1. Environmental
Plans
Unravelling Complexity and
Approaches to Acceptance
Dr. Andrew Morgan
March 2013 – Version 2
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2. Unravelling complexity
• Ice-breaker: Watch the video clip and consider the
implications managing environmental effects has for
marine resource development and how to communicate to
stakeholders that existing or potential impacts are As Low
As Reasonably Practicable (ALARP).
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3. Content
• Presentation outline
- Overview: the approach to submissions to the regulator
under the Offshore Petroleum and Greenhouse Gas
Storage (OPGGS) Act 2006 and 2009 Regulations.
- Environmental Plan (EP) preparation and assessment:
the regulations against which EP’s are assessed.
- Requirement for consultation: in particular the inclusion
of Oil Spill Contingency Plans (OSCP’s).
- Referrals: the need for an Environmental Impact
Statement (EIS) as part of the Environmental Impact
Assessment (EIA) process for matters of national
significance.
- Performance standards and objectives: measuring and
monitoring (eg SMART –
specific, measureable, achievable, relevant and time-
based).
- Implementation strategies: how environmental
performance is measured over an activity life
cycle, checking and review.
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4. - Regulatory reform: The Environmental Protection
Act 1986 and Environmental Protection Biodiversity
and Conservation Act 1999.
- EP content: key components of an EP and it’s
preparation.
- Assurance and compliance: in particular, risk
assessment and monitoring.
- Approaches to submission and acceptance: the
safety case approach.
- Key references:
• NOPSEMA Guidance Note: Environmental Plan Content
Requirements. N4700-GN1074. Rev 1. Jan 2013.
• Offshore Petroleum and Greenhouse Gas Storage
(Environment ) Regulations 2009.
• AS/NZS ISO 31000:2009. Risk Management – Principles and
Guidelines.
• AS/NZS ISO 14001:2004. Environmental Management
Systems – Requirements with Guidance for Use.
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5. • Aims
- Understand the connectivity between aspects of
Environmental Plans
- To highlight the difficulty between compiling EP content
and its alignment with assessment
- To provide solutions for improvement of EP preparation
and submission to facilitate timely acceptance as an ‘in
force’ plan.
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7. 1.1. Need
• Oracle Risk Consultants (ORC) is responding to client need
by developing best practice in Environmental Plan (EP)
preparation and assessment for submission to the National
Offshore Petroleum Safety and Environmental Management
Authority (NOPSEMA) and the Department of Mines and
Petroleum (DMP).
• ORC is responding to operator feedback on issues related to
acceptance of ‘inforce’ EP’s by NOPSEMA.
• ORC is responding to regulator requirements for assessment
and acceptance of EP’s.
• ORC is leveraging its safety case approach for offshore
activities in achieving EP acceptance and compliance for its
clients.
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8. 1.2. Overview
• Acceptance of EP’s can be held up by the inability of
NOPSEMA to make a decision.
• Requirements for assessment follow the relevant
section of the regulations but do not seek to prescribe
the approach to be taken in preparing the EP.
• A NOPSEMA workshop was conducted to obtain
stakeholder feedback on improved guidance criteria
for EP preparation and submission.
• The EP guidance note format provides a more
structured approach in meeting submission
requirements for assessment by NOPSEMA.
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9. • Examples of EP formats may be provided by NOPSEMA
where it may benefit preparation and submission.
• NOPSEMA is not a ‘relevant person’ for the purposes of
consultation but will conduct operator liaison meetings.
• Unlike the 2009 Safety Regulations, the Offshore Petroleum
and Greenhouse Gas Storage (OPGGS) Act 2006 and 2009
Environment Regulations do not prescribe requirements for
environmental management.
• Alignment between NOPSEMA and the Department of Mines
and Petroleum (DMP) 2012 Environment Regulations under
relevant Acts has been achieved.
• Is the operator any better off in understanding the
requirements for content and structuring of EP’s for
assessment and acceptance.
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10. 1.3. Types of construction and
operational activities
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12. 2.1. Content of an EP (NOPSEMA)
• Activity description;
• Description of the environment;
• Impacts, risks and their evaluation;
• Performance objectives and standards;
• Most show an implementation strategy (including
monitoring, reporting, audit and review), along with emissions
reporting (NGER Act 2007), and an Oil Spill Contingency Plan
(OSCP; MARPOL);
• The content of an EP has to comply with other State and Commonwealth
Acts and Regulations relating to the activity (eg Environmental Protection
Act 1986, Environmental Protection, Biodiversity, and Conservation Act
1999);
• Also must contain all consultation (Division 2.2A), capacity to report
reportable incidents, and an operators corporate Environmental Policy;
and
• Included is notifying the Minister before commencement of drilling or
seismic surveys, and reporting annually to regulator.
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13. 2.2. Assessment of an EP
• Requirements for contents of a NOPSEMA
Environmental Plan are similar to DMP.
• Requirements of an EP do not clearly define
alignment of structure and content against NOPSEMA
regulatory assessment criteria (purely non-
prescriptive regulations).
• Assessment against regulations pertains to key
components of submission requirements.
• The regulations an EP is assessed against can make
decisions on acceptance by the regulator difficult if the
submission is not systematic and succinct.
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14. • Key assessment criteria is under division 2.2 and 2.3 of
the 2009 regulations (environment) for the OPGGSA
2006 and includes:
- Reg. 13(3) and (3A) – impacts, risks and
evaluation, including emergency conditions;
- Reg. 13(4) – performance objectives standards and
measurement that address legislative controls;
- Reg. 14(6) – provide for monitoring, audit and management
of no conformance and review of environmental
performance of the implementation strategy;
- Reg. 14(7) – provide for record keeping of emissions and
discharges – air, marine, seabed and sub seabed; and
- Reg. 14(8) – Oil Spill Contingency Plan (OSCP) in
implementation strategy and its maintenance.
