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University of Nigeria Research Publications
Aut
hor
ADEGBUYI, Adedapo Henry
PG/M.Sc/2000/0671
Title
An Improved Approach Towards Prediction of a
More Accurate Compensation Due to Environmental Degradation
Facu
lty
Engineering
Dep
artm
ent
Civil Engineering
Dat
e
March, 2003
Sign
atur
e
AN IMPROVED APPROACH TOWARDS
PREDICTION OF A MORE ACCURATE COMPENSATION
DUE TO ENVIRONMENTAL DEGRADATION:
ADEGBUYI ADEDAPO HENRY, B.TECH
(PG/MSC/2000/0671)
A THESIS SUBMITTED TO THE DEPARTMENT OF CIVIL
ENGINEERING (ENVIRONMENTALENGINEERING)
FACULTY OF ENGINEERING, UNIVERSITY OF NIGERIA '
IN PARTIAL FULFILMENT FOR THE REQUIREMENT
OF THE AWARD OF MASTER OF SCIENCE (MSC)
IN WATER RESOURCES
(ENVIRONMENTAL ENGINEERING.)
November, 2002
TABLE OF CONTENT
Title Page: ............................................................................
Certification:. ..............................................................
Dedication:. ...................................................................
Declaration:. ................................................................
Acknowledgement:. ......................................................
Abstract:. ........................................................................
Table of Content:. .......................................................... A
Nomenclature:. ...............................................................
List of Figures: .................................................................
List of Tables:. ..................................................................
Chapter one: INTRODUCTION
1.2 Research Problem:. .....................................................
1.3 Significant of Study:. ..................................................
1.4 Research Objectives:. ..................................................
............................................................. 1.5 Scope of Study:.
1.6 Limitation of Study:. .....................................................
PAGE
I
I I
Ill
IV
v
v I
v11
Vlll
I X
X
CHAPTER TWO: LITERATURE REVIEW
............................................. Effects of Oil Pollution:
Effects on the Environment: .........................................
Effects on the Animals: ..................................................
Convectional Methods of Estimating the Amount to be paid for
............................................................... Compensation.
........................ Factors Affecting the Compensation Amount.
Impact of Inaccurate Estimation of Compensation ...................
....................................................................... Case Studies: 41
Impact of the Oil Industry on the Nigerian
Environment: ..................................................................... 42
Environmental Pollution and Oil Production. ............ 45
O.P.T.S. Rate: .................................................................. 47
Ecological Problem Fund: ............................................... 48
Contemporary Frame Work in Developed
Countries: ........................................................................... 48
CHAPTER THREE: MATERIALS AND METHOD
3.1 Research Methodology. .................................................. 55
3.2 Scientific Compensation Model. ..................................... 56
3.3 Data Collection and Questionaire Designing: ................... 56
3.4 Statistical Tools of Analysis: .......................................... 57
CHAPTER FOUR: RESULT AND DISCUSSIONS
Presentation of Data: ...................................................... 57
Characteristics of Polluted Areas. ................................. 59
Existing Compensation Rates. ............................................... 59
Engineering Approach of the Cost Estimation: ........................... 61
Relationship Between Spill and Land Value: .............................. 61
Relationship Between Spill and Fish Impaired/ Kill: ...................... 61
Relationship Between Spill and Water Quality: ............................ 61
Comparison Between Derived Model and the Existing Method of
Compensation: ..................................................................... 61
Derived equations from the Data. .............................................. 61
Applications of the Derived Model: .......................................... 61
Remediation and Clean Up: .................................................. 66
CHAPTER FIVE: SUMMARY. CONCLUSION AND
RECOMMENDATIONS
5.1 Summary: ............................................................................ 70
5.2 Conclusions: ..................................................................... 71
5.3 Recommendations. ............................................................. 71
References: ................................................................................. 73
Appendices: ................................................................................. 90
ck - -
Lme =
Nomenclature
Compensation
Basic Parameter Used for Predicting the Total Compensation in
Canada.
Number of Occurrence
Length
Breadth
Rate
Crops
Trees
Structures
User% Right VariablesIFactors
User's Pollution Taxes of the Total Compensation Paid To the State
Government.
Remediation
Impacted Area for Both Soil and Water Body.
Analysis & Assessment of Soil
Analysis & Assessment of Water Body (Condition for
Water Quality are BOD, DO, Microbes, PH e.t.c)
Chemical Used for Remediation Treatment
Labour (Manpower & Equipment) for Remediation Exercise
on.
Net =
Period of Remediation Before Final Closed Out
Optimalrrotal Compensation
Claimant Compensation
Ecological Fund Paid to the Federal Government
Quantification of all Environmental Impact
Parameters Which Includes TimeIPeriod of Spill, Fish Killed and so
Net for Catching Fish in the River. Value of Net is
Equivalent to 2 Fishes Catch in Compensation Prediction
Oil Producers Trade Sector Rates.
LlST OF TABLE
Table 4.1 : The Net Volume Of Spill (BBLS), Impairedlfish Killing Nets, Land
Value And Water Quality (DO) Of Various Spill Sites.
Table 4.2: The Summary Of Payment Of Compensation By SPDC To Claimants
Table 4.3: The Oil SpillIRemediation Table For SPDC
LlST OF FIGURES
Fig4.1: The Graph Of The Impacted Land Value & The Volume Of Spill
(BBLS)
Fig 4.2: The Graph Of Impactedlfish Kill In Nets & The Net Volume Of Crude
Oil Spill (BBLS)
Fig 4.3: The Graph Of The Water Quality (Dissolved Oxygen) & The
Hydrocarbon Concentration In The Crude Oil Spill (BBLS)
ACKNOWLEDGEMENT
All praises, thanks and adoration to my Daddy, the God almighty, creator of all, for
his mercies and numerous favour upon me, for sparing my life till today and for
crowning me with success in my academic adventure. To him is all the glory and
honour. My profound gratitude goes to the Head of Department Dr. F. 0. OKAFOR
and my supervisor, Engr. (Dr) J. C Agunwamba for his fatherly love and everyday
advice throughout the period of my academic pursuit. You are a mentor indeed. I
appreciate you sir. And also to all other lecturers in the department.
Thanks and love to my parents and sister, Mrs. Lara Oseghe for their
encouragement and contributions throughout the course of the programme .The
same goes to Mr Rajima, Mr and Mrs Amos Ologunleko Engr Anthony Bisiriyu, Mr
Eddy Okafor ,and Mr Lateef Olaniyi and you my love and friend in the time of
trouble and hardship . A friend that was there , when 1 needed somebody dearly
and close to my heart, Chin you are great. May God advance you all in knowledge
*and faith Amen. Sincere gratitude to Mr. and Mrs. J. €3. Okerinde, Mr. Remy Ade
Ojo, Engr. Chris, Chinma, Dr. Philip, Mr. Bolton and all the staff of PSE-REM of
SPDC Port Harcourt. Dean, Gbo, Olusola, Rev. Fr. (Dr.) J. Ogunduyilemi and my
classmates. They have all contributed in one way or the other to the success of my
Master Degree programme. May the Lord Almighty be with you all (Amen)
DECLARATON
I hereby declare that this project is my original work and has not been previously
presented whole or in part for the award of a degree and not currently for the
award of any other degree.
ADEGBUYI H.A
(PG/MSC/2000/0671)
DEDICATION
This research study is dedicated to the Almighty God and to His Majesty Jesus
Christ, the King of kings and Lord of lords. And to my parents, Chief and (MRS.)
Clement Adegbuyi, Mr. and Mrs. Ayodele Adegbuyi, Mr. and Mrs. Innocent
Oseghe, Kemmy and Dammy Adegbuyi and to those God has used to bless his
good works in the entire family and me.
CERTIFICATION
UNIVERSITY OF NIGERIA
SCHOOL OF GRADUATE STUDIES
AN IMPROVED APPROACH TOWARDS PREDICTION OF OPTIMAL
COMPENSATION DUE TO ENVIRONMENTAL DEGRADATION;
A CASE STUDY OF SHELL PETROLEUM DEV. COMPANY PORT-HARCOURT,
RIVERS STATE.
BY
ADEGBUYl ADEDAPO HENRY, B.TECH
(PG/MSC/2000/0671)
Declaration:
The Board of Examiner declares as follows:
That this is the original work of the candidate. That this thesis is accepted in partial
fulfillment of the requirement for the award of the degree of master of science
(Msc) in engineering.
.Designation Name Signature Date
ABSTRACT
On the global scale, environmental pollution caused by oil industry operations has
become a threat to flora and fauna and may ultimately threaten the quality of
human life. The environmental impact of these activities and the amount to be paid
as compensation has become a politically sensitive issue in Nigeria. Despite
careful precautions taken during exploration and refining of oil, pollution of the
environment still occurs. Hence, compensation for oil pollution is always demanded
from any oil company responsible for a spill. This project report describes the use
of engineering approach for predicting the optimal compensation due to
environmental degradation. A comprehensive model incorporating most factors
affecting compensation was formulated from the compensation and settlement
system of Shell Petroleum Development Company Limited, Port Harcourt, which
utilizes Oil Producers Trade Sector (0.P.T.S) rate. The result from this model
reveals that obtaining an optimal compensation requires incorporating both the
disturbance of surface and subsurface users' right. Adoption and implementation of
such an improve compensation approach.
CHAPTER ONE
1 .I INTRODUCTION
Our generation has witnessed unprecedented changes in the balance of nature.
There is no doubt that, many have benefited from the resulting economic growth
and the increasing pollution resulting from intensive industrialization and the
breakdown of ecological balance caused by widespread destruction of flora and
fauna, and by these resource depletion due to consumption, way beyond the
natural needs of the communities. Which is the prevailing pattern in developed
countries.
he developing countries have followed suit choosing the path of continued
industrial development for the sake of labour absorption, economic emancipation,
self-reliance and national pride even at the expense of a polluted environment
should be tolerated as long as it brings about industrialization, raises income and
provides employment.
Further more, the recovery of these different types of natural resources for the
-benefit of man is an age-long practice and the rate and technology of certain
economically valued resources such as tin, columbite, gold, marble, petroleum,
e.t.c. Is ever increasing at an alarming rate. With the tendency towards
industrialization, many industries have sprung up in the last three decades in
several parts of Nigeria. Key industries include battery manufacturing, iron and
steel, plastics, chemical, fertilizer, textile, food and beverages, breweries,
refineries, pharmaceutical, petrochemical, petroleum (upstream and downstream),
sawmills, tannery automobiles and paint industries (Aguiyi Ironsi, 1988).
The three main phases of production, refining, and marketing of any of these
mineral resources may lead to the operational and accidental discharge of
effluents, such as solids, liquids and gaseous pollutants which may adversely
affect the human and ecological environment. Some of these pollutants include
highly poisonous wastes like hydrogen, sulphide, ammonium salts, phenols,
copper and acids. Others are heavy metals (such as lead, arsenic, zinc, mercury
cadmium, etc.), cyanides, phosphates, textile dyes (Aguiyi Ironsi, & others, 1988).
The presence of other parameters such as chemical oxygen demand (COD),
biochemical oxygen demand (BOD), dissolved oxygen (DO), carbonates,
sulphates, nitrates and nitrites is obvious. Some of these industries also produce
solid waste and emit dangerous gases into the atmosphere. During rainfall, some
of these gases dissolve in the rainwater, and are washed down and finally drain
through gutters (or as surface runoffs) into rivers, lakes, lagoons, oceans etc where
they cause the destruction to aquatic and marine life, and to the entire
environment. Which makes the environment liable for compensation and total
clean up.
Hence, in pursuit of socio-economic activities, petroleum remains the largest
source of energy utilized by man for multifarious purposes and the predominance
is likely to continue up to the twenty-first century and beyond.
In Nigeria, petroleum is the pivotal of the economy and contributes over 90% of the
Nigerian foreign exchange earnings. Until commercial oil production began in the
late 19501s, Nigeria's economy was based on agriculture. Cocoa, rubber, palm oil,
groundnuts, cotton, yams, cassava, rice, sugarcane and tobacco were Nigeria's
major crops. The livestock industry is undoubtedly a very important part of the
Nigerian economy, providing nutrition to millions of people and providing jobs for,
perhaps hundreds of thousands.
1.2 SIGNIFICANCE OF THE STUDY
The research study will hasten the determination of optimal compensation and also
development of a software package. The data collected in the field due to oil
pollution can be inputted for a more realistic determination of optimal
compensation instead of the conventional OPTS method, which is subjective, often
unacceptable to communities and results in much social unrest. In all it will be of
mutual benefit to the oil companies paying the compensation and the community
receiving it.
1.3 RESEARCH OBJECTIVES
The objectives of this research project are to formulate and apply an optimal
compensation due to environmental degradation caused by oil pollution. In
addition, this approach will be compared with the existing method.
The objectives are to formulate the following:
Relationship between the quantity of toxic hydrocarbon in oil spill and the
amount of fish and living organisms destroyed.
Relationship between the quantity of oil spill and depletion of nutrient in the
soil.
Relationship between the quantity of oil spill and the amount of bio-
accumulated in aquatic organisms.
Relationship between the quantity of oil spill and reduction in
Water quality.
5. Relationship between the quantity of oil spill and land value as a Property
for building.
6. Over all derived equation.
1.4 SCOPE OF STUDY
The research study will cover basically, the exploration operations, blockades,
flooding, spillages, post construction damages, drilling and gas flaring due to oil
production activities. Data will be collected from the Environmental, Exploration,
Lands and community relations departments, before administering questionnaires
to the selected host communities. Time frame for the secondary data will be from
1970 till date.
1.5 LIMITATION OF STUDY
The study was limited to the activities/impacts caused by drilling blockages,
flooding, post construction damages, gas flaring during Exploitation, Exploration on
4he water quality, aquatic lives, soil nutrient, and (building property) and agricultural
products already existing in the area.
It was also strictly based on available data collected through interviews,
consultation and literature. Availability of data limited the analysis only to
compensation paid due to oil spill by Shell Company to affected communities. In
all, the research study considered occurrences of environmental pollution from
1970 till date.
CHAPTER TWO
LITERATURE REVIEW
2.1 Effects Of Oil Pollution On The Environment
There is a natural agricultural linkage between man, livestock, crop, soil and
water. Usually, man is the end consumer and therefore anything that affects the
other components affects man, economically, socially, physiologically,
psychologically or otherwise and vice versa. Therefore the need to understand the
effect of pollution on each of these components will better explain how much
damage can be done to livestock with regard to its interaction to soil, water, and
crops. The cycle of agricultural production normally illustrates the principal
agricultural linkages between man, livestock, crop, soil and water.
