standard height of a topsoil pile must be up to 2m and the gradient must be 45 degrees

Figures 40-41 Storage area for topsoil stripped on the territory of the Yevlakh Transfer Pump Station (Petrofac)

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· Representatives of BTC Co. stated that the stripped topsoil was taken from Sangachal Terminal and delivered to the Ministry of Ecology and Natural Resources and, subsequently, to the Garadagh Executive Authority. However, investigations have proven an inconsistency in this information. If there are no other explanations, then this fact related to the storage of topsoil can be considered to be serious failure · The topsoil has not been stripped on the territory of the temporary accommodation camps in Kurdamir and Shamkir · Although the representative of the respective company has claimed that topsoil was removed at the CCIC and Petrofac temporary accommodation camps in Yevlakh, he refused to show the place where topsoil stored. Such behaviour is incomprehensible and should be considered to be a serious failure

Quarries Used to Take Soil, Sand, Gravel and Other Materials for BTC Pipeline Construction The contractor party has attempted to prevent monitoring at one site (Yevlakh). Despite our persistence, which was based on several well-founded doubts (we had been told that the quarry is located at a distance of 15km and that the road to the quarry is in poor condition), we have only been able to monitor one area. The topsoil removed from the construction site of the Yevlakh Transfer Pump Station has been transported to a hilly area 3.2km south of the station and used for other purposes. Thus, an approximate 30ha topsoil area has been damaged due to improper stripping. It has not been possible to obtain any formal documents regarding the topsoil stripped from the construction site, which proves that the area was used as a quarry (Figure 42). This fact has been recorded as a serious failure.

Figure 42 The use of the area as a quarry

Thickness, Storage Location and Appropriate Use of Topsoil Stored to Another Location

No formal information has been obtained in areas monitored according to the above criteria (i.e. Sangachal Terminal, Yevlakh Transfer Pump Station, etc.).

Stripping, Thickness, Storage Condition and Storage Period of Topsoil Stripped within Construction Area

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It has not been possible to conduct monitoring of the topsoil stripping process within the construction area (with the exception of several areas), as this process was completed prior to the commencement of the monitoring. As far as the soil’s low fertility and the sensitivity of the area to environmental impacts are concerned, the productive topsoil has not been stripped from the area covering the pipeline distance between the Sangachal Terminal and Hajigabul. We believe that there was a serious scientific and logical omission. Thus, given the soil’s low fertility and the sensitivity of the area to environmental impacts, it was necessary to focus on careful stripping (by a specific approach), short-term storage and backfilling of topsoil after pipe-lay operations in this particular area. The observations conducted in this particular area (KP29) have shown that (Figure 43) the thickness of the productive topsoil was more than 20 sm (According to Saleh Huseynovs measurement ) .

Figure 43 KP 29, BTC pipeline There have been a number of failures when stripping very productive topsoil (L=400m, W=200m) during the construction of the micro-tunnel under the Kura River near Poylu (Figures 44 and 45). According to theoretical calculations (subject to standards stipulated in the EIA Report [10]) the volume of topsoil stripped from the aforementioned area would be 28,000m3 (400m x 200m x 0.35m = 28,000m3). The actual volume of the topsoil, however, is six times less than this figure. We have also recorded that the height of the productive topsoil pile was 3m (i.e. above the standard height value equal to a maximum of 2 m).

Figures 44. 45 Micro-tunnel area, Kura During monitoring in the vicinity of the Mughan Camp, the monitoring group identified considerable failure during the course of topsoil stripping. It has been identified that the height of the fertile topsoil pile aboveground was 0.6m and its width was 1.2m. This 3 3 3 means that the actual volume of the topsoil in linear meters was 0.24m (V= /1, SH= /1

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x 1.2 x 0.6 = 0.24), while the actual volume had to be 1.46m3 in linear meters (22m x 2 3 3 0.2m = 4.4m ; V= /1, SH= /1 x 4.4 x 1.2 = 1.46). Note: These measurements are on the gas pipeline, as they were conducted during the burial of the oil pipeline.

Technology, Size and Period of Levelling Activities at Construction Area Due to time restrictions, it has not been possible to conduct monitoring of this area. Trenching, Pipe-Burying and Period of These Operations Due to time restrictions, it has not been possible to conduct monitoring of this area.

Reinstatement of Topsoil within Construction Corridor and on Right of Way; Technology for Wind Prevention and Erosion Control Measures, Scope of Works, Location and Period

Regardless of the restricted monitoring potential in this area, some visual observations and measurements were possible on the territory of the Sangachal Terminal. The drainage channel, which was proposed to prevent rain and groundwater from entering the site, has not been coated by a concrete cover which caused water erosion in some areas (Figures 24, 25). 1. 110cm (width) x 155cm (length) x 21cm (depth).

2. 6.7m (width) x 1.6m (length) x 38cm (depth) – See Attachments 5 and 6

Figure 46, 47 Water erosion on the territory of the Sangachal Terminal The erosion along the drainage channel opposite to the terminal has been more intensive (visual observation). Excluding several crossings, backfilling operations have been completed at the oil pipeline construction site and partially completed at the gas pipeline construction site as the construction activities in these areas have already completed. The monitoring has also been conducted in Gobustan where both of the abovementioned pipelines pass (KP 29-30). It has been discovered that the responsible parties was obliged to backfill the trench with subsoil from the bottom of these trenches was obligatory as no separate topsoil stripping procedure had been available onsite. The spread of this low productive subsoil on the territory of the construction site prevents vegetation from growing due to their physical, chemical and biological properties (Figures 48, 49, 50). This fact is proven on these areas and no wild plants have been seen to be growing during observations.

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Figures 48, 49, 50 Gobustan area (KP 29-30) The technology proposed for planting wild plants on the territory has been used improperly. Thus, due to topsoil grading conducted parallel to the pipeline route along the hill slopes, which is contrary to all agro-engineering procedures, which created opportunity for water erosion in the territory. Such cases have been identified on the studied area (in one incident, the width was 8cm-20cm, length 64m, and depth 5cm- 14cm). According to agro-engineering procedures, the topsoil grading on these areas with a gradient over 5° should be conducted perpendicular to the pipeline. The nutritional demands of the plants have not been considered and no organic or mineral products fertilised the area during the aforementioned activities. This fact should be considered to be a failure to apply accepted technology. During March and April, the total quantity of wild plant seeds implanted on the area was 20kg-30kg and even 50kg, which is much more than the normal quantity (7kg-8kg/ha). Eventually, the sorrowful consequences were witnessed as no seeds have started to grow. This means that the vegetation layer has not been reinstated. This has contributed to the potential erosion of the area (Figure 50). We think that the main reasons behind the fruitless results were the improper manner in which the reinstatement processes took place and the agro-engineering activities. It has not been possible to assess this factor as no information on the procurement of plant seeds has been made available. Although it is very useful to apply matting for temporary preventing soil erosion at greater inclined surfaces, it is not understandable why the topsoil is disturbed beyond the boundaries of the pipeline corridor (Gobustan, Hasansu) and is coverage by matting. Such areas are wide and the representatives of the relevant company could not provide a rational answer to this question.

Soil Contamination by Physical and Chemical Substances

It has not been possible to monitor the area based on the abovementioned criteria. However, during visual observations onsite, we have identified and taken a sample of the remains of an unidentified (yellowish) agent discharged into the water culvert (3.6m) on the territory of the Yevlakh Temporary Accommodation Camp (Petrofac) (Figure 51). We were not able to receive an answer as to its origin.

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Figure 51 Chemical agent residuals in the territory of Yevlakh Camp (Pеtrоfac)

The BTC environmental monitoring of soil reserves has revealed a failure to observe topsoil protection standards in full during pipeline construction (Figure 52).

