Chemicals - Drilling

• Pollution Prevention and Control Act 1999
• Food and Environment Protection Act 1985 (FEPA)
• 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.

• 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)
• 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.

• EC Directive 2004/35 on Environmental Liability with Regard to the Prevention and Remedying of Environmental Damage (see Snippets).
• 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

There is a requirement for the operator to obtain a permit to use and discharge drilling chemicals. This permit must be in place before commencement of operations.

For discharges of excess cement and other surplus material at end of operations - see Performance Standards .

An application for the grant of a permit from DECC under regulation 4 is made via a electronic PON15B (Word document). It shall contain -

• A description of the offshore source on or from which the offshore chemical is to be used or discharged, and the location of the offshore source in the relevant area;
• A description of the proposed technology and other techniques for preventing or, where this is not possible, reducing the use or discharge of the offshore chemical from the offshore source;
• A description of the measures planned to monitor the use or discharge of the offshore chemical; and
• An assessment of the risk of damage to the environment from the use and discharge of the offshore chemicals proposed.

The regulations allow for the acquisition of further information if that submitted is deemed insufficient or incorrect and for the gathering of evidence to verify any statements made.

Applications should be made using the following forms:

Wells and sidetracks (including new drilling from platforms) - PON15B.

Workovers, if part of the drilling programme (outside the platform 500m safety zone) – PON15B.

Alternatively the PON15F can be used for all workovers and well intervention programmes.

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

PON15B (term permits) applications must be made at least 28 days before drilling commences. No period of public notice exists. However, if also seeking a direction that an ES is not required, additional time should be allowed.

Applications for variations to permits do not require a period of public notice. 28-day lead-time therefore applies.

PON15F applications must be made at least 28 days before workover or completion.

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.

Conditions of an approved permit will indicate the types and volumes of chemicals that may be discharged into the environment. These conditions must not be exceeded.

Chemical permits can be used to cover batch discharges of surplus operational material, for example surplus water-based mud formulations or surplus wet cement. However, the quantities involved will be expected to be reasonable and full details of the batch discharges must be included in the permit application. Chemical permits cannot be used to cover the disposal of large quantities of unwanted material, such as bentonite or dry cement.

The disposal of large quantities of unwanted material must be the subject of a FEPA Part II License. As the OSPAR Convention prohibits the sea disposal of industrial waste, applications will only be approved if there are valid technical or health/safety reasons for undertaking the discharge. In all other cases, it is unlikely that the application will be approved and materials should be returned to shore for reuse or disposal. Discussions should be held with DECC (see Snippets).

All chemical use/discharge must be monitored and recorded. Components of oil based mud systems must be listed individually with their appropriate use and discharge (see Reporting).

The Regulations state – “Government will as circumstances dictate conduct check monitoring. It will seek to confirm that routine monitoring is generating accurate returns. The costs of this monitoring will be recovered under the scheme”.

Where an inspector considers that any activity in relation to the use or discharge of an offshore chemical involves a serious and imminent risk of pollution, he may give such directions in relation to that activity (including a direction requiring the cessation of that activity), as he considers necessary to avoid or minimise the risk of pollution in question. 

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 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.

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 drilling chemicals (PON15B) will be in 2009, for chemicals used and discharged in 2008.

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 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 the 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 well. DECC must be notified of any drilling 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 before the due date. Otherwise a new application (28 days) will be required.

Applications need to be made to DECC for a variation in the terms and conditions of a permit if there is any increase in the use and discharge of chemicals or changes in the chemicals used. All applications need to be considered by DECC and FRS (CEFAS in England and Wales).

Update - change made after the application but before approval has been given.

Variation - change made after approval has been given.

Application for a variation or update should be made by clearly amending the previously submitted PON15 application.

All PON15 submissions must be linked to the relevant WONS well file for the drilling consent application (PON4). Where a drilling programme is amended, the need to submit either a permit variation or new permit will depend on whether the change to work programme would be classed as a re-drill (i.e. if a new WONS well file would be generated). If a new WONS well file is needed, a new PON15 will also be required. Otherwise, a variation of the existing PON15 can be submitted.

If submitting a variation, all sections should be completed describing any changes in drilling and chemical usage relating to the new works.

Note - a variation cannot be submitted once a Term Permit has expired, and a new application must be submitted.

Changes in spud dates - DECC don't want to be prescriptive and are happy to see a drilling window based on risk. Normally DECC will limit the permit duration to one month either side of the drilling window - anything beyond this will need to be justified. Where DECC asks for spud date i.e. Section D of the PON 15 this should be given and the narrative section used to explain where and why there is built in flexibility. For example if the expected spud date is the 15th March and a total drilling period of 60 days then the 15th of March should still be quoted in section D but environmental sensitivities and possible impacts should cover the period February to June.

If drilling occurs within this window, the only notification to DECC will be the new spud date that should be advised through WONS. If drilling is due to start before, or continue after, the window notified in the PON15, the sensitivities addressed in the application must be examined to assess whether there is any significant adverse change. The conclusion should be advised to DECC's Environmental Manager who handled the original PON15 by e-mail, in addition to advising WONS. It should be noted that extra time must be allowed as DECC may need to go back to JNCC in cases where drilling will occur outside the original window.

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).

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

Reporting of use and discharge must be undertaken on a component basis of the whole mud.

Where a mud is recycled, DECC has agreed that for reporting purposes, the assumption can be made that the recycled mud being used for a base is a mixture of the predominant base oil and barites and can be reported as such. Where additional additives are added to the recycled mud, these will need to be reported separately.

At present, operators are detailing chemical use for each cementing operation. In future, operators should enter the total use and discharge of each cementing chemical, so that the chemicals only appear once in the table for each method of use. 

For CHARMable chemicals, RQ values should continue to be calculated for each cementing operation to determine the worst-case RQ. The table should then be completed using the values for dosage, batch dilution factor etc. related only to the worst case. For non-CHARMable chemicals, the table should be completed using the highest dosage used during any part of the cementing operation.

The Public Participation Directive is applicable to the Offshore Chemical Regulations 2002, however, there will be no changes to the regulations as there is already a requirement for public consultation.

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. 

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.

OBM components

The components of OBM mud systems must be listed individually for each chemical permit.