2.1 .la. Effects on marine environment
Produced water resulting from petroleum production contains toxic pollutants such
as oil and grease, cadmium, cyanide, mercury, suspended solids, arsenic,
chromium, copper, lead, nickel, silver, zinc, phenolic compounds and barium. The
discharge of such produced water into the marine environment constitutes a very
serious threat to marine life. The danger posed by oil spill arises from the fact that
the oil reduces;
(i) reaeration of the aquatic medium, (ii) photosynthesis (iii) and damages
planktonic organisms, (iv) destroys marshlands including the mangrove ecosystem
on which our shrimp resources depend, and (v) high molecular weight multiring
components of petroleum such as benzopyrene and benzanthracenes are known
to induce cancer in experimental animals, (vi) small but continuos spills, though not
publicly recognised, do greater damage to less visible resources. It is thus evident
that the presence of petroleum tar or lumps on our beaches not only poses a threat
to public health but also posses a threat to the productive potential of our coastal
and marine fisheries resources. The other significant cause for concern about high
molecular weight hydrocarbons in petroleum is that they are lipophilic and like such
persistent chemical biocides as DDT and Dieldrin (all potent and residual
organochlorine insecticides) are transferred through trophic levels in the marine
food web (Blumer, Mullin and Guilard, 1970).
Large amounts of oil in the marsh environment can be very devastating, as
happened at the Amoco Cadiz spill site in March 1978, off Brittany, France where
large quantities of marine life were destroyed. The long-term effects of this spillage
were highlighted in a publication by the Royal Society of London (1984)
In it, Conan reported that three years after the tanker spilled about 223,000 metric
tons of crude oil and polluted about 360 kilometres of salt marshes, rocky and
sandy shore, and the estuaries, the impacted marine communities were showing
delayed effects. According to the report, some estuarial fishes have experienced
reduced growth rates and reproductive rates, and have suffered from an increased
incidence of fin rot disease. It was said that some shellfish populations might
require 5 to 10 years to recover from the spill impact, due to a decrease in the
number of reproductive-age shellfish stocks and an increase in the mortality of
larvae settling on the oiled sediments.
In August, 1985 unknown polluters discharged spent lubricating oil into the Lagos
lagoon. The toxic effect was immediate and not only was the stink from the slick
choking and repelling but there were moderate mortalities among marine and
brackish water organisms. These included mullets, (Mugil sp.) Tilapia and crabs
(callinectes sp.).
Heavy metals have been observed in the Nigerian coastal waters. Kakulu and
Osibanjo (1 988 and 1992) observed the presence of heavy metals such as Zn, Pb,
Cr, Ni, and V in water, sediments and fishes around Port Harcourt. They attributed
this to pollution arising from effluents discharged from industries located within Port
Harcourt vicinity. Okoye (1991) also reported the presence of these heavy metals
from the Lagos lagoon waters and observed that their sources could be land-based
urbanisation and industrial wastes. Furthermore, Ovum (1991) in his study on the
"Bioaccumulation of heavy metals in shrimps (Panaeus notialis) from the Brass
river system of the Niger Delta noted that the most abundant metals were Fe and
Zn while those of Hg and Cd were of much lower concentrations. Kakulu & other
(1 987) and Biney (1 992) observed the presence of heavy metals in both sediments
as well as fish in the Nigerian coastal waters but noted that the levels observed
were generally lower than the World Health Organisation (WHO) recommended
linlits in food.
However Ovuru(1991) observed that the levels of Pb and Hg were slightly higher
than WHO limits for food. He attributed the reason for the detectable levels of Hg
to the medical facilities around the study area coupled with the Brass general
hospital. Again he observed that metal accumulation was size dependent in P.
notialis with smaller sizes having higher concentrations than the larger sizes and
Pb and Hg levels in P. notialis were found to be higher than WHO limits in food
while Zn, Cd and Fe were within limits. He attributed this to the presence of crude
oil prospecting companies with their heavy implements which discharge a lot of
wastes into several marine environments such as a thick film of diesel oil on the
water surface around the operational areas of oil companies. It is therefore likely
that the organism is exposed to a higher level of bioavailable trace metals, which
may be natural or man, induced (Odukoya and Ajayi, 1989). They also reported
that metal accumulations are associated with the biology of species, nature of food
and the efficiency of the osmoregulatory system present (Dall & others, 1990).
Their diet changes significantly with age accompanied by a change in environment
(Dall & others, 1990) as their early life cycle is spent in the lagoon or estuarine
environment. Bacteriological and phytoplankton studies (Okonya, 1988) showed
that the water (pond and lagoon water), sediment and oyster, crassostrea gasar
were contaminated with faecal bacteria, some of which are pathogenic. Preliminary
results of phytoplankton analysis showed the presence of blue-green alga,
Lyngbya sp. and the green flagellate phacus. These two organisms are associated
with organically polluted waters.
Marine organisms such as fish, crayfish etc. have been used as a source of protein
in livestock feeds and thus could lead to toxicological effects in the animal.Water is
another means of transferring such pollutants to the animals.
2:l .I b. Effects On The Soil
Oil spillage on land could lead to retardation of vegetation growth for a period of
time and in extreme cases, to destruction of vegetation. It could also create
potential fire hazards, as in the Oyakama oil pipeline spillage, and render the soil
unfit for cultivation.
Microorganisms in the soil are also affected by oil pollution. The toxic nature of
arsenic (As), Barium (Ba), cadmium (Cd), chromium (Cr), lead (Pb), mercury (Hg),
.nickel (Ni), selenium (Se), silver (Ag), thalium (TI), and vanadium (v) can adversely
affect microbial populations when the soil is contaminated (JRB and Associates,
Inc., 1984). These inorganic elements cannot be destroyed; however, they can be
recovered and recycled (Scholze, Wu, Smith, Bandy and Basilico, 1986). Ag and
Hg are the most toxic to microorganisms, followed by Cd, Zn, Cr, Pb, and Ni at
higher concentrations (Josephson, 1983).
Some chemicals will be more toxic and biocidal to the soil microflora than others,
and may cause major changes in microbial populations that could persist for weeks
indefinitely.
Some microorganisms show a tolerance for heavy metals (Sims and Bass, 1984;
Monroe, 1985). They may require low levels of heavy metals for their microbial
enzyme systems (Parr, Sikora, and Burge, 1983) and may use redox-sensitive
metals and metalloids (e.g., Fe, Mn, Se) as source of energy and respiration
(Monroe, 1985). They may be able to oxidise, reduce, methylate, demethylate, or
otherwise transform these elements so their solubility, sorption, or volatility in the
soil is greatly affected (JRB and Associates, Inc., 1984).
Microorganisms that play an important role in oil degradation have often been able
to utilise some heavy metals (e.g. Fe and Mn) even at high concentrations, as
energy sources or electron acceptors in their respiratory processes (Hornick,
Fisher, and Paolini, 1983). These reactions may involve precipitation, adsorption,
or volatilisation of the metals, thereby, making the environment more favourable for
other microbial species (Ehrich, 1978). Microbial numbers and activity are initially
depressed by even light hydrocarbon contamination (Odu, 1972).
However, this is followed by a stimulation of activity. Current evidence suggests
that in terrestial and aquatic environments, microorganisms are the chief agents of
biodegradation of environmentally, important molecules (Alexander, 1980). In
1942, Zobell (Texas, Research Institute, Inc., 1982) reported that nearly 100
species of bacteria, yeasts, and moulds, representing 30 microbial genera, had
been discovered to have hydrocarbon-oxidising properties. Since then many other
microorganisms have been reported to have this ability and to be widely distributed
to soils (Texas Research Institute Inc., 1982 and Blakebrough, 1978;).
Although many microorganisms appear limited to degradation of a specific group
of chemicals, others have demonstrated a wide diversification of substrates that
they are capable of metabolising. The number of hydrocarbon- utilizing organisms
in a soil reflects the soil's past exposure to hydrocarbons (Atlas, 1981). These
organisms are most abundant in places that have been chronically exposed to
hydrocarbon pollution (Texas Research Institute, Inc., 1982). Few or none are
found in unpolluted groundwater or petroleum directly from wells. Substantial
adapted populations exist in contaminated zones, with the bacterial biomass
increasing as the organic contaminants are metabolized (Environmental Protection
Agency, 1985).
Fungi also play an important role in hydrocarbon-oxidising activities of the soil
(Jones and Edington, 1968). They seem to be at least as versatile as bacteria in
metabolising aromatics (Fewson, 1981). Their extracellular enzymes may help to
provide substrates for bacteria, as well as for themselves, by hydrolysing polymers.
They are also important sources of secondary metabolites. Bacteria and yeasts
show decreasing ability to degrade alkanes with increasing chain length
(Walker,Austin, and Colwell, 1975). Filamentous fungi do not exhibit preferential
degradation for particular chain lengths and appear to be better able to degrade or
transform hydrocarbons of complex structure or long chain length. Because they
have non-specific enzyme systems for aromatic structures, fungi (yeasts and
filamentous) are believed to be capable of biodegrading PCBs better than bacteria
can (Gibson, 1978). However, fungal metabolism often results in incomplete
degradation that necessitates bacterial association for complete mineralization.
Whereas bacteria oxidise aromatic hydrocarbons to cis-dihydrodiols, fungi convert
them to trans-diols, with arene oxides (epoxides) as intermediates (Dagley, 1981).
This suggests that fungi metabolise aromatic hydrocarbons in a manner similar to
mammalian systems, i.e., via a monooxygenase-catalyzed reaction (Cerniglia,
Herbert, Szanizlo, and Gibson, 1978). It is probable that a cytochrome P-450
dependent reaction may be responsible for the initial oxygenation of naphthalene
by these organisms.The products of fungal metabolism is often recognised
carcinogens, a point that supports combining the fungi with bacteria for complete
degradation. Fungi appear to be predominantly involved in metabolising those
xenobiotics of lower water solubility and greater adsorbity (Kaufman, 1983). The
mycelial-type growth characteristic of fungi perhaps enables them to encapsulate
and penetrate the soil particles to which xenobiotics may be adsorbed. Soil fungi
are generally believed to play an important role in the formation, metabolism,and
interactions of soil organic matter complexes than bacteria.
The role of soil microfauna, such as insects, protozoa, earthworms, and slugs, in
the decomposition of organic materials is significant, but predominantly indirect
(Parr, Sikora and Burge, 1983). It is minor compared with microorganisms, but it is
still essential. Of the total respiration associated with soils amended with organic
material, 10 to 20 % could be from microfauna. Because only a few of these
organisms have the ability to produce their own enzymes for the degradation of
substrate, their main degradation feature is mechanical.
The gut of most soil animals contains microorganisms, which produces the
necessary enzymes for the degradation of a substrate to the point where the
animals can absorb the - nutrients. The remainder of the substrate passes into the
soil where microorganisms complete the degradation.
Earthworms play a prominent role in the degradation of organic materials in the
soil. With their movement, the soil is aerated and nutrients are carried to deeper
soil profiles where these stimulate microbial growth and decomposition. Among the
arthropods, beetles and termites are most correlated with extensive degradation of
organic material. Both animals often have rich microflora in their guts, and these
microorganisms produce enzymes that degrade cellulosic substrates. Microbial
predators also play a role in the degradation process (Texas Research Institute,
Inc., 1982). These organisms graze on bacteria and fungi or feed on detrital matter
and associated micro flora (JRB and Associates, Inc., 1984; Sinclair and Ghoirse,
1985). Protozoa, nematodes, insects, and other worms affect the decomposition
process by controlling the bacterial or fungal population size through grazing
(Bryant & others, 1982) by harbouring in their intestinal tract organisms that might
decompose a compound of interest, by communiting plant materials, or by mixing
the soiland contributing to its aeration and homogeneity (JRB and Associates, Inc.,
1984). A cyst-forrming amoeba was present at I I I l l g dry weight and constituted
15% of the total biovolume of sediments in a groundwater interface zone (Sinclair
and Ghiorse, 1985). Many species of hydrocarbon utilizers have been found to be
ingested by a large number of ciliate and other cytophagic protozoans (Texas
Research Institute, Inc., 1982).
These higher organisms may reduce the microbial population from 107 to 102
bacterialml (Zobell, 1973). Protozoan grazing has been shown to be responsible
for most of the acclimation period for the mineralization of organic compounds in
some sewage (Wiggins and Alexander, 1986).
In the soil, organic chemicals are subject to alteration by biochemical reactions that
are catalysed by enzymes from a wide range of organisms (Kaufman, 1983). In
general, metabolites arising from these microbial reactions are usually non-toxic
polar molecules that exhibit little ability to accumulate in food chains. However, the
breakdown products of many chemicals can be toxic; sometimes they are even
more toxic than the parent compound.
In addition to carbon dioxide and water, the products resulting from complete
mineralization of hydrocarbons, there are various hydroperoxides, alcohols,
phenols, carbonyls, aldehydes, ketones, and esters that result from incomplete
oxidation (Zobell, 1973). The biodegradation of aromatic hydrocarbons yields
phenolics and benzoic acid intermediaries (Bartha and Atlas, 1977). Complete
oxidation is more likely when a diverse mixture of microbes is available.
oxidation products accumulations are much greater for a pure culture than a mixed
culture. The intermediates, some of which may accumulate to inhibitory levels
(Bartha and Atlas, 1977). It was found that C5 to C9 alkanes were not toxic to a
population of bacteria, but that the alcohols of these hydrocarbons were inhibitory
(Roberts, 1992). As oxygen in the soil is depleted, microbial reactions become
anaerobic with the production of malodorous compounds, such as amines,
mercaptans, and hydrogen sulphide (H2S), which can be phytotoxic. However,
under aerobic conditions, the end product will be inorganic carbon, nitrogen,
phosphorus and sulphur compounds. Due to their ability to use carbon as their
source of energy, pathogenic microorganisms might become established in the soil
and thus affect plants and also livestock.
2.1 .lc. Effect On Vegetation
In ecology, vegetation is treated as a community of plants, growing and
reproducing, providing food and shelter for animals and man, and stabilising the
soil by intercepting rain and by recycling nutrients (Monteith, 1973).
