Decommissioning of disused offshore- installations

1. Decommissioningofdisused offshore-installations Anne Ingeborg Reiestad Master student Universityof Bergen

2. The Petroleum ActivitiesAct • Section 5-1Decommissioning plan • The licensee shall submit a decommissioning plan to the Ministry before a licence according to Section 3-3 or Section 4-3 expires or is surrendered, or the use of a facility is terminated permanently. The plan shall contain proposals for continued production or shutdown of production and disposal of facilities. Such disposal may inter alia constitute further use in the petroleum activities, other uses, complete or part removal or abandonment. The plan shall contain the information and evaluations deemed necessary in order to make a decision according to Section 5-3. The Ministry may require further information and evaluations, alternatively require a new or amended plan.

3. The Petroleum ActivitiesAct • Section 5-3Decision relating to disposal • The Ministry shall make a decision relating to disposal and shall stipulate a time limit for implementation of the decision. In the evaluation on which the decision is based, emphasis shall, inter alia, be attached to technical, safety, environmental and economic aspects as well as to consideration for other users of the sea. The Ministry may stipulate specific conditions in connection with the decision.

4. International law • The Geneva Convention on the Continental Shelf, 1958 Article 5 (5) • Due notice must be given of the construction of any such installations, and permanent means for giving warning of their presence must be maintained. Any installations which are abandoned or disused must be entirely removed.

5. UNCLOS • Article 60 • «any installations or structures which are abandoned or disused shall be removed to ensure safety of navigation, taking into account any generally accepted international standards established in this regard by the competent international organisation. Such removal shall also have due regard to fishing, the protection of the environment and the rights and duties of other States. Appropriate publicity shall be given to the depth, position and dimensions of any installations or structures not entirely removed”

6. IMO Guidelines and Standards • 1. GENERAL REMOVAL REQUIREMENT • 1.1 Abandoned or disused offshore installations or structures on any continental shelf or in any exclusive economic zone are required to be removed, except where non-removal or partial removal is consistent with the following guidelines and standards.

7. 3. STANDARDS The following standards should be taken into account when a decision is made regarding the removal of an offshore installation or structure: 3.1 All abandoned or disused installations or structures standing in less than 75 m of water and weighing less than 4,000 tonnes in air, excluding the deck and superstructure, should be entirely removed. 3.2 All abandoned or disused installations or structures emplaced on the sea-bed on or after 1 January 1998, standing in less than 1 00 m of water and weighing less than 4,000 tonnes in air, excluding the deck and superstructure, should be entirely removed. 3.4 The coastal State may determine that the installation or structure may be left wholly or partially in place where: .1 an existing installation or structure, including one referred to in paragraphs 3.1 or 3.2, or a part thereof, will serve a new use if permitted to remain wholly or par­tially in place on the sea-bed (such as enhancement of a living resource); or .2 an existing installation or structure, other than one referred to in paragraphs 3.1 and 3.2, or part thereof, can be left there without causing unjustifiable inter­ference with other uses of the sea. 3.5 Notwithstanding the requirements of paragraphs 3.1 and 3.2, where entire removal is not technically feasible or would involve extreme cost, or an unacceptable risk to person­nel or the marine environment, the coastal State may determine that it need not be entirely removed. 3.6 Any abandoned or disused installation or structure, or part thereof, which projects above the surface of the sea should be adequately maintained to prevent structural failure. In cases of partial removal referred to in paragraphs 3.4.2 or 3.5, an unobstructed water column sufficient to ensure safety of navigation, but not less than 55 m, should be pro­vided above any partially removed installation or structure which does not project above the surface of the sea. 3.7 Installations or structures which no longer serve the primary purpose for which they were originally designed or installed and are located in approaches to or in straits used for international navigation or routes used for international navigation through archipelagic waters, in customary deep-draught sea lanes, or in, or immediately adjacent to, routeing systems which have been adopted by the Organization should be entirely removed and should not be subject to any exceptions. 3.8 The coastal State should ensure that the position, surveyed depth and dimensions of material from any installation or structure which has not been entirely removed from the sea-bed are indicated on nautical charts and that any remains are, where necessary, properly marked with aids to navigation. The coastal State should also ensure that advance notice of at least 120 days is issued to advise mariners and appropriate hydrographic ser­vices of the change in the status of the installation or structure. 3.9 Prior to giving consent to the partial removal of any installation or structure, the coastal State should satisfy itself that any remaining materials will remain on location on the sea-bed and not move under the influence of waves, tides, currents, storms or other foreseeable natural causes so as to cause a hazard to navigation.

