Well Intervention and Workovers

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

Offshore operations involving the use and/or discharge of chemicals must be the subject of a chemical permit.

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.

Proposed revision to the Offshore Chemicals Regulations 2002 are currently out to consultation (see Pending Legislation).

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

These Regulations introduced a permitting system for oil discharges and replace the requirement for an exemption under POPA. These Regulations do not require a permit for discharge of OBM/OPF and SBMs as these are permitted under the Offshore Chemical Regulations 2002. However any material being discharged or reinjected that has been contaminated by hydrocarbons from the reservoir will require a permit (see Consents).

Proposed revision to the OPPC Regulations 2005 are currently out to consultation (see Pending Legislation).

• Guidance Notes on the Offshore Chemicals Regulations 2002
• Additional Guidance for the Offshore Chemicals Regulations 2002 – January 2003
• Guidance Notes on the OPPC Regulations and Permit Application are available for download from DECC website.

Revised Guidance Notes on the Offshore Chemical Regulations 2002 and OPPC 2005 are currently out to consultation (see Pending Legislation). A copy of the proposed revised Guidance Notes are available as part of the consultation package on the DECC Website.

• OSPAR Recommendation 2000/2 on a harmonised mandatory control system
• 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
• 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).

Chemical Permit

There is a requirement for the operator to obtain a permit to use and discharge workover chemicals.

OPPC Permit

A permit will be required to cover the discharge or reinjection of any aqueous well work-over, intervention and service fluids contaminated with reservoir hydrocarbons (see OPPC Summary Table). On fixed installations where the normal procedure would be to route the fluids through the produced water process train, such discharges could be included in the schedule for the installation produced water discharges (see Produced water) or reinjection, otherwise a standalone Term Permit for the duration of the workover operation may be applied for.

Chemical Permit

An application for the grant of a permit from DECC under Regulation 4 is made by a PON15.

• Where well intervention, work-over or service operation are related to a drilling programme, application must be made using a PON15B (see Drilling Chemicals);
• Where the operations are not related to a drilling programme, and will not involve a discharge of chemicals outwith the safety zone of a host discharging installation, application can be made using a PON15D (see Production Chemicals) or PON15F (PON15F can be term permits or if related to a platform operations can be on an annual basis);
• Application will be made using a PON15F where the well intervention or workover operation are not directly related to a drilling programme and will involve a discharge of chemicals outwith the 500 m safety zone of a host discharging installation. This will normally include workover operations from a MODU, unless the MODU is located within the 500 m safety zone of the host discharging installation or all discharges are mediated via the platform/FPSO.
• PON15F applications may not be made for annual permits (e.g. for ongoing platform well interventions) or a term permit for the duration of the well intervention operation.

OPPC Permit

Applications for a permit under the OPPC Regulations must be made by application form, which is available for download from DECC website.

Guidance Notes on the OPPC Regulations and Permit Application are available for download from the DECC website.

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 the DECC OED Environmental Management Team at ukop@decc.gsi.gov.uk

Any problems with PON15 submission contact the DECC OED EMT by email at emt@decc.gsi.gov.uk

Applications for OPPC permits must be sent to the DECC Offshore Inspectors by email.

DECC plans to incorporate OPPC permit applications into the UK Oil Portal, once this is in place, all applications will be made via this system.

PON15 applications must be made at least 28 days before workover or completion operation begins.

OPPC Permit - apply for permit 28 days before discharge starts.

Operators will need to assess the risks to the environment, which might arise from their particular chemicals use and discharge. For some chemicals e.g. those on the OSPAR PLONOR list, assessment will be straightforward. Most, however, will require a formal process of risk assessment, such as can be done using CHARM software. In this process, the predicted environmental concentration (PEC), determined from a knowledge of individual substance or product chemistry and the conditions of use, is compared with the Predicted No-effect Concentration (PNEC) determined from toxicity tests conducted to agreed protocols. This allows more informed assessments of risk to local sensitivities to be made in particular use and/or discharge scenarios. The use of the CHARM model is compulsory for calculating the Hazard Quotient (HQ) but other risk assessment models may be used to calculate the Risk Quotient (RQ) provided comparability with CHARM can be demonstrated.

The definition of oil has been updated under the OPPC Regulations and is defined as "oil means any liquid hydrocarbon or substitute liquid hydrocarbon, including dissolved or dispersed hydrocarbons or substitute hydrocarbons that are not normally found in the liquid phase at standard temperature and pressure, whether obtained from plants or animals, or mineral deposits, or by synthesis". This definition is designed to capture all produced hydrocarbons, including condensate, and all uses of oil in the course of offshore exploration and production activities.

However, the OPPC Regulations do not apply to hydrocarbons or substitute hydrocarbons that are designated as chemicals for the purpose of the Offshore Chemicals Regulations 2002.

The OPPC permit schedule will detail the required sampling strategy. Analysis must be undertaken according to current DECC standards.

The volume of well workover fluids discharged must be measured or calculated to +/- 10% uncertainty on volume.

See OPPC Sampling Summary Table - Well Operations for a summary of sampling/calculation requirements.

Persons undertaking oily water sampling and analysis shall be provided with sufficient information, instruction and training to undertake the task.

Chemical Use and Discharge

Reports should be made on all drilling and well chemicals as required by DECC electronically to the EEMS website. Reports are made on the drilling chemicals and fluids spreadsheets available for download on the EEMS website.

As well as being used by DECC to check actual use and discharge of chemicals against the term permit, they will also be used towards compilation of the OSPAR returns, which Contracting Parties are obliged to make.

