Tuesday, January 22, 2013

Detailed guide: Oil and gas: offshore environmental legislation

By HM Government

Updated: Oil and gas: OSPAR annual reporting updated

The Environmental Assessment of Plans and Programmes Regulations 2004



The Environmental Assessment of Plans and Programmes Regulations 2004 implements the European Strategic Environmental Assessment (SEA) Directive (2001/42/EC). Although the Directive was not incorporated into UK law until 2004, SEAs have been carried out since 1999 in accordance with its requirements.



The Offshore Petroleum Production and Pipelines (Assessment of Environmental Effects) Regulations 1999 (as amended)



The 1985 Council Directive on the Assessment of the Effects of Certain Public and Private Activities on the Environment (85/337/EEC) as amended by Council Directive 97/11/EC, requires environmental assessments to be carried out for certain types of offshore oil and gas activities throughout the European Union. The Offshore Petroleum Production and Pipelines (Assessment of Environmental Effects) Regulations 1999 (SI No. 1999/360) (“the Regulations”) implement the Directive. These Regulations were amended in 2007 by the Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) (Amendment) Regulations 2007 to implement the Directive 2003/35/EC which provides for public participation in respect of the drawing up of certain plans and programmes relating to the environment. These amended Regulations came into force on the 16 April 2007.



For the purpose of the Regulations the relevant activities include (but not limiting to); the granting and renewal of production consents for field developments, the drilling of wells (deep boring) and the construction and installation of production facilities and pipelines in the United Kingdom Territorial Sea and on the United Kingdom Continental Shelf (UKCS).



Regulations



Guidance



Supplementary guidance issued following the Deepwater Horizon Incident



This collates the additional information communicated to oil and gas operators and/or Mobile Drilling Unit (MoDU) operators after the Deepwater Horizon accident. Guidance is provided in relation to four aspects, Environmental Statements and Direction Applications; Other Environmental Application Submissions; Oil Pollution Emergency Plans; and Environmental Reviews and Inspections. It is strongly recommended that operators should study all four documents to develop an overall picture of the environmental requirements.



Project reports



Reporting requirements





  • Authorised deposits return form
    (MS Excel Spreadsheet, 95.5KB)
     (this form should be used for approvals issued through the PON15 system and for deposits associated with EIA exemption)

  • Authorised deposit return for approvals issued through the PETS system should be made using the appropriate Environmental Emissions Monitoring System (EEMS) reporting form

Environmentally sensitive areas



For further information please contact the Environmental Management Team by e-mail at emt@decc.gsi.gov.uk or (01224) 254145 / 254102 / 254050 or please contact your assigned Environmental Manager.



The Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 (as amended)



The Offshore Petroleum Activities (Conservation of Habitats) (Amendment) Regulations 2007 came into force on 18 February 2007, extending certain provisions of the Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001.



The 2001 regulations require consent for geological surveys related to oil and gas activities undertaken on the UKCS. The amendments extend these provisions to UK waters (sea adjacent to UK from the low water mark up to the seaward limits of territorial waters) and require prior consent for the testing of equipment to be used in geological surveys.



The Regulations (Reg. 5) requires that the Secretary of State before granting any licence, consent, authorisation, or any approval, where it is considered that any proposed activities is likely to have a significant effect on a relevant site, whether individually or in combination with any other plan or project, make an Habitats Regulation Assessment (Appropriate Assessment) of the implications for the Natura 2000 site in view of the sites conservation objectives.



Regulations



Guidance and application forms



Guidelines for minimising risk to marine mammals



Habitats Regulations Assessments/Appropriate assessments



Marine Mammal Observer report



Noise projects



Moray Firth study



The Moray Firth study assessed the potential impact of oil and gas exploration operations on cetaceans in the Moray Firth.



