NOPSEMA Environment Management Regulatory …...– OSCP Preparation Guidance Note Revision 2 – Explanatory Note Assessments 98% in timeframe – 1 exception at 32 days\爀屲5 workshops

$Page 1: NOPSEMA Environment Management Regulatory …...– OSCP Preparation Guidance Note Revision 2 – Explanatory Note Assessments 98% in timeframe – 1 exception at 32 days\爀屲5 workshops$
NOPSEMA Environment Management Regulatory Update and Workshop Melbourne 26 July 2012

Introduction

• Agenda – Safety briefing – Introductions and scoping – Regulatory update + Six-month look back – OSCP Guidance and Updates* – EP Guidance Note Project – Update* – Future activities and regulatory reform* – Close

Purpose and Outcomes

• To provide an opportunity to east coast based offshore petroleum operators to contribute to aspects of Environmental Management and its regulation

• Outcomes – Updated knowledge of assessment process and current

status of submissions – Reflected on the first six months of NOPSEMA regulation – Provided input into work priorities and regulatory reform

Synergies

• Mutual agreement on direction • Recognise the importance of and contribute to

continuous improvement

Presenter

Presentation Notes

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

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 EP 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

Regulatory Update + Six-month look back

Overview*

Submissions Received 62 Transferred from DAs 6

Acceptances 26

Refusals 3

Returned to Operator 16

With NOPSEMA 17

*as at 25 July 2012

Summary of NOPSEMA activities 2012 to date

• 60+ operator liaison meetings • Assessments

– 87% accepted vs 13% refused – 98% assessments within timeframe (30 days) – 20 days average time for notification

• Inspection program commenced • 7 industry workshops, Perth and Melbourne

– Environment Plans, OSCP’s, Guidance Development

• Guidance for spill preparedness and response – OSCP Preparation Guidance Note Revision 2 – Explanatory Note

Presenter

Presentation Notes

Assessments 98% in timeframe – 1 exception at 32 days 5 workshops included – 4 in Perth 1 in Melbourne. Guidance – rev 2 and Explanatory note were outcomes from previous workshop Matt to discuss OSCP Guidance Note Revision 2 and Explanatory Note

Engagement program: tailored and two-way communications

Exte

rnal

Opp

ortu

nitie

s

Non

Reg

ulat

ory

Regu

lato

ry Operator liaison

meetings

Operator regulatory clarification meetings

Operator liaison on decisions

Ad-hoc advice requests (email and phone)

Policies and Guidance Notes

NOPSEMA decisions feedback

Industry performance reporting

Industry briefings

Other stakeholder briefings

Industry env mgt workshop program

APPEA committees and quarterly liaison

High level operator liaison

CEO delegation briefings

The Regulator newsletter

Alerts

NOPSEMA feedback/ complaints

Key issues working groups (Co-lead or participate)

Input / review to APPEA guidelines and standards

Regulators for a (APRF, IRF, IOPER and AELERT)

Conference and seminar participation

Assessment and Compliance

• Peak of submissions in January/February but increasing trend since March

• Average time to first notification is 22 days

• 98% of Notifications made within 30 day time period

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0

2

4

6

8

10

12

14

January February March April May June

No. Refused to Accept or Not Reasonably Satisfied

No. Accepted

No in Progress

Presenter

Presentation Notes

Data on this page as at 23 July 2012

Assessment timelines 1 Jan – 30 June 2012

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0 30 60 90 120 150 180

Seismic surveyDrilling

OtherSeismic survey

Pipeline constructionDrillingDrillingDrilling

Seismic surveySeismic surveySeismic surveySeismic survey

OtherOther

Seismic surveySeismic surveySeismic survey

DrillingProduction*

Seismic surveySeismic surveySeismic survey

DrillingDrilling

Seismic surveyOther*

OtherOther

DrillingDrillingDrillingDrillingDrillingDrillingDrilling

Seismic surveySeismic survey

DrillingSeismic survey

OtherDrillingDrilling

Pipeline constructionSeismic surveySeismic survey

Time (No. of Days) NOPSEMA Operator In Progress

June submissions

January submissions

February submissions

March submissions

April submissions

May submissions

Notes: 1. Chart represents assessment status as at 1 July 2012 2. Assessments without "in progress " bars are complete and accepted 3. * indicates activities for which additional time for notification agreed with the operator to allow for complex assessment and/or operator's assessment priorities.