Vegetation acts as an important sink for air pollutants. Gases penetrate vegetation
rapidly (Bennett and Hill, 1973) and are absorbed in relation to their solubility in
water. For example, Bennett and Hill (1971) showed that an alfalfa canopy
removed gases in the order of hydrogen fluoride> sulphur dioxide> chlorine>
nitrogen dioxide> ozone>peroxyacyl nitrates> nitric oxidexarbon monoxide. In
Bennett and Hill's (1973) experiments, a hydrogen fluoride concentration of 5pphm
(=40.l(gm-3) above a 40cm high alfalfa canopy was reduced to about Ipphm
(8.03(gm-3) at above soil level. The efficiency of vegetation in absorbing pollutants
such that it can produce pockets of clean air (Gilbert, 1968) where sensitive
species can persist.
In addition, it has been suggested (Bernatsky, 1969) that green belts might help to
reduce air pollution. Fluorides absorbed by leaves can be phytotoxic (Jacobson,
Weinstein, McCune and Hitchcock, 1996) and plants are more sensitive to
fluorides than to other air pollutants (Jacobson,Weinstein, McCune and Hitchcock,
1966). The fluoride concentrate in the margins and tips of leaves and produces
chlorosis, distortion, buckling, savoying or necrosis (NAS, 1971). The
concentration of fluoride in the tissues needed to cause injury depends on the rate
of accumulation of the element, the species, variety, stage of growth and the
environmental conditions (Davison and Blakemore, 1976). Pasture fluoride
concentration sometimes decreases (Allcroft et al., 1965; Grunder, 1972) during
early summer and this is usually thought to be due to dilution of the accumulated
fluoride by new growth (Davison and Blakemore, 1976).
As a result it has been suggested (Allcroft et al., 1965) that improving grass
growth and increasing turnover can reduce pasture concentrations. Plants with
high fluoride content can cause dental and osseous lesions, and lameness in
grazing animals (NAS, 1971). The order of sensitivity is dairy cows>beef cows>
sheep> swine> chickens> turkey (NAS, 1971). Suttie (1 969) proposed that in order
to protect livestock, the fluoride content of forage, sampled on a monthly basis,
should not exceed 40(g g-1 dry weight averaged over the year or be in excess of
60(g g-I for more than two consecutive months, or in excess of 80(g g-1 for more
than one month.
Exchange of gases between plants and the atmosphere are essential features of
physiological processes such as photosynthesis, respiration and transpiration; the
uptake of gaseous pollutants by plants is another example of gaseous exchange
(Unsworth & others, 1976). Bull and Mansfield (1 974) and Watson (1 974) showed
that rates of photosynthesis decreased when plants were exposed to sulphur
dioxide.
Evolution by plants of tolerance to pollutants is now well documented. Particularly
well-known examples are the natural evolution in several grass species of strains
that are resistant to heavy metals in the substratum; and the success of the
American tobacco growing industry in breeding ozone-tolerant strains of cigar-
wrapper varieties to alleviate the serious pollution damage experienced in the
eastern USA about 15 years ago (Bell and Mudd, 1971). Indigenous species of
grasses, including Lilium perenne, appeared resistant to prevailing levels of air
pollution in Helmshore vicinity in an experiment by Bell and Mudd (1971). While
improved varieties of L. perenne (e.g. S23 and S24 varieties) proved particularly
susceptible and after introduction into the Helmshore area became eliminated due
to damage in the winter months when the resistance was low and pollution levels
were high.
Flaring of oil-associated gas generates toxic unburnt hydrocarbons, copious
volumes of acidic oxides of sulphur that induce leaf blotching and death. These
gases act as defoliants and increase the acidity of rain (Okonya & others al.,
1988). Extensive and long-term production of oxides of sulphur in any vegetation
belt causes extreme damage to plants. This effect is very evident in all oil
producing belts in Nigeria where gas flaring occurs. Moreover, the flare from flaring
upsets the natural photoperiod of impacted plants causing wastage of plant energy
reserves and consequently drops in crop yield. The decrease in crop yield is a
common complaint among villagers in locations where flaring of oil-associated gas
is carried out (Okonya & others, 1988).
Due to the ability of certain microorganisms to utilise hydrocarbons in oil as their
source of carbon, there is usually an increase in plant pathogens thereby
increasing the incidence of disease. Most plants in such areas usually become
infected and produce low yields at harvest. Umechuruba and Okafor (1996)
observed that the growth of Aspergillus strictum, A. moniliforme and Penicillium
oxalicum were enhanced on kernels pre-soaked in oil when compared with their
control which were not pre-soaked in oil. This agrees with reports in literature
(Cerniglia and Perry, 1973). A. flavus and A. terreus also seem to be capable of
tolerating crude oil even after soaking for a very long period of time which means
that crude oil has no effect on longevity of organisms because they are petroleum
hydrocarbon degrading fungi (Umechuruba and Okafor, 1996).
These organisms are seed-borne fungi. A. strictum and F. moniliforme are
important seed borne fungi of maize (Agrawal and Sinclair, 1989; Richardson,
1991) which are capable of surviving in crude oil and still able to retain their
pathogenicity (Okafor, 1991). On the other hand, some biocontrol agents of plant
pathogenic fungi are not able to survive in oil-contaminated fields such as
Chaetonium globosom (Umechuruba and Okafor, 1996), which has been used to
control Fusarium roseum f. sp., Cerealis "Graminearum", and Pythium SP. On
corn both in the greenhouse and in the field (Komendahl and Windels, 1981).
Therefore, in a field situation where C.globosum and other beneficial
microorganisms are present, oil spillage in that area will eliminate these useful
microorganisms while it enhances the growth and establishment of harmful
organisms (Umechurumba and Okafor, 1996). On the other hand, if oil spillage
occurs in disease free land, and seeds infected with fungi are planted, the oil will
enhance their survival and also predispose the seeds and seedlings to microbial
acack and destruction.
2.1.2 Effect Of Oil Pollution On Animals
Effect On Birds:
Marine and estuarine birds are probably the only group of marine organisms that
have so far been affected by oil pollution to an extent sufficient to jeopardise local
populations of birds (Albers and Gay 1982). Tannis and Morzer-Brugus (1968)
estimated the total mortality per year following chronic oil pollution in the North
Sea, and North Atlantic and discovered that it ranged between 150,000-450,000,
birds affected. Albers and Gay (-*
1982) Reported that avian embryos are very sensitive to microliter ((I) quantities of
crude been observed by Hartung (1964) that growth was depressed at the highest
concentration of Iml of oil administered to mallard ducklings. Miller et al., (1978)
reported that herring gull (Laws argentatus) chicks fed single dose of 0.02ml of
South Louisiana crude oil experience cessation of growth as well as impairments
of osmoregulation.
The immediate effect of crude oil spillage on birds inhabiting natural ecosystems is
the fouling of their feathers. Clark (1969) reported that feathers become matted
together, resulting in the loss of buoyancy, repellent, and insulating properties of
the plumage.
Hartung (1967) showed conclusively that they ingest significant amounts of oil
whilst preening their contaminated feathers. Further pathological observations
suggest that the effects of crude oil may be systemic. Although none of these
conditions have been associated with the disruption of specific physiological
functions. The loss of the feather's water proofing property, and the consequent
chilling contribute significantly to the mortality of the birds.
Hartung and Hunt (1966) reported that contaminated birds examined at autopsy,
showed various pathological conditions like fatty acid degeneration of the liver,
toxic nephrosis, enlargement of the spleen, adrenocortical hyperplasia, atrophy of
the pancrease, symptoms of irritation, and lipid pneumonia.
2.1.2i. Feed Intake: Variela & others (1978) reported that the first level on which
crude oil affects performance of animals or organisms is by modifying and reducing
the amount of feedstuff the animal or organism ingests. Gupta & others, (1968)
observed a detrimental effect in calves when DDT was included in their diets at
levels of between 500-700ppm, while lower concentrations did not exert any such
adverse effect on feed intake. This could be attributed to the unpalatable taste of
the forage when contaminated by crude oil. Fish contaminated with crude oil are
often unpalatable (Nwankwo and Ifeadi, 1988).
Agunwamba (2000) attributed odour in water to be as a result of volatile
substances associated with organic matter, like algae, hydrogen sulphide and so
on and that chlorination may also produce odour. He also stated that tastes are
due to dissolved salts such as iron. Hunt and Foster (1972) observed in hens that .
DDT levels between 10-50ppm did seriously affect the feed intake over a
prolonged period of treatment. Berepubo & others (1 994) reported a similar trend
in rats .The reduced feed intake associated with crude oil ingestion could adversely
affect certain physiological activities of the body. Heywood (1981) and Nwokolo
(1984) reported a decline in feed intake, severe depression in growth responses,
as the level of crude oil contamination in the feed increased in rats and poultry
respectively.
A lot of animal feeds are known to be contaminated. Variela & others (1978) stated
that the problem of feed contamination especially by organochlorated pesticides is
deeply affected by its wide and progressive spread. Also that the lipolisable nature
of these products, together with their high resistance to chemical, physical or
biological degradation, causes them to be easily retained by all types of fatty
biological material, and are thereby eliminated with difficulty. This persistence he
noted is found to a greater or lesser extent in all chlorinated hydrocarbon
pesticides, except for methoxychlor. Thompson and Hill (1 968) detected pesticides
in samples of corn and wheat from nine different countries. Combs and Brewer
(1975) reported that the presence of chlorinated hydrocarbons in mixed feeds was
common in the USA, and the most highly contaminated ingredients are the
products of animal feed (meat and fish flours, fats). These conclusions are
supported by Minyard & others, 1963; and Jackson, 1963. The compounds
showing the highest incidence are DDT and similar materials, although the
presence of dieldrin and lindane is also frequent (Arends & others, 1972; Hill &
others, 1971 and Jackson, 1963).
In an attempt that was made to relate the composition of feeds to their pesticide
content, it was observed (Jackson, 1963) that foods with a high fiber and low
protein proportion showed high residue levels, which was due, according to the
workers involved, to the greater proportion of grain coverings directly exposed to
such contaminants. Though all of the bibliographical data reports the presence of
chlorinated hydrocarbon contaminants in foods intended for animal consumption,
only (Hill & others, 1973) do these residues attain values that might be considered
unacceptable. Nevertheless, small real concentrations (Cummings et all 1967,
1966; United States Dept. Of Agriculture {USDA), 1965) become important when it
is considered that continued exposure to this type of pesticide may unleash effects
and give rise to concentrations in fatty tissues, eggs, and milk that would not be
attained during a brief ingestion period (Variela & others, 1978).
2.1.2ii. Effects On The Nutritional Status
Nutrient intakes form a continuous spectrum from deficiencies to excesses and
imbalances in quality and quantity, and they influence all living organisms each day
(Paul & others, 1982). Optimal nutrition requires intakes of all essential nutrients
sufficient to meet animal needs and implies that no substances be ingested in
quantities large enough to be detrimental to health. Nutritious food is a mixture of
thousands of chemicals any one of which could be harmful, perhaps fatal, to the
consumer if eaten to excess. This holds true even for essential nutrients such as
zinc, copper, methionine, vit.A and others. Mammals cannot live without them, but
in excess they are toxic. Although chemicals can interact with nutrients in a
manner, which may result in no more than a temporary deletion of that nutrient or
nutrients from the diet, more often the interaction or its products results in more
serious consequences (Paul & others, 1982) such as toxic effects and presence of
anti-nutritive factors in feed. Intoxication and various squelea may ensue, or the
process of carcinogenesis may be initiated or promoted (Variela & others, 1978).
Copper and selenium interact in important ways with others including Zn, Mn, Fe,
F, Mb, Ar, and other toxic heavy metals. Selenium protects against toxicity from
mercury and cadmium (Parizels & others, 1976) as well as the potent hepatoxin,
aflatoxin B (Newberne and Cormer, 1974).
Zinc deficiency increases susceptibility to the toxicity of copper, cadmium and
mercury but not silver (Matrone, 1974). Protein has detoxifying effects on trace
elements (Shackman, 1974) pesticides and aflatoxins (Madhaven and Gopolan,
1965).
Vitamin A inhibits hydrocarbon tumor induction in the upper gastrointestinal tract of
hamsters and may influence respiratory tract carcinogenesis but the effects are not
consistent (Saffioti & others, 1967). Deficiency of Vitamin B6 may enhance bladder
tumor in rats. (Paul & others, (1978). Protein quality and methionine content in
particular, are important in the detoxification of pesticides (Webb and Miranda,
1973). The general opinion that pesticides are tolerated more poorly in their
ingestion is concurrent with deficient nutritional conditions, and in this regard
deficiencies of protein origin are of capital importance (Variela & others, 1978). In
studies conducted by the school of Boyd, showed that diets with low protein levels
(3-3.5% casein), with respect to the test diet (26% casein), double the toxicity of
chlordane (Boyd and Taylor, 1969) and triple that of DDT (Boyd, 1969). In the case
of DDT, the LD50 was considerably reduced when the protein ingesta were only
9% and the rats showed additional symptoms of gastric ulcers (Boyd and Castro,
1968, 1970; Boyd and Krijnen, 1969, 1970).
There is one pesticide Heptachlor, whose toxicity would appear to be inversely
related to protein levels, i.e. lower protein levels lead to lower toxicity since the
conversion of this compound to heptachloroepoxide (a more toxic metabolite) is
lower under these nutritional conditions (Weatherholtze & others, 1969 and Webb,
1970). In addition to protein rate protein quality may also be an important factor.
Deleuze & others (in press) studying the influence of a good quality (12% casein)
and poor quality (8% gelatin plus 4% casein) protein on the toxicity of dieldrin in
weaning rats found that they dropped from 40 (3mglkg body weight in rats fed with
good protein, to 25 (2mg in those which received only poor quality protein.
Although the 12% casein was supplemented with 0.2% methionine, and this may
well have helped to lessen the toxic effects of dieldrin to some extent since, just as
has been proven Stoewesand & others, (1968), methionine can provide protection
against dieldrin and other insecticides, particularly in relation to deficient diets,
such as the above study.
2.1.2iii. Effect On Weight Gain And Growth Rate.
