Decision No. 395/1998/QĐ-BKHCNMT On the issuance of Environmental Protection Regulations for oil exploration, development, extraction, storage, transportation, processing, and related services.

Pursuant to …;

Regarding the issuance of regulations on environmental protection in exploration, development, exploitation, storage, transportation, processing of oil and gas and related services Issuing regulations on environmental protection in exploration, development, exploitation, storage, transportation, processing of oil and gas and related services

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MINISTER OF THE MINISTRY OF SCIENCE AND TECHNOLOGY AND ENVIRONMENT

Pursuant to Decree No. 22/CP dated May 22, 1993 of the Government on the tasks, powers, and organizational structure of the Ministry of Science and Technology, Environment;

Pursuant to Decree No. 175/CP dated October 18, 1994 of the Government guiding the implementation of the Law on Environmental Protection;

Pursuant to Decree No. 84/CP dated December 17, 1996 of the Government guiding the implementation of the Oil and Gas Law;

Pursuant to Circular No. 4180/KGVX dated August 20, 1997 of the Government Office regarding the issuance of the Regulations on Environmental Protection in the oil and gas industry;

Considering the proposal of the Director of the Environment Department,

 

DECISION:

Article 1: This Decision promulgates the Regulations on Environmental Protection in exploration, development, exploitation, storage, transportation, processing of oil and gas and related services.

Article 2: The Director of the Environment Department, the General Director of Vietnam Oil and Gas Corporation, the Directors of Science, Technology and Environment Departments, and the Heads of oil and gas organizations shall be responsible for implementing this Decision.

Article 3: This Decision takes effect thirty days from the date of signature.

REGULATIONS

ENVIRONMENTAL PROTECTION IN EXPLORATION, DEVELOPMENT, EXPLOITATION, STORAGE, TRANSPORTATION, PROCESSING OF OIL AND GAS AND RELATED SERVICES
(Issued together with Decision No. 395/1998/QĐ-BKHCNMT dated April 10, 1998 of the Minister of Science, Technology and Environment)

Chapter 1:

GENERAL PROVISIONS

Article 1. These regulations are issued to prevent environmental pollution and reduce to the lowest extent possible adverse impacts on the environment caused by activities of exploration, development, exploitation, storage, transportation, processing of oil and gas (liquefied gas, oil refining) and related services directly linked to these activities.

Article 2. In these regulations, in addition to terms defined in the Oil and Gas Law and the Law on Environmental Protection, the following terms are understood as follows:

1. Oil and gas organization means organizations and individuals conducting oil and gas activities including:

- State-owned enterprises,

- Enterprises established under the Company Law,

- Private enterprises established under the Private Enterprise Law,

- Cooperatives,

- Enterprises with foreign investment capital

2. Oil and gas facilities refer to various types of platforms, mobile or fixed structures, vessels and other constructions used on land or at sea to serve oil and gas activities.

3. Production waste refers to gases, liquids, and solids discharged during oil and gas activities.

4. Domestic waste includes liquid, solid wastes and other types of waste generated during the daily life of people at locations or facilities for exploration, exploitation, development of mines, storage, transportation, processing of oil and gas and related services.

Article 3. This Regulation applies to:

All oil and gas organizations conducting exploration, exploitation, development of mines, storage, transportation, processing of oil and gas and related services on land, islands, inland waters, territorial seas, contiguous zones, exclusive economic zones and continental shelf of the Socialist Republic of Vietnam;

Facilities of organizations and individuals of Vietnam serving oil and gas activities based on cooperation with foreign countries in places not under the jurisdiction of the Socialist Republic of Vietnam, except when international treaties to which the Socialist Republic of Vietnam is a party provide otherwise.

Article 4. Oil and gas organizations must have dedicated staff for environmental protection and, if necessary, establish a dedicated department for environmental protection.

Article 5. During the implementation of oil and gas projects, oil and gas organizations must assume the following responsibilities:

1. Not to discharge into the environment gases, liquids, and solids exceeding current Vietnamese standards, especially hazardous wastes.

2. To implement environmental monitoring and analysis activities (environmental monitoring programs) according to the Decision of the Ministry of Science, Technology and Environment approving the Environmental Impact Assessment Report for the project, facility.

3. To prepare and submit to the competent state management agency on environmental protection reports on environmental protection work and environmental incidents in accordance with Article 7 of these regulations. 

4. To pay fees related to environmental protection as prescribed by Vietnamese law.

Article 6. Upon completion of oil and gas projects, oil and gas organizations must dismantle fixed facilities, clean up the site where the project was carried out, and report to the competent state authority.