For further information please contact the Environmental Management Team by e-mail at emt@decc.gsi.gov.uk or (01224) 254145 / 254102 / 254050 or please contact your assigned Environmental Manager



The Offshore Marine Conservation (Natural Habitats, &c.) Regulations 2007 (as amended)



The Offshore Marine Conservation (Natural Habitats, &c.) Regulations 2007 came into force on 21 August 2007, introducing provisions for implementing Council Directive 79/409/EEC on the conservation of wild birds and Council Directive 92/43/EEC on the conservation of natural habitats and of wild fauna and flora in relation to offshore marine areas.



The Offshore Marine Conservation (Natural Habitats, &c) Regulations 2007 ensure that certain activities that have an effect on important species and habitats in the offshore marine environment, can be managed. The regulations apply in the “offshore area” beyond 12 nautical miles from the UK coast and protect marine species and wild birds by creating a number of offences that aim to prevent environmentally damaging activities. The regulations also enable the designation and protection of areas that host certain important habitats and species in the offshore marine area. Once designated these sites will be identified as Special Areas of Conservation (SACs) for the protection of certain habitats and species and Special Protection Areas (SPAs) for the protection of certain wild bird species.



The Offshore Marine Conservation (Natural Habitats, &c.) (Amendment) Regulations 2010 came into force on 1 April 2010, extending certain provisions of the Offshore Marine Conservation (Natural Habitats, &c.) Regulations 2007. The extended provisions makes it an offence to deliberately disturb wild animals of a European Protected Species (EPS) in such a way as to be likely (a) to impair their ability (i) to survive, breed, or rear or nurture their young; or (ii) in the case of animals of a hibernating or migratory species, to hibernate or migrate or b) to affect significantly the local distribution or abundance of that species.



Regulations



Application form



For further information please contact the Environmental Management Team by e-mail at emt@decc.gsi.gov.uk or (01224) 254145 / 254102 / 254050 or please contact your assigned Environmental Manager



The Offshore Chemicals Regulations 2002 (as amended)



The Offshore Chemicals (Amendment) Regulations 2011 came into force on 29 March 2011, extending certain provisions of the Offshore Chemicals Regulations 2002.



The Offshore Chemical Regulations 2002 were introduced to apply the provisions of a decision made by the Convention for the Protection of the Marine Environment of the North-East Atlantic (the OSPAR Convention) to implement a harmonised mandatory control system for the use and discharge of chemicals by the offshore oil and gas industry. Under the regulations offshore operators must apply for permits for the use and/or discharge of chemicals in the course of all offshore oil and gas activities, including oil and gas production operations, well drilling, discharges from pipelines, and discharges during decommissioning activities.



The Offshore Chemicals (Amendment) Regulations 2011 further extend the provisions of the regulations to allow the department to take enforcement action in the event of any unintentional offshore chemical release. They also:



  • extend DECC's information-gathering powers so information can be obtained from a wider range of persons and in relation to a wider range of incidents

  • simplify the permitting process for varying permits or transferring them to other operators

  • more closely align the regulations with the Offshore Petroleum (Oil Pollution Prevention and Control) Regulations (as amended)

Regulations



Guidance



Application forms



Use the following applications to apply for a chemical permit under the offshore chemical regulations:



Reporting requirements



The standard chemical permit reporting forms can be accessed at the UK Oil Portal.



Additional reporting forms:



OSPAR annual reporting on the phase-out of hazardous substances.



For further information please contact the Environmental Management Team by e-mail at emt@decc.gsi.gov.uk or (01224) 254145 / 254102 / 254050 or please contact your assigned Environmental Manager



The Offshore Petroleum Activities (Oil Pollution Prevention and Control) Regulations 2005 (as amended)



All oil discharges from offshore oil and gas installations are carefully controlled to minimise contamination of the marine environment and the living resources it supports. The Offshore Petroleum Activities (Oil Pollution Prevention and Control) Regulations 2005 (OPPC regulations) prohibit the discharge of oil to sea other than in accordance with the terms and conditions of a permit. Operators of offshore installations must identify all planned oil discharges to relevant waters and apply for the appropriate OPPC permits.



