Chemicals - Decommissioning
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| Key Legislation |
These Regulations apply to any use and discharge of chemicals from offshore oil and gas operations, including decommissioning operations.
Amendments to the Offshore Chemicals Regulations 2002, made under Schedule 2 of the Offshore Petroleum Activities (Oil Pollution Prevention and Control) Regulations 2005 (OPPC) increase the powers of DECC inspectors to investigate non-compliances and risk of significant pollution from chemical discharges, including the issue of prohibition or enforcement notices.
The amendment regulations came into force on 30 March 2011. See Pending Legislation for a description of key changes to the legislation.
This Act requires an application to be made to the Secretary of State for approval of a Decommissioning Programme (see Decommissioning). This programme will include consideration of chemicals to be used and discharged during decommissioning, although full application will be needed under the Offshore Chemicals Regulations 2002.
REACH is a new European Community Regulation on chemicals and their safe use (EC 1907/2006). It deals with the Registration, Evaluation, Authorisation and Restriction of Chemical substances. The new law entered into force on 1 June 2007. REACH requirements will be phased in over a period of 11 years (see Performance Standards)
The EC REACH Regulations are directly applicable in the UK, however the REACH Enforcement Regulations 2008 provide the regulatory framework for REACH in the UK. The UK REACH Regulations apply to all offshore installations but not ships. DECC has issued an Advisory Note on Offshore Application of REACH. |
| Supporting legislation |
These Regulations control the production and use of certain persistant organic pollutants (e.g. PCBs and PAHs). Requirements include controls on use and waste handling/disposal of products containing such components. Controls on use/discharge will be managed through the existing CEFAS registration scheme under the Offshore Chemical Regulations 2002.
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| Guidance |
- New Offshore Chemical Regulations Guidance (pdf file) are published on the DECC website. Note: revisions to the guidance are not yet incorporated in this website, and will be included at the next quarterly review.
- Other general guidance can be found on the DECC Website.
These notes should be read in conjunction with the main guidance notes as they provide additional information on frequently asked questions.
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| Consent Needed |
Consent for use and discharge of chemicals is needed under the Offshore Chemical Regulations 2002 and this will need to be in place before the start of any decommissioning operations. |
| How to Apply |
Application must be made electronically using a form PON15E. PON15E applications can now be submitted electronically on the UK oil Portal.
It may also be possible for early decommissioning phases (e.g. cessation of production and preparation of platform for Normally Unmanned status for a valid PON15D life permit to be varied (see Production Chemicals).
Well abandonment chemicals associated with a wider decommissioning programme should also be included in the PON15E application. However, for well abandonment not associated with a wider decommissioning programme, application is made through the PON15B (see Well Abandonment).
Applications will need to include environmental risk assessment of each chemical (e.g. using CHARM software). Further guidance on completion of PON15s has been issued by DECC (see Guidance Notes).
Note: A PON15 is a multi function consent application document and may be used to include information required for the following consents (amongst others) as well as a Chemical Permit application if so desired:
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| Who to Apply to |
DECC Office, Aberdeen, email,
emt@decc.gov.uk |
| When to Apply |
Apply 6 weeks prior to operation. Consultations with FRS/CEFAS will be made by DECC. |
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| Requirements of the Regulations |
Operators will need to assess the risks to the environment, which might arise from their particular chemicals use and discharge. For some chemicals e.g. those on the OSPAR PLONOR list, assessment will be straightforward. Most, however, will require a formal process of risk assessment, such as can be done using CHARM software. In this process, the predicted environmental concentration (PEC), determined from a knowledge of individual substance or product chemistry and the conditions of use, is compared with the Predicted No-effect Concentration (PNEC) determined from toxicity tests conducted to agreed protocols. This allows more informed assessments of risk to local sensitivities to be made in particular use and/or discharge scenarios. The use of the CHARM model is compulsory for calculating the Hazard Quotient (HQ) but other risk assessment models may be used to calculate the Risk Quotient (RQ) provided comparability with CHARM can be demonstrated. |
EC Regulation 1907/2006 (REACH) |
REACH deals with the Registration, Evaluation, Authorisation and Restriction of Chemical substances.
The aim of REACH is to improve the protection of human health and the environment through the better and earlier identification of the intrinsic properties of chemical substances. At the same time, innovative capability and competitiveness of the EU chemicals industry should be enhanced. The benefits of the REACH system will come gradually, as more and more substances are phased into REACH.
The HSE is the UK Competent Authority for REACH and is working closely with Defra plus other Government departments and Agencies on the policy / enforcement aspects. HSE enforces maritime Health and Safety Regulations which apply to offshore installations.
