Chemicals - Drilling

• Pollution Prevention and Control Act 1999
• Offshore Chemicals Regulations 2002
• Offshore Chemicals (Amendment) Regulations 2011

Offshore operations involving the use and/or discharge of chemicals must be the subject of a chemical permit.

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 and brings in a number of changes, including (amongst others) (also see Guidance Notes):

• 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
• 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.

• EC Regulation 1907/2006 (REACH) as amended
• The REACH Enforcement Regulations 2008 as amended

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.

• Convention on the Protection of the Marine Environment of the North East Atlantic 1992 (OSPAR Convention)
• OSPAR Guidelines for Completing the Harmonised Offshore Chemical Notification Format (HOCNF).
• OSPAR Recommendation 2006/3 on Environmental Goals for the Discharge by the Offshore Industry of Chemicals that are, or which contain Substances Identified as Candidates for Substitution (see Pending Legislation)
• OSPAR Recommendation 2005/2 on Environmental Goals for the Discharge by the Offshore Industry of Chemicals that Are, or Contain Added Substances, Listed in the OSPAR 2004 List of Chemicals for Priority Action (see Pending Legislation)
• OSPAR Recommendation 2000/2 on a harmonised mandatory control system for the use and reduction of the discharge of offshore chemicals as amended by OSPAR Decision 2005/1
• OSPAR Decision 2000/3 on the Use of Organic-phase Drilling Fluids (OPF) and the Discharge of OPF-Contaminated Cuttings
• OSPAR Recommendation 2010/3 on a Harmonised Offshore Chemical Notification Format (HOCNF)
• OSPAR Recommendation 2010/4 on a Harmonised Pre-Screening Scheme for Offshore Chemicals
• OSPAR Guidelines 2010/5 for Completing the HOCNF
• Food and Environment Protection Act 1985 (FEPA)
• Deposits in the Sea (Exemptions) Order, 1985
• Previous Offshore Chemical Notification Scheme (OCNS)

• EC Regulation 850/2004 on Persistent Organic Pollutants
• The Persistent Organic Pollutants Regulations 2007

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.

• DECC Offshore Chemical Regulations Guidance (March 2011) (pdf file)
• DECC OCR Website

• DECC Advisory Note on Offshore Application of REACH (February 2011 - Version 5)
• REACH Guidance available on ECHA Website
• In addition, the HSE has a very comprehensive website providing guidance on REACH - the website is accessible from: http://www.hse.gov.uk/reach/index.htm.

There is a requirement for the operator to obtain a permit to use and discharge drilling chemicals. This permit must be in place before commencement of operations.

For discharges of excess cement and other surplus material at end of operations - see Performance Standards .

An application for the grant of a permit from DECC under regulation 4 is made via a electronic PON15B. It shall contain -

• A description of the offshore source on or from which the offshore chemical is to be used or discharged, and the location of the offshore source in the relevant area;
• A description of the proposed technology and other techniques for preventing or, where this is not possible, reducing the use or discharge of the offshore chemical from the offshore source;
• A description of the measures planned to monitor the use or discharge of the offshore chemical; and
• An assessment of the risk of damage to the environment from the use and discharge of the offshore chemicals proposed.

The regulations allow for the acquisition of further information if that submitted is deemed insufficient or incorrect and for the gathering of evidence to verify any statements made.

Note: A PON15B is a multi function consent application document and may be used to include information required for the following consents as well as a Chemical Permit application if so desired:

• EIA Direction under the EIA Regulations (1999) - See Offshore EIA;
• Consent to Locate under Section 4 of the Coast Protection Act 1949 - See Navigational Interference;
• Deposits to Sea licence under Part II of the Food and Environmental Protection Act (FEPA) or the Petroleum Act 1998 - see Deposit of Stabilisation and Protection Materials;
• Disturbance Assessment of European Protected Species under the Offshore Marine Conservation (Natural Habitats &c) Regulations 2007 as amended by The Offshore Marine Conservation (Natural Habitats, &c.) (Amendment) Regulations 2012 - see Protected Species Licensing; and
• Extended Well Tests under the Petroleum Act 1998 - see Extended Well Test.

In addition, as part of ongoing reviews of oil spill contingency arrangements in light of the Macondo well incident, PON15B applications for exploration, appraisal or development wells must:

• Confirm that the operation is covered by an approved OPEP or OPEP application;
• Include a section dealing with accidental events, summarising the worst-case scenarios assessed and modelled in the OPEP and the measures in place to prevent and control the release; and
• Include or reference any relevant environmental impact assessment studies.
• Additional changes may be required in the future, when DECC has reviewed outstanding reports relating to the Macondo incident.

Applications should be made using the following forms:

Wells and sidetracks (including new drilling from platforms) - PON15B.

