Uganda Christian University School of Law Oil and Gas Course

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1 Uganda Christian University School of Law Oil and Gas Course

1.1 Uganda Christian University Bachelor of Laws Courses For Year 1

1.2 Uganda Christian University Bachelor of Laws Courses For Year 2

1.3 Uganda Christian University Bachelor of Laws Courses For Year 3

1.4 Uganda Christian University Bachelor of Laws Courses For Year 4

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Uganda Christian University School of Law Oil and Gas Course

UGANDA CHRISTIAN UNIVERSITY

FACULTY OF LAW

OIL & GAS LAW

STUDY GUIDE

Study Guide: Oil & Gas Law

Introduction

My name is Patson W. Arinaitwe and it is my pleasure to warmly welcome you to the Oil& Gas law course unit. I will be your Lecturer throughout this courseand shall be assisted by Mr. Oundo Bernard. We shall start the Semester with an introductory week that will unfold with a number of important assignments for you.

The emergence of oil and gas industry in Uganda with its attending issues like revenue management, regulatory and institutional regime, environmental concerns, contractual frameworks, dispute resolution, sustainable development, climate change are critical issues under Oil and Gas law . It is now vitally important for students to have a firm grasp of these key issues of our time. I believe that although many of these concepts and issues may be new to you, you will enjoy this thought-provoking course.

You will find below a list of recommended reading materials that should help you support your studies across the semester. All such materials have been independently chosen. Please keep the study guide in mind as a primary source of information on this course unit. Your written contributions and coursework will be assessed by taking into account the quality of your arguments, research, footnotes and bibliography. These must meet certain academic standards, which are used across universities in the world. You are expected to observe and meet such standards.

I hope that you find this course interesting, informative and engaging. If i can do anything to better support your learning at any time, just let me know.

Patson W. Arinaitwe

LLM Oil & Gas Law (with a Distinction) UK.

September, 2014

Module Aims

This Course focuses on the main legal issues within the oil and gas industry today in Uganda and beyond. On completion of the course students will have the knowledge to understand and the skills to deal with a wide range of oil and gas legal issues. Overall, the main aims of the course will be to:

Develop a sound knowledge of the main legal, regulatory and contractual issues pertinent in the oil and Gas industry in the Uganda, Regional and international level both upstream and downstream operations ;
Develop an understanding of the operation of some key legal principles in the context of non-contractual issues in the oil and Gas industry; and
Develop research and analytical skills with a view of developing a legal jurisprudence in Oil and Gas law in Uganda. The Oil and Gas Law course recognises the lack of rigorous academic publications in the oil and gas law field in Uganda. Key issues will be addressed and are considered throughout the course.

Learning Outcomes

On completion of this course, students are expected to be able to:

To have a broad and clear insight into relevant legal, political and economic issues related to oil and gas law at national, regional levels;
Critically appraise and discuss the legal structure and regulatory matrix of the oil and gas sector in Uganda
Critically appraise contractual frameworks, environmental concerns, dispute resolution mechanisms as used in the oil and gas industry.
Synthesize learning across different oil and gas concepts through legal reasoning, analysis and research
Critically analyse the broad principles and practical implementation of oil and gas law and policy in Uganda and various regions of the world.
Exhibit full understanding of legal issues covering finite resources and incorporate them into the decision making process.

Weekly Load

The Lectures/Tutorials are delivered over a 12 weeks starting from September; 2014.The lecture will take up 4 hours a week and tutorial two hours. The first part of the two hour lecture will be a Power Point Presentation which will last around one and twenty minutes. This will be followed by a 10 minute break, after which group discussions will be held for the remaining thirty minutes. The weekly presentation will be communicated together with the Tutorial questions.

Along with the other courses, this module is aimed at helping students to develop their study skills and capacity to conduct their structured and efficient research across legal and policy materials. The materials supporting this course are a base for students to develop their own research into the subject. Thus, students are expected to devote significant amount of time to private study.

Students will be expected; i) carry out research in the course of the week and read the selected materials; ii) structure their minds to secure the advanced knowledge that only an individual knowledge in-depth work and dedication to study may bring.

Students are expected to exhibit capacity to develop their research skills by relying, among other sources, on text books, period materials, empirical research, online and on-site library material.

