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Proquest Dissertations ENVIRONMENTAL LEGAL IMPLICATIONS OF OIL AND GAS EXPLORATION IN THE NIGER DELTA OF NIGERIA By Orubebe Bibobra Bello Submitted to the Faculty of the Washington College of Law of American University in Partial Fulfillment of the Requirements for the Degree of Doctor of Juridical Sciences (S.J.D) Chair Wallace 1)ouJrd ~-~ Clau~Sf-- Dean Washington College of Law Date I 1 2009 American University Washington College of Law Washington, D.C. 20016 AMERICAN UNlVERSITY Llbr\ARY G\5 ~(} UMI Number: 3415749 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. UMI __.Dissertation Publishing..___ UMI 3415749 Copyright 201 O by ProQuest LLC. All rights reserved. This edition of the work is protected against unauthorized copying under Title 17, United States Code. Pro uesr --- ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 ©COPYRIGHT by Orubebe Bibobra Bello 2005 ALL RIGHTS RESERVED DEDICATION This dissertation is dedicated to my late grandmother madam Omutor Torukoro, my late father Pa Kegu Benard Orubebe, my late elder sister Mrs. Tebokeyei Edith Johnny (nee Orubebe) in eternal appreciation of their caring support for me and for this endeavor. I also dedicate this dissertation to all those who have lost or will lose their freedom and liberty or pay the supreme price of death in order to make the core Niger Delta dream of independent statehood a reality. ENVIRONMENT AL LEGAL IMPLICATIONS OF OIL AND GAS EXPLORATION IN THE NIGER DEL TA OF NIGERIA BY Orubebe Bibobra Bello ABSTRACT Nigeria is an African country endowed with a wealth of oil and gas resources, and they are mainly found in the core Niger Delta (home to the ljaw and Ogoni indigenous, ethnic minorities). Since Great Britain granted Nigeria political independence on October 1, 1960, successive Nigerian governments (military and civilian) have been dominated by the majority ethnic groups (Hausa-Fulani, Yoruba, and Ibo). Significantly, the government adopted a socialist-based model of absolute state ownership over oil and gas resources. The socialist model formed the basis of Nigeria's business collaboration with multinational oil and gas corporations from Europe and the United States (notably Shell, Chevron Texaco, Agip, Exxon Mobil, Total, and Elf). This model is fraught with contradictions and has led to unacceptable consequences, including policies that allow exploitation of natural resources without reference to environmental sustainability. When oil was first struck in 1956 at Oloibori (ljaw area), people thought it would bring prosperity and an improved quality oflife. Sadly, the opposite has occurred. Forty-nine years of hardship, agonizing pain, debilitating anger, extreme poverty, poisoned rivers, lll lV destroyed occupations, devastated environment, and stunted growth of the youth are the negative impacts of oil and gas exploitation in the Niger Delta. In other words, oil and gas exploration and production have visited a full range of evils-socio-political, economic, and cultural-upon the indigenous Niger Delta people. Furthermore, the wealth extracted from the area is used by the state and multinational corporations to enhance their own wealth and quality of life. Revenue has been conspicuously looted and misappropriated by political leaders at the expense of the Niger Delta environment and its people. This confluence of exploitation and injury has led to social upheavals and armed rebellions, all capable of precipitating the disintegration of the country. In this dissertation, research materials have been used to identify fundamental problems inherent in the current approach to oil and gas exploration and development. Primary research findings were used to develop the recommended shift in environmental paradigm that is critical to achieving sustainable development in Nigeria. Central to the recommendations in this dissertation is a rigorous, participatory Environmental Impact Assessment ("EIA") process. ACKNOWLEDGMENT The decision to come to the American University Washington College of Law in pursuit of knowledge could not have been possible without the understanding and encouragement of two distinguished Americans, Simone Gregore and Chief Roger Benedict, and my personal friends Fredrick Ndorokeme Owotorufa, George Ombe, and Hon. H.B. Buku. In the course of writing this Doctor of Laws dissertation many individuals have offered tremendous help and encouragement. First and indeed foremost is Professor Perry Wallace who amidst his busy schedule accepted and, without equivocation, chaired the Doctoral Committee. He offered rare scholarly guidance and support. Words alone cannot convey my appreciation