Workovers, if part of the drilling programme (outside the platform 500m safety zone) – PON15B.

Alternatively the PON15F can be used for all workovers and well intervention programmes - see Workover.

PON15s must be submitted electronically to DECC via the UK Oil Portal. Operators will need to be registered with DECC for access to the Portal.

To set up a UK Oil Portal Account, contact the DECC OED Environmental Management Team at ukop@decc.gsi.gov.uk

Any problems with PON15 submission contact the DECC OED EMT by email at emt@decc.gsi.gov.uk

PON15B (term permits) applications must be made at least 28 days before drilling commences. However, if also seeking a direction that an ES is not required, additional time should be allowed.

PON15F applications must be made at least 28 days before workover or completion. PON15Fs may be annual or term permits (see Workover).

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. Others 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.

OSPAR has now published its overview assessment of the implementation of OSPAR Recommendation 2005/2 on environmental goals for the discharge by the offshore industry of chemicals that are, or contain added substances, listed in the OSPAR List of Chemicals for Priority Action. This refers to the treatment of pipe dopes containing lead.

The discharge of pipe dopes containing lead is now prohibited. All future PON15 applications to use pipe dopes containing lead should only relate to activities where there is no planned or anticipated "discharge" of the dope, and should accordingly be entered in the application and the EEMS return as Zero Discharge. Text should also be included in Section C of the application to confirm the measures that will be taken to justify the zero discharge estimate (detailing how it is being used to ensure zero discharge). Discharges of these pipe dopes are now prohibited, and the Department will be refusing to accept applications that include a proposed discharge of pipe dopes containing lead.

Alternative pipe dopes that do not contain lead can continue to be used for applications where there is an anticipated discharge, and should continue to be assessed and entered in the application and the EEMS return using the default 10% discharge estimate.

Conditions of an approved permit will indicate the types and volumes of chemicals that may be discharged into the environment. These conditions must not be exceeded.

UK National Plan for the phase-out of substances identified as candidates for substitution - in line with OSPAR Recommendation 2006/3

The full text of the current UK National Plan for phase out can be found on the CEFAS website

OSPAR Recommendation 2006/3 requires that as soon as is practicable and not later than 1 January 2017, Contracting Parties to OSPAR should have phased out the discharge of offshore chemicals that are, or which contain substances, identified as candidates for substitution except for those chemicals where despite considerable efforts, it can be demonstrated that this is not feasible due to technical or safety reasons. Demonstration of those reasons should include a description of those efforts.

Having considered the requirements of OSPAR Recomendation 2006/3, the UK has decided to base its National Plan for the prioritisation of phase-out on the following criteria:

• Perceived difficulty of phase out;
• Securing the replacement of candidates for substitution in preference to eliminating operational discharges to the marine environment.
• Prioritisation based on the persistence, bioaccumlation and toxicological properties of the chemical.

The UK National Plan also incorporates justification of continued use and/or discharge as an additional element: for those substances where replacement and/or eliminating discharges to the marine environment is not currently feasible, offshore operators or their chemical suppliers will annually be required to:

• Confirm the efforts made to phase out the use and/or discharge of the candidates for substitution;
• Confirm the nature and timing of planned research and development studies or trials to supplement those efforts conform whether any measures have been taken to reduce the use and/or discahrge of the candidate for substitution; and
• Confirm the technical and/or safety issues that make it necessary to continue use and/or discharge of the candidate for substitution.

UK National Plan level criteria and interim target dates are (See the full text of the UK National Plan (pdf file) on the CEFAS website for definitions of persistence, bioaccumulating and toxicity):

• Level 1 (highest priority)
  • Organic substances that are highly persistent, bioaccumulating and toxic
  • Chemicals to be replaced; or discharges to the marine environment to be eliminated or continued use and/or discharge to be formally justified by end December 2010.
• Level 2
  • Moderately persistent, bioaccumulating and toxic or
  • Highly persistent and bioaccumulating; or
  • Highly persistent and toxic chemicals
  • To be replaced, or discharges to the marine environment eliinated, or continued use and/or discharge to be formally justified by end December 2012.
• Level 3
  • Moderately persistent and bioaccumulating; or
  • Moderately persistent and toxic; or
  • Bioaccumulating and toxic chemicals
  • To be repelaced, or discharges to the marine environment eliminated and/or discharge formally justified by end December 2014.
• Level 4 (lowest priority)
  • Highly persistent organic substances; or
  • Inorganic substances with toxicity <1mg/l
  • Chemicals to be replaced, or discharges to the marine environment eliminated, or continued use and/or discharge to be formally justified by end December 2016.

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.

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.

All chemical use/discharge must be monitored and recorded. Components of oil based mud systems must be listed individually with their appropriate use and discharge (see Reporting).

