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Effective enforcement of underground storage of
carbon dioxide – A presentation of the findings of recent
research
Webinar – Thursday, 18 August 2016
Dr Meredith Gibbs is the inaugural Global CCS
Institute Legal Fellow having been awarded the
Institute's first CCS Fellowship in February 2016. A
prominent Australian environmental and climate
change lawyer and a partner at HWL Ebsworth
Lawyers in Melbourne, Dr Gibbs is a leading expert
on Australia's CCS legal regimes. She is recognised
in Australia's Best Lawyers for her expertise in
Climate Change Law and has advised CCS
proponents and government departments on CCS
legal and regulatory issues.
Dr Meredith Gibbs
QUESTIONS
 We will collect questions during
the presentation.
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 Please submit your questions
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[Insert Title]
Presented by [Insert Speaker]
[Insert date as: Day, # Month Year]
Effective enforcement of
underground storage of
carbon dioxide
Presented by Dr Meredith Gibbs
Partner
 Why is it important?
 Program of research – 6 months
 Methodology
 Case study approach
― Australian Commonwealth (offshore)
― State of Victoria (onshore)
― Japan (offshore)
― China (onshore)
― Malaysia (offshore)
Effective enforcement
7
Effective enforcement criteria
4
Comprehensive obligations that address key risks
Enforcement mechanism for each obligation
Comprehensive M&V requirements
Risk-based, layered and flexible
Grounded in science and fact-based decision
making
Clear allocation of roles and responsibilities
Effective enforcement criteria
5
Comprehensiveness of obligations
Extent to which address key risks
Comprehensive obligations that address key risks
Effective enforcement criteria
6
Extent of M&V obligations during
injection phase
Extent of M&V obligations
post-injection phase
Extent to which baseline monitoring
required
Comprehensive M&V requirements
Effective enforcement criteria
7
Nature of enforcement mechanisms available
Extent to which they are risk-based,
layered and flexible
Extent to which they are grounded in
science and fact-based decision-
making
Extent of mechanisms to deal with
serious situations
Effective enforcement criteria
8
Clear allocation of roles and responsibilities
 Australian offshore regime
 Victorian onshore regime
 Japanese offshore regime
 Malaysian offshore regime
 Chinese onshore regime
Case studies
9
Australia
Victoria Japan Malaysia China
 Comprehensive
obligations
 Not as
comprehensive,
but cover key
obligations
 Existing regime
could be adapted,
needs significant
amendment
 Major project laws
could apply,
substantial reform
for deployment
 Detailed (and
prescriptive) M&V
obligations
 M&V requirements
detailed and CCS-
appropriate
 Lack of M&V
technical detail and
standards
 Lack of M&V
technical detail and
standards
 Extensive
enforcement
powers,
layered/flexible,
science-based
 Limited
enforcement
options but cover
key risks
 Environmental &
OHS legislation
good basis for
effective
enforcement
 Effective
enforcement
would need to be
developed
 Roles and
responsibilities for
enforcement could
be clearer
 Roles and
responsibilities are
clear
 Roles and
responsibilities are
not clear
 Roles and
responsibilities are
not clear
10
 Open discussion between technical experts and legal/regulatory experts
 Focus on why and what we are monitoring for?
 How does what we can monitor for match up with legal requirements for
monitoring?
 Industry concerns
Enforcement workshop – 28 April 2016
11
M&V
What is a
leak?
Baselines
Behaving
as
expected?
Some
unresolved
M&V issues
12
 No definition
 Serious consequences if a leak is determined to exist
 The Macquarie Dictionary defines a "leak" (verb) as:
to let a liquid, gas, etc., enter or escape, as through an unintended hole, crack,
permeable material, or the like.
 Workshop - the leak has to “matter”
 Refer to similar definitions in environmental legislation
 De minimus non curat lex principle
 IEA’s Model Regulatory Framework
 Leak refers to an escape into the atmosphere, contrast with “unintended
migration” underground
 Must be “significant”
Victorian Act – “leak”
13
 Role of establishing an adequate baseline in determining a “leak”
 Duration, scope and parameters of baseline monitoring
 What is the natural variability of CO2?
 False positives/false negatives
 Causation crucial in enforcement cases
 Approach to monitoring (Blackford et al 2015):
 • detection of anomalies;
 • attribution (i.e. to determine the source);
 • quantification of leakage; and
 • impact on the marine environment.
Baseline monitoring
14
 Approved Plan will be key; it will be a living document
 The question, “Does it matter?” applies here as well
 History-matching/calibration - IEA Model Rules
 Requirement to review and update Approved Plan regularly
 Crucial for closure requirements
Behaving as predicted?
15
Certainty and
flexibility
Early-
mover
projects
Regulation
Which comes first?
16
© HWL Ebsworth Lawyers
Adelaide | Alice Springs | Brisbane | Canberra | Darwin | Melbourne | Norwest | Perth | Sydney
hwlebsworth.com.au
20
QUESTIONS / DISCUSSION
Please submit your questions in
English directly into the
GoToWebinar control panel..
