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PBR » Topics » We are subject to numerous environmental and health regulations that have become more stringent in the recent past and may result in increased liabilities and increased capital expenditures.This excerpt taken from the PBR 20-F filed May 22, 2009. We are subject
to numerous environmental and health regulations that have
become more stringent in the recent past and may result in
increased liabilities and increased capital
expenditures.
Our activities are subject to a wide variety of federal, state
and local laws, regulations and permit requirements relating to
the protection of human health and the environment, both in
Brazil
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and in other jurisdictions in which we operate. In Brazil, we
could be exposed to administrative and criminal sanctions,
including warnings, fines and closure orders for non-compliance
with these environmental regulations, which, among other things,
limit or prohibit emissions or spills of toxic substances
produced in connection with our operations. We have experienced
oil spills in the past that resulted in fines by various state
and federal environmental agencies, and several civil and
criminal proceedings and investigations. See Item 8.
“Financial Information—Legal Proceedings.” Waste
disposal and emissions regulations may also require us to clean
up or retrofit our facilities at substantial cost and could
result in substantial liabilities. The Instituto Brasileiro
do Meio Ambiente e dos Recursos Naturais Renováveis
(Brazilian Institute of the Environment and Renewable
Natural Resources, or IBAMA) routinely inspects our oil
platforms in the Campos Basin, and may impose fines,
restrictions on operations or other sanctions in connection with
its inspections. In addition, we are subject to environmental
laws that require us to incur significant costs to cover damage
that a project may cause to the environment. These additional
costs may have a negative impact on the profitability of the
projects we intend to implement or may make such projects
economically unfeasible.
As environmental regulations become more stringent, and as new
laws and regulations relating to climate change, including
carbon controls, become applicable to us, it is probable that
our capital expenditures for compliance with environmental
regulations and to effect improvements in our health, safety and
environmental practices will increase substantially in the
future. In addition, because our capital expenditures are
subject to approval by the Brazilian government, increased
expenditures to comply with environmental regulations could
result in reductions in other strategic investments. Any
substantial increase in expenditures for compliance with
environmental regulations or reduction in strategic investments
may have a material adverse effect on our results of operations
or financial condition.
This excerpt taken from the PBR 20-F filed Jun 30, 2005. We are subject to numerous environmental and health regulations that have become more stringent in the recent past and may result in increased liabilities and increased capital expenditures.
Our activities are subject to a wide variety of federal, state and local laws, regulations and permit requirements relating to the protection of human health and the environment, both in Brazil and in other jurisdictions in which we operate. In Brazil, we could be exposed to administrative and criminal sanctions, including warnings, fines and closure orders, for non-compliance with these environmental regulations, which, among other things, limit or prohibit emissions or spills of toxic substances produced in connection with our operations. In 2004, we experienced spills totaling 140,000 gallons of crude oil, as compared to 73,000 gallons in 2003 and 52,000 gallons in 2002. As a result of certain of these spills, we were fined by various state and federal environmental agencies, named the defendant in several civil and criminal suits and remain subject to several investigations and potential civil and criminal liabilities. Waste disposal and emissions regulations may require us to clean up or retrofit our facilities at substantial cost and could result in substantial liabilities. The Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renováveis (Brazilian Institute of the Environment and Renewable Natural Resources, or IBAMA) routinely inspects our oil platforms in the Campos Basin, and may impose fines, restrictions on operations or other sanctions in connection with its inspections. In addition, we are subject to environmental laws that require
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Table of Contentsus to incur significant costs to remedy any damage that a project may cause to the environment (compensação ambiental). These additional costs may have a negative impact on the profitability of the projects we intend to implement or may make such projects economically unfeasible.
As environmental regulations become more stringent, it is probable that our capital expenditures for compliance with environmental regulations and to effect improvements in our health, safety and environmental practices will increase substantially in the future. Because our capital expenditures are subject to approval by the Brazilian government, increased expenditures to comply with environmental regulations could result in reductions in other strategic investments. Any such reduction may have a material adverse effect on our results of operations or financial condition.
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