Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Oil, gas and coal operations · Russia · 2004–2022

Western gray whales off Sakhalin and the company-funded IUCN advisory panel

Nature's voice · report
In 2006 scientists counted 122 of my western gray whales older than calves (90% confidence interval 113-131), including 30 mature females.
Did nature suffer? Yes. Harm is on record. Disputed
Recorded
  • Three of my females were killed in fishing nets off Japan in 2005; with that extra mortality the 2006 assessment gave about a 75% probability of decline and a risk above 25% of extirpation by 2030. International Whaling Commission Scientific Committee (NOAA archive)
  • IUCN reported about 115 of me in 2004 and 174 in 2015, growing 3-4% a year. IUCN
  • The panel's final statement gave 220-270 of me, not including first-year calves, feeding off Sakhalin and south-east Kamchatka as of 2020, growing around 5% a year over 1995-2020. IUCN SSC Cetacean Specialist Group
  • The IUCN Cetacean Specialist Group archive lists my western subpopulation as Critically Endangered in 2000 and 2008 and Endangered in 2018. IUCN SSC Cetacean Specialist Group
  • A study of the 2015 seismic surveys followed 1,270 tracks and 401 focal follows between 1 June and 30 September 2015, at received levels of 59-172 dB re 1 μPa² SPL; it found that mitigation "did not eliminate short-term behavioral responses" in me. Environmental Monitoring and Assessment (PMC)
  • The panel said in 2015 that the combined planned seismic activity of two operators near my feeding area "was greater than had ever before occurred". IUCN
What the record lacks: 2 none on record · 6 not disclosed · 1 insufficient · 1 not measured · 2 disputed · 1 unclear See the gaps
Accounts of the harm differ
Timing of the 2015 seismic surveys
  • Researchers Western Gray Whale Advisory Panel (IUCN), 8 May 2015: The combined planned seismic activity of SEIC and ENL was greater than had ever before occurred; SEIC's 2015 survey area was twice its 2010 survey; the panel advised postponement to 2016. IUCN
  • Company or project Sakhalin Energy: Postponement was not feasible because of 2016-2017 activities of other operators; the State Environmental Expert Review issued a positive decision for the 2015 survey. Sakhalin Energy (via IUCN SSC Cetacean Specialist Group)
Sharing of whale photo-identification and genetic data

An advisory panel convened by IUCN and paid for by Sakhalin Energy as a lender condition advised on western gray whales near the Sakhalin oil and gas fields from 2006 until it ended in March 2022. In 2015 the panel and the company disagreed over the timing of seismic surveys, and the final meeting report was not released.

about USD 1.4 million estimateAnnual budget of the whale advisory panel at its peak (2010)
Estimate read from the budget chart in the 2018 IUCN-commissioned evaluation; chart values range from about USD 0.8 million (2006) to about USD 1.4 million (2010), about USD 0.8 million in 2018. Until 2012 the expenses were recoverable for the company under the production sharing agreement.

Status As of March 2022: the panel was disbanded when the IUCN-Sakhalin Energy contract expired; the final meeting report was never released and the panel's final statement went to the IWC Scientific Committee in April 2022.

What?
An IUCN advisory panel funded by Sakhalin Energy as a lender condition advised on western gray whales near the Sakhalin oil and gas fields from 2006 to 2022; the panel and the company disagreed over the timing of 2015 seismic surveys, and the panel's final meeting report was never released. IUCN SSC Cetacean Specialist Group
Where?
Piltun Lagoon nearshore feeding area and the offshore feeding area near the Piltun-Astokhskoye and Odoptu fields, north-east Sakhalin; a second feeding area off south-east Kamchatka. IUCN SSC Cetacean Specialist Group
When?
Review panel 2004-2005; WGWAP convened October 2006, terms 2006-2011, 2012-2016 and 2017-2021; seismic dispute May 2015; evaluation 2018; disbanded end of March 2022. IUCN SSC Cetacean Specialist Group
Who?
Gained
  • Sakhalin Energy — Met lender requirements through the panel and, in the 2018 evaluation's words, gained "increased trust and reputation"; expenses were recoverable under the production sharing agreement until 2012 IUCN
Lost
  • Western Gray Whale Advisory Panel — Ended in March 2022 when the IUCN-Sakhalin Energy contract expired; its final report was never released IUCN SSC Cetacean Specialist Group
Harmed
Why?
Lenders required an advisory process on the whales as a condition of the Sakhalin II loan agreements; the panel described the lender-company-panel relationship as rare if not unique. IUCN SSC Cetacean Specialist Group
How?
Sakhalin Energy paid for the panel, which IUCN convened; the panel issued recommendations and statements, and the company decided on its own survey schedule in 2015. IUCN
6 of 6 questions answered from the record

What happened

The record, in order.

