MINISTRY OF ENVIRONMENT AND NATURAL RESOURCES OF UKRAINE
STATE GEOLOGICAL SURVEY
NORTH STATE REGIONAL GEOLOGICAL ENTERPRISE "Pivnichgeologiya"
CERTIFICATION CENTRE ON DEPTHS MANAGEMENT IN UKRAINE
Copy number ________
"APPROVED"
Head of CCDMU
______________ V. Punko
December 5, 2004
STANDARD
INVESTMENT GEOTOXICOLOGICAL EXPERTISE, 2004
(translation Evgenia Deyneka)
CONTENTS
1 Scope
2 Terms and definitions
3 Functions and Responsibilities
3.1 Client
3.2 Representative of expertise object
3.3 Assessor
4 Expertise process
4.1 General positions
4.2 Planning
4.3 Collection of information and validation
4.4 Expertise
5 Report preparation
5.1 Report contents
5.2 Report Form
5.3 Report Distribution
Bibliography
Introduction
Organizations of all forms of ownership are interested in knowing the investment-geotoxicological attractiveness related to sites, on which organizations are located, and its activity, with possible acquisition of site or organization, as well as issuing the package of securities of organization on the basis of investment-geotoxicological expertise (hereinafter - IGE).
Study of these issues and consequences associated with them for business can be carried out with the help of IGE for sites and organizations. Such expertise can be carried out as separate operation for acquisition of a site or divestiture of property rights of insolvent debtor and can also be part of a wide process of business assessment.
The standard specifies basic requirements for IGE and is the basis for harmonization of used terminology and for structured, concerted, transparent and objective approach to expertise.
The standard can be used by any organization, including small and medium-size enterprises operating in any place on the planet.
The standard can be used by an organization during both own and external assessment, as well as with or without third party involvement. It is expected that users of the standard will be representatives from industry, past, present or potential users of sites and organizations having financial interest in industry or in sites (such as banks, insurance companies, investors and owners of sites). Information used in IGE process can be obtained from sources, as follows: results of audits of environmental management system and anthropogenic deposits investigation, exploration and prospecting works, audits of conformity with regulations and environmental impact assessment, environmental performance or site exploration.
Conclusions of IGE should be confirmed with objective data. In case of absence of confirmed information IGE assessors ought to receive legal decision on available information.
The standard does not establish guidelines for exploration or restoration of sites, which, on request of a customer, carry out according to other standards or with using other procedures.
1 Scope
The standard specifies guidelines for IGE in process of identification of geotoxicological/environmental aspects and conclusions and provides determination of their consequences on business.
The standard also specifies functions and responsibilities of expertise participants (clients, assessors and representatives of expertise objects), stages of expertise process (planning, collection and validation of information, as well as assessment and validation).
2 Terms and definitions
The Standard uses the following terms and definitions.
2.1 Object investment-geotoxicology expertise – site or organization subject to investment-geotoxicology expertise.
2.2 Assessor - competent person, who has authority to conduct or to participate in investment-geotoxicology expertise.
Note: Assessor can be either an employee or outside person invited by organization that is the object of investment-geotoxicology expertise.
2.3 Business consequence – actual or potential impact (financial or other, whether positive or negative, qualitative or quantitative) on organization of identified and assessed issues.
2.4 Client – organization giving a request for IGE.
Example - Owner of a site, object investment-geotoxicology expertise or any other party.
2.5 Environment - external environment in which organization is acting, including air, water, land, natural resources, flora, fauna, humans and their interaction.
Note: In the standard the term environment covers both conditions within organization and the environment.
2.6 Geotoxicology aspect – element of geological processes impact on the environment.
Note - Geotoxicology aspect can concern past, present and future activity of organization, output products, rendering of services.
2.7 Investment-geotoxicology expertise – process of objective identification of geotoxicology aspects, environmental issues and determination of their consequences for business and commercial activity, as the result of past, present and expected activity – determination of economic indexes of expertise object.
Note: determination of consequences for business and commercial activity of an organization – determination of economic indexes of expertise object is the basis to develop investment projects at client discretion.
2.8 Environmental impact – any change of the environment of negative or positive character, entirely or partially ensuing from environmental activity of organization.
2.9 Environmental issue – problem, for which verified and confirmed information about geotoxicology aspects does not meet the criteria, and can provide emergence of financial obligations or advantages, impact on public image of client or object of environmental assessment or other costs.
2.10 Environmental Management System – part of organization management system aimed at developing and implementing of environmental policy and management of its environmental aspects.
Note 1: Management system is a set of interrelated elements used to establish policy, objectives and to achieve those objectives.