Article 7. The format for preparing environmental protection reports is as follows:

1. Each year, oil and gas organizations must prepare and submit an environmental protection report, including monitoring and analysis materials (monitoring), environmental surveillance to the competent state management agency on environmental protection at the location where the oil and gas organization conducts its activities within the first fifteen days of the following year. The content of the environmental protection report should reflect the implementation of the approved Environmental Impact Assessment Report.

2. In case of incidents causing significant harm to the environment as stipulated in Articles 37 and 38 of these regulations, after completing pollution control, the oil and gas organization must prepare a report to the Ministry of Science, Technology and Environment on the cause of the incident, the process of handling, and environmental consequences.

3. Upon completion of oil and gas projects, oil and gas organizations must prepare and submit a report on environmental protection during the implementation of the project to the competent state management agency on environmental protection at the location where the oil and gas organization conducts its activities. The content of this report should reflect the implementation of the approved Environmental Impact Assessment Report.

Article 8. Oil and gas organizations must prepare and submit Environmental Impact Assessment Reports and oil spill response plans as follows:

1. Prepare an Environmental Impact Assessment Report and submit it to the competent state management agency on environmental protection in accordance with the provisions of Decree No. 175/CP dated October 18, 1994 of the Government guiding the implementation of the Law on Environmental Protection and related guiding documents.

2. The content and procedures for reviewing preliminary environmental impact assessment reports and detailed environmental impact assessment reports for each type of oil and gas activity must comply with Vietnamese laws on environmental protection.

3. Develop oil spill response plans, which fully anticipate all possible risks that could cause incidents, propose measures to be applied to minimize the potential for environmental pollution to the lowest extent possible, and outline personnel and equipment mobilization schemes to promptly address incidents when they occur.

Chapter 2:

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Article 9. The transportation system, fixed structures, and necessary equipment for conducting surveys, exploration, development, and exploitation must be designed and constructed to ensure the reduction to the lowest extent possible of adverse impacts on the environment, particularly in environmentally sensitive areas.

Article 10. When carrying out explosive activities, petroleum organizations must comply with the regulations stipulated in Decree No. 27/CP dated April 20, 1995 of the Government and Circular No. 11 TT/CNCL dated March 13, 1996 of the Ministry of Industry guiding the implementation of Decree No. 27/CP dated April 20, 1995 of the Government regarding the management, production, supply, and use of industrial explosives.

Article 11. The control of explosive and noise-generating activities is regulated as follows:

1. Seismic blasting operations on land may only be conducted in accordance with the contents of the environmental impact assessment report approved by the competent state management agency for environmental protection.

2. Petroleum organizations must obtain permission from local authorities at least 30 days prior to conducting explosive activities (excluding blasting within wells for reservoir testing and other routine activities such as cutting casing pipes...). After obtaining permission, petroleum organizations must notify relevant organizations and individuals operating in areas affected by the blasting activities and place appropriate warning signs at suitable locations during the blasting operations.

3. Seismic blasting, low-flying aircraft, and sudden noise generation are prohibited in national nature reserves for rare animals, during breeding or reproductive seasons.

4. Petroleum organizations must fully compensate for damages caused by explosive activities to persons, animals, plants, and construction works such as roads and houses, in accordance with the provisions of the law.

Article 12. The use of drilling fluids, harmful or dangerous chemicals must be permitted by the Ministry of Science and Technology and Environment. The basis for granting permission is the certificate of toxicity for experiments conducted under Vietnamese environmental conditions issued by a specialized Vietnamese agency designated by the Ministry of Science and Technology and Environment, or a permit for use in another country compatible with Vietnamese usage conditions.

Article 13. The use of diesel-based drilling fluid is strictly prohibited.

Diesel-based drilling fluid shall not be used. In exceptional cases, upon request from Vietnam Oil and Gas Corporation, the Ministry of Science and Technology and Environment may consider granting permission for its use.

Article 14. The use of radioactive materials in petroleum activities must comply with the provisions of the law on Safety and Radiation Control and follow TCVN 4985-89 - "Regulations for Safe Transport of Radioactive Materials," and TCVN 4397-87 - "Regulations for Ionizing Radiation Safety."

Article 15. The discharge of production waste from offshore petroleum facilities in areas under the jurisdiction of the Socialist Republic of Vietnam must comply with the following regulations:

1. It is prohibited to discharge oily sludge, spent oil, drilling fluids based on oil, solid substances containing oil, and other hazardous liquid and solid wastes into the sea. These wastes must be collected and transported to the mainland for treatment according to regulations.

2. Discharge into the sea of wastewater and drill cuttings with oil content as specified in the annex to this Regulation and harmful chemicals below permissible levels according to Vietnamese Environmental Standards is allowed.

