Presentation - Introduction to NOPSEMA...Introduction to NOPSEMA Offshore Petroleum Safety,...
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Introduction to NOPSEMA Offshore Petroleum Safety, Integrity & Environmental Management Regulation Northern Territory Government Agency Briefing 7 June 2012
Transcript of Presentation - Introduction to NOPSEMA...Introduction to NOPSEMA Offshore Petroleum Safety,...
Introduction to NOPSEMA Offshore Petroleum Safety, Integrity & Environmental Management Regulation
Northern Territory Government Agency Briefing 7 June 2012
Agenda
Introduction and background Jane Cutler CEO
Regulating safety and well integrity
Regulating environmental management, oil spill contingency plans
Cameron Grebe General Manager Environment
Questions and feedback
Ref 219370
Introducing NOPSEMA
Jane Cutler Chief Executive Officer
PTT EP Montara 2009
© PTT EP
© PTT EP
© PTT EP
NOPSA to NOPSEMA background & history
NOPSA established for regulation of safety (1 January 2005)
Productivity Commission Review of the regulatory burden on the offshore petroleum industry
Montara Commission of Inquiry Australian Government response to establish single national regulator
NOPSEMA established including addition of environmental management regulation (1 January 2012)
NOPSA regulation of well integrity (April 2011)
Presenter
Presentation Notes
2005: NOPSA established for regulation of safety 2009: Productivity commission recommended a single, national regulator for offshore petroleum in 2009 2011: Montara Commission of Enquiry Final Government Response to 92 out of 105 recommendations accepted: Establish a single, independent national regulator for Petroleum activities in Commonwealth waters and in waters where State responsibilities have been conferred National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) NOPTA for administering titles 1 April 2012: NOPSA regulation of well integrity 1 January 2012: NOPSEMA commenced
Independent statutory authority
Department of Resources, Energy & Tourism
Secretary
Joint Authority
National Offshore Petroleum Titles
Administrator (NOPTA)
Commonwealth Minister for Resources
NOPSEMA
NOPSEMA CEO
NOPSEMA Advisory Board
Chair
State/NT Ministers for Resources
reporting where powers conferred
Vision A safe and environmentally responsible
Australian offshore petroleum industry
Mission To independently and professionally regulate
offshore safety, integrity and environmental management
Legislation administered by NOPSEMA
wells via resource mgt regulations
Commonwealth Offshore Petroleum and Greenhouse Gas Storage Act 2006
safety regulations
Schedule 3 – OHS law
environment regulations
Presenter
Presentation Notes
A ‘General Duties’ regime Performance-based, but with some prescriptive elements An independent Safety and Environmental Management Authority A duty holder’s management plan, accepted by government is used as a permissioning document: Safety case well operations management plan environment plan are required in order to undertake activities Specific clauses of the OPGGSA - Schedule 3 to Cth OPGGSA OPGGS (Safety) Regulations 2009 Part 5 of the OPGGS (Resource Management and Administration) Regulations 2011 [Wells regulations] OPGGS (Environment) Regulations 2009 Full legislation available at Commonwealth Attorney-General’s website: comlaw.gov.au
Legal framework
• A ‘General Duties’ regime for offshore petroleum & greenhouse gas storage operations
• Performance-based, but with some prescriptive elements
• An independent Safety and Environmental Management Authority, funded by levies on industry
• A duty holder’s management plan, accepted by NOPSEMA is used as a permissioning document:
₋ Safety case
₋ Well operations management plan
₋ Environment plan
Presenter
Presentation Notes
Not presented, used as speaking notes on previous slide
NOPSEMA operates under legislated functions
Monitor & Enforce Investigate
Promote Advise
Co-operate Report
Compliance
Improvement
Governance
Presenter
Presentation Notes
NOPSEMA Approach Independent and Professional -Transparent, coherent policies and processes, shared with industry and consistent with the requirements of the regulations, administered by a critical mass of skilled professionals that focus on ensuring duty holders, and the regulator, comply with their obligations specified in law Respect for “due process” -Timely and competent decisions based on criteria set out in the regulations -Processes outside the regulatory requirements are not created -Requirements and interventions by the regulator are not arbitrary Certainty for industry and a reduction in regulatory burden Ongoing dialogue
NOPSEMA approach to regulation
• Independent and professional - Transparent, coherent policies and processes, shared with industry and
consistent with the requirements of the regulations, administered by a critical mass of skilled professionals that focus on ensuring duty holders, and the regulator, comply with their obligations specified in law
