Landowner Alleges Lake Kutubu Being Poisoned

Testimony from a Lake Kutubu landowner on the recent mysterious death of fish at this important biodiversity site. 

"We are now having this big problem with Exxon Mobil who runs the gas project going on in the Southern Highlands Province (SHP), mainly in Kutubu and Tari districts.

 

A contractor named Speicapag who are engaged to construct the Gas Pipeline, is now drilling underground near the lake.  And when they drilled the chemicals was washed into the lake and has killed all the fishes in the lake.

 

We are seeking international independent consultants to stand on behalf of us (Landowners) and fight against Exxon Mobil.  We advise them [Exxon] but they still denying that they are  the cause of the killing of the fishes in the lake.

 

We are trying to get someone to help as soon as possible, because of the pollution all fishes are dying now".

See also the original EMTV report:

And Exxon Mobil's response:

 

One year after fatal disaster Exxon Mobil allegations remain unanswered

Dr Kristian Lasslett* | Huffington Post

In the heart of the South Pacific is the resource rich nation of Papua New Guinea. Once lampooned by London Mayor, Boris Johnson, it is now tipped to be the region’s new ‘tiger’ economy, and investors are flocking. Even the United Kingdom is trying to build trade and investment links with its forgotten former colony.

But with the scramble for Papua New Guinea’s resources new dangers are emerging in a country whose state lacks the institutional machinery, or political inclination, to robustly oversee gas, oil and mineral operators.

Those living in the remote Tumbi area of Papua New Guinea’s rugged Southern Highlands know this all too well. It was here one year ago that a landslide swept dozens of local villagers to their death. Twelve months later, families of the victims are no closer to finding an answer to the disaster’s cause, or Exxon Mobil’s alleged involvement.

At the landslide’s epicentre was the QA1 limestone quarry run by MCJV, an Exxon Mobil subcontractor. The quarry serviced construction work for Exxon’s $19 billion liquefied natural gas (LNG) project, known locally as PNG LNG.

For villagers living near Tumbi, the quarry was always a concern. Indeed, as QA1 expanded up the mountain during 2010-11, residents raised questions over the quarry’s effect on the mountain’s geology and nearby waterways.

These questions became deafening on 24 January 2012, when the land around QA1 collapsed, producing a massive landslide that deposited three million cubic metres of debris on top of village homes.

A reporter from the national newspaper, Andrew Alphonse, captured the unfolding tragedy:

“The sound of wailing fills the air around the legendary Gigira mountain in Tari as mothers openly shed tears as they go about trying to locate their loved ones in one of the worst landslides ever recorded in Papua New Guinea. Clad in mud and weeping and wailing, the mothers are joined by other villagers, lucky to be spared by the tonnes of mud, huge limestone slabs and debris that came down suddenly on the sleeping village at the foot of the mountain.”

In the landslide’s immediate aftermath local resident, Timothy Nogobe, remarked:

“we have been living on this land for the past 6000 years this is the first time our mountain has killed us.”

Some eyes turned to Exxon Mobil. An official from the government’s National Disaster Centre (NDC), Bill Yomba, told CNN:

“we are still trying to find out the cause but at this stage we believe the gas project run by Esso Highlands Limited [Exxon's Papua New Guinea subsidiary] was a contributor because they had been digging for limestone in the area.”

Yomba’s managers were not happy – Papua New Guinea’s government has a 16.8% stake in the LNG project – and the NDC went into damage control. Several days later they released a report, heavy rain water it said caused the landslide – QA1 was not even considered. According to Reuters’ reporter, Rebekah Kebede, Exxon Mobil had “provided logistics, transport and accommodation” for the NDC investigators.

Durham University hazard expert, Professor Dave Petley, questioned the findings.

“Clearly at least a part of the quarry was lost in the landslide, so a proper discussion of whether the quarry played a role in activating these weaknesses seems essential to me”, Petley observed.

As these important questions circulated in the international media, local residents dug for their loved ones by hand. Meanwhile, just a stone’s throw away, Exxon Mobil excavators were reportedly repairing a road vital to the company’s Komo airfield worksite.

At one stage angry Tumbi villagers threatened to shut down the LNG operation. In response, the Papua New Guinea government promised an independent inquiry. It never happened. Even a memorial plaque reportedly pledged by Exxon Mobil had not materialised when I spoke to Tumbi residents in December last year.

And problems continue to beleaguer the Exxon Mobil operation. Radio New Zealand International reported last week that another “large landslide” has just occurred not far from Tumbi. Fortunately, no one was killed this time.

It seems landslides are becoming something of a reoccurring event at PNG LNG work-sites.

Back in March 2011 the project’s independent environment and social consultant (IESC) observed:

“On November 13, 2010 a mudslide occurred… The failure took place in spoil from the EPC4 top camp placed by CCJV [Exxon subcontractor] apparently without distributing the engineering drawing to all responsible parties or without undertaking a thorough assessment of engineering and environmental/social risk.”

The independent consultant concluded:

“The overall impression of the IESC is that incidents and situations have developed because the Project has circumvented correct procedures in the interest of schedule”.

