Petroleum (Exploration and Extraction) Safety Act 2015

Safety case and revised safety case

9. The following is substituted for section 13M (inserted by the Act of 2010) of the Act of 1999:

“Safety case

13M. (1) (a) An owner shall, where relevant, and at least 6 months or, such other lesser time as the Commission may specify, before an operator proposes to commence a designated petroleum activity from the non-production installation, submit a safety case to the Commission for acceptance.

(b) An owner shall submit a safety case with respect to a non-production installation and the review and revision of that safety case.

(2) (a) An operator that proposes to carry on a designated petroleum activity shall prepare a safety case and shall, at least 6 months or, such other lesser time as the Commission may specify in writing, before it proposes to commence the activity, submit the safety case to the Commission for acceptance.

(b) An operator shall submit a safety case (except with respect to a non-production installation) and the review and revision of that safety case.

(3) (a) An operator shall not carry on a designated petroleum activity unless the safety case submitted under subsection (2)(a), and where relevant the associated owner safety case for the non-production installation, has been accepted by the Commission and a safety permit has been issued under section 13P in respect of the designated petroleum activity.

(b) Notwithstanding section 13E(1), a petroleum undertaking may continue to carry on an established petroleum activity where the petroleum undertaking has submitted a safety case to the Commission within 12 months of the publication in the prescribed manner of the guidelines relating to that activity pursuant to the Act of 2010 until the day which is 14 days after the Commission notifies the petroleum undertaking of—

(i) the acceptance of the safety case and issue of a safety permit under section 13P, or

(ii) the refusal of a safety permit under section 13Q(1).

(4) A safety case shall be prepared in accordance with such safety case guidelines as shall be prepared and published by the Commission under section 13L.

(5) A safety case shall contain such particulars as are specified in the safety case guidelines that relate to the designated petroleum activity or activities in respect of which the safety case is being prepared and shall include sufficient particulars to demonstrate to the Commission that—

(a) the operator is complying with his or her obligations under section 13KB or where relevant the owner is complying with his or her obligations under section 13KC,

(b) the operator, or where relevant the owner, has the ability to properly assess and effectively control risks which may arise from the carrying on of the designated petroleum activity or activities to a level that is as low as is reasonably practicable,

(c) having identified all major accident hazards and the risks presented by those hazards, the relevant owner or operator has taken such measures as are adequate to ensure that its safety management system or the safety and environmental management system with respect to designated petroleum activities carried out offshore, is capable of reducing the risks to a level that is as low as is reasonably practicable,

(d) all petroleum incident risks have been evaluated and emergency measures are in place in the event of such petroleum incident arising,

(e) adequate arrangements for monitoring, audit and for the making of reports on safety performance and compliance have been established,

(f) the emergency response arrangements are—

(i) consistent with the major accident hazard risk assessment described in the safety case and the relevant national emergency response arrangements which are in place to prevent escalation or limit the consequences of a major accident, and

(ii) capable of being put into action without delay to respond to any major accident or a situation where there is an immediate risk of a major accident,

(g) it has consulted with workers’ representatives in the preparation and review of the safety case, and

(h) a complete inventory of emergency response equipment pertinent to their operation has been prepared and is maintained.

(6) A petroleum activity shall cease to be an established petroleum activity where—

(a) the Commission accepts the safety case and issues a safety permit under section 13P,

(b) the Commission refuses to issue a safety permit under section 13Q(1), or

(c) the petroleum undertaking fails to submit a safety case within the time period specified in subsection (1) (b).

(7) In this section ