Chemicals - Production

• Pollution Prevention and Control Act 1999
• Offshore Chemical Regulations 2002

A chemical permit is required for the use/discharge of any production chemicals used offshore.

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.

• EC Regulation 1907/2006 (REACH)

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 Pending Legislation

• Guidance Notes on the Offshore Chemicals Regulations 2002
• Additional Guidance for the Offshore Chemicals Regulations 2002

• OSPAR Recommendation 2008/1 Amending OSPAR Recommendation 2000/4 on a Harmonised Pre-Screening Scheme for Offshore Chemicals.
• OSPAR Recommendation 2008/2 Amending OSPAR Recommendation 2000/5 on a Harmonised Offshore Chemical Notification Format (HOCNF).
• 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 Recommendation 2000/4 on a harmonised pre-screening scheme for offshore chemicals
• OSPAR Recommendation 2000/5 on a Harmonised Offshore Chemical Notification Format (HOCNF) as amended by OSPAR Recommendation 2005/3
• Food and Environment Protection Act 1985 (FEPA)
• Deposits in the Sea (Exemptions) Order, 1985
• Previous Offshore Chemical Notification Scheme (OCNS)
• Aarhus Convention on Access to Information, Public Participation in Decision Making and Access to Justice in Environmental Matters 1998
• EC Directive 2003/35/EC providing for public participation in respect of the drawing up of certain plans and programmes relating to the environment and amending with regard to public participation and access to justice Council Directives 85/337/EEC and 96/61/EC (Public Participation Directive)

The Public Participation Directive implements the second part of the Aarhus Convention. The Directive requires an increase in the already high level of public participation in the process by which regulators consider environmental implications for offshore activities (see Snippets).

• 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.

• Chemicals (Hazard Information and Packaging for Supply Regulations 2002 (CHIP) (as amended)

CHIP implements three European Community (EC) Directives:

• the Dangerous Substances Directive (DSD);
• the Dangerous Preparations Directive (DPD); and
• the Safety Data Sheets Directive (SDSD).

The purpose of these is to provide an EU-wide system to make sure that people are properly informed about the danger of chemicals both at work and in the home. They also improve the Single Market by requiring all suppliers of dangerous chemicals to provide the same standard of information to their customers. Revisions to CHIP are planned (see pending legislation).

A chemical permit under the Offshore Chemical Regulations 2002 (OCR 2002) is required for all production chemicals. All operational chemicals must be included in this permit, including:

• Chemicals used in the production of hydrocarbons;
• Water injection chemicals;
• Squeeze chemicals;
• Corrosion inhibitors and biocides;
• Chemicals used in semi-closed systems where there may be some discharge to sea e.g. hydraulic fluids in subsea control systems and corrosion inhibitors used within fire fighting drench systems, where applicable;
• Chemicals generated in-situ e.g. hypochlorite;
• Rig and turbine washes.

Chemicals used/discharged from workovers on platforms may also be included in the platform permit (PON15D). Alternatively a PON15F may be used (see Workovers).

Drilling chemicals either for drilling from the platform or chemicals introduced by a tieback from a MODU should be covered in the PON15B (see Drilling Chemicals).

A number of chemicals are exempt from OCR 2002 (see Performance Standards).  Guidance on OCR 2002 is available from DECC website (see Guidance Notes)

An application for the grant of a permit from DECC under regulation 4 is made in writing or by an electronic means of communication acceptable to the Secretary of State (PON15D). It shall contain -

(a) 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;

(b) 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;

(c) A description of the measures planned to monitor the use or discharge of the offshore chemical; and

(d) 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.

Applications should be made using a PON15D application.

PON15 applications must be submitted electronically to DECC. Any variations must be submitted in the same way. A web based system (DECC Portal) is now in place for the PON15D submissions.

Operators will need to be registered with DECC for access to the Portal. To set up a UK Oil Portal Account, contact:

Cara Noble (PON15d Administrator)
Cara.noble@berr.gsi.gov.uk - 01224 254054

A period of at least 3 months should be allowed for submission and approval of a first PON15D as a period of public consultation of at least 28 days is included in the approval process. There will be a requirement for public notification for the initial platform permit, where a variation has been refused or where DECC directs that publication should occur at the time of a permit review. In all other cases, there will be no public consultation requirement. Publication of the notice will be in the same newspapers that would be used for Environmental Statement notification. The notice will say from where a copy of the application may be obtained (i.e. from the applicant) and an address from where a copy of the application may be obtained (i.e. the address of the applicant). The period of public notice will be at least 28 days.

Applications for variations to permits do not require a period of public notice, but a lead time of at least 28 days should be allowed.

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 could be demonstrated.

Routine monitoring of process streams and of the area around installations may be requested to confirm impact hypotheses and to check that the general health of the marine environment near platforms remains acceptably high. The operator will carry such monitoring and bear the cost.

The Regulator will undertake check monitoring. It will seek to confirm that routine monitoring is generating accurate returns. The costs of this monitoring will be recovered under the general fees charged for the scheme. Inspectors appointed under the Regulations may board any offshore installation at any reasonable time, or if significant pollution is suspected, at any time.

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. 

One of the conditions of a permit is reporting. Reports need to cover:-

• The name and actual quantity of each chemical used; and
• The volumes of each chemical discharged into the marine environment.

As well as being used to check actual use and discharge of chemicals against that forecast, the information will be used to compile the OSPAR returns, which DECC is obliged to make and to look at the cumulative burden in any particular area.

