SEISMIC SURVEY IN ROMANIA - Petroleum Club · Seismic surveys and the ambiguities of the legislative ... geophysical data acquisition for ... geophysical data processing and interpretation,

Discovering the Earth's Resources

www.prospectiuni.com

SEISMIC SURVEY IN ROMANIA

in the actual legislative, economic and political context



Contents

1. About PROSPECTIUNI SA

2. The seismic survey purpose

3. The seismic survey impact in the actual context

4. Seismic surveys and the ambiguities of the legislative framework

5. Conclusions

p. 2


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ABOUT PROSPECTIUNI SA

• More than 65 years of activity in Romania and abroad.

• Wide range of services: geophysical data acquisition for oil and gas, minerals and groundwater, well

logging, geophysical data processing and interpretation, geological survey, complex geological and

geophysical studies, analysis and tests in geo-chemical laboratory.

• PROSPECTIUNI participates at the almost discovery of the oil and gas reserves in Romania.

• International operations since 1970 in: Libya, Algeria, Syria, Morocco, Iran, Republic Moldova, Georgia,

Tajikistan, Senegal, Bulgaria, Portugal, Albania, mainly seismic data acquisition.

• During this period of time, were covered about 450.000 km with 2D seismic data acquisition and about

15.000 km² with 3D seismic data acquisition.

PROSPECTIUNI SA is a landmark in the Romanian geological and geophysical surveys



Seismic survey highlights the geological structure of an area, alternations of

geologic layers, their depths and shapes, but not the deposit type

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Main method in identifying geological structures that may contain oil and gas

After processing and interpretation of raw seismic data, the results

are integrated with other available geological and geophysical data,

and is obtained the information on the hydrocarbon potential of an

area.

The method and technologies used are the same, regardless of the objective

pursued by the oil company that concession the block

THE SEISMIC SURVEY PURPOSE


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The method is widely used in industry due to its

advantages:

- Is fast,

- Not expensive,

- Covers a large area,

- Available on any type of terrain,

- Environmental friendly.

THE SEISMIC SURVEY



The impact of seismic survey on the environment and the community is limited.

• The works involve passing on lands with ground equipment.

p. 6

THE SEISMIC SURVEY IMPACT

• The owner or the user of the land continues to be its owner or user.

• The surveyed areas are unavailable for a short period of time, about 24 to

48 hours. This does not change the category of terrain.

• Seismic surveys temporarily affect, at most, the right to effectively use the

respective land, but not the ownership (possession).

• Damages are limited to crop damage, for which compensation is paid

to land user.

http://www.google.ro/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=IGZwIwyzUQwM-M&tbnid=HZ4RkM0o1aYVgM:&ved=0CAUQjRw&url=http://constanta.ro/pericol-de-explozie-chevron-prospecteaza-gazele-de-sist-prin-detonari-controlate/&ei=qwdZU5PFO8jcOevLgPgO&bvm=bv.65397613,d.d2k&psig=AFQjCNGtBNR_EIMGAQRlLcJv4CIjhOB-kA&ust=1398429985930878



TRACES LEFT BY HEAVIEST EQUIPMENT

October October



AFTER SURVEYS FINALIZATION

January June


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THE SEISMIC SURVEY IMPACT

Before 1990, the state was involved in all oil operations, directly through state companies; and the local

administrations and communities facilitated the works progress.

After mid-2013, the operations in the oil industry, including seismic survey, were perceived as a threat to the

local communities safety.

Why?

From 1990 to 2012, although the legal frame, the operators status and the legal regime of lands have changed, the

authorities and local community continued to accept without problems the survey operations on lands, including the

seismic acquisition.



THE SOCIOLOGICAL, ECONOMICAL AND POLITICAL CONTEXT

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Factors that caused the change

Public debates on “shale gas” at European level

NGO’s and the media

Using issues of oil industry in the political struggle, at local and

central level

Lack of firm position, based on scientific arguments, from the authorities (NAMR, Government, etc.)

Lack of decision and involvement of politicians in developing a “strategy in energy”

Ambiguous legislation that does not cover with clear regulations all aspects of seismic survey



Legal framework regulating the seismic operations:

• Romanian Constitution - the state regulates the ownership of the subsoil resources

• Petroleum Law 238/2004 - states that "oil resources are public property and belong exclusively to the

Romanian state“, designates NAMR as "competent authority representing the state's interests in the field of oil

and gas resources" and regulates the access to lands on which oil operations are developed and the

relationship with landowners (art. 7 and art. 8)

• Environmental legislation: HG 445/ 2009, Order 135/2010 for evaluation of environmental impact,

OUG no. 57/2007 on the regime of protected areas, Order MMP no. 19/2010

• Law no. 50/1991 authorizing execution of constructions

• Law no. 46/ 2008 Forestry Code

• Law no. 7/1996 Cadastrial and Land Registration

p. 11

LEGISLATIVE FRAMEWORK



LEGISLATIVE AMBIGUITY

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ROMANIAN CONSTITUTION (art. 44, art. 136)

- Specifies private property limits in case of general interest works, noting that

"public authority can use the subsoil of any real estate with the obligation to

indemnify the owner for damage to soil, crops or buildings, as well as for other

damages imputable to these authorities.“

- States that "compensations ... are agreed with the owner or, in case of

divergence, in the Court".




