NOPSEMA Regulatory Advice

EP Guidance Note

APPEA Workshop14 August 2012

EP Guidance Note Project: Objectives

• Develop useful, understandable and practical guidance

• Provide clear descriptions of NOPSEMA’s interpretation of regulatory requirements for environment plan (EP) content (administrative processes dealt with separately)

• Consistent with OPGGS(E) Regulations, with a reasonable and justifiable basis

• Consistent with objective-based regime

– Focus on ‘what needs to be demonstrated’ not ‘how to demonstrate’

• Avoid regulatory “creep” – expansion of requirements beyond Regulations

EP Guidance Note Project: Scope and Priorities• Key topic areas noted from Perth workshop

(March 2012):– Line-of-sight to Regulations– ALARP– Consultation– Risk assessment processes– Performance Objectives, Standards and Measurement

Criteria

EP Guidance Note Project: Development

• Following EP Guidance workshop, NOPSEMA reviewed:– Objectives of guidance note project– Feedback from operators workshop– Guidance note structure and alignment with Regulations– Review of relevant standards

• Outcomes:– Restructure guidance notes to emphasise process and

content requirements of Regulations– Maintain focus on risk management, ALARP, Performance

Objectives, Standards, Consultation, etc.

Approach:

• EP Guidance Notes - adopt a system-based model as basis

• Structured on process elements

• All priority issues/topics raised will be covered

Process Model Evolution

System-based interpretation of Regulations

AS/NZS ISO 31000

EP Advice Structure

OPGGS ActOPGGS Act

OPGGS (Environment) OPGGS (Environment) RegulationsRegulations

PolicyPolicy

Guidelines Guidelines and Guidance and Guidance

NotesNotesOtherOtherAdviceAdvice

Environmental Management Law

Advice

EP Advice: Forward Plan1. EP Guidance Note: Overview

– In preparation (this presentation)

2. EP Guidance Notes: Detailed processes and elements

– Prioritised development of a range of guidance documents providing detailed explanation of individual Regulation processes and elements

– Due for publication as soon available (up to 6 months for full series)

3. Other Advice:– Specific technical notes on priority topics e.g. ALARP,

OSCP, OSMP

EP Regulation basis:• ESD-based• Performance-based• Risk-based• Objective-based (not Prescription or Self-regulation)• System-based, and consistent with recognised

standards and systems (e.g. ISO AS/NZS)

Reg 3: Object of RegulationsThe object of these Regulations is to ensure that any petroleum activity or greenhouse gas storage activity carried out in an offshore area is:a) carried out in a manner consistent with the principles of ecologically sustainable development; andb) carried out in accordance with an environmental plan that has:

i. appropriate environmental performance objectives and standards; andii. measurement criteria for determining whether the objectives and standards have been met.

“The main objectives are to ensure that offshore petroleum exploration and development operations are performed in a way that is consistent with the principles of ecologically sustainable development, reduces environmental risks and effects to as low as reasonably practicable and is acceptable.“

Petroleum (Submerged Lands) (Management of Environment) Regulations 1999 No. 228 EXPLANATORY STATEMENT

EP Guidance Note: OverviewCore Objectives & Concepts

EP Regulation: System-basis• Explanatory Statements are clear, e.g. Select Legislative

Instrument 2005 No. 318 P(SL)A 1967 P(SL)(Management of Environment) Amendment Regulations 2005 (No. 1):– “ensure consistency with the Australian Standard for

environmental management systems (AS/NZS ISO 14001)”

Environmental Environmental PolicyPolicy

PlanningPlanningImplementation Implementation and operationand operation

CheckingChecking

Management Management reviewreview

Continual Continual improvementimprovement

AS/NZS ISO 14001

EP Regulation: Key principles• NOPSEMA must accept the environment plan if there are reasonable

grounds for believing that the environment plan meets the criteria outlined in Regulation 11(1), i.e.:– The Operator provides a reasonable basis for statements made in regard to

the requirements, to clearly outline the evidence for how the requirements have been met and to document this in the EP.

• The environment plan should be appropriate to the nature and scale of the activity:– All aspects of the environment plan should be appropriate to the nature and

scale of the activity or proposed use and are relative to the size, complexity and environmental impact and risk level of an activity

– Applies to overall EP and also to its components e.g. for a particular activity, those events with a high potential environmental impact and risk level should receive more attention in an environment plan than those with a low environmental impact and risk level

EP Regulation: Acceptance and Compliance

• Planning Phase: Acceptance of the activity’s EP takes place and has two parts:– Activity Acceptance (“Snapshot”): the EP must demonstrate that it meets the

requirements of the Regulations and how the activity’s environmental impacts and risks are assessed and managed. This demonstration is submitted for acceptance prior to the activity commencing

– Strategy Acceptance (“Ongoing”): the EP must demonstrate that there is a specific ongoing system in place to ensure the activity will be in compliance when it is conducted - the Implementation Strategy, which is a systematic approach that demonstrates EP objectives and Regulations will be met when the activity is conducted

• Operations Phase: Monitoring of compliance takes place for the activity. Compliance includes: reporting by the operator to the Regulator; submission of proposed revisions, monitoring by the Regulator; and enforcement by the Regulator.