The IUCN Western Gray Whale Advisory Panel (WGWAP) was convened in October 2006 and first met in November 2006; Sakhalin Energy funded it to meet lender requirements ("a condition of the agreement set up by the banks and other lending institutions"). An earlier Independent Scientific Review Panel (September 2004 to January 2005) recommended that SEIC reroute, "at considerable expense", the offshore pipeline that would have crossed the whales' nearshore feeding area off Piltun Lagoon; the cost was not stated. Over its life the panel held 22 formal meetings and 38 closed task-force meetings, and the panel and its predecessors issued 639 recommendations between 2004 and 2021, mostly to Sakhalin Energy, "the only company formally participating". Its terms ran 2006-2011, 2012-2016 and 2017-2021; IUCN and Sakhalin Energy signed a 2017-2021 agreement in March 2017.

A 2006 assessment presented to the IWC Scientific Committee (Cooke, Weller, Bradford, Burdin, Brownell) counted 122 whales aged beyond calves (90% confidence interval 113-131) in 2006, including 30 mature females, with a 3.0% annual increase in 1994-2005; because three females were killed in fishing nets off Japan in 2005, it gave about a 75% probability of decline and a risk above 25% of extirpation by 2030. IUCN reported about 115 animals in 2004 and 174 in 2015, growing 3-4% a year. The panel's final statement gave growth of around 5% a year over 1995-2020, with 220-270 individuals, not including first-year calves, feeding off Sakhalin and south-east Kamchatka as of 2020. The IUCN Cetacean Specialist Group archive lists the western subpopulation as Critically Endangered in 2000 and 2008 and Endangered in 2018.

In February 2009 IUCN reported that the panel's fifth report criticised Sakhalin Energy's "inadequate collaboration on whale conservation" and that documents had not been delivered in time. On 8 May 2015 the panel issued a statement of concern: IUCN postponed its 16th meeting because Sakhalin Energy "had not delivered expected information and documents in a timely fashion or in some cases, at all"; the combined planned seismic activity of SEIC and Exxon Neftegas Ltd (ENL, operator of Sakhalin-1) "was greater than had ever before occurred", and SEIC's 2015 survey area was twice its 2010 survey; the panel advised postponement to 2016. SEIC replied that postponement was "not feasible" because of 2016-2017 activities of other operators, and that the State Environmental Expert Review had issued a positive decision for the 2015 survey. ENL ran a seismic programme near the feeding area in 2015, including work on behalf of Rosneft, and the panel said ENL did not seek its advice and had not provided detailed information on its marine mammal plan; ENL did not agree to a single shared photo-identification and genetic database offered by the IWC.

A 2018 IUCN-commissioned evaluation said Sakhalin Energy "did not comply, and chose to move forward with its seismic survey plans" in 2015. It recorded WGWAP budgets rising from about USD 0.8 million in 2006 to about USD 1.4 million in 2010 and falling back to about USD 0.8 million by 2018; it said the 2018 cumulative budget of the Joint Programme, the WGWAP and the monitoring programme was less than 55% of the 2014 cumulative budget, and that Sakhalin Energy first provided 2014-2018 budget data and then withdrew its permission for it to be included. The evaluation also said Russia's Ministry of Education and Science denied a permit for acoustic monitoring in 2018 "without explanation", and that the panel stated the monitoring plan could not be fully implemented without it.

The panel's final meeting took place in November 2021 in Gland; according to the IUCN Cetacean Specialist Group archive the final meeting report was finalised in January 2022 "but never released", and panel work was removed from the IUCN website after February 2022. The panel's final statement was submitted to the IWC Scientific Committee in April 2022. The panel was disbanded at the end of March 2022 "when the contract between IUCN and Sakhalin Energy Investment Company (Sakhalin Energy) expired". The statement noted that the implications of the March 2022 withdrawal of Shell and Exxon personnel for the Joint Programme and for a planned 2022 Piltun-Astokhskoye seismic survey were not known.

  1. 2004Independent Scientific Review Panel begins (September); its recommendation leads SEIC to reroute the offshore pipeline
  2. 2006Cooke et al. assessment of 122 whales (June); WGWAP convened (October) and first meets (November)
  3. 2009IUCN reports the panel's criticism of Sakhalin Energy's collaboration (12 Feb)
  4. 2015Panel statement of concern on combined seismic surveys (8 May); surveys run 1 June to 30 September
  5. 2016IUCN reports 174 whales in 2015 (3 Sep)
  6. 2017IUCN and Sakhalin Energy sign a 2017-2021 agreement (March)
  7. 2018Independent evaluation of the panel; acoustic monitoring permit denied by the Ministry of Education and Science
  8. 2021Final panel meeting in Gland (November)
  9. 2022Report finalised in January but not released; panel disbanded end of March; final statement sent to the IWC Scientific Committee in April

What was said

Claims, in the words of those who made them.

