The Ministry of Environmental Protection will be able to levy a fine of up to NIS 452,000 on drilling rigs, ships, or any other facility that pollutes the sea with oil, under a draft government bill that the ministry distributed today. The bill allows the ministry to expand its authority to rigs and other production facilities outside Israel's territorial waters, but within its exclusive economic zone.
On the other hand, the bill offers only a very partial solution to the risks of marine pollution from the growing offshore oil and gas drilling industry. The bill does not mention the risks of marine pollution from oil or natural gas - the main danger of offshore rigs. The maximum fine proposed by the bill is also immaterial in an industry where the cost of drilling a well can reach $150 million.
The handling of oil and gas spills from drilling and production rigs is due to regulated in the future by an environmental code being written by a joint team of the Ministry of Environmental Protection and the Ministry of Energy and Water Resources.
Oil and gas explorers are not wanting for the various codes and laws to be written. In 2012, ten oil and gas exploration wells are due to be drilling in Israel. New companies will join the field, after 13 years in which only Noble Energy Inc. (NYSE: NBL), a reputable US company, drilled wells.
The bill implements a government decision from 2008, which adopted the principles of the national marine oil pollution events readiness and response plan. The plan, based on an international convention, sets out the principles for readiness in the event of a spill, limiting the damage, and marine and coastal rehabilitation.
In response to a query by "Globes", a Ministry of Environmental Protection spokesman said that the bill would apply to rigs and production facilities beyond the border of Israel's territorial waters. He said that, on the basis of an opinion by the Ministry of Justice, the law can be applied to Israel's exclusive economic zone, even though it is not yet recognized by the UN.
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2012
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