Chemicals - Pipeline

• Petroleum Act 1998

This Act repeals the Petroleum and Submarine Pipelines Act, 1975 under which Pipeline Works Authorisations (PWA) and Discharges Consents were previously issued by consolidating the requirements with other oil and gas legislation.

• Offshore Chemicals Regulations 2002

These Regulations apply to any pipeline chemical discharge. The DISCON1 has been superseded by the PON15C.

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

• 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 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).

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

The Petroleum Act, 1998 requires an application to be made to the Secretary of State for a Pipelines Works Authorisation to construct and use a submarine pipeline on the United Kingdom Continental Shelf.

Although some information on chemicals may still included in the PWA application, use and discharge of chemicals is now covered by the Offshore Chemicals Regulations 2002 and a separate permit application is required.

Application must be made using a PON15C. 

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:

Elaine McLaughlin (PON 15b,c, e, f Administrator)
ElaineMcLaughlin@berr.gsi.gov.uk - 01224 254102

At least 28 days prior to operation.

Consultations with FRS or CEFAS will be made by DECC.

Term permit for the discharge of chemicals from pipelines 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 from the pipeline should not exceed the amounts stated within the permit;
• 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.

Chemical Use and Discharge

Reports should be made on pipeline hydro test and commissioning chemicals as required using the EEMS PermPipe form from the EEMS website.

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 being 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

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

Annual Progress Reports - the first annual report for pipeline chemicals (PON15C) will be in 2009, for chemicals used and discharged in 2008.

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.

Not applicable as permits are issued for a specified permit. DECC must be notified of any pipeline installation/commissioning 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 prior to the due date.

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 PON15C.

A variation or update cannot be submitted once a Term Permit has expired, and a new application must be submitted.

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

Pipeline discharges cannot be calculated using the CHARM calculator, however CEFAS has developed a methodology for the calculation of PEC: PNEC for pipeline hydro test chemicals and is described in the DECC Additional Guidance. This is not a definitive method and DECC will consider alternative risk assessment methods/models when presented with the appropriate scientific justification.

UK/Norway Median Line

Where a pipeline crosses the UK/Norway boundary, the provisions of the Framework Agreement between UK and Norway, which was signed in April 2005, will apply. A summary of the main points can be found on DECC website, including a link to the full text of the agreement.