To ensure a consistent regime, the offshore enforcement of REACH will be carried out by those who are familiar with enforcement requirements in similar circumstances to that required by REACH. Therefore, HSE and DECC will enforce offshore the aspects of REACH relating to health / safety and environmental protection - using their respective onshore administrative procedures and offshore inspectors to check compliance with the relevant provisions. In this regard, DECC sits on the REACH Enforcement Liaison Group (established by the HSE) to ensure that a proportionate and consistent method of enforcement is adopted.
From an offshore environmental protection perspective, the OSPAR HMCS and REACH requirements will run in parallel, with the HMCS approach to controlling offshore chemicals being appropriately harmonised with the provisions of the EU Regulation.
Accordingly, the UK REACH Enforcement Regulations contain certain provisions from, and makes references to, the OCR so effectively OCR (and hence the HMCS) will be the mechanism for supporting the application of the environmental protection elements of REACH to offshore installations. It should, however, be noted that DECC’s regulatory regime for offshore chemicals does not extend to Scottish controlled waters and therefore, in so far as this area is concerned, REACH will be enforced by an authorised body (i.e. SEPA) on behalf of the Scottish Executive.
REACH provisions will be phased-in over 11 years. Companies can find explanations of REACH in the guidance documents and can address themselves to a number of helpdesks. Also see Guidance Notes.
Appendix 1 of the DECC Guidance Notes on Reach addresses Specific REACH issues pertaining to the offshore sector.
A Timetable of REACH Implementation is available on the DECC Website. |
| Limits Placed on Disposal of Decommissioning Chemicals. |
Term permit for the discharge of chemicals during decommissioning impose the following general duties:
- Chemical concentrations measured at the point of discharge must not exceed the concentrations specified in the permit;
- Chemicals can only be discharged at the specified coordinates (latitude / longitude);
- The discharge rate and volume of chemicals should not exceed the amounts stated within the permit; and
- The chemicals can only be discharged at the water depth stated within the permit.
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It is unlikely that monitoring / sampling requirements will be imposed, but if they are this will be a part of the conditions attached to the Chemical Term Permit or Works Authorisation.
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| What to Report |
Chemical Use and Discharge
Reports should be made on decommissioning chemicals as required by DECC electronically to the EEMS website. Forms are available for download and when these are completed, they are submitted electronically to EEMS. |
| Who to Report to |
Chemical Use and Discharge
Completed EEMS reports are submitted electronically to the EEMS website. |
| When to Report |
Chemical Use and Discharge
EEMS reports to be submitted 28 days after the end of each quarter reporting use/discharge of chemicals in that quarter. |
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| Non Compliance |
The DECC Permit Condition Non-Compliance Notification Form is to be used for reporting any identified non-compliances against Chemical Permit Conditions issued under the provisions of the Offshore Chemical Regulations 2002. A non-compliance report must be submitted to DECC within 2 days of the event occurring.
Examples of these may include, but not be limited to: identified over use of chemicals; or use and/or identified discharge of unpermitted chemicals following an internal review against permit requirements. In addition the form may be used to notify DECC of any other applicable notifications specifically as required with the chemical permit conditions as appropriate.
If consent limits are likely to be exceeded, a variation to the chemical permit should be submitted (and approved) before this occurs, or a non-compliance report will be required. It is an offence not to submit a non-compliance if chemical permit conditions are not met.
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| Chemical Spill |
Any accidental spill of chemicals must be reported to DECC using a PON1 (see Chemical Spills for additional details). |
| Offshore Inspection |
The DECC Environmental Inspectorate Enforcement Policy sets out the general principles that Inspectors shall follow in
relation to enforcement including prosecution.
At any reasonable time (or, in a situation which in his opinion may give rise to a risk of significant pollution to the environment as a result of the use or discharge from an offshore source of an offshore chemical, at any time) the inspector may board any offshore installation to undertake inspections and investigations. |
| Enforcement and Prohibition Notices |
DECC, if of the opinion that the OCR 2002 Regulations have been contravened, may issue an enforcement notice. This will specify the matters that constitute or are likely to constitute a contravention, steps required to rectify the matter and the time period within which these steps must be undertaken. If an enforcement notice is not addressed, DECC may take action itself and recover reasonable costs back from the operator.