Moderate to high contamination levels of toxicants are known to affect the growth,
or alter the body weight gains of animals. According to Heywood (1981) of all
characteristics measured during the cause of toxicological study, the body weight
index was considered the most important, because it is an extremely objective
measure of the health status of any group of animals. Heywood (1981) observed
that the suppression of body weight gains by toxic components is often or
commonly associated with reduced feed intake. Olayimika (1996) observed that
body weight gains depressed with increasing levels of contamination and the less
the feed consumed, the less the body weight gain. Berepubo & others (1994) also
observed a similar trend with rabbits. A corresponding decline in feed intake and
growth depression had been reported in poultry (Nwokolo & others, 1984). Crude
oil ingestion in one form or another, during critical development stages is known to
depress growth (Davison, 1970). Szaro & others (1978) indicated that 50% crude
oil administered to ducklings caused a reduction in growth rate of treated animals
by a difference of 20g less than the controls at 8 weeks duration. Then Olayimika
(1996) observed that goats on the highest level of inclusion of 0.3% crude oil had a
much reduced growth rate, when compared to the control. Also a persistent weight
loss was observed. This he partly attributed to the corresponding reduction in feed
intake observed, the depletion of energy reserves, and probably increased
metabolic rates needed to mobilise and excrete the crude oil hydrocarbons, and
consequently less energy from the feedstuff was allocated to the growth,
development, and repair of damage caused by the toxicants to the tissues.
It has equally been observed that moderate or low sub-lethal levels of
contamination may not affect adversely the growth, or alter significantly the body
weight of animals. Davison (1970) conducted studies involving levels of between
10-l'5ppm DDT and 3-20ppm dieldrin, both chlorinated hydrocarbons and found
that it did not exert any significant effect on body weight in sheep. However when
the levels were increased to 2-4mglkg dieldrin a detrimental effect was observed
on the body weight gains in sheep (Davison, 1970). Similarly Olayimika (1996)
observed that goats on the highest level of 0.3% crude oil had a much reduced
growth rate when compared to thess 0.15 % crude oil contamination and the
control. This effect is intensified if the animals diet is protein deficient or has low
quelity diet (Variela & others, 1978). Furthermore reduced feed intake may be
another factor as observed in all the studies made. The significant differences
between weight gains of treated animals and their controls suggests that the effect
of crude oil ingestion on weight gains becomes more severe with an increase in
the time of exposure (Olayimika, 1996). Generally, the suppression of body weight
gains is commonly associated with reduced feed intake, which was accompanied
by severe depression in weight1 growth responses as the levels of contamination
increased.
The nutritive value of feed is of paramount importance and feed supplementation is
necessary where oil contamination is prevalent, also good protein quality diet is
essential to minimize the effect of such pollutants on livestock. For example,
condensed tannins can lower the feeding value of diets due to reduced availability
of nutrients especially proteins, and lower cell wall (Barry and Blaney, 1987). The
use of supplements of Na, Ca, S and N (urea) improved wool growth and live
weight gains of sheep fed Acacia aneura "mulga" containing condensed tannins
(Gartner and Niven, 1978; Elliot and McMeniman 1987) even though proximate
analysis of the leaf showed that these nutrients should have been adequate for
growth. Hence supplementation in diets might help to reduce weight loss and
growth in animals.
2.1.2iv. Effect On Dry Matter Digestibility
Since the 1960's there have been evidence that feed intake of ruminants is
restricted by rumen capacity. Evidence for the physical limitation of intake comes
from observations of a positive relationship between voluntary intake and
digestibility (Crampton & others, 1960; Balch and Campling, 1962).
In advanced technological societies, man and other mammals are being
challenged by an ever-increasing number and variety of foreign organic
compounds (Smith, 1978). These persistent and universal contaminants produce
changes researched in organisms at different levels in the enzymatic mechanisms,
especially the liver (Variela & others, 1978). Environmental pollutants when
consumed have biological effects, which are frequently modulated by
biotransformations. These pollutants are well absorbed from the stomach and1 or
upper small intestine when administered per 0s. Contact with gastro-intestinal tract
per se and the liver may lead to chemical transformations (Smith, 1978). Enzymes
located in these tissues (and to a lesser extent in kidney, lungs and skin) are
capable of metabolising xenobiotics (Smith, 1 978).
Mammals contain at least 60 different species of organisms, which includes gram-.
ve, anaerobic rod shaped microorganisms such as Bacteriodes species, which
comprises over 90% of the intestinal flora of most animal species (Barthia and
Venkitasubramanian, 1972). The remaining organisms consist of anerobic or
facultatively anerobic enterobacteria (e-g. E. coli) and small percentages of aerobic
organisms such as certain Lactobacilli, Streptococci, Staphylococci and yeast
(Bergen, & others, 1972; Barthia and Venkitasubramanian, 1972). These
organisms tend to mediate mostly reductive-type transformations, however,
hydrolysis and other as yet mechanistically specified reactions (e.g. N- and 0-
dealkylations) have been reserved (Smith, 1978). For example, the reaction of
nitrite and secondary amines such as dimethylamine (xxxvi) is straightforward
under acid conditions (Smith, 1978). This reaction can occur when intestinal
microorganisms are incubated with secondary amines and nitrite or nitrate under
neutral conditions (Ayanaba and Alexander, 1973).
Goats and sheep possess a peculiar digestive physiology, which comprises a
rumen, which is the functional unit of the four-compartment stomach. The rumen
contains a myriad of \microbial species, which are involved in the degradation of
fibrous feedstuffs (Salstry and Thomas, 1980). There is the possibility therefore
that the crude oil hydrocarbons might have exerted toxic effects on microbial
population of the rumen which could increase with increased level of crude oil
contamination. (Olayimika, 1996). Ahearn & others, (1977) and Vestal et al (1984)
observed some toxic effects on microbial species under both aerobic and
anaerobic in-vitro studies. The toxicity manifested in form of growth inhibition,
organelles and cell membrane dissolution resulting in mortality (Teh, 1974; Andrew
and Floodgate, 1974; Atlas and Busdosh, 1976).
Olayimika (1996) observed a significant difference in feed conversion efficiency
and demonstrated that the observed significant difference in body weight gain and
feed consumption, were due to increasing crude oil levels. The less the feed
intake, the less the body weight gain obtained with increasing levels of crude oil
(Olayimika, 1996). An increase in contamination reduces the ability of the animals
to convert consumed forage to body tissue efficiently, probably due to quantity of
feed or the physiological status of the animal (Olayimika, 1996). According to
Norton (1994), secondary plant compounds may produce toxic effects in ruminant
animals (e.g. cyanide, nitrate and flouroacetate), may depress intake andlor
uilisation of feed components (e.g. mycotoxins and high tannins), and may
enhance feed nutritive value (e.g. low tannins and anti-protozoal activity).
Condensed tannins inhibit plant protein degradation in the rumen and decrease
rumen availability of sulphur, which then depresses the digestibility of sulphur,
which then depresses the digestibility of plant cell walls (Norton, 1994). It is also
possible that these tannins inhibit microbial enzymes in the rumen and decrease
the availability of plant protein for digestion in the intestines. Microorganisms in the
rumen have been found to be able to metabolise moderate amounts of oxalate
((Norton, 1994). The action of rumen microbes in detoxifying toxic compounds has
been reported.
Rumen microorganisms may metabolise toxins in several ways;
1. They may convert the toxin to non-toxic metabolites. Unique anaerobic
bacteria (Oxalobacter formigenes) have been isolated which convert oxalate
to C02 and formate. They depend on oxalate as their sole energy source
(Allison, 1985).
2. They may convert toxin to compounds with activity in the animal, a classic
example being the conversion of the isoflavones, formonentin and diadzin
present in oestrogenic clover to equol and 0-methylequol by demethylation
and reduction (Cox, 1985). These are compounds, which are more active in
reducing fertility in female sheep.
3. They may convert the toxin to substances with a completely different toxic
property. For example, the mimosine in Leucaena luecocephala has strong
anti-mitotic and depilatory properties but is not goitrogenic, whereas its
minimal metabolite, 3,4 DHP is potent goitrogen (Hegarty, et al., 1979).
4. They may not metabolise the toxin at all, although subsequently some
change may occur in body tissues. For example, flouroacetic acid, present
in some Acacia species, is not metabolised by rumen microorganisms, but
is converted to flourocitrate in the body tissues. This then blocks carboxylic
acid cycle causing citrate accumulation and subsequent toxicity and death.
Therefore rumen microbes, which aid digestion in ruminants, are then
affected which then affects the digestibility of the feed in the stomach.
2.1.2~. Effect On Organ Weights
Organ weight analysis is also considered very important in general toxicity studies
in animals (Heywood, 1981 ) and are responsible for performing important functions
needed for normal body physiology such as the kidney, heart, lungs, liver and
spleen. For instance in a study by Heywood (1981), organ weights showed a
sensitive response to various chemicals in rodent and dog studies. Olayimika
(1996) observed that organs excised from animals on higher crude oil levels,
showed a much reduced organ weight when compared to the respective control,
particularly in kidneys, lungs, heart and spleen. He also observed that depression
in organ development was consistent with the overall reduction in body weight
gains, as crude oil concentrations increased. This decrease in organ weights he
attributed also to a reduced feed intake and weight gains, which consequently
caused reduced organ development.
Long-term stress has been found to cause cardiovascular diseases (Siegel, 198O),
which could effect renal hypoper fusion resulting in the atrophy of the kidney
(Levinsky, 1977). Olayimika (1999) observed a linearly reduced kidney weight
which imposed the stress resulting, most probably, in the release of offending
stress hormones, glucorticoids which have been characterised by tissue
catabolism (Siegel and Latimer, 1970). Hypoper fusion resulting from the atrophy
of the kidney could also contribute to the weak appearance and the signs of ill-
health observed in goats on the crude oil contaminated forage, the effect being
most conspicuous in those on the highest crude oil level (Olayimika, 1999).
Olayimika attributed the reduced weight of the heart (which might imply a reduction
in its capacity) to an impaired blood circulation. This in combination with reduced
feed intake was probably responsible for the weak appearance, and other signs of
ill health observed, in the test animals on treatment with the highest level of crude
oil contamination (0.3%). The low organ weight is actually due to hypoplasia and
hypotrophy of the organs, as a result of the stress imposed by the crude oil
(Olayimika, 1996). Similarly, the reduced weight of the lungs could also be
attributed to the weakness, and the reluctance to move, which may have resulted
from an insufficiency in its oxygen exchange capacity (Carter and Cameron, 1977).
The response of the lung to small quantities of hydrocarbon solvents is rapid and
severe. Relatively small amounts will spread a thin layer over the large moist
surfaces of the lungs resulting in pneumonities, pulmonary edema and hemorrhage
(Nelson, 1970). The slightly higher weight of the liver of animals on 0.3% (3glkg
forage) crude oil could have resulted from poor or slow detoxification of the
toxicant, which may have caused infiltrations or accumulation of hydrocarbon
molecules (Olayimika, 1996). This probably also accounted for the higher weight.
This observation agreed with similar results obtained by Carter (1983), who
reported that the increase in relative wet liver weight of female rabbits with flouride
was attributed to the toxic effects of flouride which was a constituent of a chemical
product, that acted on the centrilobular hepatocytes which caused them to
hypertrophy, and may also cause extracellular infiltrations of fat (Carter and
Cameron, 1977). Similarly, rats fed polychlorinated biphenyls (PCB) also resulted
in liver hypertrophy caused by the proliferation of the smooth endoplasmic
reticulum, and also an increase in lipid drop within the cytoplasm of the affected
hepatocytes (Carter, 1983). Olayimika (1 996) observed reduced spleen weights in
goats, which was associated with the increase in crude oil levels, and also related
to reduced feed intake.
This observation could be associated with low antibody and or the lymphocyte
formation, resulting also in low phagocytosis (Olayimika, 1996). It is likely that the
hyperfunction of the spleen could consequently lead to an increase in parasitism,
and or fluctuations in the blood cell population (Saita, 1974).
Baars & others, (1988), observed that regular clinical inspections of sheep
exposed to heavy metals and fluoride contamination in the Saeftinge salt marsh of
the Netherlands showed no signs of acute or chronic intoxication. The organs of
sheep that died during his investigation showed increased levels of cadmium in the
liver and kidney, and iron in the liver, but not enough to cause alarm. The fluoride
he found in the rib material, although slightly increased, did not indicate flourosis.
He then concluded that contamination with metals and fluoride, as,observed in the
salt marsh does not apparently impair the health of locally grazing sheep.
This he attributed to selective consumption behaviour of the sheep (presumably
sheep consumed vegetation selectively), stabling during winter, limited biological
availability of the elements studied, and a sheep management adapted to the local
circumstances. Some breeds of sheep are known to be sensitive to copper
intoxication e.g. the Texel breed of the Netherlands (Baars & others, 1988).
~ l t h o u ~ h the breeds used during his investigation were not so sensitive to copper
intoxication (Suffolk and Romanov breeds). It is likely that certain breeds of
livestock in Nigeria may be less sensitive to oil pollution than others.
2.1.2vi. Effect On The Haematology Of The Animal
The several hydrocarbon constituents, contained in crude petroleum, are known to
exert some severe haematological effects in animals. Notably, the aromatics,
cyclic and unsaturated, such as naphtharenes, phenanthrenes, and benzene have
been reported (Saita, 1974).
Fabre, (1946) observed that in acute poisoning, benzene is fixed predominantly in
the brain and adrenals, and in chronic cases affects the bone marrow, where its
presence becomes evident long after exposure to the toxic agent has been
discontinued. Saita, (1974) reported that benzene is a very powerful poison,
capable of inducing severe toxic effects, and is not commonly employed these
days for therapeutic purposes.
The haematological changes occuring in chronic benzene poisoning are; bone
marrow depression, also called involutional myelopathy, leukaemia and related
disorders. Further acute benzene toxicity is electively localised in the nervous
system, the bone marrow, and also in the haematological symptoms in the chronic
forms of benzene toxicity (Saita, 1974). Parmentier (1952) discovered that
benzene first exerts a transitional excito-proliferative action on the bone marrow,
followed by a colchinine-like effect (interruption of mitosis during metaphase), and
also by radiomimetic action (nuclear changes during preprophase). Also changes
have been found to occur during the anaphase of the cells engaged in the division
process (Rondanelli and Gorini, 1961), together with anomalies of the karyotype (a
deletion of chromosomal materials, trisomia, and polyploidism) (Fornii and Moroe,
1969).
Benzene has been found to have antimitotic actions, which interrupts the
maturation process of the cells, and this leads to marrow depression, the
chromosomal anomalies, and aneuploid cell conditions. According to Saita (1974)
benzene may have precipitated the development of the leukaemic types of
changes observed, with the aberrant strains of cells becoming predominant. Also
benzene is revealed to have antimitotic and mutagenic actions, with the latter
preceding the former.
Furthermore, benzene induced blood changes, which manifested as leukaemia
that originated from cell maturation and the progressive selection of an abnormal
clone. However, haematological disorders may not entirely be attributable to
benzene alone, but may be due to its metabolic products in the body (Saita, 1974).
