"Community Expectations for Sustainable Development in Natural Resources Projects" Short Course Concludes

A thought-provoking and cutting-edge short course, "Community Expectations for Sustainable Development in Natural Resources Projects," came to a close last Friday with these conclusory comments by Luke Danielson: "One of our world's greatest needs is to integrate the idea that those who consume goods and materials need to also be concerned about the conditions under which these things are produced."

Mr. Danielson, a Gunnison attorney, principal in the Sustainable Development Strategies Group (SDSG), and widely-recognized international expert in addressing sustainable development matters in large natural resource development projects (for instance, mines, oil and gas projects, etc.) and his teaching partner Cecilia Dalupan, an attorney licensed in the Philippines and the U.S. and also a principal in SDSG, conducted the five day "short course" for a group of DU law and graduate students.

The course was organized in five components:

• Introduction: what is sustainable development in natural resources projects?
• Understanding each other: differences in culture, values, and ideas
• Sources of misunderstanding and conflict
• Incorporating communities in the decision process: managing conflict successfully
• Conclusion

Mr. Danielson and Ms. Dalupan presented a series of lectures, which provided the context for the major issues explored in the course. They also reflected on their own global experiences in dealing with the issues while encouraging students to reflect on the often vexing issues involved with natural resources development.

Among the course highlights included guest lectures from an outstanding array of leading figures such as:

• Robert Bassett, attorney with Holland & Hart (who also teaches International Mining Law in the DU graduate program)
• James F. Cress, attorney with Holme Roberts & Owen (who has also taught in the graduate program)
• Donald C. Ewigleben, executive officer of sustainability and legal affairs for mining firm AngloGold Ashanti, one of the world's leading gold producers
• Ralph Godell, attorney with Fognani & Faught
• George (Rock) Pring, DU law professor
• Don Proebstel, director of environmental affairs and sustainability for Natural Power Concepts
• Connie Rodgers, attorney with Davis Graham & Stubbs
• Jonathan Stacey, program manager for Rio-Tinto/Birdlife International Partnership
• Susan Waldau, partner with mediation firm CDR Associates

Another highlight involved student presentations that went on during the course of the week. Each student was assigned a topic to research, analyze, and then present to their colleagues. The presentations were provocative and often raised as many questions as they answered. For example, one of the presentations focused on the Chino mine closure in southwest New Mexico. Others dealt with projects that were located in Africa, South America, and elsewhere.

The week was a busy one to be sure. But from what I observed first-hand, the benefits were many both quantitatively and qualitatively.

In closing, Mr. Danielson said, "This has been just great. You as students have worked hard and really put your hearts into it." I could not have said it better.

Peru's "Lot 67:" Oil Development and Communities

In the past several months, the Peruvian government has been faced with community-related protests in the Amazon region. The underlying reasons for the protests are primarily linked to the exploration and development (or potential thereof) of oil and gas in the region and the resulting impact on local communities.

Two recent articles consider the issues that are at the heart of the protests and the competing interests before the Peruvian government. Put simply, the oil and gas in the Amazon belongs to all the people of Peru. But how should it be developed and what role should local communities play in decision making that will impact the lives of their people.

An article in The Guardian ("Rumble in the Jungle," July 4, 2009) considers whether there are "uncontacted tribes" in the region and the chance they could be harmed by oil and gas development. The article points to some who say there are uncontacted tribes near Lot 67, an area that may hold 300 million barrels of oil, as well as others who say such tribes do not exist.

Meanwhile, The Economist ("Oil and Land Rights in Peru: Blood in the Jungle," June 11, 2009) reports that, "For seven weeks [this autumn in the southern hemisphere] tens of thousands of Amazonian Indians blocked roads and rivers across eastern Peru. They seized hydroelectric plants and pumping stations on oil and gas pipelines to try to force the repeal of decrees facilitating oil exploration, commercial farming, and logging in parts of the jungle." The Economist goes on to say, "Peru has seen many conflicts between foreign mining and oil companies and local people, who complain of environmental damage and/or a lack of tangible benefits from these investments. The conflicts are often resolved only after protests, and sometimes bloodshed."

