first Edition


by Owen L. Anderson, Jacqueline L. Weaver, John S. Dzienkowski, John S. Lowe, Keith B. Hall, Frédéric Gilles Sourgens

ISBN: 978-1-943497-39-3

Chapter 8, Sustainable Development: Indigenous Rights, Human Rights, and Community Impacts, discusses sustainable development, the mix of international laws, codes of conduct, court decisions, and host government laws and contract provisions that govern environmental, socioeconomic, and human rights issues. Consulting with and seeking the consent of local communities and indigenous peoples can reduce conflicts that delay and impede project operations and that implicate international oil companies (IOCs) in human rights violations. Many IOCs have pledged to follow two widely used codes of conduct created to guide the human rights practices of multinational corporations: the Voluntary Principles on Security and Human Rights and the United Nations Guiding Principles on Business and Human Rights. This chapter offers examples of good practices, contractual provisions, and case studies of large projects developed by IOCs in the Peruvian rain forest, the Niger Delta of Nigeria, Chad-Cameroon, and Papua New Guinea.

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Author Affiliations and Bios
Conditions for Use and Copyright
Preface and Acknowledgments
Acronyms, Initialisms, and Standardization
Chapter Bibliographies
8.1. Introductory Primers
8.1.1. A Social License to Operate and the Natural Resource Curse
8.1.2. Primer on Environmental Impacts
8.1.3. Primer on International Law Sources Related to Sustainable Development
8.2. FPIC, Indigenous Rights, and Native Title
8.2.1. Defining FPIC: Free, Prior and Informed Consent
8.2.2. United Nations (UN) Declaration on the Rights of Indigenous Peoples
8.2.3. Native Title in the Courts
8.2.4. Project Reviews Under Sustainable Development Principles
8.2.5. Conflict Versus Consent in the Extractives Industry
8.3. Human Rights and the Oil Companies
8.3.1. Lawsuits Under the Alien Tort Statute of 1789 (ATS) in U.S. Courts The Setting: Unocal in Myanmar Legal Analysis of Liability Talisman in Sudan The U.S. Supreme Court Ends Most ATS Litigation
8.3.2. Code of Conduct for the Use of Security Forces
8.3.3. The UN Guiding Principles on Business and Human Rights (UNGPs) Defining Human Rights and the State’s Duty to Protect The Corporate Duty to Respect Human Rights Access to Remedy
8.3.4. Post-UNGP Developments: Legislation and Litigation on Many Fronts Legislation Litigation
8.4. Hard Law: National Laws and Contracts with the Host Government and Local Communities
8.4.1. National Laws of the Host Country
8.4.2. Obligations in the Host Government Petroleum Contract Contract Obligations from the 1970s through the 1990s Contracts After 1994: The Good International Petroleum Industry Practices (GIPIP) Standard and Best Standards Determining What the GIPIP Standard Requires Social Impact Assessment Provisions Global Health, Safety, and Environment Reporting by Corporations
8.4.3. Community Development Agreements (CDAs) Defining CDAs and Their Contents CDAs: Private Governance of Resource Development
8.4.4. Some Industry Best Practices: Successes and Failures Chevron in the Niger Delta Shell Oil in the Peruvian Amazon ExxonMobil and the Chad/Cameroon Pipeline Project Outcomes Versus Efforts: Measuring Success in Taming the Resource Curse ExxonMobil in Papua New Guinea
8.5. Conclusion

OWEN L. ANDERSON is a Distinguished Oil & Gas Scholar at the University of Texas School of Law, Co-Academic Director of the Kay Bailey Hutchison Center for Energy Law & Business at the University of Texas, and the Eugene Kuntz Chair in Oil, Gas, & Natural Resources Emeritus and George Lynn Cross Research Professor Emeritus at the University of Oklahoma College of Law. He is an Honorary Senior Fellow at the University of Melbourne Faculty of Law; a member of the Honorary Lecturer and Principal Researcher of the Centre for Energy, Petroleum and Mineral Law and Policy at the University of Dundee; and a Visiting Professor at the University of Sydney. He has authored over 100 articles, several books, and treatises on water law and domestic and global petroleum law. He is Editor-in-Chief of the Texas Title Standards and a lifetime Honorary Trustee of the Rocky Mountain Mineral Law Foundation and member and former officer of the Association of International Petroleum Negotiators (AIPN), form and style editor of AIPN model contracts, and founding member of the editorial board of the AIPN-Oxford University Journal of World Energy Law and Business. He a life member of the National Conference of Commissioners on Uniform State Laws, a member of the American Law Institute, and a trustee of the Energy and Mineral Law Foundation. He is a member of the Texas, Oklahoma, and North Dakota bars and an arbitrator and consultant on oil and gas law and policy.

