ARCO and PERTAMINA, the Indonesian State Oil and Gas Company, produced gas from reserves in the Kangean Block, about 100 miles north of the island of Bali. The block areas covers approximately 4508 of ocean and land, including 10 islands, and consists of 14 production wells, 30 exploratory wells, 2 gas processing trains, a harbour, an air strip and other support facilities.

An estimated 225 miles of subsea and 45 miles of onshore pipelines deliver produced gas to customers. Potential environmental impacts of development and operations include affects on marine life, terrestrial function ecosystems and the atmosphere. The potential impact also exist on the socio and human environment. We used social cultural needs and government regulations issues are main tool to minimize or prevent the impact and to avoid possible reversals and disturbance to the gas development and operation itself. These tools then effectively raise many ideas on how to protect, preserve, and develop or enhance environmental quality, to integrate the company policy and commitment, and to arive at the decision making with involving all concerned individuals, groups, or organizations in Environmental Management System (EMS) planning, implementing, and monitoring steps. These processes produced a "Top - Down Strategy" to develop and operate the Kangean block area. In addition, the strategy also tends to produce a severe imbalance between gas development on the hand, and EMS implementation on the other.

To overcome the problem, we used six structural components in the EMS for Kangean block: planning/policy, project assessment, implementation, technical rigor, consultation, and institutional integrity.

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