Parmentier (1953) identified this metabolic to be hydroquinone, which is an
oxidation product of benzene. Saita (1974) reported that, in acute benzene
poisoning, it exerts a stimulating action, followed by a narcotic action, affecting the
bulbar centres electively.
Furthermore, it has been implicated in marrow hypoplasia manifesting, in severe
intoxication in form of weakness, blurring of vision, dyspnoea on exertion,
haemorrhagic tendencies (Petechiae), menorrhagia (bleeding from gums), and
pale mucous membrane. There is also a decrease in number of red blood cells in
the peripheral blood and haemoglobin level, indicating a form of anaemia with a
low number of white blood cells (below normal), neutropenia, and lymphocytosis,
alterations in platelet morphology (Saita, 1974).
Schildneck (1952) reported benzene induced anaemia, which resulted in repeated
bleeding also with leukocyte count less than 1,000 per mm3, the neutrophil
polymorphs being as low as 1-2% and platelets being hardly detectable. Sternal
punctures from benzene exposed human patients by Demicola (1960). He
revealed that there were no pieces of marrow found, and smeared films showed no
traces of erythrocytes, or myelocytes and plasma cells. Olayimika (1 999) observed
that packed cell volume (PCV) decreased with increasing levels of crude oil
administration thereby suggesting an anaemic condition particularly in goats with
the highest level (0.3%) of contamination.
This phenomenon may be explained by the ingested crude oil which imposes a
physiological stress on the animals and therefore causes the release of
glucorticoids which have been found to deplete erythrocytes (Dougherty, 1952;
Siegel, 1980), probably via involution of the bone marrow (Wilson & others, 1975),
hence reduced PCV values. Furthermore, hemorrhages were widespread and
resulted from severe thrombocytopenia, but occasionally from
hypofibrinogenaemia (Demicola 1960). Saita (1 974) reported that samples
collected from benzene induced marrow hypoplasia, revealed one of dimination of
cells, including absence of megakaryocytes. Further cellular samples obtained
showed that the most immature form of the red blood cells series (proerythroblast,
early normoblasts, promyeloacytes) were present in large numbers.
The first clinical manifestation of benzene induced marrow hypoplasia was made
by Delore and Borgomano (1928). However, the basic experimental research was
later conducted by Lignae (1932), who administered benzene to rats, reported
aleukaemic infiltrating lymphoblastoma, mast cell leukaemia, and eosinophilic
leukaemia. Saita (1974) also observed an acute aleukaemia with elevated levels of
white cells (leukophilia). This makes it very difficult for the animal to survive. The
animal then suffers cases of neutrophilia (neutrophilic luecocytosis), which is
attributed to the stress imposed by crude oil toxicity, and thus lowers the animals'
defense mechanism (Olayimika, 1996).
Also animals are seen to be prone to diseases such as orf, mange and other signs
of illhealth especially with increasing levels of crude oil contamination (Tijkian, &
others, 1979 and Olayimika, 1996). They also reported that the condition of
neutrophilia manifests moderately or highly as a result of bacterial infections,
inflammatory disorders, physical and emotional stimuli, systemic infections,
poisoning with carbon monoxide, drugs, and other types of toxicity by inorganic
compounds. Other reasons given were due to an increased formation of active
neutrophil cells, due to parasitic infections and also stress due to crude oil toxicity.
Eosinophilia (elevated eosinophil values) is another problem associated with crude
oil toxicity although; cysts of tapeworm (Taenia spp.) usually found in the
abdominal cavities of post mortemed animals are also responsible (Olayimika,
1996 and Tijkian, & others, 1979). Tijkian et al (1979), observed that
polymorphonuclear eosinophils are usually found in increased levels or counts, in
conditions of eosinophilic leukocytosis caused by allergic conditions (rashes), liver
infections,stress syndrome, parasitic infections; helminthiasis (Taenia spp.,
Ascarida).
Other cases of crude oil toxicity include, carcinogenesis of the skin caused by coal
tar preparations, which contain polyclic aromatic hydrocarbons (Newberne, &
others, 1978). Also cases of mortality have been reported in animals affected by
crude oil toxicity (Berepubo & others, 1994; Olayimika, 1996, Nwokolo & others,
1984). This agrees with Peterson & others, (1983) who reported that a pregnant
heifer gave birth to a calf that died of respiratory failure few minutes after birth after
delivery.
Also toxic compounds have been found to accumulate in animal tissues and in milk
and eggs (Variela & others, 1978). He noted that fatty tissues, milk lipids, and egg
lipovitelin are the preferential storage and (when this occurs) elimination routes for
chlorinated hydrocarbon pesticides due to their liposoluble nature. Cummings et al
(1967) concluded that low levels of insecticides administered by the oral route led,
with time, to the formation of deposits in the adipose tissue of hen which were ten
ttmes greater than those of its diet, while the accumulations in the liver were of the
same proportion, and in the muscles only one third of the concentration of the
pesticide in the diet was attained. Thus we can assume that such tissues and
products of livestock could lead to food poisoning to the final consumers.
Pollutants have also been shown to significantly affect reproductive phenomena. A
group of scientists led by Prof. Niels Skakebiek of the University of Copenhagen
claims that there is increasing evidence that a risk in male infertility is linked to the
effect of hormone like chemicals in the environment. They blame pollution for the
halving of sperm counts among men over the last fifty years and a rise in
abnormalities of the male reproductive system. Exposure of the male foetus to high
concentrations of oestrogen could be the key-triggering factor (Allanah, 2000)
2.2 COMPENSATION
Compensation has to do with activities of the oil producer and the claims paid for
impacts or loss due to their operation.
Conventional methods of payment of compensation
This deals with the quantifying of the impact due to pollutions on the environment
and paying compensation for the loss due to this operation or activities. This
method is peculiar during the early exploration and exploitation of crude oil in
Nigeria when there was no much awareness and enlightenment on the effect and
impact of crude oil on the environment. There is a great variation in the
compensation paid.
2.21 Claims
These are demands made by third parties for the disturbances of their surface right
from the oil companies that are responsible for environmental degradation of their
'environment.
Claims are paid in form of compensation to claimants, who may be individual,
community, government or claim agent.
2.3 FACTORS AFFECTING THE AMOUNT OF COMPENSATION
Amount of compensation paid due to environmental degradation can be affected
by the following factors:
The amount paid can be negotiated with the claimants by the oil
company responsible for pollution of the environment or that cause
negotiable impacts on the environment.
Spill or pollution on the company's right of ways (Row) are not
compensated for unless if there is report of spillage or blockades on
the third parties land or water resources.
No compensation is made due to sabotage unless due to equipment
failure or leakage caused due to corrosion or other activities of the
company.
Another factor affecting the amount of compensation is the
inaccurate estimation of compensation paid for disturbance of user's
surface right but not disturbance of the entire surface and subsurface
right which always leads to crisis and unrest in the area of operation.
2.4 IMPACT OF INACCURATE ESTIMATION OF COMPENSATION
Impacts of inaccurate estimation of compensation can lead to neglect I non-
payment of claims. Inadequate compensation and counter ownership claims by
more than one claimant can also lead to typical grievances and restiveness
between Oil Company responsible for a spill and their host community.
Recently, it is generally believed that the amount paid for or rate used for
determining compensation is not commensurate with the impact created by
environmental degradation I pollution. The secondary impacts like quality of water
polluted, number of fishes destroyed, killed and rendered unfit for human
consumption are often not considered. This has now resulted in restiveness and
unrest within the area of oil operation and strain in relationship between the oil
operators and their host community.
Sometimes, inaccurate estimation of compensation and impacts of environmental
pollution cases between oil company and host community or third parties are
legally handled for justice and fairness to prevail between the two parties in terms
of accuracy in payment and preparation of memorandum of understanding (MOU).
2.5 HISTORY OF SHELL PETROLEUM DEVELOPMENT COMPANY
LIMITED
The Shell Petroleum Development Company of Nigeria Limited (SPDC) is the
largest oil and gas exploration and production company in Nigeria. It is the
operator of a joint venture in which NNPC holds 55 percent, Shell 30 percent, Elf
10 percent and Agip 5 percent.
The forerunner of SPDC, Shell D'Arcy, pioneered oil exploration in the country.
The company was granted an exploration licence in 1938,and discovered the first
commercial oil field at Oloibiri in the Niger Delta in 1956 leading to the first export
of oil in 1958.
The Federal Government acquired 35 percent of the company in 1973 forming the
basis of the joint venture operation that persists till today. The company assumed
its present-day name in 1979. The present joint operating agreement and
memorandum of understanding were last revised in 1991.
The SPDC produces almost half the company's oil from more than 90 oil field in
the Niger Delta area. It also supplies 95 percent of the country's commercial gas
and its oil mining area of 31, 000 square kilometers that contains more than half
the country's gas reserves. The scale of the company's operation is massive,
involving an infrastructure of 6, 200 kilometers of pipelines, more than 1000 wells,
87 production stations, 7 gas plants and 2 large oil terminals at Forcados and
Bonny.
The company operates six Directorates: New Business and Planning, Production,
Development, Finance and Commercial, External Relations and reports to the
Managing Director in Lagos.
COMMUNITY RELATIONS
SPDC supports a future of development and progress for communities in its areas
of operations and its aim is to work alongside all communities in harmony. The
company's social investment programme dates back to the 1960s when it
launched an agricultural initiative in the Ogoni area. This spread throughout the
Niger Delta and beyond, not only helping farmers by improving crop varieties and
farming techniques, but by setting them up in business through cooperatives.
More recently, SPDC has been increasingly involved in development projects in
the fields of health, education and vocational training, linking up with non-
governmentalorganizations, which have expertise in these specialist areas. The
company's health progamme involves refurbishing and re-equipping existing rural
hospitals and buildings and supplying new hospitals. SPDC also gives
scholarships each year to students from oil producing communities and sponsors
science teachers in rural schools. In addition, the company is running vocational
courses to teach unemployed youth skills to help them set up their own small
businesses.
All this is in addition to providing basic amenities including water schemes, roads,
school buildings and clinics. Programmes are developed in close consultation with
communities. SPDC was used as a case study because of its company community
relationship and as a major operator of the joint venture in oil stream in Nigeria.
SPDC has different department and teams that deals and handles community
affair in terms of developments, employment and growth of their shareholders,
which enhance smooth operations and cordialiness between SPDC and their host
community.
2.6 IMPACT OF THE OIL INDUSTRY ON THE NIGERIAN ENVIRONMENT
There is no doubt that the oil industry has created remarkable impacts on the
Nigerian environment and its inhabitants. The major impacts come from oil
spillages, gas flaring and siesmic prospecting. Of the three, oil spillage is the most
important. Such impacts generally include, devegetation and other forms of
ecological damage such as thermal pollution of air, land, water and destruction of
livestock and wildlife, damage to soil and crops by heat and the deposition of
primary and secondary contaminants.
Within the past three decades, this country has recorded over 3,000 oil-spill
accidents, with over 24 million barrels released into our territorial coastal and
offshore marine environments. Oil spillage involving refined petroleum products
have given rise to reported cases of groundwater contamination and outbreak of
fire in various parts of the world. In response to this, there has been resistiveness
and unrest in the Niger -delta region and also clamouring for compensation and
betterment as a result of impact of environmental degradation in their environment.
A brief history of some of the most recent oil spills is given below;
a. The Funiwa-No. 5 Oil Well Blowout
This incident occurred on 17 January 1980 and resulted in the release of 400,000
barrels of crude oil into the coastal waters and land. Within six months, mangrove
vegetation started dying, and in the contaminated waters, crabs, molluscs and
periwinkles died. The long-term effects of the pollution are yet to be documented,
but it is known that a compensation payment of over 12.0 million Naira was paid for
the damages caused by the incident.
b. Oyakama Oil Spillage
The Oyakama oil spillage was noticed on 10th. May 1980 in a seasonal swamp
environment. About 30,000 bbls. Of crude was spilled as computed from
production delivery and receipts. Calculations from orifice size and pressure on line
show,
The spillage was on for more than two weeks. While depollution was in progress, a
fire broke out and covered 25 hectares of the area polluted. The effect was
devastating as the vegetation was completely consumed by the conflagration.
Experts later confirmed that the fire did more damage to the ecology of the area
than the oil spill. The Petroleum lnspectorate ordered a study of the environmental
and social impacts of the oil spill, but it did not start until about one year after the
spill occurred. The study showed that the effects of the spillage was minimal
except that:
1 A significant amount of oil beyond the threshold considered good for
vegetation was found in some soils covering about 21 hectares,
2. Repollution of the topsoil from below was noted about two years after the
incident,
3. The water table was affected only in about 15.1 hectares,
4. Estimation of the complete biodegradation of the oil on the topsoil was put
at 8 years, while oil at the subsoil was put at 33 years .On the whole N2,
269,000 was spent by NAOC on materials for road construction, clean-up
services, road maintenance, community services and compensation.
c. Oshika Oil Spill Incident
About 13 August 1983 the Nigerian Agip Oil Company (NAOC) reported a major
spill near Oshika Village along the Brass-Ebocha pipeline. The Petroleum
Inspectorate estimated the quantity of crude oil spilled to be about 10,000 barrels
(NAOC estimate put it at 5,000 barrels). The cause of the spill was a small hole in
the pipeline and a similar spill in 1979 involved the loss of 500 barrels of crude oil.
As in the case of Oyakama, the area affected by the spillage was seasonally
flooded, and contained numerous fish traps, creeks and lakes that served as a
source of drinking water for the villagers.
d. Forcados Terminal Oil Spillage
o n 6th. July 1979 one of the ten (10) storage tanks of 600,000 barrels capacity in
Shell's Forcados Terminal had an accidental rupture of the bottom plate. The entire
content of the tank involving about 570,000 bbls was rapidly discharged into the
bunded wall around the tank. Five days later, during an exceptionally heavy
tropical rainfall, the bundwall failed and all the trapped oil spilled out into the
waters. Normal fishing activities and local marine life were inhibited for a
considerable period.