Delivery & Assessment

Delivery

As this course is about a whole industry, the approach taken is to examine the industry from various perspectives – or through various lenses. The course will be delivered thorough Lectures, seminars, assigned reading, case studies, group activities, directed reading/research, coursework assignments and examination.

Assessment:

Continuous class assessment 10%
Research Paper 20%

Final Exam 70% (this will constitute take home test which will account for 20% and written exam which will account for 50%)

NOTE:

The class assignments and research paper will constitute the coursework marks. In accordance with the University policy, only those students who obtain a minimum of 15 marks out of the above stated 30 marks for the coursework will be allowed to sit for the final exam which contains 50% of the total marks for this course.
The penalty for late submission of a piece of coursework/ assignment is that the coursework/ assignment is failed.

Other instructions regarding method of submission of the assignment will be included with the assignment and must be followed.

All essays must be type written/word processed, fully referenced and include a Bibliography and must follow usual academic guidelines.

Plagiarism:

Essays must be free of plagiarism and must be the student’s own work. Plagiarism is a serious violation of academic standards. Plagiarism is presenting the thoughts or writings of others as your original work, without properly identifying and referencing the source, falsifying or fabricating data, copying from another student’s work, etc. n Plagiarism is unacceptable behaviour. Any allegations of plagiarism in assessments will be reported and dealt with as academic misconduct in accordance with the University Academic Regulations. Aiding and abetting another student to commit academic misconduct will be dealt with in the same way. Make sure you do not commit unintentional plagiarism as a result of inadequate note keeping and standards of referencing and citation. You need to cite every idea obtained from elsewhere and include page numbers in your citation.

Course Cotent

Week 1: Introduction & definition of terms.

Daniel Yergin, The Epic Quest for Oil, money and Power: The Prize, (London, Simon & Schuster, 2010)

Week 2: Technical overview of the Oil and Gas Industry

Read

Daniel Yergin, The Epic Quest for Oil, money and Power: The Prize, (London, Simon & Schuster, 2010)

Week 3: State of Oil and Gas Industry in Uganda

Read:

Bainomugisha A, Kivengyere, Hope, Tusasirwe B, ‘Escaping the Oil Curse and Making poverty History; A Review of the Oil and Gas Policy and Legal Framework for Uganda’ ACODE Policy Research Series, No. 20, 2006.
Petroleum potential of the Albertine Graben, Uganda, working documentation for petroleum Exploration and Production Department, Ministry of Energy and Mineral Development. November 2009

Herbert Mbonye, The Discovery of Oil in Uganda: A Strategic Resource With. Opportunity for Development or a Threat to Stability? Ugandan People’s Defense Force (2013).

Week 4: Legal, Regulatory & Institutional framework of Oil & Gas

Read

Ss 8-46 of Petroleum (Exploration, Development and Production) Act, 2013
BARTON, B. et al., 2006. Regulating Energy and Natural Resources. (Oxford: Oxford University Press.)

HM Qabazard ‘ The changing role of the national and international oil company in a Geopolitical Context’ (2007) 5 OGEL

Black A.J ‘Comparative Licensing Aspects of Canadian and UK Petroleum Law’ (1986) Texas International L J (Westlaw)

Week 5: Environmental Aspects, Health and Safety of Oil and Gas sector.

Read,

Ss 1, 3, 71(2), 88(2), 115, 141, 142 of Petroleum (exploration, Development and Production) Act, 2013
The Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 4 of 2013 Ss, 1, 3, 46, 47, 64

Occupational Health and Safety Act, 2006, Act No. 9 of 2006

Havemann, L, “Environmental Law and Regulation on the UKCS” in Gordon,G, Paterson,J, Usenmez E, Oil and Gas Law- Current Practice and Emerging Trends, (2^nd Ed, Dundee University Press, 2012) pp 231- 281.
Birnie P, Boyle A, Redgwell C, International Law and the Environment (3rd Edition, Oxford University Press, 2009).
Case Study of Deep Water Horizon Disaster (Macondo Incident) 2010

Joint E&P Forum/UNEP Technical Publication, 1997, Environmental management in oil and gas exploration and production http://www.ogp.org.uk/pubs/254.pdf
The National Environment (Environmental Impact Assessment) regulations Statutory Instrument No. 153-1 referred to herein as the EIA Regulations.