If DECC is of the opinion that the operation of an offshore installation involves an imminent risk of serious pollution as a consequence of any discharge of chemical, DECC may serve a prohibition notice. This will specify the pollution risk, the steps required to remove it and the time period, and may withdraw a permit wholly or in part until the prohibition notice is withdrawn. |
| False or Misleading Information |
DECC may by notice revoke a permit granted where they are of the opinion that the application for the permit in question contained any information or statement which was false or misleading in a material particular or where the operator in question has been guilty of a breach of any condition attached to the permit. |
| Offences |
A person is guilty of an offence if he:
(a) Uses or discharges any offshore chemical in the relevant area without a permit;
(b) Uses or discharges any offshore chemical in breach of the terms of any condition attached to any permit;
(c) Is seen by an inspector to use or discharge of an offshore chemical that involves a serious and imminent risk of pollution;
(d) Fails to supply any information required to be supplied by virtue of the terms of any permit granted under these Regulations;
(e) Knowingly or recklessly makes a statement which he knows to be false or misleading in a material particular where such a statement:
(i) Is made in connection with or for the purposes of, any application for a permit, the renewal of a permit or the variation of a permit; or
(ii) Is made for the purposes of satisfying any requirement under these Regulations for the supply of information to the Secretary of State or an inspector appointed pursuant to regulation 16;
(f) Willfully obstructs an inspector; or
(g) Without reasonable excuse fails to comply with an obligation imposed in pursuance of the regulations or prevents another person from complying with such a requirement. |
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| Permit Duration |
Permits for decommissioning chemicals will normally be issued for a specified period and are "Term Permits". |
| Renewal |
Not applicable as permits are issued for a specified time period.
If the permit expiry date is likely to be exceeded, a variation should be submitted in order to extend the permit, at least 2 weeks before the due date. Otherwise a new application (28 days) will be required. |
| Emergency Variation |
Permit holders applying for an emergency variation should telephone the DECC out of hours contact. These details will be passed to the DECC on-call Environmental Inspector who will contact the permit holder to further discuss the emergency variation request.
Following a review of the chemical permitting procedures, DECC now require that all emergency chemical variation requests are made in writing following the initial contact telephone call. The DECC on-call Environmental Inspector will email a data request by email, with completed questions returned by email. Following a review of the request a written response granting or approving the variation will be sent by return of email.
The applicant must subsequently formally vary the PON15 permit within 2 working days of the emergency contact.
For more information see DECC Environmental Alert 004/2009 |
| Update Variation or New Permit |
Update – change made after the application but before approval has been given.
Variation – change made after approval has been given.
Application for a variation or update should be made by clearly amending the previously submitted PON15E. |
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| Offshore Chemicals (Amendment) Regulations 2011 |
New Amendment Regulations came into force on 30 March 2011. Revised DECC Guidance is available on the DECC Website; this is not yet reviewed/incorporated into the Oil & Gas UK Register but will be for the next quarterly update. In the meantime, the key changes to the regulations are
- Clearer distinction and definition between intentional (operational) discharges and accidental releases. This will for example, clarify treatment of leaks, particularly in relation to "open" hydraulic fluid systems and the use of leak detection and leak sealant chemicals
- Transfers intentional disposal of unwanted chemicals from FEPA Part II regime to OCR regime, in anticipation of implementation of licensing provisions of the Marine and Coastal Access Act
- Replaces the informal PON5 Part 2 process for well suspension and abandonment with formal permitting processes under OCR and OPPC.
- A new Regulation 3A is included which prohibits any person from releasing an offshore chemical or allowing such a release to coninute and to make the contravention of this provision an offence under Regulation 18 of the 2002 Regulations.
- The Regulations widen the circumstances in which a person can be prosecuted for emitting an offshore chemical so that an intentional emission (i.e. a discharge) will only be lawful if made within the terms and conditions attached to a permit, and any other emission (i.e. a release) will be unlawful.
- Regulation 7(b) amends Regulation 5(2)(d) so that conditions of permits can require necessary measure to be taken to prevent or limit the consequences of any incidents affecting the environment, not merely those arising by accident.
- Regulations 9(b) and 10(b)(ii) remove the requirements to consult the Centre for Environment Fisheries and Aquaculture Science, the Fisheries Research Service and states who are party to the OSPAR Convention in relation to the renewal or variation of a permit.
- Regulation 12 inserts a new Regulation 12a to establish a process for the transfer of a permit from one holder to another.
- Regulation 15 extends the circumstances in which a person may be required to provide information to the Secretary of State about the emission and use of offshore chemicals.
- Regulations 17 and 18 extend the circumstances in which enforcement and prohibition notices can be served to include any release of an offshore chemical or its use or discharge without a permit. Changes are also made to the period within which remedial steps are to be taken under an enforcement or prohibition notice. This aligns enforcement processes for OCR and OPPC (e.g. powers to prevent releases, enforcement notices, prohibition notices and offences).
- Regulation 20 amends provision in relation to offences and makes a number of qualifications regarding defences.
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