Note 2: Management system includes organizational structure, planning activity, division of responsibility, practices, procedures, processes and resources.
2.11 Investigation - sampling or testing with using special tools and / or by physical influence.
2.12 Organization – company, corporation, firm, enterprise, authority or institution, or their part or association legally established or not, public or private, which functions and has direction.
Note: In case, if organization consists of more than one functional department, each of these departments can be defined as an organization.
2.13 Representative of the object – the person authorized to represent object of environmental assessment.
2.14 Site – place with defined geographical boundaries, on which organization is acting.
Note: Geographic boundaries can pass over land and water and includes above/under natural or man-made structures.
2.15 Validation - activity, according to the results of which the assessor determines that received information is accurate, reliable, sufficient and meets objectives of expertise.
3 Functions and Responsibilities
3.1 Client
Functions and responsibilities of a client are as follows:
a) to determine expertise necessity;
b) to determine expertise objectives;
c) to determine scope and criteria of expertise, if necessary - with assessor;
d) to choose an assessor (s);
e) to give directives to assessors;
f) to determine which parts of expertise (planning, collection and validation of information, final expertise and submission of a report) can be carried out by assessor, and which are in the sphere of responsibility of a client that can require to engage for identification and coordination of other assessor;
g) to identify and to establish prior areas of expertise, if necessary;
h) to contact with representative of expertise object, if it is necessary to ensure full co-operation and start of the process;
i) to approve plan of operation;
j) to delegate appropriate authority to assessor (s) and to provide with resources necessary to carry out the expertise;
k) to provide assessor with information necessary to assume obligations related to the expertise;
l) to receive and to distribute results of expertise.
Before presentation of expertise results to a third party client has to make a decision whether to inform the representative of environmental assessment object.
3.2 Representative of expertise object
Duties of representative of expertise object include as follows:
a) to provide access for assessors and other participants of expertise to information related to expertise objectives;
b) to inform relevant employees of organization and other participants about expertise process;
c) to provide or to facilitate expertise procedures;
d) to ensure assistance of staff during expertise process at the request of assessor, and
e) to ensure safe working environment for assessor.
At client discretion representative of expertise object can take part in determining a scope of using assessment and assessment plan and receive expertise results.
Representative of expertise object does not take part in expertise, if it is carried out without prior familiarization with expertise object or if for a site and/or organization could not be set responsible party.
3.3 Assessor
Functions and responsibilities of assessor differ from functions and responsibilities of auditor. If auditor verifies available information as regards with specified criteria, assessor at first has to gather necessary information and then assess the information to determine business consequences.
To carry out IGE assessor should have necessary knowledge and experience, as well as common sense that organization expects from any assessor in such circumstances. Assessor ought to be reasonable and keep confidentiality, in case, if it does not conflict with active legislation and job descriptions.
Responsibilities and activity of assessor or head of a group of assessors, who is appointed, in case, if group consists of more than one person, are as follows:
a) to help a client, if necessary, in determining objectives, scope, including identification and selection of the priority of expertise scope and criteria;
b) to conform with a client a method of expertise and report form;
c) to develop expertise plan and to receive approval from a client and, if necessary, from representative of expertise object;
d) to draft out and keep in working condition documents, such as, for example, checklists and protocols;
e) to have considerable experience and, if necessary, to form a group of experts for carrying out an expertise;
f) to receive approval of a client concerning persons, who will take part in expertise;
g) to receive initial information;
h) to appoint persons responsible for execution of specific elements of expertise;
i) to collect and to validate information in accordance with plan of expertise;
j) to identify and to assess expertise;
k) to identify business consequences (on client request) and
l) to prepare and to submit a report to a client, if required.
The standard does not specify requirements for expertise of competence and qualification of assessor, but for qualitative expertise the assessor must have proper:
- Education;
- Qualification and;
- Experience.
Assessor should also know and be competent in:
- Relevant laws, regulations and documents;
- Natural history science and technology;
- Economics and related business;
- Technical and geotoxicological aspects of commercial transactions;
- Maintenance operations, and
- Expertise methods.
4 IGE process
4.1 General positions
IEG process includes planning of expertise, collection and validation of information, final assessment of information and preparation of expertise report.
The process can also include identification of business opportunities at client request.
4.2 Planning
4.2.1 General positions
After reaching an agreement on IGE, it is necessary to draw a plan of expertise. Planning includes identification and agreement of objectives, scope and criteria of expertise and drawing a plan.
4.2.2 IGE Objectives
IGE is to be accorded with objectives set by a client.
IGE objectives can include:
- Identification, collection and validation of information about geotoxicology aspects and issues associated with a site and / or organization;
- Identification business consequences caused by environmental problems associated with a site and / or organization (at client request).