Figure 52 Reinstatement of damaged soil and landscape In some areas, the reinstatement of pipeline-affected soils and the natural landscape is unsatisfactory. The reinstatement of these land areas to their original condition requires time, the implementation of additional measures and relevant financing. It would, therefore, be reasonable to specify the dimensions and make an inventory of these areas. Facts identified allow for the following conclusions: In some areas, it was identified that the topsoil protection standards were not met during pipeline construction. In such areas, the extent of reinstatement activities on damaged soil and the natural landscape is not in due form. For example: · Representatives of BTC Co. stated that the stripped topsoil was taken from Sangachal Terminal and delivered to the Ministry of Ecology and Natural Resources and, subsequently, to the Garadagh Executive Authority. However, investigations have proven that this information is false. The topsoil has not been stripped at the territory of the temporary accommodation camps in Kurdamir and Shamkir; · Although the representative of the respective company has claimed that topsoil was removed at the CCIC and Petrofac temporary accommodation camps in Yevlakh, he refused to show the place where topsoil stored. Due to the absence of concrete covering over the drainage channel in the Sangachal Terminal, which is supposed to prevent runoffs from entering the site area, we have observed that a portion of the area has been exposed to erosion. Generally, the technology applied for planting wild plants along the pipeline area to prevent erosion has been improperly designed. Due to topsoil grading conducted parallel to the pipeline

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route along the hill slopes, the condition has been created for water erosion in the territory. The extent to which reinstatement activities have been conducted is unsatisfactory. The spread of construction activities beyond the boundaries of the construction corridor has damaged and contaminated agricultural lands located along the transportation communications. As a result, they have subsequently been damaged. Measures Proposed to Eliminate Shortcomings: · Identify and implement urgent measures to eliminate shortcomings as soon as possible or prevent them from happening on other areas. Firstly, such land areas must be specified, an inventory of these areas must be made and required reinstatement activities must be implemented · Expand NGO potential in conducting environmental monitoring on project- affected lands and encourage NGO participation during the implementation of reinstatement activities · Identify all pipeline areas exposed to erosion and develop and implement a set of actions · Develop and implement the relevant program and measures to make an inventory of eroded land areas, payment of compensations to landowners in Samukh, Shamkir, Tovuz and Akstafa and reinstate these lands to their original condition · All failures identified during the course of the monitoring should be discussed with the participation of specialists of the project executor, contractor and NGO monitoring group

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6. CONCLUSIONS AND RECOMMENDATIONS

The summary table below presents the results of a facilitated workshop between BP/BTC and the Environmental NGO Working Group Representatives on May 13, 2005.

Meeting Attendees: Richard Kingham (BTC, Environmental Manager), Elnara Huseynova (BTC,ESMS Coordinator), Nayla Aliyeva (HSSE Environmental dvisor) Khatira Iskender ( BP,Community Relation Manager), Matin Akhundlu (BP Community Relation Coordinator), Andrew Buchman (BP,External Engagement Project Strategy Coordinator) Galib Efendiyev (OSI Transparence Oil Revenue and Public Finance Programme Director), Esmira Asadullayeva (OSI, NGO Monitoring Programme Coordinator), Elmira Gasimova (NGO Monitoring Support Officer), Fikrat Jafarov (Coordinator of the Ecological monitoring working group), Shamil Huseynov (Evaluator of the Ecological monitoring working group), Saleh Huseynov (Member of of the Ecological onitoring working group), Namik Rzayev (Member of the Ecological monitoring working group), Niyazi Aliyev (Expert of the Ecological monitoring working group)

Accept (A) : We accept the recommendation and finding and we will take steps to address your recommendation or provide evidence on how BP/BTC has already addressed this issue.

Accept with Qualification (AwQ): This applies to recommendations or findings where we understand and appreciate the findings and/or recommendations the WG’s have made in their course of investigation, but we disagree with some of their views regarding the facts and/or steps the company has taken to address these concerns. We therefore “qualify” our agreement in providing details of our policies and actions that already address the issues raised. We also use this criteria in cases where there is a mismatch between the NGO finding and related recommendation.

Reject (R): We disagree with the WG finding and recommendation and in the BP/BTC Summary provide our views.

In some cases the findings and recommendations needed further investigation and all parties agreed to follow –up the discussions in the next round of monitoring. (D-f05) .The ‘Next Steps’ column in the table reflects actions to be taken where appropriate.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

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No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps response* Agreement, (A, AwQ, Disagreement, D-f05, R) 2005 follow-up 1 The fulfilment and control of BTC should reinforce AwQ BTC agrees with the notion that close environmental management control over contractor consultation with contractors is vital for quality requirements was not arranged at performance and environmental peformance and management; the required level in the BTC’s considerably update their however we disagree with the inferrence that contractors and subcontractors. monitoring system. this ‘control” and the appropriate monitoring The companies involved in systems were not arranged as required . construction activities conducted The construction contractor’s Functional Leads low-level educational and are given specialist support by an awareness activities during BTC Environmental Manager, Environmental pipeline construction. As to Engineer, Environmental Field Officers, and a whether they were aware of the Biorestoration Specialist. actions implemented to protect BTC has taken the lead in delivering contractor the plant and animal kingdoms, and company monitoring commitments. This 73.3% of respondents stated, has involved establishing a field laboratory and “No.” staffing it with qualified chemists. BTC holds all monitoring records and shares the data with the contractor through a shared access folder. As to the level of awareness among construction companies on the actions to protect animals and plants, BTC is responsible for pre-clearing important plants and animals off the right of way prior to construction.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

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No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue Next Steps response* result: (A, AwQ, Agreement, D-f05, R) Disagreement, 2005 follow-up 1.1 The key issue concerns the A As part of the Environmental Investment Program, commencement of BTC plans to implement community based environmental awareness environmental education and awareness projects in studies at secondary schools the Project Affected Communities (PACs) along and teaching younger the right of way in Azerbaijan, 106 PACs will generations to care for the benefit from this programme by: environment. All the · Receiving environmental awareness trainings respondents who involved in the questionnaire survey · identifying and discussing local expressed the environmental issues and concerns; abovementioned desire. · developing project proposals to address an outstanding concern; and · competing for grants for Medium Size Project 1.2 A deficiency observed in the A deficiency observed in the AwQ All documentation requiring review or approval by A Action: better environmental management is environmental management national bodies is submitted in both Azeri (to communicati maintaining documentation mostly in is maintaining documentation comply with national legislation) and English on with English. This means that the mostly in English. This (working language of BTC and BP). However, Azerbaijani requirements of the Law on the State means that the requirements most plans and procedures being internal Monitong Language of the Azerbaijan Republic of the Law on the State documents are available only in English. It is Groups, are not being met. It should be noted Languaje of the Azerbaijan acknowledged this makes it challenging for some including that the BTC and CCIC maintain all Republic are not being met. It national monitors to understand the full extent of establishing of their main documents in English should be noted that BTC our environmental activities, but these documents info request which cause difficulties for public to and CCIC maintain all of are written for internal use and not the general systems and make an acquaintance with them. their main documents in public. The requirements of the plans and increased English, which cause procedures are delivered to the workforce in Azeri number of difficulties fro public to make and other languages through formal and on-the-job translated acquaintance with them. training. documents

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject 74 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

