SC seeks Centre, Assam’s reply on Oil India’s plan to drill beneath Dibru-Saikhowa

The Supreme Court on November 3 sought responses from the Ministry of Petroleum and Natural Gas and the Assam government on Oil India Limited’s plea challenging the rejection of its proposal to extract hydrocarbons beneath Assam’s Dibru-Saikhowa National Park through Extended Reach Drilling (ERD).

The public sector undertaking has challenged the refusal to grant approval for the use of 0.069 hectares of forest land in Tinsukia district for the proposed project. Oil India has maintained that the drilling infrastructure would be located outside the national park, with underground drilling reaching hydrocarbon deposits at depths of around 3,500 to 4,000 metres.

A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana took note of senior advocate Rakesh Dwivedi’s submissions that the matter was urgent as the company was unable to carry out exploration work in the area.

Appearing for Oil India, Dwivedi said the area near the national park was estimated to contain around three per cent of the country's total hydrocarbon reserves. He argued that Extended Reach Drilling would be undertaken at depths exceeding 4,000 metres and would not affect the park’s flora and fauna.

The bench indicated that it could consider permitting the exploration based on research and development reports from the concerned authorities, including the Ministry of Environment, Forest and Climate Change. The matter will be taken up after November 17.

Oil India has argued that Extended Reach Drilling should not be treated as conventional mining. According to the company, the method involves drilling from locations outside a protected area and extending the well horizontally underground to reach hydrocarbon deposits beneath it.

The company has challenged the Forest Advisory Committee’s decision and the subsequent rejection by the environment ministry of its proposal to use 0.069 hectares of forest land. It has contended that the authorities wrongly applied the Supreme Court’s April 26, 2023, order prohibiting mining within national parks and wildlife sanctuaries and within one kilometre of their boundaries.

Oil India has also referred to the Supreme Court’s 2017 orders that permitted it, subject to conditions and safeguards, to extract hydrocarbons beneath Dibru-Saikhowa through Extended Reach Drilling. It said the Standing Committee of the National Board for Wildlife had recommended the proposal and that the court had subsequently allowed underground extraction, subject to compliance with environmental and wildlife protection conditions.

The company further cited the January 2020 notification declaring the eco-sensitive zone around Dibru-Saikhowa National Park, which extends from zero to 8.7 kilometres around parts of the park’s boundary. It said environmental clearance was granted in May 2020 for drilling and testing hydrocarbons at seven locations beneath the national park, although separate prior approval was required for the use of forest land.

Oil India has sought the cancellation of the environment ministry’s August 2, 2024, order and the minutes of the Forest Advisory Committee’s July 4, 2024, meeting. It has also asked the court to direct the authorities to grant approval under Section 2(1)(ii) of the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980, for the proposed use of 0.069 hectares of forest land for Extended Reach Drilling from the Baghjan PML in Tinsukia Wildlife Division.

The latest hearing follows the Supreme Court’s September 2 order allowing Oil India to withdraw an interim application in the pending 1995 case, T.N. Godavarman Thirumulpad vs Union of India, and file a fresh petition challenging the rejection of its proposal.

During that hearing, Dwivedi had argued that the proposed drilling was not conventional mining and that the well would be located outside the park before extending underground. The Chief Justice had said the company could approach the court with a fresh petition if there was a new cause of action.

The fresh plea now places Oil India’s challenge to the environmental authorities’ decision before the court. The Centre and the Assam government have been asked to respond, with the matter scheduled for consideration after November 17.