At some companies, exploration programs and production-building seem to flow as smoothly as oil in a clean pipeline. At others, life seems to be more like a bumper-car ride at a midway, with frequent collisions with regulatory bodies, environmental groups and surface-rights owners.

What makes the difference? Often, it lies in paying enough attention to environmental permitting. Our experience helping developers with environmental issues finds that some companies, particularly juniors, suffer more grief from the environmental permitting process than they need to.

Sometimes there are quite understandable reasons for this. Many junior companies have so much going on at once, including arranging joint ventures, drilling programs and keeping production flowing, that they don’t have time to develop specialized expertise around the many regulations and regulatory bodies. This is a daunting task even for larger companies.
We recommend starting with building an understanding of the reasons why the regulations are in place — what problem are they designed to prevent or solve? Dig further, and find out which regulations will apply to your project.

The obvious way to find out about what regulations apply to a project is to read the regulations. It’s not always necessary to understand the “legalese” because many regulatory bodies post process summaries or guides on their Web sites to help you get started. Many of these sites also contain examples of successful applications, which will give you an idea of what works.

Another way to learn about regulations is to ask the regulators. Many regulatory bodies welcome hypothetical questions from industry ? “If a company were to do a drilling program of X wells in this area, what permits would be needed?” Most regulators are happy to help because it makes their job easier down the line. They would much rather help you develop a good application now than go through the time-consuming task of detailing the inadequacies of an application once it is received.

Contrary to what some resource company executives might think, regulators do not get joy from saying “No” early and often. They would rather help you toward developing a project that will allow them to say “Yes.”

So, build a positive relationship with regulators. Demonstrate your willingness to do the right thing environmentally, and they may even be helpful in reviewing your draft applications and other documents.

Never underestimate the power of public consultation. Some companies approach stakeholder relations reluctantly, and this is counterproductive. Meet with local landowners, political leaders and heads of local organizations to find out what their concerns are. Work with them to find ways to deal with those concerns.

This is particularly important when dealing with indigenous people (in Canada, called “First Nations”). Many of these groups value face-to-face consultation as a sign that you put a priority on environmental preservation and are very interested in issues such as employment for their people and other economic spinoffs for their community.

Some projects gather the attention of non-governmental organizations (NGOs) such as environmental groups. Consult with these groups as well. Again, contrary to the views of some industry executives, NGOs are not out to make your life difficult. They have their issues of concern and will fight to protect what they see as a threat to their interests.

Consultation with stakeholders, including aboriginal people and NGOs, is not only looked upon favorably by regulators, but also is a requirement in most jurisdictions.

In many cases, you will benefit from the sound professional advice from an environmental consulting firm. To find the best resource, start by asking knowledgeable people whose opinion you trust. Also, while looking through the successful applications posted on the regulators’ Web sites, look for the names of the firms that helped prepare the applications. Solicit proposals and interview several candidates — treat it as you would a job interview
— to find the best firm for your environmental permitting process.