Article 16

The discharge of domestic waste from offshore petroleum facilities in areas under the jurisdiction of the Socialist Republic of Vietnam must comply with the following regulations:

1. It is prohibited to discharge non-biodegradable waste such as tin cans, bottles, plastic bags... into the sea. Such waste must be collected and transported to the mainland for treatment according to regulations.

2. Solid waste such as wood and paper that can be burned and ash, if not toxic and free of oil, may be discharged into the sea.

3. Excess food may be directly discharged into the sea after being ground into particles smaller than 25mm in diameter.

Article 17. The collection and treatment of solid and liquid waste from onshore petroleum facilities must comply with the following regulations:

1. Solid waste must be collected in appropriate containers or equipment and then treated or disposed of in designated landfill sites in accordance with established standards and local government guidelines.

2. Liquid waste causing pollution must be collected in storage tanks for subsequent treatment to meet environmental standards. These tanks must be designed and constructed in compliance with environmental protection laws.

3. Produced water from extraction must be collected and stored in separate areas and treated appropriately before being discharged into the surrounding environment in accordance with TCVN 5945-1995 - Industrial Wastewater - Emission Standards.

Article 18.

1. Direct discharge of hydrocarbon gases into the surrounding environment without permission from the competent state management agency for environmental protection is prohibited.

2. If collection for reuse is not feasible, hydrocarbon gases must be completely combusted in a flare stack. The flare stack must be designed to meet environmental protection standards as prescribed by law.

Chapter 3:

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Article 19. Petroleum organizations must develop fire and explosion prevention plans and submit them for approval by the firefighting authority under the Ministry of Public Security to obtain construction permits.

Article 20.

1. Storage tanks, loading and unloading stations, and oil and gas pipelines must be designed and constructed in accordance with Vietnamese or internationally recognized standards (API, ASME, BS...); regular inspection and monitoring programs must be implemented during the operation of these facilities.

2. Floating storage units must be constructed and equipped in compliance with TCVN 04044-85 - "Regulations to Prevent Marine Pollution Caused by Ships" and other international conventions to which Vietnam is a party.

Article 21. The design and construction of offshore oil and gas pipelines must comply with the following regulations:

1. When selecting pipelines, it must ensure that negative impacts on the environment are reduced to the lowest possible level. It is prohibited to construct oil and gas pipelines through national conservation areas or environmentally sensitive areas without permission from the state management agency for environmental protection.

2. When constructing pipelines, appropriate measures must be applied to prevent and limit marine environmental pollution (water and seabed environments) caused by construction and waste discharge.

3. If explosives and radioactive materials are permitted for use in accordance with the Environmental Impact Assessment Report, they must comply with the provisions of Articles 10, 11, and 14 of this Regulation.

4. Pipelines may be buried under the seabed if they do not cause adverse effects on seabed structure and natural ecological conditions along the coast.

Article 22. The design and construction of land-based oil and gas pipelines must comply with the following regulations:

1. Pipeline corridors and routes must be selected so as not to violate natural conservation areas, scenic spots, historical and cultural sites, and environmentally sensitive areas.

2. Negative impacts on the environment and natural scenery, destruction of architectural and cultural structures, and obstruction of traffic must be reduced to the lowest possible level.

3. If explosives and radioactive materials are permitted for use in accordance with the approved Environmental Impact Assessment Report, they must comply with Articles 10, 11, and 14 of this Regulation.

Article 23.

1. When constructing land-based or near-shore oil and gas pipelines, liquids used for hydraulic testing of oil and gas pipelines must be collected separately and treated before being discharged into the surrounding environment in accordance with the approved Environmental Impact Assessment Report.

2. Chemicals used for hydraulic testing must have approval from the Ministry of Science and Technology and Environment. The basis for granting permission is a certificate of toxicity for experiments conducted under Vietnamese environmental conditions issued by a specialized Vietnamese agency designated by the Ministry of Science and Technology and Environment, or a permit for use in another country that is suitable for use in Vietnam.

Article 24. During operation, the cleaning of storage tanks and oil and gas pipelines and the treatment of waste generated during the cleaning process must be carried out according to the technical plan approved by the State Management Agency for Environmental Protection. 

Chapter 4:

OIL AND GAS PROCESSING

Article 25. Oil and gas organizations must develop emergency response plans for fires and explosions and submit them to the Fire Prevention and Control Agency under the Ministry of Interior for approval to obtain construction permits.

Article 26. When selecting the location of oil and gas processing plants, it must ensure that negative environmental impacts are minimized, and local environmental service facilities are ensured, especially in the event of environmental incidents.

