US embassy cable - 05ALMATY1435

UNCLAS  ALMATY 001435 
 
SIPDIS 
 
 
DEPT FOR EB/ESC (JONES), EUR/SNEC, EUR/CACEN (MUDGE) 
 
E.O. 12958: N/A 
TAGS: ENRG, EPET, KZ, Environment, Energy, ECONOMIC 
SUBJECT: ENVIRONMENTALISTS CHARGE OIL MAJORS WITH POLLUTING 
KAZAKHSTANI VILLAGE 
 
 
1. (U) Summary: A coalition of Kazakhstani and U.S. 
environmental activists charge the Karachagank Petroleum 
Operating (KPO) with polluting the village of Berezovka, and 
demand its relocation. KPO rejects these accusations and 
points to extensive monitoring data. Local authorities 
support KPO and reject the NGO allegations. In the absence of 
an investigation by qualified, independent experts, existing 
data appear to support KPO claims. End Summary. 
 
--------------------------- 
The Environmentalist's Side 
--------------------------- 
 
2. (U) The U.S. environmental watchdog "Crude Accountability" 
(CA) has teamed up with activists from the village of 
Berezovka (Burlinskii Raion,Western Kazakhstan Oblast) in a 
campaign to relocate the village. Kate Watters, the head of 
CA, and Svetlana Anosova, leader of group of Berezovka 
activists, allege that flaring and other activity from 
Karachagank Petroleum Operating (KPO) has polluted the 
village and made life unbearable for its 1,300 residents. 
Energy Officer and Energy FSN visited both KPO and Berezovka 
(February 7-10, 2005). 
 
3. (U) Berezovka lies about two kilometers south of the 
so-called "Sanitary Zone" (SZ) of KPO. Co-operators Agip/Eni 
and British Gas (each with a 32.5% stake) operate the mammoth 
gas/condensate field, which boasts about 9 billion barrels 
and 1.35 trillion cubic meters of gas reserves. Other 
consortium partners include ChevronTexaco (20%) and Lukoil 
(15%). KPO recently pumped in $4.3bn to expand production and 
start an ambitious gas reinjection project. Production in 
March 2005 averaged about 217,000 bpd, making KPO 
Kazakhstan's second largest producer. 
 
4. (U) NGO charges are based on monitoring and anecdotal 
evidence of village residents. Monitoring by villagers, which 
according to Watters was conducted on September 11 and 
December 1 and 2 (2004) along EPA-approved lines, found the 
following substances in the ambient air at "levels of 
concern:" 
 
--September 11: toluene; hydrogen sulfide; carbon sulfide; 
methylene chloride; and acrylonitrile. 
 
--December 1 and 2: carbon disulfide. 
 
(Note: KPO alleges that this monitoring "does not give an 
accurate reading" and is "very unscientific". It also 
disputes whether the methodology is EPA-approved. End Note) 
 
CA also cites Orenburg Oblast Ecology Department (Russian 
Federation) data from October 30, 2004 showing hydrogen 
sulfide in two neighboring Russian villages at 1.28 and 2.6 
times the allowable level. The Russian/Kazakhstani border 
runs just north of KPO operations. 
 
5. (U) Villagers also report nausea, dizziness, headaches, 
restricted breathing, and unpleasant odors. Activists logged 
17 incidents between August 21, 2004 and February 9, 2005 
when they encountered such symptoms. They also allege an 
increase in skin rashes, children fainting, and bloody noses. 
In addition, activists charge that local authorities 
prevented about 60 villagers from having their blood checked 
in Aksai, the regional center, in December 2004. (Note: 
According to KPO, the death rate in Berezovka was slightly 
higher than for Burlinski region as a whole, 8.3 per thousand 
vs. 8.9 per thousand. They point out, however, that the birth 
rate was twice as high. End Note.) 
 
6. (U) Watters alleges that Anosova and other activists face 
state-sponsored harassment for their activities. They brought 
up the December 2004 incident, but did not mention other 
intimidation. We met with Anosova and others in a village 
music school without incident. 
 
