Wednesday, October 08, 2008

Legal Liability Risk Exposures

In the Oil and Gas and General Mining Contracts, we as lawyers must really be fully aware upon the Legal Liability Exposures surrounding the operations.

These legal exposures have to be taken into considerations when we give legal advices and legal opinions, including when we are preparing, reviewing or drafting the necessary legal documentations that might be exposed during the starting of establishing the vehicles being used by the oil / gas, general mining investors to conduct its business activities.

In practice, this starts from preparing the corporate documents, the licenses, permits which are required to be fulfilled by the respective Indonesian Authorities as well as the prevailing Rules and regulations.

Relating to Oil/Gas and General Mining activities, where pollutions on the environments are potentially to be exposed, we shall then have to observe all the applicable environmental laws, rules and regulations that has to be fulfilled.

Why are these significant?

These are really significant, because the principle under the environmental laws are “strict liability concept”, in the sense that if there are other activities which maybe impact by the operations activities from the oil/gas operations, general mining operations, then the "burden of proof" is not exposed on the parties claiming of suffering polution against the mining companies, but is upon the mining companies, who must proof that their activities are not causing such polution.

I have experienced, that even fish and shrimp pond owner, may file claims for loss of profits, income and damages, with the reasoning that their fish and shrimp pond business, was polluted by elements arising from the oil/gas or general mining activities.

What was also interesting, is that person or individuals might also claim for compensation due to the noise coming from the operations of engines, which caused illness to their hearings.

The above are among others examples of legal exposures which may arise in the oil/gas and general mining business operations, which have to be anticipated by the oil/gas as well as general mining companies conducting their operations in Indonesia. agung supomo suleiman Email : agungsacolaw@telkom.net

HP 0816830647 http://www.agungsacolaw.blogspot.com

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