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Law no. 238/2004 - Petroleum Law

• Petroleum Law grants to state the legal servitude right, which limits the

right to private property, in order to achieve works of general interest.

Access to the lands affected by the legal servitude right shall be

determined by negotiations between landowners and holder of petroleum

concession (Article 7 and 8).

• The holder of the petroleum concession must inform the land owners about the operations that will follow on

lands. The way of delivery this information is unclear: it should be public or individual? Individual information and

formalities for land access from each owner is expensive and time consuming for the company, and also seems

complicated to owners, who become fearful and are trying to protect themselves refusing to sign any document.

• Petroleum Law does not take into account the lack of cadaster and the difficulties of identifying the owners.



Law fails to resolve the major difficulties related to identifying the owners and

tenants, in order to comply with the legal requirements of Petroleum Law:

• only about 12% of the country surface has updated cadaster plans.

"Parceling plans " are not updated.

• even when "cadastral plans" and "parceling plans“ exist, the legislation does

not specify the way of access to these maps; also, the access to owners

identification data is restricted.


14

To avoid bureaucracy and taxes, many landowners do not legalize the

real estate transactions, inheritances or lease of land.

Law 7/1996 – Law of Cadaster and Land Registration



• Law no. 50/1991 stipulates obtaining the "building permit" for "drilling and excavation necessary for geotechnical

studies, surveying, mining quarries, gravel pits, gas and oil wells and other exploitations.“

• Works such as "drilling and geotechnical soundings for construction of normal or low importance" are exempted

from getting "building permit".

• It is hard to understand why seismic "drilling", not exceeding 10 m depth and 6 cm in diameter, is not included

to be exempt from getting “building permit".


15

LAW no. 50/1991 Law authorizing the execution of constructions



• Unfortunately, in the evaluation phase, environmental legislation does not distinguish between works after

which result /or not result constructions (permanent or temporary), which require a "certificate of urbanism" and

asks for both situations to forward the "Certificate of urbanism“, beside the "Notification".


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• Environmental legislation provides the evaluation of public project to determine if they have or not significant

environmental impact and establishes the need for an environmental permit, according to GD 445/2009.

*HG 445/ 2009 , Order 135/2010, OUG nr. 57/2007, Order MMP nr. 19/2010

**MDRAP - Ministry of Regional Development and Public Administration

Environmental Laws*

• This stage is resumed for each project, which is time consuming (from 30 days to 6 months, if the work

area include protected areas "Natura 2000" or the projects cover several counties) and additional costs that

can become very large if you reach the stage of "appropriate assessment".

• Going through this stage is hard, even if in 2014 MDRAP ** analyzed and accepted that geophysical data

acquisition are not subject to Law 50/1991. Changes in legislation have not produced yet.



LAW no. 46/ 2008 – Forestry Code

• carrying out activities in forest is only allowed by enclosing this activity to "temporary occupancy" or "permanent

removal" of that land from forestry;

• acquisition of geophysical data, one of the first phases of the exploration stage, is assimilated to "works of

exploration and exploitation" (Article 37, paragraph 1, section a), which requires additional time and costs to obtain

agreements from owners and pay taxes to ROMSILVA.


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• The permitting becomes complicated and excessively long; the considerable increase of

administrative and compliance costs.

CONSEQUENCES FOR SEISMIC SURVEY

19

• Bad image in relations with authorities and communities, generated by the impression that

compliance with legal requirements is avoided.

• Customers can accuse us of putting in danger the programs implementation, programs which

they agreed with the NAMR through "oil agreements".

• Risk of exploration completion delay, after the agreed terms.



CONCLUSIONS

Romanian legislation in the oil sector is good, modern, in accordance with current European legislation.

Unfortunately, the legislation contains ambiguities which leave room for interpretation. The authorities entitled to apply

the law have different interpretations according their own understanding.

At this time, any owner, lessee, association or NGO may stop the exploration works by contesting authorities' decisions

or the procedures applied.

Efficient running of seismic data acquisition requires legislation revision for:

• providing unrestricted access to land for seismic acquisition operations, damage compensation being paid

at works completion

• compensation should be directed to relevant land owner or user, as applicable

• removing the obligation to pay a "rent" to landowner, because the land is not occupied and does not

change land use category as a result of seismic operations

• authorities' involvement during exploration, especially in the stage of local community information

• simplify and clarify the procedures in order to help the territorial agencies and local authorities to put in

place the legal provisions, to avoid situations where similar cases have led to different decisions

• state involvement through its representatives (NARM mainly) in establishing a National Strategy for

natural resources and clearly establish the concession holders' obligations regarding information campaigns

among the population.



Thank you!

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SEISMIC SURVEY IN ROMANIA - Petroleum Club · Seismic surveys and the ambiguities of the legislative ... geophysical data acquisition for ... geophysical data processing and interpretation,