• Respect for “due process” - Timely and competent decisions based on criteria set out in the regulations - Processes outside the regulatory requirements are not created - Requirements and interventions by the regulator are not arbitrary
• Certainty for industry and a reduction in regulatory burden
• Ongoing dialogue
Scope of regulation – jurisdiction
NOPSEMA
Relevant State/NT Minister or NOPSEMA where powers conferred* * Current conferrals: for safety only In all states except WA
EPBC Act referral(s) (and EIA) S
EW
PaC
[E
PBC
Act
]
EPBC Act decision EPBC Act
conditions of approval/compliance
acreage release &
bid
title surrender
award title
NO
PTA
/JA
[O
PGG
S A
ct]
field development
plan
Seismic / other surveys: Environment Plan (EP)
Drilling: SC, EP, WOMP, AAUWA
NO
PSEM
A [O
PGG
S A
ct] Construction,
Production: SC, EP, PSZ
Decommissioning: SC, EP, AAUWA
Construction Operations Decommiss- ioning
Development Exploration life cycle
Scope of regulation across the petroleum resource development life cycle
Presenter
Presentation Notes
The OPGGSA governs all petroleum activities across the exploration and development life cycle Titleholders and others bearing duties and responsibilities in relation to how the resource is developed under the Act enter the regime through the grant of title, in response to an acreage release and bidding process… and leave the regime through surrender of title…. All regulated by the newly created National Offshore Petroleum Titles Administrator (NOPTA), which is part of the Commonwealth Department of Resources Energy and Tourism. Under the same legislation and regulations, NOPSEMA, has certain responsibilities to make decisions on petroleum and greenhouse gas storage operations, generally via permissioning documents: EP – Environment Plan SC – Safety Case and WOMP – Well Operations Management Plan And other administrative decisions such as well approvals (via Applications for Approval to Undertake Well Activity or AAUWA) and applications for the creation of petroleum safety zones. EPBC Act – Environmental Protection & Biodiversity Conservation Act 1999 OPGGS Act – Offshore Petroleum and Greenhouse Gas Storage Act 2006 SEWPaC – Commonwealth Department of Sustainability, Environment, Water, Population and Communities NOPTA – National Offshore Petroleum Titles Administrator JA – Joint Authority
NOPSEMA’s regulatory activities
Assessment – Independent, sampled evaluation of an operator’s submission against
the regulations – Challenge operators: “Have you done enough?”
Inspection – Independent, sampled inspection of the petroleum activity against
the accepted permissioning document and regulations – Challenge operators: “Are you doing what you said you would do?”
Investigation – Independent inspection to determine what went wrong and
determine whether enforcement/prosecution is required – Challenge operators: “What wasn’t done? What can we learn?”
Enforcement – Take action within powers under the Act and regulations to secure
compliance
Regulating safety and well integrity
© Los Angeles Times
BP Macondo 2010: Environmental cost
© US Coastguard
© Transocean
BP Macondo 2010: Human cost
11 people lost their lives 11 families lost loved ones
NOPSEMA regulatory scope
Functions Aspects
Environmental management
Safety Wells General administration
Scope Petroleum activities People at facilities
Well integrity Petroleum exploration and recovery
Dutyholder Operator of petroleum activities
Operator of facility
Titleholder Titleholder
Permissioning document
Environment Plan (including OSCP)
Safety Case Well Operations Management Plan
Titles & conditions
Compliance Petroleum Project Inspectors
OHS Inspectors OHS Inspectors Petroleum Project Inspectors
Powers Entry, information OHS related entry, seizure, Notices
OHS related entry, seizure, Notices
Entry, information
Funding Environment Plan Levy
Safety Levy Well Levy Reimbursement from NOPTA
Petroleum Safety Zones
• Objective: Protect wells, structures & equipment from vessels and ensure the safety of navigation
• Mechanism: Petroleum safety zones published in the Gazette by NOPSEMA
• Criteria: A petroleum safety zone may extend to 500m around the well, structure or equipment
• Process: • Established via application by
Operator or by NOPSEMA directly • NOPSEMA also assesses applications
for entry
Presenter
Presentation Notes
NOPSEMA assesses applications �for entry: Consent for vessels to enter and be present in �a petroleum safety zone; and Authorisation for a vessel to enter and be �present in “the area to be avoided” (a large �defined area in the Bass Straight detailed in �schedule 2 to the OPGGSA)
Directions
• NOPSEMA has general and remedial direction-giving powers • Ministerial directions (resource management, resource security and data
management) prevail over NOPSEMA directions • Significant Incident Directions enable NOPSEMA to direct a titleholder, in
the event of a significant offshore petroleum incident that has caused or might cause an escape of petroleum, to: – take action (prevent, eliminate, mitigate, manage or remediate) or not to
take an action, and – may be unconditional or subject to conditions