“This type of lender-company-panel relationship is rare if not unique.”

“Sakhalin Energy did not comply, and chose to move forward with its seismic survey plans”

Independent evaluation of the WGWAP commissioned by IUCN, on 2015 · 2018 · IUCN

“For Sakhalin Energy, funding the WGWAP is far more cost-efficient than not receiving international loans”

Independent evaluation of the WGWAP commissioned by IUCN · 2018 · IUCN

“Sakhalin Energy has reaped enormous benefits from the WGWAP through increased trust and reputation”

Independent evaluation of the WGWAP commissioned by IUCN · 2018 · IUCN

“had not delivered expected information and documents in a timely fashion or in some cases, at all”

WGWAP statement of concern, on Sakhalin Energy · 8 May 2015 · IUCN

“not feasible”

“ENL does not seek the Panel's advice”

WGWAP statement of concern, on Exxon Neftegas Ltd · 8 May 2015 · IUCN

“will depend on more companies in the region joining this effort”

Doug Nowacek, IUCN, on the recovery of the whales · September 2016 · IUCN

Where accounts differ

Each party's account, side by side, with its source. The record does not settle these points; it shows them.

Timing of the 2015 seismic surveys
Researchers
Western Gray Whale Advisory Panel (IUCN), 8 May 2015

The combined planned seismic activity of SEIC and ENL was greater than had ever before occurred; SEIC's 2015 survey area was twice its 2010 survey; the panel advised postponement to 2016.

IUCN
Company or project
Sakhalin Energy

Postponement was not feasible because of 2016-2017 activities of other operators; the State Environmental Expert Review issued a positive decision for the 2015 survey.

Sakhalin Energy (via IUCN SSC Cetacean Specialist Group)
Sharing of whale photo-identification and genetic data
Researchers
Western Gray Whale Advisory Panel and IWC

A single shared photo-identification and genetic database was offered by the IWC.

IUCN SSC Cetacean Specialist Group
Company or project
Exxon Neftegas Ltd (as described by the panel)

Did not agree to the single shared database.

IUCN SSC Cetacean Specialist Group

How it looked

What was shown, beside what was recorded.

Shown

  • The Company "has led its Grey Whale Monitoring Programme since 1997".
    Sakhalin Energy LLC website (current) · Sakhalin Energy LLC
  • Postponement of the 2015 survey was "not feasible"; the State Environmental Expert Review issued a positive decision for the survey's environmental impact assessment.
    Sakhalin Energy, 2015 · Sakhalin Energy (via IUCN SSC Cetacean Specialist Group)
  • Sakhalin Energy "has reaped enormous benefits from the WGWAP through increased trust and reputation".
    Independent evaluation commissioned by IUCN, 2018 · IUCN

Recorded

  • Sakhalin Energy funded the WGWAP to meet lender requirements and funds 1.8 full-time-equivalent staff at IUCN to manage it.
    IUCN
  • "Until 2012 these expenses were recoverable for the company under the Production Sharing Agreement (PSA)".
    IUCN
  • The 2018 cumulative budget of the Joint Programme, the WGWAP and the monitoring programme was less than 55% of the 2014 cumulative budget.
    IUCN
  • The WGWAP and Joint Programme budgets "are not reviewed regularly by Panel members or by lenders and their consultants".
    IUCN
  • The panel and its predecessors issued 639 recommendations in 2004-2021; the panel held 22 formal and 38 closed task-force meetings.
    IUCN SSC Cetacean Specialist Group
  • The 2010-2011 satellite tagging was co-sponsored by ENL, Sakhalin Energy and IUCN.
    IUCN SSC Cetacean Specialist Group
  • The 2015 behavioural study acknowledges ENL for financial support.
    Environmental Monitoring and Assessment (PMC)
  • Obligations towards the whales were contractual (lender agreements and the Health, Safety, Environmental and Social Action Plan).
    IUCN

Who gained

Money that reached nature, beside money that stayed elsewhere.

Reached nature or the ground

Not published
Offshore pipeline reroute away from the nearshore feeding area—
Described as "at considerable expense"; amount not disclosed.
WGWAP budget, 2006 estimate≈ $0.8m
Read from the budget chart in the 2018 evaluation.
WGWAP budget, 2009 estimate≈ $1.32m
WGWAP budget, 2010 (peak) estimate≈ $1.4m
WGWAP budget, 2013 estimate≈ $0.96m
WGWAP budget, 2016 estimate≈ $0.8m
WGWAP budget, 2017 estimate≈ $0.78m
WGWAP budget, 2018 estimate≈ $0.8m

Gained elsewhere

Not totalled
Currency: USD · Window: 2006-2018. All figures cover the same period. * Estimate built from cited figures.

