Decommissioning - Installations

• Petroleum Act 1998

The Petroleum Act 1998 sets out requirements for undertaking decommissioning of offshore installations and pipelines including preparation and submission of a Decommissioning Programme. The Petroleum Act 1998 has recently been subject to consultation with a number of changes proposed in terms of decommissioning (see Pending Legislation).

• Offshore Petroleum Production and Pipelines (Assessment of Environmental Effects) Regulations 1999
• Offshore Production and Pipelines (Assessment of Environmental Effects) (Amendment) Regulations 2007

These regulations amend the Offshore Petroleum and Pipelines (Assessment of Environmental Effects) Regulations 1999 in accordance with the Public Participation Directive 2003/35/EC.

• Offshore Marine Conservation (Natural Habitats &c) Regulations 2007

These Regulations make provision for implementing the Birds Directive and Habitats Directive in relation to marine areas where the United Kingdom has jurisdiction beyond its territorial sea. The Regulations make provision for the selection, registration and notification of sites in the offshore marine area (European Offshore Marine Sites) and for the management of these sites.  Competent authorities are required to ensure that steps are taken to avoid the disturbance of species and deterioration of habitat in respect of the offshore marine sites and that any significant effects are considered before authorisation of certain plans or projects.  Provisions are also in place for issuing of licences for certain activities and for undertaking monitoring and surveillance of offshore marine sites.

• Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001
• Offshore Petroleum Activities (Conservation of Habitats) (Amendment) Regulations 2007

Regulation 5 of the 2001 Regulations requires the Secretary of State to consider whether an "appropriate assessment" should be undertaken prior to granting a licence under the Petroleum Act 1998 where a European Offshore Marine Site may be affected by a proposed plan or project. The 2007 amendment Regulations extend this requirement to all UK waters.

• OSPAR Recommendation 2006/5 on a management scheme for offshore cuttings piles

This recommendation outlines the approach for the management of cuttings piles offshore. The first stage of the Recommendation is to be carried out within two years of the Recommendation coming into effect with the second stage completed in a predetermined timeframe laid out in stage 1.  This Recommendation entered into force from 30 June 2006.

• EC Directive 2004/35CE on Environmental Liability with regard to the Prevention and Remedying of Environmental Damage

The Directive enforces strict liability for prevention and remediation of environmental damage to biodiversity, water and land from specified activities and remediation of environmental damage for all other activities through fault or negligence. The requirements are not yet implemented in the UK (see Pending Legislation).

• Convention on the Protection of the Marine Environment of the North East Atlantic 1992 (OSPAR Convention)
• OSPAR Decision 98/3

This decision requires that decommissioning will normally remove the whole of the installation but there are some possible exceptions for large structures.

• Environmental Protection Act 1990 (EPA) Part 2 Duty of Care
• Food and Environment Protection Act 1985 (FEPA)
• Radioactive Substances Act 1993

The disposal of materials onshore/offshore from decommissioning of installations will have to be in accordance with EPA Part II, which imposes a Duty of Care for waste management upon the waste producer. Offshore disposal of materials must also be in accordance with the Food and Environment Protection Act 1985, the Radioactive Substances Act, 1993 and the Oil Pollution Prevention and Control Regulations 2005 (OPPC).

• Offshore Chemicals Regulations 2002

A permit will be required under these Regulations for discharge of chemicals during decommissioning. Permit application for chemical discharge will be required to be made using a PON15E (see Decommissioning Chemicals)

• Offshore Petroleum Activities (Oil Pollution Prevention and Control) Regulations 2005

These Regulations require a permit to discharge or re-inject any material contaminated with reservoir hydrocarbons

• Guidance Notes for Industry: Decommissioning of Offshore Installations and Pipelines
• IMO Guidelines and Standards for the Removal of Offshore Installations and Structures on the Continental Shelf in the Exclusive Economic Zone 1989
• Guidance Notes on the Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001

These Guidance Notes are in the process of being updated to include amendments made by the 2007 Regulations.

Approval of the Decommissioning Programme from the regulatory authority.

Section 29 of the Petroleum Act 1998 enables the Secretary of State to serve notices requiring the recipient to submit a costed decommissioning programme for his approval at such future time as he may direct. The programme (referred to in the 1998 Act as an “abandonment programme”) should contain the measures proposed to be taken in connection with the decommissioning of a pipeline. Equivalent Notices previously served under section 1 of the 1987 Act will continue to be valid.

A Chemical Permit under the Offshore Chemical Regulations 2002 is also required for the use or discharge of any chemical during decommissioning (see Decommissioning Chemicals)

The existing OPPC field permit for the platform may be used to discharge/re-inject materials containing oil, if this permit has ended that a term permit will be required the Oil Pollution Prevention and Control Regulations (OPPC).

