Mexico-Alberta Regulatory Workshop
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1 Mexico-Alberta Regulatory Workshop Alejandro Carabias Icaza Deputy Executive Director for Regulations and Legal Standards September 4th, 2015
2 CONTENT Constitutional Mandate ASEA s scope ASEA s model Transparency Emergency Response Final remarks
3 A high level responsibility CONSTITUTIONAL MANDATE
4 Article 19 th Transitory to regulate and supervise in terms of industrial and operational safety and environmental protection, the facilities and activities of the hydrocarbons sector A decentralized agency from the Ministry of Environment (SEMARNAT) is created This agency is specialized on the industrial and operational safety and environmental protection of the hydrocarbons sector The responsibilities of hydrocarbon resources management and industrial safety are separated 4
5 The whole value chain of hydrocarbons ASEA S SCOPE
6 Scope To Regulate To Supervise Industrial and operational safety + environmental protection, on facilities and activities related to the hydrocarbons sector H y d r o c a r b o n s Exploration Drilling Production Transportation Industrial Processing Distribution and Retailing Storage 6
7 ASEA s Universe +9,300 Wells +250 Offshore +12,000 Platforms Gas Stations 65,000 Km of Pipelines 6 Refineries 70 ASEA Inspectors 7 9 Gas Processing Facilities +3,300 LP Gas Distribution and Carburation Centers
8 Strategic design ASEA S MODEL
9 ASEA s Institutional Model Strategic Framework Mission Vision Comprehensive Process of registation and permitting Professionalism Transparency Imparciality Opportuneness Administration by processes Regulation Manage ment Inspection Planning Legal Finances Risk management model Risk control Regulation $ System Inspection Plattform 9
10 APPENDICES
11 Mission, vision and values Mission To guarantee individuals safety and environmental integrity with legal, procedural and cost-effectiveness certainty in the hydrocarbons sector. Vision To be the Agency that takes the Mexican hydrocarbons sector to be the cleanest and the safest worldwide. Values Professionalism: we are ethical, knowledgeable and experienced. Transparency: what we do is public and accessible. Impartiality: decisions are based upon objective criteria. Opportuneness: we act timely and appropriately. 11
12 ASEA s Management Model is based on processes Filling Gaps Legal Standards Permits and Programs Planning Regulation Portfolio Management Inspection Sectors Performance Data 12
13 Risk Management General Model Safety and Environmental Management Systems (SEMS) Sufficient and Opportune Financial Responsability Goal oriented technical regulation Operations Risk Management Multi-level Platform for Inspection 13
14 Management Systems Requirements 13th Article 13th of the Law Integrates Industrial Safety, Operational Safety and Enrivonmental Protection. Organized as improvement process Requirement Title Requirement Title I Policy X Control of activities, starts and changes. II Dangeridentification and risk analysis. XI Mechanical Integrity and Quality Assurance. III Legal requirements. XII Safety of Contractors. IV Goals, objectives and indicators. XIII Emergency preparedness and response. V Roles, Responsibilities and Authority. XIV Monitoring, verification and evaluation. VI Competence, training and coaching. XV Audits. VII Communication, Participation and XVI Investigation of incidents and accidents. Consultation. VIII Documents Control and Registries. XVII Results review. IX Best Practices and Standars. XVIII Performance reports. 14
15 Financial limits of insurance policies Illustrative E & P Transportation, storage and distribution Industrial Processing Retailing Land: USD 500,000,000 FromUSD 500,000,000 To be identified FromUSD 250,000,000 Ultra deepwater: USD 1,350,000,000 Up to USD 1,000,000,000 Up to USD 500,000,000 15
16 Regulatory framework Goal-oriented Regulation Prescriptive Mexican Official Standards Mexican Official Standards Mexican Official Standards Mexican Official Standards Mexican Official Standards Mexican Official Standards Guidelines Guidelines Guidelines Guidelines Land guidelines Offshore guidelines E&E Regulation Transport and storage Industrial transformation Distribution and commecialization General regulatory framework on safety and environmental protection Performance based 16
17 Multi-level Platform for Inspection 100% key aspects Inspection Internal inspection Insurance inspection Certified third parties ASEAS s Inspectors Autorized and evaluated by ASEA & the Mexican Certification Organism (EMA) Randomly assigned Financed by standard fees payment 80/20 key aspects 17
18 Comprehensive process of registry and permits management Online procedures 18
19 Mandatory Public Consultation for all Regulation TRANSPARENCY
20 Industry and Regulators share a strategic goal: to improve the performance of the hydrocarbons sector on industrial safety and environmental protection The best regulation: the one that is built hand by hand with the industry and other stakeholders. The challenge: moving forward towards a new paradigm, in which industry and regulator conduct technical conversations leading to reach common goals 20
21 Public Engagement on Regulations and Permits Creation of new regulation Regulatory Impact Assessment Prior the start of activities The process of creating new legal standards through CONASEA (National Advisory Committee for Standardization on Industrial and Operational Safety, and Environmental Protection of the Hydrocarbons Sector) has the representation of different sectors industry, government, academy, and consumers. Public Consultation as part of the Regulatory Impact Manifest process by COFEMER (Federal Commission for Regulatory Improvement) Public Consultation and Public Meetings as part of the Environmental Impact Assessment process
22 ASEA s role EMERGENCY RESPONSE
23 ASEA s Role The Agency has to define technical elements, that shall be included in protocols for emergency response or critical risk situations, or events that can cause a significant harm to people or goods, and the environment, when the magnitude of such event requires it, or if applies, to participate under the coordination of the authorities. ASEA Act, Chapter One, Article 5, Part V.
24 Onshore & Offshore Emergency Response Coordinating Bodies Civil Protection SEGOB (Ministry of Interior) *National System of Civil Protection SEMAR (Navy) *National Contingency Plan to Address and Control Hydrocarbon Spill and other Sea Harmful Substances *MEXUS Plan 24
25 ASEA s Role Preparing for an Emergency ASEA Provide technical elements for Emergency Response Protocols (Contingency Plan for Hydrocarbon Spills) Emergency SEMAR / SEGOB Coordinate Response ASEA Participate, monitor and supervise the protocol execution After an Emergency ASEA Root Cause Analysis
26 FINAL REMARKS
27 A clear constitutional mandate: to regulate and supervise the entire value chain of the hydrocarbons industry in the country. Institutional Architecture: a blank space to stablish a process and systems-based operation. Cutting Edge Regulatory and Permitting Policy: focused on risk management; goal-oriented; inspired on best practices and operated through comprehensive processes. Multi-level platform inspection: aligns incentives of the regulator with those of the opertors, the re-insurance sector and the verification units. Regulation Strategy: Based on the needs and times for Round 1 to give total legal certainty to the operators. 27
28 Alejandro Carabias Icaza Deputy Executive Director for Regulations and Legal Standards
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