ENVIRONMENTAL POLLUTION AND COMPENSATION IN NIGERIA PETROLEUM INDUSTRY: ADOPTING INTERNATIONAL BEST STANDARD



A RESEARCH PROJECT SUBMITTED TO THE FACULTY OF LAW
IN PARTIAL FULFILLMENT FOR THE AWARD OF BACHELOR OF LAW’S DEGREE L.L.B.

Abstract
It is no doubt that oil industry is the biggest resource manager in the anal of Nigeria economy. It is true that the oil industry is one of the international industries where different countries of the world relate communally. However, the thunderous benefit derivable from this natural gift (oil) cannot at any time quieting the dangers inherent in its manipulation and exploitation. “ perhaps, a threat to nature is a direct threat to life” furthermore, the most outrageous damage caused to land, air and water in the world over and  Nigeria in particular has been linked to oil pollution.
For instance, the cases of Niger Delta region of Nigeria, where the inhabitants are mainly farmers, count their losses virtually on daily bases. This monster, called oil pollution destroys oil fertility thereby making the land unfit for crops production. Cause and foul the waters to the detriment of marine lives. Consequently, when these disasters occur, it is expected that the victims should adequately compensated.[1] But unfortunately the avalanche of petroleum laws and environmental laws in Nigeria, seemed to be silent over what constitutes adequate compensation as contained in the law. This research work therefore evaluates these situations and tried to provide solutions to the question raised therein. Chapter one of the work introduces the work generally. The legal framework for control of oil pollution is tackled in chapter two while chapter three handles the concept of oil pollution and its hazardous effect on the environment and chapter four evaluate liability and compensation for oil pollution and finally chapter five settles conclusion recommendation and bibliography.  


TABLE OF CONTENT
Title page       ……………………………………………………..……………i
Certification-            ……………………………………………………..…… ii
Approval page          ……………………………………………………..…….iii
Dedication-……………………………………………………..………………iv
Acknowledgements……………………………………………………..………v
Table of Content      ……………………………………………………..……vi-viii
Table of Cases          ……………………………………………………..… …ix  -x
Table of Statue                     …………………………………………………….xi-xii
List of Abbreviation            ……………………………………………………xiii-xiv         
Abstract         ………..……………………………………………………..…xv
CHAPTER ONE
GENERAL INTRODUCTION
1.1             Background of the Study……………………………………………………..… 1
1.2             Statement of Problem…………………………………………………………….6
1.3             Objective of the study……………………………………………………………8
1.4             Research questions………………………………………………………………..9
1.5             Relevance of the Study…………………………………………………………..10
1.6             Scope of the study………………………………………………………………..11
1.7             Limitation of the study………………………………………………………….12
1.8             Methodology for the study……………………………………………………….13
CHAPTER TWO

THE CONCEPT OF OIL POLLUTION AND ITS HAZARDOUS EFFECT ON THE ENVIRONMENT
2.1   Historical survey of Oil Exploration and Exploration in Nigeria since 1956. ………………………………………………………..… ………………………………15
2.2       The impact of Oil and Industrial Polluting on the World Environment and
Nigeria Environment in particular………………………………………….. 19  
2.3       The Concept of Oil Pollution Damage ……………………………..………..22
2.3.1   Land Pollution……………………………………………………..…………..23
2.3.2   Air Pollution……………………………………………………..……………..24
2.3.3   Water Pollution……………………………………………………..………….25
2.4       Oil Spillage cum gas flaring …………………………………………………27
2.4.1   Oil Spillage……………………………………………………..……………27
2.4.2   Gas Flaring……………………………………………………..…………….28
2.5       The People of Niger Delta and Environmental fouling………………………29
CHAPTER THREE
NIGERIA LEGAL REGIME ON CONTROL OF PETROLEUM POLLUTION:  A COMPARATIVE ANALYSIS OF THE JURISDICTION
31        Local legislations and decrees on control of oil pollution in Nigeria……. 32
3.2.      International Convention on the Establishment of an International
Convention on the Establishment of an International Fund for Compensation
for Oil Pollution Damage 1971…………………………………………. ..40
3.2.1   International Convention for the prevention of the sea by oil……….. 43
3.2 International Regulatory Bodies for Control and prevention of oil
      pollution…………………………………………………………………44
3.3       Oil pollution laws of other jurisdiction ……………………………..…..46
3.4   The challenges of Court Jurisdiction on Oil Pollution in Nigeria ……….……48  