Subsequent to the submission of draft copies of the Decommissioning Programme and the associated periods of consultation, four copies of the final draft copy of the Decommissioning Programme should be sent to DECC.

If applying for a derogation then DECC will advise on the subsequent steps needed for consultation with OSPAR parties.

The Cuttings Pile Management Regime as set out by OSPAR Recommendation 2006/05 is divided into two stages. Stage 1 involves initial screening of all cuttings piles. This should be completed by June 2008. 

The Recommendation outlines the following for Stage 1:

• Contracting Parties should require that all cuttings piles are screened; using existing information and relevant research, to identify those that require further investigation.
• Where water-based drilling fluids were used and no other discharges have contaminated the cuttings pile, no further investigation is necessary.
• Where organic-phase drilling fluids (OPF) were used and discharged or other discharges have contaminated the cuttings pile the following process should be completed:
• Contracting Parties should require that the rate of oil loss and the persistence over the area of seabed contaminated are assessed using existing evidence where this is sufficient to carry out this process, and undertaking the relevant research where more information is needed;
• The rate of oil loss should be assessed on the basis of the quantity of oil lost from the cuttings pile to the water column over time. The unit used should be tonnes per year (tonnes/yr);
• The persistence should be assessed on the basis of the area of the seabed where the concentration of oil remains above 50mg/kg and the duration that this contamination level remains. The unit used should be square kilometre years (km2yrs).
• The results of this process should be compared against the following thresholds:
• Rate of oil loss to water column: 10 tonnes/yr
• Persistence over the area of seabed contaminated: 500 km2year (note: a persistence of 500 km2yr could mean an area of 1km2 is contaminated for 500 years or an area of 500 km2 is contaminated for 1 year).
• Where both the rate and persistence are BELOW the thresholds and no other discharges have contaminated the cuttings pile, no further action is necessary and the cuttings pile may be left in situ to degrade naturally.
• Where either the rate of oil loss or the persistence are ABOVE the thresholds, stage 2 should be initiated at a time to be determined by the Contracting Party,  taking into account the rate of oil loss, the persistence over the area of seabed contaminated and the timing of the decommissioning of the associated installation.

Stage 2 involves a BAT and/or BEP assessment and should, where applicable, be carried out in the timeframe determined in Stage 1.

Under the terms of Decision 98/3, which entered into force on 9 February 1999, there is a prohibition on the dumping and leaving wholly or partly in place of offshore installations. The topsides of all installations must be returned to shore. There is a presumption in favour of land disposal and all installations with a jacket weight less than 10,000 tonnes must be completely removed to shore.

The Decision recognises that there may be difficulty in removing the 'footings' of large steel jackets weighing more than 10,000 tonnes and in removing concrete installations. As a result, there are derogations possibly available from the main rule for these categories of installations. It has been agreed that these cases should be considered individually to see whether it might be appropriate to leave the footings of large steel installations or concrete structures in place. Nevertheless, there is a presumption that they will all be removed entirely and exceptions to that rule will only be granted if the assessment and consultation procedure which forms part of the OSPAR Decision shows that there are significant reasons why an alternative disposal option is preferable to reuse or recycling or final disposal on land. Any installations that were positioned after 9 February 1999 must be completely removed.

Any activity that might be done or will be done in pursuant of a licence to exploit oil and gas, will have to be carried out in a way that does not produce a significant effect on ‘relevant site’.

DECC will, with assistance from the JNCC, give direction to the operator to carry out activities in a manner to avoid, reverse, reduce or eliminate an effect, or a likely effect, on any relevant site or priority species, or any habitat or species that the JNCC consider should be protected under the Wild Birds Directive or Habitats Directive. Direction may be further modified or revoked at the discretion of DECC.

‘Relevant site’:

(a) A Special Area of Conservation (SAC),

(b) A site of Community importance which has been placed on the list referred to in the third sub-paragraph of Article 4(2) of the Habitats Directive,

(c) A site hosting a priority natural habitat type or priority species in respect of which consultation has been initiated under Article 5(1) of the Habitats Directive, during the consultation period or pending a decision of the Council under Article 5(3),

(d) An area classified pursuant to Article 4(1) or (2) of the Wild Birds Directive,

(e) A site included in the list of sites which has been transmitted to the Commission by the United Kingdom pursuant to Article 4 of the Habitats Directive, or

(f) A site as to which the Secretary of State, having consulted the JNCC is of the opinion that it is one which would be likely to be included in the list of sites transmitted to the Commission by the United Kingdom pursuant to Article 4 of the Habitats Directive.

The JNCC’s current map of special areas of conservation and Special Protection Areas under the Wild Birds Directive may be found at Protected Sites, Habitats and Species.

