Management of Permits and Regulatory Compliance Obligations for the East African Crude Oil Pipeline Project

Authors: Ezra Kavana

Abstract:

This article analyses the role those East African countries play in enforcing crude oil pipeline regulations. The paper finds that countries are more likely to have responsibility for enforcing these regulations if they have larger networks of gathering and transmission lines and if their citizens are more liberal and more pro-environment., Pipeline operations, transportation costs, new pipeline construction, and environmental effects are all heavily controlled. All facets of pipeline systems and the facilities connected to them are governed by statutory bodies. In order to support the project manager on such new pipeline projects, companies building and running these pipelines typically include personnel and consultants who specialize in these permitting processes. The primary permissions that can be necessary for pipelines carrying different commodities are mentioned in this paper. National, regional, and local municipalities each have their own permits. Through their right-of-way group, the contractor's project compliance leadership is typically directly responsible for obtaining those permits, which are typically obtained through government agencies. The whole list of local permits needed for a planned pipeline can only be found after a careful field investigation. A country's government regulates pipelines that are entirely within its borders. With a few exceptions, state regulations governing ratemaking and safety have been enacted to be consistent with regulatory requirements. Countries that produce a lot of energy are typically more involved in regulating pipelines than countries that produce little to no energy. To identify the proper regulatory authority, it is important to research the several government agencies that regulate pipeline transportation. Additionally, it's crucial that the scope determination of a planned project engage with a various external professional with experience in linear facilities or the company's pipeline construction and environmental professional to identify and obtain any necessary design clearances, permits, or approvals. These professionals can offer precise estimations of the costs and length of time needed to process necessary permits. Governments with a stronger energy sector, on the other hand, are less likely to take on control. However, the performance of the pipeline or national enforcement activities are unaffected significantly by whether a government has taken on control. Financial fines are the most efficient government enforcement instrument because they greatly reduce occurrences and property damage.

Keywords: crude oil, pipeline, regulatory compliance, and construction permits