Land Acquisition Eruption INTERNATIONAL CONFERENCE ON ENVIRONMENT AND HEALTH.

International Conference on Environment and Health, 22-23 May 2013, Soegijapranata Catholic University, Indonesia 237 which is not completed with environmental impact analysis AMDAL

1. LAPINDO BRANTAS Inc.

Lapindo Brantas is one of subsidiaries of PT. Energi Mega Persada Tbk. It is founded for oil exploration around the Brantas Block, in this case, Lapindo BrantasEMP plays its role as operator, while the equity is jointly owned by PT. Energi Mega Persada Tbk, PT. Medko Energi Tbk, and Santos LTD – Australia which owns several oil and gas drilling companies throughout Indonesia. PT. Energi Mega Persada Tbk belongs to Bakrie Family owns 50 on equity and PT. Medko Energi Tbk owned by Panigoro family with 32, Santos Brantas Indonesia Tbk owned by foreign investor with 18 on equity.

2. CRONOLOGY

2.1 Land Acquisition

There is no socialization and transparency about exploration plan by Lapindo Brantas Inc. The headwoman of Renokenongo socializes that land acquisition used for warehouse of heavy tools. The negotiation is conducted among the landowners and subdistrict officers, while the Lapindo is never appear, even the receipt is not completed with identity of acquirer Lapindo.

2.2 Eruption

Friday, May 26, 2006, at 3 a.m., the residents of Renokenongo heard loud sirens from drilling site where PT Lapindo operated its business. There was neither prior communication nor notice provided by PT. Lapindo BrantasEMP. Monday, May 29 Mei, 2006, hot mud around the drilling site firstly erupted in Banjar Panji I of Siring village, Porong subdistrict at 5.30 a.m. The malignant material erupted from new spots of cleft that estimated 50 meters away from drilling point where Lapindo Brantas Inc operated its drilling activity, the mud spurt 150 meters high. Tuesday, May 30, 2006, the drilling site in Banjar Panji I was secured, and the mud spurt increased on the following day. It widely spread and submerged farming area around the Siring village. Thursday, June 1, 2006, two spots erupted at 7.30 p.m. The first was in residential area and the other one in the farming area. The three spots of mudflow located in Siring and Renokenongo village were northeastern – southwestern orientation. No victims at the time, however the mud had been spread out and submerged several residential areas. In the first week, the LapindoEMP dodged that the three spots were caused by natural factor, exactly the earthquake occurred in Yogyakarta on May 27, 2006. The speculation of Lapindo was condemned by various parties since the information that had been obtained indicated that prior to the mud eruption, the drilling position was in 9297 feet depth equal to 3000 meters, and experienced lost circulation and suddenly produced gas beneath International Conference on Environment and Health, 22-23 May 2013, Soegijapranata Catholic University, Indonesia 238 the surface in periodic time then stuck at the end. This situation occurred before the earthquake in Yogyakarta on May 27, 2006, so a new speculation came up that the mud spurt caused by underground blow out or gas blow up beneath the surface which triggered over preasure. The volume of mud exceed the lost mud in the drilling, it led to shale and water formation, here known that in 9000 feet depth, Lapindo BrantasEMP did not assemble 9 58 inches case which was the drilling safety standard. Besides negligent, the geologist found slump layer – unstable moving shale indicator around the operation area of PT Lapindo Brantas. If this layer were penetrated vertically, would lead to hot mud eruption. Experts suggested slant drilling to avoid the slump layer contained in the geology of Brantas block, unfortunately this was ignored by Lapindo Brantas. Besides, the Lapindo did not anticipate the fault zone. From the beginning, Lapindo never socializes its operation to the residents around the site. Even, Lapindo deceived the residents that the land acquisition used for animal feed company. When hot mud erupted, even, the Lapindo did not provide any explanation with information on what actually happened in the drilling neither in technical nor in solution.

3. VIOLATION OF LAW

1. Permission on Oil exploration that close to residential and public facilities is violation of Law 231997 on Environmental Management article 41 and 42 and Law 72004 on Water Resources Article 94 2. Untransparent land acquisition 3. No Environmental impact analysis AMDAL.

3.1 Law and Politic Accountability