Environment Plan - ALARP

Regulation 11(1)(b) – demonstrates that environmental impacts and risks of the activity will be reduced to as low as reasonably practicable (ALARP) • On commencement - 1 January 2012:

- Limited demonstration of ALARP - Confusion with demonstration of acceptable levels

• 6 months after commencement - now: - Methodologies - Options analysis/cost benefit analysis/hierarchy of controls

• The future: • Refinement and fine-tuning • Consideration and better use of existing studies and information

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Environment Plan - Objectives, Standards, Criteria

• Regulation 11(1)(d) – provides for appropriate environmental performance objectives, environmental performance standards and measurement criteria

• On commencement - 1 January 2012: – Not specific – Not measurable

• 6 months after commencement - now: – Often measurable and specific – Confusion regarding standards and measurement criteria

• The future: – SMART – Risk and activity specific

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Environment Plan -Consultation

Regulation 11(1)(f) – demonstrates the operator has carried out consultation with relevant persons • On commencement - 1 January 2012:

– Brief description of consultation

• 6 months after commencement - now: – Summary – Generally contains an assessment of merit – Full text of responses

• The future: – Strategic engagement by industry

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Environmental Management Inspections

Offshore Petroleum and Greenhouse Gas Storage Act 2006 • Section 646, 600, 601 • Inspection policy published • Inspection types: planned and other • Provision of inspection briefs and reports • Sampled and team based approach to

inspections • Inspection to secure compliance against the

accepted EP 16 A232763

Presenter

Presentation Notes

Optional graph – Target of 25 inspections in FY2012/2013. Inspection planning has aimed to achieve a spread of operators and a range of activity types (drilling, production, seismic etc)

Environmental Management Inspections

Annual Environmental Management Inspection Program • Inspection Targets

– 4 Inspections have been undertaken or currently underway – 2012/13 inspection target of 25 different activities – Inspections will include a sample of facilities, MODU’s and

other activity types – Long term inspection target of ~70 activities

• Transitional Arrangements – Environment plans accepted by DA’s will not be the focus of the

annual inspection program

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Determining the extent of monitoring warranted

Gaps in regional baseline environmental data

Challenges

Demonstrating risks and impacts are acceptable and ALARP

Relating objectives to protection of the receiving environment

Demonstrating environmental objectives can be met

Limited data sharing and lessons learnt

Flexibility to demonstrate an appropriate level is achieved

Industry collaboration at regional level

Increase regulator and stakeholder confidence

Results in accepted and achievable approaches

Environmental monitoring requirements not explicitly stated in the Regulations

Opportunities

Reduce operator requirements for monitoring

Greater transparency and less duplication of effort

Environmental monitoring requirements not explicitly stated in the Regulations

Monitoring Challenges and Opportunities

Presenter

Presentation Notes

Monitoring challenges and opportunities for the regulator and industry. Applies equally to monitoring by the research community as we have heard during this conference Then becomes a challenge for the Regulator to assess plans , monitoring program design, results and analysis when no standard is followed. Challenging to understand industry impacts in the broader regional context Might slow up the assessment process Reduces stakeholder and regulator confidence in industry limited ability to assess cumulative impacts of industry activities Also issues with duplication of research or research data not answering questions that they need to be addressed Could continue this way but we cant really see why you would? Research is less valid and useful, costs more and takes more time? PROGRESS SLIDE ON some metadata standards already exist, could be adopted by a wider group Agreed and accepted methodologies – NOPSEMA wont define these but could certainly advise operators that they exist Industry should adopt standards and seek out assistance from the research community to develop standards where there are none, but not be restricted by standards, still need continual improvement If other research work was done using standard methods, would be more comparable and could be used by industry in EIA Benefit to industry to share data and reduce duplication of effort, improve perceptions of the petroleum industry, if more research is done and published about the impacts of petroleum activities it may actually results in fewer studies being needed in the future

Spill Assessment Activities

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0 5 10 15 20 25 30

Any other petroleum-related activity

Construction and installation of a facility

Construction and installation of a petroleum pipeline

Drilling

Operation of a facility

Operation of a petroleum pipeline

Other surveys

Recovery of petroleum using a subsea installation

Seismic surveys

Significant modification of a facility

Significant modification of a petroleum pipeline

Storage, processing or transport of petroleum

Environment Plan Assessment by Activity Type Oil spill detailed topic of assessmentOil spill general assessment

Presenter

Presentation Notes

This slide identifies which activities have a detailed assessment topic related to oil spill response This should be interpreted in context, as in many cases we have only received one or two EPs of including that activity type Further to this, in some cases overlaps exist because an EP may cover more than one activity type Drilling activities show high levels of involvement, while seismic and any other petroleum activity show lesser levels – consistent with the risk based approach for topic selection Overall this further demonstrates NOPSEMAs focus on oil spill contingency planning in the first six months of environmental regulation NOTE: two drilling activities not assessed were ‘Top Holes’ that did not present significant spill risk.

