Decommissioning - Pipelines

• Petroleum Act 1998
• 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.

• 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
• Environmental Protection Act 1990 (EPA) Part 2 Duty of Care
• Food and Environment Protection Act 1985 (FEPA)
• Radioactive Substances Act 1993
• Offshore Petroleum Activities (Oil Pollution Prevention and Control) Regulations 2005

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 electronically using PON15E (see Decommissioning Chemicals)

• Guidance Notes for Industry:Decommissioning of Offshore Installations and Pipelines

The Petroleum Act 1998 introduces into UK law the requirement for an abandonment programme to be prepared, costed, and approved by the Secretary of State for all planned submarine pipeline abandonment. The guidance notes specify that an abandonment programme is to be prepared and undertaken using best available techniques to achieve best environmental practice.

• IMO Guidelines and Standards for the Removal of Offshore Installations and Structures on the Continental Shelf in the Exclusive Economic Zone 1989.

These guidelines cover offshore installations and associated wellheads. There are no international guidelines on the decommissioning of pipelines.

• 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)

DECC will ensure that the overall coherence of Natura 2000 is protected and its commitments under the Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 are met during consideration of the Decommissioning Programme.

If there is any likelihood of oil release (reservoir hydrocarbon) during decommissioning of the pipeline, a permit under OPPC will also be required.

Because of the widely different circumstances of each case, it is not possible to predict with any certainty what may be approved in respect of any class of pipeline. Each will be considered on its merits against the Guiding Principles and in the light of a comparative assessment of the alternative options.

Leaving in place

As a general guide the following pipelines (inclusive of any "piggyback" lines that cannot be easily separated) may be candidates for in-situ decommissioning:

• Those which are adequately buried or trenched over a sufficient length and which are not subject to development of spans and likely to remain so;
• Those which were not buried or trenched at installation but which are likely to self bury over a sufficient length within a reasonable time and remain so buried;
• Those where burial or trenching of the exposed sections is undertaken to a sufficient depth and it is likely to be permanent;
• Those which are not trenched or buried but which nevertheless may still be candidates for leaving in place (e.g. trunk lines); and
• Those, which due to structural damage or deterioration or other cause, cannot be recovered safely and efficiently.

Judgments regarding the degree of burial or trenching necessary will be undertaken on a case-by-case basis in the light of individual circumstances. Consultees will need to be satisfied that the pipeline is sufficiently buried below seabed level to avoid obstruction to other uses of the sea. Decisions on the appropriate depth of burial will take account of seabed conditions and other relevant factors but it is expected that burial to a minimum depth of 0.6m above the top of the pipeline will be necessary in most cases.

Pipelines, which it is agreed can be left in place, should be cleaned, sealed and filled with water.

Removal

Small diameter (less than 12 inch) in-field or inter-field pipelines and flexible flowlines, which are neither trenched nor buried, should normally be entirely removed.

Any activity that might be done or will be done in pursuance 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 the ‘relevant site’.

DECC will, with advice 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 and the Habitats Directive. Direction may be further modified or revoked at the discretion of DECC.

‘Relevant site’:

(a) A Special Area of Conservation,

(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 applicable timeframes 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. As pipelines vary significantly in size and length, DECC advice should be sought at an early stage where the decommissioning does not form part of platform decommissioning.

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.

On receipt of a first draft of a Decommissioning Programme, the Offshore Decommissioning Unit will circulate it for consideration by others with an interest within DECC and to other Government Departments.

At the same time DECC will agree with the Operator a timetable for considering the draft programme and submitting it for approval by the Secretary of State. DECC will use its best endeavours to complete the consideration of the first draft within three months.

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. Any further comments will be submitted in writing to the Operator within two months. At the same time, the Operator should release the second draft to the statutory consultees and announce the proposals in the press and on the Internet.

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 in which case details of the consultations can be included in the final version of the programme submitted for the Secretary of State's approval.

At the point at which a second draft of the Decommissioning Programme is submitted to 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 is annexed to the Decommissioning Guidelines. 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.

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

Where it is proposed that a pipeline should be decommissioned in-situ, either wholly or in part, then the Decommissioning Programme should be supported by a suitable study which addresses the degree of past and likely future burial/exposure of the pipeline and any potential effect on the marine environment and other uses of the sea. The study should include the survey history of the line with appropriate data to confirm the status of the line including the extent and depth of burial, trenching, spanning and exposure.

In those cases where it is agreed that a pipeline 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. 

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 Debris monitoring may be required up to 100m either side of a decommissioned pipeline over its whole length.

Following the removal of any debris, independent verification of seabed clearance should be obtained. Following the removal of any debris, independent verification of seabed clearance will be required. The advisability of over-trawling will be considered on a case-by-case basis and will be dependent upon the extent of any cuttings piles and any other relevant circumstances.

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.

Pipelines decommissioned in-situ will be subject to a suitable monitoring programme agreed with DECC in consultation with other Government Departments. Details should be specified in the Decommissioning Programme. The form and duration of the monitoring programme will depend upon the prevailing circumstances and if necessary will be adapted with time. 

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

Inspection reports should be submitted to the DECC Offshore Decommissioning Unit together with proposals for any maintenance or remedial work that may be required.

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

Contravention of the legislation is an offence.

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 will take place in 2010.

The body currently responsible for pipeline decommissioning, the IMO, has not to date issued guidelines on pipeline decommissioning.