Controls on activities will be presented by DECC in the form of direction, with advice from the JNCC, in writing to an Operator. A request to review a direction may be sought within one year of issue. If DECC considers after review that the direction is inappropriate, it will be revoked. Any decision made will be issued in writing to the operator.

The Public Participation Directive (PPD) requires a number of aspects of public notification and consultation:

• An outline of main alternatives (if any) should be included in permit applications;
• The public should be notified and made aware of any decisions making available relevant consents and permits with the reasons and considerations on which decisions have been based;
• Public notification at the earliest possible time where the information can be provided on the nature of possible decisions; and
• Making available within timeframe's the necessary reports, advice issued to the regulator in accordance with legislation when applications were made and information relevant to a decision which only became available after advertisement of an application.

Discussions should commence well ahead of forecast cessation of operations. In the case of a large field with multi-facilities this may be three years or more in advance.

At a mutually agreed time, following preliminary discussions, the Operator should submit to DECC 25 copies of a first draft of a Decommissioning Programme. Copies of the draft programme will be distributed by DECC to other Government Departments and Agencies. Submission in CD ROM form is the preferred method, although one paper copy will also be required. Four paper copies will be required when the holders of section 29 notices are directed formally to submit the Decommissioning Programme. The Offshore Decommissioning Unit will act as a one-stop-shop, co-ordinate all comments on the draft and submit a written response to the Operator. Further meetings with Government Departments may be necessary at this stage to discuss whether additional information and amendments to the draft programme may be necessary. The Operator should then submit a second draft for consideration.

The second draft will again be considered in consultation with other Government Departments as appropriate. Following the completion of consultations a third and final draft of the programme should be submitted to DECC. This will include the outcome of the consultation process. It is expected that in the majority of cases a third draft will not be necessary.

If a derogation is being sought the the next stage would be, acting on DECC advice, to send copies of the relevant section of the decommissioning plan to the OSPAR secretariat for distribution to contracting parties.

At the point at which a second draft of the Decommissioning Programme is submitted to the DECC, the Operator should commence statutory consultations as required under section 29(3) of the Petroleum Act 1998. These consultations will be with the representatives of those parties who may be affected by the decommissioning proposals such as the fishing industry. Details of the statutory consultees will be specified in a notice issued under the Act. A list of the parties normally included is at Annex 3. The Statutory Consultees should be given 30 days in which to comment.

The Operator will also be asked to announce its proposals by placing a public notice in appropriate national and local newspapers and journals and to place details on the Internet. This notice should indicate where copies of the draft Decommissioning Programme can be viewed and to whom representations should be submitted. Hard copies of the draft programme should be made available at the Operator's offices and a copy can be placed on the Internet.

The results of consultations should be reported in the Decommissioning Programme when it is submitted for approval. This can be best achieved by appending to the programme the correspondence with interested parties and by indicating the extent to which their views have been taken into account.

In the more complex cases, which require assessment in accordance with the procedures set out in OSPAR Decision 98/3 (i.e. where whole or part of the installation is to left in place), Operators will need to develop and manage a wide-ranging public consultation process. The form and timing of this process should be discussed with DECC. Such a process may take up to 12 months, and should commence at an early stage. If this in turn leads to a decision to seek a derogation under the OSPAR Decision it will be necessary for DECC to consult the other OSPAR Contracting Parties. Annex 3 to the Decision sets out the required consultation process, which may take up to eight months to complete.

A Decommissioning Programme will typically contain the following sections:

• Introduction · Executive Summary
• Background Information
• Description of Items to be Decommissioned
• Inventory of Materials
• Removal and Disposal Options
• Selected Removal and Disposal Option
• Drill Cuttings
• Environmental Impact Assessment
• Pipelines
• Interested Party Consultations
• Costs
• Schedule
• Licences Associated with the Disposal Option
• Project Management and Verification
• Debris Clearance
• Pre- and Post-Decommissioning Monitoring and Maintenance
• Supporting Studies

The Environment Agency (in England and Wales) and the Scottish Environment Protection Agency (in Scotland) are responsible for administering and enforcing the waste management controls. 

Anyone who deposits, recovers or disposes of waste must do so in compliance with the conditions of a waste management licence, or within the terms of an exemption from licensing, and in a way, which does not cause pollution of the environment or harm to human health. Any Operator planning to carry out any decommissioning or an associated activity involving waste should contact the relevant Agency. The Agencies are finalising separate guidance for industry on the treating, keeping and disposing of wastes at the decommissioning stage. This guidance will be available from the Environment Agency and the Scottish Environment Protection Agency. 

Where it is agreed that a concrete installation, or the 'footings' of a steel installation, should remain in place the Operator must ensure that the position (horizontal datum to be stated), surveyed depth and dimensions of the remains are forwarded immediately to the Hydrographic Office, for inclusion on Admiralty charts. 