WASTE MANAGEMENT No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue Next Steps response* result: (A, AwQ, Agreement, D-f05, R) Disagreement, 2005 follow-up 2 BTC and its contractors have The full implementation of Reject BTC agrees that the full implementation of the Waste Disagreement made a commitment to manage the waste management plan Management Plan is fundamental and monitors this wastes in accordance with should be ensured and all activity very carefully. European standards. However, contractor organisations However, we cannot accept the observation that the relevant BTC services have failed should be required to contractor is failing to implement its commitments. This to arrange for the fulfilment of comply is demonstrated by the fact that most project waste is commitments in the required incinerated in a built for purpose incinerator. Waste manner at sites where the which cannot be incinerated in this unit and for which monitoring was conducted. EU compliant disposal options are not yet available are Company contractors fail to currently being stored in line with EU requirements. ensure the quality implementation This waste will remain in storage until EU compliant of the commitments made under disposal options become available. The authors cited BP rules and standards on sites the absence of a treatment system for wastewater coming from the incinerator scrubber unit as a non- compliance. This is not correct because the wastewater from this system was stored in IBC drums in a bunded area and the need for a treatment system was already being addressed. Soon after the NGO audit, BTC installed a treatment system to the incinerator and has since disposed of the backlog of this wastewater. The analyses of samples taken after treatment of the wastewater confirm compliance with project discharge standards.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

75 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps response* Agreement, (A, AwQ, D- Disagreement, f05, R) 2005 follow-up 2.1 Several waste containers were It is also important to install Reject Every attempt is made to segregate waste at Disagreement BTC can checked within the Sangachal modern equipment for finding source at STEP. This is achieved through the provide the Terminal during the inspection. disposing domestic and toxic placement of designated skips throughout the Monitoring Prohibited substances and wastes wastes R-AwQ site, primarily for non hazardous waste. Group with an were identified within these Hazardous wastes (paints, thinners) are further opportunity to containers, although they had segregated from non hazardous waste. During verify this indicated otherwise. the site visit, an empty cooking oil can was response during It was also observed that wastes noted to be the offending waste type segregated future accumulated for incineration at in a general waste skip which is not equipped to monitoring in the Kurdamir Camp contained handle “oil products”; cooking oil cans are not a 2005. several items, which are not prohibited substance. allowed to be incinerated BTC’s construction contractors employ a specialist waste management company to operate and manage waste disposal facilities including the incinerator. Wastes are segregated on site and unsuitable items removed before being loaded into the incinerator. Wastes that cannot/should not be incinerated are bulked up and then taken to a centralised storage facility in Baku. They will remain there until EU compliant end points are available.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

76 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue Next Steps Recommendation response* result: Agree- (A, AwQ, ment, Disagre- D-f05, R) ement, 2005 follow-up 2.1.1 The main provisions of the waste R BTC’s contractors do incinerate their combustible Disagreement BTC can provide management rules adopted by BTC (i.e. non-hazardous wastes and wastewater from the the Monitoring not incinerating domestic wastes, com- scrubber system is properly managed (see previous Group with an pleting waste-water treatment) are being response). opportunity to violated by the contractor. For example, AA Services do not provide waste management verify this АА Services regularly transported accu- services to BTC or its construction contractors. response during mulated waste to the Baku and Sumgayit AA Services transports non hazardous waste to future monitoring waste dump areas where they had arrang- municipal landfill facilities from STEP and has never in 2005. ed for its incineration. This is against the arranged for incineration of waste. Commencing aforementioned rules. Moreover,MESCO June 1, a new interim non hazardous waste landfill transports domestic wastes that have ac- cell will be used for disposal of non hazardous cumulated in the camps and varying in- wastes until the long term EU compliant non frastructure to Kurdamir for incineration hazardous waste landfill site is complete. 2.1.2 As has been observed, the environment AwQ The construction contractor has waste collection Provide evidence has been polluted with domestic wastes points at regular intervals along the right of way and that toolbox talks and, in particular, discarded plastic bags the bins provided allow for the segregation of are delivered on in all of the territories where pipeline different types of waste. All domestic waste should the subject of on- construction has been ongoing. In be properly binned and subsequently removed from site housekeeping Akstafa, local residents stated that a site. [Not all workers respect the project require- and waste number of livestock were poisoned by ments. We will continue to monitor behaviors and management. these wastes. educate the workers to help reduce the occurrence of Demonstrate the litter on site]. Upon completing various sections of measures taken the pipeline, the construction contractor is by CCIC to responsible for cleaning up and reinstating the site. clean-up sites BTC has not received a formal complaint about where the labour livestock being harmed as stated by the authors of force has not the report. When received, complaints/claims are fully complied taken seriously and are investigated. If a claim were with Company substantiated fair compensation would be provided. requirements.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

77 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps Recommendation response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 3 Azerbaijan’s unique flora and fauna have All previous and R Ecological baselines were completed in 2005 follow up During not been properly reflected by BTC’s current programmes cooperation with the Institute of Botany (IoB) and forthcoming documentation on biodiversity (EIA, and projects on Institute of Zoolgy (IoZ). Both the national and monitoring Biodiversity Strategy, etc.), which seems biodiversity must be internationally listed species were considered activites in to limit the effectiveness of measures redeveloped taking during the ESIA and subsequent development of 2005, BTC aimed at protecting and breeding fauna into consideration the pre-clearance and translocation programs. will provide and flora species. CCIC and Petrofac entire list of flora and BTC continues to work with the IoB and IoZ to the representatives verbally provided the fauna species. pre-clear the ROW of all the RDB and Red Listed documentation monitoring group with information but species potentially encountered in various areas of necessary to with no documents whatsoever regarding the country through which the pipeline passes [Pre- verify our the relocation of the fauna species clearance and translocation is BTC’s position on observed within the pipeline corridor as responsibility, not CCIC or Petrofac’s]. BTC has ecological envisaged in the ESIA document. letters from the IoZ and IoB stating the necessary protection. Assessing the implemented activities was pre-clearance has been completed. difficult as BP/BTC failed to deliver the Monitoring for ecological recovery is scheduled to results of the internal monitoring on commence after initial biorestoration of the full biodiversity to the monitoring group. right of way. Biorestoration Monitoring Plan has been prepared.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

78 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps Recommendation response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 3.1.1 BTC’s commitments to protect It is advised that the R Please refer to the previous answer. The ecologi- 2005 follow up During biodiversity are not honoured to the full desk studies be cal baseline information presented in the ESIA is forthcoming extent. Although the ESIA document substituted with the based on desktop and field studies. Areas where monitoring envisaged the protection of several types field studies during ecologically important species were encountered activites in of endangered plants and animals, which the development of during the field studies (or could be expected) were 2005, BTC have been entered into the Red Book, it the EIA report. marked onto an environmentally sensitivity map. will provide was revealed during the monitoring that Trained specialists By monitoring construction progress on this map the measures had been taken to protect only must execute these BTC is able to ensure pre-clearance is undertaken documentation one plant and animal species (Iris and tasks on time. This map is also available to the con- necessary to tortoise) struction contractor. BTC has produced posters verify our illustrating and providing information about all the position on ecologically important species identified during ecological field surveys as being present. along the right of protection. way. The objectives of the posters were to increase the workforces’ awareness of project commitments and interest in biodiversity. We have also publish- ed this information in BTC’s newspaper, entitled “Getting it Right”. During the course of the pre- clearance work it is largely the iris and tortoises that have been relocated but the IoZ and IoB were looking out for all the listed species that could have been present in the ecological pre-clearance areas. On a number of occasions CCIC has stopped construction when they have encountered other types of wildlife on the right of way. They commu- nicate their finds to the environmental team who then ensure the individuals are saved from harm.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