National Plan

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NOPSEMAs Engagement with the National Plan • On commencement - 1 January 2012:

- NOPSEMAs integration into the National Plan - Renewed focus on consultations between operators and OSROs

• 6 months after commencement - now: - Explanatory note published - OSCP Guidance

• The future: - National Plan Review

Presenter

Presentation Notes

Explanatory Note The explanatory clarifies NOPSEMA and AMSAs roles in relation to oil spill preparedness and response for offshore petroleum activities. Aust Gov through RET will lead a whole of government response to a significant offshore petroleum incident. It was developed by NOPSEMA/RET/AMSA and also meets the Montara commission of enquiry recommendation 99 (99 – AMSA to endorse ‘prior’ to regulatory approval) by providing for a process for consultation with AMSA prior to finalising an OSCP. AMSA as National Plan Combat Agency – it is the responsibility of titleholders and operators of petroleum activities to ‘consult with AMSA on any proposed role of AMSA within the OSCP and the response strategy’ NatPlan Review Process NOPSEMA has provided input into the NatPlan review through Feedback on draft review document Strategic stakeholder group meetings Provided feedback to AMSA on the ‘Draft Guideline for the Preparation of Marine Pollution Contingency Plans for Marine and Coastal Facilities’

Any Questions?

OSCP Guidance and Initiatives

Spill Assessment Engagement Timeline

7 November

1 January

6 March

13 April

APPEA Environment Conference

Established need

27 April

30 July

NOPSEMA Starts Regulation

Interim Guidance Published Rev 0

Consolidated Guidance Published

Rev 2

[Annual Reviews]

Consultation Period (30 days)

Included updates from regulatory experience

Received feedback on GN

- AMOSC - DOT Victoria - DMP WA

Consultation Workshop

OSCP Guidance

Feedback

20 March 7 March

NOPSEMA EP/OSCP Workshops

Outline of general

principles in guidance

Provide general feedback on failings in current

submissions

Consultation Workshop

Oil Spill Response

Workshop

28 June

26 July

Regulator Advice Workshop

Environmental

Consultants Association

Regulator Advice Workshop

Today

25 July

Presenter

Presentation Notes

A number of workshops (in both Perth and Melbourne) to assist in the interpretation of the regulations and guidance, and to obtain feedback to improve guidance Consolidated guidance rev 2 is set to be published 30 July This was based on feedback received over the last six months on the Rev0 guidance released on Jan 1 and the Rev1 consultation draft released on March 6

OSCP Improvements

• Observed improvement in the quality of submissions

Presenter

Presentation Notes

This slide was presented at the Perth, Melbourne workshops in March. Most areas have shown improvement consistent improvement. In particular; Consideration of the risks associated with response activities such as dispersant use (including mechanisms to demonstrate risks will be managed to ALARP - logical presentation of controls for dispersant use) Improving performance objectives, standards and measurement criteria Increased consultation and general improvement in the presentation of this information Plans relevant to the risk presented Risk analysis (Environmental description is relevant to the ZPI, Development of credible and reasoned spill scenarios)

Focus Areas

• Response Framework • Communication and

Consultation in Response • Coordination of

Resources • Regulatory Matters

Four Focus Areas

Focus Area A Response Framework and

Responsibilities Division of Responsibility

Duty Holder (title holder / operator) , Combat Agency

Trans-boundary Spills Impacts Commonwealth, State, International

Organisational & Response Structures

Transitional Arrangements Escalation, effective response capability

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3

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1

Focus Area B Communication & Consultation in

Response

Consultation in preparation to respond

Consultation during a response Responders, Stakeholders, Regulators

Response communications and information management

Role of Industry Advisor

14

0

1

2

Focus Area C Coordination of Resources

Oil spill response training and competence

Equipment availability - for multiple operators (more than one spill)

Access to the oil spill response atlas (OSRA)

Financial Arrangements - insurance & cost recovery, responders & stakeholders

Waste management issues

6

2

1

3

4

Focus Area D Regulatory Matters

EPBC Act Exemption

NOPSEMA key functions during response – Assessment, Inspection, Investigation, Enforcement

Significant Incident Directions

3

5

3

EP Guidance Note Project

Guidance note project – why?

• NOPSEMA have recognised that additional guidance around the Environment Plan Regime is necessary

• Family of guidance notes will replace Interim Environment Plan Preparation Guidance Note

• NOPSEMA is developing other guidance outside of the EP Guidance Note Project

EP guidance note – activities

• Initiated process at APPEA environment conference (Nov 2011)

• Interim EP guideline published (replaced previous RET guidance)

• OSCP guideline published • Perth Workshop on structure and scope (May

2012)

EP guidance note project - objectives

• Consistent with OPGGS(E) Regulations

• Consistent with objective based regime

– Focus on ‘what needs to be demonstrated’ not ‘how to demonstrate’

• Provide clear guidance on NOPSEMA’s expectations for Environment Plan content

• Avoid regulatory creep

Guidance note project – current work

• NOPSEMA is restructuring guidance notes to better reflect regulations

• Interim guidance note being updated as overview for subsidiary guidance notes being prepared

• NOPSEMA is reviewing it’s web document structure to make expectations clear (i.e. differentiating regulatory interpretation from general advice)

Guidance note project – Scope

• Key topic areas from Perth workshop: – Line-of-sight to regulations – ALARP – Consultation – Risk Assessment processes – Performance Objectives, Standards and Measurement

Criteria

• Any others identified today….

