Offshore Petroleum & Greenhouse Gas Environment Regulation Cameron Grebe David Christensen Katherine Ross Environment Division, NOPSEMA Presentation to Kangaroo Island Community 14 October 2014
Agenda Introduction, NOPSEMA Cameron Grebe General Manager Environment overview Environmental David Christensen Environment Specialist assessment and compliance Katherine Ross Consultation and Environment Specialist consideration of issues Questions
Purpose • Background and role of NOPSEMA • Clarify offshore petroleum environmental approval processes and how NOPSEMA secures compliance • Provide context to NOPSEMA decision making on environment plans such as Bight Petroleum Lightning 3D Marine Seismic Survey • Explain consultation process and overview of how issues are considered • Provide contacts for further information 3
Background - NOPSEMA • NOPSA established in 2005 for OHS • Montara Commission of Inquiry and Australian Government response • Environmental management function established 1 January 2012 • EPBC Act endorsement from 28 February 2014 to become single national offshore petroleum regulator 4
Jurisdiction for environment 5
Jurisdiction 1 Commonwealth waters (OPGGS Act) 2 State jurisdictions 3 (powers may be 4 conferred under (2) to NOPSEMA) 6
Independent statutory authority 7
Legislated functions Monitor Investigate Compliance and Enforce Improvement Advise Promote Report Governance Co-operate 8
Oil and gas life cycle 9
Overview: Stages of petroleum exploration & development Offshore Project Proposal required* Environment Plan required End of Life Exploration (& appraisal if discovery) Development Example timeline from title award if petroleum discovered * New development without EPBC Act decision 10
About seismic surveys Seismic survey general layout Source: Geoscience Australia, Australian Government Seismic cross section Source: Geoscience Australia, Australian Government 11
Context: Lightning 3D marine seismic survey Date 12 Source: Environment Plan Summary for Lightning 3D MSS
Context: BP Ceduna 2012 marine seismic survey 13 Source: Environment Plan Summary for BP Ceduna 3D MSS
Key legislation • OPGGS Act and Environment Regulations • Objectives of Environment Regulations – Principles of ecologically sustainable development – Impacts and risks are ALARP and to an acceptable level • Amendments to Regulations 1 January 2012 and 28 February 2014 – Strengthen regulations – Informed consultation enhanced (not informed consent) – Enabled EPBC Strategic Assessment Program endorsement (including addition of OPP) • Other OPGGS Act amendments to strengthen environmental compliance/enforcement 14
Overview: NOPSEMA environmental decision-making • Independent, professional • Must be reasonably satisfied of all impacts & risks managed to acceptable and ALARP levels • Substantial internal expertise, team based • Seek external advice where necessary • Request for further information and/or provide opportunity to modify and re-submit • Subject to merits and judicial review 15
Questions on NOPSEMA and its role? Next: NOPSEMA compliance activities – assessments and inspections of petroleum activities
Environmental approval process 17
Environment Division General Manager Environment Assessment and Assessment and Spill Risk Environmental Inspection – Inspection – Effects Seismic and Drilling and Production Development Operations Operations Environment Manager Environment Manager Environment Manager Environment Manager (x1) (x1) (x1) (x1) Environment Environment Environment Environment Specialists Specialists Specialists Specialists (x 5) (x 7) (x 6) (x 5)
Acceptance criteria for an environment plan NOPSEMA must accept an environment plan if reasonably satisfied that the environment plan: • is appropriate for the nature and scale of the activity ; • environmental impacts and risks will be acceptable and reduced to as low as reasonably practicable ( ALARP ); • has appropriate performance standards (ie conditions) • includes an appropriate implementation strategy and monitoring, recording and reporting arrangements; • demonstrates that the titleholder has carried out the consultation required by Division 2.2A ……etc. Refer to Regulation 10A of the Environment Regulations • 19
Environment plan process Risk managemebnt process Environmental management (AS/NZS ISO 31000) system (AS/NZS ISO 14001) 20
Snap shot: What environmental impacts and risk? The environment has been defined in the Environment Regulations to include: • Ecosystems & their parts including people and communities • Natural and physical resources • Qualities, characteristics of locations, places and areas • Heritage value of places …and the social, economic and cultural features of these matters.
