1 Algemene Rekenkamer | Postbus 20015 | 2500 EA Den Haag Extractive industries, safety and the NCA Presentation at 2 nd WGEI meeting in Oslo 21 September.

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<p>PowerPoint-presentatie</p> <p>Extractive industries, safety and the NCA</p> <p>Presentation at 2nd WGEI meeting in Oslo21 September 2015nr.Algemene Rekenkamer | Postbus 20015 | 2500 EA Den Haagnr.1Extractive industries in The NetherlandsDutch natural resources and NCAs workThe wake up callSetup and results of national risk analysisThe way ahead</p> <p>Extractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.2</p> <p>The Dutch natural resources</p> <p>Extractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.3Our audit focus until 2014Until recently NCA focused for extractive industries on:Spending gas revenues Security of energy supplies (natural gas, electricity and energy savings)</p> <p>Extractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslo</p> <p>nr.4Position NCA: systems approach</p> <p>Extractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in OsloParliamentnr.5Dutch gas value chainExecutiveConsultingSupervising</p> <p>Extractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.6The wake up call: earthquakes and damageExtractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslo</p> <p>nr.7Responses to the wake up callNational levelGas production restricted Special government service established</p> <p>Netherlands Court of Audit levelWGEI membershipRisk analysis focused on extractive industriesExtractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.8NCA Risk analysis with externality approachProblem of externalitiesEconomic definition of externalitiesNot included in price or investment decisions &gt; loss of prosperity and well being for current and future generations</p> <p>Experimental approachIdentifying externalities along production chain </p> <p>ExplorationAfter miningProductionExtractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.9Risk analysis matrixLife cycleRisk componentIdentified riskProbabilityImpactRisk mitigatedRest risk in the NetherlandsExplorationDirectHigh/medium/lowHigh/Medium/lowHigh/Medium/lowIndirect short termIndirect long term</p> <p>Production DirectIndirect short termIndirect long termAfter miningRiskExtractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.10ExampleLife cycleRisk componentIdentified riskProbabilityImpactRisk mitigatedRest risk in the NetherlandsAfter miningRiskSafetyCollapse of buildings and areaMediumMediumA strict monitoring regime applies. However, Dutch Safety Board points out that there are unknown risks are inherent in a large-scale multi-year operation and that there is lack of integral, independent scientific knowledge of the deep substratum and mechanisms at work. Medium. Collapse did not happen yet, but damage did occurExtractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.Risks identified with EI risk analysis Most risks mitigated with systems checks and balancesTwo significant risks emergedNeglect of safety considerationsAfter mining policy not sufficient </p> <p>Extractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.12The wake up call confirmedCritical report Dutch Safety Board (Februari 2015)Central question: role of safety citizens embedded adequately in decision making process?</p> <p>Main conclusions: Safety not embedded as seperate public interestNeglect of uncertainties &gt; fragmented knowledgePoor communication with population affectedExtractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.13Risks identified with EI risk analysis Two significant risks emergedNeglect of safety considerationsAfter mining policy not sufficient </p> <p>Preliminary conclusion:Both risks on political agendaToo early for intervention by NCA &gt; reconsider in few yearsExtractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.14Current actions NCA Monitoring activities governmentDistribution of risk matrix within EUROSAIExtractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.15Take away messagesExternality approach usefulEI risks manifest on long term (even after finishing production)Extractive industries, safety and the NCA | 21 September 2015 | 2nd WGEI meeting in Oslonr.www.rekenkamer.nl</p> <p>@rekenkamer</p> <p>www.linkedin.com/company/algemene-rekenkamer</p> <p>nr.Algemene Rekenkamer | Postbus 20015 | 2500 EA Den Haagnr.</p> <p>nr.Parties involved in exploitation of Dutch natural gas</p> <p>Dutch Safety BoardNCAnr.Several parties involvedSafety not identified nor embedded as specific public interestFact: in practice just ten people called the shots19</p>

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