79 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps Recommendation response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 3.1.2 The construction of the pipeline impacted It is necessary to AwQ With BTC almost complete, we agree that our biodiversity, albeit this impact was intensify activities focus should be on the rehabilitation of the BTC BTC to ensure insignificant. In some areas, trees were designed to conserve part of the right of way. Indeed, much work has that the cut down and vegetation and lairs of wild and rehabilitate already been completed over the BTC strip. Monitoring animals were destroyed endangered species of After completion of the SCP pipeline, the entire Group is flora and fauna. This right of way will be restored according to the provided with will require the provisions of the Reinstatement Contractor Control another establishment of a Plan. opportunity to joint working group BTC will monitor the effectiveness of pipeline see how we with community reinstatement for a number of years and is likely to conserve and representatives. undertake this activity in close co-operation with rehabilitate the Moreover, a specific national experts. right of way action programme Translocated plants will ultimately be replaced pre- and post- should be developed from where they came. Over time as the habitat construction. and implemented. recovers, it is reasonable to expect the local fauna Initially, this to return to the right of way of their own accord programme should provide for the assessment of the conditions of all endangered species and the implementation of specific actions to improve their conditions.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

80 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps Recommendation response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 3.1.3 Local communities are not sufficiently It is crucial for flora R (finding) We agree with the recommendation however, it is supplied with electric energy and and fauna monitoring beyond the remit of BP/BTC to resolve the domestic gas. They satisfy this demand to be conducted country’s energy supply issues. Monitoring the on by cutting timber and greeneries. during the spring, A ROW is scheduled to commence after Consequently, these ecosystems are early summer and (recommenda reinstatement and biorestoration of the BTC and destroyed. This is inadmissible on autumn but not tion) SCP pipelines has been completed. A territories crossed by a pipeline as during the winter. Biorestoration Monitoring Plan has been prepared. significant as BTC. This is the only The frequency of monitoring activity will capture option capable of seasonal aspects of recovery. providing any insightful information on flora and fauna in a specific area. Monitoring activities should be focused on the assessment of the general conditions of biodiversity and the impact of BTC pipeline construction

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

81 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps Recommendation response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 3.1.4 One of the measures designed to ensure Due to the A (rec) Mismatch between finding and recommendation successful erosion control is the prolongation of BP is in discussion with the Ministry of introduction of the Vetiveria plant on a construction Environment on the planting of Vetiveria species pilot area at the Sangachal Terminal. We activities, it is at STEP and is likely to undertake trial plantings in think that the introduction of Vetiveria, necessary to expand conjunction with the Ministry. which was imported from South Africa, and continue the The Spur Thighed Tortoise conservation may lead to negative consequences implementation of the programme is ongoing at STEP, with more than Spur-thigh Tortoise 174 tortoises bred in captivity. The center has Conservation recently been relocated to the Caspian Energy Programme as part of centre to allow it to play a more educational role the Biodiversity for visitors, both students and others. Protection Consideration is now being given to the strategy Programme needed for their successful release. A survey will be undertaken to identify an appropriate location for their release, taking into account the area’s carrying capacity and anthropogenic load; it is envisaged the area will be a protected one.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject 82 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps Recommendation response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 3.1.5 It is crucial for AwQ While BTC’s CIP provide communities with some On-going forestation activities assistance, as requested, in meeting priority energy to be conducted on access needs, it is beyond the remit of BP/BTC to territories located “resolve” the country’s energy supply issues. We along the route of the agree that assistance in providing alternate forms pipeline, destroyed of energy is vital, and BP will be doing this (see forests to be restored responses to the Social Group report). and protected and BTC has destroyed no forests in Azerbaijan; greeneries to, by and large, cover a more BTC is committed to reinstating all lands through expansive territory. which the pipeline has traversed to as close to its 35.9% of the preconstruction condition as practicable.. respondents who involved in the questionnaire survey expressed abovementioned desire. Therefore, firstly, the issue regarding supplying the community with energy should be resolved

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

83 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps Recommendation response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 3.1.6 The introduction of A The report refers to a grass species potentially of species harmful to the use at the Sangachal terminal. While this is biodiversity of beyond the scope of this study, it is a topic that Azerbaijan to ensure warrants attention. erosion control (i.e. The Vetiveria species was imported according to Vetiveria) must be Azerbaijan legislation through import procedures. agreed upon with the BP is in discussion with the Ministry of relevant state bodies. Environment on the planting of the species for The implementation erosion control purposes. of this process should be controlled by state bodies.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

84 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

WATER RESOURCES

No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps Recommendation response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 4 As a result of the Sociological Survey Seasonal agricultural AwQ All permanent or semi-permanent irrigation ditches and investigations of the complaints activities should be are either maintained during construction or expressed by the local community, it was taken into account restored immediately after construction discovered that the irrigation systems during the CCIC endeavors to avoid disturbing water supplies were not rehabilitated in a timely manner construction phase to farmers. When this has occurred, CCIC/BTC in some areas (Samukh, Shamkir and and a relevant action has addressed nearly all complaints within one or Tovuz districts). The aforesaid irrigation plan should be two days. Most communications we have received systems were put out of operation during developed and from farmers are about the need for temporary construction activities and rehabilitation applied to ensure the irrigation ditches to be dug across the right of way. measures were delayed reinstatement of We are happy to discuss farmers’ needs and irrigation systems accommodate their requests whenever possible to (inter-farm and ensure crops are watered. internal irrigation Some permanent irrigation channels have been channels and subject to temporary restoration [to maintain flows collectors) damaged and help prevent erosion] as they cannot be fully during pipeline reinstated until after construction of the SCP. construction.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

85 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps Recommendation response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 4.1 The operation of infrastructure and The use of modern Reject Sewage generated in the construction camps is 2005 follow up Ensure the treatment of domestic sewage waters treatment technology actually treated using a modern activated sludge sewage generated at the camps during the and facilities for the treatment system that includes a ‘full sequence’ of treatment construction period does not follow full complete treatment of treatment, i.e. aeration, filtration and UV system is fully sequence (i.e. mechanical treatment, the sewage generated treatment. The treated water is discharged to the explained and physiochemical treatment, chemical during the course of municipal sewer in line with approvals from the demonstrated treatment, biological treatment, etc.) the construction (the appropriate regulators, not to sensitive rivers, lakes to the current equipment or reservoirs. monitoring does not allow for the group during complete treatment of the next round sewage water) should of monitoring be legalized, as well in 2005. as the disposal of treated sewage to water reservoirs after testing.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

86 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps Recommendation response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 4.2 Monitoring indicates the disturbance It is necessary to AwQ Finding BTC acknowledges that wet-cut river crossings will Disagreement BTC can of natural watercourses and partial identify whether the Reject affect natural river systems but has implemented provide further alteration of riverbed structures failures discovered in Recommendati mitigation measures to help ensure such impacts are information on occurred as a result of pipeline the water reservoirs on localised and reversible. BTC is not aware of any the mitigation crossings during the failures in water reservoirs. Indeed, no open cut river of impacts to construction and crossings take place close to reservoirs. rivers and project- Due to pollution prevention controls there have not water implementation phase been any accidental spills to rivers or reservoirs and resources in is a general monitoring using a photospectometer proves that 2005. characteristic of the sediment levels remain similar upstream and pipeline area. It is downstream of river crossing activities. also necessary to CCIC has implemented mitigation measures to avoid consider the significant disturbance to flows. Such mitigation hydrometric and includes installing flume pipes or re-directing the flow hydrologic in heavily braided watercourses during construction of characteristics of the open cut river crossings. area and apply a For environmental, health and safety reasons the series of measures majority of wet cut crossings were completed during aimed at the dry summer months when the rivers were either consolidating dry or flows could easily be re-directed. riverbanks and A number of rivers including the Kura were crossed riverbeds, erosion using horizontal directional drilling or micro- control and tunnelling methods to avoid disturbing the riverbed preventing water potentially affecting important fish spawning grounds. contamination. BTC Operations will monitor river crossings to ensure erosion control measures remain effective.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject 87 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 4.2.1 It is nearly impossible to suggest any AwQ BTC follows the same precautions for all Agreement Closed general or specific opinions or provide a waterways crossed during construction. These long-term forecast on the basis of the provisions ensure that contaminants are kept away monitoring, as only a very small portion from watercourses and are stored in bunded areas of the watercourses has been reviewed. or on drip trays. No vehicle refuelling can take The sensitivity of the water resources to place within 50m of a river or lake. Machines contamination and their exposure to working in rivers are well maintained to prevent more intensive contamination (during leaks. the pipeline construction or operation) Visual inspections of river crossings will be carried call for the implementation of long-term out during the life of the development to identify monitoring. It is also necessary to utilise whether any additional measures are needed to pertinent monitoring equipment or control erosion. conduct laboratory analyses of the taken samples 4.3 Highly toxic Modern equipment should be installed AwQ The wastewater from the scrubber system is treated Agreement Closed wastewaters generated and used for the treatment of toxic prior to discharge to ensure metal concentrations during incinerator waters. are within strict project standards. It should not, operations are stored however, be considered “highly toxic”. Indeed, untreated for long pre-treatment sampling and analysis indicates that periods of time. the water does not always require treatment to meet the project standards but it is all routed through the filtration system anyway.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