The relationship between natural resources development projects and the rights and expectations of local communities loom large as societies, governments, and the development industry seek to balance all of the competing interests. Dealing with these relationships is likely to be a, if not the fundamental issue as the natural resources sector looks to the future.

Rethinking The "Mining Model"

BUENOS AIRES -- As day two of the Rocky Mountain Mineral Law Foundation International Institute in Buenos Aires got underway it was even clearer that the issue of how the business of mining is conducted with respect to the local communities where it takes place is a huge challenge for the sector.

One of the highlights was a panel entitled, "Resource Development: The Key Role of Law and Institutions."  Adriano Trinidade of Pinheiro Neto Advogados of Brasilia, Brazil, presented a paper written by Elizabeth Bastida of the University of Dundee, describing the traditional assumption in this manner: "Mining per se contributes to development.  The overall development of mining is positive."

  

However, he pointed out that more recent developments -- including community opposition to some mining projects -- has caused many to rethink this assumption.  "Private markets require well-functioning legal systems that provide for stability and predictability.  In addition, the law should support institutions of well-functioning markets," he said.  But this has become more difficult to achieve as private investors have watched several mining projects encounter huge opposition, thus putting investors' money at risk.

Luis Carlos Rodrigo, an internationally recognized mining lawyer from the Lima firm of Estudio Rodrigo, Elias & Medrano, talked about Peru's experience with mining in general and the challenges the industry currently faces.  He began by noting that, "As of 1993 almost all state owned operations have been privitized with great success in terms of production." On the other hand, the success of how companies operate within communities is a more nuanced matter.

Many companies operating in Peru have become leaders in corporate social responsibility, one method of trying to address community relations challenges.  However, he identified some key problems to the long-term well-being of the mining industry in Peru:

• Mining companies are not doing enough to call attention to their community relations efforts; this is a result of many years of maintaining a "low profile" in terms of talking about the mining sector.
• The terrible past of the mining sector; "environmental legacies" in the form of badly polluted and managed sites continue to be "concrete evidence of previous contamination."
• The government has failed to regulate "informal miners," who operate without respect to environmental obligations or standards.  "The government has failed to act because it is a social problem," he said.
• NGOs and "political radicals" have taken advantage of the government's lack of action to oppose mining generally.
• There is an enormous amount of money (collected from the mining companies) waiting to be spent for projects to help the communities in which the mines operate, but the funds have not been spent; the government seems very reluctant to allocate these funds for fear of making one group or another unhappy, he said.

In order to deal with these challenges, the government needs to deal with informal miners while major mining companies need to understand that the media helps set local perceptions and expectations.  There also needs to be a commitment to making sure the benefits of mining are shared with society as a whole.

Finally, he spoke of a crucial element in mining companies' addressing the challenges ahead of them: "Today companies are structured to favor short term decisions and results.  This needs to be changed and bonuses and benefits cannot be based on short term results."  In this regard, companies must understand that it is in the long-term interest of the mining industry to avoid short-term decisions that only result in longer-term problems with the communities in which they operate.

Two New Courses Announced for 2009-2010

The Environmental and Natural Resources Law & Policy Graduate Program (ENRGP) has just announced two new courses:  

• "Community Relations in Natural Resource Development Projects" and 
• "Renewable Energy for the 21st Century: Policy, Law, Technology Markets."
  

The Community Relations course will focus on the key issues of how natural resources development projects can be undertaken in the context of relations with the local communities where the developments reside.  There is a rapidly growing concern in many circles that natural resource development projects should not be started without a firm understanding of how community relations will be managed.  The course will be taught by two globally recognized community relations experts, attorney Xennia Forno and sociologist Guillermo Manrique.  The three-credit course will be offered in a "short course" format from Aug. 10-14, 2009, in Denver.

Renewable Energy for the 21st Century will be taught by the world leading renewable energy experts at the National Renewable Energy Laboratory in Golden, Co.  Among the key issues to be considered are the current policy debates about how best to promote renewables, the role that technology plays in the integration of renewables into the national energy portfolio, and what market-related barriers exist and how to address them.  The three-credit course will be offered in the spring 2010 semester.

Both courses are open to DU JD, LLM, and MRLS students.  Other (non-DU) law and graduate students are also welcome.  The tuition will be about $3,000 for each course.