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15. 2.3. Requirement for Consultation
• Consultation under Regulation 16(b) requires the operator to
include within an EP:
- A summary of response made by a relevant person;
- An assessment of merits of any objection or claim about
the adverse impact of each activity to which the EP
relates;
- A statement of the operator’s response or proposed
claim, if any, to each objection or claim; and
- A copy of the full text of any response by a relevant
person.
• Under Regulation 11A the operator has to provide sufficient
information and a reasonable period to carry out this
consultation.
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17. • Regulation 14(8) requires that an EP implementation
strategy contain an OSCP as part of the EP acceptance
process. It must demonstrate that:
- Modifications of an OSCP trigger a revision of the
related EP if a change in environmental risk or
introduction of a new risk occurs; and
- The operator has completed the necessary consultation
with relevant authorities, response organisations and
other stakeholders.
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18. 2.3.2. Referrals
• Under State/NT jurisdiction a referral to the Minister must
be made for an activity with environmental impacts and/or
a matter of national significance.
• The requirement comes under of the Environmental
Protection, Biodiversity and Conservation (EPBC) Act
1999.
• The Minister determines whether:
- the activity is a controlled action subject to the EPBC
Act;
- not a controlled action if action is in accordance with a
specified manner; and
- not a controlled action and approval not required if
action taken in accordance with referral.
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19. • An assessment can be made from:
- information in a referral;
- an accredited assessment;
- information identified by the minister as being necessary;
- an environmental impact statement (EIS) (compiled from
Environmental Impact Assessment (EIA) under part IV of
the Environmental Protection Act 1986 and the
Environmental Protection Authority (EPA), consultation);
or
- by public enquiry.
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20. • For an EIA the EIS is assessed against:
- What the proponent wants to do, what impacts there will be and
how the proponent plans to manage impacts of the project; and
- A proposal is subject to the processes and procedures of an EIS
as set out in section 46B of the Development Act 1993;
• An EIS details expected environmental, social and economic
effects of a development.
• It has to provide for alternatives and a forum for public
consultation.
• Environmental aspects have to be considered in parallel to
social economic, technical, and other factors.
• Consideration must be given to the EPA as the Minister must
refer the EIS to the EPA if the prescribed activity is of
environmental significance.
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22. 2.3.4. Regulatory reform
• The Department of Environment and Conservation, which
administers the Environmental Protection, Biodiversity and
Conservation Act (EPBC) 1999, is reviewing regulations:
- A draft set of standards has been released by the
Australian Federal Government designed to
streamline environmental assessment and approval
agreements with the states and territories.
- If agreement can be reached a single environmental
assessment and approval process for major projects will
result.
- The approvals process for major projects needs
simplifying while keeping stringent environmental
standards.
- The draft standards ensure matters of national
environmental significance are protected, and that
Australia continues to comply with its international
environmental obligations.
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23. • Requirements for the EPA to assess a proposed activity
under the Environmental Protection Act 1986.
- Needed if the proposed activity that despite ALARP
measures will have a significant environmental impact
requiring Environmental Offsets
- Considered as part of the EIA process in a proposal in
conjunction with an EIS prepared for referral
- Approvals and operating is required under Part V of the
Act
- Development of offsets as part of the EIA process was
led by the Department of Mines and Petroleum (DPM)
- The Act was amended to incorporate such requirements
as components of submissions
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24. 2.4. Key Components Essential
to Acceptance of an
‘Inforce Plan’
• EP - most show an implementation strategy that
includes monitoring, reporting, audit and review, along
with emissions reporting, and an OSCP; and
• EIS - how the proponent plans to manage impacts of
the project (if referred).
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25. 2.4.1. Inclusion of OSCP Content
• An OSCP is an operational document for an emergency
situation, requiring that the responsibilities of key
personnel, response actions and reporting requirements be
made clear;
• Relevant environmental, meteorological, oceanographic and
oil characteristic information will be used for on-site decision
making, and so should be accessible;
• Response strategies should be clear;
• The plan should be subject to regular training simulation and
real-time exercises, review and updates; and
• Where relevant information or procedures exist in other
company documents such as emergency response
plans, these documents should be clearly referenced.
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26. • Preparation of an OSCP should contain:
- Response priorities (including health and safety, habitat
and cultural resources, flora and fauna, commercial
resources, amenities);
- Objectives of the OSCP;
- Initial actions (including assessment, notification and
escalation, mobilisation, incident action plan
development);
- Response termination arrangements;
- Recovery arrangements;
- Provision for (Regulation 14(6));
• Testing
• Maintenance
• Review
- Arrangements for reporting to the regulator (Regulation
15); and
- Demonstrate compliance (Regulation 7) with the EP.
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30. 2.5. Assurance and compliance
• Responding to new or increased environmental impacts or
risks (Regulations 8, 17, 18 and 19):
- Operator must not carry out activities if there is a new
environmental impact or risk identified;
- A significant increase in impact or risk;
- Review of an EP means the OSCP should also be
evaluated; and
- Reduced response capability, and an increase in spill
consequence may result from increased impact or risk.
• Environmental Risk Assessment (Regulation 13(4)):
- Define the objectives and set standards against which
performance by the operator in protecting the
environment is to be measured (monitoring);
- Include measurement criteria for determining whether
objectives and standards are met; and
- Conduct Environmental Risk Assessment Workshops in
this regard.
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31. 2.5.1. Environmental Risk Assessment Workshops
(ENVID’s)
• Facilitation of Environmental Risk Assessment Workshops using PHA
Pro 8 Risk Assessment Software.
- Programme in operator risk matrix;
- Set up spreadsheet;
- Identify hazards and their cause and consequence;
- Determine avoidance, mitigation and management strategies, risk rank; and
- Provide recommendations for action close-out and prepare report.
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32. 2.5.2. Methodology
• A brainstorming method in conjunction
with a ‘What if?’ analysis is used to
systematically identify the hazards and
associated causes, impacts or
consequences and controls.
• The activities are described by the
respective responsible persons and then
systematically assessed for potential
hazards and accident events.
