CHAPTER ONE INTRODUCTION 1.1 Project Overview The lubricant sub-sector of the downstream industry is one with so many potential that is capable of being a major source of revenue earner for the country, and has grown over the years with increase in the number of second hand passenger and commercial vehicles in the country calling for more frequent lubricant changes. Though Nigeria has an installed lubricant capacity of 600, 000 metric tonnes the current demand is 700 million litres which is about 1% of global demand. The lubricants market is driven by various steps being taken by government such as initiatives to increase the ease of doing business to boost manufacturing sector activities and the Nigeria Economic Recovery and Growth Plan (ERGP) to emphasize investment in infrastructure. With the increase of import duty on finished lubricants to 30% and the recent 7.5 percent VAT on finished lubes in the country, the sectors have been opened up for further investment and the proposed project considered in this study is set to explore the given opportunity. Though there are presently 34 lube blending plants in Nigeria, only two of these (5.9%) are located in the south- south region of the country (DPR, 2020). This proposed lubricating oil blending plant project by Eraskon Nigeria Ltd is thus a private effort to support the government of Nigeria on how local production of lubricant can be increased to boost its domestic availability especially in the south-south region of the country. 1.2 Project Proponent Eraskon Nigeria Limited is a lubricant oil manufacturing company incorporated in Nigeria by the Corporate Affairs Commission (CAC) with RC No. 601947. The company is desirous of setting up a 50,000 litres lubricating oil blending plant in Izeinbou Bush, Tunama Community, Gbaran Clan, Yenagoa Local Government Area (LGA) of Bayelsa State. The proposed project area is located about 700 m ESIA OF ERASKON NIGERIA LTD 50,000 LITRES LUBRICATING OIL BLENDING PLANT IN IZEIBOU BUSH, TUNAMA COMMUNITY, GBARAN CLAN, YENAGOA LGA, BAYELSA STATE 1 to the Azikel Modular Refinery, from which the plant will source for raw materials using state-of-the-art technologies to produce high- quality lubricants suitable for a wide range of uses. The lube oils are to be distributed across the country through an extensive network of distributors. In order to implement the proposed project and make it compliant with national environmental standards, Eraskon Nigeria Limited (here-in referred to as ENL), commissioned Geo Environmental Resources Limited (here-in referred to as GERL), an indigenous environmental consultancy firm whose head office is at Suite SB 81, New Banex (VOM) Plaza, Aminu Kano Crescent, Wuse II, FCT-Abuja, to undertake the ESIA, a basic pre-operational necessity of law. 1.3 ESIA Objectives ESIA is a tested and globally accepted environmental management tool for proactive control of anticipated project impacts on the environment. The aim of this ESIA study for the proposed project is to proactively evaluate the potential environmental (including health and socio-economic) impacts of the proposed development. This is to ensure that the planned activities exert minimal impacts on the environment. Its specific objectives are to: Identify and evaluate the potential socio-economic effects of the project on the communities including impacts on cultural properties, social infrastructures and natural resources; Establish the baseline condition of the environment; Assess the potential environmental, social and health impacts of the project on the biophysical, social and health components of the environment; Provide appropriate mitigation measures for negative impacts and make recommendations aimed at sustaining/enhancing the beneficial impacts of the projects on the environment; ESIA OF ERASKON NIGERIA LTD 50,000 LITRES LUBRICATING OIL BLENDING PLANT IN IZEIBOU BUSH, TUNAMA COMMUNITY, GBARAN CLAN, YENAGOA LGA, BAYELSA STATE 2 Determine and document the sources of impact from the project activities and identify the environmental, social and health components which are critical to the impacts; and Develop a cost effective Environmental & Social Management Plan (ESMP) for the project. 