Responses on record

  • Sakhalin Energy (2015): Postponement of the 2015 seismic survey was not feasible because of 2016-2017 activities of other operators; the State Environmental Expert Review issued a positive decision for the survey's environmental impact assessment. · Sakhalin Energy (via IUCN SSC Cetacean Specialist Group)
  • Sakhalin Energy LLC (current website): The Company has led its Grey Whale Monitoring Programme since 1997. · Sakhalin Energy LLC

In court and with insurers

Every proceeding and every insurer decision on record.

Lawsuits and rulings

No court case on record. No court has ruled on this case.

Insurers

No insurer decision on record.

What nature saw

Outcomes measured on the ground, and nature's note.

Nature's report opens this page. Below: further outcomes measured on the ground.

Whales counted, 2020
220-270
Feeding off Sakhalin and south-east Kamchatka, not including first-year calves (panel final statement)
Whales counted, 2006
122
Aged beyond calves, 90% confidence interval 113-131 (Cooke et al.)
Panel recommendations
639
2004-2021, mostly to Sakhalin Energy
Panel budget at peak
about USD 1.4 million
2010, read from the 2018 evaluation chart

What we don't know

Undisclosed, unproven, untried: recorded as data.
No court caseKey earnings undisclosed

Nature

  • Disputed Timing of the 2015 seismic surveys
  • Disputed Sharing of whale photo-identification and genetic data

Money

  • Not disclosed Offshore pipeline reroute away from the nearshore feeding area — Described as "at considerable expense"; amount not disclosed.

Court

Record

  • Insufficient Insufficient: the panel stated in 2015 that "at present there is insufficient information to support" a full cumulative-impact assessment.
  • Not disclosed Not disclosed: detailed information on Exxon Neftegas Ltd's marine mammal monitoring and mitigation plan, which the panel said it had not been given; no independent observer was planned for ENL.
  • Not measured Not measured: no exposure modelling had been conducted by either company for the staggered 2015 survey arrangement (panel statement).
  • Not disclosed Not disclosed: the final panel meeting report, finalised in January 2022 and never released (IUCN Cetacean Specialist Group archive).
  • Not disclosed Not disclosed: Sakhalin Energy's 2014-2018 budget data for the Joint Programme, the WGWAP and the monitoring programme, which it withdrew permission for the evaluators to include.
  • None on record None on record: a court case concerning the whales; the obligations were contractual (lender agreements and the Health, Safety, Environmental and Social Action Plan).
  • Not disclosed Not disclosed: the cost of the offshore pipeline reroute, described only as "considerable expense".
  • Not disclosed Not disclosed: the amount co-sponsored by ENL, Sakhalin Energy and IUCN for the 2010-2011 satellite tagging.
  • Unclear Unclear: the implications of the March 2022 withdrawal of Shell and Exxon personnel for the Joint Programme and the planned 2022 Piltun-Astokhskoye seismic survey (panel statement footnote).

Did the harm stop?

None on record.

Who paid?

Sakhalin Energy funded the panel as a lender requirement; until 2012 the expenses were recoverable for the company under the production sharing agreement.

Sources

Voices on record: ✓ Company or project✓ Government and regulators— Courts— Press and investigations— Communities and civil society✓ Researchers✓ International bodies

Company or project

  1. Sakhalin Energy response to the May 2015 IUCN WGWAP statement
    Sakhalin Energy (via IUCN SSC Cetacean Specialist Group) · 2015
  2. Sakhalin Energy: biodiversity
    Sakhalin Energy LLC · n.d.

Government and regulators

Researchers

  1. Population assessment of Western Gray Whales in 2006 (Cooke, Weller, Bradford, Burdin, Brownell; IWC SC/58/BRG30)
    International Whaling Commission Scientific Committee (NOAA archive) · 2006-06

International bodies

  2. WGWAP Closing Statement (Reeves, Donovan, Weller)
    IUCN SSC Cetacean Specialist Group · 2022-04-13
  7. Western Gray Whale Advisory Panel (WGWAP) archive
    IUCN SSC Cetacean Specialist Group · n.d.

Connected cases

Related matters, and cases linked to this one through the same organisations, with the role each played in both.
Terms used on this page

Institutions

IUCN Red List
The International Union for Conservation of Nature and its global list assessing species' risk of extinction.
NOAA
The US National Oceanic and Atmospheric Administration, which leads damage assessment for coastal and marine spills.
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