JACQUELINE L. WEAVER is Professor Emerita at the University of Houston Law Center, where she held the A.A. White Professor of Law chair until her retirement in 2017. Her teaching and research interests cover oil and gas law, energy law and policy, international petroleum, and environmental and natural resources law. She is the co-author of Smith & Weaver, Texas Law of Oil and Gas (a three-volume treatise); Energy, Economics and the Environment (a casebook on U.S. energy, including FERC regulation of pipelines); and several books on international petroleum transactions and Texas oil and gas law. She has won many teaching awards. She has lectured on topics in international oil and gas in Africa (Uganda, Ghana, Namibia, and Angola), Kazakhstan and India (as a Fulbright scholar), Lisbon, and Bangkok. She has written articles on offshore safety after the Macondo disaster in the Gulf of Mexico, energy markets, sustainable development in the international petroleum industry, comparative unitization laws, energy policy, and traditional oil and gas law topics. Professor Weaver holds a B.A. in Economics from Harvard University and a J.D. degree from the University of Houston.

JOHN S. DZIENKOWSKI is the John F. Sutton, Jr. Chair in Lawyering and the Legal Process and a Professor of Law at the University of Texas School of Law in Austin, Texas. He began his teaching career at Tulane Law School in New Orleans and joined the Texas faculty in 1988. He has been a visiting professor at a number of law schools and has lectured in numerous countries. John teaches and writes in the areas of professional responsibility of lawyers, real property, international energy transactions, and oil and gas taxation. He also was the recipient of the Texas Exes Faculty Teaching Award at the Law School in 2005. He is a four-term member of the drafting committee of the Multistate Professional Responsibility Examination. He has authored and edited numerous books and articles on a variety of legal ethics and natural resource topics. He is the long-time co-chair of the biannual Parker Fielder Oil and Gas Taxation Conference, co-sponsored by the University of Texas School of Law and the Internal Revenue Service.

JOHN S. LOWE holds the George W. Hutchison Chair in Energy Law and is a Professor of Law at Southern Methodist University. Professor Lowe has taught courses on oil and gas law, oil and gas contracts, and international petroleum transactions at SMU’s Dedman School of Law since 1987. He also served as Senior Associate Dean for Academic Affairs from 2009 to 2014. He worked as an Administrative officer for the Malawi Government for two and a half years in a program funded by USAID and the Ford Foundation after Harvard law school, then practiced law privately for five years. He was a member of the faculty at the University of Toledo from 1975 to 1978. He then joined the faculty of the University of Tulsa, where he served as professor and associate director of the National Energy Law and Policy Institute. Professor Lowe has been a visiting professor at the University of Texas, a Distinguished Visiting Professor of Natural Resources Law at the University of Denver, the Visiting Judge Leon Karelitz Chair of Oil and Gas Law at the University of New Mexico, and the Visiting Borden Ladner Gervais LLP Chair of Energy Law and Policy at the University of Alberta on a Fulbright grant. He presently holds appointments as an Honorary Lecturer and Principal Researcher of the Centre for Energy, Petroleum and Mineral Law and Policy at the University of Dundee, as a Senior Fellow of the Faculty of Law at the University of Melbourne, and as a Visiting Professor at the University of Sydney. He has also been an International Legal Advisor for petroleum issues in the Commercial Law Development Program of the U.S. Department of Commerce, and has lectured at universities and advised governments around the world. Lowe is a former Chair of the Section of Environment, Energy, and Resources Law of the American Bar Association and a former President of the Rocky Mountain Mineral Law Foundation. He is a member of the commercial arbitration panels of the American Arbitration Association, the International Centre for Dispute Resolution, and the CPR Institute of Dispute Resolution, as well as an editor or author of many articles and books, including Cases & Materials on Oil & Gas Law, Oil & Gas in a Nutshell, Oil & Gas Law & Taxation, and Kuntz Law of Oil & Gas.