• Hazards identified and lessons learnt
from similar programs/campaigns are
also used to support the ‘What if?’
discussions.
• Consequence rating is the maximum
credible severity of the event; and
• Likelihood rating is the likelihood of the
event occurring with the consequence
severity that has been selected.
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33. 2.5.3. Example Risk Matrix
Frequency of Occurrence
Rare Unlikely Credible Likely Frequent
(1) (2) (3) (4) (5)
Event Event Event has Event often Events are
occurrence is occurrence is occurred in occurs in the frequent in
remote and/or possible but the Australian Australian the Company
Consequence
never heard rare in the industry industry (PTTEP AA)
Production/ of in the E&P E&P industry (APPEA) (APPEA)
Severity People Environmental Effect Reputation
Property industry
Catastrophic Multiple Loss Tier 3 (>1,000 tonnes) International
(E) fatalities >50M AUD International assistance TV and papers
HIGH RISK
PTTEP AA CEO approval
Major Single fatality Loss Tier 2 (10–1,000 National TV
required to continue
(D) Multiple LTIs 10M–50M tonnes) and papers
with disabilities AUD Regional assistance
Serious Single LTI Loss Tier 1 (up to 10 tonnes) Local TV
(C)
MEDIUM RISK
Multiple ADI 1M–10M Any spill >80L Local written
AUD media Risk reduction measures
Localised effect
required to achieve ALARP
Moderate MTC Loss Any spill <80L Local media
(B) Single ADI 50K–1M Minor effect interest
AUD
LOW RISK
Broadly acceptable
Minor No or minor Loss Spill contained on No reaction
(A) injury with first <50K AUD, board
aid insignificant No effect
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34. 2.5.4. Monitoring
• One of the recommendations of the Montara Commission of
Inquiry in the wake of the PTTEP AA Montara blowout in
2009 included putting in place operational and scientific
monitoring programs (OSMPs) that could be rapidly
implemented in the event of a hydrocarbon spill. Such
monitoring should include:
- addressing deficiencies around the lack of baseline data;
and
- delayed implementation of the environmental monitoring
program for the Montara accident.
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35. • Use of Before, After, Control, Impact (BACI) designs
for environmental monitoring in the event of a hydrocarbon
spill and ongoing recovery monitoring requires good
planning.
• Use of real time integrated environmental monitoring
systems can also assist in this regard.
• Compliance with OPGGS Environment Regulations 2009
and also EPBC Act 1999 approval conditions for an offshore
activity could be met with a single monitoring document.
• NOPSEMA is consulting with the Department of
Sustainability Environment, Water, Population and
Communities (SEWPaC) with the aim of minimising the
regulatory burden on operators and government in this
regard.
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36. • Statoil (Norway) has awarded Kongsberg Oil & Gas
Technologies a contract worth NOK 150 million over three
years to develop the world’s first integrated environmental
monitoring system (EM) for oil and gas activities.
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41. 3.1. Key Components of an EP
Assessed by NOPSEMA under
the 2009 Regulations
Assurance:
• Identification of environmental risks and impacts of the
activity; and
• Assessment of identified environmental risks and impacts.
Compliance:
• Environmental performance objectives, standards and
measurement criteria;
• Implementation strategy; and
• Reporting arrangements.
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42. 3.2. Assessment Recap
• Key assessment criteria is under division 2.2 and 2.3
of the 2009 regulations (environment) for the
OPGGSA 2006 and includes:
- Reg. 13(3) and (3A) – impacts, risks and
evaluation, including emergency conditions;
- Reg. 13(4) – performance objectives, standards and
measurement that address legislative controls;
- Reg. 14(6) – provide for monitoring, audit and
management of no conformance and review of
environmental performance of the implementation
strategy;
- Reg. 14(7) – provide for record keeping of emissions
and discharges – air, marine, seabed and sub seabed;
and
- Reg. 14(8) – Oil Spill Contingency Plan (OSCP) in
implementation strategy and its maintenance.
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43. 3.3. Approaches to
Submission, Assessment and
Acceptance of an ‘Inforce’ EP
• A safety case format that includes:
- Adaptation of EP content to:
• Scope of validation: Regulation 14(6) including
corporate environmental policy, environmental legislation
and requirements and referrals to other agencies, and
provide for monitoring, audit and management of non
conformance and review of environmental performance of
the implementation strategy;
• Facility description: description of activity and receiving
environment;
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44. • Safety management systems: Regulation 13(4)
and 14(7) and (8) including performance
objectives, standards and measurement criteria and
implementation strategy and maintenance, record
keeping, and OSCP; and
• Formal Safety Assessment: Regulation 13(3) and
(3A) identification of environmental risks and impacts
of the activity and assessment of identified
environmental risks and impacts, including OSCP
modelling and EIA (also used for EIS and referral if
needed).
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45. - Incorporating (within scope of validation):
• Emissions reporting (National Greenhouse and
Energy Reporting Act 2007);
• An EIA approach to EIS submissions and referrals
(how the impact of the activity is proposed to be
managed); and
• Reference to consultation documentation
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Coastal and offshore resource infrastructure development is occurring in a time of increasing reliance on our coasts and oceans to provide ecosystem services to humans – ie food, air and water.An already strained ecosystem is at an increased risk of not delivering these ecosystem services to humans into the future due to factors such as climate change, population increase, and pollution from the increasing globalisation of society and the economy. Without ecologically sustainable economic development and use of coastal and ocean energy resources that provides an economic buffer in transitioning to renewable energy into the future we cannot hope to adapt and minimise the impact of global and local environmental change on society.The development of Environmental Plans provides for a risk-based approach to sustainability and the complex relationship between people, resources and the natural world that ensures industry is accountable for its actions in providing services to humans. Under the OPGGS Act 2006, the 2009 Environment Regulations follow the Principles of Ecologically sustainable economic development (Reg 3). Where a petroleum activity is being carried out (Reg 4(1)) an EP must be submitted.
