Environment Report 2016

ENVIRONMENT REPORT 2016

6. Significant Issues and Activities The Health, Safety and Environment Team at Oil & Gas UK helps members manage the regulatory pressures emerging from governments that affect the licence to operate. We monitor and risk assess relevant legislation, identifying potential areas of concern for ourmembers and stakeholders.We also look to influence thedevelopment of legislation where appropriate and maintain key stakeholder interfaces, allowing us to play an active role in policy formation across government and regulators. We also work with members and other stakeholders to generate several supporting tools and guidelines. Working in a collaborative manner has the twin benefits of reducing the overall cost of the work and allowing for wider industry and stakeholder input and review of the project outcomes. This section outlines key areas of focus in 2016. 6.1 Developing Tools Collaboratively Technical Note on Financial Responsibility for Production Assets On 19 July 2015, the EU Offshore Safety Directive (2013/30/EU) became UK law 51 , representing the single biggest change to domestic offshore health, safety and environmental management in many years. Responding to the Deepwater Horizon incident in the Gulf of Mexico in April 2010, the European Commission sought to align the different major accident hazard regulatory frameworks across Europe with one rigorous regime aimed at further minimising the risks of offshore operations. In the UK, the majority of the Directive’s requirements were introduced through the Offshore Installation (Offshore Safety Directive) (Safety Case etc.) Regulations 2015 52 , the Offshore Petroleum Licensing (Offshore Safety Directive) Regulations 2015 53 and the Merchant Shipping (Oil Pollution Preparedness, Response and Co-operation Convention) (Amendment) Regulations 2015 54 . As part of the implementation of the Offshore Safety Directive (2013/30/EU), the Offshore Petroleum Licensing (Offshore Safety Directive) Regulations 2015 55 make provision relating to such licences in offshore waters. These regulations require the licensing authority to consider certain matters before granting such a licence and require the licensee to have and maintain adequate provision to cover liabilities and financial obligations for potential accidental events. The Competent Authority overseeing compliance with the Directive, or the Licensing Authority, may request evidence of this provision. An Oil & Gas UK technical note, issued to operators by BEIS, outlines a pragmatic, flexible and cost-effective process for operators to satisfy the requirements of the Licensing Regulations 2015. The proposals outlined in the document have been agreed with BEIS and a supporting study to validate cost estimates for oil spill clean-up, fisheries compensation and management of waste is being carried out. This will update the cost study results carried out post the Deepwater Horizon incident and draws on new fisheries and hydrographic data for the North Sea.

51 Since the UK voted to leave the EU, Oil & Gas UK is working with its members to make this transition as smooth as possible and to maintain our world-class and robust safety regime on the UKCS.

52 See www.legislation.gov.uk/uksi/2015/398/pdfs/uksi_20150398_en.pdf 53 See www.hse.gov.uk/offshore/assets/pdfs/offshore-petroleum-licensing.pdf 54 See www.hse.gov.uk/offshore/assets/pdfs/merchant-shipping.pdf 55 See www.legislation.gov.uk/uksi/2015/385/made

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