ABSTRACT
This chapter examines a number of aspects of the relationship between arbitration and natural resources. The 'natural resources' connotes the notion of resources available in the natural environment. The chapter focuses on water, mining rights and land issues. International arbitration is a form of dispute resolution whereby the parties to a contract agree to have their dispute resolved by arbitration. Due to the nature of and contractual mechanisms for investments in the energy and natural resources sector, foreign direct investments generally fulfil the requirements for investment protection under the definitions of most bilateral investment treaty (BIT). International Centre for Settlement for Investment Disputes (ICSID), established in 1965 within the overall framework of the World Bank, overhauled its arbitration rules in 2006 in response to growing concerns about the legitimacy of investment arbitration. The Energy Charter Treaty (ECT), which entered into force in 1998, was established to promote international cooperation in the energy sector.