8. The 1992 OSPAR Convention • ARTICLE 5 1. No disused offshore installation or disused offshore pipeline shall be dumped and no disused offshore installation shall be left wholly or partly in place in the maritime area without a permit issued by the competent authority of the relevant Contracting Party on a case-by-case basis. The Contracting Parties shall ensure that their authorities, when granting such permits, shall implement the relevant applicable decisions, recommendations and all other agreements adopted under the Convention. 2. No such permit shall be issued if the disused offshore installation or disused offshore pipeline contains substances which result or are likely to result in hazards to human health, harm to living resources and marine ecosystems, damage to amenities or interference with other legitimate uses of the sea. 3. Any Contracting Party which intends to take the decision to issue a permit for the dumping of a disused offshore installation or a disused offshore pipeline placed in the maritime area after 1st January 1998 shall, through the medium of the Commission, inform the other Contracting Parties of its reasons for accepting such dumping, in order to make consultation possible. 4. Each Contracting Party shall keep, and report to the Commission, records of the disused offshore installations and disused offshore pipelines dumped and of the disused offshore installations left in place in accordance with the provisions of this Article, and of the dates, places and methods of dumping

9. OSPAR Decision 3/98 Programmes and Measures 2. The dumping, and the leaving wholly or partly in place, of disused offshore installations within the maritime area is prohibited. 3. By way of derogation from paragraph 2, if the competent authority of the relevant Contracting Party is satisfied that an assessment in accordance with Annex 2 shows that there are significant reasons why an alternative disposal mentioned below is preferable to reuse or recycling or final disposal on land, it may issue a permit for a. all or part of the footings of a steel installation in a category listed in Annex 1, placed in the maritime area before 9 February 1999, to be left in place; b. a concrete installation in a category listed in Annex 1 or constituting a concrete anchor base, to be dumped or left wholly or partly in place; c. any other disused offshore installation to be dumped or left wholly or partly in place, when exceptional and unforeseen circumstances resulting from structural damage or deterioration, or from some other cause presenting equivalent difficulties, can be demonstrated.

10. The Petroleum ActivitiesAct • Section 5-1Decommissioning plan • The licensee shall submit a decommissioning plan to the Ministry before a licence according to Section 3-3 or Section 4-3 expires or is surrendered, or the use of a facility is terminated permanently. The plan shall contain proposals for continued production or shutdown of production and disposal of facilities. Such disposal may inter alia constitute further use in the petroleum activities, other uses, complete or part removal or abandonment. The plan shall contain the information and evaluations deemed necessary in order to make a decision according to Section 5-3. The Ministry may require further information and evaluations, alternatively require a new or amended plan. • Unless the Ministry consents to or decides otherwise, the decommissioning plan shall be submitted at the earliest five years, but at the latest two years prior to the time when the use of a facility is expected to be terminated permanently.

11. Regulations to the PetroleumActivitiesAct Section 44 Disposal part of the decommissioning plan The disposal part of the decommissioning plan shall contain a description of: a) The field history; b) The facility, including location, depth, type of material etc.; c) Deposit and production; d) The possibility for continued production; e) Relevant disposal alternatives; f) Other aspects of importance to the choice of disposal solution; g) Recommended disposal solution, including a time schedule for implementation of the disposal; h) Other information required pursuant to the safety regulations applicable at any time. For each of the relevant disposal alternatives the following shall be dealt with: a) Technical, safety related, environmental and economic aspects; b) Relationship to other users of the sea, including information and evaluations on the impact on fisheries and shipping.

12. Regulations to the PetroleumActivitiesAct Section 45 Impact assessment The impact assessment shall contain a description of the effect that each of the relevant disposal alternatives may have on commercial and the environmental aspects, and what can be done to reduce discharges and emissions in connection with disposal, and to remedy any damage or inconvenience. The impact assessment shall be prepared on the basis of an approved impact assessment programme, cf. fourth paragraph, and shall be adapted to the extent of the disposal. The impact assessment shall be submitted to the Ministry at the latest concurrently with the disposal part of the decommissioning plan. The Ministry may exempt from the requirement to impact assessment if the disposal is not expected to have significant effects on commercial and environmental aspects. Well in advance of submission of a decommissioning plan the licensee shall forward to the Ministry a proposed programme for the impact assessment. The proposal shall give a short account of the relevant disposal alternatives and, based on available knowledge, of envisaged effects to the environment and to other commercial activities. Furthermore the proposal shall clarify the need for documentation. The Ministry shall decide the impact assessment programme. In respect of disposals for which an impact assessment is also required pursuant to other legislation, a common impact assessment may be prepared.

13. The Petroleum ActivitiesAct • Section 5-3Decision relating to disposal • The Ministry shall make a decision relating to disposal and shall stipulate a time limit for implementation of the decision. In the evaluation on which the decision is based, emphasis shall, inter alia, be attached to technical, safety, environmental and economic aspects as well as to consideration for other users of the sea. The Ministry may stipulate specific conditions in connection with the decision.