• The direction may apply either within or outside the titleholder’s title area
Safety and well integrity activities - 2011
INDUSTRY
35 Operators 209 Facilities
447 Assessments submitted
340 Incidents notified
30 Accidents
310 Dangerous Occurrences
NOPSEMA
48.2 FTE Regulatory Staff 23.3 FTE Support Staff
382 Assessments Notified
157 Facilities Inspections
0 Major Investigations 11 Minor Investigations
329 Incident reviews
100 Enforcement Actions
BP Macondo 2010
Immediate Cause: Primary cementing integrity
failure and BOP
Root Cause: Systemic failure of management systems, failure to interpret test, no operating procedures
© US Coastguard
© US Coastguard
PTT EP Montara 2009
Immediate Cause: Primary cementing
integrity failure
Root Cause: Systemic failure of management systems, non-compliance with operating procedures
© Skytruth
© PTT EP
Regulating environmental management
Cameron Grebe General Manager Environment
NOPSEMA regulatory scope – environment
Functions Aspects
Environmental management
Safety Wells General administration
Scope Petroleum activities People at facilities
Well integrity Petroleum exploration and recovery
Dutyholder Operator of petroleum activities
Operator of facility
Titleholder Titleholder
Permissioning document
Environment Plan (including OSCP)
Safety Case Well Operations Management Plan
Titles & conditions
Compliance Petroleum Project Inspectors
OHS Inspectors OHS Inspectors Petroleum Project Inspectors
Powers Entry, information OHS related entry, seizure, Notices
OHS related entry, seizure, Notices
Entry, information
Funding Environment Plan Levy
Safety Levy Well Levy Reimbursement from NOPTA
Presenter
Presentation Notes
General administration covers Petroleum Safety Zones The blow-out of the BP, Macondo well on 20 April 2010 had very significant environmental costs In addition, the event was a human tragedy with 11 fatalities. It was a major accident event in which a series of risk control barriers failed: Well integrity was not established Well control was lost Hydrocarbons were ignited The Blow-out Preventer did not seal The accident record is a reminder of the vulnerability of people and the environment to uncontrolled releases of hydrocarbons and the ongoing need to prevent major accidents events. The offshore petroleum regulatory regime, administered by NOPSEMA, makes the party that creates risks, accountable for reducing those risks to a level that is as low as reasonably practicable (ALARP). Taking the safety pillar first, the objective is to protect people at offshore petroleum facilities which include platforms, floating production storage and offloading (FPSOs), drilling rigs, construction vessels and pipelines. The operator is the person who is in day-to-day management of the facility. The general duty provisions require the operator of a facility to take all reasonably practicable steps to ensure the facility is safe – a performance-based regime. Before operators can commence activities, they must have a safety case, covering those activities, accepted by NOPSEMA. The safety case documents the operators risk management arrangements, identifying hazards and risks, and how they will be controlled. In the safety case the operator must demonstrate, or make the case to government that the barriers they have chosen reduce risk ALARP. Once operating, NOPSEMA’s OHS inspectors implement a risk-based program of inspections and audits to verify that operators are meeting their obligations in the general duty and the accepted safety case. NOPSEMA also receives reports of accidents and dangerous occurrences which are reviewed and, where appropriate, investigated by NOPSEMA. This monitoring to secure compliance is supported by powers to enforce, ranging from report recommendations, notices through to withdrawal of safety case acceptance. A similar regime applies to regulating well integrity. However, the primary duties fall to the titleholder, and the permissioning document is the Well Operations Management Plan. With the National Regulator amendments to the Offshore Petroleum and greenhouse Gas Storage Act, NOPSEMA also administers Petroleum Safety Zones and has Direction giving powers. The details of our activities of last year in relation to Safety and Integrity regulation are shown, highlighting the numbers of assessments, inspections and enforcement actions. Returning to major accidents and considering lessons learned, we see commonality in roots causes and the need to improve design, operating and maintenance practices to prevent recurrence.
Scope: What requires an Environment Plan
• Petroleum and greenhouse gas storage activities
© ExxonMobil
© Woodside
© BHPBilliton
© US Coastguard
© Technip
© Stena
Presenter
Presentation Notes
Full list of petroleum
Scope: risks and impacts on…environment
• Ecosystems & their parts including people and communities
• Natural and physical resources • Qualities, characteristics of locations, places and areas • Heritage value of places …including the social, economic and cultural features of these matters.