Any Questions?

Future Activities and Regulatory Reform

Environment Regulations Review

• First major review in 12 years • Headed by the Department of Resources, Energy

and Tourism • NOPSEMA provide specialist technical input • Industry comments coordinated through APPEA • NOPSEMA will coordinate a workshop in August

to collate and provide industry input to RET • Terms of reference finalised and issues paper

currently under draft 38 A232763

Presenter

Presentation Notes

Aiming for best practice regulation within the existing objectives based regime Allows operators flexibility in environmental impact and risk management Onus is on the operator to demonstrate that activity is acceptable and ALARP Opportunity for industry to have input to the process – today in Melbourne and Perth in August Once paper finalised will go for drafting prior to consideration by parliament Process in control of DRET

Workshop Session

• Regulatory review process • Scope of the review • Review topics identified by NOPSEMA

– Operator/Titleholder obligations – Request for further written information – Principle of natural justice – Definition of petroleum activity

• Any other areas identified by industry

Workshop Session

• Suggested topics for this workshop – Definitions (Reg 4) – Acceptance process and procedure (Div 2.2) – Consultation (Div 2.2A) – Contents of an Environment Plan (Div 2.3) – Revision of an Environment Plan (Div 2.4) – Incidents, reports and records (Part 3) – Operators of activities (Div 4.2)

Workshop Session

EPBC Act

• Several options for streamlining under the EPBC Act currently being explored

• Government response to – Productivity Commission – Montara Commission of Inquiry – EPBC Act Hawke Review

• Liaison with SEWPaC and RET ongoing • Reduction in duplication for the upstream petroleum sector • Improvements in environmental regulation for most

activities through a single Regulator with industry focus

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Presenter

Presentation Notes

Collaborative approach to reduction in regulatory duplication In line with goals of the Business Advisory Forum and the Council of Australian Governments Ensuring that environmental outcomes are maintained or improved Reduction in duplication by industry

Legislative Amendments

• Aiming to put forward amendments to the OPGGSA at the spring sitting

• Standardisation of the powers of NOPSEMA inspectors to issue notices and collect evidence

• Polluter pays principle to be enshrined in the Act • Introduction of Civil Penalties– graduated

enforcement regime • Managed by the Department of Resources,

Energy and Tourism

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Presenter

Presentation Notes

Seek to align the powers of NOPSEMA OHS and Petroleum Project Inspectors Will contribute to a more rigorous compliance and enforcement regime for petroleum and GGS activities Will provide NOPSEMA with more options for enforcement and compliance Ensure that the responsibility and costs associated with environmental restoration lie with the polluter Civil penalties will align the OPGGSA with other Commonwealth legislation such as the EPBC and Workplace health and safety Acts An overall increase in penalties and enforcement options.

The next 12 months – Assessment & Compliance

• Continued assessments and inspections – Further clarification on notification of

decisions

• Inherited Environment Plans

• Environmental management workshops

• Environment plan guidance

• Environment regulation review

The next 12 months – Monitoring & Analysis

• Develop guidance notes for:

- Off the Shelf Monitoring Program (OSMP) - Baseline and operational monitoring

• Environmental Impact Monitoring Forum • Advice – presentations, operator liaison meetings

and Regulator articles

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The next 12 months- Spill Assessment

‘ensure all appropriate measures are taken to prepare for and respond to an oil pollution incident from offshore petroleum activities’

• National Plan Review • SpillCon 2013 • Oil Spill Preparedness and Response Forum

Presenter

Presentation Notes

Continuation of core regulatory processes of Assessment, Inspection, Investigation and Enforcement to meet our shared vision National Plan Review – Working on Aust Cth Gov response to the review report to address future governance and operational issues including renegotiation of an IGA Looking to input to the review from an offshore petroleum perspective. Potential to improve the level of cooperation and participation with offshore operators SpillCon – NOPSEMA as an exhibitor – encourage industry attendance – great opportunity to Network, find solutions Proposed APPEA/AMOSC/NOPSEMA/INDUSTRY and possibly RET – OSR forum to address non competitive areas – like oil spill response and provide for collaboration to improve standards across industry

Any Questions and Close

Documents

NOPSEMA Environment Management Regulatory …...– OSCP Preparation Guidance Note Revision 2 – Explanatory Note Assessments 98% in timeframe – 1 exception at 32 days\爀屲5 workshops