It is the Operator’s responsibility to install and maintain navigational aids for any remains of concrete installations that project above the surface of the sea. The nature of the navigational aids to be employed should be discussed with DECC and with interested parties such as the DEFRA, fishermen and other mariners. It is the Operator's responsibility to ensure the maintenance of any such navigational aids. Details of the action to be taken to advise mariners and mark any remains should be included in the Decommissioning Programme; the Hydrographic Office should be kept informed.

Upon completion of decommissioning operations, appropriate surveys should be undertaken to identify and recover any debris located on the seabed, which has arisen from the decommissioning operation or from past development and production activity. The area to be covered is likely to vary from case to case but the minimum required will be a radius of 500m around the location of the installation or any remains.

Following the removal of any debris, independent verification of seabed clearance should be obtained. The usual method of achieving this is to engage a fishing vessel to carry out a trawl of the area and to issue a certificate of seabed clearance. Any debris removal activities and any subsequent trawl of the area will need to take account of the presence of drill cuttings.

In addition to debris surveys, a post-decommissioning environmental seabed sampling survey should be undertaken to monitor levels of hydrocarbons, heavy metals and other contaminants in sediments and biota.

A survey strategy should be developed in consultation with DECC who will in turn take advice from other Government Departments and Agencies with an interest such as the Fishery Departments. Details, including the location of sampling points, should be included in the Decommissioning Programme.

It is likely that a second survey will need to be carried out at some time after the post-decommissioning survey. Any further surveys will depend on the results of these two surveys.

If it is agreed that a concrete installation or the 'footings' of a steel installation should be left in place the condition of the remains will have to be monitored at appropriate intervals by the owners. A suitable monitoring regime should be agreed with the DECC who will consult with other Government Departments and Agencies with an interest. Details of the monitoring regime should be specified in the Decommissioning Programme.

For any remaining structures certain aspects of the IMO Guidelines and Standards will still be relevant:

• Any disused installation or structure, or part thereof, which projects above the surface of the sea, should be adequately maintained
• An unobstructed water column of at least 55 metres must be provided above the remains of any partially removed installation to ensure safety of navigation.
• The position, surveyed depth and dimensions of any installation not entirely removed should be indicated on nautical charts and any remains, where necessary, properly marked with aids to navigation.
• The person responsible for maintaining any aids to navigation and for monitoring the condition of any remaining material should be identified.
• The liability for meeting any claims for damages, which may arise in the future, should be clear.

The results of all surveys and a copy of a seabed clearance certificate should be submitted to DECC's Offshore Decommissioning Unit.

The results of the survey should be submitted to DECC's Offshore Decommissioning Unit.

All reporting requirements associated with the UK waste management regime are to be followed.

There may be a requirement to conduct further environmental seabed surveys subsequent to the decommissioning of the installation.

Where an installation has been left in situ there is a requirement to undertake a monitoring programme.

A consultation has recently been undertaken to seek views on proposed changes to the legislative framework for decommissioning of offshore energy installations including proposed amendments to the Petroleum Act 1998. The proposed changes include:

• Safeguarding decommissioning funds (ensuring funds are set aside as financial security);
• Widening the category of persons on whom obligations can be placed (e.g. on parent companies);
• Providing for earlier issue of notices and earlier provision of decommissioning security;
• Ensuring the Secretary of State has access to appropriate information;
• Encouraging potential for cross-industry co-operation and collaboration at the decommissioning stage (e.g. between oil industry and marine renewable industry).

The Environmental Liability Directive was adopted in 2004 and was required to be implemented by 30 April 2007.  The Directive enforces strict liability for prevention and remediation of environmental damage to ‘biodiversity’, water and land from specified activities and remediation of environmental damage for all other activities through fault or negligence. 

Environmental damage defined in the context of the proposed Directive includes damage to biodiversity protected at Community and national levels. Calls for action may be taken by any qualified “entity” as many environmental assets (in particular biodiversity) are not proprietary. The proposed Directive provides for damage to be remedied or costs for restoration to be recovered and the “polluter pays principle” to be applied. Valuation of environmental assets remains controversial and therefore the proposed Directive takes a valuation approach based on restoration/remediation costs. Restoration is aimed at putting in place equivalent alternatives to the damaged resources rather than replacing them. Preference is given to the least cost option among alternatives that deliver similar environmental benefits (based on US Oil Pollution Act 1990 approach). The proposed Directive does allow for joint or several liabilities.

DEFRA undertook a consultation on draft Regulations and guidance on UK implementation of the Environmental Liability Directive 2004/35/EC. Further information on implementation of the Directive can be found on the DEFRA website.

Scottish Government has launched a 2nd Consultation on implementation of the Environmental Liability Directive. Closing Date for Responses 8 August 2008.

The next meeting of OSPAR to review the 1998 Sintra Agreement on Decommissioning is not expected until 2010.