Noise control under National Environment (Noise Standards and Control) Regulations.
Ozone depletion under the National Environment (Management of Ozone Depleting Substances and Products) Regulations.
Soil quality under the National Environment (Minimum Standards for Management of Soil Quality) Regulations.

Waste management under the National Environment (Waste Management) Regulations.
Discharge of effluent under the National Environment (Standards for Discharge of Effluent into Water or on Land) Regulations.
Delegation of waste discharge functions under the National Environment (Delegation of Waste Discharge Functions) Regulations.

Management of wetlands, river banks and lake shores management under the National Environment (Wetlands, River Banks and Lake Shores Management) Regulations.

Management of mountainous and hilly areas under the National Environmental (Mountainous and Hilly Areas Management) Regulations.
Approval of project following submission of an environmental impact assessment under the National Environment Act, Cap. 153 (the certificate of approval as mentioned in 2.14.3 above);
Licence to manage, transport, store and treat waste under the Petroleum (Exploration, Development & Production) Act 2013;
Licence to transport petroleum products (where applicable) under the Petroleum Supply Act 2003;

Pollution licence (where required) under the National Environment Act, Cap. 153;

Permit to construct in wildlife protected area under the Uganda Wildlife Act, Cap. 200;
Permit under the Water Act Cap. 152 to enable the obstruction, diversion, pollution/waste disposal or other interference with water;
Policy objective 5.1.5, 6.2.4, 9, 20, National Oil and Gas policy 2008

Week 6: Oil and Gas Contracting

Concessions
Risk Service Contracts
Licensing
Production Sharing Agreements
Contracts for services & other ancillary Contracts
Contractual Risk Management in Oil and gas industry
Administering and Managing the Contract

Read;

Arinaitwe W.P, ‘Risk Allocation in Oil and Gas Service Contracts: A Comparative Analysis of US Outer Continental Shelf and UK Continental Shelf Jurisdictions’, (2014)AMLC pp 1, 14-21.

Bindemann, K, “ Production Sharing Agreements: An Economics Analysis” (1999) 25 WPM, Oxford Institute for Energy Studies, 49

Maniruzzaman A.F.M, “The New Generation of Energy and Natural Resource Development Agreements: Some Reflections” (1993) 11(4) J. Energy & Nat Resources L pp 207- 247

Taverne, B, “Production Sharing Agreements in Principle and Practice” in David, M.R (ed), Upstream Oil and Gas Agreements, (London, Sweet & Maxwell, 1996).
Smith, E.E, “From Concessions to Service contracts” (1991-1992) 27 Tulsa l.J 493-524

Case Law

BHP Petroleum Ltd v British Steel Plc [1999] 2 Lloyd’s Rep 583
Calendonia North Sea Ltd v. London Bridge Engineering Ltd [2002] UKHL 4

Canada Steamship Lines Ltd v R [1952] 1 ALLER. 305

Darty v.Transocean Offshore USA., Inc 875 So. 2d 106, 111-12 (La. App. (4th Cir.) 2004).
Deepak Fertilisers and Petrochemicals Corpon v ICI Chemicals & Polymers ltd [1999] 1 ALLER (Comm) 69.
Farstad Supply A/S v. Enviroco Limited [2010] UKSC 18.

Westerngeco Ltd v ATP Oil & Gas (UK) Ltd [2006] EWHC 1164 (Comm).

Week 7: Dispute Resolution in Oil and Gas Industry

Negotiation & mediation
International Arbitration
Expert Determination
Litigation

Read:

Tullow Oil plc & Anor vs Uganda Revenue Authority; TAT application No. 4 of 2011.
Greenwatch & Advocates Coalition For Development & Environment (ACODE) –vs- Golf Course Holdings Ltd – C. Misc. Applic. No. 390 of 2001.

Channel Tunnel Group v Balfour Beatty Construction Limited [1993] A.C 334

Wilky Property Holdings plc v London & Surrey Investments Limited [2011] EWHC 2226 (Ch)
Fiona Trust & Holdings Corporation v Privalov [2007] UKHL 40; [2007] ALLER 951

Week8: Taxation Regime Relating to Oil and Gas Industry in Uganda.