I feel multiple hazards at PNG LNG are suggestive of a pattern. Accordingly, the case for an independent inquiry into the Tumbi disaster is just as strong today.

Indeed, those of us researching the landslide can’t understand official reluctance to initiate an arms-length inquiry. Were fault to be found on the part of MCJV or Exxon Mobil, compensation payments would not break the bank.

It is tempting to wonder whether there is something else an independent inquiry might reveal? Speculation will continue until a thorough investigation is conducted.

In the meantime the families of those who died at Tumbi continue to wait for answers.

Access the International State Crime Initiative’s report on the Tumbi disaster 

* Follow Dr Kristian Lasslett on Twitter: www.twitter.com/KLasslett

Australia adamant in supporting PNG LNG project

Radio New Zealand International - 23 December 2012


The Australia government says to not support the Papua New Guinean government in delevoping the liquified natural gas project would be negligent.

An Australian NGO, Jubilee Australia, says the government has put PNG at risk by investing in the multi-billion dollar project.

It says violence associated with the project could increase in coming years because of high expectations in local communities.

Australia’s parliamentary secretary for foreign affairs, Richard Marles, says Australia has to be doing everything it can to see the project succeed.

“It’s right that Australia should be there helping PNG in relation to what has the potential to be a transformational project for that country. So, it is easy to criticise these projects, at the end of the day, it’s happening, it matters greatly that it works well, and we need to be there, being the best friend that we can be and supporting that project.”

Richard Marles says Australia is supporting the project in economic terms and to make sure it pays a social dividend too.

LNG may have negative impact

By Ancilla Wrakuale: Post Courier 20 December 2012 

AN investigation report on the PNG LNG project by an NGO called Jubilee Australia has revealed that there are serious risks that revenues generated by the largest multi-billion kina gas project will not mitigate the negative economic and social impacts of the project.

“In fact it is very likely that the project will exacerbate poverty, increase corruption and lead to more violence in the country,” the report says.

The PNG LNG project is the biggest-ever resource undertaking in the history of PNG and the Pacific.

“The project is expected to generate as much as $US19 billion in tax, levy and royalty receipts to the PNG government over the 30 years that the gas will flow.

“The report is the most complete discussion to date of the potential risks and benefits of the project to the people of PNG,” the authors said.

The report highlighted circumstances, events and impacts associated with the multi-billion gas project in PNG.

Director of the Institute of the National Affairs (INA) Mr Paul Barker said the construction phase has brought major inflows of jobs and activities to both local and overseas businesses.

However, he said as the construction phase winds down, there will be few jobs offered by the project to less than 1000 jobs as the project goes into the production phase in 2014.

“Once LNG is in production it will provide few jobs, so the benefits depends on how well national and provincial governments and landowners invest and utilise their funds,” Mr Barker said.

“If they’re wasted through inefficient management, corruption etc, then the opportunity will have been lost, and the whole venture will end up with a negative gain for PNG. If it uses these funds efficiently, there is a good chance there could be solid net gains for the country.

“The trouble is that PNG’s track record with money has been poor. In the 1990s the then ‘minerals boom’ encouraged loose expenditure, boom and bust, with a series of structural adjustment programs to try and put the economy back on a solid footing,” Mr Barker said.

Meanwhile, there are also concerns that the LNG project is also having an impact on agricultural commodities with the appreciation of the PGK on the global market.

Executive director of the PNG Palm Oil Council Mr Ian Orrell said one of the impacts of the county’s booming extractive sector, as we have already seen, is an appreciation of the PGK that has affected the export of agricultural products,” he said.

“This has already had a very significant negative impact on the country's agricultural export crops.

“The two most dominant factors affecting the price we get for export crops are the global commodity price and the value of the PGK against the currency the commodity is traded in on the world market".

We have seen this movie before!!

Yesterday Jubilee Australia released a damning report on PNG LNG. Its findings echo the experience of Chad-Cameroon with ExxonMobil. Why didn't PNG's leaders conduct due diligence into Exxon before getting into bed with them! Now it is the people of PNG who are going to pay. 

Compare Chad-Cameroon findings:

"When the Chad-Cameroon  Oil and Pipeline Project was officially inaugurated in 2003, the World Bank explained its rationale for supporting the project: 'There are two essential reasons for World Bank Group involvement: The first is to help ensure that Chad's oil money is used for the well-being of all Chadians, particularly the poor…. The second reason is that World Bank Group involvement has helped ensure that the Bank Group's rigorous safeguard policies were observed in order to implement the project in an environmentally and socially sound manner.'