Article 27. The technology and operational procedures, monitoring, and emergency response processes of oil and gas processing plants must be chosen to minimize the discharge of gaseous, liquid, and solid waste into the environment and must comply with legal provisions on technology transfer.

Article 28. Measures for transporting raw materials to and products from oil refineries must be selected to minimize the risk of oil spills due to transportation accidents.

Article 29. Oil refineries must have appropriate measures (such as shielding, embankments, containment...) to prevent surface water and groundwater pollution caused by rain runoff of raw materials and products, oil leaks, and spills from processing equipment, storage, and transport facilities.

Article 30.

1. Gaseous, liquid, and solid waste from oil and gas processing plants must be treated in accordance with Vietnamese environmental standards, or with permission from the Ministry of Science and Technology and Environment in cases where such standards do not exist, before being discharged into the surrounding environment.

2. Liquid and solid waste collection sites of oil and gas processing plants must be designed and treated to ensure they do not cause environmental pollution.

Chapter 5:

SERVICE ACTIVITIES

Article 31. Transportation means of oil and gas organizations operating on land, rivers, and seas must comply with Vietnamese laws, the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78), and other related international conventions that Vietnam has signed or joined. and other related international conventions that Vietnam has signed or joined.

Article 32. Types of vessels participating in offshore oil and gas operations must comply with the following regulations:

1. They must be equipped with pollution prevention devices in accordance with TCVN 04044-85 - "Regulations on Preventing Marine Pollution Caused by Ships," which must be inspected and certified by the inspection authority. For foreign ships, they must also hold international certificates regarding oil and wastewater pollution prevention, confirmed by Vietnamese inspection authorities.

2. They must have guidelines for preventing pollution caused by hazardous substances, including sewage, and must have instructions for collecting waste and transferring oil.

3. They must have a pollution monitor to assist the captain in supervising oil discharges and other activities to prevent non-compliant discharges.

4. They must maintain logs recording oil and substance transfers, which must include all relevant data and test results, stored and submitted to the State Management Agency for Environmental Protection upon request.

Article 33. Onshore service bases must comply with the following regulations:

1. They must not directly discharge oils, harmful chemicals, exhaust gases, and wastewater containing harmful substances exceeding permissible levels set by Vietnamese industrial and domestic wastewater and exhaust gas standards.

2. They must collect and treat production and domestic waste generated during operations in accordance with regulations.

3. Service bases tasked with receiving, storing, and treating industrial oil and gas waste must have disposal sites and treatment technologies in compliance with environmental protection laws and related laws. Strictly forbidden is the acceptance and treatment of waste of foreign origin.

4. The storage, handling, and transportation of radioactive materials must comply with radiation safety and control laws, as well as Vietnamese standards:

TCVN-4586-97 (Safety Regulations for the Storage, Transportation, and Use of Explosives Materials)

TCVN-4397-87 (Safety Regulations for Ionizing Radiation)

TCVN-4985-89 (Regulations on the Safe Transport of Radioactive Materials)

Article 34. Waste disposal sites containing waste from the oil and gas industry must be designed, constructed, and operated to ensure they do not cause environmental pollution. Permits for constructing such sites shall only be issued when the environmental impact assessment report has been approved by the competent state authority.

Article 35. Oil and gas service ports must comply with the requirements set forth in Article 33 of this Regulation, and must have an oil spill response plan and a fire prevention plan that have been approved by the competent state authority.

Chapter 6:

REMEDIATION OF ENVIRONMENTAL POLLUTION, DEGRADATION, AND INCIDENTS

Article 36.

1. During the implementation of oil and gas projects, oil and gas organizations must maintain sufficient manpower, equipment, and connections with relevant authorities, including local governments and foreign organizations, to manage and minimize potential environmental damage caused by incidents.

2. Oil and gas organizations engaged in offshore oil and gas extraction must ensure:

2.1 On each production platform, receiving and distribution stations, there must be equipment ready to respond immediately to oil spills under 15 tons.

2.2 The capability to deploy rescue equipment for oil spills under 500 tons within 24 hours.

Article 37.

1. In the event of significant environmental damage, such as oil spills due to blowouts or from floating storage tanks, toxic gas leaks, or explosions, oil and gas organizations must promptly implement necessary emergency measures and immediately notify the People's Committee of the province where the incident occurred, the Ministry of Science and Technology and Environment, and other relevant agencies according to the approved oil spill response plan.

2. Vietnam Oil and Gas Corporation is responsible for developing a comprehensive emergency response plan for the activities of its subsidiaries, contractors, and joint ventures with its participation to coordinate actions between oil and gas organizations, related agencies, and local People's Committees, as well as with foreign emergency response organizations to ensure rapid and effective responses.