For certain problematic substances, such as those identified for substitution, the Department may require more frequent reporting. A condition in the permit will make this clear if necessary.

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.

OPPC Permit

The following information must be retained on the offshore installation for 2 years (see OPPC Sampling Summary Table - Well Operations), and made available to DECC on request. The information must also be reported to DECC (see below).

• Date and time when each sample was collected;
• Results of the dispersed oil concentration in well intervention fluids for each sample in mg/l;
• The volume of well intervention fluid discharged between each sample;
• The total volume of well intervention fluids discharged;
• The total weight of dispersed oil in well intervention fluids discharged; and
• The average concentration of oil within the well intervention fluids discharged.

Arrangements must be in place to ensure the accuracy and correctness of records. Where records are maintained solely in electronic form, secure systems shall be provided so that all changes are recorded and the original entries are not deleted. Where hard copies only are maintained, the person in charge of the operation shall sign a true copy of the records for the time period over which they have responsibility.

Chemical Use and Discharge

Reports to be made to DECC via the EEMS Reporting System. An EEMS term permit form is to be used for reporting, which can be downloaded from the EEMS Website.

Annual Progress Reports on Substitution Chemicals

Reports need to be submitted to DECC Environmental Management Team by email to emt@decc.gsi.gov.uk

OPPC Permit

Reports on oil discharges under the new OPPC Regulations must be made to DECC via the Inspectorate Data mailbox.

Chemical Use and Discharge

If on a Term Permit (PON15F) reports must be submitted at least 28 days after the expiry date of the permit.

If on an Annual Permit (PON15F) reports must be submitted at least 28 days after the expiry date of the permit, i.e. by 28 January each year (for the preceding year).

If on a Life Permit (PON15D) reports must be submitted quarterly.

Annual Progress Reports on Substitution Chemicals

Annual reports must be submitted by 30 May each year, for the previous year's chemical use and discharge.

OPPC Permit

Oil in water reports must be submitted to DECC at the end of operation.

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.

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.

A spill of chemicals must be reported by PON1.

DECC will also undertake inspections as appropriate and have powers to issue directions (see Drilling Chemicals)

If the concentration of dispersed oil in well workover fluids being discharged exceeds 30 mg/l, this must be reported to DECC using the OPPC non-compliance notification form, which can be downloaded from the 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.

DECC, if of the opinion that the OPPC 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 oil, 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.

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.

The OPPC Regulations give DECC far greater and wide ranging powers to monitor and investigate all oil discharges whether lawful or unlawful.

Inspectors may board an installation any any reasonable time and make such investigations as they consider necessary to investigate whether the requirements, restrictions or prohibitions imposed under the OPPC Regulations have been or are being complied with, or to monitor any discharge of oil.

The DECC Environmental Inspectorate Enforcement Policy sets out the general principles that Inspectors shall follow in relation to enforcement including prosecution.

Permits for workovers either be issued for a specified period and are “Term Permits” or as an "Annual Permit". 

Term Permits cannot be renewed, although extensions can be applied for through submission of a PON15F variation.

Annual PON15Fs may also be applied for ongoing well intervention operations from a production installation. Renewals of annual PON15F should be resubmitted by end of November each year to allow for approval before 1st January (or approval before first well intervention operation planned for the year).

Applications need to be made to DECC for a variation in the terms and conditions of a permit (Term or Annual). This would involve any increase in the use and discharge of chemicals or additional chemicals. All applications need to be considered by DECC and FRS in Scotland and CEFAS when in England and Wales.

Permit holders applying for an emergency variation should telephone the DECC out of hours contact. These details will be passed to the DECC on-call Environmental Inspector who will contact the permit holder to further discuss the emergency variation request.

Following a review of the chemical permitting procedures, DECC now require that all emergency chemical variation requests are made in writing following the initial contact telephone call. The DECC on-call Environmental Inspector will email a data request by email, with completed questions returned by email. Following a review of the request a written response granting or approving the variation will be sent by return of email.

The applicant must subsequently formally vary the PON15 permit within 2 working days of the emergency contact.

For more information see DECC Environmental Alert 004/2009

If workover related discharges are included in the Fields Life Permit under the OPPC Regulations, this will be reviewed at a frequency stipulated in the permit schedule. The minimum frequency of review will be every three years. If planning to change the amount/frequency of discharge, an application for a variation will be needed. This must be prepared by amending the original application and clearly highlighted. At least 28 days must be allowed for when applying for a variation.

If a Term Permit has been issued under the new OPPC Regulations (i.e. for an activity specific time limited discharge operation), this will only be valid for that operation and will expire after this time. A new application will be required for new planned discharge operations. Application will also be required to DECC for any variation to OPPC permit.

The Offshore Chemicals Regulations 2002 currently contain no powers to enable enforcement actions to be taken against operators of offshore installations for unintentional releases of chemicals (e.g. resulting from accidents). Although it may be possible to take action in relation to such activities under other statutory powers, the effect is that there is no single comprehensive regime for the regulation of chemical releases from offshore installations. The Department therefore proposes amending the Offshore Chemicals Regulations 2002 to make such discharges unlawful and liable to possible enforcement action. The key amendments would entail distinguishing between intentional discharges and other releases; and incorporating a new offence in relation to such other releases. At the same time, the Department proposes to make a number of changes to the Offshore Chemicals Regulations 2002 and the Offshore Petroleum Activities (Oil Pollution Prevention and Control) Regulations 2005 to ensure that the two regulatory regimes are consistent.

The Consultation closes on 16 October 2009. Further information is available on the DECC Website.

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.