NOPSEMA assessment policy Assessment policy principles • All information contained in submissions provided for assessment will be treated as confidential, but information may be disclosed where compelled or authorised by law • Each assessment will be fair and technically competent • There will be consistency of methodology between different assessments • The detail of assessment will be proportional the level of risk 22
NOPSEMA assessment process Assessment methodology • Two part assessment of the plan against requirements of the Environment Regulations – General and topic assessment, with the topic based on components of the activity that pose the greatest level of environmental impact or risk • Assessment tools include the provision of further written information, or request for modification to an environment plan • Environment plan submission details and summary published on NOPSEMA’s website 23
Merit-based decision making Principles of good decision making: • Within power – a decision must be made within legal authority and the decision-maker must apply the correct tests and follow any required procedures • Relevant – a decision must encompass the statutory criteria and other matters to which is should properly have reference • Well-founded – a decision is well-founded if it has a proper basis in the assessment of evidence • Fair – a decision should be impartial and should provide parties whose interests are affected with sufficient opportunity to give their views and have them considered • Logical and clear – Well explained and one that a hypothetical “reasonable decision-maker” would be able to reach 24
Securing compliance • Assessment process ensures: – All environment plans contain clear information on environmental performance standards (ie controls) and measurement criteria – That controls are measureable and time based, not vague commitments • Titleholders have to monitor own performance, demonstrate compliance and report back • NOPSEMA monitors and enforces compliance through inspection powers, incident investigation and compliance enforcement tools 25
Control measures as a result of consultation – case study 1 Managing impacts and risks to Whales to an ALARP and acceptable level Environmental Environmental Measurement criteria performance outcome performance standard seismic vessel will move scout is 5-10 km ahead of MMO records and ships to less sensitive area to seismic vessel with a log continue operations if dedicated MMO whales are encountered power/shut down when 2 qualified PAM PAM records, ships log whales detected operators, 24hrs operations (+MMOs) 26
Outcomes comparison – case study 2 EPBC Act Referral Conditions EP control measures Restricted seismic ops to avoid Seismic ops timed to minimise peak whale times impacts to multiple species Statement 2.1 for whale Statement 2.1 for whale and interactions other marine mammal species Additional MMOs Additional MMOs Restricted night/low visibility Aerial surveys to detect operations upwelling and whale aggregations Restricted ops when whales Use of PAM 24hrs to detect feeding certain cetacean species Records taken of pinniped and other marine species Controls for fishing interactions 27
Questions on assessment and compliance activities by NOPSEMA? Next: consultation requirements under the Environment Regulations
Consultation in the environment plan process CONSIDER PLANNING STEPS FEEDBACK IDENTIFY SUBMIT ASSESS COMMENCE EVALUATE THE REVIEW THE RISKS, EP TO MERITS ACTIVITY RISKS AND LEGISLATIVE STAKEHOLDERS NOPSEMA IDENTIFY CONTROL IMPLEMENT REQUIREMENTS & FOR POTENTIAL MEASURES CONTROLS & & GUIDANCE STAKEHOLDER ASSESS- CONTROLS SYSTEMS ISSUES PROVIDE MENT FINAL RESPONSES Titleholder Planning: consultation with ‘relevant persons’ on impacts relating to Implementation: functions, activities or interests via sufficient info and time ongoing consultation NOPSEMA Assessment Enforce of submission complaince Environment Plan Summary
Specific consultation requirements – planning stages • In the course of preparing an environment plan, a titleholder must consult with ‘relevant persons’ – Government agencies – Persons or organisations who functions, interests of activities may be affected by the activities to be carried out under the EP 30
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