Intergovernmental Agreements and Host Government Agreements on Oil and Gas Pipelines

846 Pages·2015·57.48 MB·English

Intergovernmental Agreements
and Host Government Agreements
on Oil and Gas Pipelines
-A Comparison-
EnErgy ChartEr SECrEtariat

Intergovernmental Agreements
and Host Government Agreements
on Oil and Gas Pipelines
-A Comparison-
Intergovernmental Agreements and Host Government Agreements on Oil and Gas Pipelines -A Comparison- | 2015
ENERGY CHARTER SECRETARIAT
2015
ABOUT THE ENERGY CHARTER
The Energy Charter Secretariat is a permanent office based in Brussels supporting the Energy Charter Conference (an intergovernmental
organization) in the implementation of the Energy Charter Treaty.
The Energy Charter Treaty and the Energy Charter Protocol on Energy Efficiency and Related Environmental Aspects were signed in December
1994 and entered into force in April 1998. To date, the Treaty has been signed or acceded to by 52 states, the European Union and Euratom.
The fundamental aim of the Energy Charter Treaty is to strengthen the rule of law on energy issues by creating a level playing field of rules to
be observed by all participating governments, thereby mitigating risks associated with energy-related investment and trade.
In a world of increasing interdependence, it is widely recognised that multilateral rules can provide a more balanced and efficient framework
for international cooperation than is offered by bilateral agreements alone or by non-legislative instruments. The Energy Charter Treaty
therefore plays an important role as part of an international effort to build a legal foundation for energy security, based on the principles of
open, competitive markets and sustainable development.
The Treaty was developed on the basis of the 1991 Energy Charter. Whereas the latter document was drawn up as a declaration of political
intent to promote energy cooperation, the Energy Charter Treaty is a legally-binding multilateral instrument. On 20 May 2015 more than 70
countries, together with the European Union, Euratom and ECOWAS adopted and signed in The Hague the International Energy Charter,
which is a renewed political declaration mapping out common principles for international cooperation in the field of energy.
DISCLAIMER
Information contained in this work has been obtained from sources believed to be reliable. However, neither the Energy Charter Secretariat
nor the work’s author guarantees the accuracy or completeness of any information published herein, and neither the Energy Charter
Secretariat nor the work’s author shall be responsible for any losses or damages arising from the use of this information or from any errors
or omissions therein. This work is published on the understanding that the Energy Charter Secretariat and the work’s author supply the
information but do not attempt to render legal or other professional services.
This study is published without prejudice to the position of Contracting Parties/Signatories of the Energy Charter Treaty or to their rights or
obligations under the Energy Charter Treaty or any other international investment agreement.
© Energy Charter Secretariat, 2015
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B-1200 Brussels, Belgium
English, PDF
ISBN 978-905948-175-6
Reproduction of this work, save where otherwise stated, is authorized, provided the source is acknowledged.
All rights otherwise reserved.
Cover and layout design: Diana Spotinova for Spotinov Print Ltd.
Cover image from the film ‘Topophilia’, kindly provided by Peter Bo Rappmund
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This report was prepared by Ms. Barbara v. Gayling-Westphal, former legal intern at the Energy Charter Secretariat, in cooperation with
the Legal Affairs department of the Energy Charter. Ms. Gayling-Westphal is a PhD Student in Public International Law at the University of
Konstanz, Germany, and Associate Research Fellow at the Institute for Oil, Gas, Energy, Environment and Sustainable Development (OGEES
Institute) at Afe Babalola University, Nigeria.
The report also benefited from discussions held in 2014 and 2015 at the meetings of the Trade and Transit Group, as well as of the Legal
Advisory Task Force.
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Contents
Intergovernmental Agreements and Host Government Agreements on Oil and Gas Pipelines -A Comparison- | 2015
Abbreviations .........................................................................................................................................................................................................................................................................................................................................................9
Covered Pipelines .....................................................................................................................................................................................................................................................................................................................................11
A. Methodology ............................................................................................................................................................................................................................................................................................................................................13
B. Terminology ...............................................................................................................................................................................................................................................................................................................................................15
C. The Gas and Oil Pipelines...............................................................................................................................................................................................................................................................................................17
1. Pipeline Projects in General ...........................................................................................................................................................................................................................................................................................18
2. The Pipelines Covered by this Report and their Respective Agreements ................................................................................................................................18
D. The Different General Approaches to Governing Pipeline Projects ...............................................................................................................................29
E. Standard of Comparison ................................................................................................................................................................................................................................................................................................33
1. The Model Agreements for Cross-Border Pipelines ...........................................................................................................................................................................................................34
2. The Draft Transit Protocol ..................................................................................................................................................................................................................................................................................................35
F. The Content of Pipeline Agreements and Comparison ................................................................................................................................................................................37
1. General Obligations of the States ......................................................................................................................................................................................................................................................................38
2. Acting and Obligated Entity ........................................................................................................................................................................................................................................................................................40
3. Entry into Force, Expiration and Termination of Agreements ........................................................................................................................................................................40
4. The Relationship of the Agreements with International Law .........................................................................................................................................................................46
5. The Relationship of the Agreements with National Law .........................................................................................................................................................................................50
8. Establishment of a Project-Specific Body.............................................................................................................................................................................................................................................58
9. Constructing and Operating Entity ................................................................................................................................................................................................................................................................59
10. Transit and Non-Interruption of Energy Flows .......................................................................................................................................................................................................................64
11. Rights on Land ..................................................................................................................................................................................................................................................................................................................................67
12. Standards ....................................................................................................................................................................................................................................................................................................................................................71
13. Security ...........................................................................................................................................................................................................................................................................................................................................................81
