Well Abandonment and Suspension

Legislation

Key Legislation

Part III of the Energy Act 2008 amends Part 5 of the Petroleum Act 1998 to enable proper provisions to be made for the abandonment of wells including financial security provisions. Amendments are also made to Part 1 of the Petroleum Act giving the Secretary of State powers to require a licensee to plug and abandon a well which has been suspended for at least one month.

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

These Regulations came into force on the 20th August 2005. These Regulations introduce a permitting system for oil discharges and replace the requirement for an exemption under POPA.

The amendment regulations came into force on 30 March 2011 and clarify the status of accidental releases and the reporting procedure for PON1s. See Pending Legislation for a description of key changes to the legislation.

The amendment regulations replace the informal PON5 Part 2 process for well suspension and abandonment with formal permitting processes under OCR and OPPC.

The Marine and Coastal Access Act (MCAA) and Marine (Scotland) Act will replace and merge the requirements of FEPA Part II (deposits to the sea) and the Coast Protection Act (navigation). FEPA Part II remains in force in Scottish territorial waters to cover reserved activities.

Many offshore sector activities are exempt from the acts through either the Petroleum Act 1998 or Energy Act 2008, however certain activities including deposits to the seabed or use of explosives for abandonment operations are covered.

If there are intentions to use explosives in abandonment operations, discussions must be held with DECC and JNCC to ensure that consideration is given to any habitats or species as required under the Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 (as amended).

Offshore Installation and Wells (Design and Construction etc) Regulations 1996

Guidance

Consent Needed and How to Obtain It

Consent Needed	Chemicals There may be chemical use/discharge requirements during well abandonment. These may be applied for by PON5 or covered within the drilling chemicals permit (PON15B) for the operation or by an installation-decommissioning permit (PON15D or PON15E). However, in all cases, summary information must also be provided in the PON5 (see below). Where application is by PON5 only, no further PON15 application will be required unless DECC wishes to discuss the use/discharge of any particular chemical. Oily Discharges Any deliberate release of oil (reservoir hydrocarbons only) planned during a well suspension or abandonment must be subject to an OPPC permit. Again application will be via the PON5 (see below) Deposits to Seabed A licence under the Marine and Coastal Access Act or Marine (Scotland) Act will be required. Explosives A licence under the Marine and Coastal Access Act or Marine (Scotland) Act will be required. If there are intentions to use explosives in abandonment operations, discussions must be held with DECC and JNCC to ensure that consideration is given to any habitats or species protected under the Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001. See JNCC Guidance on Use of Explosives. Information contained in the Habitats Regulatory Assessment and European Protected Species licencing pages may also be of use. Consent to Locate See Navigational Interference
How to Apply	PON5 Application (for PON15 applications see Drilling Chemicals) Part 2 of the PON5 must be completed for the proposed suspension or abandonment of a well, this should detail (amongst others): Potential chemical use/discharge. No further permit application (PON15) will be required unless DECC wishes to discuss the use and/or discharge of a particular chemical. Potential incidental oil releases. This will trigger the issue of an OPPC Permit. Potential temporary or permanent seabed deposits likely to be associated with routine well suspension or abandonment operations. No further action will be required unless DECC determines that there could be significant adverse effect and therefore a FEPA licence may be required. If additional permits are required, DECC will contact the operator based on information provided in the PON5. This is expected to be unlikely except in exceptional circumstances. MSAA Licence The application process under the MCAA and MSA is not yet known. DECC guidance has been drafted and is awaiting issue.
Who to Apply to	PON5 Application PON5s 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 the DECC OED Environmental Management Team at ukop@decc.gsi.gov.uk MSAA Licence The application process under the MCAA and MSA is not yet known. DECC guidance has been drafted and is awaiting issue. Any queries in the meantime should be direct to DECC Oil & Gas Environmental Management Team by email to emt@decc.gsi.gov.uk
When to Apply	PON5 ApplicationAs soon as the need for well suspension or abandonment is known. Permit must be in place before well abandonment. MSAA Licence The application process under the MCAA and MSA is not yet known. DECC guidance has been drafted and is awaiting issue. If explosive use is planned, discussions should be held with DECC/JNCC as early as possible.

Performance Standards

General

Well must be abandoned in such a way to ensure that as far as is reasonably practicable, there can be no unplanned escape of fluids from the well.

Use of Explosives

JNCC Guidance on Use of Explosives includes a series of mitigation measures to be considered and agreed:

Visual Monitoring by Marine Mammal Observers
Passive Acoustic Monitoring (PAM)
Use of PAM as mitigation
Pre-detonation search for marine mammals
Delay of 30 minutes if a marine mammal is detected within the Mitigation Zone
Sequencing of the explosive charges
Acoustic Deterrent Devices (ADDs)
Post-detonation search
Communication

Sampling/Monitoring Requirements

Monitoring Post Abandonment

None known.