4.2.3 Expertise scope
It is established limits and basic issue of expertise scope.
At client discretion scope of expertise can include or cannot include determination of business consequences.
With expansion of assessment scope it is necessary to consider:
- categories of geotoxicology aspects that have to be assessed;
- any environmental impacts of expertise object, which can affect other sites or organizations;
- physical boundaries of expertise object (e.g. site or part of a site);
- adjoining or closely located sites (if necessary);
- organizational limits, including relationships with contractors, suppliers and other organizations (e.g. providing waste disposal off-site), individuals - former owners or activity, which involves the above subjects;
- period of time for which expertise is being carried out (e.g. past, present or future);
- activity of expertise object and / or client (e.g. activity currently continued, plans to change, to expand, to curtail, to restore);
- to change criteria of expertise; and
- marginal costs in the result of expertise for business.
Scope can expand or limit any relevant sites and organizations included into expertise.
At client request scope can be amended after start of expertise.
Any change has to be recorded in protocols and all persons concerned should be informed.
Client can identify elements within the established scope, on which should be directed special attention during expertise.
Priorities are usually established on the basis of accepted facts.
When selecting priorities assessor can does not take into account the whole scope during expertise process.
4.2.4 Expertise criteria
Criteria should be identified as regards to information being collected and intended for expertise.
Criteria of expertise can include the following:
- existing and actually foreseen requirements of legislation (e.g. agreements, permissions, laws and regulations on environmental protection);
- other requirements for environment protection, specified by a client (e.g. established policy and procedures, special environmental conditions, management practices, systems and requirements of specifications, practices and performance of industrial and professional codes);
- requirements, claims or possible claims of interested third parties (such as investment or insurance companies, financial organizations) and
- technological requirements.
4.2.5 Expertise plan
If applicable, expertise plan can include the following items:
- Identification of a client, representative of IGE object and assessor (s);
- Objectives and scope of expertise;
- Criteria of expertise;
- Priority of expertise scope;
- Working language of expertise and reports;
- Schedule with specifying dates and duration of expertise;
- Necessary resources (e.g. human, financial, technological);
- List of expertise procedures;
- Summary of reporting documents such as checklists, protocols and other working documents;
- Report requirements and;
- Confidentiality requirements.
Number of possible limitations that can affect expertise can also be specified in expertise plan.
Possible limitations include:
- period of time for expertise;
- available resources for expertise;
- access to relevant areas;
- available information; and
- ability to communicate with staff of organization or access to relevant documents.
Client has to approve expertise plan.
Expertise plan should be given, if necessary, representative of IGE object.
4.3 Collection of information and validation
4.3.1 General positions
Expertise should be based on validated information about geotoxicology aspects received by examining existing documents and records (before and during site visit), analyzing organization activity and physical conditions as well as results of polling. Process of collecting information about geotoxicology aspects has to meet the objectives, scope and plan of expertise. During collection of information, assessor should receive evidence that it is sufficient, is relevant to the subject and is accurate for objectives of expertise. Collected information can be used only during the period of its collection, since change in conditions can affect its accuracy.
Assessor has to collect sufficient information in order to data of less importance, which can affect expertise conclusions, will be taken into account.
Examples of information that can be considered during the IGE:
- site location;
- physical characteristics (e.g., hydrogeological);
- expertise object, adjoining sites:
- used land;
- equipment, processes and operations;
- susceptibility of a site;
- raw materials, semi-finished products and products (including hazardous materials);
- storage and processing of materials;
- emissions and pollutants released into air, water and soil;
- waste storage, its treatment and disposal;
- measures to prevent fire, waste discharge and other measures to prevent accidents;
- storm and flood;
- protection of health and safety of employees in organization;
- legal, organizational and other requirements, its non-compliance;
- external partnership.
Not all of the abovementioned examples have to be considered for a particular site or organization; it may also be considered other information.
4.3.2 Analysis of existing documents and records
Assessor has to gather and examine available documents and reports in order to have sufficient knowledge about site and / or organization and does not repeat the previous examinations.
