Brussels, 27/10/2011 (Agence Europe) - While it is impossible to eliminate all risk, everything possible has to be done to lower the still unacceptably high possibility of a major offshore accident in European waters to the absolute minimum, says the European Commission, with the spectre of the Deepwater Horizon accident in the Gulf of Mexico last year still fresh in the mind. The Commission, therefore, proposed a new law on Thursday 27 October which will ensure that offshore oil and gas production throughout the EU will respect the world's highest safety, health and environmental standards.
The proposed regulation sets out clear, harmonised rules that cover the whole lifecycle of all exploration and production activities from design to the final removal of an oil or gas installation. Independent verifiers, ex ante emergency planning, inspections, transparency and liability of oil and gas companies for environmental damage will be the key strands of the new approach.
Under the control of the national regulatory authorities, European companies will have to assess and further improve safety standards for offshore operations on a regular basis. This new approach will lead to a European risk assessment that upgrades continuously by taking into account new technology, new know-how and new risks. “Today, most oil and gas in Europe is produced offshore, often in harsh geographical and geological conditions. Given our growing energy demand, we will need all the oil and gas from beneath our seas. Securing best industry practices in all our offshore operations is an undisputable must”, stated Energy Commissioner Günther Oettinger. This improvement in safety is good news for the environment, but it is also good news for business “which will be able to deploy its operations in a predictable framework”, added his colleague at Environment Janez Potocnik.
Under the terms of the new regulation, the licensing authorities in the member states will have to ensure that only operators with sufficient technical and financial capacities necessary to control the safety of offshore activities and environmental protection are allowed to conduct explorations for, and produce oil and gas in EU waters.
The technical solutions presented by the operator will have to be to be verified by an independent third party prior to and periodically after the installation begins operating.
Before exploration or production begins, companies will be required to prepare a Major Hazard Report for their installation, containing a risk assessment and an emergency response plan. These reports are to be submitted to national authorities.
Independent national competent authorities responsible for the safety of installations will carry out inspections. If an operator does not meet the minimum standards for safety, environmental protection and emergency preparedness, the competent authority will take enforcement action and/or impose penalties; ultimately, the operator will have to stop drilling or production operations in the event of failure to comply.
Comparable information will be made available online to citizens about the standards of performance of the industry and the activities of the national competent authorities.
Companies will prepare emergency response plans based on their rig or platform risk assessments and keep resources at hand to be able to put them into operation when necessary. The plans will be periodically tested by the industry and national authorities.
Oil and gas companies will be fully liable for environmental damage caused to protected marine species and natural habitats. For damage to waters, the geographical zone will be extended to cover all EU marine waters including the exclusive economic zone (up to about 370 km from the coast) and the continental shelf where the coastal member state exercises jurisdiction. For water damage, the present EU legal framework for environmental liability is restricted to territorial waters (about 22 km offshore).
Offshore inspectors of member states will work together to ensure effective sharing of best practices and contribute to developing and improving safety standards.
In the view of MEP, Corinne Lepage (ALDE, France), the Commission proposal is far from perfect. She regrets that, in the new independent verification system, no role has been devolved to the European Maritime Safety Agency. She is critical, too, of “the lack of robust proposals on operator liability in the event of an accident” and is unhappy that there is nothing to force European Companies operating in non-EU waters to comply with European standards. She slams the passivity of the EU on “the massive pollution built up over decades in the Niger delta as a result of poor practice by the oil industry in Nigeria”. (AN/transl.rt)