Brussels, 21/02/2013 (Agence Europe) - The Council and European Parliament could reach an agreement on the directive called to replace the current patchwork of laws governing offshore oil and gas drilling operations in the 27 member states of the EU to strengthen their safety. The Greens believe that the text is insufficient.
Three trilogues will have been needed at the Parliament and Council to seal an agreement on the draft text presented by the European Commission at the end of October 2011 to strengthen - in the light of the Deepwater Horizon accident in the Gulf of Mexico in spring 2010 - the legislative framework that governs oil and gas drilling and exploitation operations in EU waters. The negotiations between the members of the Parliament's energy committee, led by Ivo Belet (EPP, Belgium) and the Irish Presidency of the Council (which has continued the work that had advanced well under the previous Cypriot Presidency in the second half of 2012) finally reached a partial agreement on Thursday 21 February, which COREPER will first have to validate formally before it is put to a vote in the parliamentary committee - probably in March - then to a vote in plenary - possibly in May. Under the terms of this agreement, the companies operating offshore oil and gas platforms will have to submit reports on the major dangers and emergency intervention plans before obtaining a licence to drill. The licences will be granted only if a company can prove that it has enough money to repair any environmental damage (see EUROPE 10707).
“Europe has learned its lessons from the Deepwater Horizon catastrophe and wants to reduce the risks of drilling at sea to a minimum. Especially now that several member states with little experience are exploring new drilling operations at sea, there is an urgent need for a strong legislative framework. The previous guideline is nearly 20 years old and focuses insufficiently on safety”, Belet states. “This agreement sets a European framework which will help us prevent accidents in our seas and ensure a rapid intervention that will limit potential damage”, added the chair of the energy committee, Amalia Sartori (EPP, Italy).
The new legislative framework - the Parliament and Council have opted for a directive (which sets objectives but leaves member states the freedom to choose the means of reaching them) rather than a regulation (which would be binding on all member states) to avoid a reformulation of equivalent already existing national laws - will oblige operators to ensure that they have sufficient human, physical and financial capacity to minimise and correct the impact of a major accident. No licence would be granted unless the applicant has provided evidence that adequate financial provision has been or will be made to cover liabilities potentially deriving from offshore oil and gas operations. When assessing applicants' technical and financial capability, due account must be taken of their ability, including any financial security, to cover liabilities.
Before beginning operations, drilling companies should submit a special report to national authorities describing the drilling installation, potential major hazards and special arrangements to protect workers. Operators would be required to prepare a document setting out their “corporate major accident prevention policy” which would guarantee an open reporting culture for incidents, consultation with elected safety representatives and protection for whistleblowers. Operators should also present an internal emergency plan, giving a full description of the equipment and resources available, action to be taken in the event of an accident and all arrangements made to limit risks and give the authorities early warning.
At the same time, member states would have to prepare external emergency response plans covering all offshore drilling installations within their jurisdiction. These plans would specify the role and financial obligations of drilling companies as well as the roles of relevant authorities and emergency response teams. National capitals should also consult the local population before exploratory drilling is undertaken.
Member states with offshore waters that have no offshore oil and gas operations under their jurisdiction, and landlocked countries with companies registered in their territories, would need to apply only a limited number of this directive's provisions. Member states would have two years to transpose the directive into their national bodies of law.
A greater role is given to the European Maritime Safety Agency (EMSA), whose expertise should be used if an oil or gas leak should occur, and which should evaluate the emergency intervention plans.
Eva Lichtenberger of Austria, speaking for the Greens Group, said the agreement reached on Thursday is “a missed opportunity for equipping the EU with robust rules to deal with the risks of offshore drilling”. She added: “The draft legislation agreed today fails to address the current gaps in EU rules on offshore exploration, notably as regards liability for accidents and independent safety assessments of installations. It also fails to call for a moratorium on drilling in sensitive or extreme environments (like the Arctic)”. (EH/transl.fl/jl)