Brussels, 10/06/2013 (Agence Europe) - The Council of the European Union has adopted the directive that from now on will regulate oil and gas offshore drilling operations in the EU. Operators will have to prove their ability to cover damages.
On Monday 10 June, the Council adopted a law tabled by the European Commission at the end of 2011 to strengthen - in the light of the Deepwater Horizon accident in the Gulf of Mexico in spring 2010 - the legislative framework that governs offshore oil and gas drilling and exploitation in EU waters. The Parliament approved the agreement at the end of May that was sealed with the Council (see EUROPE 10850). The new regulatory framework - which will be applied to existing and future installations - establishes minimum conditions for safe exploration and exploitation, and improves the response mechanisms in the event of a major accident.
The new framework obliges operators to ensure that they have enough human, physical and financial resources to minimise and correct the impact of a major accident. A licence will only be granted to an operator if it can give the financial guarantee that it can assume the responsibilities linked to its operations.
Before beginning their operations, drilling companies will submit a special report to national authorities describing the drilling installation, possible major dangers and special arrangements to protect workers. They will also have to present an internal emergency response plan for each installation, describing in detail the equipment and available resources, the action to be taken in the event of an accident, and measures to limit the risks and alert the authorities as early as possible. Alongside this, member states will prepare external emergency response plans, covering all offshore drilling operations under their jurisdiction and stating the role and financial obligations of the operators and the role of the relevant authorities and emergency response teams.
The directive includes arrangements ensuring the independence and objectivity of the relevant authorities. In order to avoid conflicts of interest, the member states will ensure a clear separation between regulatory functions relating to offshore safety and the environment, and regulatory functions relating to economic development - including licensing and revenue management. The new directive also provides rules for transparency and sharing of information, cooperation between member states, emergency response plans and transboundary emergency preparedness and response.
The directive is addressed to all member states. Landlocked countries and member states with offshore waters that have no offshore activities will only need to apply a limited number of its provisions. The other member states will have two years to transpose the directive into national law. A landlocked country will have to transpose the directive as soon as a drilling company registers there to conduct operations outside the EU.
The directive will come into force 20 days after its publication in the Official Journal. The Commission will have to give the European Parliament and Council a report assessing implementation of the directive three years at the latest after the end of the transition period. (EH/transl.fl)