The Energy Act 2008 (Consequential Modifications) (Offshore Environmental Protection) Order 2010 (PDF, 78.06KB) extends the provisions of the regulations to offshore gas unloading and storage operations and offshore carbon dioxide storage operations. This extension is, however, subject to geographical limitations to reflect the different devolution settlements relating to these offshore activities.



The Offshore Petroleum Activities (Oil Pollution Prevention and Control) (Amendment) Regulations 2011 introduced a number of changes to the regulations.



This includes a new definition of ‘offshore installation' to encompass all pipelines, some of which were not previously covered by the OPPC regulations. The amending regulations also introduce the concept of ‘release' to cover all unintentional oil emissions that occur through accidental spills/leaks or non-operational discharges. Intentional emissions are now clarified as discharges. However, given the OPPC regulations already cover oil spills and leaks, the concept of ‘release' is incorporated by amendment of the regulations solely to conform with the Offshore Chemicals (Amendment) Regulations 2011.



In addition, the amending OPPC regulations 2011:



Guidance and reporting requirements



The Dispersed Oil in Produced Water Trading Scheme



The Dispersed Oil in Produced Water Trading Scheme was cancelled following consultation and then approval from the Secretary of State for Business Enterprise and Regulatory Reform.



Visit the National Archives website for background information on the scheme.



For further information please contact:
Email: offshore.inspectorate@decc.gsi.gov.uk
Telephone: 01224 254054/254033



The Offshore Combustion Installations (Pollution Prevention and Control) Regulations 2013



The Offshore Combustion Installations (Pollution Prevention and Control) Regulations 2013 (“the Offshore (PPC) Regulations 2013”) came in to force on 19 May 2013.



The Offshore (PPC) Regulations 2013 transpose the relevant provisions of the Industrial Emissions Directive 2010/75/EU (“the IED”) in respect to specific atmospheric pollutants from combustion installations (with a thermal capacity rating ≥ 50 MW) on offshore platforms undertaking activities involving oil and gas production and gas and carbon dioxide unloading and storage. In this context, the obligations of the Offshore (PPC) Regulations 2013 on the offshore oil and gas industry basically mirror those of the Offshore Combustion Installations (Prevention and Control of Pollution) Regulations 2001 (as amended).



The Explanatory Memorandum fully describes the scope and other aspects associated with the Offshore (PPC) Regulations 2013. The Offshore (PPC) Regulations 2013 apply to those offshore combustion installations where a permit for their use is applied for and granted after 19 May 2013 - please note important points under the ‘Guidance' heading below. As required by the IED, the existing 2001 Regulations (as amended) will continue to apply to offshore combustion installations which already have a permit before the Offshore (PPC) Regulations 2013 came into force or where a permit was applied for before the 19 May 2013 and it was subsequently granted. Subject to transitional provisions, the existing 2001 Regulations (as amended) will cease to apply after 07 January 2014.



Regulations



Guidance



DECC will be revising the Guidance Notes to the 2001 Regulations (as amended) and the guidance / forms pertaining to ‘PPC permit applications and reporting requirements' in order to reflect the obligations of the Offshore (PPC) Regulations 2013. The offshore industry will be consulted - by the end of July / early August 2013 - on drafts of the revised documentation before updated versions are formally published. If, prior to the revised documentation being made available, any Operators need to apply for a new permit under the Offshore (PPC) Regulations 2013 then they should use the existing application form. See links below to the extant Guidance Notes, the present guidance / forms for permit applications and reporting requirements, and other related information.



Graphics and diagrams



The following graphics and diagrams are referred to in the guidance document:



IPPC flowchart



Combustion graphs


Vendor turbine graphics


Project reports



Application form



Reporting requirements



For further information please contact the Environmental Management Team by e-mail at emt@decc.gsi.gov.uk or (01224) 254145 / 254102 / 254050 or please contact your assigned Environmental Manager.