Thereafter, compensation amounting to over 44550,000 as paid to the villagers for
temporary loss of their fishing rights.
e. NNPC Oil Spillages
The Nigerian National Petroleum Corporation has recorded a number of oil spills
with the significant ecological impact. About 18,000 bbls of crude oil were lost on
2"d November 1982 when NNPC's crude oil pipeline (system 2C Warri-Kaduna)
was ripped open by a road construction company. It polluted adjacent farmlands,
the nearby freshwater stream and swamp. The compensation paid for damages
amounted to W102,OOO. Earlier on, the same pipeline was ripped open on 28
February 1981 when another construction company was building a road near
Ekpoma. Total quantity of crude oil spilled was calculated to be 5,240 bbls, which
covered an area of 5500m2. Apart from the spillage of crude oil listed above, there
have been cases of petroleum products spillages, resulting in various forms of
environmental impact in the operational areas concerned. Between 1980 and
1984, NNPC reported 37 spillages involving the loss of 27,235 bbls of petroleum
products, mainly automotive gas oil (AGO). This is shown in the table below.
NNPC Reported Oil Spills (1980-84)
I I No. Of Spill I Net Volume Spilt (bbls) I 1 Year I Crude Oil I Products I Crude Oil I Products I
In July 1984, a case of oil contamination of underground domestic wells was
reported in the Sharada industrial area of Kano. Although the source of the
contamination was not immediately known, later investigation by sporadic digging
of wells in the area revealed that the contamination was caused by gradual
seepage of the products from the storage facilities at the premises of Arewa
Bottling Company Ltd. In October 1984, another case of well water contamination
1980
1981
1982
1983
1 984
Total
-
1
1
-
-
2
4
14
7
5
7
37
-
5,240.00
17,898.78
-
-
23,138.78
799.81
19,679.28
49.19
1,679.28
5,027.46
27,235.03
by AGO was reported in Kachia Local Government of Kaduna State. The pollution
resulted from previous AGO spillage and subsequent seepage into the subsoil in
the vicinity of the well.
Recently, a lot of saboteurs have increased the level of pollution by destroying oil
pipelines in order to get fuel. This has led to waste of fuel and also loss of lives.
The 1998 Jesse oil disaster is a typical example in which a lot of people lost their
lives and the surrounding area was polluted.
In general spillage or discharge of crude oil or refined petroleum product, may
damage the environment in various ways:
0)
(ii)
(i i i)
In water, oil film on the water surface could prevent natural aeration and
lead to
death of the marine organisms trapped below.
In some cases, fish may ingest the spilled oil or other food materials
impregnated with oil. Such fish often are very unpalatable.
Oil spillage on land could lead to retardation of vegetation growth for a
period of time and, in extreme cases, to destruction of vegetation, It could
also create potential fire hazards, as in the Oyakama oil pipeline spillage,
and render the soil unfit for cultivation.
2.7 ENVIRONMENTAL POLLUTION AND OIL PRODUCTION
Environment implies the surroundings, external condition influencing development
or growth of people, animals, or plants and the living or working conditions.
Pollution is the addition to any segment of the environment, of any material, which
has detrimental effect on the ecosystem.
Environmental pollution occurs as a result of atmospheric activities, which
concentrate the emissions and discharges in areas where people live and work.
These emissions (i.e. wastes), increases as population increases, industries
expand and people become more affluent and lifestyles and wastes increase.
Various materials are released into the environment in the course of oil
exploration/production operations. These include: - 1. Drilling cuttings, drilling mud and fluids used to enhance production;
2. Produced fluids; oil, water and chemicals injected into them to control
corrosion or assist the separation of oil from the water;
3. General industrial waste such as secondary liquid and solid waste like used
oil, empty drums, domestic sanitary waste and atmospheric emissions.
Drill cuttings are natural rocks and the major constituents of most drilling muds are
natural non-metallic minerals such as barytes and bentonitic clays. When dumped
on the ground they prevent local plant growth until natural processes develop new
topsoil, although these muds are not themselves toxic. In water, these materials
disperse and sink, and may kill local bottom-living creatures by burying them alive.
However drilling muds commonly contain one or more manufactured chemical
additives to improve their properties. Many studies have been carried out on the
effects of drilling mud component on the fresh water and marine creatures. Some
mud additives are toxic in quite low concentrations. Oil based muds cause the
same kind of environmental damage as, does crude oil.
Despite careful precautions, accidents do occur periodically in the drilling for and
exploitation of oil. These accidents have been shown to result from equipment
failure such as: malfunctioning, old age, over-loading, corrosion or abrasion of
parts.
Water produced with crude oil is separated and discharged at different points in
different production systems. In most cases the produced water,contain some
chkmicals injected to inhibit corrosion or to enhance separation from water.
OTHER SOURCES OF POLLUTION:
I. Apart from the pollutants introduced into the environment from exploration
and exploitation operations, refinery wastes have characteristics, which
constitute potential water and air pollutants.
Atmospheric contaminants from the refinery operations include oxides of
nitrogen, carbon and sulphur, for example, NOx, C02, CO and So,. Liquid
refinery effluents contain oil and gas, phenol, cyanide, sulphide, suspended
solids, chromium and organic matter.
ii. Transportation and marketing operations generate oil spills and
hydrocarbon emissions. The major source of oily wastes is from power
generating sets, transportation and storage systems. Lubrication oils
comprise the single greatest type of waste oil currently generated by many
manufacturing companies in the country. In addition to lubrication oils, other
waste oils in the form of sludges, bitumen and oily sands and sediment are
present in small quantities within many of the oil and gas installations
throughout Nigeria. Apart from these types of wastes, oil spills occur
through leaks or damages to pipelines, or from accidents involving tankers
or road trucks. Onshore pollution from oil occurs during the loading and
unloading operations of tankers, tanker ballasting, pumping of bilges by
vessels other than tankers, in port losses during loading and unloading,
seepages through crustal faults that criss-cross much of the Niger Delta and
Nigeria's continental shelf (Ige, Ike, and Woakes, 1985).
Wastewater containing oil may be discharged during the cleaning of the
ballast tanks of ships, tank trucks and tank cars. Leaky valves and faulty
connections manifold pigging and flushing of pipelines are other sources of
oily wastes. Tanks used to store crude oil and volatile petroleum distillates
are potential sources of hydrocarbon emissions. Hydrocarbon can be
discharged into the atmosphere from a storage tank as a result of diurnal
temperature changes, filling operations and volatilisation. Wastes
associated with storage of crude oil and products are mainly in the form of
free and emulsified oil and suspended solids. Tank cleaning contributes
large amounts of oil, COD, suspended solids and minor amounts of BOD.
2.8 THE OIL PRODUCERS TRADE SECTOR (0.P.T.S RATES)
This rate was approved and accredited by the Federal Government through
commerce and industry committee setup to determine parameters for payment of
compensation due to environmental degradation for uniformity and regularity
among the different oil companies operating in Nigeria which is subjected to
revision and changes periodically through government decision and policies.
The oil companies utilize these rates for calculating compensation paid due to
claims for disturbance of user's rights in their area of operation. But the OPTS
RATES never put into consideration, the projected or futurist impacts due to
environmental degradation of the environment in the area of soil nutrient depletion
water quality reduction, and the amount of bio accumulated in aquatic organisms of
toxic hydrocarbon.
Appendix A shows the Revised OPTS RATES
Appendix B shows the compensation paid to the third parties for disturbance of
user's surface right which are subjected to negotiation with claim agents and
claimants before payment and when they are liable as a result of equipment
failure.
2.81 ECOLOGICAL PROBLEM FUND
During the course of study, it was gathered that the Oil Company paid some
amount of money in form of petroleum production fund to the federal government.
As a practical demonstration of the government commitment to
environmental protection and improvement, one percent of the total income
from this petroleum production in Nigeria is allocated annually to special
kological problem Fund. The funds are allocated to federal, state and local
government for priority programmes in five areas: Disaster prevention and
Relief; combating soil erosion; Drought mitigation, flood control and oil spill
clean up. The government spend about $300 million a year (N37. 5million)
on environmental protection and resource management programmes
representing 1 to 1.5% of G. D. P. (Gross Domestic product)
In spite of this, federal government has also been prompted to make bulk grants to
the various communities affected by environmental degradation and establishment
of agencies and ministries like Federal Ministry of Environment to regulate and
monitor the activities of the oil companies.
2.9 CONTEMPORARY CONCEPTUAL FRAME WORK
STUDY OF UNITED STATES OF AMERICA COMPREHENSIVE
ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT.
The U.S has experienced countless environmental incidents involving hazardous
substances, such as used chemicals and processed wastes. Canal for example,
the Hooker Chemicals and Plastic Company used a neighborhood in Niagara Falls,
New York, as a chemical dumpsite for estimated 21,000 to 22,000 tons of highly
toxic chemical waste from 1942 to 1953. Although love canal's water, soil and air
were heavily contaminated with hazardous wastes, the company sold the dump
site to the local Board of Education for $1, on the condition of relieving itself from
any future liability incurred because of the waste. By1978, health problems in
residents led New York state officials to evacuate 240 families from the area.
Six years later in Bhopal, India, a pesticide producing plant leaked a highly toxic
cloud of methylisocyanate (MIC) onto the densely occupied community of 800,000.
One third of the town's populations were afflicted: 100,000 people received
medical treatment and 50,000 were hospitalized. One year later the same chemical
(MIC) leaked at a plant run by the same company in Institute, West Virginia. This
incident led to a new public awareness in the U.S., heightening concerns for
community safety and health.
In response to these problems, congress created the Comprehensive
Environmental Response, Compensation and Liability Act (CERCLA) in 1980 and
the Superfund Amendments & Reauthorization Act (SARA) in 1986. The primary
provisions of CERCLA, as amended by SARA, are to:
Provide authority for clean up of abandoned or uncontrolled hazardous waste sites,
Provide emergency response to releases of leak or spills of
hazardous substances,
Provide a legal framework to identify potentially Responsible Parties (PRPs) and ensure that the responsible parties pay for the site clean up and
Establish a trust fund for clean up when no PRPs could be
identified. This trust fund is provided for by a tax on the chemical
petroleum industries.
The major provisions of SARA are the Title Ill requirements, also known as the
Emergency Planning and community Right -to-know Act (EPCR A). SARA
TitlelllIEPCRA requires manufacturers or users of certain toxic chemicals to report
the type and amount of toxic chemicals present at their facilities to EPA,
emergency response and spill control teams, and the surrounding community.
SARA stressed the importance of permanent remedies in cleaning up hazardous
material sites and encouraged greater citizen participation in making decisions on
how sites should be cleaned up. SARA also created the Agency for Toxic
substances and Disease registry (ATSDR), which increased the focus on human
health problems posed by hazardous waste sites. ATSDR established and
maintains databases of toxicological information, published information on
toxicology issues, and prepares public health assessments at superfund sites.
CERLA authorizes Federal and state agencies to investigate and clean up
hazardous waste sites, and places the liability for the clean up on the parties
responsible for contamination. Therefore, if the General Services agency acquires
a contaminated site, it could be held liable for the clean up.
TRENDS IN ENVIRONMENTAL REGULATIONS -A USA REGULATORY
HISTORY
The worldwide trend in environmental regulations can be best illustrated by the
rapid growth in USA regulations in the past 20-30 years. The world will probably
experience similar growth in regulation over a shorter time period.
PAST
The first water pollution regulation was the 1899 Rivers and Hovers Act. (Refuse
Act) in 1960 the USA Federal government has 3 environmental and safety laws on
the books. By 1970 there were 6 laws.
PRESENT
As at 1992 there were more than 20 Federal environmental and safety laws filling
thousands of pages; administered by more than 11 federal (EPA OSHA, USCG,
NRC, COE, DOT, DOC, DOI, MMS, NOAA, USFW) and more than 80 state
agencies.
. National Environmental Policy Act (NEPA) - 1969
First USA national environmental impact Statement (EIS) . Clean Air Act (ACC) - 1970
To protect, maintenance and enhance the nation's air quality
Establishment national standard for new source performance
(NSPS), prevention of signature
Deterioration (PSD), Hazardous Air Pollutants (NESHAP)
. Clean Water Act (CWA) (formerly the FWPCA) -1 972
Regulates conventional and toxic discharge to surface water Goal is US water quality suitable for fish and swimming
Establish permit programs and requirement for dealing with
Oil spills into water
. Safe Drinking Water Act (SDWA) -1 975
To protect and enhance drinking water supplies
Establishment water quality standards and maximum
Contaminant Levels for drinking water
Regulates underground injection of liquid wastes . Resource Conservation and Recovery Act (RCRA) - 197611 984
To protect and enhance drinking water supplies
Established water quality standards and maximum
Contaminant Levels for drinking water
Regulates underground injection of liquid wastes
. Resource Conservation and Recovery Act (RCRA) -1 97611 98
To provide "cradle to grave' regulation of hazardous waste
Provides some exemptions for oil and gas waste . Comprehensive Environmental Response, Compensation and
Liability Act
(CERCLAISARA) -1 98011 986
To clean up inactive hazardous waste site
Establishes planning and requirement for hazardous
Substance Spills
Requires Community Right -to Know actions
. Hazardous Material Transportation Act (HMTA) - Establishes handling and labeling requirements for material
Transport by air, rail, truck, or boat.
. Occupational Safety and Health Act (OSHA)
Regulates worker and work play safety and health
. Toxic Substances Control Act (TSCA)
Regulates the manufacturing, testing, distribution and
Disposal of toxic chemicals
Marine Protection, Research, and Sanctuaries Act (MPRS)
Protects endangered animals and wildlife
Regulates ocean dumping
. Outer Continental Shelf Lands Act (OCSLA)
Regulates all offshore oil and gas activities
. Coastal Zone Management Act (CZMA)
Regulates all coastal activities - onshore and offshore
. Oil Pollution Of 1990
Requires improvement in oil spill prevention and
Response Capabilities
. Migratory Bird Protection Act (MBPA)
Regulates the breeding habitat and hunting area of
Migratory birds.
. Federal Insecticide, Fungicide and Rodenticide Act (FIFR)
Control use of chemicals used for pest control
. Federal Land Policy and Management Act (FLPMA)
Regulates buying, selling and management of federal lands
. Nuclear regulations
Regulate use of radioactive sources (logging and
inspection tools) in oil and gas services
FUTURE
Worldwide trends in environmental regulations will likely mean more and
more countries will pass more regulations. Regulations such as those
used in the U.S.A.
. Canada and Western Europe will become common worldwide. By
planning operations to meet appropriate levels of environmental controls,
the impacts of future regulatory changes can be minimized.
CASE STUDY OF COMPENSATION PROGRAMME IN CANADA
With development comes, there is need to compensate the affected Public. This is
manifested in different ways.
The first example relates to linear development where a schedule of
payment must be made to compensate a landowner for land rights and
damages incurred in traversing a property with pipeline cable or power line.