88 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

ATMOSPHERE No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps response* Agreement, (A, AwQ, Disagreement, D-f05, R) 2005 follow-up 5 The assessment of atmospheric Although the generator emissions R The main sources of emissions at PSA2 are two Disagreement Offer to impacts during BTC construction generate high concentrations of modern power generators which are located in review shows that emission sources may be harmful gases around the territory construction camp complex away from office pertinent considered to be temporary in terms of the pump station, it is necessary and living accommodation units. Other sources standards of time and space. Although the to discuss the significance of include a small number of plant and vehicles. during 2005. locations of these sources do not corrective measures depending on Emissions from welding torches are minor. Al- Share different change at the pump station and the dimensions of the sanitary- though the authors have applied national air methods for Sangachal Terminal, the construc- protection zone. A program should quality standards they are not actually the cor- completing the tion process is temporary and the be developed to reduce (GHG) in rect standards for the BTC pipeline project. It is assessment in concentration value of the emis- the future. In addition, relevant understood by the regulatory authorities in 2005. sions generated during the course of programs must be developed Azerbaijan that World Health Organization and the construction activities are close European Union standards apply given the pro- to the allowable concentration li- visions of the HGA and ESIA approval. The mits and are likely to exceed them. full details of the methods used by the authors The generators are inevitable fac- to calculate emissions and concentrations of tors that need to be considered as individual pollutants were not made available one of the emission sources. In to BTC for review. It can, however, be deter- some cases, the harmful emissions mined that emission calculations are not based generated and emitted by the gene- on the emissions data provided by the manufac- rators may exceed the concentration turer of the equipment. It also appears the limits due to long working hours. emission concentrations were not estimated The chief composition of the emis- using internationally accepted methods (such as sions is greenhouse gases (GHG), an emissions dispersion model, e.g. AIRMOD). which is contradictory to the terms The construction contractors are already using of the agreement on reducing GHG modern technology to build the pipeline. It is as stipulated by the Kyoto Protocol therefore not realistic to expect them to further reduce their emissions of GHGs.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

89 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 5.1 The main negative It is also necessary to increase the scope AwQ Workers have been provided with appropriate PPE. Agreement Continue dust environmental impact of wetting and soaking activities during We agree that dust can be a problem thus wetting suppression during BTC pipeline excavations of planned trenches to and soaking activities have always been activities and construction and, mitigate dust impacts. Workers must be widespread to reduce the generation of dust in increase specifically, trenching provided with special personal active work zones. wetting as works was dust. The protective equipment summer sociological inquiry approaches. has also shown that the majority of the local population claimed dust to be an impact 5.2 Another important Therefore, it is necessary to ensure that AwQ It is important to define how complaints or claims issue is the the terms and conditions stipulated in should be communicated and processed. BTC and specification of the contract are met. According to the the construction contractor therefore follow a relevant standards, Production Sharing Agreement (PSA) formal procedure to log complaints and ensure that which define the and Host Government Agreement the issues raised are closed out in a transparent compensation amount (HGA) signed by the BP Azerbaijan manner. Taxation provisions of the HGA or the to be paid for damage Business Unit, BP and BTC are exempt PSA do not govern the issues of whether or not caused by dust from taxes. However, compensation for compensations should be paid. contamination is not included in the list of tax exemptions.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

90 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

SOIL CONDITION

No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue Next response* (A, result: Steps AwQ, D-f05, Agreement, R) Disagreement, 2005 follow-up 6 Occasionally, the Identify and implement urgent AwQ BP/BTC stand behind the reinstatement plans, Agreement requirements and norms measures to eliminate shortcomings performance, and achievements to date. The following for storing and as soon as possible or prevent them measures have been employed by the project: protecting topsoil were from happening on other areas. - Depth of productive topsoil layer determined not observed during Firstly, such land areas must be - Topsoil stripped and stored separately from subsoil pipeline construction and specified, an inventory of these areas - Topsoil protected whilst in storage at edge of right of the installation of must be made and required way relevant infrastructure. reinstatement activities must be - Topsoil not worked unnecessarily to minimize When making calcula- implemented. This will require the disturbance to micro-organisms tions, it was revealed establishment of a joint working - Subsoil not stored where topsoil has not been stripped that the height and group with community represent- - Trench backfilled and compacted to 95-105% of sloping angle of the tatives. Moreover, a specific action ambient compaction fertile topsoil exceeded programme should be developed and - Reprofile right of way and lightly till subsoil ready for norms. This may cause implemented. replacement of topsoil. the soil’s natural condi- - Replace topsoil and seed as necessary tions and fertile layer to deteriorate. The spread - Erosion controls (e.g. jute matting). of construction activities - The use of punchlists to identify any deficiencies in beyond the boundaries of the above that require corrective actions be taken by the construction corridor the contractor. has caused damage and Full involvement of landowners in Land Exit Agreement. polluted agricultural BP/BTC is meeting its commitments and has received crops along the positive feedback from of international audit and transportation routes reinstatement experts.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

91 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 6.1.1 Representatives of Develop and implement a relevant R Stripped topsoil from STEP has been placed at a STEP stated that the programme and measures to make an specific location designated by the Garadag stripped topsoil was inventory of eroded land areas, payment Executive Committee and approved through the taken from Sangachal of compensations to landowners in ESIA. The topsoil remains there. Recommen- Terminal and Samukh, Shamkir, Tovuz and Akstafa dation - please refer to the response provided in delivered to the and reinstate these lands to their Section 6, above. Ministry of Ecology original condition and Natural Resources and, subsequently, to the Garadagh Executive Authority. However, investigations proved an inconsistency in this information. It was also revealed that the topsoil had not been stripped on the territory of the temporary accommodation camps in Kurdamir and Shamkir

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

92 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 6.1.2 Although the Identify all of the pipeline areas AwQ Finding: Talk the representative of the exposed to erosion and develop and Topsoil was actually stripped by the owner of the monitoring respective company implement a set of actions land used by CCIC for Yevlakh Camp. BTC has group through has claimed that provided the Monitoring Group with photographic the relevant topsoil was removed at evidence of the topsoil piles which are located just documentation the CCIC and Petrofac outside the perimeter fence. and show how temporary Recommendation: Here the authors address an the accommodation camps important issue in pipeline construction. That is requirements in Yevlakh, he refused why areas prone to erosion were identified on the are to show the place pipeline alignment sheets before construction implemented in where topsoil stored started. Areas prone to erosion are coded. The the field. codes relate to special requirements for reinstatement as documented in the Reinstatement Specifications. The contractors explain how they will deliver these requirements in their Reinstatement and Biorestoration Plans and Procedures.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

