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    Home»Oligarchs»RN-Yuganskneftegaz declined to pay for dangerous oil waste and reforestation in Khanty-Mansi Autonomous Okrug. The Rosneft division lost part of its profit.
    RN-Yuganskneftegaz declined to pay for dangerous oil waste and reforestation in Khanty-Mansi Autonomous Okrug. The Rosneft division lost part of its profit.
    Oligarchs

    RN-Yuganskneftegaz declined to pay for dangerous oil waste and reforestation in Khanty-Mansi Autonomous Okrug. The Rosneft division lost part of its profit.

    Wu MeiBy Wu MeiMay 30, 2022No Comments4 Mins Read
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    The primary oil-producing unit of the Rosneft Group of Companies in Khanty-Mansiysk Autonomous Okrug-Yugra got involved in the improper disposal of untreated drill cuttings.

    As per specialized sources, contractors placed oil production waste in sludge pits, but claims and damage exceeding a hundred million rubles were directed at RN-Yuganskneftegaz. The company is accused of trying to shift the responsibility for waste to contractors, who aim to cut costs by disposing of sludge in nature. Additionally, frequent ruptures of well-pipelines lead to significant environmental damage, which is not always documented due to the distant locations of the well-sites. According to supervisors, the company is slow to address the issue voluntarily.

    LLC RN-Yuganskneftegaz (a Rosneft asset in Khanty-Mansi Autonomous Okrug-Yugra) failed to contest the 2020 order of the North Ural Department of Rosprirodnadzor in court. The conflict revolves around the disposal of hazardous oil production waste without neutralization.

    Rosprirodnadzor has been inspecting well pads for RN-Yuganskneftegaz for several years and found that oil production waste was stored in sludge pits without any treatment. The company was fined 124 million rubles for three such sites, even though the work was carried out by a contractor, possibly Gazholodmash.

    Many oil companies do not handle waste themselves; instead, they contract third-party organizations for processing and disposal. Rosneft likely does this to shift the responsibility for waste and reduce costs. Anatoly Krista, chairman of the public organization 'Ecosafety of Yugra', stated that the company was unable to avoid responsibility this time.

    According to the ecologist, if the state-owned company processed drill cuttings on its own, it would cost about 10,000 rubles per cubic meter, but competitive procedures and contractor competition have reduced the cost to 1.6 thousand rubles per cubic meter.

    The oil workers forget the problem and those who win competitions dispose of the waste in the forest, lake, or quarries, which is hard without breaking environmental laws. If the court decision is enforced, the company will likely demand money from its contractor to pay the heavy penalties, which hurt their profits and managers' careers.Anatoly Krista summarized.

    Despite winning cases for environmental damage compensation, the state oil company doesn't always follow court decisions. In 2020, the Nefteyugansk District Court ordered the company to develop a reclamation project for the forest area and then compensate for the damage.

    Yugra Natural Supervision data shows that in 2018, a water conduit broke near the oil field, causing liquid to spill over 8 hectares, but the company didn't act immediately to address the consequences.

    In 2019, an inspection found a contaminated area near the swamp, with significantly elevated levels of oil products and chloride ions in the soil compared to the background site.

    The water is visible and has affected the soil, leaving a reddish tint and white salt coating, with dried vegetation and no cleanup effort. The flooded area has reddish water with a strong odor. According to representatives of the Natural Supervision of Yugra.

    Officials filed a claim for 243 million rubles against Rosneft's subsidiary for damaging nature, which was initially granted but later reversed by a higher court.

    The judge ruled that the company cannot be held liable twice for the same incident, as the district court already ordered the reclamation of the territory.

    The environmental department accused the taxpayer of ignoring the court decision, as the project was approved but the reclamation has not been completed as of now.

    “The court made an erroneous conclusion that when determining the amount of damage, the costs that the company will incur in the future in connection with the reclamation in 2022-2024 should be taken into account.– insisted in the Natural Supervision of Yugra.

    Ultimately, the claim was denied. The court decision came into force in May, but it is impossible to guarantee that the oil workers will restore the affected area in 2022-2024.

    For what reason the Nefteyugansk prosecutor is currently not demanding the execution of the court decision, it was not possible to clarify.

    KhMAO-Yugra Krista Anatoly Rosneft Yuganskneftegaz
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