Chemicals - Decommissioning

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

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.

• Petroleum Act 1998

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.

• 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)

• 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 as amended by OSPAR Recommendation 2008/1
• OSPAR Recommendation 2000/5 on a Harmonised Offshore Chemical Notification Format (HOCNF) as amended by OSPAR Recommendation 2005/3 and 2008/2
• Food and Environment Protection Act (FEPA), 1985
• Deposits in the Sea (Exemptions) Order, 1985
• (Previous Offshore Chemical Notification Scheme (OCNS))
• Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001
• 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).

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

These notes should be read in conjunction with the main guidance notes as they provide additional information on frequently asked questions.

Application must be made electronically using a form PON15E (Word document). It is intended that a web-based system (DECC portal) will eventually be the application route. In the meantime, applications should be emailed.

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).

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.

It is likely 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.

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.

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

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.

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 for decommissioning chemicals will normally be issued for a specified period and are "Term Permits".

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.

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.

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 2008. 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

OSPAR

OSPAR has developed guidance for confidentiality when introducing the Harmonised Mandatory Control Scheme relating to chemical use.