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Norway: Legal and regulatory CCS framework
 

Norway: Legal and regulatory CCS framework

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Mette Karine Gravdahl Agerup, Assistant Director General, Ministry of Petroleum and Energy, Norwegian Government

Mette Karine Gravdahl Agerup, Assistant Director General, Ministry of Petroleum and Energy, Norwegian Government

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    Norway: Legal and regulatory CCS framework Norway: Legal and regulatory CCS framework Presentation Transcript

    • Norwegian Ministry of Petroleum and EnergyNorway: Legal and regulatory CCSframeworkMette Karine Gravdahl AgerupAssistant Director GeneralMinistry of Petroleum and Energy
    • Norwegian Ministry of Petroleum and EnergyTransportation and storage of CO2• In Norway, transportationby pipeline for permanentstorage in a subseageological formation onthe continental shelf iscurrently the only feasiblesolution for storage of CO2from industrial plantsonshore• Storage of CO2 is onlyfeasible on the continentalshelf – for geologicalreasons
    • Norwegian Ministry of Petroleum and Energy
    • Norwegian Ministry of Petroleum and EnergyNorway: National regulation of CCS as partof petroleum activities:Applicable legislation exists• CCS as part of petroleum activities (whether forthe purpose of EOR or permanent storage on thecontinental shelf): Regulated under the existingpetroleum regime:– The Petroleum Act and Regulations(production licence required, conditions fortransportation, storage and monitoring as partof approved Plan for development andoperation)– The Pollution Control Act and Regulations(permit to inject CO2, requirements for thecomposition of the CO2-stream, monitoring)– The CO2-levies Act
    • Norwegian Ministry of Petroleum and EnergyNational regulation of CCS which is notpart of petroleum activities• Directive 2009/31/EC will enter into force forthe EEA countries on 1 June 2013• We will lie down two new sets of regulations ontransportation and storage of CO2 on thecontinental shelf:– Ministry of Petroleum and Energy/Ministry ofLabour: Resource management + HSE– Ministry of Environment: Environmentally safestorage of CO2
    • Norwegian Ministry of Petroleum and EnergyNational regulation of CCS which is not partof petroleum activities• Onshore capture plant:– Energy Act/Land Planning Act (Ministry of Environment)• Building and operation of CO2 pipeline:– New legislation (Ministry of Petroleum and Energy/Labour)• Exploration for, development and use of offshore reservoir forpermanent storage of CO2 (exclusive licences):– New legislation (Ministry of Petroleum and Energy/Labour)• Permit to inject CO2 on the continental shelf:– Pollution Control Act/Regulations (must be amended)(Ministry of Environment)– New legislation (Ministry of Petroleum and Energy/Labour)
    • Norwegian Ministry of Petroleum and EnergyNorway: National regulation of CO2 forpermanent storage on the continental shelf• Issues to be regulated by the Ministry of Petroleum and Energy/Labour(based on existing petroleum legislation and the EU CCS Directive):– Licence to:• Explore for subsea geological structures for permanent storage of CO2• Develop and use subsea geological structures for permanent storage of CO2• Construct and operate pipeline for transportation of CO2 from capture plant tooffshore storage site– Plan for use of an offshore geological formation for permanentstorage of CO2 – subject to Ministry approval– Obligation to carry out environmental impact assessments– Safety issues – risk analyses– Third party access to CO2 pipelines and storage reservoirs –responsibility for injected CO2– Responsibility for long term monitoring of storage reservoir– Transfer of responsibility to the State– Dispute resolution
    • Norwegian Ministry of Petroleum and EnergyNorway: National regulation of CO2 forpermanent storage on the continental shelfAcceptance criteria based on Directive 2009/31/EC and London Protocol:– CO2 stream shall consist overwhelmingly of carbon dioxide– No wastes or other matter to be added for the purpose of disposal– CO2 streams may contain incidental associated substances fromthe source or capture process, but concentrations of all incidentaland added substances shall be below levels that would:• Adversely affect the integrity of the storage site or the relevant transportinfrastructure• Pose a significant risk to the environment or human health, or• Otherwise breach the requirements of applicable EC legislation– Injection of CO2 streams will be accepted subject to an analysis ofthe streams, including corrosive substances, and a risk assessmenthaving been caried out, showing that the contamination levels arein line with accepted criteria
    • Norwegian Ministry of Petroleum and EnergyLong-term liability• Draft regulations imply transfer of responsibility forthe storage site to State twenty years after closure ofthe storage location..– ..if the operator can demonstrate that the storedCO2 is stable and that no leakage occurs from thestorage location• Operator responsible for the cost of monitoring thestorage location for the first thirty years followingsuch transfer• The issue of financial liability is difficult
    • Norwegian Ministry of Petroleum and EnergyFinancial assurance for long-term stewardshipDraft regulations:• Security: Parent company guarantee/other security – to beadapted to phases of activities at any time• The operator to insure his CCS activities at all times – at least:- a) damage to facilities;- b) pollution damage and other liability towards thirdparties;- c) wreck removal and cleanup as a result of accidents;- d) insurance of the licensee’s own employees who areengaged in the activities.• Contractors and subcontractors• Insurance coverage: reasonable in light of risk exposure andpremium costs• Information to the Ministry by the end of each calendar year• The Ministry may require further insurance to be taken out
    • Norwegian Ministry of Petroleum and EnergyPublic engagementDraft regulations:• Operator to carry out impact assessment (IA) before:– Development of CO2 storage site– Construction of pipelines for transportation of CO2– Closure of storage site• IA process:– Draft IA program – public consultation – all interestedparties – at least 6 weeks– Adopted IA program adapted to comments – to all partieswho commented– IA – public consultation – all interested parties – at least3 months– IA adapted to comments – new studies may berequired, as appropriate