The 2 main components of an EP are: - environmental assessment (planning phase); and - implementation strategy (operational phase).The 2009 Regulations governing submission and acceptance of EP’s are consistent with system-based approaches described in AS/NZS standards ISO 14001 Environmental Management Systems and ISO 31000 Risk Management – Principles and Guidelines. An EP should capture: - a description of the activity, environment, regulations, impacts and risks and detail the impacts and risk of the activity. It should evaluate and demonstrate that impacts and risks are acceptable and reduced to ALARP. It should define performance objectives and standards and measurement criteria that capture performance and monitoring requirements. It should include consultation, an implementation strategy and any additional content required.The complexity of coastal and ocean resource development can be represented in Chevron’s Wheatstone project, bringing ashore LNG from offshore wells and associated infrastructure.At every stage of exploration, construction and operation, environmental impacts have to be managed and the potential for significant and often cumulative adverse effects mitigated against.Drilling, installing equipment and production facilities, seismic surveying, pipe laying, dredging, trenching, rock piling, or servicing and maintaining production infrastructure and its use - they all have an existing or potential impact on the surrounding environment.
This presentation will cover (see PowerPoint)The presentation focuses in particular on the regulatory environment and approvals process in regard to preparation, assessment and acceptance of EP’s as in force plans.An EP has to demonstrate compliance with the criteria in Reg 11(1):(1) The Regulator must accept the environment plan if there are reasonable grounds for believing that the plan: (a) is appropriate for the nature and scale of the activity or proposed use; and (b) demonstrates that the environmental impacts and risks of the activity will be reduced to as low as reasonably practicable; and (c) demonstrates that the environmental impacts and risks of the activity will be of an acceptable level; and (d) provides for appropriate environmental performance objectives, environmental performance standards and measurement criteria; and (e) includes an appropriate implementation strategy and monitoring, recording and reporting arrangements; and (f) for the requirement mentioned in paragraph 16 (b) — demonstrates that: (i) the operator has carried out the consultations required by Division 2.2A; and (ii) the measures (if any) that the operator has adopted, or proposes to adopt, because of the consultations are appropriate; and (g) complies with the Act and the regulations.
Also covered (see PowerPoint)In particular, the presentation covers the components of assurance and compliance and how this relates to the need to demonstrate a risk-based approach to resource developments.Division 2.3 of the Environment Regulations outlines the EP development process in a coherent and systematic way. This approach provides a strong link to risk management systems developed byrecognised bodies such as ISO and AS/NZS.EP environmental assessment: The environmental assessment component of an EP is focused around a process to demonstrate that environmental impacts and risks are of an acceptable level and ALARP.EP implementation strategy: The core elements are:measures to ensure environmental performance objectives and environmental standards are metsystems, practices and procedures to ensure impacts and risks are continuously reduced to ALARPchain of command, including roles and responsibilitiesmeasures to ensure personnel are competent and trainedprovisions for monitoring, auditing, management of non-conformance and reviewprovisions for the maintenance of accurate quantitative records of emissions and dischargesan OSCP including emergency response and testing arrangementsprovisions for ongoing consultation
The aim of this presentation (see PowerPoint)Specifically, the presentation’s objective relates to how to prepare an EP that covers off all the content requirements while also being structured in such a way as to meet assessment criteria.The regulatory process and elements provide a framework that allows operators to apply a systematic approach to meeting the EP requirements of the Environment Regulations.The EP process step to “Describe” [sub-regulations 13(1) and (2)] applies to the elements “activity” and “environment”. So, to meet the regulatory requirements, an EP must “Describe the Activity” and “Describe the Environment” as laid out in the Environment Regulations.
In considering EP’s feedback on the new regulatory arrangements for EP’s, and EP’s in general was obtained by liaising with operator HSE specialists.The approach the regulator takes in administering the regulations was also considered against content requirements to gain insight into how this approach impacts the activity operator when preparing an EP.The EP process and keyelementsinclude:Describe 4(1), 5, 6, 11(1) 13(1), 13(2), 13(5): Activity, Environment, Requirements, Acceptable level(s)Detail 4(1), 8(1), 13(3): Impacts and risksEvaluate and demonstrate 4(1), 11(1),13(3), 13(3A), 14(3): Impacts and risks – acceptable level(s), Impacts and risks - ALARPDefine 3(b), 4(1), 11(1), 13(4): Environmental performance objectives, Environmental performance standards, Measurement criteriaConsultation 11(1), 11(8), 11A, 14(9), 16(b): Stakeholder consultationImplementation strategy 14Additional content requirements (Regulations 15, 16, 26, 26A, 26AA,26B, 29 &29A) that must be reflected in an EP.
Evidence of need covers off 4 key areas, these being (see PowerPoint).The Environment Regulations are:objective-based, where general requirements are provided. The operator is responsible for determining their approach to meeting these requirements;risk-based, where a central part of the EP is the assessment and management of the environmental impacts and risks of the activity;performance-based, where appropriate environmental performance objectives and environmental performance standards are in place that have measurement criteria to determine if they are being met; andsystem-based, where a structured risk management process is applied to developing the EP which shows the continual and iterative steps that are followed to assess and manage environmental impacts and risks effectively.The operator of an activity owns the EP. NOPSEMA’s role is one of assessing and deciding to ‘accept’ or ‘refuse to accept’ the operator’s EP and subsequently monitoring the operator’s continued compliance with the EP.
The object of the Environment Regulations, as set out in Regulation 3, is to ensure that petroleum activities are carried out in a manner that is consistent with the principles of ecologically sustainable development; and in accordance with an EP that has appropriate environmental performance objectives, standards and measurement criteria for determining whether the objectives and standards have been met.The context behind the evidence of need to address the complexities of EP preparation and approaches to acceptance can be divided into 9 key points, these being (see PowerPoint).