CHAPTER FOUR
AN EVALUATION OF LIABILITY AND COMPENSATION FOR OIL POLLUTION DAMAGE IN NIGERIA
4.1.      Liabilities for oil pollution…………………………………………………..… 51
4.1.2   Civil Liability for oil pollution ………………………………………………. ..52
4.2       Nature of  Defences for oil pollution damage ……………………………….….54
4.3       The Victims legal rights over oil and Industrial Pollution……………………61
4.4       Compliance to International Standard Quantum of Compensation for Oil
Pollution damage ……………………………………………………..……. 65
4.5       Alternative Dispute Resolution (A.D.R.) as an Alternate to litigation ……68
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
5.1       Observations ……………………………………………………..……..72
5.2       Recommendations…………………………………………………….. 77
5.3       Conclusion……………………………………………………..………. 85

TABLES OF CASES
Allar iron V. Shell BP [2012] unreported suit No. w/89/71190. Available at http//:www.vathek.org/.enlr.2012.14.4348, accessed on 10th July, 2013………60

Amodu Tijani V. The Secretary of Southern Province [1921] available at http//:www.Nigeria-Law.org/Amodu%2520Tijani Accessed on 4th July, 2013…62

Attorney General of Bendel State & Ors V. Adeyan [1989] SC 131……………………63

Birmingham City Corporation V. West Midland Baptist (Trust) Association Inc. [1969]3 All E.K. (pt. 172) page 185………………………………………………………61

Braithwaite V. Sky Bank Plc. [2012] CLR 12 (e) SC…………………………………32

Chief A. S. Amos & Ors V. Shell BP D.C.N Ltd [1977]6 SC (Pt. 109) 114………53,72

Chief Otoko V. S.P.D.C (Nig) Ltd [1990]6 NWLR (Pt. 159)  693………………….27

Douglas V. Shell BP & 5 Ors [1994]6 NWLR (Pt. 350) 256………………………...53
Friday Akpanu V. Shall  [2013] Published on http/./www. recht  speak . nl under no LDN  BM 1469 visited on 14/12/2012. ……………………………………………..4, 55

Hallelujah Bukuma Fishers Development Co. (Nig) Ltd V. SPDC (Nig) Ltd [2002]4 NWLR (Pt. 758) 505……………………………………………………………..64

Lewis V. Bankole [1909]1 NLR, 81…………………………………………………..16

Machine Umudje V. Shell BP D. C. (Nig) Ltd [1975]11 SC (Pt. 155) 160 &167…………………………………………………………….21,23,24,27,73,75

Mardraj V. Texaco Trinidad Inc. [1969]15 West Indian Reports (WIR) 251……….76

National Oil Spill V. PPMC [2012] unreported suit No. FHC/ASB/18/105/10……23

Niger Delta Farmers & Ors V. Shell BP [2013] available at www.sahareporters.com>Home>News & Reports, accessed on 14/07/2013,…3, 21, 44

Odim & Ors V. SPDC (Nig) Ltd [1974]2 R.S.L.R (pt. 93) page 109……………….59,69

Onyori & Ors V. S.P.D.C (Nig) Ltd & Ors [1982] unreported suit No. FCA/B/1/81 of 7th Dec. 1982…………………………………………………………………………27

Ports & Cargo Handling Services Co. Ltd & Ors V. Migfo (Nig Ltd & Ano [2009]11..70
NWLR CA/L/214m/07.
Raithwaite V  Skye Bank Plc  [ 2012] CLR  12 (e) (sc)…………………………………49

Re oil spill [2012] unreported suit No. 10.02179/WL6652608/2012 C.E.D.La. Dec. 21st,
2012. Available at http/./www.blog.Thomsoreuters.com/indes.php/j accessed on
07/07/2013……………………………………………………………………………..67

