Offshore Health and Safety The Practical and Legal Issues

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1 Offshore Health and Safety The Practical and Legal Issues 28 October /10/2013 1

2 Programme Welcome and introduction Martin Peter Næsby, Oil Gas Denmark, and Bo Sandroos, Sandroos Advokatfirma Offshore Health & Safety Why, What and How Bo Sandroos, Sandroos Advokatfirma Break Offshore Health & Safety Beyond Legal Requirements Finn P. Brodersen, DONG E&P, chairman of Oil Gas Denmark s HSE Committee Workshop close, discussion and networking All 28/10/2013 2

3 Offshore Health and Safety Why, What and How Bo Sandroos, attorney 28 October /10/2013 3

4 Overview of presentation Why What How The importance of health and safety Overview of rules and regulations Implementation measures The case of compliance Costs of non-compliance The history The legal hierarchy Basic provisions Examples: HSC, PPE EU developments Guidelines from the DEA The obligations of various groups Internal organisation in the company Summing up 28/10/2013 4

5 Offshore Health and Safety 1. Why 28/10/2013 5

6 The case of compliance Safeguarding the health and safety of staff and all Ethical argument License to operate Part of Scorecard of host governments Part of measure of operators when tendering/contracting Operational and financial benefits Talent attraction Optimised processes Operational integrity 28/10/2013 6

7 Costs of non-compliance an example The contract: Team: 4-man contractor team sent to work offshore Job: 14 days 12 hour shifts Worker s hourly rate: DKK overhead Total value of the job = DKK Lost-time accident. 1 person sent onshore, incapable to work. 3 days before replacement arrives Costs: Heli-transport: DKK 25,000 Loss of productivity for 3 days DKK 27,000 (1 person, 25%) Costs of ramp-up of productivity DKK 27,000 Total loss DKK 79,000 16% of contract value Not including sick pay, social benefits costs etc., and other 28/10/2013 7

8 Offshore Health and Safety 2. What 28/10/2013 8

9 Authority measures / tools Guidelines Legislation Control Sanctions 28/10/2013 9

10 The history of H&S on DKCS Pre-1981: health and safety legislation from onshore made applicable to the offhore area Working Environment Act Administered by Danish Working Environment Authority 1976 the Danish Energy Agency established Havanlægsloven the Offshore Installation Act System basically unaltered until late /10/

11 The legislative hierarchy Act (lov) Offshore Safety Act Subsoil Act Act on the Continental Shelf EU Directives and Regulations Order (bekendtgørelse) Guidelines (vejledninger) Hard law Soft law 28/10/

12 The hierarchy - Offshore Safety Act Act No. 510 of 13 May 2013 on Safety, etc. on Offshore Installations for Exploration, Extraction and Transport of Hydrocarbons (Offshore Safety Act). Replaces former Offshore Installation Act ( Havanlægsloven 1981) Covers both design/construction, major hazards and occupational health and safety Relatively detailed regulations, supported by Orders ( bekendtgørelser ) 28/10/

13 Overview of the OSA Design approval, OSA 27 fixed installations Operational permit, OSA 28 both fixed and mobile (rigs) For both fixed and mobile: Health and safety case HSC, or SSR sikkerheds- og sundhedsredegørelse Updated in case of material changes to design or operating conditions Health and safety risks as low as reasonably practicable (ALARP) To be prepared by the operator or the operating company ( driftsansvarlig virksomhed ) 28/10/

14 What does the SSR contain, as a minimum? Offshore Safety Act Detailed description of the facility and its operating conditions 2. Detailed description of the health and safety management system 3. Risk assessment of major hazards and occupational health hazards 4. Documentation that risks identified are as low as reasonably practicable (ALARP) 5. Documentation that evacuation to a safe place can be carried out effectively and in a controlled manner under critical circumstances 28/10/