The Regulations state – “Government will as circumstances dictate conduct check monitoring. It will seek to confirm that routine monitoring is generating accurate returns. The costs of this monitoring will be recovered under the scheme”.

Where an inspector considers that any activity in relation to the use or discharge of an offshore chemical involves a serious and imminent risk of pollution, he may give such directions in relation to that activity (including a direction requiring the cessation of that activity), as he considers necessary to avoid or minimise the risk of pollution in question. 

Chemical Use and Discharge

Reports should be made on all drilling and well chemicals as required by DECC electronically to the EEMS website. Reports are made on the drilling chemicals and fluids spreadsheets available for download on the EEMS website.

As well as being used by DECC to check actual use and discharge of chemicals against the term permit, they will also be used towards compilation of the OSPAR returns, which Contracting Parties are obliged to make.

For certain problematic substances, such as those identified for substitution, the Department may require more frequent reporting. A condition in the permit will make this clear if necessary.

Annual Progress Reports on Substitution Chemicals

Previously progress reports on substitution chemicals have only been requested for production chemicals (PON15D). This reporting requirement is now extended to term permits. A reporting template can be downloaded from the DECC website. Reporting includes summary of chemicals replaced, summary of chemicals still to be replaced and justification for continued use and/or discharge.

Chemical Use and Discharge

Reports need to be made electronically on the EEMS website after each well. 

DECC will use EEMS reports to cross check against permit conditions to ensure compliance. 

Annual Progress Reports on Substitution Chemicals

Reports need to be submitted to DECC Environmental Management Team by email to emt@decc.gsi.gov.uk

Chemical Use and Discharge - EEMS reports to be submitted 28 days after permit expiry date.

Annual progress reports are required to be submitted on or before the 28 February of each calendar year.

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.

Examples of these may include, but not be limited to: identified over use of chemicals or use and/or discharge of chemicals not included on the permit. In addition the form may be used to notify DECC of any other applicable notifications specifically as required by the chemical permit conditions as appropriate.

Variations to chemical permits should be made before exceeding permit limits. Emergency approval of chemical use and/or discharge can be obtained out of normal office hours by contacting the DECC Duty Officer - ask to be connected to the On-Call Response Office (Offshore Environmental Inspectorate). Guidance on emergency approval can be found in the Guidance Notes.

If a variation is not in place before the unpermitted use or discharge occurs, a non-compliance notification form should be submitted. It is an offence not to submit a non-compliance report if required.

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.

The DECC Environmental Inspectorate Enforcement Policy sets out the general principles that Inspectors shall follow in relation to enforcement including prosecution.

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.

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.

Not applicable as permits are issued for a specified well. DECC must be notified of any drilling schedule changes.

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.

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

Applications need to be made to DECC for a variation in the terms and conditions of a permit if there is any increase in the use and discharge of chemicals or changes in the chemicals used. All applications need to be considered by DECC and MS (CEFAS in England and Wales).

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 PON15 application.

All PON15 submissions must be linked to the relevant WONS well file for the drilling consent application (PON4). Where a drilling programme is amended, the need to submit either a permit variation or new permit will depend on whether the change to work programme would be classed as a re-drill (i.e. if a new WONS well file would be generated). If a new WONS well file is needed, a new PON15 will also be required. Otherwise, a variation of the existing PON15 can be submitted.

If submitting a variation, all sections should be completed describing any changes in drilling and chemical usage relating to the new works. Variations will be dealt with by DECC as quickly as possible, but 28 days should be allowed for the assessment of any significant changes.

Note - a variation cannot be submitted once a Term Permit has expired, and a new application must be submitted.

Changes in spud dates - DECC don't want to be prescriptive and are happy to see a drilling window based on risk. Normally DECC will limit the permit duration to one month either side of the drilling window - anything beyond this will need to be justified. Where DECC asks for spud date i.e. Section D of the PON 15 this should be given and the narrative section used to explain where and why there is built in flexibility. For example if the expected spud date is the 15th March and a total drilling period of 60 days then the 15th of March should still be quoted in section D but environmental sensitivities and possible impacts should cover the period February to June.

If drilling occurs within this window, the only notification to DECC will be the new spud date that should be advised through WONS. If drilling is due to start before, or continue after, the window notified in the PON15, the sensitivities addressed in the application must be examined to assess whether there is any significant adverse change. The conclusion should be advised to DECC's Environmental Manager who handled the original PON15 by e-mail, in addition to advising WONS. It should be noted that extra time must be allowed as DECC may need to go back to JNCC in cases where drilling will occur outside the original window.

Reporting of use and discharge must be undertaken on a component basis of the whole mud.

Where a mud is recycled, DECC has agreed that for reporting purposes, the assumption can be made that the recycled mud being used for a base is a mixture of the predominant base oil and barites and can be reported as such. Where additional additives are added to the recycled mud, these will need to be reported separately.