Well Abandonment and Suspension

• Petroleum Act 1998
• Energy Act 2008

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.

• Offshore Chemicals Regulations 2002
• Offshore Chemicals (Amendment) Regulations 2011

The amendment regulations came into force on 30 March 2011 and clarify the status of accidental releases and the reporting procedure for PON1s.

The amendment regulations replace the informal PON5 Part 2 process for well suspension and abandonment with formal permitting processes under OCR and OPPC (also see Guidance Notes).

• Marine and Coastal Access Act 2009 (MCAA)
• Marine Scotland Act 2010

The Marine and Coastal Access Act (MCAA) and Marine (Scotland) Act have replaced and merged 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.

• Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001
• The Offshore Petroleum Activities (Conservation of Habitats) (Amendment) Regulations 2007

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

• DECC Offshore Chemical Regulations Guidance (March 2011) (pdf file)
• DECC Guidance on the OPPC Regulations (March 2011)
• PON5 - Application to Abandon or Temporarily Abandon a Well
• JNCC guidelines for minimising the risk of disturbance and injury to marine mammals whilst using explosives

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

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.

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

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.

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.

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

None known.

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.

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.

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.

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.