Social Accountability

Mechanism

SOCIAL ACCOUNTABILITY MODEL Community Score Card : Environmental and CSR Aspects Assessment on

JOB Pertamina-Petrochina East Java (PPEJ) in Bojonegoro

Maryati Abdullah

Program Manager Extractive Industries Governance Reform-PATTIRO

maryati@pattiro.org

Background & Objective

Good mining practices obligate the

company to apply environmental and

social standard in its activities

Society and stakeholders neighboring

the mine are the most environmentally

and socially impacted parties from the

oil & gas mining activities.

Assessment from the stakeholders is

important to provide input in improving

the environmental and social aspects of

oil and gas mining in Bojonegoro

Community Scorecard

Scorecard, as one of the social accountability

tools - in this matter it is selected as one of the

methods to describe stakeholder assessment n

the environmental and social aspect of the oil &

gas mining activities of the company

Scorecard is implemented by engaging the

respondent from the villagers near the mine

(sambiroto, campurejo, ngampel), local

government and the company itself.

Scorecard is conducted in the 2 months term

(December 2011-January 2012)

Aspects scored

Environmental Aspect:

SOP for HSE

Prevention & managing the air pollution and green house emission

Prevention & managing the sound and water pollution

Prevention & toxic and hazardous waste management

Prevention & disease management due to mining activities

Emergency contingency plan standard

Post-mining rehabilitation

Access and public information transparency

Social Aspect (society development program) :

Planning and program scope aspects

Program implementation aspect (executor, area scope)

Budget allocation

Progress report and implementation report

Access and public information transparency

Assessment/Evaluation Standard

• GRI

• ISO 26000

ScoringScoring (in general):

Current standard/regulation/SOP

Standard/regulation/SOP implementation

Socialization and public information

transparency and

Engagement/multi-parties dialogue

Score : 0 to 5

5 : Very good

4 : Good

3 : Adequate

2 : Poor

1 : Very Poor

0 : Bad

Scoring result :

Community, Local Government, Company (1)

Scoring aspect

Scoring

Commun

ity

(average)

Local

Gov

(ave)

Compa

ny (ave)

ENVIRONMENTAL ASPECT

There is SOP for work security, health security and

environment (HSE) (is there any SOP, socialization and

complaint handling))

2 5 5

Prevention and management for air pollution and

reduction of greenhouse gas emission

(There is standard/SOP, flare stack distance, leakage

management, the existence of leak detectors : gas

detector gas, siren, worker, wind sock, evacuation path

and evacuation area)

2.75 4.25 4.75

Noise and Air Pollution management

(There is SOP, socialization and division to handle

complaint)

1.33 3 4

Prevention and management of water pollution

(SOP, waste water disposal, liquid waste injection,

socialization and division to handle complaint)

3 4 5

Prevention and Management for Toxic and Hazardous

Waste

(special container for hazardous waste, implementation

and division to handle public complaint)

3.67 5 5

Disease prevention and management due to mining

(program, time of implementation, scope area, socialization and public

complaint division)

2.17 4.5 5

Emergency contingency plan standard : H2S presentation, oil leak

and spill, fire, and other emergency potential

(SOP, emergency team, early warning system, complete emergency kit,

socialization, multi-parties engagement and public complaint division)

2.7 4.44 5

Abandonment and Site Restoration

(budget allocation, socialization and information access)1 3 4

Access and Public Information Transparency related to

environmental aspect

(Document, information availability, access of information from the

following documents: HSE standard, AMDAL & RKL/RPL, as well as

Contingency Plan)

2 4.67 5

SOCIAL ASPECT (Community Development Program)

Community Development Program planning

(planning, socialization, and multi-parties dialog)

1.67 5 5

Scope of Community development program

(program scope : development of economy, education, health,

community empowerment, environmental facility support, religious aid,

and infrastructure)

4.33 5 5

Scoring result :

Community, Local Government, Company (2)

Implementation of the community development program

(Engaging the society as executor, having the procedure for

proposal and its socialization, program area scope)

3 4.5 5

Progress report and community development program

implementation

(The existence of progress and execution report, socialization

and reporting to the local government)

1.67 3 3

Fund allocation for the community development program

(there are specific budget allocation for socialization and

information of allocation per area)

2.33 2 5

Access and Public Information transparency related to the

community development program

(Availability of document/information, accessible document:

comdev planning, progress report and activity execution report,

budget allocation per village)

1.67 3.67 5

Scoring result :

Community, Local Government, Company (3)

• Company should do more intense socialization and simulation as well as engage more community members so they are better prepared in emergency evacuation.

• Placement of equipment and emergency signs should not only be placed in the drilling area, but also in settlement area, at least the closest village to the drilling location.

• Several early warning systems should be repaired (e.g. wind sock). The amount should be added, e.g. face masks should be distributed before emergencies.

• Community empowerment program should be improved, since now the priority for it declines, and the program in fact really benefited the community.

• Local worker should be given more opportunity, recruitment should be more transparent so that the community will not be harmed by the job broker’s trick.

• Community engagement in socialization of the mining activities and CSR-Comdev program execution should involve wider grass-root community so it will not lean on the village’s elite.

Community Recommendation

• Local Government

• The company should be more compliant to the procedure related with mining activities implementation (e.g. related with location permit, should comply to Environmental Impact Assessment - AMDAL, community should be asked for their opinions)

• Company should be more transparent, e.g. to the natural resources division that will check the safety aspect, etc, so that the local government could help explaining it to the community

• Company should have conduct periodic coordination (e.g. for environmental aspect with environment service, and for CSR-Comdev with Regional Development Planning Agency/Bappeda)

• Company

• The community should confirm first, if there is matter to be clarified, don’t act on their own

• Local government should be more active to help explaining the community what the company had done

• Information should be balanced, community should not only see the weaknesses of the company, but also seek for strength and positive things from the company

Recommendation

Multi-parties Forum Agreement

• 1. JOB PPEJ will conduct evaluation to the

CSR/Comdev implementation committee

related to the public complaint on the

company program. The result will be reported

to the society (company has audit

mechanism from National Audit Body, and

BPMIGAS). There will be follow up (multi-

parties dialog) to talk about CSR-Comdev

mechanism.

• 2. Socialization (public campaign) and

simulation of environmental impact handling

through PKDB (time of each drill,

improvement of PKDB work mechanism,

noting the representation of society in Ring-

I, socialization of PKDB team names,

society needs to to be updated and notified

on the evaluation result).

• Recommendation and commitment

resulted from this forum will not be

published to the media/external parties.

This will be forwarded to the Regent

first and will also issue recommendation

letter

Lesson learned

•Lesson learned in conducting approach to the

company so the company “want” to be assessed

•Lesson learned in conducting approach to the society

surrounding the mine and the local government so

they “want” to be assessed

•Lesson learned in building commitment to the

scorecard results

•Replication Plan/Suggestion in other area