93 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue result: Next Steps response* (A, Agreement, AwQ, D-f05, Disagreement, R) 2005 follow-up 6.1.3 Due to the absence of Expand NGO potential in conducting AwQ Finding: The Sangachal Terminal Expansion concrete covering the environmental monitoring on project- Project is not part of the BTC Pipeline Project and drainage the sides of affected lands and encourage NGO is managed by a different delivery team. However, channel around the participation during the implementation STEP is currently considering using vegetation to Sangachal Terminal, of reinstatement activities. The prevent erosion in the non concreted areas. which is supposed to conditions of re-vegetation, land and prevent runoffs from reinstatement along the route of the oil Recommendation: BTC supports the notion of entering the site area, a pipeline should be assessed during the continued NGO monitoring and would welcome portion of the land has environmental monitoring of soils. All the opportunity to provide greater clarity on how been exposed to drawbacks and failures identified during the project manages environmental issues, in erosion. Generally, the the course of the monitoring should be particular pollution prevention and reinstatement. technology applied for discussed with the participation of sowing the seeds of specialists of the customer, contractor wild plants along the and NGO monitoring group pipeline area to prevent erosion has been improperly designed. Thus, due to topsoil grading activities conducted parallel to the pipeline route along the hill slopes, the water has exposed the territory to erosion *A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

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No. NGO Finding Related Recommendation BP/BTC BP/BTC Summary explanation Dialogue Next Steps response* (A, result: AwQ, D-f05, Agreement, R) Disagreement , 2005 follow-up 6.1.4 The extent to which A relevant programme should Reject The right of way cannot be fully reinstated until Provide further clari- reinstatement and vegetation be developed and implemented Finding after construction of the SCP Pipeline. To date, ty on the reinstate- activities have been conducted to ensure land rehabilitation and biorestoration has only taken place over the BTC ment and biorestora- on monitored territories is restoration of vegetation. AwQ strip (i.e. 12m of the total 44m right of way), tion strategy. Talk the unsatisfactory. Therefore, Recommenda except in small number dual lay areas, e.g. Mud Group through the these activities should be tion Volcano Ridge, which has been fully reinstated to relevant documenta- repeated high standards. tion and show them BTC is monitoring the success of biorestoration how the specific re- over BTC and will repeat seeding and consider the quirements are im- application of dung or fertilizers if necessary. plemented in the field. 6.1.5 Construction activities (tren- Note: For information on AwQ BTC takes claims that the project has caused ches excavation, pipe–laying, suggestions and damage to infrastucture very seriously. The report etc.) and the movement of recommendations as to how to cites, “significant damage to local infrastructure” heavy lorries have caused sig- rectify damage caused to but fails to prove these statements as fact. BTC nificant damage to local traffic infrastructure and facilities by does, however, recognize that some instances of infrastructure, particularly to heavy machinery, please refer infrastructure damage have occurred. roads. The damaged infrastruc- to the relevant reports ture has not been rehabilitated. developed by the working The contractors are obligated to repair the roads In addition, the movement of groups on the “Use of Local that were used for construction purposes to at least these heavy lorries and machi- Resources” (Assessment of the original condition. The contractors took nery has also damaged facili- Impact Caused by BTC Pipeline photographs and recorded the conditions of roads ties of farming significance. Construction on Economical at the start of the project and so have a baseline Consequently, this has had a Status of the Regions) and that will be used to make sure that roads are in as negative impact on the “Social Impacts of BTC good or better condition than when the project environment (increase in dust Pipeline during the started. This is an ongoing process throughout the and draught) in these areas Construction Phase.” construction phase.

*A, AwQ, D-f05, R: Accept, Accept with qualification, Decline to accept or reject, submit for 2005 Programme, Reject

95 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

7. ACKNOWLEDGEMENTS Members of the BTC Ecological Monitoring Group express their thanks and sincere gratitude to the following individuals, organisations and companies for the valuable advice, support and information that they provided to the monitoring group throughout the implementation of the project: · Azerbaijan’s Representative Office of the Open Society Institute-Assistance Fund and especially to Head of OSI–AF Mr. Farda Asadov, Project Coordinator Mr. Galib Efendiyev, Ms. Jamie Necezcar and Expert Consultant Mr. Sabit Bagirov; · Senior BTC/CCIC employees on environment Mr. Richard Kingham, Mr. David Maynard, Mr. Juan Boulos and EIA staff Ms. Yvetta Filatova, Ms. Naila Aliyeva, Ms. Aynura Musayeva, Ms. Elnara Huseynova, Mr. Zaur Hasanov, Ms. Sevil Sadigova, Mr. Najaf Hasanov, Mr. Eldar Alakbarov, Mr. Elmar Alaskarov, Mr. Osman Tarzumanov, Mr. Azar Mirzayev, drivers Mr. Jamil Jafarov, Mr. Azar Pirmammadov and others; · BP Community Relations Manager Ms. Khatira Iskender, BP Events Officer Mr. Jamal Tagiyev and translator Ms. Elmira Gasimova; · International experts Dr. Clive Morgan and Mr. Honore R. Ndoumbe, who were invited by OSI to assist the monitoring group in the implementation of the monitoring and analyses of the results; · National and international experts and NGOs who conducted meetings with the working group during the monitoring preparation and implementation processes.

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8. BIBLIOGRAPHY 1. Azerbaijan International Operating Company. Western Route Export Pipeline, Azerbaijan. Environmental Impact Assesssment. 1997. 2. Alekperov, I. K. “Pelogen Ciliates in Rearing Ponds of the Kura Experimental Sturgeon Hatchery.” Zoological Magazine. 62 (3), 8pp. 1983. 3. Aliyev, F. Baku Water Supply Prospects and Problems, 7pp (in English and Russian: no bibliographic details available). 1995. 4. Аliyev, G. A., Gasanov, S. G., Iskenderov, I. S., Babayev, M. P. and Mamedov, G. S. Azerbaijan Soils (Map). 1991, 1996. 5. AIOC. Environmental Impact Assesssment for Early Oil Production, Azerbaijan. Baku, Azerbaijan. 335pp. 1996. 6. Babayev, М.P. Irrigated Soils of the Kura-Araz Lowland and Their Productive Capacity. Baku Elm Publishers. 184pp. 1981. 7. Bagirov, E., Nadirov, R. and Lerche, I. Flaming Eruptions and Ejections from Mud Volcanoes in Azerbaijan: Statistical Risk Assesssment from the Historical Records, Energy Exploration and Exploitation. 14 (6), 49pp. 1996. 8. Bannikov, А.G., Rustamov, А.К., Vakulin, А.А. Protection of Nature. Agropromizdat Publishers. 1985. 9. Bogdanovski, G.А. Chemical Ecology. Moscow. 237pp. 1995. 10. Draft EIA for the BTC Oil Pipeline. 2001. 11. Borodavkin, P.P., Kim, B.I. Environmental Protection during Construction and Operation of Main Pipelines. Nedra Publishers. 1981. 12. BP Amoco. Getting HSE Right. 1999. 13. BP Azerbaijan. Sustainable Development and Biodiversity Strategy and Action Plan. BP HSE Department. 2001. 14. Budagov, B. Overview of Publications on Geomorphology and Ground Features along the Western Route Export Pipeline. Unpublished Report Made for AIOC. 1996. 15. Budagov, B. “Report on Yevlakh District Climate.” CIA Fact Book. 1999, 2001. 16. European Bank for Reconstruction and Development. Environmental Procedures. 1996. 17. EBRD. Investors Guidebook for Environment, Health and Safety -- Azerbaijan, Georgia and Armenia. 1998. 18. Efendiyeva, I. M. “Ecological Problems of Oil Exploitation in the Caspian Sea.” Journal of Petroleum Science and Engineering. 28 (4), 5pp. 2000. 19. ERM. Western Route Pipeline, Azerbaijan, Baseline Environmental Field Survey Report: Volume 1. 2000. 20. ERM. July 2001. Public Consultation and Disclosure Plan for BTC Pipeline Project ERM. Public Consultation and Disclosure Plan for SCP Project. October 2000. 21. EU EIA Directive (85/337). 22. EBRD. Environmental Procedures. 1996.