For an EP to be accepted, the operator must address the regulatory requirements in a way that provides NOPSEMA with reasonable grounds to believe that the requirements have been, or will be, met. This should be supported by well-documented evidence.To determine if an EP meets the requirements, operators should consider: Does the EP clearly demonstrate that the criteria in Regulation 11(1) have been met? Is the demonstration supported by adequately justified statements? Are all statements made to support the demonstration sufficiently supported by evidence or appropriate references, such that NOPSEMA can reasonably determine their accuracy and reliability? Is a clear basis provided for environmental performance objectives, environmental performance standards and measurement criteria and are they appropriate to: the protection of the affected environment, identified environmental impacts and risks and their related control measures? Are the environmental performance objectives and environmental performance standards specific and measurable (e.g. S.M.A.R.T. - specific, measurable, achievable, relevant, time-based)? Is it clearly demonstrated how, when, where and why control measures will be implemented, monitored and reported against? Does the implementation strategy include the specific systems, practices and procedures that describe how environmental performance will be measured over the life of the activity? Does the implementation strategy clearly demonstrate the systems that are in place to implement, check and review activities (including management measures) in compliance with the EP?
The types of coastal and offshore construction activities requiring an EP may consist of:Dredging – deepening shipping channels, sediment and rock piling for ports and wharfs, marina’s, land reclamationTrenching – burying pipelines into the seafloor, burying or overlaying coastal areas such as beaches, intertidal areas, mangrovesConstruction – infrastructure development for energy projects, wharfs, wells, pipes, processing, transport etcProduction – various types of production including subsea, floating LNG, manned and unmanned WHP’s etcSeismic surveys - The environmental assessment component of an EP is focused around a process to demonstrate that environmental impacts and risks are of an acceptable level and ALARP. Environmental performance objectives and environmental performance standards, and their measurement criteria, are defined and set respectively to ensure overall environmental performance is maintained at the defined acceptable and ALARP levels.The implementation strategy core elements required to meet this are: measures to ensure environmental performance objectives and environmental standards are met systems, practices and procedures to ensure impacts and risks are continuously reduced to ALARP chain of command, including roles and responsibilities measures to ensure personnel are competent and trained provisions for monitoring, auditing, management of non-conformance and review provisions for the maintenance of accurate quantitative records of emissions and discharges an OSCP including emergency response and testing arrangements provisions for ongoing consultation
All these types of activities require preparation of an EP where although the context is different, it has to meet the same assessment criteria.Unravelling the complexity of such arrangements regarding EP content and preparation will assist in understanding how to simplify approaches to acceptance of an EP as an in force plan.The Environment Regulations simply reflect the “plan – do – check – act” cycle that is the basis of a systematic approach to environmental management. The Environment Regulations provide a framework in which this basic process is conducted and are designed to ensure appropriate and sufficient oversight. Consequently, the Environment Regulations provide the basic process and critical steps against which operators need to demonstrate their compliance with the regulatory requirements including the “plan – do – check – act” cycle.
Requirements regarding the content of an EP appear relatively straight forward at first glance and should include (see PowerPoint). The process for developing an EP can be described as having two distinct components – the environmental assessment and the implementation strategy.
However, the manner in which an EP is prepared is not easily discernable and left to the operator to decide. Neither the regulations nor the regulator outlines any specific requirements as to the approach that should be taken in preparing or presenting the required content.The key process steps (describe, detail, evaluate and demonstrate, define, consultation and implementation strategy) that are provided for in the Environment Regulations for developing an EP.The Environment Regulations also include the particular elements that these process steps relate to, and which further describe the EP requirements of the Environment Regulations.
The regulations do outline what an EP is assessed against, but bridging the gap between required content and alignment with the regulations for assessment successfully depends on how content is structured and presented. Here required content is covered in more detail and then related to document preparation for assessment.Relevant Regulations Assessed Against are:Activity: 4(1) (definition of activity), 5, 6, 11(1)(a), 13(1)(a-d)Environment: 4(1) (definition of environment), 11(1)(a), 13(2) (a)(b)Other legal requirements: 13(5) (a)(b), 11(1)(a)Acceptable levels of impacts and risks: 11(1)(c) (also see section 3.6 “Evaluate and Demonstrate: Impacts and Risks - Acceptable Level”)Impacts and Risks: 4(1) (definition of environmental impact), 13(3)(a), 8(1)Evaluate and demonstrate impacts and risks: 4(1) (definition of environmental impact), 11(1)(c), 13(3)(b), 13(3A)(a)(b)Evaluate and demonstrate impacts and risk are ALARP: 11 (1) (b), 14 (3)Define Environmental Performance Objectives: 3(b)(i)(ii), 4(1) (definition of environment, environmental performance, environmental performance objective and recordable incident), 11(1)(d), 13 (4)(a)(b)(c)Define Environmental Performance Standards: 3 (b)(i)(ii), 4(1) (definition of environmental performance standard and recordable incident), 11(1)(d), 13 (4)(a)(b)(c)Define Measreument Criteria: 3 (b)(i)(ii), 4(1) (definition of environmental performance objective and environmental performance standard), 11(1)(d), 13 (4)(a)(b)(c)Stakeholder Consultation: 11(1)(f), 11(8)(a)(vi), 11A, 14(9), 16(b)Implementation Strategy: 14(1-10)Additional Content Requirements: 15, 16, 26, 26A, 26AA & 26B, 29, 29A
Perhaps a key aspect underpinning EP content is the requirement to demonstrate consultation (see PowerPoint).The EP must include details of the consultation conducted during the development of the EP [11(1)(f)] and also include a plan for ongoing consultation during the operational phase [14(9)].The EP must demonstrate that the operator has carried out the required consultations in the required manner [11(f)(i)].The EP must demonstrate that the measures (if any) that the operator has adopted, or proposes to adopt, as a result of the consultations are appropriate [11(f)(ii)].For consultation in the course of preparing the EP, the operator must consult relevant persons [11A].The EP must contain a report on all consultations between the operator and a relevant person [16(b)] and that report has specific requirements [16(b)(i-iv)].The implementation strategy must contain a plan for appropriate consultation on an ongoing basis with relevant stakeholders (Commonwealth, state or territory authorities and other interested personsor organisations) during the operational phase of the activity [14(9)].Consultation in preparation of an EP may help inform the operator about what is considered to be an ‘acceptable level’ of environmental impact and risk.The consultation must be appropriate for the nature and scale of the activity in that all persons whose functions, interests or activities may be affected by the activity must be consulted.