The Greenhouse Gases Emissions Trading Scheme (ETS)



Guidance for EU-ETS Emissions Phase III



Applications must be submitted for all qualifying installations undertaking specified activities that emit specified greenhouse gases, as detailed in schedule 1 of the ETS regulations. For the purpose of these regulations, an installation comprises any ‘stationary technical unit' where one or more schedule 1 activities, and any ‘directly associated activities', are carried out.



The third link above shows indicative allocations to each UK installation with the factor taken into account. We are providing this list now to enable operators to assess the impact of the factor. The list is provisional and does not represent the confirmed free allocation to installations. Further work is required to check and finalize allocations, including to take account of adjustments arising from capacity changes since 2011 and changes to carbon leakage status, and to transfer the data into the Registry. This process, including final clearance by the European Commission, is expected to take around two months. We anticipate moving allowances into operators' registry accounts around November 2013



EU Emissions Trading Scheme phase III



The Greenhouse Gas Emissions Trading Scheme Regulations 2012 (2012 Regulations) require that operators must notify the regulator of changes in activity levels which occurred during the year. Where you have not had any changes in activity level, you are required to submit a NIL return



You must complete and submit the DECC-OGED Change in Activity Notification form before 00:00 on 31 December 2013 completing separate notifications for each EU-ETS Permit held. Please note this deadline is stipulated in the Regulations and failure to Notify the Department and submit the relevant NE&C Change of Activity form (if relevant) by the 31 December could be regarded as a non-compliance.



The Notification Form asks you to identify whether the Installation has had a capacity reduction as per Schedule 6 (6), full cessation of activity as per Schedule 6 (7) or a partial cessation of activity as per Schedule 6 (8) of the 2012 Regulations, during the year. If the answer is ‘No' simply complete the form and return to emt@decc.gsi.gov.uk
If the answer to any of those questions is ‘Yes' you must then consider if this could have an impact on the NIMs allocation of allowances for a qualifying sub-installation. If the answer is ‘No' simply complete the form and return to emt@decc.gsi.gov.uk.



If the answer is ‘Yes' and the change of activity could have an impact on the NIMs allocation of allowances for a qualifying sub-installation, you will also need to complete the EU Commission New Entrants & Closures (Change of Activity) form for recording and amending the amounts allocated for free in case of significant capacity reductions, cessations and partial cessations of installations. The form is available at https://www.gov.uk/oil-and-gas-offshore-environmental-legislation#the-greenhouse-gases-emissions-trading-scheme-ets



Please complete and return the DECC-OGED Change of Activity Notification form and the NE&C form if relevant to EMT by e-mail at the address above before 00:00 (UK Time) on 31 December 2013.



The UK Regulators have determined that allowances will be held in reserve until the notification form is received. Please note, notification of significant capacity reductions should be accompanied by a verification statement.



The EU Commission form



The reporting form for (New Entrant Reserve applications) significant capacity reductions, cessations and partial cessations has been designed by the EU Commission for ALL operations and therefore there are a number of pages that are irrelevant for the offshore industry. Please do NOT try to modify this form.



There is a significant amount of guidance within the form and you are advised to carefully read and follow the relevant instructions within Tab B: ‘Guidelines and conditions', and within the subsequent pages. As you complete the form (yellow boxes) information will be auto-populated into other relevant sections. The form will also automatically calculate allowances (green boxes) eg in the Partial Cessation section. You are specifically advised NOT to ‘cut and paste' information as this will lead to unintended modifications within formulae. If you experience any issues with the form please contact EMT.



When the department receives your completed form, you will receive an acknowledgement. The information provided will be assessed and we will inform you of any anticipated changes to your allowances. All forms received will be collated and forwarded to the Commission for the final determination of allowances.



Even if you are not required to complete the EU Commission form at this time, operators are advised to familiarise themselves with this form, as this will be relevant for all operators in the future.



If you have any comments or queries please contact the EMT.



Supplementary material from the seminar held at Carmelite Hotel in Aberdeen on 26 May 2010.