Please submit any feedback to: webinar@globalccsinstitute.com

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Effective enforcement of underground storage of carbon dioxide – A presentation of the findings of recent research

  • 1. Effective enforcement of underground storage of carbon dioxide – A presentation of the findings of recent research Webinar – Thursday, 18 August 2016
  • 2. Dr Meredith Gibbs is the inaugural Global CCS Institute Legal Fellow having been awarded the Institute's first CCS Fellowship in February 2016. A prominent Australian environmental and climate change lawyer and a partner at HWL Ebsworth Lawyers in Melbourne, Dr Gibbs is a leading expert on Australia's CCS legal regimes. She is recognised in Australia's Best Lawyers for her expertise in Climate Change Law and has advised CCS proponents and government departments on CCS legal and regulatory issues. Dr Meredith Gibbs
  • 3. QUESTIONS  We will collect questions during the presentation.  Your Webinar Host will pose these question to the presenters after the presentation.  Please submit your questions directly into the GoToWebinar control panel.
  • 4. [Insert Title] Presented by [Insert Speaker] [Insert date as: Day, # Month Year] Effective enforcement of underground storage of carbon dioxide Presented by Dr Meredith Gibbs Partner
  • 5.  Why is it important?  Program of research – 6 months  Methodology  Case study approach ― Australian Commonwealth (offshore) ― State of Victoria (onshore) ― Japan (offshore) ― China (onshore) ― Malaysia (offshore) Effective enforcement 7
  • 6. Effective enforcement criteria 4 Comprehensive obligations that address key risks Enforcement mechanism for each obligation Comprehensive M&V requirements Risk-based, layered and flexible Grounded in science and fact-based decision making Clear allocation of roles and responsibilities
  • 7. Effective enforcement criteria 5 Comprehensiveness of obligations Extent to which address key risks Comprehensive obligations that address key risks
  • 8. Effective enforcement criteria 6 Extent of M&V obligations during injection phase Extent of M&V obligations post-injection phase Extent to which baseline monitoring required Comprehensive M&V requirements
  • 9. Effective enforcement criteria 7 Nature of enforcement mechanisms available Extent to which they are risk-based, layered and flexible Extent to which they are grounded in science and fact-based decision- making Extent of mechanisms to deal with serious situations
  • 10. Effective enforcement criteria 8 Clear allocation of roles and responsibilities
  • 11.  Australian offshore regime  Victorian onshore regime  Japanese offshore regime  Malaysian offshore regime  Chinese onshore regime Case studies 9
  • 12. Australia Victoria Japan Malaysia China  Comprehensive obligations  Not as comprehensive, but cover key obligations  Existing regime could be adapted, needs significant amendment  Major project laws could apply, substantial reform for deployment  Detailed (and prescriptive) M&V obligations  M&V requirements detailed and CCS- appropriate  Lack of M&V technical detail and standards  Lack of M&V technical detail and standards  Extensive enforcement powers, layered/flexible, science-based  Limited enforcement options but cover key risks  Environmental & OHS legislation good basis for effective enforcement  Effective enforcement would need to be developed  Roles and responsibilities for enforcement could be clearer  Roles and responsibilities are clear  Roles and responsibilities are not clear  Roles and responsibilities are not clear 10
  • 13.  Open discussion between technical experts and legal/regulatory experts  Focus on why and what we are monitoring for?  How does what we can monitor for match up with legal requirements for monitoring?  Industry concerns Enforcement workshop – 28 April 2016 11
  • 15.  No definition  Serious consequences if a leak is determined to exist  The Macquarie Dictionary defines a "leak" (verb) as: to let a liquid, gas, etc., enter or escape, as through an unintended hole, crack, permeable material, or the like.  Workshop - the leak has to “matter”  Refer to similar definitions in environmental legislation  De minimus non curat lex principle  IEA’s Model Regulatory Framework  Leak refers to an escape into the atmosphere, contrast with “unintended migration” underground  Must be “significant” Victorian Act – “leak” 13
  • 16.  Role of establishing an adequate baseline in determining a “leak”  Duration, scope and parameters of baseline monitoring  What is the natural variability of CO2?  False positives/false negatives  Causation crucial in enforcement cases  Approach to monitoring (Blackford et al 2015):  • detection of anomalies;  • attribution (i.e. to determine the source);  • quantification of leakage; and  • impact on the marine environment. Baseline monitoring 14
  • 17.  Approved Plan will be key; it will be a living document  The question, “Does it matter?” applies here as well  History-matching/calibration - IEA Model Rules  Requirement to review and update Approved Plan regularly  Crucial for closure requirements Behaving as predicted? 15
  • 19. © HWL Ebsworth Lawyers Adelaide | Alice Springs | Brisbane | Canberra | Darwin | Melbourne | Norwest | Perth | Sydney hwlebsworth.com.au 20
  • 20. QUESTIONS / DISCUSSION Please submit your questions in English directly into the GoToWebinar control panel..
  • 21. Please submit any feedback to: webinar@globalccsinstitute.com