Ryland V. Fletcher [1866] L.R.I Exch. 265………………………………….…21, 49, 52

S.L.B Consortium v V. NNPC [2011]9 NWLR (pt 1252) page 317 SC……………..49

S.P.D.C  V. Isaih [1997]6 NWLR (Pt. 508)  236…………………………………48,49

S.P.D.C V. Tiebovii  [ 1982] unreported suit No: FCA /B/1/8 of 7/12/82 ……….26

San Ikpede V. SPDC (Nig) Ltd [1973] M.W.S.J. (Pt. 61)  88 ………………26,52,56,76

Seismograph Services (Nig) ltd V. Esis Akororo [1974]6 SC 124…………………….31

Williams V. Kamon [1968]1 All NLR (Pt 399)406 ………………………………….60

TABLE OF STATUTE

American Oil Pollution Act (O.P.A)……………………..46, 47

Association Gas Re-injection Act Cap. A25, Laws of the Federal Republic of Nigeria
(L.F.N),………………………………………………………29,36,47

Constitution (Suspension and Modification), Decree…………..46

Constitution of the Federal Republic of Nigeria 1999 (as amended)……48, 49, 62,73

Criminal Code Act, Cap. C38 L.F.N., 2010……………………………..25, 54, 62, 63

Evidence Act, 2010. Cap. E 14 LFN 2010 …………………………..62, 64

Federal Environmental Protection Act (FEPA) Cap. F10 L.F.N, 2010. ……8, 39,53,55, 72,75

Land use Act, 1978. Cap. L5  LFN 2010……………………………..63

Oil in Navigable Waters Act Cap 06 L.F.N, 2010…………………..5, 27,32,54,

Oil Pipeline Act Cap. 145, L.F.N……………………………………..38,55,56,57

Petroleum (Drilling & Production) Regulation 1969…………………… 1,2

Petroleum Act Cap. P10 L.F.N……………………………………………51,55,60

Petroleum profit Tax Act Cap. 354 L.F.N……………………………………..17

INTERNATIONAL CONVENTIONS
Conference of the Committee Maritime International (C.M.I 1994.  ……………..64, 65
International Convention for the Prevention of Pollution from ship (MARPO 1973. …46,
International Convention for the Prevention of the Sea by oil.  ………………………...43
International Convention on Oil Pollution preparedness, Response and Co-operation
(I.C.O.P.P.R.C 1990……………………………………………………………45, 67,73
International Convention on the Establishment of an International Fund for Compensation for oil Pollution Damage 1971…………………………………40

LIST OF ABBREVIATION
FEPA                          Federal Environmental protection Agency -8, 39,55,68,72,75
LFN                            Laws of the Federation of Nigeria –25,32,36,38,39,51,56,
59, 60, 62.
IRBCPOP                  International Regulatory Bodies for Control and Prevention
of Oil Pollution Act  -40.
CWA                          Clean Water Act- 47
SPDC                          Shell Petroleum Development Company -24, 26, 27, 48, 49,
64, 76.
IMB                            International Marketing Board
NNPC                         Nigeria National Petroleum Commission -18, 49, 79,83
OPEC              Organization of Petroleum Exporting Countries – 17,
                                    PSC  Production Sharing Contract -18
PPMC                         Pipe lines and production marketing Company -23
MOSOP                      Movement for the Survival of Ogony people -30
CNA                           Clean Nigeria Association -31
MWSJ                        Midd Western States Judgments -26 , 52, 56, 76
JSC                             Justice of  the Supreme Court -64
ADR                           A Hernative Disput Resolution – 65, 68 69, 70, 71, 76, 83, 84,
86.
UN                              United Nation – 65
CMI                            Committee of Maritime International -66  
US                               United State – 18
CAJ                             Appeal Court Justice
WWW                        World Wide Web     -3, 18, 19, 23, 29, 30,  60, 62, 65, 73, 74.
NOSDRA                   National Oil Spill Detection Response  Agency -80
EIA                             Environmental Impact Assessment -83
NWLR                        Nigeria Weekly Law Report – 16, 27, 31, 48, 49, 53, 70.
FWLR             Federal Weekly Law Report
FRN                            Federal Republic of Nigeria -62
SC                               Supreme Court -21, 53, 64, 75
JSC                             Justice of the Supreme Court
WIR                            West Indian Report -76
                                    Internal Maritime Organization 45, 73


[1] Section 11 (5) of the oil pipeline Act, Cap 145, law of the Federation of Nigeria 2010.


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