EU ETS phase II



Installations starting new entrant activities after 31 December 2007 and before 1 January 2013 can apply to the Phase II NER. All applications will require independent verification, including those from Later Phase I New Entrants, where the input data used in the benchmarking spreadsheet has changed from that used in the Phase I NER application. Further guidance is available on the DECC website.



Annual monitoring requirements and emissions reporting




Please note that the Annual emissions spreadsheet above has been adjusted for 2013 reporting on the extreme chance ETSWAP is not up and functioning. Please consult with DECC-OGED before you use this spreadsheet.




For further information please contact:
Email: emt@decc.gsi.gov.uk



The Marine and Coastal Access Act 2009



The introduction of the Marine and Coastal Access Act (MCAA) 2009 has introduced a marine licensing system to cover those offshore energy activities that are the responsibility of DECC, and which are not excluded from the MCAA licensing provisions. The licensable activities are principally related to decommissioning operations, including activities such as disturbance of the seabed, the depositing and removal of materials and the use of explosives.



The vast majority of offshore energy activities relating to oil and gas exploration and production, gas unloading and storage, and carbon dioxide storage operations are controlled under the Petroleum Act 1998 (as amended) or the Energy Act 2008, and specifically excluded from the marine licensing provisions under Part 4, section 77 of the MCAA. Therefore, operations that can be controlled under the Petroleum Act 1998 or the Energy Act 2008; or are exempted under the Marine Licensing (Exempted Activities) Order 2011 (as amended), do not require a MCAA licence.



Regulations



Guidance



Guidance in relation to those offshore energy activities that are covered by the MCAA marine licensing regime is currently being developed. In the interim, please contact the Environmental Management Team if you have any questions.



Application form



Reporting Requirements



  • Authorised deposit / disturbance form (currently under preparation)

For further information please contact the Environmental Management Team by e-mail at emt@decc.gsi.gov.uk or (01224) 254145 / 254102 / 254050 or please contact your assigned Environmental Manager.



The Food and Environment Protection Act 1985, Part II Deposits in the Sea



The Food and Environmental Protection Act (FEPA), Part II Deposits in the Sea, used to cover the discharge or placement of substances or articles in the sea or on the seabed where the deposits could not be covered by other legislation. Following the introduction of the licensing provisions of the Marine and Coastal Access Act 2009, on 6 April 2011, it was dis-applied in English and Welsh waters and offshore waters adjacent to Scotland. However, FEPA Part II still applies in Scottish territorial waters, between the 3 NM Scottish controlled waters limit and the 12 NM Scottish territorial sea limit, where DECC will remain the licensing authority. For activities within Scottish controlled waters, the Scottish Government is the licensing authority and the Marine (Scotland) Act 2010 is the relevant controlling legislation.



The vast majority of offshore energy activities relating to oil and gas exploration and production, gas unloading and storage, and carbon dioxide storage operations are controlled under the Petroleum Act 1998 (as amended) or the Energy Act 2008, and are specifically excluded from the marine licensing provisions of both the Marine and Coastal Access Act 2009 (MCAA) and the Marine (Scotland) Act 2010 (MSA). Information in relation to exceptions where it may be necessary to obtain a FEPA Part II licence will be included in the MCAA guidance.



Regulations



Application form



  • Application for a FEPA Licence can be made using the Marine Licence application - handled by the UK Oil Portal

For further information please contact the Environmental Management Team by e-mail at emt@decc.gsi.gov.uk or (01224) 254145 / 254102 / 254050 or please contact your assigned Environmental Manager.



The Energy Act 2008, Part 4A Consent to Locate



The Department of Energy and Climate Change (DECC) assumed responsibility for administration of Section 34 of The Coast Protection Act 1949 (CPA) in relation to offshore oil and gas operations on behalf of the Department for Transport (DfT) in October 2005. As of April 2011, the Consent to Locate (CtL) provisions of Section 34 of the CPA were incorporated into The Marine and Coastal Access Act 2009 (MCAA). The MCAA provided a regulatory framework for a new marine licensing regime that included consideration of works detrimental to navigation. Although the MCAA licensing regime applies to a number of offshore oil and gas operations, including the disturbance of the seabed and the deposit and removal of substances or articles during the course of decommissioning operations, Section 77 of the MCAA excludes the vast majority of offshore oil and gas operations and carbon dioxide storage operations controlled under The Petroleum Act 1998 (PA) or The Energy Act 2008 (EA). To maintain the CtL provisions for these excluded operations, Section 314 of the MCAA created a new Part 4A of the EA, transferring the provisions of Section 34 of the CPA to the EA and transferring regulatory competence from DfT to DECC.