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23. EBRD. Investors Guidebook for Environment, Health and Safety–Azerbaijan, Georgia and Armenia. 1998. 24. Eyubov A. 1993. Azerbaijan Agroclimatic Atlas. Azerbaijan Academy of Sciences. 25. Eyubov A., 1993. Agroclimatic Resources and Some Problems of their Rational Utilisation for Regional Development. Quaestiones Geographicae. Vol 15/16. 37-42pp. 26. Eyubov, A., Gorchiyev, A. Overview of Publications on Climate and Air Quality along the Western Route Export Pipeline. Unpublished Report Made for AIOC. 1996. 27. Eyubov, N. Overview of Publications on Social and Economic Life and Use of Land along the Western Route Export Pipeline. Unpublished Report Made for AIOC. 1996. 28. Zabela, К.А. Emergency Response and Repair of Subsea Pipelines. Nedra Publishers. 1986. 29. Fookes, P.G. and Bettess, R. Field Visit to Azerbaijan in August 2000 to Assesss Geo-Hazards to Principal Pipeline River Crossings of Existing and Future Routes and Ground Surveying of the Azerbaijan Terrain Evaluation Desk Studies. Report to BP dated September 6, 2000 (draft 1). 23pp & Appendices. 2000. 30. Guliyev, I.S. Feyzullayev, A.A. Everything about Mud Volcanoes. GIA. 1997. 31. Hadiyev, Y.J. Calculation of Fluctuations of the Atmospheric Circulation in Estimation of Future Changes of climate in the Trans-Caucasus. Azerbaijan Academy of Sciences. Baku, Azerbaijan. 21pp (in Russian with English and Azeri summary). 1996. 32. Hajiyev, V.D. Melikov, P. Report on Bio-Restoration and Other Botanical, Soil and Erosion Issues Related to Consequences of Construction of the Baku-Tbilisi-Ceyhan Pipeline. Institute of Botany. 2001. 33. Drawing EIA Draft for Air Emissions. Guideline. 1991. 34. Reliability of Engineering Systems. Reference Book/Under Editorship of I. A. Ushakov. Radio and Communications. 1985. 35. HSE. Offshore Hydrocarbon Releases Statistics 1997. Doc No. OTO 97 950. 36. HSE. Risk Criteria for Planning Land-Use in the Vicinity of Major Industrial Hazards. ISBN 0 11 885491 7. 1989. 37. IFC Policy Statement. IFC Policy Statement on Forced Labour and Harmful Child Labour. March 1998. 38. Johnson, K.D. Martin, C.D. and Davis, T.G. “Treatment of Wastewater Effluent from a Natural Gas Compressor Station.” Water Science and Technology. 40 (3), 51-56. 1999. 39. How Should Public Environmental Monitoring Be Organised? 1998. 40. Kashkay, R.M. Hydrology, AIOC Report on the Western Route Export Pipeline in Azerbaijan. 1996. 41. Kashkay, R.M. Hydrology, Report to UTP on North Garadagh Concession Area, Azerbaijan. 1998. 42. Kashkay, R.M. River Hydrology along the Azerigaz Pipeline Route, Azerbaijan. Report Made for BP. 2000. 43. Knight, R.L., Kadlec, R.H. and Ohlendorf, H.M. “The Use of Treatment Wetlands for Petroleum Industry Effluent.” Environmental Science and Technology. 33 (7), 8pp. 1999. 98 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

44. Kownacki, A. “Spring Benthic Macro-Invertebrate Communities of Selected Streams in the High Caucasus (Azerbaijan SSR).” Hydrobiology. 123 (2), 8pp. 1985. 45. Kuznetsov, M.S., Gendugov, V.M., Khalilov, M.S. and Ivanov, A.A. An Equation of Soil Detachment by Flow, Soil and Tillage Research. 46, 97-102. 1998. 46. Kuznetsov, M.S. Prediction and Prevention of Soil Erosion and Drifting. 1989. 47. Kvaerner. Shah Deniz Gas Export Project–Pipeline Quantified Risk Assesssment. Doc No 410088/00/L/SA/RP/004 Rev FB1. 1989. 48. World Bank Standards: An Eco Authority. Law Journal Extra. 1997. 49. Lawler, D.M. Process Dominance in Bank Erosion Systems. Carling, P.A., Petts, G.E. (Editors), Lowland Floodplain Rivers: Geomorphologic Perspectives. John Wiley & Sons Ltd., Chichester. p.117-143. 1992. 50. Lawler, D.M. The Measurement of River Bank Erosion and Lateral Channel Change: A Review, Earth Surface Processes and Landforms. 18 (9), 777-821. 1993. 51. Orlov, D.S., Sadovnikova, L.K., Lozanovskaya, I.N. Ecology and Protection of Biosphere during Chemical Contamination. Мoscow. Vysshaya Shkola Publishers. 337pp. 2002. 52. Lawler D.M. 1998. Hydrology, Report to UTP for North Karadag Concession Area REA, 23pp and 8 Figs. 53. Lukyanenko, V.I., Vasilyev, A.S., Lukyanenko, V.V., Khabarov, M.V. “On Elevating Threat of Depopulation of Unique Caspian Sturgeons and Immediate Actions Necessary for Their Preservation.” Applied Ichthyology Magazine. 15 (4-5), 4pp. 1999. 54. Mamedov, E.A. Treatment of Industrial Effluents. Baku. Elm Publishers. 160pp. 2002. 55. Mustafaev, I. Air Pollution in Oil Industry of Azerbaijan. Proceedings of 3-rd International Conference on Ecosystems and Sustainable Development. Alicante. Spain. June 6-8, 2001. 56. Mustafayev, I. Air Emissions during Oil Transportation. International Conference on Human and Catastrophe. Baku. September 17-18, 2001. 57. Methods of Determination of Environmental Hazards of Industrial Facilities. Guideline. 1988. 58. Mikailov, N.K. Natural and Geographical Features and Ecological Conditions of Invasion of the Kura-Araz Lowland Soils, Melioration Problems and Evaluation of Their Fertility. Baku Ozan Publishers. 375pp. 2000. 59. Museibov, М.А. Landscapes of Azerbaijan SSR. Baku State University Publishers. 118pp. 1981. 60. Novikov, G.A. Field Studies of Terraneous Animals Ecology. Sovetskaya Nauka Publishers. 1949. 61. Paliy, V.P. Methods of Study of Fauna and Animals Phenology. 1989. 62. Natural Environment and Resources of the Absheron Peninsula. Under Editorship of Academician H. A. Aliyev. 178pp. Baku. Elm Publishers. 1979.

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63. Telegin, L.G., Kim, B.I., Zonenko, V.I. Environmental Protection during Construction and Operation of Gas and Oil Pipelines. Мoscow. Nedra Publishers. 192pp. 1988.