Reporting Requirements

What to Report

Chemicals

No reporting required under the PON5. Separate chemical reporting will be required if chemical use/discharge for the abandonment operation has been included in a separate PON15 chemical permit (see Drilling Chemicals or Decommissioning Chemicals).

Oily Discharges

Any incidental release of oil (not covered by the OPPC permit) must be reported to DECC via the PON1.

Explosives

Reports detailing the marine mammal mitigation activities (MMO report) should be sent to the JNCC, or appropriate nature conservation agency, after the explosives operation has been completed. Ideally the MMO report should be sent to the JNCC
by e-mail to seismic@jncc.gov.uk.

Additional

Depending on other DECC requirements (e.g. FEPA licences), there may be additional reporting requirements that will be detailed in the permit.

Non Compliance

Chemical Permit	If a chemical permit is in place,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 identified discharge of un-permitted 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.
Oil or Chemical Spill	Any spill of oil or chemicals must be reported to DECC by a PON1.
OPPC Permit	Non-compliance would include discharge of well fluids containing reservoir hydrocarbons without a valid permit being in place or at an oil in water concentration greater than 40 mg/l. Any non-compliance must be reported to DECC using the OPPC non-compliance notification form, which can be downloaded from DECC website along with appropriate Guidance Notes. Offences under the OPPC Regulations, include (but are not limited to) the following: discharge of oil to sea without a valid and appropriate permit being in place; failure to report an unpermitted discharge of oil; failure to comply with a prohibition or enforcement notice; failure to supply any information required under the terms of the permit; or wilfully obstructing a DECC inspector. A person found guilty of an offence will on summary conviction be liable to a fine not exceeding the statutory maximum.
Offshore Inspection	The DECC Environmental Inspectorate Enforcement Policy sets out the general principles that Inspectors shall follow in relation to enforcement including prosecution.

Renewal and Variation

MSAA Licence Renewal and Variation

Licences will be valid for a maximum period of one year, but operators will be able to apply to renew licences that cover a range of activities.

Pending Legislation

MSAA Licence

DECC guidance has been drafted and is awaiting issue.

Offshore Chemicals (Amendment) Regulations 2011

New Amendment Regulations came into force on 30 March 2011. Revised DECC Guidance is available on the DECC Website; this is not yet reviewed/incorporated into the Oil & Gas UK Register but will be for the next quarterly update. In the meantime, the key changes to the regulations are

Clearer distinction and definition between intentional (operational) discharges and accidental releases. This will for example, clarify treatment of leaks, particularly in relation to "open" hydraulic fluid systems and the use of leak detection and leak sealant chemicals
Transfers intentional disposal of unwanted chemicals from FEPA Part II regime to OCR regime, in anticipation of implementation of licensing provisions of the Marine and Coastal Access Act
Replaces the informal PON5 Part 2 process for well suspension and abandonment with formal permitting processes under OCR and OPPC.
A new Regulation 3A is included which prohibits any person from releasing an offshore chemical or allowing such a release to coninute and to make the contravention of this provision an offence under Regulation 18 of the 2002 Regulations.
The Regulations widen the circumstances in which a person can be prosecuted for emitting an offshore chemical so that an intentional emission (i.e. a discharge) will only be lawful if made within the terms and conditions attached to a permit, and any other emission (i.e. a release) will be unlawful.
Regulation 7(b) amends Regulation 5(2)(d) so that conditions of permits can require necessary measure to be taken to prevent or limit the consequences of any incidents affecting the environment, not merely those arising by accident.
Regulations 9(b) and 10(b)(ii) remove the requirements to consult the Centre for Environment Fisheries and Aquaculture Science, the Fisheries Research Service and states who are party to the OSPAR Convention in relation to the renewal or variation of a permit.
Regulation 12 inserts a new Regulation 12a to establish a process for the transfer of a permit from one holder to another.
Regulation 15 extends the circumstances in which a person may be required to provide information to the Secretary of State about the emission and use of offshore chemicals.
Regulations 17 and 18 extend the circumstances in which enforcement and prohibition notices can be served to include any release of an offshore chemical or its use or discharge without a permit. Changes are also made to the period within which remedial steps are to be taken under an enforcement or prohibition notice. This aligns enforcement processes for OCR and OPPC (e.g. powers to prevent releases, enforcement notices, prohibition notices and offences).
Regulation 20 amends provision in relation to offences and makes a number of qualifications regarding defences.

Snippets

Offsite Reinjection of Fluid From Conductor Cutting	The oily fluid generated during conductor cutting cannot be reinjected offsite as the OSPAR agreement applies only to produced hydrocarbons and not to waste streams.
Radioactive Sources	SEPA has requested full details of all sources to be left behind following well abandonment and platform decommissioning. If record keeping is poor this will involve considerable time and effort.