Consenting Carbon Capture & Storage Scottish Government Workshop - Offshore Pipeline

1. Consenting Carbon Capture & StorageScottish Government Workshop -Offshore Pipeline 11 August 2010 Paul Wood Projects and Technology Environmental Specialist

2. Planning / Marine Activities Regulations Mains Aquifer Offshore Pipeline Scenario 3 Nautical Miles ‘Controlled Waters’ 12 Nautical Miles ‘Limit of Territorial Waters’ 200 Nautical Miles or UK Waters (Continental Shelf Limit) MHWS LWM Town & Country Planning Act (Scotland) 1997 Petroleum Act 1998 Crown Estates Licence Food & Environment Protection Act 1985 Coast Protection Act 1949 Boyndie Bay GIP Marine (Scotland) Act 2010 – Marine Licence? Consent to Locate (Schedule 4 of CPA) FEPA Licence PWA Licence

3. Environmental Regulations 3 Nautical Miles ‘Controlled Waters’ 12 Nautical Miles ‘Limit of Territorial Waters’ 200 Nautical Miles or UK Waters (Continental Shelf Limit) MHWS LWM Town & Country Planning Act (Scotland) 1997 Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 ((as amended) Conservation (Natural Habitats, &c.) Amendment (Scotland) Regulations 2008 Water Environment (Controlled Activities) (Scotland) Regulations 2005 Offshore Chemical Regulations 2002 Boyndie Bay GIP Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) Regulations 1999 Environmental Statement will be submitted and will allow an Appropriate Assessment to be undertaken CAR Licence PON15C

4. Environmental Regulations covering CCS activities • The Energy Act 2008 (Consequential Modifications) (Offshore Environmental Protection) Order 2010 has updated the following legislation (applicable to pipelines) to cover CCS activities and came in to force on 1st July 2010: • Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) Regulations 1999 (as amended); • Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 (as amended); • Offshore Chemical Regulations 2002; • Other non-specific CCS Environmental Consents required for this scenario: • Water Environment (Controlled Activities) (Scotland) Regulations 2005; • Coast Protection Act 1949 (as amended); • Food and Environment Protection Act 1985; • Marine (Scotland) Act 2010 (due to come in to force April 2011)

5. Safety Regulations • Obligations for a Major Accident Hazard Pipeline under Pipeline Safety Regulations 2010 (currently under consultation) in case CO2 is designated as a dangerous fluid under Schedule 2: • Notification to the Health & Safety Executive before construction (no more than 3 years and no less than 6 months) in accordance with Schedule 4 • Notification to the Health & Safety Executive before use • Preparation of Major Accident Prevention Document for the pipeline • Establish, record and review the appropriate Emergency Procedures • Regulations are still under consultation. In case CO2 is not identified as a dangerous fluid under Schedule 2, none of the above will be applicable.

6. Consenting Timeline

7. Conclusions • Existing Oil and Gas legislation has been amended to include CCS activities allowing offshore developers to continue working in a known and well understood permitting regime. • Approval timelines are understood and it is accepted that some may vary due to the untested nature of CCS activities. • Clarity still required on the Implementation of the Marine (Scotland) Act 2010 and who will regulate outside of Scottish Territorial waters. • A decision is required as to whether CO2 will be treated as a dangerous fluid under Schedule 2 of the Pipeline Safety Regulations.