14. Taxes .....................................................................................................................................................................................................................................................................................................................................................................83
15. Tariffs ....................................................................................................................................................................................................................................................................................................................................................................86
17. Funding/Financing ...................................................................................................................................................................................................................................................................................................................90
18. Force Majeure and Liability/Responsibility ...................................................................................................................................................................................................................................91
19. Local Content ......................................................................................................................................................................................................................................................................................................................................93
G. Common Principles and (Regional) Specificities ......................................................................................................................................................................................................95
H. Conclusions ..................................................................................................................................................................................................................................................................................................................................................97
I. Appendices..................................................................................................................................................................................................................................................................................................................................................101
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Contents
Annex 1 .......................................................................................................................................................................................................................................................................................................................................................................105
Annex 2 .......................................................................................................................................................................................................................................................................................................................................................................113
Annex 3 .......................................................................................................................................................................................................................................................................................................................................................................119
Annex 4 .......................................................................................................................................................................................................................................................................................................................................................................153
Annex 5 .......................................................................................................................................................................................................................................................................................................................................................................215
Annex 6 .......................................................................................................................................................................................................................................................................................................................................................................233
Annex 7 .......................................................................................................................................................................................................................................................................................................................................................................239
Annex 8 .......................................................................................................................................................................................................................................................................................................................................................................247
Annex 9 .......................................................................................................................................................................................................................................................................................................................................................................281
Annex 10 ..................................................................................................................................................................................................................................................................................................................................................................317
Annex 11 ..................................................................................................................................................................................................................................................................................................................................................................355
Annex 12 ..................................................................................................................................................................................................................................................................................................................................................................397
Annex 13 ..................................................................................................................................................................................................................................................................................................................................................................437
Annex 14 ..................................................................................................................................................................................................................................................................................................................................................................481
Annex 15 ..................................................................................................................................................................................................................................................................................................................................................................527
Annex 16 ..................................................................................................................................................................................................................................................................................................................................................................537
Annex 17 ..................................................................................................................................................................................................................................................................................................................................................................543
Annex 18 ..................................................................................................................................................................................................................................................................................................................................................................555
Annex 19 ..................................................................................................................................................................................................................................................................................................................................................................643
Annex 20 ..................................................................................................................................................................................................................................................................................................................................................................735
Annex 21 ..................................................................................................................................................................................................................................................................................................................................................................747
Annex 22 ..................................................................................................................................................................................................................................................................................................................................................................807
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