14. OSPAR DECISION 3/98, ANNEX 3 : CONSULTATION PROCEDURE 1. A relevant Contracting Party which is considering whether to issue a permit under paragraph 3 of this Decision shall [send] to the Executive Secretary a notification containing: a. an assessment prepared in accordance with Annex 2 to this Decision[…] b. an explanation why the relevant Contracting Party considers that the requirements of paragraph 3 of this Decision may be satisfied; c. any further information necessary to enable other Contracting Parties to consider the impacts and practical availability of options for re-use, recycling and disposal. 2. The Executive Secretary shall immediately send copies of the notification to all Contracting Parties. 3. If a Contracting Party wishes to object to, or comment on, the issue of the permit, it shall inform the Contracting Party which is considering the issue of the […] and shall send a copy of the objection or comment to the Executive Secretary. Any objection shall explain why the Contracting Party which is objecting considers that the case put forward fails to satisfy the requirements of paragraph 3 of this Decision. That explanation shall be supported by scientific and technical arguments. The Executive Secretary shall circulate any objection or comment to the other Contracting Parties. 4. Contracting Parties shall seek to resolve by mutual consultations any objections made under the previous paragraph. As soon as possible after such consultations, […]the Contracting Party proposing to issue the permit shall inform the Executive Secretary of the outcome of the consultations. The Executive Secretary shall forward the information immediately to all other Contracting Parties. 5. If such consultations do not resolve the objection, the Contracting Party which objected may, with the support of at least two other Contracting Parties, request the Executive Secretary to arrange a special consultative meeting to discuss the objections raised. […] 6. […]The meeting shall be open to all Contracting Parties, the operator of the installation in question and all observers to the Commission. The meeting shall focus on the information provided in accordance with paragraphs 1 and 3 and during the consultations under paragraph 4. […] 7. The chairman of the meeting shall prepare a report of the views expressed at the meeting and any conclusions reached. That report shall be sent to all Contracting Parties within two weeks of the meeting. 9.Before making a decision with regard to any permit under paragraph 3 of this Decision, the competent authority of the relevant Contracting Party shall consider both the views and any conclusions recorded in the report of the special consultative meeting, and any views expressed by Contracting Parties in the course of this procedure. 10.Copies of all the documents which are to be sent to all Contracting Parties in accordance with this procedure shall also be sent to those observers to the Commission who have made a standing request for this to the Executive Secretary.

15. The Petroleum ActivitiesAct • Section 5-3Decision relating to disposal, 2. paragraph • The licensee and the owner are under obligation to make sure that a decision relating to disposal is carried out, unless otherwise decided by the Ministry. The obligation to carry out the decision relating to disposal is applicable even if this decision is made or is to be implemented after the expiry of the licence. • Section 5-4Liability • Whoever is under obligation to implement a decision relating to disposal according to Section 5-3 is liable for damage or inconvenience caused wilfully or negligently in connection with disposal of the facility or other implementation of the decision. • If the decision is abandonment, the licensee or owner shall be liable for damage or inconvenience caused wilfully or inadvertently in connection with the abandoned facility, unless otherwise decided by the Ministry. • If there are more than one party liable according to the first or second paragraph, they shall be jointly and severally liable for financial obligations, unless otherwise decided by the Ministry. • In the event of decisions for abandonment, it may be agreed between the licensees and the owners on one side and the State on the other side that future maintenance, responsibility and liability shall be taken over by the State based on an agreed financial compensation.

16. The Petroleum ActivitiesAct • Section 10-9Liability for damage caused • If liability in respect of a third party is incurred by anyone undertaking tasks for a licensee, the licensee shall be liable for damages to the same extent as, and jointly and severally with, the perpetrator and, if applicable, his employer. • Liability for pollution damage is governed by the rules of Chapter 7

17. The Petroleum ActivitiesAct • Section 7-3The liable party and the extent of liability • The licensee is liable for pollution damage without regard to fault. The provisions relating to the liability of licensees apply correspondingly to an operator who is not a licensee when the Ministry has so decided in connection with the approval of operator status.

18. Section 8-2Occupation of a fishing area In the event of petroleum activities within an area entirely or partly occupying a fishing field, the State is obliged, to the extent that fishing becomes impossible or is substantially impeded, to award compensation in respect of any resulting financial loss. Section 8-3Pollution and waste  The licensee is liable, regardless of fault,  in respect of financial losses incurred as a result of pollution and waste from the petroleum activities, and the cost of reasonable measures to avert or limit such damage or such loss, including damage or loss as a result of such measures. Section 8-4Joint and several liability If damage has been caused as described in Section 8-3 and it is not possible to identify who caused the damage, the licensees shall be jointly and severally liable insofar as the damage may be believed to have been caused by petroleum activities in connection with the licence in question. Section 8-5Facility etc. causing damage If a facility or an action in connection with the placing of such facility causes damage, and the injured party does not have a right to compensation pursuant to the provisions of Section 8-2, the licensee shall, regardless of fault, be liable for damages in respect of the financial losses suffered by fishermen as a result of the damage.

19. The Petroleum ActivitiesAct • Section 5-4Liability • Whoever is under obligation to implement a decision relating to disposal according to Section 5-3 is liable for damage or inconvenience caused wilfully or negligently in connection with disposal of the facility or other implementation of the decision. • If the decision is abandonment, the licensee or owner shall be liable for damage or inconvenience caused wilfully or inadvertently in connection with the abandoned facility, unless otherwise decided by the Ministry. • If there are more than one party liable according to the first or second paragraph, they shall be jointly and severally liable for financial obligations, unless otherwise decided by the Ministry. • In the event of decisions for abandonment, it may be agreed between the licensees and the owners on one side and the State on the other side that future maintenance, responsibility and liability shall be taken over by the State based on an agreed financial compensation.