1.4 Terms of Reference of the Project In compliance with the EIA Procedural Guidelines of 1995, the ESIA Terms of Reference (ToR) for the proposed project was submitted by Eraskon Nigeria Limited to the Department of Petroleum Resources (DPR) and the Federal Ministry of Environment (FMEnv) for approval. The ToR for the ESIA of the proposed project was developed through extensive stakeholder consultation at the initial stages of project conception, and approved by DPR and the FMEnv. The consultation was organized in order to identify and define the project activities and aspects that may have significant environmental effects as well as scope the environmental baseline data needed as basis for impact assessment. As contained in the Terms of Reference (ToR) the study will address the potential environmental impacts associated with the proposed project. These potential impacts will be assessed through, but not limited to the following: Soil contamination studies; Hydrological investigation; Meteorological/weather investigation of site; Noise studies (both Baseline and Operational) – impacts of noise and air quality; Environmental and Social Impact Assessment (ESIA) – Impacts on ecology, fauna and floral, impacts on heritage sites, impacts on visual quality and aesthetics, impacts on the social environment. ESIA OF ERASKON NIGERIA LTD 50,000 LITRES LUBRICATING OIL BLENDING PLANT IN IZEIBOU BUSH, TUNAMA COMMUNITY, GBARAN CLAN, YENAGOA LGA, BAYELSA STATE 3 In addition, these specialist studies are to be undertaken in two phases: A desktop scoping study, wherein potential issues associated with all alternatives identified are evaluated and the preferred alternative nominated for consideration in the ESIA phase; A detailed assessment of potentially significant impacts associated with the preferred alternative identified in the scoping phase. This shall include practical and achievable mitigation measures recommended in order to minimize potentially significant impacts identified. These recommendations shall be included within the draft Environmental and Social Management Plan (ESMP). Sequel to the above and in consonance with the laws and regulations operational in Nigeria, the Terms of Reference for this ESIA study is as captured below: Establish the baseline for the existing environmental conditions of the project area. The baseline environmental data for the project area shall involve field surveys to determine current status of environmental components including (Air, water, and soil quality as well as noise level and biodiversity. Air Quality - Ambient air quality and pollution trends in terms of SO2, CO2, NO2, NO, NH3, H2S, SPM, O2, CO, etc . Noise level - Noise level determination in (dB). Water Quality - Assessment of physical, chemical and biological analysis of both surface and ground water. Soil Quality - Soil Physical, chemical and biological analysis; Soil erosion and channel erosion sites; Auger and profile samples to be taken to determine morphological, physical and chemical properties; Assessment of geomorphic features. ESIA OF ERASKON NIGERIA LTD 50,000 LITRES LUBRICATING OIL BLENDING PLANT IN IZEIBOU BUSH, TUNAMA COMMUNITY, GBARAN CLAN, YENAGOA LGA, BAYELSA STATE 4 . Biodiversity/Ecological Studies . To determine ecological species including composition, density, general biodiversity etc. Waste Management . Identify current waste management system of the project area; . Assess the likely waste type/classes from the proposed project; . Forecast proposed project waste quantification; and . Compile a comprehensive waste management handling and disposal system. With the aid of concise climatic data, describe the general climatic pattern of the project area particularly in terms of wind speed & direction, temperature, humidity, rainfall etc. Study and present study area data/details on topography, geomorphology, geology, natural hazard, drainage pattern, hydrology, and hydrogeology, land use pattern, cropping pattern etc. Data will be supported by relevant maps where applicable. Present details of environment sensitives such as ecology, water bodies, defence, habitation, industries, major transportation media (road, rail etc.) wetlands, natural hazards, archaeological, religious, tourism and historical monuments/places etc. 2km radius of the surrounding project site. Present details of demography, occupational pattern, general amenities, cropping pattern, practices used for agriculture & irrigation specific to the project area. Carryout a thorough and comprehensive stakeholder’s workshop/public consultation as part of socio-economic assessment. ESIA OF ERASKON NIGERIA LTD 50,000 LITRES LUBRICATING OIL BLENDING PLANT IN IZEIBOU BUSH, TUNAMA COMMUNITY, GBARAN CLAN, YENAGOA LGA, BAYELSA STATE 5 Carryout door to door survey for the assessment of the socio- economic assessment of the project area with a target of not less than 250 households. Focus group discussions shall also be carried out for different groups (men, women, youths, and elderly) within the community. Identify and rank all project associated impacts for the pre- construction, construction, operation, and decommissioning phases of the project. Develop control strategies with a view to mitigate and ameliorate project potential and associated impacts. Recommend measures to increase