Presenter
Presentation Notes
Identical definition of environment to that provided in the EPBC Act 1999
Environment plan regulatory requirements
• Required before activity commencement • Must contain an oil spill contingency plan • Specific objectives-based acceptability criteria
must be met, including: – Appropriate for nature and scale – Risks as low as reasonably practicable (ALARP) – Risks must be acceptable – Appropriate performance objectives and standards – Appropriate consultation
Consultation process in the offshore petroleum EP regime
REVIEW THE LEGISLATIVE
REQUIREMENTS & GUIDANCE
CONSIDER FEEDBACK,
RESPONSE & ACTIONS IN ABSENCE OF FEEDBACK
EVALUATE THE RISKS AND IDENTIFY
POTENTIAL CONTROLS
IDENTIFY THE RISKS,
STAKEHOLDERS &
STAKEHOLDER ISSUES
Assessment of submission
NOPSEMA
SUBMIT EP
(&OSCP) TO
NOPSEMA FOR
ASSESS-MENT PL
ANN
ING
STE
PS
COMMENCE ACTIVITY
AND REVISE
monitor & enforce
Implementation: ongoing consultation
Operators
Planning: communication with ‘relevant persons’ on impacts relating to functions, activities or interests
Stakeholders
Consultation with you as ‘relevant persons’
Operators may be coming to you/your organisation for ‘stakeholder engagement’ & to comply with the Regulations:
a. wanting to provide information; and b. seeking input / feedback from you
NOPSEMA suggests organisations plan and prepare for consultation to ensure consultation is effective & efficient The Environment Regulations require an operator to address relevant persons feedback where there functions, activities or interests are affected
• operators may need your feedback in order to have an environment plan accepted
What does this mean for you ?
Opportunity to influence operators’ consultation approach
1. Communicate your consultation expectations of operators (ideally via published guidance): • What information you need to make a judgement on whether your
functions, activities and interests are affected? – Features of the activity: location? oil type? timing? – Agreement of roles and responsibilities prior to and during a significant incident? – Ongoing consultation/notification requirements? – Cost recovery, insurance, indemnity arrangements?
• How (eg email, meetings, letter, phone calls), when and what format you would prefer the information?
• Who is/are the primary contact(s) for your organisation?
2. Provide timely and focussed feedback to operators: • Providing feedback ensures your input can be taken into account • Written feedback not essential but ensures that NOPSEMA is presented
with information under Regulations 3. Consider strategies to improve efficiency and effectiveness (e.g.
consultation via APPEA?)
Presenter
Presentation Notes
Question marks are deliberate; we don’t know what others actually want to see and why. We need all other agencies to clearly articulate the what and why.
NOPSEMA’s role: publication and notifications
• Publish information: – Environment plan submission metadata – Environment plan summary published after acceptance
• React to notifications by Operator: – Commencement/completion
of activities – Reportable incidents notified
to NOPSEMA
• Monitor & enforce compliance: – Sampled inspection of operator’s
compliance with ongoing consultation plan provided in accepted EP
www.nopsema.gov.au
Oil spill contingency planning
Cameron Grebe General Manager Environment
Framework
Oil Pollution Preparedness, Response and Cooperation, 1990 (OPRC90)
‘Protection of the Sea Acts’
Offshore Petroleum and Greenhouse Gas
Storage Act
International
Australia
Environment Regulations
Operator’s EP (with OSCP)
National Plan
Organisational arrangements & NOPSEMA role (simplified)
Operator/ Titleholder
Regulator and Statutory Agency
NOPSEMA
Oil Spill Response Organisation(s)
Commonwealth Agencies led by
RET (OPIRRC)
“Combat Agency” Operator or Nominated Combat Agency
Monitor and enforce
compliance
Oil Spill Response
Organisations
National Plan Administrator
AMSA
Operator/ Titleholder
Regulator
NOPSEMA
Major Hazard Agencies
State/NT
Planning/Preparedness Response
assessment of
submissions
Presenter
Presentation Notes
Everyone has a role, but specific activities, functions and interests differ
Environmental risks of operations
Environmental risks of operations for potential emergency conditions
Proposed Activity
Hydrocarbon Release
Identify & Evaluate Impacts and Risks
Performance Objectives, Standards &
Measurement Criteria
Response Technique
Identify & Evaluate Impacts and Risks
Performance Objectives, Standards &
Measurement Criteria
Implementation Strategy inc. OSCP RESPONSE TECHNIQUES
OSCP Approach: risks from response need to be managed
Other environment regulation activities in 2012
• Consolidation of environmental management in NOPSEMA – Inherited environment plan review and requests for revision – Commencement of inspections – Operational and scientific monitoring program guidance – Other guidance in support of regulations and NOPSEMA policy
(www.nopsema.gov.au/environmental-management)
• Review of Environment Regulations – Coordinated by Department of Resources, Energy and Tourism
(www.ret.gov.au)
• EPBC Act streamlining – Identification and implementation of administrative and other
opportunities to reduce duplication and improve regulation
Questions?
