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Supreme Court Allows Oil India to Challenge Rejection of Drilling Proposal in Dibru-Saikhowa National Park

The Supreme Court has granted Oil India Ltd the opportunity to withdraw its previous application and submit a new petition challenging the government's rejection of its Extended Reach Drilling proposal in Dibru-Saikhowa National Park. The case revolves around the company's efforts to access hydrocarbon reserves located beneath the park while adhering to environmental regulations. Senior advocate Rakesh Dwivedi argued for the urgency of the matter, emphasizing that the drilling would occur outside the park boundaries. The company is contesting the Ministry of Environment's refusal to approve the necessary forest land diversion, claiming that its drilling operations do not equate to traditional mining. This development could have significant implications for hydrocarbon exploration in protected areas.
 

Supreme Court's Decision on Oil India's Proposal

An image of Dibru-Saikhowa National Park. (photo:@RGSustain1/X)


New Delhi, Sep 2: The Supreme Court has permitted Oil India Ltd (OIL) to withdraw its previous application and submit a new petition contesting the government's denial of its Extended Reach Drilling (ERD) proposal aimed at tapping hydrocarbon reserves beneath Assam's Dibru-Saikhowa National Park.


A bench led by Chief Justice Surya Kant, along with Justices Joymalya Bagchi and V Mohana, heard arguments from senior advocate Rakesh Dwivedi, representing OIL, who requested an expedited hearing on the issue.


“We prefer to resolve this matter entirely. If there is a new issue, please file a new petition, and we will consider it. The registry cannot process the previous application due to an existing order,” stated the Chief Justice.


Dwivedi explained that the application was part of the ongoing TN Godavarman Thirumulpad vs Union of India case, which has significantly influenced forest conservation laws in India.


He emphasized the urgency of the situation, noting that the proposed drilling site is adjacent to the national park.


“This is critically urgent as the site is near a national park. All necessary permissions have been obtained, yet the government feels constrained by a 2023 court ruling that prohibits mining. However, this is not mining; the pipeline will be laid outside the park, drilling 4,000 meters underground before extending horizontally,” Dwivedi clarified.


OIL is contesting the Forest Advisory Committee's ruling and the Ministry of Environment, Forest and Climate Change's (MoEFCC) refusal to approve the diversion of 0.069 hectares of forest land for the project in Tinsukia district.


The company contends that the authorities misinterpreted the Supreme Court's April 26, 2023 ruling that bans mining within national parks and wildlife sanctuaries and within a kilometer of their perimeters.


OIL asserts that hydrocarbon exploration via Extended Reach Drilling should not be classified as traditional mining.


The proposed project would keep the drilling equipment outside the Dibru-Saikhowa National Park, while the wells would reach hydrocarbon deposits located approximately 3,500 to 4,000 meters below the surface.


OIL also referenced earlier Supreme Court decisions from 2017, which allowed the extraction of hydrocarbons beneath the national park using ERD technology, provided certain conditions were met.


Additionally, the company pointed to the Eco-Sensitive Zone notification for Dibru-Saikhowa National Park issued in January 2020, which defines the eco-sensitive zone as extending from zero to 8.7 kilometers around various sections of the park's boundary.


OIL mentioned that it received environmental clearance in May 2020 for drilling and testing hydrocarbons at seven sites beneath the national park, although separate prior approval is necessary for drilling on forest land.


In its application, OIL seeks to overturn the MoEFCC's order from August 2, 2024, and the minutes from the Forest Advisory Committee meeting on July 4, 2024.


The company is requesting the Centre to approve the use of 0.069 hectares of forest land for Extended Reach Drilling beneath Dibru-Saikhowa National Park from the Baghjan Petroleum Mining Lease area in Tinsukia district.