NAS Workshop on Performance- and Management-Based Safety Regulation of the North Sea Oil & Gas Sector

Transcription

1 NAS Workshop on Performance- and Management-Based Safety Regulation of the North Sea Oil & Gas Sector The Hague, The Netherlands, January 4-5, 2017 North Sea Regulators Panel Denmark Hans Erik Christensen Danish Working Environment Authority PO Box 1228, 0900 Copenhagen C Phone: hec@at.dk

2 Contents Overview of Sector H&S at Work Regulators Presentation of the DWEA The Danish Oil & Gas Infrastructure Duty Holders and Other Stakeholders Offshore Oil & Gas Regulators Danish Legislative Setup Offshore H&S Legislation Types of Regulatory Approaches ( The Regulatory Matrix ) Compliance Enforcement and Oversight Regulator s Competences and Funding

3 Health & Safety at Work Regulators Sector Regulator Ministry Regulatory framework All entities Onshore Offshore Oil & Gas Shipping and Fishing Aviation Ministry of Employment Ministry of Employment* Ministry of Industry, Business and Financial Affairs Ministry of Transport and Building The Danish Working Environment Authority The Danish Working Environment Authority** The Danish Maritime Authority The Danish Transport and Construction Agency Working Environment Act Offshore Safety Act * From Jan 1, Until then, The Ministry of Energy, Utilities and Climate Act on Safety at Sea Danish Air Navigation Act **From Jan 1, Until then, The Danish Energy Agency

4 Danish Working Environment Authority Regional Inspection Offices Greenland Offshore Oil and Gas Offshore: 16 staff + 1 vacancy DWEA total: approx. 500 staff

5 Tasks of the Danish Working Environment Authority (Offshore Safety) 1. Assess design notifications and grant permits and approvals (approval of wells from July 2016) 2. Supervision of compliance with the Offshore Safety Act (wells and verification scheme from July 2016) 3. Drafting and issuing regulations (executive orders) and associated guidelines 4. Cooperation with the social partners in drafting regulations. 5. International co-operation (NSOAF, IRF and EU)

6 Fields and Infrastructure 6

7 Facts A total of approx. 15,000 people employed in the sector including service and supply. About 3,000 work on the facilities in the North Sea; about 1,000 on a daily basis. 20 fixed production facilities 11 permanently manned 7 normally unattended 2 under development 7 (as of Jan. 3, 2017) mobile units (drilling rigs and accommodation facilities) 600 wells, 1,800 km pipelines 4 operators

8 Duty Holders Duty Holders are entities having the duty to comply with the law Licensees Operators as responsible for operation of production facilities. Owners of non-production facilities Other contractors Employers Supervisors Employees Suppliers Others (e.g. Doctors duties to report suspected work related diseases to the DWEA) 8

9 Other Stakeholders Trade Associations Oil and Gas Denmark (operators) Danish Shipowners Association Social Partners Labor Unions Danish Shipowners Association Danish Federation of Industries International organizations IOGP (operators) IADC (drilling contractors) 9

10 Social Partner Cooperation Tri-partite cooperation between Regulators Danish Shipowners Association/Danish Federation of Industries Trade Unions on Federation Level Outcomes Draft regulations Other health and safety issues Two-partite cooperation (Industry and Labor Unions) Agreements on working conditions that are not prescribed by law E.g. working time 10

11 Authorities regulating offshore oil and gas activities Competent Authority (Offshore Safety Directive) Safety and Health: Danish Working Environment Authority (The Offshore Safety Act) Oil Spill Response Plans: Danish Environmental Protection Agency ( The Act on Protection of the Marine Environment)Other Authorities Licenses & Exploitation (Resources): Danish Energy Agency (DEA) (Subsoil Act) Danish flagged mobile units: Danish Maritime Authority (Act on Safety at Sea) Helicopters and Helidecks: The Danish Transport and Construction Agency (Danish Air Navigation Act) Food Safety: Danish Veterinary and Food Administration

12 The Danish Legislative System Conventions EU Law (Directives and Regulations) Issued and signed upon authorization stated in the Act by the Minister or the Agency. Examples: Management of Safety and Health.(Order no. 1198/2015) Construction, design and equipment of production installations (Order no. 1195/2015) International Obligations Acts Executive Orders Passed by the Parliament and signed by the Queen of Denmark. Examples: The Offshore Safety Act and the Health and Safety at Work Act Issued by the agency. Explains how the regulations should be interpreted. Examples: Guidelines on Risk Management. Guidelines on the ALARP principle Guidelines The examples of regulations and guidelines can be found on the DWEA website ( Danish law can be found in Danish on the Danish Legal Information System ( Orange: Mandatory. Yellow: Non-mandatory.

13 The purpose of the Offshore Safety Act To promote a high level of health and safety offshore, which is consistent with society's technical and social development To create a framework within which the companies themselves can solve safety and health issues offshore Corresponds to the purpose of the Working Environment Act from 1977 Danish tradition for a high level of health and safety at work and welfare Framework Act goal-setting broad provisions (performance based) with authorizations to the minister to issue executive orders

14 Main Contents of the Offshore Safety Act Risk Management according to the ALARP principle Risks of major accidents Occupational health and safety risks Risks off duty on the facility H & S Management System (ISO/OHSAS standards or equivalent) Independent Verification Scheme (Wells; safety and environmental critical elements and certain other safety issues) Use of recognized standards (ISO, EN, API etc) Health & Safety Document ( Health & Safety Case ) to document and demonstrate compliance Authority intervention (approvals, permits, notifications, oversight)

15 Pro-Cons: Performance Based vs Prescriptive -1 Prescriptive ( check list regulations ) Easy to comply with Easy to oversee and enforce by regulators Responsibility with the regulator for a high health and safety level Quickly outdated 15

16 Pro-Cons: Performance-based vs Prescriptive - 2 Performance-based ( goal-setting ) Responsibility with the duty holder for for a high health and safety level Not vulnerable to technical development Duty Holder can choose methods Not easy to comply with by Duty Holder Requires judgment from regulator in enforcement and oversight Requires an extended degree of competences by the regulator. 16

17 Examples of Regulatory Approaches Micro Macro Means Means Based Notification, obtain approvals and permits Two independent escape routes from an area HS Management system to follow certain standards Totally Enclosed Life Boats on facilities Management Based Health and Safety Document HS Management System Emergency Response Plan Verification Schemes Ends Performance Based Risks must be reduced to a level as low as reasonably practicable (ALARP). Noise reduced to a least 83 db(a) Number and location of life saving appliances Meta Performance Compensation for industrial accidents and diseases Liability for pollution 17

18 Compliance Enforcement and Oversight Applications for approvals and permits Assessment of Health and Safety Documents Assessment of verification reports (e.g. well activities) Facility Operations Inspections offshore and onshore Audit of HS Management systems Evaluation of emergency response plans Review of other documentation 18

19 Competences by DWEA Risk assessment Management systems General occupational health and safety Public administration Technical skills like process equipment, electrical equipment, lifting equipment, etc. Drilling and other well operations Maritime issues (external from Danish Maritime Authority) 19

20 Funding All administration of regulations are reimbursed by duty holder Expenses like travel, accommodation, meals Time spent, approx. DKK 1,000/hr. (approx. USD 140/hr.) Drafting of regulations and guidance of the public and other non-administrative issues are funded by the state budget. 20

21 Thanks for your attention 21