Typically the full value of the land is paid even for an easement. Time spent
injurious affection to the remainder and damages to crops and trees must
be included. Thus total compensation = Cl+C2+C3+C4+C5+C6+C7+C8.
C l to C8 is the basic parameter used for predicting the above total
compensation. This process of compensation to an owner may involve
payment for sub surface use and access, as it is in the case for pipeline,
cables etc or for surface use for hydro lines.
Compensation is usually made early in the life of a project and for solid
relationship with land owner who typically lend the land where the facilities
are in stored increasingly, there is interest in receiving annual rentals for
linear facilities unkeeping with the rental charged to pipeline company for
the occupation of the Ontario hydro corridor through Toronto. Although
lump sum payment is most often arrival at a rental or periodic payment as
mandated by the National energy board act fits in with the principle of
sustainable development because it addresses the needs of future
generation to benefit from the installation of facilities which are virtually
perpetual.
The second example relates to the destruction of fishes habitat as detailed
in section 35 of the Canada fisheries act. Harmful habitat alteration
districting or destruction of fish habitat (HADD) requires mitigation
compensation or a cessation of development where significant negative
impact is determined to be likely. For example where nine tailings are to be
deposited or mine built where a lake or water course exist, replacement or
compensation in some often manner must be arrived at before the project
can be permitted by the department of fisheries and oceans. Drastic
reduction of habitat of course is not permitted. Thus the design of alternative
habitat involving the construction of streams and lakes may be necessary
replace that removed or negatively impacted Negotiation can be undertaken
with Government officials and reports prepared to satisfy, the habitat
replacement requirement. This pertains to any HADD, whether it is related
to the effect of a residential subdivision on stream water temperature, to
pipeline stream crossing or total destruction of lakes by tailing dams.
Measures including compensation can be negotiated with DFO so that
sustainable development is assured. Specific development impact may
result in negative effects on fish habitat such as sedimentation caused by
construction or warming of cold-water stream due to the removal of the
forest canopy. In these cases an environmental impact assessment can be
prepared which will include mitigation measure to off set negative effects.
CHAPTER THREE
MATERIALS AND METHOD
3.0 RESEARCH METHODOLOGY
To achieve an optimum research result, secondary data were collected from
environmental, land, production and community relation departments in Shell
Petroleum Development Company East, Port Harcourt. In order to acquire data
and literature on determination of already existing method of optimal
compensation, bio remediation and bioaccumulation for this study, primary data
was gathered on the SPDC fields/locations through administering of
questionnaires.
The modeling and analysis of data was done at the Remediation, Department and
Research and Development Units. SPDC East, Port Harcourt. Using a
mathematical approach. SPDC library was helpful for the acquisition of literatures
on determination of compensation on the existing cases of compensation, and
studies on bioremediation and bioaccumulation.
3.1 DATA COLLECTION, EVALUATION AND ANALYSIS
The primary data were obtained directly through personal interviews and
questionnaires from the system under study and other data were gathered
through consultation and references that the researcher made during the course
of this study. Interviews were conducted with different groups, which include
community chiefs, Shell staff and others. Analysis was only limited to
compensation paid due to spill and environmental degradation caused by Shell
Oil Company and its contractors to the affected community.
3.1 . I DATA COLLECTION
The method of determining compensation paid due to environmental degradation
was thoroughly examined. These include OPTS method and conventional method,
when to pay and how or method of payment and who collects on behalf of the
community.
3.1.2 DATA CLASSIFICATION
Compensation paid during the period of 1970 - 2002 was critically examined. Cost
related data were obtained from the different departments. These include cost of
compensation paid, cost of cleaning up and remediation, data related to
responses, repair and maintenance of pipes and equipment that causes spill and
ehironmental pollution.
3.2 SCIENTIFIC COMPENSATION MODEL
A scientific model was used for the basic comparison of the data. To be able to
determine effective optimal compensation due to environmental degradation, in
which some variables, like factors that causes pollution are known. A resulting
equation was then formulated for the study.
3.3 STATISTICAL METHOD APPLIED AND ANALYZED
The statistical method applied for accessing and predicting compensation was
graphical - statistical method of analyzing data. The graphing was plotted using
computer software package. Also the mean cost of these costs was computed.
The cost used in analysis was dollar equivalent of the status costs in Naira from
the appendixes. This is because the dollar is relatively more stable than the Naira
and therefore should produce more accurate result.
CHAPTER FOUR
RESULT AND DISCUSSION
Scientifically, it should be widely accepted that due to the disturbance of the entire
subsurface and surface user's right, that the entire environment should be
compensated to enhance sustainable development rather than only compensating
the third parties for disturbance of user's surface right.
From the finding, it was observed that the impact of oil spill is more pronounced in
soil,
Vegetation; the living organisms, fishes and aquatic lives in the water bodies due
to bio
accumulation and the entire environment than the human being living within or
around
the impacted area.
4.1 ENGINEERING APPROACHES OF COST ESTIMATION OF
COMPENSATION
t h e cost of compensation due to environmental degradation can be estimated
scientifically by quantifying the different parameters or variables of impacts of
pollution on the environment for instance, the number of fish or aquatic living
organisms destroyed, deformed or rendered unfit for human consumption, the
quality of the water, the BOD, DO and pH of the water, the nutrients of the soil
depleted and values of land as building and agricultural resources. An equation in
this form will be formulated:
Optimal compensation will be equal to addition of total compensation due to
disturbance of subsurface and surface user's right, the 5% pollution tax and the
amount paid for Ecological development damage to the federal government.
Table 4.1 shows the frequencies of the concentration of crude oil spills and the
resulting impacts on fishes, the land values and the water quality (dissolved
oxygen). The extent to which the environment is degraded by oil spills depends on
the frequency and the severity of the spills in the given area.
Table 4.1 Relationships between ImpairedlFish Kill, Value of Land, Water
Quality (DO) And The Net Volume Spill (BBLS)
Source: Department of Petroleum Resources
NET VOLUME
SPILL (BBLS)
570,000
400,000
Note: It is assumed that each net contains the value of maximum of two fishes
catch during determination of compensation by OPTS Rate.
Water Quality Standard1 Limit for dissolved oxygen is > 0.007 FEPA Standard
1991.
IMPAIRED FISH
KILL IN NETS
2,709
2,705
Fig.4.1: Shows the relationship between the water quality respect to
dissolved oxygen DO and the Net Volume Spill (BBLS). This reveals
that as the volume of spills in the water body increases, dissolved
oxygen is being removed from the water body, then the quality of the
water reduces. Furthermore, it can be observed that the dissolved
LAND VALUE
N:x 000
550,000
438,000
WATER QUALITY (DO)
(PPM)
0.001
0.003
oxygen in the water are less depleted at 0.007ppm, the reason been
that the water quality standard of dissolved oxygen limits sets in at ,
this point. (FEPA Water Quality Standard, 1991)
Fig.4.2 Shows the relationship between impaired or Fish Kill in Net and the
Net Volume Spill (BBLS). This figure also reveals that as the volume
of spill (BBLS) increases, the numbers of fish impaired or kill
increases but at a point on the graph, limits set in. The curve remain
constant and parallel to the horizontal axis, the significant is that the
rate of crude oil accumulation by fishes remain the same or constant
in the water body, there is no more further impacts of the crude oil
spill or concentration in the fishes.
Fig. 4.3 Shows the relationships between the land value depreciation cost
and the Net Volume of crude oil spill (BBLS) this reveals that land
depreciation values increases when the net volume spill impacted in
the landed area increases cost of restoring and reclaiming the land
and its values to the original shape also increases.
The figures are subjected to the frequency and severity of the spills in
the given landed area.
Finally, Figs. 4.1, 4.2, 4.3 reveals that massive discharge of crude oil into the
impacted areas results in the killing and destruction of fishes, increase in the prices
of land and reduction of water quality in the area. The results have shown that 570,
000 barrels of crude oil spill I discharge on the impacted area destroy fishes and
aquatic life that worth 2700 nets and a resulting landed value of five hundred and
fifty million Naira (N550, 000, 000) and the water quality depletion of dissolved
oxygen 0.001ppm which is far less than the World Health Organization standard I
limit of 0.007ppm.
4 .3 DERIVED EQUATION FOR COMPENSATION
(1, THIRD PARTIES COMPENSATION, CA
The Third Parties compensation is the summation of the total number of
crops, trees or structures destroyed due to oil spill and the corresponding
rates.
Where:
N i = The Number Of Crop, Tree Or Structure Destroyed; and
Ri = The Corresponding Rate.
(2) REMEDIATION EQUATION
R = (Impacted Area + Assessment I Analysis Of Soil, Water body +
Chemical
Used + Labour) X Period Or Time Of Remediating The Site
Where:
A1 and A2 = The Areas Of Soil And Water To Be Cleaned Up;
R - - Remediation Cost;
- Aso - Cost Of Analysis & Assessment Of Soil Condition Per Unit
Area; - Awo - Cost Of Analysis & Assessment Of Water body Per Unit Area;
BOD, DO, Microbes PH, etc;
- CK - Chemical Used For Remediation; - LME - Labour, Manpower & Equipment; and
t - - Period Of Remediation Before Final Closed Out (12 To 18 Months).
(3) DEPRECIATION IN RESOURCES
(i), Values of Land as a building or Agricultural resources.
(ii) Water Quality.
Land depreciates at US dollars & depreciation per year due to unit volume of spill.
If the spill is in Volume (BBLS) and the period of restoration is t.
Then: Depreciation of the cost of land including interest on the land in percentage - - diV(l + r)'
where:
r - - Interest in Percentage; and
t - - Number of Years.
Reduction in water quality is obtained in terms of Dissolved Oxygen (DO) removed.
If for every unit volume of crude oil spill into a water body a DO quantity of
Dissolved Oxygen (ppm) is removed, then the cost of deterioration = DO VCot.
Where:
Co is the cost of corresponding to a unit reduction in DO.
Total Depreciation value of resources
D - - (dt + Do+Co)Vt.. .. . .. . .. . . . . .. . .. . .. . .. . .. . .. . ..... . .. . .. . .. . .. . .. . .. . . (4.3)
C, can be evaluated as the cost of introducing I mg/l of oxygen into the body of
water.
4.4 FINAL EQUATION
Ct= C A + R + D + 0 . 0 5 a + P
Where:
CA = Third Parties / Claimant Compensation
R - - Remediation Cost
0 . 0 5 ~ ~ = User's Pollution Taxes
P - - Ecological Fund Paid To The Government
APPLICATION OF THE NEW APPROACH
Table 4.2: Shows the analysis of the cost of the derived compensation
approach.
Year I
Quantification Of Remediation In Naira For Oil Spill Sites In A Particular Year 40,142,000.00
Quantification Of Compensation Paid To Claimants In A Particular Year
Year 2
50,908,247.98
Grand Total Payment With Remediation Dollar Equivalent But The Compensation Of The Entire Environment Shall Be Quantified As C, =
C, + R + 0 . 0 5 ~ + p Dollar Equivalent Dollars Equivalent Variations Percentage Of Variation In Dollars
l~uantification Of Remediation In Naira For Oil Spill
91,050,247.98 $758,752 .07
393,595,660.38 $3,122,876.53 $2,364,124.46
75.70
Sites In A Particular Year
Quantification Of Compensation Paid To Claimants In A Particular Year
Grand Total Payment With Remediation Dollar Equivalent
But The Compensation Of The Entire Environment Shall Be Quantified As Ct = C, + R + 0 . 0 5 ~ + P
Dollar Equivalent Dollars Equivalent Variations Percentage Of Variation In Dollars
Year 3
I Quantification Of Remediation In Naira For Oil Spill Sites In A Particular Year C Quantification Of Compensation Paid To Claimants In A Particular Year
Grand Total Payment With Remediation Dollar Equivalent
But The Compensation Of The Entire Environment Shall Be Quantified As Ct = C, + R + 0 . 0 5 ~ ~ + p Dollar Equivalent Dollars Equivalent Variations Percentage Of Variation In Dollars
Year 4
Quantification Of Remediation In Naira For Oil Spill Sites In A Particular Year
Quantification Of Compensation Paid To Claimants In A Particular Year 1,273,384,336.00
Grand Total Payment With Remediation Dolhr Equivalent
But The Compensation Of The Entire Environment Shall Be Quantified As Ct =
2,277,968,400.00 $1 8,983,070.00
Dollar Equivalent Dollars Equivalent Variations Percentage Of Variation In Dollars
$45,379,100.48 $26,396,030.48
58.1 7
Year 5
Quantification Of Remediation In Naira For Oil Spill Sites In A Particular Year 838,326,395.80
Quantification Of Compensation Paid To Claimants In A Particular Year
Year 6
1,062,640,489.00
Grand.Total Payment With Remediation Dollar Equivalent
But The Compensation Of The Entire Environment Shall Be Quantified As Ct = C, + R + 0.05a + P
Dollar Equivalent Dollars Equivalent Variations Percentage Of Variation In Dollars
1,900,966,884.80 $1 5,841,390.71
2,203,512,297.20 $49,932,455.76 $34,091,065.05
68.27
Quantification Of Remediation In Naira For Oil Spill Sites In A Particular Year 702,536,372.60
Quantification Of Compensation Paid To Claimants In A Particular Year 890,516,626.40
'
Grand Total Payment With Remediation Dollar Equivalent
But The Compensation Of The Entire Environment Shall Be Quantified As Ct = C, + R + 0.05a + p
Dollar Equivalent Dollars Equivalent Variations Percentage Of Variation In Dollars
1,593,052,999.00 $1 3,275,441.66
1,895,598,411.40 $47,845,271.02 $34,569,829.36
72.25
Year 7
Quantification Of Remediation In Naira For Oil Spill Sites In A Particular Year 1,307,081 $1 8.00
Of Compensation Paid To Claimants In 1,656,822,657.00 -
Grand Total Payment With Remediation Dollar Equivalent
But The Compensation Of The Entire Environment Shall Be Quantified As Ct = C, + R + 0 . 0 5 ~ + p
Dollar Equivalent
Year 8
2,963,904,575.00 $24,699,204.79
3,266,449,987.40 $7,964,505,313.86
Dollars Equivalent Variations Percentage Of Variation In Dollars
$7,939,806,109.07 99.69
Quantification Of Remediation In Naira For Oil Spill Sites In A Particular Year 1,930,408,246.00
Quantification Of Compensation Paid To Claimants In A Particular Year 2,446,934,716.00
Grand Total Payment With Remediation Dollar Equivalent
4,377,342,962.00 $36,477,858.02
But The Compensation Of The Entire Environment Shall Be Quantified As Ct = C, + R + 0 . 0 5 ~ + P
Dollar Equivalent Dollars Equivalent Variations
4,679,888,374.40 $73,494,728.35 $37,016,870.33
l~ercentage Of Variation In Dollars 50.371
Year 9
Quantification Of Remediation In Naira For Oil Spill Sites In A Particular Year
Quantification Of Compensation Paid To Claimants In A Particular Year
Grand Total Payment With Remediation Dollar Equivalent
But The Compensation Of The Entire Environment Shall Be Quantified As Ct = C, + R + 0.05a + P
Dollar Equivalent Dollars Equivalent Variations Percentage Of Variation In Dollars
Year 10
~ u h i f i c a t i o n Of Remediation In Naira For Oil Spill Sites In A Particular Year 1,712,973,370.00
Quantification Of Compensation Paid To Claimants In A Particular Year 2,171,319,985.00
Grand Total Payment With Remediation Dollar Equivalent
But The Compensation Of The Entire Environment Shall Be Quantified As Ct =
3,884,293,355.00 $32,369,111.29
C, + R + 0.05a + p Dollar Equivalent Dollars Equivalent Variations Percentage Of Variation In Dollars
4,186,838,767.40 $2,970,997,144.09 $2,938,628,032.80
98.91
Note: 0 . 0 5 ~ ~ + p are subject to change by government policy.
