Health and Safety

The Offshore Installations (Offshore Safety Directive) (Safety Case etc) Regulations 2015 Guidance on Regulations

Health and Safety Executive The Offshore Installations (Offshore Safety Directive) (Safety Case etc) Regulations The Offshore Installations 2015 (SCR 2015) came into force on 19 July 2015. They apply to oil and gas (Offshore Safety Directive) (Safety Case etc) Regulations 2015 operations in external waters, that is, the territorial sea adjacent to Great Britain and any designated area within the UK continental shelf. They replace the Offshore Installations (Safety Case) Regulations 2005 (SCR 2005) in these waters, subject to certain transitional arrangements. Activities in internal waters (eg estuaries) will continue to be covered by SCR 2005 and A guide to the Offshore Installations (Safety Case) Regulations 2005 (HSE, L30).

The primary aim of SCR 2015 is to reduce the risks from major accident hazards to the health and safety of the workforce employed on offshore installations or in connected activities. The Regulations also aim to increase the protection of the Guidance on Regulations marine environment and coastal economies against pollution and ensure improved L154 (First edition) response mechanisms in the event of such an incident. Published 2015

HSE Books

© Crown copyright 2015

First published 2015

ISBN 978 0 7176 6325 5

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Guidance

This guidance is issued by the Health and Safety Executive. Following the guidance is not compulsory, unless specifically stated, and you are free to take other action. But if you do follow the guidance you will normally be doing enough to comply with the law. Health and safety inspectors seek to secure compliance with the law and may refer to this guidance.

Contents

Introduction 5 The Regulations 16 Regulation 1 Citation and commencement 16 Regulation 2 Interpretation 16 Regulation 3 Communication and storage of information by electronic means 27 Regulation 4 Application and extent 28 Regulation 5 Duties of licensee 28 Regulation 6 Capacity of operator to meet requirements 29 Regulation 7 Corporate major accident prevention policy 30 Regulation 8 Safety and environmental management system 32 Regulation 9 Establishment of verification scheme 34 Regulation 10 Other provisions as to verification schemes 37 Regulation 11 Establishment of well examination scheme 39 Regulation 12 Other provisions as to well examination schemes 41 Regulation 13 Description of verification scheme and well examination scheme 42 Regulation 14 Defence 43 Regulation 15 Design and relocation notifications for production installation 44 Regulation 16 Management and control of major accident hazards 48 Regulation 17 Safety case for production installation 51 Regulation 18 Safety case for non-production installation 53 Regulation 19 Design notification and safety case for non-production installation to be converted 54 Regulation 20 Safety case for dismantling fixed installation 56 Regulation 21 Notification of well operations 58 Regulation 22 Notification of combined operations 62 Regulation 23 Review of safety case 63 Regulation 24 Revision of safety case 65 Regulation 25 Power of competent authority in relation to safety cases and related documents 67 Regulation 26 Power of the competent authority to prohibit operations 69 Regulation 27 Keeping of documents 70 Regulation 28 Duty to conform with safety case and notifications of operation 72

Regulation 29 Duty to control risk 73 Regulation 30 Internal emergency response 74 Regulation 31 Communication of national arrangements for confidential reporting of safety concerns etc 78 Regulation 32 Standards and guidance on best practice 78 Regulation 33 Notification of major accident etc 79 Regulation 34 Information on operations conducted outside of the European Union 80 Regulation 35 Exemptions 81 Regulation 36 Enforcement 82 Regulation 37 Appeals 84 Regulation 38 Amendments and revocations 85 Regulation 39 Transitional provisions and savings 86 Regulation 40 Penalties 86 Regulation 41 Review 86 Schedules and guidance 87 Schedule 1 Particulars to be addressed in a corporate major accident prevention policy 87 Schedule 2 Matters in accordance with which the corporate major accident prevention policy and safety and environmental management system must be prepared 89 Schedule 3 Particulars to be addressed in a safety and environmental management system 90 Schedule 4 Matters to be provided for in a verification scheme and a well examination scheme 93 Schedule 5 Particulars to be included in a design notification or a relocation notification for a production installation 98 Schedule 6 Particulars to be included in a safety case for the operation of a production installation 101 Schedule 7 Particulars to be included in a safety case for a non- production installation 109 Schedule 8 Particulars to be included in a current safety case in respect of the dismantling of a fixed installation 115 Schedule 9 Particulars to be included in a notification of well operations 118 Schedule 10 Particulars to be included in a notification of combined operations 124 Schedule 11 Matters to be considered in preparing and revising standards and guidance on best practice in relation to the control of major hazards 126 Schedule 12 Appeals 126 Schedule 13 Amendments and revocations 130 Schedule 14 Transitional provisions and savings 151 References 161 Further information 164

Introduction

1 The Offshore Installations (Offshore Safety Directive) (Safety Case etc) Regulations 2015 (SCR 2015) came into force on 19 July 2015. They apply to oil and gas operations in external waters, that is, the territorial sea adjacent to Great Britain and any designated area within the United Kingdom continental shelf (UKCS). They replace the Offshore Installations (Safety Case) Regulations 2005 (SCR 2005) in these waters, subject to certain transitional arrangements. Activities in internal waters (eg estuaries) will continue to be covered by SCR 2005 and HSE publication A guide to the Offshore Installations (Safety Case) Regulations 2005.1

2 The primary aim of SCR 2015 is to reduce the risks from major accident hazards to the health and safety of the workforce employed on offshore installations or in connected activities. The Regulations also aim to increase the protection of the marine environment and coastal economies against pollution and ensure improved response mechanisms in the event of such an incident.