for the efforts of the chair and the other members of my thesis Committee, Professors David Hunter, William Cohen, and Durwood Zaelke. Together they have given generously of their time, inspiring intellectual wisdom over the last five years, from my Masters of Laws (LLM) days (2001) to date. Individually and jointly they challenged me with stimulating intellectual discussions and encouraged me to get it all right. You are the best Doctoral Research Committee for which I could have hoped. I feel deeply indebted to Professors Claudio Grossman, the impeccable Dean Washington College of Law, and Daniel Bradlow, the Director of the International Legal Studies Program ("ILSP"), for their dignified and extraordinary commitment to the exceptionally high quality of legal scholarship that the college and program now IV v symbolizes in the United States of America and the world in general. I thank the ILSP team, Irene A. Moyer, Emily Chin, Amir Tejani and Sharon E. Wolfe, for their tireless assistance and infectious spirit of acceptance. I remain grateful to the International Union for the Conservation of Nature ("IUCN") and the United Nations Environmental Programme ("UNEP") for giving me the opportunity to test and cross-breed ideas cultivated in the course of this dissertation 11 with other scholars from different backgrounds in the 2 ct Academy for Environmental Law held in the University of Nairobi, Kenya and the UNEP Symposium of Environmental Law Professors of African Universities, held in Nakuru September and October, 2004, respectively. They helped me meet the Doctoral Research Seminar Presentation requirement. The diverse background of scholars that attended these international environmental law conferences and the interactive and participatory nature of these conferences turned out to be the much needed testing ground for some of the central ideas that make up this dissertation. I appreciate with immense humility and pride the reception accorded me by the traditional rulers-their Royal Majesties of the ancient !jaw autonomous Clans/Kingdoms-of the core Niger Delta (the study area) for generously allowing me and my research assistants into their palaces and homes on my numerous trips to these ancient traditional administrative units, sometimes without prior or requisite notices and customary libations. I thank Mr. Thomas Torukro and Okokolo Carter for assisting me in developing rare cartographic maps, unreported Nigerian cases, parliamentary Vl proceedings, reports, and news clippings; which I would have had difficulty obtaining on my own. Hon Niki Tobi, JSC (Justice of the Supreme Court) of the Federal Republic of Nigeria, Justice and Professor D. D. Narebor, William T. Ryan, and John Q. Heywood read and commented on the draft of the entire dissertation. I am immensely grateful to you. It is regretted that many deserving names cannot be mentioned here but suffice to say that I owe all of them my heart-felt gratitude and appreciation. It is a truism that "Kpokene bra esangbala te ba oku keregha" (a sole finger cannot kill a louse). Finally, despite the assistance, encouragement, and support herein acknowledged, I accept and take full responsibility for whatever shortcomings or errors that have eluded all efforts at correction in this dissertation. I shall be grateful if my attention is drawn to them. TABLE OF CONTENTS ABSTRACT ......................................................................................... .ii ACKNOWLEDGEMENT ......................................................................... .iv LIST OF TABLES .................................................................................. .ix INTRODUCTION ................................................................................. 11 1. INTRODUCTION TO NIGERIA AND THE NIGER DELTA ........................... 21 Brief Political History of Nigeria ................................................ 21 The Core Niger Delta and the Tribal Clans .................................... 39 Defining the Niger Delta ........................................................ .48 History of Exploitation of the Niger Delta .................................... 58 Implications for the Niger Delta ................................................ 62 2. MODERN HISTORY OF EXPLORATION, STATE OWNERSHIP AND MULTILATERAL CORPORATIONS IN THE NIGER DELTA .................... 67 History of Oil Exploration, Development and State Ownership ............ 67 Multinational Corporations and the Legal Structure of Oil Exploration and Development ............................................... 76 Benefit Sharing and Revenue Allocation in the
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