Read:

Section 89 A of the Income Tax Act Cap 340
High Court Civil Appeal No. 14 of 2011, Heritage Oil & Gas limited vs Uganda Revenue Authority.

Tax Appeals Tribunal Application No. 4 of 2011; Tullow Oil plc & Anor vs Uganda Revenue Authority

Week 9: Corporate Governance & Corporate Social Responsibility in Oil & Gas Sector.

Human Rights issues in Oil & Gas industry
The Role of Extractive Industries Transparency Initiative (EITI) in the enforcement of transparency in Oil and Gas sector
Oversight Role of Parliament

Week 10: Decommissioning of offshore & on Shore oil and Gas Installation.

Duties and Obligations of operators
Statutory Provisions
International best practices.

Read: Guidance Notes for Industry on the decommissioning of Offshore installations and pipelines under the Petroleum Act 1998, see BERR website: http://www.berr.gov.uk

Legislation

The Constitution of the Republic of Uganda, 1995
The Petroleum (Exploration, Development & Production) Act, 2013

The Petroleum (Exploration and Production) (Conduct of Exploration Operations) Regulations Statutory Instrument No. 150 -1

The Petroleum Supply Act, 2003
Occupational Health and Safety Act, 2006, Act No. 9 of 2006
Petroleum (Refining, Conversion, Transmission and Midstream Storage) Act, 2013

Atomic Energy Act, 2008
The Public Procurement & Disposal of Public Assets Act, 2003 (PPDA Act)

The Public Procurement & Disposal of Public Assets Regulations No. 70 of 2003.
The Access to Information Act
The United Nations Convention on Biological Diversity, 1992, (the Biodiversity Convention)

The National Environment Act, Cap. 153 and Regulations made there under.
Uganda Wildlife Act, Cap. 200
The National Oil and Gas Policy, 2008

Oil and Gas Revenue Management Policy, 2012.

The Renewable Energy Policy 2008
The Energy Policy, 2002

Indicative Bibligraphy.

Alramahi, M, “Dispute Resolution in Oil and Gas Contracts”, (2011) Vol.3 I.E.L.R, pp.78-85.

Arinaitwe W.P, ‘Risk Allocation in Oil and Gas Service Contracts: A Comparative Analysis of US Outer Continental Shelf and UK Continental Shelf Jurisdictions’, (2014)AMLC pp 1, 14-21.

BARTON, B. et al., 2006. Regulating Energy and Natural Resources. Oxford: Oxford University Press.

Daniel Yergin, The Epic Quest for Oil, money and Power: The Prize, (London, Simon & Schuster, 2010)

United Nations Environment Programme (UNEP) 2011. Environmental Assessment of Ogoniland. Available from: http://allafrica.com/download/resource/main/main/idatcs/0002129 3:deb9cb4322608e852fc03d5fbbcf25d4.pdf

D R Hodas ‘International Law and Sustainable Energy: A Portrait of Failure’, Widener Law School Legal Studies Research Paper No. 10-21,http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1648906

Douglas A. Yates, The Scramble for African Oil: Oppression, Corruption and War for Control of Africa’s Natural Resources, New Politics, Progressive Policy (London : New York: Pluto Press; Distributed in the United States of America exclusively by Palgrave Macmillan, 2012).

Gordon,G, Paterson,J, Usenmez E, Oil and Gas Law- Current Practice and Emerging Trends, (2^nd Ed, Dundee University Press, 2012)

Lowe, Anderson, Smith & Peirce, Cases and Materials on Oil and Gas Law, (5^th Edition,2008)

Useful Web links

http://www.era.or.ug

http://www.energyandminerals.go.ug/uploads/reports/JSR_REPORT.pdf

http://energyandminerals.go.ug/publications

http://www.iea.org/

http://www.irena.org

www.eere.energy.gov

http://www.uedcl.co.ug/

http://uegcl.com/index.html

Faith-based Teaching

It is important to note that the University’s identity as an authentic Christian institution will be reflected through integration of faith and biblical principles in delivering the course. Thus, professional ethics especially wider matters of morality and Character will be inculcated. Further, we are called upon to be stewards of God’s creative work and use it for his glory.