onshore oil and gas: environmental regulation and the consenting process ukela seminar 23 september...
TRANSCRIPT
Onshore oil and gas: environmental regulation and the consenting process
UKELA Seminar23 September 2015
An established onshore industry
Dales Water Services Ltd
Source: Silson Communications Ltd.
AONB and SSSI
Part of drilling operations at Wytch Farm, Europe’s largest onshore oil field
4th most expensive real estate in the world (reputedly)
We regulate other complex industries
3
OGAChecks all permits and permissions are in placeIssues consents – well consent, flare consent, extended well tests, and consent for hydraulic fracturing.
Oil & Gas Authorityawards exclusive Licence after open competition
Oil & Gas Well
Regulatory process – Overview (England)
Mineral Planning Authority
- Environmental Impact Assessment
- Planning permission
Traffic, noise, visual intrusion, nature conservation…
HSE • Scrutiny before
operations• Well design &
construction• Independent
verification• Safety of drilling
operations
EA - Abstraction licences - Environmental permits• Mining Waste• Groundwater• Radioactive Substances• Installations
Statutory consultee
EA/HSEMoU
Environmental permits and controlsControls Risk
Abstraction license• Issued under the Water Resources Act.
Over abstraction of water
Section 199 Notice• Issued under the Water Resources Act.• Method statement on well design and construction
Proper use of water; groundwater pollution; well integrity.
Groundwater Permit• Hydrogeological risk assessment• Chemical disclosure of drilling muds and fracturing additives
Groundwater pollution
Extractive Waste Permit (Mining Waste)• Waste management plan including used and residual hydraulic fracturing fluid
Management of extractive wastes
Radioactive Substances Permit • Radiological assessment of Naturalling Occurring Radioactive Material (NORM)
Management of NORM wastes
Installations Permit (Industrial Emissions Directive) • Flaring of waste gases over 10 tonnes per day
Waste gases and air quality risks
Water Discharge Activity • Required if surface water run-off becomes polluted
Surface spills
Permitting pre application
Permit application preparation
Bespoke Permit Determination:
· Mining waste · Installation· Groundwater · Water discharge · Radioactive
Substance Regulation 13 weeks
Water Abstraction licence 13 weeks
InvestigationPrepare consent to
investigate applicationprepare
application
Determine consent to investigate
Flood defence consent 8 Weeks
Register as hazardous waste
producer
Applicant led task
Environment Agency led task
Prepare application for flood defence consent
Time
Add
ition
al ti
me
if H
igh
Pub
lic In
tere
st
S199 - Prepare WR11 and method statement
4 Weeks
S199 conservation notice determination.
8 Week
Standard rules permit
4 Weeks
key
Environmental Permitting Process
Regulatory Steps and Public Consultation Stages in Shale Exploration
OGA issues Petroleum License to operator
21 days pre-planning notice given to landowners and
parishes
Environmental Risk Assessment conducted by
operator
Operator holds Pre-application consultation with the Local Planning Authority stakeholders, the local
residents and Environment Agency
Operator makes planning application to Local Planning Authority
Local Planning Authority advertises planning application and consults with stakeholders
and local residents
Local Planning Authority decides whether or not to
provide planning permission
Local Planning Authority makes scoping decision if
Environmental Impact Assessment to be requested and conducted by operator
Operator applies for environmental permits from
Environment Agency
Environment Agency decides whether or not to
grant permits
Planning conditions set by Local Planning Authority
are met by the operator
Health and Safety Executive is notified
of the well design
PublicPublic
Public
Public
Public
Public
OGA Strategic Environmental
Assessment (SEA) and Public
Consultation on Licencing
Public
Operator starts operations (to drill, frack, test or produce)
according to permits and consents
OGA and Regulators monitor operations and frac-induced seismicity according to permits and
consents
DECC gives consent, to drill and/or frac with
Hydraulic Fracture Plan
OGA launch Licence Round
and Assess Applications
OGA publish consultation on Habitats Assessment (HRA) for each block
proposed for awardPublic
Public
Credit: Sciencewise
A changing regulatory landscapeInfrastructure Act
Introduces a new consent for hydraulic fracturing
Reinforces existing environmental, planning and health and safety safeguards
New definitions for protected areas
Water companies as statutory consultees
DCLG announcementsPermitted development rights
Underperformance and use of SoS call-in powers
Shale Task Force – a single regulator?EU – from Recommendation to Directive?
Our approachWe understand and have assessed the environmental risks from onshore oil and gasWe have the right regulatory controls in placeWe will continue to work with other regulators to ensure the adequacy of the regulatory regimeWe will consult and engage with local communitiesWe will streamline the process, whilst maintaining high standards of environmental protectionWe will keep this under review, in light of any legislative changes and as we move into the production phase
Additional slides
DECC Roadmap
Risks from surface operations
Risks from poor well design
Risks from hydraulic fracturing