The operator should consider and provide a reasonable basis for determining who they consider to be ‘relevant persons’ and define these in the EP. While “relevant person” is described in the EnvironmentRegulations, the operator must determine in the context of nature and scale of the activity, which persons may be relevant and whose functions, interests or activities may be affected by the activitiesto be carried out under the EP.Stakeholders can consist of any person, organisation, ethnic group or industry that may potentially be adversely affected by an activity. Examples are:Fishing industryAquaculture industryIndigenous peopleConservation groupsRecreational user groupsGovernment (matters of national interest)Public Military
Of particular importance is the requirement for consultation regarding development of an Oil Spill Contingency Plan. Evidence of this consultation has to be shown in the preparation of an EP.It is essential to liaise with those involved in implementing the National Plan, which is aligned with MARPOL requirements for spill response, escalation, and a 3-tiered approach to dealing with an unplanned event. This is covered in more detail later (see section 2.4.1, 2.4.2, 2.4.3).In cases where it is appropriate to the nature and scale of an activity, operators could undertake consultation for a range of petroleum activities on a strategic basis. The submission for each activity would need to demonstrate that this action was appropriate and that each identified relevant person had sufficient time and information to make an informed assessment of the potential impacts of the specific activity on their functions, interests or activities.
When an activity has the potential to impact on matters of national interest a referral to the Minister of Resources, Energy and Tourism has to be made for assessment. It is a requirement under the Environmental Protection, Biodiversity and Conservation Act 1999 (see PowerPoint).
Assessments are made from (see PowerPoint).The EP must describe the regulatory and other requirements that apply to the activity and are relevant to the environmental management of the activity. Requirements should be included as part of the context of the activity to help understand the regulatory and other requirements that may influence the way in which an activity is assessed and managed by the operator. Requirements include other approvals, legislative requirements or conditions that may apply to the specific activity.
An Environmental Impact Statement has to be prepared that addresses the effects of the activity or project. Key to an EIS is that it provides for alternatives and an opportunity for public participation or consultation. Also key is that the Minister must refer the EIS to the Environmental Protection Agency for assessment. Activities that have the potential to impact on sensitive areas may include:Oil and Gas Exploration and production near MPA’s and Marine Park coral reefs, deep ocean habitats, nursery grounds etcOil and Gas Exploration and production near whale migration routesOil and Gas Exploration and production near turtle nesting sitesCoastal processing facility development and associated wharf/port structure near culturally significant sitesCoastal processing facility development and associated wharf/port structure near MPA’s or marine parksOperations near or in commercial fishing areasVessel or facility movement and / or subsea construction biofouling and introduced marine pests or native invaders
EP requirements could include amongst other things: relevant laws, codes, standards, agreements, treaties, conventions or practices that apply to the jurisdiction that the activity takes place in, or other jurisdictions, that may be relevant to the activity. The description of requirements should not just be presented as a list of requirements, but should provide details of which requirements are relevant to the specific activity in the EP and how they apply to the activity. The description of requirements forms part of the context of the activity and influences the assessment and management of the activity, and the development of environmental performance objectives and environmental performance standards. These requirements should be taken into account in establishing, implementing and maintaining environmental management of the activity. Requirements that are not relevant to the environmental management of the activity do not need to be included.
Commonwealth environmental regulatory reform is underway to streamline the approvals process and provide for one application and assessment process, particularly in dealing with biodiversity offsetting for mining and energy development. This will limit the burden on the proponent in preparing submissions for assessment and referral for matters of national significance.
Alongside commonwealth regulatory reform the WA EPA under the Environmental Protection Act 1986 allows for environmental offsets to be incorporated into the EIA process as part of preparation of an EIS for referral. ie activities potentially impacting on matters of national significance can be ‘offset’.
One of the most important features of an EP is the implementation strategy, which provides assurance to the regulator that all necessary precautions have been taken to ensure that any potential or existing impacts have been reduced to As Low As Reasonable Practicable (ALARP). As a function of this strategy the proponent has to show in any referral that they are able to manage such impacts.The implementation strategy includes specific requirements [Reg 14 (4-10)] that must be addressed in the EP for the duration of the proposed activity. These include: chain of command, responsibilities, training and competence, monitoring, auditing, management of non-conformance and review of environmental performance and the implementation strategy, quantitative records of emissions and discharges, an OSCP, consultation and regulatory compliance. An OSCP must be included as a component of the implementation strategy. The OSCP must contain specific emergency response and testing arrangements that are appropriate to the impacts and risk of the activity under emergency conditions.
The implementation strategy must provide for appropriate consultation with relevant government agencies, relevant interested persons and organisations for the life of the activity or five-year EP review period. (see section 3.11: Consultation)A critical element of this strategy is the Oil Spill Contingency Plan. Being a ‘operational’ document it provides the necessary detail that ensures compliance with EP assessment criteria. An OSCP brings together a wide range of EP components, from EIA and baselines studies where knowledge is lacking, to Zone of Potential Impact (ZPI) modelling and responses to an unplanned event offshore and onshore. Provisions for periodic review of environmental performance and the effectiveness of the implementation strategy should be detailed. This review cycle should allow the operator to determine if the measures, systems, practices and procedures of the implementation strategy have been effective in ensuring that performance objectives and environmental performance standards have been met and that impacts and risks are consistently being managed to acceptable levels and reduced to ALARP as defined in the EP.