---------------------------------------- 
The Resettlement of Tungush: Why not us? 
---------------------------------------- 
 
7. (U) Clearest evidence for relocating Berezovka--at least 
in the eyes of the environmentalists -- is the earlier 
resettlement of the nearby village of Tungush. Tungush was 
relocated because it fell within the SZ of KPO, which at the 
time was 5km. Under Kazakhstani law, all human habitation 
within the SZ must be resettled. KPO financed the $9.9m 
dollar move. Anosova, the activist, complained that, "In 2002 
they promised to resettle both Tungush and Berezovka." 
R.KH.Suyerbayev, the head of the Western Kazakhstan Oblast 
environmental authority, confirmed this. 
 
 
8. (U) In January 2004, however, GOK health authorities, in 
consultation with KPO, reduced the SZ from 5 to between 3 and 
3.84 kilometers. According to KPO, the new sanitary zone more 
accurately reflects the function of emission sources in light 
of present KPO operations and improvements, namely gas 
reinjection. KPO points out that even under the 5-km SZ only 
a small portion of Berezovka fell inside, and then no houses. 
The Oblast head of environmental monitoring confirmed KPO's 
claims. He added that,"the villagers are distraught because 
Tungush was resettled (and they were not). 
 
---------- 
KPO's Side 
---------- 
 
9. (U) KPO rejects pollution claims, and points to monitoring 
data from the ten villages surrounding the field as well as 
from the regional center of Aksai. KPO voluntarily monitors 
emissions in the villages outside of the SZ four times daily. 
Gidromet, a state licensed lab under contract by KPO, 
conducts the monitoring. Results are sent to Oblast 
environmental authorities. Under the law, KPO is required 
only to monitor along the SZ and at the plant. (Note: 
Villagers claim the Gidromet is not accredited and its 
results are not verified.) 
 
11. (U) Monitoring Date for Berezovka, 2004, (data for 
Berezovka/allowable norm) 
 
--H2S, Hydrogen Sulfide, (.001/.008) 
--S02, Sulfur Dioxide, (not detected/.05) 
--N02, Nitrogen Dioxide, (.018/.04) 
--CO,  Carbon Monoxide, (1.6/3.0) 
 
measurement mg/m3 
 
Readings for 2002 and 2003 are twice those for 2004 but well 
within allowable norms. Readings in other villages and Aksai 
are also within allowable norms. 
 
12. (U) To bolster its argument, KPO makes the followings 
points: 
 
--Use of "best practices" and World Bank standards. 
Elimination of pollution at the source. Resettlement only as 
a last resort; 
 
--Design of KPO facility to eliminate flaring waste gas from 
production units. One-half of all gas produced reinjected. 
 
--Use of "green burner" technology when new wells are cleaned 
and tested to eliminate soot and particulates. Since first 
introduction of waste gas handling in October 2003 at Unit 3, 
95% reduction in flaring emissions. 
 
--------------------- 
The Authorities' Side 
--------------------- 
 
 
13. (U) Oblast authorities, from central authorities down to 
the village headman, reject claims of pollution and calls for 
relocation. The Oblast epidemiological doctor stated that 
there was no excessive emission of the four monitored 
chemicals (Hydrogen Sulfide, Sulfur Dioxide, Nitrogen 
Dioxide, Carbon Monoxide). He added that, "A smell is a 
smell, but a concentration is another thing. There is no 
basis for resettlement, even if you include health 
statistics." The Director of Public Health said that after a 
2004 health inspection in the village, 16% of Berezovka 
villagers were healthy and 65% were "nearly healthy", i.e. no 
chronic illnesses. The Akim (centrally-appointed 
administrator) of Burlinskii raion complained that villagers 
were tempted by the compensation the relocated Tungush 
villagers received. (Note: KPO has or will provide gas to the 
villages--including a free hook-up for Berezovka, a new water 
hook-up, and has remodeled Berezovka's school. End Note). 
 
14. (U) Comment: Short of independent experts conducting a 
study, post does not have the expertise to judge definitively 
the merits of each side. That said, existing data appear to 
support KPO. In past cases, GOK authorities have used 
environmental issues, whether justified or not, to extract 
fines. KPO and authorities, however, should have done a 
better job of explaining to  Berezovka villagers why the 
scope of the Sanitary Zone was limited. End Comment. 
 ORDWAY 
 
 
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