The issue of a CtL to an individual or organisation by the Secretary of State under Part 4A of the EA allows installation of the proposed offshore structure or operations providing they are undertaken in accordance with the consent conditions. It allows DECC to insist upon the provision of navigational markings that are considered appropriate for the proposed offshore structure or operations.



Regulations



Consultation



DECC have revised the procedures that were in place under the CPA, to ensure that the consenting process under Part 4A of the EA reflected the specific requirements of the operations that are covered by the MCAA exclusion. The revision accounted for requirements set out in Part 4A of the EA and the development of offshore practices that were not envisaged when the CPA was drafted. It has also taken into account the views of the bodies consulted on navigational matters prior to issuing Consents to Locate. DECC has now completed its revision, and the new consenting process was subject to consultation which ended on 30 November 2012.



Guidance



Guidance is in the process of being updated to address comments received through the consultation process. In the interim, please refer to the DECC response document for further information or contact the Environmental Management Team if you have any questions.



Application forms



  • Consent to Locate Application Form - handled by the UK Oil Portal

Reporting requirements



Useful documents



Useful Links



For further information please contact the Environmental Management Team by e-mail at emt@decc.gsi.gov.uk or (01224) 254145 / 254102 / 254050 or please contact your assigned Environmental Manager.



The Energy Act 2008 (Consequential Modifications) (Offshore Environmental Protection) Order 2010



The Energy Act 2008 makes provision under Part 1, Chapter 2 for the regulation of gas importation and storage through a licensing and enforcement regime for combustible gas. The Offshore Gas Storage and Unloading (Licensing) Regulations 2009, made under Part 1 of the Energy Act 2008, came into force on the 13 November 2009.



The Energy Act 2008 also makes provision under Part 1, Chapter 3 for the regulation of the storage of carbon dioxide (with a view to its permanent disposal or as an interim measure prior to its permanent disposal), through a licensing and enforcement regime. The Storage of Carbon Dioxide (Licensing etc.) Regulations 2010, made under Part 1 of the Energy Act 2008, came into force on the 01 October 2010.



Following enactment of the Energy Act 2008 (Consequential Modifications) (Offshore Environmental Protection) Order 2010, which came into force on 01 July 2010 the provisions of the following regulations now also apply to gas unloading and storage, and carbon dioxide storage as they do to oil and gas activities. This extension is, however, subject to geographical limitations to reflect the different devolution settlements relating to offshore activities.



For further information please contact the Environmental Management Team by e-mail at emt@decc.gsi.gov.uk or (01224) 254145 / 254102 / 254050 or please contact your assigned Environmental Manager.



  • The Offshore Petroleum Production and Pipelines (Assessment of Environmental Effects) Regulations 1999 (as amended)

  • The Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 (as amended)

  • The Offshore Marine Conservation (Natural Habitats, & c.) Regulations 2007 (as amended)

  • The Offshore Combustion Installations (Prevention and Control of Pollution) Regulations 2001 (as amended)

  • The Offshore Installations (Emergency Pollution Control) Regulations 2002 (as amended)

  • The Offshore Chemical Regulations 2002 (as amended)

  • The Greenhouse Gas Emissions Trading Scheme Regulations 2005 (as amended)

  • The Offshore Petroleum Activities (Oil Pollution Prevention and Control) Regulations 2005 (as amended)

  • The REACH Enforcement Regulations 2008 (as amended)

  • The Fluorinated Greenhouse Gases Regulations 2009 (as amended)

The Order



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