Examples of documents and sources that should be considered during IGE:
documents;
sources;
Maps, plans and photographs;
Past records;
Governmental agencies (national, local, regulatory, planning);
Geological and hydrogeological records;
Archives;
Geotechnical records;
Public utilities;
Records about goods transportation to warehouses;
Trade publications in the media;
Security data;
Rules of production practice;
Plan of works execution;
Emergency services;
Procedures and results of monitoring;
Insurance companies;
Records of maintenance;
Domestic inventories;
Environment, health and security departments;
Official registers / records (e.g. dumps, contaminated sites);
Technical department;
Plans for contingencies, as well as feedback;
Production department;
Records of training in the field of person health and safety as well as environment protection;
Half-finished product department;
Records of accidents;
Research and development department;
Authorization / license / notification;
Property disposition department;
Statutes;
Training department;
Audit reports and other reports;
Department on legislative acts;
Records about failures and inconsistencies;
Financial and accounting departments;
Complaints;
Public-relations department;
Organizational policy, plans and management systems;
Personnel department;
Insurance policies;
Medical services;
Contracts with suppliers and other external partners;
Planning department.
Not all of the abovementioned documents and sources have to be considered for each particular site or organization; information can also be received from other documents and sources.
In order to confirm available specific data, it is necessary to examine many sources of information.
Information can be received from IGE object or from any other source.
Staff of IGE object should not cover up necessary information.
If it happens, it is necessary to specify these limitations in investigation.
Other limitations during examination can be period of time, cost and confidentiality.
During collecting information assessor has to keep properly all working papers.
Assessor has to record kind, source, quality and reliability of information during its collection and examination that provides accuracy of information with more efficiency.
4.3.3 Analysis of activity and physical conditions
Assessor has to examine and record data about physical condition of a site or organization, caused by its past or present activity.
Examples of elements that should be analyzed during IGE
Activity:
- Waste processing;
- Loading and unloading operations;
- Processing operation;
- Waste water treatment;
- Control of air spread;
- Water discharge;
- Use of a site.
Physical conditions:
- Units for wastewater treatment and sewage systems;
- Systems of water heating and cooling;
- Wastewater discharge through pipes and ventilation system;
- Receivers, drains and dirt collection bowls;
- Tanks / reservoirs;
- Provision of public services;
- Noise, light, vibration or heat;
- Smell, dust, smoke, particles, substances;
- Surface water and landscape of a site;
- Surroundings of a site and adjoining sites and organizations;
- State of soil and groundwater;
- Painted and unpainted surfaces;
- Factors affecting flora and fauna;
- Dumps;
- Buildings, plants and equipment;
- Material storage;
- Hazardous materials, products and substances;
- Fire and emergency control equipment.
Not all of these elements have to be analyzed for each particular site and organization; it can also be analyzed another elements.
During analyzing activity and physical conditions of organization, it is necessary to take into account information received from IGE sources.
Investigation should be limited to those areas which can be found out by natural way.
Assessor should, if possible, support its investigation with photos and / or written reports in accordance with expertise plan.
Assessor should confirm physical boundaries of a site and limits of any related actions in accordance with expertise scope and plan.
If assessor does not get access to any part of a site or organization of expertise object, this restriction have to be recorded in a report of expertise.
While visiting / inspecting a site assessor has to fulfill all the necessary security requirements.
4.3.4 Polling
4.3.4.1 Aim of a polling
Polling is a tool to gather information in addition to already received one during analysis of existing documents and records and consideration of physical conditions of a site and organization activity.
4.3.4.2 Subjects of a polling
In case of receipt of positive decision of a client and representative of IGE, object staff responsible for or involved into examined activities and processes can be polled.
Polling can concern, if it is possible, both individuals/groups have or not have relation to the investigated site and organization, if information received from them, can be useful for expertise.
Examples of subjects of a polling:
- Managers;
- Environmentalists;
- Staff responsible for organization activity;
- Operators;
- Maintenance personnel;
- Fired and personnel who changed posts;
- Agency on Environmental Management;
- Fire services;
- Services of emergency evacuation;
- Health Department;
- Municipal authorities;
- Organizations around the organization being examined;
- Consultants of legal services;
- Internal staff on health and safety protection;
- Contractors;
- Household staff;
- Former owners.
Not all of the abovementioned subjects have to be polled for each particular site and organization; it can also be polled other persons and organizations.
4.3.4.3 Content of questions
Among questions for subjects of polling can be the following:
- request to describe kind of work and methods of its implementation at present and in the past;
- request to give information about site utilization, conditions of its utilization, as well as its history with particular reference to events that had, have or may have an environmental impact.
4.3.4.4 Restrictions
Respondents do not have to answer the questions and can give partial answers because of limited knowledge.
Assessors have to accordingly qualify the received information.
Assessor should make sure that absence of information from respondents is not caused by lack of communication, including language and idioms.
4.3.4.5 Conclusion
Results of polling have to be summarized.
Any conclusion has to be confirmed, if possible.
4.3.5 Validation of information
When information is collected it should be checked for accuracy, importance and relevance to the objectives of IGE.
