Board Paper addressed to the Board of Directors of TARPRO OIL Company (TOC)

Order Description The government of Norway as a part of its energy policy is issuing new Licenses to companies for exploration of the Continental Shelf. Formulation of exploration policies is therefore an important part of long-term Norwegian resource management, and these policies have been designed with a view towards making the Norwegian continental shelf attractive to both established and new players who can contribute to efficient exploration. For the authorities, it is important that the licensed area is actively worked. The area comprised by the production license to be awarded is tailored so that companies are awarded only those areas where they have concrete plans. The Oil Minister has made it clear he supports more oil exploration and drilling, possibly even around areas close to natural reserves and coastal cities. This comes at a time when Norway’s carbon emissions keep rising instead of being cut as promised. Environmental pressure groups, local community groups, and some government Ministers are not fully convinced that this is the right approach for the government to take at this time and are concern about the environmental impacts of the expansion in exploration and production of oil and gas. They argue that this new expansion policy makes it difficult to reconcile Norway’s role as a major oil and gas producer and its efforts maintain a credible environmental profile. They believe even with the best precaution, an environmental disaster could result and that expansion at this time is unwise and unsafe. TARPRO OIL Company (TOC) has been operating in Norway for the last 10 years and is one of the companies that are planning to apply for new Licenses for both exploration and production. They have maintained very close relationships with the environmental movement in Norway and would like to continue to be viewed as an environmentally friendly company and proactive in their approach to protection of the environment. This new expansion could ruin their relationship with these groups. They have therefore decided to review their position before launching their bid for the new License. You are a Senior Manager of TOC and have been asked by the Managing Director to prepare an analysis of the situation and make recommendations. This will be in the form of a Board Paper for presentation at the next board meeting in which you will provide an evaluation of the situation and a proposal for action for the company. Required: Write a Board Paper addressed to the Board of Directors of TARPRO OIL Company (TOC) providing an analysis and advice for the company as to whether they should pursue this application for new licenses in order to expand the company’s operations given the current situation. Provide an action plan for the company as a part of the Board Paper. Provide an action plan for the company as a part of the Board Paper. Your proposal should take into account the following issues: • Application of the principles of international environmental law such as o the principle of common but differentiated responsibilities o the precautionary principle, o Sustainable development, o The Polluter-Pays Principle and the prevention of Transboundary Principle o The use/exploitation of environmental resources • Assess the implications on biodiversity, sustainability and health • Critically evaluate implications of this pipeline project on the local and international environment • Critically Analyse the regulatory framework and the impact of this project on (national, local, regional and international) compliance standards • Develop a step-by-step approach to implementing the proposed project giving consideration to opposing views from the local community Your analysis and recommendations should also consider the benefits and potential barriers to successful implementation of this project and measures to be adopted to ensure that the project contributes positively to sustainable development.