The optimal compensation should reflect both disturbance o f subsurface and
surface user's right, tax paid to the state government in the area of operation and
petroleum production funds paid to the federal government as ecological
/environmental development funds.
Dollar equivalent of the compensation as at the time of research study was $31,228,76.53. This amount should be paid by the Oil Company and not $7,587,52.07 being paid only for disturbance of surface user's right. This is also to be applicable to the above analysis of the derived cost of compensation for the Ten years' environmental impacted effects.
Remediation is the removal or neutralization of a substance or material in order to
prevent, minimize or mitigate current and future human health impacts and
environmental damage. What that means is using the "best" remediation options
available based on consideration of safety, economics, feasibility, availability,
environmental results, time, regulatory requirements, and other factors.
Remediation procedures are either done in place (in-situ) or the waste is moved
elsewhere on the site for treatment (ex-situ). Treatment away from the location is
referred to as "off site".
Remediation Options for Hydrocarbon Contamination
Numerous options exist for hydrocarbon remediation. Among the more popular
techniques are:
Bioremediation
This is the process whereby soil microorganisms (bacteria & fungi) oxidize
hydrocarbon materials to carbon dioxide (CO*). This occurs as the microbes utilize
ihe hydrocarbons as a source of energy and carbon for their metabolism and
biomass. (They eat them). Bioremediation is most successful when oil and grease
levels in the soil are between 1 and 5%. To encourage this remediation process,
optimum conditions are artificially created, enhanced or maintained. Major
amendments include:
Soil aeration by tillage and addition of bulk materials (straw, hay, etc)
Fertilization with manure or commercial fertilizer to add Nitrogen and
Phosphorus. Manure also contains microbes to assist in establishing a
population.
rn Use of lime or Sulphur to control pH of soil
rn Water to maintain microbe growth.
Other considerations for bioremediation include:
Slope of the land surface to control runoff of hydrocarbons and fertilizers
rn Groundwater impacts
rn Climate (seasonal temperature, humidity, rain)
Thermal Treatment
Thermal treatments use a number of heat sources to destroy the organic
components. Heat is applied to the waste materials where water and organics are
volatilized at high temperatures (250' - 10,OOO°F). This is either a closed or open
process. In the closed process the vaporized gases are often treated to remove or
destroy the hydrocarbons. These methods can handle soils with higher oil and
grease percentage's than bioremediation. lncineration is an extreme example of
thermal treatment in that the soil is burned and all organics destroyed. In this case,
the soil is no longer useful for cultivation. Examples of thermal treatments are:
Processes leaving soils sterile of organics and microbes but still usable as topsoil:
Steam stripping
Thermal oxidation
Process leaving soils clean but only suitable as a fill material:
Incineration
Solidification, Stabilization, and Pit Closures
All of these techniques involve mixing the waste with additives to dilute and bind
the objectionable material into a solid or semi-solid form. This serves to restrict and
eliminate liquids, immobilize heavy metals, and improve the physical handling
properties of the materials. Additives used include: fly ash, kiln dust, Portland
cement, and lime. Non-hazardous oil field pits are often closed by mixing the de-
watered pit contents with the pit walls and other local materials.
Mechanical Treatments - Filtration and Centrifuqation
A physical process allowing separation of waste constituents into water, oil, and
solids. Usually as a pre-treatment for other processes.
Solvent Extraction
Organic contaminants are solubilized in solvent that is mixed with the waste
followed by separating the solvent from the wastes. The solvent is decontaminated
for reuse or recycling and the waste is recovered for recycling of further
processing.
Excavation
If bioremediation or other in-situ remediation options are not considered feasible,
contaminated soil can be excavated and treated ex-situ and disposed by
placement in a suitable landfill.
Clean up
Clean up is the final stage of remediation activities: Final cleanup should be
established before work is initiated because the environmental sensitivity of each
site can differ dramatically. It is not practical to provide a rigid set of clean up
standards for all sites. Factors such as proximity to potential receptors must be
considered at each location.
Receptors include plants, animals, human, land use, ecological value, costs etc.
The cleanup criteria for hydrocarbons in soils are evaluated using the residual oil
and grease content. The target levels can vary from ~ 1 . 0 % to about 3.0%
depending on the site and local regulations. Consistent sampling and analysis
should be insured.
Then it has been experimentally tested and analyzed and confirmed by PSE-REM
SPDC that Bio-remediation enhances and improves the fertility and quality of the
soil and water body of the impacted area within a short period of 12 to 18months
through enhancing bio-degradation of the crude oil by micro-organisms and
aeration of the soil.
Table 4.3 Shows the oil spill sites of SPDC EAST 2002
/ WEST 1 10 / 24 I 20 I 30 I
SPILL SITE
EAST
Source: PSE - REM SPDC EAST 2002
During the course of study, the following were identified: * 29,009 crude oil spill sites till date have been identified. * 38 Remediation sites of historical spills have been closed up. * 107 historical spill sites have been remediated and claim settlement
carried out. * 127 spill sites have been planned for remediation.
ACTIVE
28
CLOSED
21 2
REMEDIATED
87
PLANNED FOR REMEDIATION
97
These values are subjected to change and variation due to continued occurrence
of spills and the programme of SPDC.
CHAPTER FIVE
CONCLUSION & RECOMMMENDATIONS
5.1 CONCLUSION
The oil company has undoubtedly brought economic benefits to many of our
people, but it has left in its trail a complex mix of environmental pollution problems,
the most notable of which being oil pollution. Public policy relating to socio-
economic and environmental considerations should be the most important factors
in the continuous exploitation and utilization of our petroleum resources.
Environmental quality consideration vis a vis compensation due to damages done
to 'the environment should constitute the essential criteria in any modern policy
formulation for oil industry.
5.2 RECOMMENDATION
During the course of the study, it was observed that, the entire environment
impacted should be well compensated and remediated right from the living
organisms in the river, the water quality, soil nutrient and structures, impacted
vegetation and the third parties habitating the impacted environment for effective,
habitable and sustainable environment. The above was observed from the record
of the closed out SPDC spill site. Based on the finding of the research, a number of
recommendations are hereby presented:
* Negotiation and compensation for impacting the water resources is
necessary because of its necessity to the entire communities within the oil
and gas activities and also compensation due to losses of the basic factors
of the environment in the objectives of study paid for the next 5 to 30 years.
The oil companies should improve spill response by promoting identifying
and preventing risk based Action Area in order to reduce excessive
environmental compensation.
Oil and gas developers need to be aware of the impacts of their actions and
work with governments, communities and other organizations to minimize
the disruption of the environment. This is where allied and shareholder
relationship comes into existence.
Sustainable development of resources should be the main goals of every
group involved in oil and gas development and exploitation.
Pollution prevention plans consist of steps to identify a facility's potential
sources of pollution or contamination and methods to prevent or control
pollution.
The steps are grouped into five phases:
Planning and organization
Assessment
Implementation
Evaluation/monitoring.
A key component of pollution prevention plan is employing BEST
Management practices (BMPs) to improve water and environmental quality
and promote pollution prevention education. BMPs are designed to remove
pollutants from water and environment before they reach the waterways.
Non-structural pollution prevention Best Management Practices includes:
Preventive maintenance of pipes, pumps, storage tanks, and crude oil and
water management device ensure equipment and structures are in good
conditions and will not pollute the environment. Includes replacing worn
gaskets and valves before leaks occur and removing trash and residue from
overflowing containers and receptacles.
Routine Inspections ensure equipment, machinery, vehicles, and storage
tanks are not leaking. Includes performing routine visual inspections and
integrity tests, conducting inspections in areas prone to leaks and in
material storage, processing, and waste generation areas, and monitoring
storage tanks, dumpsters, and equipment for rust and wear.
Spill Response Planning: Establish spill prevention and clean up
procedures. Identify all potential spill areas and develop procedures for
avoiding and responding to spills should they occur for example carry out
remediation on a spill site.
Erosion Control Measures: Employ sediment and erosion control practices
in areas where soil has been disturbed, including construction and
demolition areas. Minimize erosion by maintaining planted areas and
designing landscapes to reduce the amount of soil and dirt exposed to water
runoff.
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APPENDIX
FIG 4.4: DERIVED EQUATIONS FROM THE DATA COLLECTED
SIN
1
SUMMARY OF PAYMENT SPDC EAST
DATE OF SPILL ( DATE OF 1 AMOUNT PAID I HECTARAGE PAYMENT (NAIRA) 1 NETS 27-6-91 488.156.52 17.90
5-1 -94 5-4-94 1 06,850.00 275 5-1 -94 1 7-6-94 30,000.00 3,983 2-9-94 22-1 2-94 71 9,920.00 89.990 5-1 -94 14-1 0-94 1 10,000.00 7.906 30-5-94 6-1 0-94 599,375.00 239.75n 30-5-94 21-12-94 103,560.00 12.945 2-9-94 22-1 2-94 1,854,375.00 741.25n 5-5-94 5-1 2-94 895,625.00 785.251-1 5-5-94 17-1 2-94 172,800.00 21.60 4-9-94 1 2- 1 2-94 880,000.00 352n 4-9-94 12-1 2-94 367,040.00 45.88 3 1 -3-94 1 6- 1 2-94 1,750,000.00 700 nets 5-1 1-93 16-4-94 3,022,000.00 1208.8 nets 5-1 1-93 16-4-94 1 08.500.00 15.5 2-1 -94 1 5-1 2-94 493i854.40 10.22 20-6-94 16-1 2-94 3.742. 5000. 00 1497 nets
Trace
Nockade 46 47 48 " 49 50
9 -12 -94 9 -12 -94 9 -12 -94 13-12-94 14-12-94
GRAND TOTAL
16, 000. 00 32, 000. 00 24,000.00
249,688.80 33, 6000.00
2. 0 4. 0 3.00 3.9751 1.7
50,823,129.73 21. 2855
Expanded view of Impacted soil near tien Biseni North of Kalama village 05 14' 20.19'N 006 31' 57.6" E
FIG 4.3 SHOWS THE GRAPH OF THE WATER QUALITY(DISS0LVED OXYGEN) & THE HYDROCARBON CONCENTRATION IN THE CRUDE OIL SPILL(BBLS)
--- +NET VOLUME SPILL (SBLS) 4- WA'ER QUkL1 iY (30 j 1 --
( ' f ) ; l l JPICNSA'I'IC)N ....... 1t1\'1'15S F01< IXONOR'IIC: CROPS AND '1'llli:IZS ..................... . ..-
R K C m x o ~ ~ ~ ~ w ) ~ w ... . . . ......... R Y w r s . . S C I ~ - C O ~ ~ I ~ ~ I ~ I ~ ~ I - K I ~ ON MND ACQLIKSITION
i . . . . . .
S. . . .
0. .~ .-
1 t i .
... .- .... . - .. - -.
c.;[ JINI<A COltN GS00.0011111C: SOYA 13ItANS 3900.0011-IEC . . ..... ..........
l l < l s ~ l I ? Y I ' A ' I ' O ~ S 1 4.560 .00/11 EC
... .. .......... - ........ - -- -- - - -- -- -- I G l .. J l < l J (l J C i l K l ) 1 - : I 40(100 - 2 20(!.00 4 ----- 100.00 I IAI(1)W(SOI>S, I!.. (;.
-.-...-.-. ........
M A T IY,AN'I' I-"- - - zo.00 10.00. 5.00
5.00 2.80 80.00 40.00
LOW NIANGKOV13
-.-- I'I'lChlS 1 INI'I' COY. l<A'l'l~: ( N )
..... ~- . - l:lSl I 'IXAI'S LAC1 l 20.00 - 100.00
.................. -- -. .. .- - . - MI<l'l~l< T ~ I I . , l1[i( K.:I<~SIN( i ' Il<O\ J ( ill ' lW.Aid \1Nl'l' I -
..-.....- - ..... .- ... -. - - -- -- .... Ij[JSl I l<OAIJ - GO.00 ............ ........... ...... 1;lSIl SMOKIN(i UNI ' I '
................ .......
('l,l<Al<I<l) l~l.ISl1 .................
( ' I 1 l ' ~ l ' l ~ 4 l ~ l ,I?.
.- .- Ihsctl OIL
Nc~;otiillion
.... ........ -- I%ASIII) ON VAL1 IA'I'IC (~O'l'lA'l'l( )I - - . -. .-
IIl.~I)i~NLIIN Sl%BIIMl'O~ NCE
- I3ASED ON VALIJATIOE u1'1 ATION
W l i c ~ c payll~cnl is ~nadc untlcr ilcms 1-2, rcnlnls utldcr Lhc hciltling bclow slioultl
~~ --- "I:"
M1:I blt RIJN
MIXER SQ.
<AI7IC (N) -I
- - -- -- 200-400
- 50.00
50.00
A rmmom~, TR1;ES AN1 1 CROSS I )liS'TROY L:I) A RE k:NIJMEIlA 1'I*:L) ON STCIMIJAG1l BASIS ANL) ASSBSSIiD llAS1311 ON 'HIESF RATES