Consequences for expertise in case of appearance of any information limits have to be identified and given to the client immediately, as soon as possible.
If it is received important information that is beyond scope of expertise, but can facilitate implementation of expertise objectives, it has to be given to the client.
In case of absence of verified information, it is necessary to ask IGE assessor to give professional assessment of available information and conclusions.
Preferably, however, to draw conclusions on the basis of verified information.
4.4 Expertise
4.4.1 General issues
Acquisition of confirmed information about geotoxicology aspects is the beginning of expertise process, which consists of two stages.
These stages can be carried out by different participants, especially if client also requires another expertise (technical, legal or financial) for business purposes.
4.4.2 Identification of environmental problems
For identification of environmental problems the confirmed information about geotoxicology aspects is compared to established criteria.
Environmental problems are identified in case if the confirmed information does not meet the established criteria and can cause the following negative effects:
- for responsibility or privilege of organization;
- for public consequence of expertise object or have other negative consequences.
Problems that can be of less importance for business consequences can be important for the environment and vice versa.
In the result it is necessary to identify environmental issues that are important to the client.
4.4.3 Identification of business consequences
Identification of business consequences is carried out, if it is included into objectives and scope of expertise.
Business consequences have actual or potential impact (financial or other, positive or negative, quantitative or qualitative) on identified and environmental issues.
This expertise usually includes drawing conclusion about consequences of environmental issues associated with objectives of IGE.
At this stage it is calculated costs concerned with consideration of business consequences as well as it is identified and examined their impact for public consequence of IGE object and the client.
When drawing conclusion, it is necessary to consider:
- present or possible outcomes of mitigating measures or actions enable correcting or preventing environmental damage;
- current or possible in the future liabilities (public or private), for example, in the result of non-compliance with acting laws and other important requirements or upcoming changes;
- negative impact on public consequence of expertise object or client;
- disagreement with general policy of the client or expertise object or other requirements of the client;
- assessed consequences of applying such changes or actions;
- technological improvement and;
- period of time during which consequences can be relevant (for example, in relation to increase in activity or use of the new legislation).
In case if conclusions are limited due to lack of information, it has to be recorded, and any opinion has to be appropriately qualified.
The result of this stage of expertise has to be presented as a list of business consequences, if it complies with terms of expertise plan.
5 Report preparation
5.1 Report content
Assessor is responsible for report content in which the information has to be presented in such a way that helps the client to understand significance of established data.
In order to do it, the assessor should be able to distinguish fact from unreasonable opinion, identify precisely the basis of established data and indicate relative uncertainty associated with any established data.
The client should be provided with information as follows:
- Identification of sites or organizations;
- Name (s), first name (s) of assessor (s) and author of a report;
- Objectives, scope and criteria of expertise;
- Speed of expertise, dates of its beginning and termination;
- Any limitations in obtaining the necessary information and their consequences for expertise;
- Any limitations, exclusions, correction and deviation from agreed scope of expertise;
- Review of collected information in the process of investigation and results of expertise.
Under agreement between client and assessor it can also be provided information as follows:
- Name and first name of the client;
- Name and first name of the representative of IGE object;
- Personnel carry out the expertise;
- Schedule of expertise;
- Information about procedures used for expertise;
- Data of reporting documents, checklists, protocols and other used documents;
- Methods of assessment and grounds for expertise;
- Results of expertise, in case, if it was carried out by assessor;
- Recommendations on possible next steps;
- Confidentiality requirements;
- Conclusions
In case, if it is included in scope of expertise, report should also be provided with sufficient documentation, including references and key information as additional evidence of data presented in the report, as well as for use in re-examination. Assessor has to qualify any opinion as to which there are restrictions, for example, because of lack of information.
5.2 Report form
Priority of the client or other protocols can require submission of a report only in oral form. Otherwise, the report has to be submitted in writing.
Examples of IGE report:
a) Final summary report;
b) Introduction:
- Name and first name of the client,
- Sites or organization subjected to expertise,
- Name and first name of the representative of expertise object,
- Name and first name of the assessor (s),
- Start and end dates of expertise;
c) Objectives and scope of expertise:
- Instructions of the client,
- Boundaries of a site and organization;
d) Criteria for expertise;
e) Process of expertise;
f) Information:
- Sources
- Limitations and potential consequences
- Summary;
g) Conclusions:
- Environmental consequences
- Consequences for business and commercial activity as the result of past, present and expected activity – determination of economic indexes of expertise object.
5.3 Report distribution
Report is exclusive property of a client. Therefore, assessor (s) and everyone who receives the report should keep confidential and take precautions. Report distribution is carried out at client discretion, who can give a copy of a report to assessor.