In preparing an OSCP consideration should be given to (see PowerPoint)
Sources of spill events can be from activities where unplanned events occur, such as:A collision, grounding or founderingA well blowoutA pipeline incidentCauses may be related to any number of events, but the circumstances surrounding them are always viewed from a risk and safety assessment perspective. Irrespective of the source, the impacts have a commonality about them that is directly related to the scale of the event.Right side of the slide shows the position of the Montara blowout and associated oil slick. Left side shows vessel incidents and associated oil slicks. Circumstances surrounding the source of the event interact with the nature of the environment and determine the scale of impact.
Impacts can be broadly defined as those occurring offshore and at sea and those that affect the coastline, whether originating from offshore, coastal or onshore.Offshore: depending on the scale of the event it has the potential to affect entire food webs. For example the Montara blowout cumulative impact on the environment was the size of the state of West Virginia. Over such broad spatial scales Oil type, toxicity (PAH’s), viscosity, specific gravity, aging and weathering have significant implications for the degree of temporal impact (impact over time) on localised offshore primary production and flora and fauna. Impacts of a major event include:Transient fish, invertebrate, turtle and mammal populations can be smothered, gill fouled and/or ingest weathered oil. Consumption and accumulation up the food chain can occur – localised collapse of food web due to inhibition of primary production because of photoinhibition and altered behaviour (phytoplankton and zooplankton populations). Deep ocean impacts from event aged fuel breakup and deposition to the deep ocean seafloor via the carbon cycle. Abundance in biogenic sediments and accumulation through benthic primary producer food chain in deep ocean habitats – effect unknown. Upwelling and re suspension due to seasonal cycling, long term disruption to food webs and trophic structure across broad spatial scales.
Onshore: impacts onshore are immediately more obvious and pronounced and can be initially related to smothering of marine fauna and flora. Initial impact of uptake of toxic PAH’s on aquatic health depends on the rate of weathering and type of organism. Ie filter feeder, infauna, epibenthic, carnivore, herbivore and whether they are a bird, mammal, crustacean, mollusc, echinoderm etc and the manner in which they reproduce (broadcast spawner, brooder, etc). Different habitats will mediate an organisms response to an oil slick and may include:Surf zone beaches – accumulation through successive tidal cycles, increased breakup and aging, smothering and seeping into sub layers of sand.Rocky coastline – topographically complex means accumulation of weathered oil is more difficult to get rid of and effects may be long-lasting in this regard.Mangroves – almost impossible to remove trapped oil without removing forest. Breakdown may be faster though because of the nature of mangroves and entrapment and binding up of sediment.Harbour and other estuaries – ecologically very sensitive, especially if already heavily modified due to anthropogenic activities. Oil can become trapped between tidal cycles and never wash out, depending on degree of flushing.Long-term impacts include the sub-lethal and chronic effect of toxicity (PAH’s and endocrine disruption), reproductive inhibition, and recruitment failure, population change and dislocation. Often unintended consequences occur ie larval supply to other unaffected areas etc, or nursery grounds for local populations wiped out, esp. fish.
A key aspect of preparing an EP is to show how an activity will be monitored and how any potential impact will be assessed. To meet this requirement it is essential that the risk assessment process has been addressed in preparing the EP and that evidence of this has been provided. Measurement criteria must be developed and standards also developed to demonstrate compliance with the EP and its requirements.Some operators may integrate the preparation of an EP within an existing Environmental Management System (EMS) and its certification or development under ISO14001. ISO 14001 is an internationally accepted standard that sets out how you can go about putting in place an effective Environmental Management System (EMS). The standard is designed to address the delicate balance between maintaining profitability and reducing environmental impact; with the commitment of the entire organization, it can enable the achievement of both objectives.What’s in ISO 14001:General requirementsEnvironmental policyPlanning implementation and operationChecking and corrective actionManagement review
The risk assessment process is in alignment with AS/NZS ISO31000 which replaces AS/NZS 4360. Risk assessment has to include identifying the risks, analysing likelihood and consequence, prioritising the risks, and risk treatment.It is a requirement by NOPSEMA for environmental risk assessment to address both inherent risk with no controls in place and to show that the post-treatment risk has been reduced to tolerable or with additional controls in place to As Low As Reasonable Practicable (ALARP).A great software programme now available to achieve this is PHA Pro 8, which allows the user to enter a risk matrix which is then linked to the spreadsheet used during a workshop.
Risk is defined as the ‘effect of uncertainty on objectives’ (AS/NZS ISO 31000:2009). The objectives can be financial, health and safety, environmental and so on. The risk management process involves the following steps, as given in ISO 31000:2009:setting objectives and establishing the context of the risk assessment;identifying the risks;analysing the risks to determine the level of risk, which is defined as the combination of the consequences and likelihood of the risk;evaluating the risk, to decide if a risk is acceptable, tolerable or intolerable / unacceptable;treating the risks, focusing on those risks which are intolerable; andmonitoring and review, to continuously refine and improve the assessment and risk treatments.
A typical risk matrix against which activities are assessed consists of:A scale of severity and associated consequences in terms of people, property and the environmentA scale of the frequency of occurrence with associated definitionsThe response matrix showing whether the risk is low/tolerable, medium/ALARP, or high/intolerableProvisions for monitoring environmental performance and the implementation strategy against performance standards and objectives identified through the risk assessment process throughout the operational phase of the activity must be included. Monitoring should be sufficient to identify deviation in environmental performance from the levels set in the EP. The frequency and type of monitoring should be appropriate to the nature and scale of the activity.
Monitoring programmes need to address both the potential for proximate operational environmental impacts while providing assurance that in the event of a major spill or other event the wider environment has been considered.A monitoring plan needs to take into account the potential for spills to come ashore, account for lack of information by conducting baseline studies, and providing for ongoing monitoring. It also has to consider that in the event of a spill a rapid response survey can be conducted both in proximity to the spill and other areas where a spill is likely to come ashore. Real time monitoring is also crucial, especially in terms of met-ocean data, and modelling and prediction of downstream events and impacts from a spill.