15 The hierarchy - Orders Act (lov) Order (bekendtgørelse) 1. Registration and reporting of injuries (2013) 2. Use of products and materials (2013) 3. Portable pressured equipment (2013) 4. Construction, design and equipment fixed install. (2013) 5. Mobile offshore facilities (2013) 6. Preparedness on offshore facilities (2012) 7. DEA s tasks and responsibilities (2012) 8. Extension of area of application of OSA (2011) 9. EU critical infrastructure (EPCIP) (2011) 10.Offshore working time (2010) 11.Duties of producers and importers etc. (2010) 12.Eduaction of safety group members (2010) 13.Health and safety on mobile units (2010) 14.Health and safety on fixed installations (2010) 15.Offshore Safety Council (2010) 16.Operating fixed installations (2010) 17.Signs and signals (2010) 18.Articifial optic radiation (2010) 19.Health and safety management (2010) (HSC SSR) 20.Noise (2009) 21.Biological agents (2009) 22.Educational qualifications from third countries (2008) 23.Exchange of information on educational etc. (2008) 24.Ionising radiation (2008) 25.Personal protection equipment (PPE) (2008) 26.Monitors (2008) 27.Manual handling (2008) 28.Vibrations (2008) 29.Preparedness Committee (2007) 30.Cost compensation to DEA (2007) 31.Major accidents commission (2007) 32.Delegations to the Danish Maritime Agency (2006) 33.Energy Complaints Board (2006) 28/10/

16 An example personal protection equipment. The Act The Offshore Safety Act 53. The employer shall ensure that health and safety risks connected with the performance of the work are identified, assessed and reduced as much as reasonably practicable and that threshold limit values established in rules laid down pursuant to this Act are complied with The Minister for Transport and Energy can lay down more specific rules on the performance of the work and on medical examination of the employees before and during the employment and on examinations of occupational health, occupational hygiene or other health conditions. 28/10/

17 An example personal protection equipment. The Order Order No. 398 of 15 May 2008 as amended by Order No. 522 of 25 May 2011 on the use of personal protection equipment on offshore installations 3 Health and safety risk assessment ALARP. Refers to Order on health and safety management (2010) plan work so as to avoid the use of PPE 5 PPE shall be in accordance with Order on the safety requirements of PPE (onshore: Order No. 683 of 10 June 2013) 8 Employer only allow work requiring PPE if PPE is used 9 Employer ensure that PPE is used from start to end of work 10 Employer ensure that PPE shall 1) provide protection, 2) does not diminish the assistance of glasses, hearing aids etc., 3) fits the user, 4) is suitable under the conditions at the workplace, and 5) are based on ergonomics and the employee s health 11 Employer provide the PPE 28/10/

18 EU developments Directive 2013/30/EU of The European Parliament and of the Council of 12 June 2013 on safety of offshore oil and gas operations and amending Directive 2004/35/EC Member states to transpose by 18 July 2015 Focus on major hazards Safety critical systems Well operations Independent verifications Danish regulatory authorities are undertaking a review The Danish one-stop-shop (resources and safety) may come under pressure Many small to medium changes throughout the current rule set could be expected 28/10/

19 Offshore Health and Safety 3. How 28/10/

20 Guidelines from the DEA Guidelines (vejledninger) Registration and reporting of industrial accidents, Rev. 1 - September 2013 Management systems for health and safety, Rev. 0 - August 2013 Responsibilities and collaboration, Rev. 0 August 2013 Approvals and permits, Rev. 1 - December Health and safety cases - December Education and competences - December Safety educations for work offshore, Rev. 6 - August Working time rules in the offshore sector, Rev. 1 January 2011 Drilling - Exploration, 1988, Rev /10/

21 Focus on responsibilities and collaboration production and operations License holder Operator and operating company Where the operator is also the operating company ( driftsansvarlig virksomhed ) Contractor Operating company on drilling rig Contractor Contractor Contractor Contractor 28/10/

22 Focus on responsibilities and collaboration within the operating company Operating company Employer: OSA 10 Planning, supervision, awareness, ALARP, collaboration. Strict liability Manager Virksomhedsleder: as the employer + OSA 10.6 ensure employer fulfills duties. No strict liability Onshore Work leader Work leader Work leader Offshore Work leader Platform supervisor Anlægschef : overall responsibility for health and safety on the facility. OSA m. safety zone + where impact on ships, vessels etc. working Work leader OSA 12: ALARP within his/her functional area. Inform platform supervisor Other staff Other staff Work to secure the employer s obligations. Collaboration. Reporting 28/10/

23 Summing up the legal aspects Process: Start by looking at the Offshore Safety Act Review the applicable Order Review any applicable Guidelines Investigate if the matter has been discussed in the Offshore Safety Council Prepare an SOP for legal compliance in offshore health and safety management system and HSC The operator The contractor Health and safety is a management and line responsibility also the legal aspects 28/10/

24 Thank you Sandroos advokatfirma Kronprinsessegade 46E, DK-1306 Copenhagen K sandroos@sandroos.dk 28/10/

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