Offshore Health and Safety The Practical and Legal Issues

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1 Offshore Health and Safety The Practical and Legal Issues 24 October /10/2013 1

2 Our programme Welcome and introduction Martin Peter Næsby, Oil Gas Denmark, and Bo Sandroos, Sandroos Advokatfirma Offshore Health & Safety Why, What and How Bo Sandroos, Sandroos Advokatfirma Break Offshore Health & Safety Beyond Legal Requirements Finn P. Brodersen, DONG E&P, chairman of Oil Gas Denmark s HSE Committee Workshop close, discussion and networking All 25/10/2013 2

3 Offshore Health and Safety The Practical and Legal Issues Offshore Health and Safety Why, What and How Bo Sandroos, adv. 24 October /10/2013 3

4 Overview of presentation Why The importance of health and safety What Overview of rules and regulations How Implementation measures 25/10/2013 4

5 Offshore Health and Safety 1. Why 25/10/2013 5

6 Why a high level of health and safety License to operate under Current legislation, national and international standards For suppliers: operators internal procedures and requirements Established safety practices Safeguarding life and health of staff ethical argument Part of host government scorecard Attraction Talent attraction and retention, investors Financial argument Operational integrity 25/10/2013 6

7 Safety Risk Safety 1 Requires knowledge of physical conditions and of technologies Enables choices, such as cost/benefit, ALARP 25/10/2013 7

8 Offshore Health and Safety 2. What 25/10/2013 8

9 Authority measures / tools Guidelines Legislation Control Sanctions 25/10/2013 9

10 The history Initially health and safety legislation from onshore made applicable to the offhore area Working Environment Act Administered by Danish Working Environment Authority 1976 the Danish Energy Agency established Havanlægsloven the Offshore Installation Act Administration of resources/production, and health and safety, kept in one unit Resources, expertise, simplification 25/10/

11 Differences in regimes Denmark Norway UK US Goalsetting Goalsetting Goalsetting Prescriptive Offshore Safety Council Extensive regulation Oil Gas UK Statoil s role Understand how the legislator / administrator thinks 25/10/

12 The legislative hierarchy Act (lov) Order (bekendtgørelse) Guidelines (vejledninger) Offshore Safety Act Subsoil Act Act on the Continental Shelf EU Directives and Regulations Act on certain products (2013) (unless governed by OSA) Hard law Soft law 25/10/

13 Offshore Safety Act Act No. 510 of 13 May 2013 on Safety, etc. on Offshore Installations for Exploration, Extraction and Transport of Hydrocarbons (Offshore Safety Act). Replaces former Offshore Installation Act ( Havanlægsloven 1981) Covers both design/construction, major hazards and occupational health and safety Relatively detailed regulations, supported by Orders ( bekendtgørelser ) 25/10/

14 Orders Order (bekendtgørelse) (Only those issued pursuant to OSA) 1. Registration and reporting of injuries (2013) 2. Use of products and materials (2013) 3. Portable pressured equipment (2013) 4. Construction, design and equipment fixed install. (2013) 5. Mobile offshore facilities (2013) 6. Preparedness on offshore facilities (2012) 7. DEA s tasks and responsibilities (2012) 8. Extension of area of application of OSA (2011) 9. EU critical infrastructure (EPCIP) (2011) 10.Offshore working time (2010) 11.Duties of producers and importers etc. (2010) 12.Eduaction of safety group members (2010) 13.Health and safety on mobile units (2010) 14.Health and safety on fixed installations (2010) 15.Offshore Safety Council (2010) 16.Operating fixed installations (2010) 17.Signs and signals (2010) 18.Articifial optic radiation (2010) 19.Health and safety management (2010) 20.Noise (2009) 21.Biological agents (2009) 22.Educational qualifications from third countries (2008) 23.Exchange of information on educational etc. (2008) 24.Ionising radiation (2008) 25.Personal protection equipment (PPE) (2008) 26.Monitors (2008) 27.Manual handling (2008) 28.Vibrations (2008) 29.Preparedness Committee (2007) 30.Cost compensation to DEA (2007) 31.Major accidents commission (2007) 32.Delegations to the Danish Maritime Agency (2006) 33.Energy Complaints Board (2006) 25/10/

15 Overview of the system Production facilities Design approval, OSA 27 Operational permit, OSA 28 Mobile units Operational permit, OSA 28 For both: Health and safety case HSC, or SSR sikkerheds- og sundhedsredegørelse Updated in case of material changes to design og operating conditions Health and safety risks as low as reasonably practicable (ALARP) Safety organisation Fixed installations Mobile units 25/10/

16 Offshore Safety Act, basic provisions I Purpose Definitions ALARP Safety critical elements Areas of application of the Act Holders of the obligations Rights holder, operator, operating company, employer, employee Own control (by the operator) ( egenkontrol ) Fixed installations Design, drilling, operations, upgrades, expansion/extensions Mobile units Operations, upgrades, expansions/extensions Information about move of the unit 25/10/

17 Offshore Safety Act, basic provisions II Pipelines Ships And facilities for accomodation Special vessels Lifting, stimulation, pipe-laying Non-E&P related vessels under the Subsoil Act Vessels in CCS - operations 25/10/