Annual reports are also required to DECC on progress made to replace and/or phase out chemicals included on the OSPAR List of Chemicals for Priority Action or have been identified as Candidates for Substitution.

EEMS reports to be submitted 28 days after the end of each quarter reporting use/discharge of chemicals in that quarter.

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.

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 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 Additional Guidance for the Offshore Chemicals Regulations 2002.

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.

Permits will be valid for the field life but must be reviewed and renewed every 3 years. An application for renewal of a permit must be made in writing or by means of electronic communication before, but no more than three months before, the expiry of the permit in question.

Variations are submitted electronically on DECC UK Oil Portal from where they are reviewed and electronically approved.

Applications need to be made to DECC for a variation in the terms and conditions of a permit. This would involve any change in the use and discharge of chemicals. All applications need to be considered by DECC and FRS (CEFAS when in England and Wales).

Where DECC determines that a variation applied for by an operator would not be a significant change, he may grant the application and vary the terms and conditions of the permit accordingly, provided he has consulted the appropriate consultation bodies.

Where DECC determines that the change would be a significant change they will refuse the application and serve a notice in writing on the applicant.

Update - change to PON15 made after the application but before approval has been given.

Variation - change to PON15 made after approval has been given.

Application for a variation or update should be made by clearly amending the previously submitted PON15D via DECC portal.

Defra, with the Department for Business, Enterprise and Regulatory Reform (DECC) and the Devolved Administrations for Scotland, Wales and Northern Ireland is consulting on the draft Regulations and administrative arrangements for the enforcement in the UK of Regulation (EC) No 1907/2006 of the European Parliament and of the Council concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals commonly referred to as REACH. Consultation closes on 25 August 2008. More information available on the DEFRA website.

For more summary information on REACH see REACH below.

A UK National Plan for phase out of chemicals to meet the requirements of the OSPAR Recommendation is being developed. This will involve continuation of the PON15D permit review process and annual reporting to DECC, extending the scheme to term permits and development of a prioritised National List of Candidates for Substitution. Prioritisation implementation dates are currently being finalised.

The UK National Plan has four key elements:

• Prioritisation based on the perceived difficulty of phase out;
• Prioritisation based on the ecotoxicological properties of the chemical;
• Wherever possible, securing the replacement of candidates for substitution in preference to minimising operational discharges to the marine environment.
• Requiring industry to justify the continued discharge of candidates for substitution, prior to proposed interim phase-out targets or deadlines, to confirm the efforts made to phase out the use and/or discharge of the chemical and to demonstration that phase out is not currently considered to be feasible for technical or safety reasons.

Draft prioritised targets for the UK are:

• Level 1 (highest priority)
  • Highly persistent (biodegradation <20%), bioaccumulating (LogPow >3 and/or molecular weight measure) and toxic (LC50/EC50 <10mg/l) chemicals to be replaced; or discharges to the marine environment to be eliminated or continued use and/or discharge to be formally justified by 2010 (TBC).
• Level 2
  • Moderately persistent (biodegradation >20% but <60%), 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 2012 (TBC).
• Level 3
  • Moderately persistent and bioaccumulating; or
  • Moderately persistent and toxic; or
  • Bioaccumulating and toxic chemicals to be rpelaced, or discharges to the marine environment eliminated and/or discharge formally justified by 2014 (TBC).
• Level 4 (lowest priority)
  • Highly persistent; or
  • Highly toxic (LC50/EC50 <1mg/l) chemicals to be replaced, or discharges to the marine environment eliminated, or continued use and/or discharge to be formally justified by 2016 (TBC).

Authorities should not issue new authorisations for the discharge in the OSPAR maritime area of offshore chemicals that are or which contain added substances, listed in the OSPAR 2004 List of Chemicals for Priority Action unless those offshore chemicals have already been registered with CEFAS for offshore use prior to this recommendation effect (1 July 2005).

By 1 January 2010, Contracting Parties should have phased out the discharge in the OSPAR maritime area of these chemicals.

EC Regulation 1907/2006 (REACH)

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.

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 REACH Regulation gives greater responsibility to industry to manage the risks from chemicals and to provide safety information on the substances. Manufacturers and importers will be required to gather information on the properties of their chemical substances, which will allow their safe handling, and to register the information in a central database run by the European Chemicals Agency (ECHA) in Helsinki. The Agency will act as the central point in the REACH system: it will manage the databases necessary to operate the system, co-ordinate the in-depth evaluation of suspicious chemicals and run a public database in which consumers and professionals can find hazard information.

The Regulation also calls for the progressive substitution of the most dangerous chemicals when suitable alternatives have been identified.

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.

The European Chemicals Agency (ECHA) was officially opened on 3 June. ECHA is responsible for managing the implementation of the REACH requirements in relation to the registration, evaluation, authorisation and restriction processes of chemical substances. ECHA formally began its activities a year ago and its work has been devoted to intensive preparations, including staff recruitment and establishing support structures and procedures. On 1 June 2008 two key processes of REACH entered into operation: registration of chemicals and pre-registration of the some 30,000 chemicals currently in use (e.g. acids, metals, solvents, surfactants). Manufacturers or importers of chemicals have to pre-register them by 1 December 2008 if they want to continue manufacturing or importing them without interruption. It has been estimated that over 180,000 pre-registration files will be submitted. Read More

Public Participation Directive

The Public Participation Directive will be applicable to the Offshore Chemical Regulations 2002, however DECC do not see it having any material effect at this stage, as there is already a requirement for public consultation.

The PPD will also affect the trigger levels requiring a mandatory EIA (see Environmental Impact Assessment).