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9. PARTICIPANTS OF ECOLOGICAL MONITORING. BRIEF INFORMATION ON THE MEMBERS OF ECOLOGICAL MONITORING WORKING GROUP.

LIST OF THE NGOS PARTICIPATED IN THE IMPLEMENTATION OF THE PROJECT Fikret Jafarov is the Executive Director of the Friends of the Earth NGO in Azerbaijan served as the project coordinator. Mr. Jafarov is an Associate Professor of Biological Sciences. He has immense experience in ecological projects and has served as the coordinator and manager of eight environment-related projects. Mr. Jafarov also has significant experience in the field of environment management. He has eight years of working experience as the head of the Environmental Projects and Organizational Issues Department of the Ministry of Ecology and Natural Resources of the Azerbaijan Republic. He is also an expert on sustainable development. Shamil Huseynov is the head of the Engineering Association NGO served as the project evaluator. Huseynov has a background as a construction engineer, ecologist and political scientist. He has over 20 years of experience in the fields of construction, environmental management and legislation. Huseynov was involved in the implementation of a series of projects as a national expert and consultant on construction, water, irrigation and ecological legislation. He is an expert in the fields of construction and ecology. Huseynov delivers lectures on environmental law at the State Management Academy. Sabuhi Huseynov is the head of the subgroup on atmosphere of the BTC Environmental Monitoring Project. Mr. Huseynov graduated from the Moscow Fine Chemistry Technology Institute. He is an engineer and chemical technologist with 14 years of experience (in polymer processing technology). Mr. Huseynov has two years of experience as the chief of the Civil Defence Headquarters of the Nizami District of Ganja. He has served as the chairman of the NGO Progress for Stability and Development for the last four years. He has participated in the implementation of three projects on advocacy and legal assistance. Huseynov also participated in a training programme on the development of national ecological plans conducted by Caucasus REM. Huseynov received an international certificate at the training. Saleh Huseynov is the head of the subgroup on soil and landscape of the BTC Environmental Monitoring Project. He is an Associate Professor of Agricultural Sciences and the president of the Agroeco-Consulting Centre. He has profound scientific- methodological knowledge and experience in the fields of agriculture and ecology. Mr. Huseynov has held senior posts at the National Academy of Sciences, Ministry of Agriculture and State Land Committee and at the Presidential Office of the Azerbaijan Republic. He has served as a participant and head of eight projects on environment and agriculture.

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Elshad Mammadov is the head of the subgroup on water resources of the BTC Environmental Monitoring Project. He is an Associate Professor of Chemical Sciences, full-fledged member of the International Ecology and Security of Life Activities of the Academy of Sciences and chairman of the Ecological Fund. Mr. Mammadov has been the manager and coordinator of nine projects. He is the head of the Goy-Gol Environmental Monitoring Scientific Research Laboratory of the Azerbaijan Technology University and the vice dean of the University of Sciences and Technology. Tural Abbasov is the head of the subgroup on the Sociological Survey of the BTC Environmental Monitoring Project. He graduated from the faculty of International Law and International Relations of Baku State University (formerly Azerbaijan State University) with a Masters degree. Mr. Abbasov is a lawyer of the Renessans (Renaissance) Consortium and assistant coordinator of EMMYFP Caucasus REM in Ganja. Namig Rzayev is head of the subgroup on biodiversity of the BTC Environmental Monitoring Project. He graduated from the biology faculty at Baku State University. He has worked at the Institute of Zoology of the National Academy of Sciences of the Azerbaijan Republic for 22 years. Since 2003, Mr. Rzayev has served as the executive director of the NGO ЕCОМЕD. Over the last two years, he has been involved in the implementation of four projects as an expert. Experts Aytan Poladova is an expert of the subgroup on water recourses of the BTC Environmental Monitoring project. She is an Associated Professor of Geography. Ms. Poladova is a teacher at the Hydrometeorology Department of Baku State University. She is the president of the ECOSOS NGO and the coordinator of the Establishment of the Public Monitoring Network for the South Caucasus Oil and Gas Pipeline, which is implemented with the support of Caucasus REM. Ms. Poladova is the author of several scientific articles and a World Bank expert on ESIA. Ulkar Ahmadova graduated from the Azerbaijan Medical University and is currently working as a doctor at the Republic Clinical Hospital. Ms. Ahmadova participated in the implementation of several environment-related projects as a health expert. She also participated in various training programmes on health and ecology. Emin Nuriyev graduated from Baku State University. He has vast experience in the study and reproduction of endangered reptiles (vermigrades). Currently, he is the coordinator of the tortoise breeding project. Niyazi Aliyev is an expert on environmental management and chairman of the Initiatives Development Centre NGO. He has written 12 articles on ecological management. Mr. Aliyev was the coordinator of several Caucasus REM/OSI-funded projects in 2001-2003. Among these projects was the Landscape Architecture project funded by OSI-AF. He has also participated in public discussions on the BTC pipeline and Phase 1 and Phase 2 development of the Azeri-Chirag-Guneshli Oil Field operated by BP. 102 Financial support provided by the Open Society Institute–Assistance Foundation Azerbaijan

Fuad Iskenderov is an expert on ecological standards and executive director of the Engineering Association NGO. He is a civil and industrial construction engineer. Mr. Iskenderov has more than 10 years of experience in the field of construction management and has worked at the Baku Urbanization and Architectural Inspectorate. Mr. Iskenderov was also the deputy director of a private construction enterprise. He is an expert on construction norms and standards. Islam Mustafayev is an expert on the atmosphere of the BTC Environmental Monitoring Project. He is the chairman of the Ruzgar (Welfare) NGO. Mr. Mustafayev was the coordinator and manager of 12 projects on environmental and natural resources protection. He has Ph. D in Chemistry and is an expert on monitoring and environmental protection. Nadir Mikayilov is an expert on land reinstatement and landscape for the BTC Environmental Monitoring Project. He is a professor at the Ecological Department of Baku State University. Mr. Mikayilov served as a national consultant in the implementation of projects regarding land issues. Telman Zeynalov is an expert on land reinstatement and landscape for the BTC Environmental Monitoring Project and president of the National Ecological Forecasting Centre. He participated as coordinator and expert in the implementation of several projects. Orkhan Seyidzade is an expert on forestry and an Associate Professor in Agricultural Sciences and an agronomist. He is an assistant professor of AKTA and the implementing manager of two projects. Saadat Jafarova is an expert on flora. She graduated from Baku State University and is currently working at the Institute of Botany of the National Academy of Sciences. Ms. Jafarova has been involved in the United Nations Biodiversity Strategy and Development Programme as an expert. She participated in training programmes on the protection of biodiversity conducted at King’s College in England.. Azer Ramazanov is a consultant on project development and information and senior trainer at the Consulting and Training Centre (CТC)

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10. ATTACHMENTS

1. Overview of Environmental and Social Impact Assesssments (ESIA) 2. Ecological Characteristics of the Landscape in Azerbaijan along the BTC Oil Pipeline 3. Geological and Land Characteristics along the BTC Oil Pipeline 4. Procedure for Calculating Varying Types of Ground Mass 5. Excerpt from Chapter 28 of the Criminal Codex of the Azerbaijan Republic. Ecological Crimes 6. Diagnostic Index of Grey-Brown Lands 7. Chief Ecologically Sensitive Water Sources Crossed by the BTC Oil Pipeline 8. Brief Review of Ecological Conditions of the Atmosphere in Azerbaijan 9. Biodiversity in the Azerbaijan Republic 10. ESIA Project for Azerbaijan–Description of Environmental Aspects, Impacts, Mitigation Measures 11. Sociological Survey Tables 12. Answers of Respondents to Questionnaire 34 13. Procedure for the Calculation of Hazardous Gas Air Emissions

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