Despite the World Bank Group's unprecedented efforts, it has failed on both counts. The social and environmental situation in Chad has not improved. In fact, there is evidence (some reflected in World Bank statements and official reports) that things are worse. The project appears to have fueled violence, impoverished people in the oil fields and along the pipeline route, exacerbated the pressures on indigenous peoples and created new environmental problems. Meanwhile ExxonMobil, the leader of the oil consortium and the world's largest oil company, is registering record profits".

http://apps.edf.org/documents/6282_ChadCameroon-Non-Completion.pdf


With PNG LNG Findings:

"This Report is the most complete discussion to date of the potential risks and benefits of the Project to the people of PNG; it argues that, contrary to the official discourse, there are serious risks that the revenues generated by the project will not mitigate the negative economic and social impacts of the Project. In fact, it is very likely that the Project will exacerbate poverty, increase corruption and lead to more violence in the country".

http://www.jubileeaustralia.org/LiteratureRetrieve.aspx?ID=112463 (3576 KB)

PIPE DREAMS: The PNG LNG Project and the future hopes of a nation

This investigative report by Jubilee Australia highlights circumstances, events and impacts associated with Exxon Mobil’s US $19 billion Gas Project in Papua New Guinea’s (PNG) Southern Highlands.

The PNG LNG Project is the largest single development in the history of Papua New Guinea, and the Pacific. The Project will see ExxonMobil and its joint venture partners, Oil Search, Santos, JX Nippon Oil and Energy, and the PNG Government, arrange for the extraction of the large gas resources deep underground in the country’s Southern Highlands, and their shipment by pipeline from the newly-created Hela Province, to Caution Bay near Port Moresby, where they will be liquefied and sold to energy-hungry buyers in East Asia. The Project is expected to generate as much as $US 30 billion in tax, levy and royalty receipts to the PNG Government over the 30 years that the gas will flow.

This Report is the most complete discussion to date of the potential risks and benefits of the Project to the people of PNG; it argues that, contrary to the official discourse, there are serious risks that the revenues generated by the project will not mitigate the negative economic and social impacts of the Project. In fact, it is very likely that the Project will exacerbate poverty, increase corruption and lead to more violence in the country.

Pipe Dreams also discusses the nature and the implications of the Australian Government’s financial and institutional support of the PNG LNG Project, continuing Jubilee Australia’s investigation of Australia’s export credit arrangements first revealed in the 2009 report, Risky Business.

Jubilee Australia (2012) PIPE DREAMS: The PNG LNG Project and the future hopes of a nation (3576 KB)

Warning on fraud in PNG gas project

Richard Baker - Sydney Morning Herald, 12/12/2012

THE economic benefit of Papua New Guinea's biggest natural resources project has been questioned, with a report warning that ordinary citizens risk missing out because of corruption and contracts that favour the lead proponent, ExxonMobil.

A report by anti-poverty group Jubilee Australia, to be released Wednesday, examines the predicted economic benefit of PNG's liquefied natural gas project and the Australian government's provision of $500 million towards it.

The report highlights endemic corruption in PNG and warns that a government sovereign wealth fund and other official bodies established to handle billions of dollars in revenues could be defrauded.

''The governance and public life of PNG are to this day beset by political intrigue, self-interest of politicians and gross misuse of public funds,'' the report warns.

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Scheduled to begin production in 2014, the LNG project is valued at $22 billion and predicted to double PNG's gross domestic product.

Australian companies Santos and Oil Search are prominent players in the joint venture project led by US giant ExxonMobil.

The report by Jubilee Australia - whose supporters include World Vision and the National Coalition of Churches - includes allegations that the PNG government was ''pressured into the signing'' of agreements by the joint-venture companies.

Former PNG attorney-general Allan Marat is quoted in the report as saying he and his office had less than 24 hours to analyse a 200-page agreement before determining whether it was in the best interests of his country. ''This gas agreement was drawn up overseas. It was taken away from our government negotiating team and structured overseas. 

And, we are now forced to dance to the music of foreigners,'' he said.

In response to questions from Jubilee Australia, ExxonMobil disputed the claims and argued that the fast negotiations could be explained by the fact the PNG government relied on many of the same fiscal terms as previously agreed to in a defunct 2006 proposal.

The report found mixed economic benefits for PNG people as a result of the massive investments already being made for the project.

It stated that although PNG citizens fortunate enough to have been directly employed by the project had reported that their livelihoods had improved, there was a strong view that ''an educated and well-connected elite'' had captured most of the benefits.

Using the results of a 2011 study by New Zealand's University of Otago, the report found the project was also leading to increased tensions among landowners in the PNG southern highlands and a phenomenon known as ''bride price'', where the groom's family makes a payment to the bride's family.

The expectations created by the perceived extra wealth being directed into local communities was increasing this price, making ''it more difficult for many young men to marry''.

The report also highlighted an increase in ''destructive social practices'', with the influx of temporary workers and money leading to more gambling, prostitution, drug and alcohol abuse problems.

Increasing environmental incidents have also been noted. The most recent was a January mudslide at a quarry that killed at least 26 people, mainly migrant workers. The quarry had been used by a company working on the project until mid-2011.

The Australian government's decision to contribute a $500 million loan to help the financing of the project has also been criticised in the report. The loan by Australia's Export Finance and Insurance Corporation was made on the basis that 

Australian equity in the project was about 43 per cent and there was $1.5 billion of procurement contracts available to Australian firms.

EFIC used what is known as ''the national interest account'' to fund 80 per cent of the loan. As such, nearly all the documents it holds on the assessment process for the PNG loan are exempt from freedom-of-information scrutiny.

http://www.smh.com.au/business/warning-on-fraud-in-png-gas-project-20121211-2b7p3.html