Central Government is expected to impose a ‘heavy’ cost on Oil India Limited (OIL) as compensation for the damage the company has done to the environment. The company’s oil well blew up in Assam last month and preliminary reports showed that there had been negligence on the company’s part.
The NGT had imposed an interim penalty of Rs. 25 crore on the oil company for failing to the fire the spread very quickly and did a lot of damage to the environment as it burned down hundreds of trees. The company is likely to pay more for the oil spill in an area of rich flora and fauna and bio diversities around the oil field. According to reports, it should take at least a month to restore the oil field and the area around it. Thereafter will the damage to the surrounding area be assessed and upon assessment will the compensation be determined.
Unfortunately the oil field is also at a close proximity to the Dibru Saikhowa National Park which houses thousands of animals and even more plants and trees. It is also close to the wetlands of Maguri-Motapung besides forested villages. The Assam Government will be encasing the well with cement plugs for prevention of another blow out. The gas leak began on 27th May, 2020 and the gas leak resulted in a massive fire outbreak by 9th June, 2020. This fire forced evacuation of thousands of inhabitants and destroyed the flora and fauna in the region. The fire couldn’t be controlled even by ONGC and Singapore experts.
The company lost two fire fighters during the fire, claim that the fire started during clearing process. The company had outsourced the operation of the oil well to a private operator and is said to have issued a show cause notice to the operator with the intent of terminating them. Even before the tragic event, doubts had been raised if the company had full environmental clearances and if it was following all the norms. The Assam Pollution Control Board have threatened to shut down the oil field and has accused the company of violating environmental norms.