3 SCR 2015 builds on the central recommendation of Lord Cullen’s report on the public inquiry into the Piper Alpha disaster. This was that the operator or owner of every offshore installation should be required to prepare a safety case and submit it to the regulator for acceptance. This safety case now incorporates the additional requirements of the Directive 2013/30/EU on the safety of offshore oil and gas operations and amending Directive 2004/35/EC.2 The Regulations also implement aspects of Directive 92/91/EEC3 concerning the minimum requirements for improving the safety and health protection of workers in the mineral-extracting industries through drilling.

4 Safety cases under SCR 2015 are submitted to the competent authority for assessment. The competent authority comprises the Health and Safety Executive (HSE) and the Department of Energy and Climate Change (DECC) working in partnership: this is called the Offshore Safety Directive Regulator (OSDR).

Requirements to submit safety cases and notifications for installations 5 Safety cases under SCR 2015 are required for all installations operating, or to be operated, in external waters. It is an offence to operate an installation in external waters without a safety case that has been accepted by the competent authority. Different requirements apply to installations used for producing oil and gas compared to those used for other purposes, such as drilling, exploration or providing accommodation. The duty to submit safety cases and notifications is generally placed on a single dutyholder in respect of each type of installation, namely the operator of a production installation and the owner of a non-production installation.

6 For new production installations to be established offshore, operators must send a notification to the competent authority at the early design stage. A notification under SCR 2015 is also required if a production installation is to be moved to a new location in external waters or if a non-production installation is to be converted to a production installation. The notification must be followed by submission of a safety case, for the competent authority’s acceptance, before the installation can be operated. If a production installation moving to a new location in external waters already has an accepted safety case, the operator must submit a revision of the safety case to the competent authority for acceptance. A revision to the safety case must be submitted to and accepted by the competent authority before a fixed installation is dismantled. Where revisions to the safety case result in a material change, these must also be submitted to the competent authority for assessment and acceptance prior to the changes taking effect.

7 For non-production installations, the owner must submit a safety case for the competent authority’s acceptance before moving the installation in external waters for the purpose of operating it there. If a non-production installation is to be converted to a production installation, the owner must send a design notification and the operator must submit a revision of the safety case for the competent authority’s acceptance.

8 Further notifications are required when installations engage in combined operations, to cover the specific features of such operations. The combined operations notification complements the existing safety cases by (among other things) identifying any new or changed hazards arising from the combined operation, and describing how the installations’ management systems will be co-ordinated to manage and control major accident hazards. When a production installation is involved in such a combined operation, it must be the operator who submits the notification. In all other circumstances, the notification would be submitted by the owner.

Purpose of a safety case

9 A safety case is a document that gives confidence to operators, owners, workers and the competent authority that the dutyholder has the ability and means to manage and control major accident hazards effectively. It provides an extra level of regulatory control in addition to regulations such as the Offshore Installations (Prevention of Fire and Explosion, and Emergency Response) Regulations 1995 (PFEER)4 and the Offshore Installations and Wells (Design and Construction, etc) Regulations 1996 (DCR),5 justified by the major accident potential of the offshore activities within scope.

10 SCR 2015 does not set standards for the control of major accident risks. These are set by PFEER, DCR, the Merchant Shipping (Oil Pollution Preparedness, Response and Co-operation Convention) Regulations 1998 (OPRC),6 and other regulations, as well as by the Health and Safety at Work etc Act 1974 (the HSW Act).7 A safety case demonstrates that the dutyholder has arrangements in place which, if implemented, are capable of achieving compliance with these legal objectives. This is what the competent authority will look for when making a decision on whether or not to accept a safety case. The safety case provides a comprehensive core document that can be used as a check by both the dutyholder and the competent authority that the accepted risk control measures, verification arrangements and safety and environmental management system (SEMS) are in place and operate as they should.

Acceptance of safety cases

11 The competent authority’s acceptance is required for all safety cases and material changes to safety cases. Acceptance is not defined in SCR 2015, but it requires satisfaction with the dutyholder’s approach to identifying and meeting health, safety and environmental needs. The competent authority ‘accepts’ the validity of the described approach as being capable, if implemented as described, of achieving the necessary degree of risk control. The competent authority does not confirm the outcomes of that approach. This is in line with Lord Cullen’s original concept of the safety case.

