KPO hasn’t succeeded yet in appealing the court decision on recovery of 4,6 bln.KZT for environmental pollution.

The oblast court Press Service reported to “Interfax-Kazakhstan” agency that West-Kazakhstan oblast Civil and administrative appellate division remained unchanged the decision of the court below on recovery from Karachaganak Petroleum Operating (KPO) of 4,6 bln.KZT (149,62/$1) for environmental pollution.

In June, the West-Kazakhstan oblast Specialized Interdistrict Economic Court made the decision on recovery of the specified amount as the compensation of environmental damage for unauthorized emissions. However, the KPO consortium appealed the specified court decision and filed the appeal petition to judicial board of the West-Kazakhstan oblast court.

In its appeal petition, KPO has requested the first instance court to cancel with discontinuation of the proceeding or remaining the plaintiff’s application without consideration, having motivated it that the court violated the procedural rules and regulations.  Civil and administrative appellate division of the oblast court admitted the decision of the first instance court as conforming to the requirements of Civil Procedure Code and did not find any groundings for its cancellation or amending.   By its resolution it remained the first instance court decision unchanged, and the complaint rejected.

It has been mentioned in the Press Service, that in turn, KPO representatives filed the cassational appeal to the oblast court appeal body.

Claim for compensation of environmental damage as a result of unauthorized and excess air pollutant emissions has been filed by Zhaiyk-Kaspii Ecology Department.

These violations were revealed in the course of unscheduled audit for compliance with ecological legislation in the company.  As a result of inspection it was established that the unauthorized and excess emissions from stationery sources made 214 tons for the 4th quarter of 2010.  Meanwhile, within the I-III quarters of 2011, the unauthorized and excess emissions of the company from stationery sources made 60 tons, the unauthorized and excess emissions from gas flaring – 43 tons.

The international consortium KPO implements the Karachaganak field development according to the PSA, signed in 1997 and calculated for 40 years.    Karachaganak field – is one of the the world’s largest, oil reserves make 1,2 bln. tons, gas – 1,35 tln.cubic meters.

The consortium participants are BG Group (owns 29,25% of shares), Eni (29,25%), Chevron (18%), LUKOIL (13,5%) and KazMunayGas (10%).