What are the core processes and elements embodied in the Regulations?

DESCRIBE

DETAIL

EVALUATE

DEMONSTRATE

PERFORM

MONITOR

CONSULT

PLAN TO IMPLEMENT

DESCRIBE 13(1)(2)

DETAIL 13(3a)

PERFORM 11(1d) 13(4)MONITOR 11 (1e)

DEMONSTRATE 11(1b,c)EVALUATE 13 (3b)

CONSULT 11 (1f)

PROCESS

ENVIRONMENT PLAN PROCESS

ALARPACCEPTABLE

IMPACTS AND RISKS

ACTIVITYENVIRONMENTREQUIREMENTS

OBJECTIVESSTANDARDS

IMPACTS AND RISKS

REPORTING

ELEMENT (REGS)

>MEASUREMENT CRITERIA

CONSULTATION

> CONTROLS

ACCEPTABLE LEVEL CRITERIA

GOALSELEMENT (INTERPRETED)

IMPLEMENTATION STRATEGYPLAN TO IMPLEMENT

AS/NZS ISO 31000:2009

DESCRIBE

DETAIL

EVALUATE & DEMONSTRATE

EVALUATE & DEMONSTRATE

CONSULT PERFORM MONITOR

DETAIL

EP Process

EP Process

Mon

itorin

g an

dre

view

Com

mun

icat

ion

and

cons

ulta

tion

Risk identification and analysis

Risk evaluation and treatment

Establishing the context

Environment Plan Content

Mon

itorin

g an

drev

iew

Com

mun

icat

ion

and c

onsu

ltatio

n

Risk identification & analysis

Risk evaluation and treatment

Establishing the context

Activity assessment

Environmental Environmental PolicyPolicy

PlanningPlanning

Implementation Implementation and operationand operation

CheckingChecking

Management Management reviewreview

Continual Continual improvementimprovement

Strategy (Plan for implementation)

AS/NZS ISO 14001

From Planning to Operational phase

Environment Plan Implementation

Planning Phase Operational Phase

Acceptance Monitor & Enforce Compliance

PROCESS ELEMENT

Development of EP Core Concepts & Guidance

ACTIVITYDESCRIBE

OBJECTIVE:Provide information important to the context of the EP by identifying all the activities at an appropriate level and particularly those activities relevant to impacts and risks.CORE CONCEPTS• The operator must determine if an activity meets the definition of an activity in the Regulation and therefore if an EP is required.• An activity is a petroleum activity as defined in the Regulations and includes the proposed activity and any stages of that activity.• The EP’s description of the activity should be appropriate for the nature and scale of the activity.• The description of the activity provides general and outline details of “where, what, how and when” for an activity and additional

information relevant to impacts and risks.• A comprehensive description of activity allows a description of the affected environment and for impacts and risks to be detailed

and evaluated.

CONSIDERATIONS• The description of the activity is a general section at the beginning of an EP that helps to set the context and allows impact and risk

identification and evaluation. • Only activities that are described in the EP are assessed and accepted.• If an activity, or component of an activity, that is relevant to impacts and risks is not described in an EP, then it is not part of the EP

acceptance.• The activity description could be further detailed as sub-activities or aspects which are the basis for impact and risk identification

and evaluation.

EXAMPLE:

REGULATION4(1) (definition of activity); 5 (activity and any stage of an activity); 6 (must have EP in force);11(1)(a) is appropriate for the nature and scale of the activity or proposed use13(1) (a-d) The environment plan must contain a comprehensive description of the

activity including the following …GUIDANCE:

Implementation strategy basis• Implementation Strategy is system level

– System requirements 14(1-3)– Prescribed requirements 14(4-9)

• Specific system applied to specific activity:– to ensure environmental performance objectives and

standards in the EP are met– impacts and risks are continuously reduced to ALARP

• Not necessarily expected for each individual impact and risk control

• Additional EP component for operational implementation – not an activity assessment

Next Steps• Workshop 30 August 2012 - Perth• Focus

– Environment Regulations Review– Concepts for Guidance Note Development

• Acceptable Level• ALARP• Performance Objectives• Performance Standards• Measurement Criteria