12 The competent authority will accept a safety case or a revision under SCR 2015 when dutyholders demonstrate and describe specified matters to the competent authority’s satisfaction. Acceptance will be based on the competent authority’s judgement that the arrangements and measures described in the safety case, taken as a whole, are likely to achieve compliance if implemented as described. To give acceptance the competent authority does not need to be satisfied that compliance will be achieved. This confirmation will be made by post- acceptance programmes of inspection and enforcement, based on the accepted safety case. Acceptance does not guarantee that the major accident hazard risks to health, safety and the environment will be effectively managed or controlled.

13 In making an acceptance decision, the competent authority will take a considered view on which elements of a particular safety case should be examined in greater depth and which should not. The key criterion will be whether a safety case contains sufficient information to enable the competent authority to make a decision on acceptance. This decision will be based on both safety and environmental information and environmental assessment will be underpinned by information presented to satisfy the requirements of OPRC and the Offshore Petroleum Production and Pipelines (Assessment of Environmental Effects) Regulations 1999 (as amended)8 (see section on Relationship with other regulations). This provides flexibility in the assessment process. The competent authority’s assessment framework diagrams and guidance for offshore safety cases set out the competent authority’s approach to assessing safety cases and give an insight as to how and why decisions are reached. The safety case assessment procedures and guidance promote proper and consistent assessment of safety cases by the competent authority and are available on the competent authority’s website: www.hse.gov.uk/osdr/.

14 The competent authority will work with dutyholders to ensure safety case submissions are acceptable. However, if the competent authority is unable to accept a safety case, SCR 2015 provides the dutyholder with a right of appeal to the Secretary of State.

15 Following acceptance, the dutyholder must ensure that the installation is operated in conformity with the SEMS, the verification scheme and other arrangements described in the safety case. The competent authority also has the power to prohibit activities should it determine the contents of the safety case (or combined operations notifications or well notifications) are no longer sufficient to demonstrate the adequate management and control of major accident hazards.

Reviews and revisions of safety cases

16 Safety cases are intended to be ‘living’ documents, kept up to date and revised as necessary during the operational life of the installation. The dutyholder must revise an accepted safety case whenever appropriate to ensure the case

remains current and reflects operational reality on the installation. Revisions that make a material change to the safety case must be submitted to the competent authority for acceptance. A material change is likely to be one that changes the basis on which the original safety case was accepted. In addition, the dutyholder must carry out a thorough review of the current safety case at least every five years or as directed by the competent authority. The competent authority has general powers to inspect the conduct of such reviews and to look at current safety cases at any time, supplemented by powers under regulation 25 to look at a developing safety case and related documents.

17 Once given, the competent authority’s acceptance of a safety case may last as long as the installation to which it applies. The competent authority can prevent material changes taking effect by not accepting the safety case revision describing them. If the competent authority considers material changes must be made, it may direct a revision of a safety case to be submitted for assessment. In the event that a directed revision is unacceptable, the competent authority may suspend an existing accepted safety case, subject to a right of appeal to the Secretary of State. Should the competent authority at any time determine that the contents of the safety case are insufficient, it may prohibit operations.

Notifications

18 Notifications, whether of design, relocation, combined operations or well operations, do not require the competent authority’s acceptance. The competent authority has three months in which to comment on design and relocation notifications received. The main aim of notifications, particularly at the early design stage, is to encourage a constructive dialogue between dutyholders and the competent authority. This will help to progress the subsequent development of safety cases and inform the competent authority’s inspection plans.

19 SCR 2015 requires the well operator to send prior written notice of well operations from an installation or vessel. Well notifications supplement existing safety cases by providing well-specific information that is not likely to be contained in a safety case. Combined operations notifications supplement existing safety cases by providing information specific to the combined operations.

20 The competent authority may also request further information in relation to a notification, which must be provided by the operator. If the information notified under a well notification or combined operations notification gives cause for concern, competent authority inspectors can object to the content of the notification, and under such circumstances operations should not commence. The competent authority also has the power to prohibit activities should it determine the contents of combined operations notifications or well notifications are no longer sufficient to demonstrate the adequate management and control of major accident hazards.

Safety cases and verification

21 Regulations 9 and 10 and the associated guidance are concerned with the verification of the installation’s safety and environmental-critical elements (SECEs). Verification is a vital method of assuring the continued efficient safe operation of the installation.

22 The overall objective of the verification scheme is to establish a system of independent and competent scrutiny of SECEs throughout the life cycle of an

installation and to obtain assurance that satisfactory standards will be achieved and maintained. Apart from helping to provide evidence of an operator’s compliance with legal obligations such as those arising from DCR and PFEER, the verification scheme will also contribute to a dutyholder’s demonstration of the safety and environmental standards required elsewhere in these Regulations. A description of the verification scheme will be required as part of the safety