The Arctic Council Kiruna Ministerial 2013Oil and Gas Outcomes

Arctic Energy Summit Akureyri - 8 October 2013

Photo Credit: Steve RobertsCCGC Louis S St. Laurent breaks ice for USCGC Healy 2009 Beaufort Sea

Prof. Dr. Betsy BakerVermont Law School,

Institute for Energy & the Environment

IBCAO International IBCAO International Bathymetric Chart of Bathymetric Chart of

the Arctic Oceanthe Arctic Ocean

I. Arctic Council I. Arctic Council Kiruna Kiruna Declaration Declaration

II. EPPR Working II. EPPR Working GroupGroup

III. PAME III. PAME Working GroupWorking Group

IV. ProspectsIV. Prospectsfor International for International Standards or Standards or HarmonizationHarmonization

NOT covered: Arctic Oil Spill Preparedness and Response Agreement.

Negotiated under AC auspices, but not an AC Agreement

Arctic Council Ministers Decide to

•Establish a Task Force to develop an Arctic Council action plan on oil pollution prevention

I. KIRUNA DECLARATION MAY 2013

Task force will present outcomes at next Ministerial (2015).

Tarsuit Island, Beaufort Sea, CanadaPhoto Credit: http://www.icetech14.org/gallery/conf_icegallery/005.jpg

Photo Credit: Betsy Baker

• 2004 PAME Arctic Marine Strategic Plan (being updated for 2014)

• 2004 PAME/EPPR Guidelines for Transfer of Refined Oil and Oil Products in Arctic Waters (TROOP)

• 2007 AMAP Oil and Gas Assessment

• 1997, 2002 and 2009 Arctic Council’s Arctic Offshore Oil and Gas Guidelines

• 2009 PAME Arctic Marine Shipping Assessment

• 2011 EPPR Behaviour of Oil and other Hazardous and Noxious Substances on Arctic Waters (BoHaSa)

• 2011 PAME Arctic Ocean Review Phase I Report

• 2013 EPPR Operational Guidelines for the Agreement on Cooperation on Marine Oil Pollution Preparedness and Response in the Arctic

• 2013 Arctic Ocean Review Final Report

• Ongoing - PAME Management Regulation & Enforcement Web-based Information Resource . Photo Credit: Neil Tinmouth

PAME Offshore Safety Reports at the Kiruna Ministerial 2013

Two continuing PAME projects

– 2012 KEFLAVIK HSE Management Systems Workshop Report http://www.pame.is/2012-hse-workshop

– 2012 HALIFAX Safety Culture Workshop Reporthttp://www.pame.is/safety-culture-2012

– --FINAL HSE REPORT is scheduled for late in 2013--Photo Credit: Betsy Baker

Other PAME Reports at the Kiruna Ministeral

• Arctic Ocean Review (AOR) Final Report 2013Reviews all relevant international agreements for eight sectors:

Indigenous Peoples and Cultures, Shipping, Marine Living Resources, Offshore Oil and Gas, Marine Pollution, Ecosystem Based ManagementArctic Science.

AOR Oil and Gas Recommendations–Standardize – through existing programs (e.g. ISO, Barents 2020)–Harmonize – in discrete areas, e.g. environmental monitoring–Engage - Industry and Regulators, e.g. through existing groups (OGP & IADC are observers at Arctic Council)–Interact – with relevant treaty bodies – e.g. information exchange on monitoring, common protocols, etc.

Prirazlomnaya PlatformPhoto Credit: Gazpromhttp://www.gazprom.com/f/posts/64/600705/dsc_0236.jpg

Photo Credit: Betsy Baker

CAFF + oil and gas at Kiruna Ministerial

• Arctic Biodiversity Assessment (interact with Convention on Biological Diversity)

• “Mainstream Biodiversity”– In Arctic Council Work– Encourage it in international standards,

agreements, etc.– Including for offshore oil and gas

• Support development of prevention and clean up measures for spills so they are ready to go.

