Fire in Oil Fire at IOL''s Assam well: NGT modifies its order imposing Rs 25 cr fine

The National Green Tribunal has modified its order imposing an interim penalty of Rs 25 crore on PSU major Oil India over its failure to stop fire in Assam's Baghjan oil well resulting in damage to the environment.

A bench headed by NGT Chairperson Justice Adarsh Kumar Goel deferred its June 24 direction to deposit Rs. 25 crore till the actual amount and its disbursement plan are worked out by the committee formed by it.

"We do not find any ground for recall of the impugned order but are inclined to modify it with regard to immediate deposit of Rs.25 crore... Even though the order was passed ex-parte, the basis of the order remains even after considering the present interim applications and after hearing senior counsel. Incident and damage remain largely undisputed," the bench said.

The tribunal said that other enquiries are not a substitute for the information sought to be gathered by it for exercise of its jurisdiction.

Well number 5 at Baghjan in Tinsukia district, had been spewing gas uncontrollably and it caught fire on June 9, killing two of OIL''s firefighters at the site.

Senior advocate Mukul Rohatgi, appearing for IOL, told the NGT that order passed by tribunal did not take into account the fact that on the same issue proceedings have been taken before the Gauhati High Court.

He also said that the tribunal did not take into the fact that the company itself has taken several measures for rehabilitation of the displaced families by setting up relief camps and providing food and other facilities.

The NGT was apprised that OIL has also deposited a sum of Rs. 4.83 crore with the Tinsukia District Magistrate as an interim relief for the affected families.

"The OIL has also set apart a budget of more than Rs. 130 crores towards operation cost in controlling the blow-out at Baghjan. It has also hired international experts for remediation for the damage caused on account of the blow-out and is undertaking requisite remediation and rehabilitation works," Rohatgi said.

He also submitted the direction to deposit the amount of Rs.25 crore with the District Magistrate and committee formed by the tribunal is unnecessary.

Rohatgi said that OIL is public sector undertaking committed to compensate the victims and restitute the environment and it will pay whatever amount required on its liability being ascertained, apart from voluntary steps already taken.

The NGT on June 24 had constituted a committee headed by former high court judge B P Katakey to look into the matter and submit a report in 30 days.

"In view of the prima facie case made out against Oil India Ltd on the extent of damage caused to the environment and biodiversity, damage to both human and wildlife, public health and, having regard to the financial worth of the Company and the extent of damage, we direct the OIL to deposit an initial amount of 25 crore with Tinsukia District Magistrate," the bench had said.

The committee also comprises Member Secretary of Central Pollution Control Board, senior expert from Council of Scientific and Industrial Research, Dr. Sarbeswar Kalita of Guwahati University, former forest Biodiversity Board member Abhay Kumar Johari, Ajit Hazarika, ex-chairman Oil and Natural Gas Corporation Limited among others.

The order came on a plea filed by activist Bonani Kakkar and others alleging failure of the authorities in preventing the blowout of Baghjan oil well.

The petition contended that oil has spilled into the Dibru river causing a film of oil in the river that passes through the Maguri-Motapung wetlands, an important bird and biodiversity area, and along the Dibru Saikhowa National Park.

The plea said that the blow-out (uncontrolled release of crude oil or natural gas) has left behind huge volumes of residue as gas condensate which is a mixture of chemical compounds that are toxic for land and vegetation.

The blowout is not only hazardous to the health of the people but has also affected their livelihood, the plea said.

The Baghjan oil field has a total of 22 producing wells -- 18 crude and four gas. The oil field has been in operation since 2003.

Following the accident, the PCBA (Pollution Control Board of Assam) sent a show-cause notice to the energy major on June 10 seeking details of its operations in Baghjan in the last 15 years, within one week.