KEITH B. HALL is the Campanile Charities Professor of Energy Law at Louisiana State University (LSU), where he serves as Director of the Mineral Law Institute and Director of the John P. Laborde Energy Law Center. He teaches Mineral Rights, International Petroleum Transactions, Civil Law Property, and Energy Law & Regulation. He has also taught Advanced Mineral Law and an Energy Law Seminar that focuses on environmental issues relating to oil and gas development. His publications have focused on oil and gas leases, pooling and unitization, hydraulic fracturing, and induced seismicity that is associated with oil and gas activities. He is co-author of a textbook on oil and gas law that is used in U.S. law schools and also is co-author of a book published by the American Bar Association on the legal issues relating to hydraulic fracturing. He is a frequent speaker at national and international oil and gas conferences. In prior years, Professor Hall has taught International Petroleum Transactions as a Visiting Professor at Baku State University in Azerbaijan, International Energy Transactions as a Visiting Professor at the University of Pittsburgh Law School, and Introduction to Mineral Law as an adjunct professor at Loyola Law School in New Orleans. Before joining the LSU Law School faculty, he practiced law for 16 years, with a focus on oil and gas litigation and transactions. Professor Hall is the Editor-in-Chief of the Institute for Energy Law’s Oil & Gas E-Report. He serves on the Rocky Mountain Mineral Law Foundation’s Board of Directors, the Association of International Petroleum Negotiators’ Educational Advisory Board, and the Executive Committee of the Energy & Mineral Law Foundation. He is a former Chair of the Oil & Gas Committee of the American Bar Association’s Section of Environment, Energy and Resources. He also is a registered professional engineer (inactive).

FRÉDÉRIC G. SOURGENS is the Senator Robert J. Dole Distinguished Professor of Law and Director of the Oil and Gas Law Center at Washburn University School of Law. Freddy serves as Editor-in-Chief for Oxford University Press’s reporter of investor-state arbitral decisions. He has authored or edited over 80 publications. His works have been cited in international legal proceedings and affirmatively relied upon by courts and arbitral tribunals including by the Constitutional Court of Portugal. His most recent books are Evidence in International Investment Arbitration (with Kabir Duggal and Ian Laird) (Oxford University Press: 2018) and Decarbonisation and the Energy Industry: Law, Policy and Regulation in Low-Carbon Energy Markets (with Tade Oyewunmi, Penelope Crossley, and Kim Talus) (Hart Publishing: 2020). He is currently co-authoring The Transnational Law of Renewable Energy (with Teddy Baldwin and Catherine Banet) (Oxford University Press, under contract, forthcoming 2022). Freddy has served as counsel in numerous precedent-setting international legal disputes.

HARRY W. SULLIVAN, JR., Contributing Author, is an International Energy Attorney based in Dallas, Texas, where he is an Executive Professor at Texas A&M School of Law and an Adjunct Professor at SMU’s Dedman School of Law. He also works as the Assistant General Counsel for Kosmos Energy in their West Africa exploration activities. His previous experience includes 14 years as Senior Counsel-International in the International E&P Legal Group of ConocoPhillips, Of Counsel with Thompson & Knight LLP, 15 years as Chief Counsel-International and Senior Counsel for Atlantic Richfield Company and five years as Senior Counsel for Sun Oil Company. Mr. Sullivan has a J.D. degree from Louisiana State University School of Law and an LL.M. degree from Southern Methodist University’s Dedman School of Law. He is licensed to practice law in the states of Louisiana and Texas and before the Supreme Court of the United States, and he is Board Certified in Oil, Gas and Mineral Law in Texas. He is also admitted as a Solicitor in England and Wales. His practice and experience focuses on the upstream and midstream oil and gas industry, both in the U.S. and internationally, in more than 25 countries. 

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