18 Issues in design/construction Aging facilities (beyond design life) Anchors and anchoring Dynamic positioning Flexible risers Risers and pipelines Seabed conditions Other physical conditions (waves, winds ) Marine collisions Major hazards 25/10/

19 Issues in processes Accomodation Diving Helicopter transportation Navigation Lifting, cranes Working time Process integrity Fire and explosion Evacuation, escape, rescue 25/10/

20 EU developments Directive 2013/30/EU Of The European Parliament and of the Council of 12 June 2013 on safety of offshore oil and gas operations and amending Directive 2004/35/EC Started due to Deepwater Horizon, April 2010 Initially very restrictive Regulation (to apply directly) Transformed into a Directive (member states to transpose by 18 July 2015) Focus on major hazards Safety critical systems Well operations Independent verifications 25/10/

21 Impact of the EU Directive Danish regulatory authorities are undertaking a review The Danish one-stop-shop (resources and safety) may come under pressure Organisational changes Many small to medium changes throughout the current rule set could be expected Industry involvement? Public debate? 25/10/

22 Offshore Health and Safety 3. How 25/10/

23 Guidelines from the DEA Guidelines (vejledninger) Registration and reporting of industrial accidents, Rev. 1 - September 2013 Management systems for health and safety, Rev. 0 - August 2013 Responsibilities and collaboration, Rev. 0 August 2013 Approvals and permits, Rev. 1 - December Health and safety cases - December Education and competences - December Safety educations for work offshore, Rev. 6 - August Working time rules in the offshore sector, Rev. 1 January 2011 Drilling - Exploration, 1988, Rev /10/

24 Operator s duties Prepare safety case to demonstrate the ability and means to control major accident risks effectively and have it approved. Consult the safety representatives in the preparation, revision or review of the safety case. Operate the installation in compliance with the current safety case. Implement measures to prevent uncontrolled releases of flammable or explosive substances. Maintain the integrity of the installation s structure, process plant, temporary refuge and all other equipment. Maintain the integrity of the wells and the pipelines throughout their lifecycle Prepare a plan for dealing with an emergency should one occur Source: experpts from the Health & Safety Executive, UK 25/10/

25 Employer s duties Co-operate with operator/owner of the installation, other employers to ensure the health and safety of those on board the installation and others working in connection with it. Carry out assessment of risks and implement control measures. Provide health and safety training. Provide insurance. Source: experpts from the Health & Safety Executive, UK 25/10/

26 Staff s duties Co-operate with the offshore installation manager and others to ensure the health and safety of those on board the installation and those working in connection with it. Follow the information, instruction and training you have received for working offshore and responding to an emergency should one occur. Take care of your own and other people's health and safety. Tell your employer, supervisor or safety representative if you think the work or inadequate precautions are putting anyone s health and safety at serious risk. Source: experpts from the Health & Safety Executive, UK 25/10/

27 Focus on responsibilities and collaboration development drilling License holder Where the operator is not the operating company ( driftsansvarlig virksomhed ) Operator Operating company on production facility Operating company on drilling rig Contractor Contractor Contractor Contractor 25/10/

28 Focus on responsibilities and collaboration production and operations License holder Operator and operating company Where the operator is the operating company ( driftsansvarlig virksomhed ) Contractor Operating company on drilling rig Contractor Contractor Contractor Contractor 25/10/

29 Focus on responsibilities and collaboration within the operating company Operating company Employer: OSA 10 Planning, supervision, awareness, ALARP, collaboration. Strict liability Manager Virksomhedsleder: as the employer + OSA 10.6 ensure employer fulfills duties. No strict liability Onshore Work leader Work leader Work leader Offshore Work leader Platform supervisor Anlægschef : overall responsibility for health and safety on the facility. OSA m. safety zone + where impact on ships, vessels etc. working Work leader OSA 12: ALARP within his/her functional area. Inform platform supervisor Other staff Other staff Work to secure the employer s obligations. Collaboration. Reporting 25/10/

30 Focus on responsibilities and collaboration within contractor organisation Contractor Manager Employer: OSA 10 Planning, supervision, awareness, ALARP, collaboration. Strict liability Virksomhedsleder: as the employer + OSA 10.6 ensure employer fulfills duties. No strict liability Onshore Offshore Work leader Work leader Work leader OSA 12: ALARP within his/her functional area. Information obligations Other staff 25/10/

31 Summing up the legal aspects Complex legislative framework hierarchy of Act(s), Orders, Guidelines Process: Start by looking at the Offshore Safety Act Review the applicable Order Review any applicable Guidelines Investigate if the matter has been discussed in the Offshore Safety Council Prepare an SOP for legal compliance in offshore health and safety management system and HSC The operator The contractor 25/10/

32 Summing up lessons for management Management focus Health and safety is a line responsibility Management shall draft and issue an Implementation Plan to ensure compliance Schedule verification and audit of the Plan 25/10/

33 Thank you for your attention Kronprinsessegade 46E, DK-1306 Copenhagen K sandroos@sandroos.dk 25/10/