Government’s role in the regulation of offshore exploration activities

1. Government’s role in the regulation of offshore exploration activities Commonwealth waters Environmental Sustainability Unit – August 2010

2. Offshore jurisdictions Commonwealth legislation JOINT responsibility Source: Department of Industry Tourism and Resources

3. Jurisdiction • Commonwealth and State share administration of legislation • Designated Authority (DA) for the offshore area of NSW is the Minister for Mineral and Forest Resources. This role has been delegated to the Executive Director, Mineral Resources, I&I NSW.

4. Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGSA2006) • Regulates offshore petroleum projects in Australia • Framework for offshore oil and gas exploration and production activities in Commonwealth waters • The approval process for operations under this Act requires various Commonwealth/State agencies to be consulted to identify potential issues, conflicts and sensitivities

5. Environment Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009 Operators required to submit an Environment Plan Continuous improvement and best practice to achieve environmental protection Consistent with the principles of ecologically sustainable development Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) Regulates assessment and approval of proposed actions that may impact on matters of National Environmental Significance (NES) Require approval by the Commonwealth Minister for Environmental Protection Petroleum (Submerged Lands) (Management of Well Operations) Regulations 2004 Operators submit Well Operations Management Plan Down-hole activities designed and conducted in accord with good oil-field practise Risks identified and managed in accord with good oil-field practise and sound engineering principles

6. Environment Plan (EP) • Required for every proposed activity • Must demonstrate that environmental impacts and risks are ‘as low as reasonably practicable’ • Environmental performance objectives, standards and measures • Implementation strategy and monitoring, recording and reporting arrangements • Consultation with authorities, organisations etc • Complies with Act and Regulations • Guidelines for preparation (Comm. Dept RET) • Environmental Assessor reviews and determines acceptability of EP according to guidelines (ESU, I&I NSW)

7. Processing of an Environment Plan Commonwealth and state authorities 10 days Summary EP for public display

8. Management of well operations • Well Operations Management Plan (WOMP) • Required before the undertaking of a well activity • Specifies acceptable methods of conducting well operations in accordance with sound engineering principles and good oil-field practice • Well activities include drilling, completion, re-completion, operation, and abandonment/suspension • Review and acceptance undertaken by the DA (safety inspectors, I&I NSW)

9. In the event of a marine incident, both state and commonwealth agencies may have to respond Operational protocols followed (e.g. combat agency transfer) National Plan – integrated govt/industry framework for effective response Example > 3 nautical miles offshore: Aust. Maritime Safety Authority State waters: NSW Maritime Fingal Head ― Catherine Hill Bay: Newcastle Port Authority Regulatory response agentsMarine incident control and response is the responsibility of the operator Source: NSW State waters marine oil and chemical spill contingency plan 2008

10. Safety • Onus on the Operator to “take all reasonably practicable steps” to protect the health and safety of the facility and workforce. • National Offshore Petroleum Safety Authority (NOPSA) is the health and safety regulator for the Australian offshore petroleum industry. • The role of NOPSA is to administer offshore petroleum safety legislation. • Safety Case now required for every offshore facility