Baseline studies and modelling requires careful consideration of sampling and survey design to achieve a balance between reliability and cost. Before, After, Control, Impact designs optimise the opportunity to detect any potential environmental impact, the details of which are the subject of an entirely separate seminar.Needless to say that the natural world is full of background ‘noise’, which can easily mask the ability to detect impacts if sampling designs do not adequately account for this ‘noise’.The chance of false negatives is relatively high and requires rigorous power analysis and testing to minimise or limit this from occurring should a result show no impact. ie there really was NO impact!A complimentary sampling regime may involve real time integrated monitoring, which provides a rigorous picture of an area over time but may have limited use spatially depending on cost. However, it may be quite useful for operational monitoring.
Advances in Radiotelemetry mean technology, hardware, and software is becoming available to use remotely for real time monitoring in environments that are often difficult to work in.May involve time-lapse video of the seafloor and water column, sensors for sampling water parameters, sea surface variables, seabed shifts and disturbance etc.Able to detect changes in habitat composition, community composition, fauna behaviour, seawater nutrient levels, turbidity and current, seawater chemical composition etc.
All arriving international vessels are required to manage their ballast water in accordance with the Australian ballast water management requirements. The DAFF website provides further information to assist operators comply with the requirements. A comprehensive set of domestic ballast water management arrangements are being developed under the National System to complement the existing requirements for international vessels. These arrangements will be consistent with the International Maritime Organization’s International Convention for the Control and Management of Ships' Ballast Water and Sediments, which Australia has signed subject to ratification.The risk of the petroleum production and exploration industry spreading marine pests is highest when vessels, immersible equipment and infrastructure:are heavily biofouled and organisms such as mussels, oysters, seaweeds and seasquirts are visibleare moved to a new area after spending long periods either stationary or at low speeds (including undergoing dockside upgrades)have areas without antifouling coating or the coating is inappropriate for vessel use, aged or worn.
Risk can be reduced by incorporating practices that minimise the build up of biofouling into your routine cleaning and maintenance programs. The 'National biofouling management guidance for the petroleum production and exploration industry' document outlines practical recommendations for operators on managing biofouling on petroleum related vessels, equipment and infrastructure. These recommendations have been developed in conjunction with the petroleum production and exploration industry and apply to the following vessel types:offshore support vessels including utility support vessels, platform supply vessels and anchor handling tug supply vesselsmobile offshore drilling units including jack-up units, drilling barges and semi-submersible shipscrew transfer vesselsdiving support vesselsaccommodation vesselsseismic survey vesselslanding craftpipelay ships and bargesfloating production, storage and offloading vessels (FPSO) and floating storage and offloading vessels (FSO).Operators of oil tankers and gas carriers should refer to the 'National biofouling management guidelines for commercial vessels' for guidance on managing biofouling. Operators of heavy lift vessels and dredges (including rock dumping ships) should refer to the 'National biofouling management guidance for non-trading vessels' for further information on managing biofouling. The 'National biofouling management guidance for the petroleum production and exploration industry' also inlcudes information on biofouling management of submersible equipment and infrastructure.
Monitoring programmes may consider:Permanent sea surface sensors Permanent satellites and GIS Permanent seafloor sensors Water column deployed and towed equipment Periodic remote surveysPeriodic surveysPredictive modellingStructures, fouling and marine pest management
Key elements contributing to an EP need to be bought together in a coherent and succinct manner for submission and assessment against the regulations and acceptance as an ‘in force’ plan.
Key in preparing the EP structure is to provide evidence of assurance and compliance (see PowerPoint).Provisions for management of non-conformance must also be detailed in the implementation strategy. These provisions should allow sufficient information to be collected to fulfil regulatory requirements for reporting of recordable and reportable incidents to the regulator and to ensure that any corrective and preventative actions are implemented.Provisions for periodic review of environmental performance and the effectiveness of the implementation strategy should be detailed. This review cycle should allow the operator to determine if the measures, systems, practices and procedures of the implementation strategy have been effective in ensuring that performance objectives and environmental performance standards have been met and that impacts and risks are consistently being managed to acceptable levels and reduced to ALARP as defined in the EP.
To recap on the regulations, the key to successful assessment is under division 2.2 and 2.3 of the 2009 regulations (see PowerPoint). Key aspects related to successful assessment also include: The EP must include arrangements for recording, monitoring and reporting a sufficient level of information to allow the operator to demonstrate to the regulator that all of the environmental performance objectives and environmental performance standards in the EP have been met. Reporting arrangements must address reportable incidents, recordable incidents and routine environmental performance reporting.The EP must include details of all the reportable environmental incidents that may arise from the proposed activity.Intervals for environmental performance reporting in accordance with the Regulations must be provided in the EP such that they can be agreed to by the regulator. he EP must detail the arrangements put in place by the operator for notification of the relevant state or territory minister of the commencement of drilling or seismic survey activities if those activities may have an effect on a community in the activity area.The EP must contain a statement of the operator’s corporate environmental policy.The EP must contain a report on consultations (see section 3.11: Consultation).The EP must address the specific requirements for the discharge and testing of produced formation water.
In bringing these elements together, the assessment criteria and regulations can be matched against submission structure by following the Safety Case Approach to submissions and approvals (see PowerPoint).
What does the future hold:Alignment with EMS ISO 14001 both from a regulator and operator perspective. Future legislation and government policy objectives may seek to reflect this arrangement.Environmental impact is becoming an increasingly important issue across the globe, with pressure to minimize that impact coming from a number of sources: local and national governments, regulators, trade associations, customers, employees and shareholders. Social pressures are also building up from the growing array of interested parties, such as consumer, environmental and minority non-governmental organizations (NGOs), academia and neighbours. So ISO 14001 is relevant to every organization, including:Single site to large multi-national companiesHigh risk companies to low risk service organizationsManufacturing, process and the service industries; including local governmentsAll industry sectors including public and private sectorsOriginal equipment manufacturers and their suppliers