Article 38. When an oil spill occurs at offshore oil and gas facilities exceeding 2 tons, oil and gas organizations must immediately inform the Ministry of Science and Technology and Environment and the People's Committee of the province where the incident occurred. A full report on the oil spill must be prepared and submitted to the Ministry of Science and Technology and Environment and the People's Committee of the province within 15 days after the incident is resolved.

Article 39. The use of dispersants to treat oil spills must follow procedures outlined in the approved oil spill response plan and must adhere to the following requirements:

1. Dispersants may only be used to treat oil spills after it is determined that other recovery methods are unsuitable.

2. Only registered dispersants approved by the Ministry of Science and Technology and Environment may be used. Care must be taken to avoid excessive use of dispersants.

3. Dispersants are prohibited in rivers, river mouths, coastal waters less than 20 meters deep or within 2 kilometers of shore, and other sensitive ecological areas.

4. The use of dispersants requires approval from the Ministry of Science and Technology and Environment. In emergencies where oil spills pose a serious threat to human life, property, resources, oil and gas organizations may use registered dispersants in their approved oil spill response plans.

5. After using dispersants, oil and gas organizations must provide detailed reports to the Ministry of Science and Technology and Environment regarding the incident, the use of dispersants, and the consequences.

Chapter 7:

INSPECTION, REWARD, AND PENALTY FOR VIOLATIONS

Article 40. Environmental protection inspection teams or specialized inspectors have the right to visit oil and gas organizations to:

1. Check various permits, certificates, and documents related to pollution prevention;

2. Review records of environmental management activities, copy necessary documents, and require responsible individuals of oil and gas organizations to certify true copies;

3. Inspect the storage, use, and operational status of pollution control equipment;

4. Collect samples related to environmental protection work;

5. Investigate incidents and interview persons involved in pollution incidents;

6. Address issues on-site or recommend solutions to environmental management authorities according to current laws;

7. Impose penalties as prescribed by law.

Article 41.

1. Oil and gas organizations must facilitate the work of inspection teams or inspectors and provide all necessary information.

2. Oil and gas organizations have the right to appeal to person the authority issuing the inspection decision regarding the inspection team's or inspector's conclusions and handling measures.. If dissatisfied with the resolution of the appeal, oil and gas organizations may appeal to the immediate superior of the decision maker or file a lawsuit with the competent court.

3. In cases where inspections are conducted at oil and gas organizations with foreign investment, appeals will be handled according to the Law on Foreign Investment.

Article 42.

During the implementation of oil and gas projects, if oil and gas organizations cause environmental degradation, pollution, or incidents, in addition to penalties, they must also bear responsibility for compensation according to Vietnamese law.

2. Organizations causing environmental pollution must pay the costs of cleaning up the environment and remedying environmental incidents to any organization or individual who has carried out these tasks.

3. Oil and gas organizations must promptly compensate organizations and individuals for losses caused by environmental degradation, pollution, or incidents they have caused, as well as the costs incurred for cleaning up and remedying environmental incidents.

Article 43. An oil and gas organization shall not be liable for compensation for damages or costs of environmental cleanup when the environmental incident occurs due to:

- Natural disasters,

- War or terrorist actions,

- Actions or omissions of third parties unrelated to the activities of the oil and gas organization.

Article 44. Any organization or individual that strictly complies with the provisions of this Regulation and contributes to preventing pollution and responding to environmental incidents shall be rewarded according to Vietnamese law.

Article 45. Any organization or individual violating this Regulation shall be dealt with according to Vietnamese law depending on the nature, degree of violation, and consequences caused.

Chapter 8:

IMPLEMENTING PROVISIONS

Article 46. The State management agency for environmental protection shall be responsible for guiding, inspecting, and supervising the implementation of this Regulation according to its functions and authorities.

Article 47. Vietnam Oil and Gas Corporation shall be assigned the responsibility of guiding, monitoring, and inspecting the implementation of this Regulation for Contractors as stipulated in the Oil and Gas Contract.

Article 48. During the implementation process, if there are previous regulations that conflict with the content of this Environmental Protection Regulation concerning exploration, development, production, storage, transportation, processing of oil and gas and related services, such regulations shall be implemented according to this Regulation.

ANNEX

TEMPORARY PROVISIONS ON ALLOWABLE OIL CONTENT IN DISCHARGE WATER AND DRILLING FLUIDS
(Applicable to oil and gas facilities operating in Vietnam's territorial waters until relevant Vietnamese standards are issued)