Kulluk Drilling Rig Grounded off of Alaska 2012Photo Credit: National Public Radio http://media.npr.org/assets/img/2013/01/07/kulluk_wide-49bdb1df67124cb675bb01aa9181eb4796c55b60-s6-c30.jpg

EPPR at the Kiruna Ministerial

I. RECOMMENDED PRACTICES FOR ARCTIC OIL SPILL PREVENTION, MAY 2013 EPPR REPORT

Best practice = “effective prevention managementstrategies aimed at completely eliminating the potential for the accidental release of pollutants into the marine environment.”

II. EPPR NON-BINDING OPERATIONAL GUIDELINES Appendix IV to 2013 Oil Spill Agreement

*EPPR Summary Report and Recommendations on the prevention of Marine Oil Pollution in the Arctic, ISBN: 978-82-7971-0077-6, Author: Brianne Rossi, Canada

EPPR at the Kiruna MinisterialI. RECOMMENDED PRACTICES FOR ARCTIC OIL SPILL PREVENTION, MAY 2013 EPPR REPORT

• Catalog all applicable oil and gas standards for Arctic activities (e.g. facilities management, ice management, escape route and drills, training, logistics, security) and highlight differences*

• Facilitate oil spill prevention research and regulatory cooperation

• Establish a mechanism for regulators to share informatione.g. best practices, processes, regulatory approaches as

well as compliance and operational information (such as near-miss data).

• Possibly leading to joint data base for Arctic Ocean coastal state regulators

Other calls for Standardization

• U.S. Presidential Commission on the Deepwater Horizon: call for “global best practices”

• Regional or “Neighborhood” Standardization:– If we have a Barents 2020, why not a Beaufort 2025 and a Chukchi 2025?– US/Mexico – similar project in the Gulf of Mexico

Photo Credit: NASA The Deepwater Horizon Spill from space

Standardize: e.g. Winterization?CANADA•Canada Oil and Gas Installation Regulations devote sec. 14 to “Winterization”, e.g.

UNITED STATES •Currently, U.S. Law has very few Arctic-Specific Standards, BUT is developing Alaska specific standards

RUSSIA•Several specific winterization requirements

NORWAY•No specific “winterization requirements, however:

DK/GREENLAND•No specific winterization requirements, however:

- Guarantee Key functions, Production Safety, Emergency Shutdown, Lifesaving, Operating Ballast (MODU) will operate in low temperatures

- Systems Fluids, e.g. freshwater, hydraulic, firefighting, pneumatic, other, won’t freeze

Under the COGDP regulations the required Safety Plan shall set out e.g.

- Measures to protect installation from pack sea ice, drifting icebergs or land- fast sea ice. including systems for ice detection, surveillance

CURRENTLY-Must show MODU is capable of performing in frontier area;-Must consider ice scour when locating operations; -Subsea BOP required in well cellar in ice scour areas; -But Use of Polar Class vessels not mandatory

COMING SOONRegulator is preparing Arctic Specific Standards (Draft expected 2013)

Pew Charitable Trusts proposals are most detailed, e.g.•Use of higher-quality low-temperature steel for Arctic facility design. •Other

The Continental Shelf Safety Rules contain a chapter on the safety of design and operation of ice-resistant platforms:-Mandatory controlling devices for ice monitoring-Mandatory equipment for ice removal-Mandatory maintenance during the ice free period-Pipelines must be designed with moving ice in mind-Prevention of oil spills on ice surface-Specific requirements for navigation in ice waters

Risk-based overarching provisions

This level of specificity may not be appropriate

No specific “winterization requirements,” however:

Such requirements may be imposed by a license or approval letter

Requirement to use best international standards

Takk!

Dr. Betsy BakerProfessor

Vermont Law School Institute for Energy & the Environment

bbaker@vermontlaw.edu

Photo Credit: Steve RobertsCCGC Louis S St. Laurent breaks ice for USCGC Healy 2009 Beaufort Sea

Richness?Resilience?Responsibility?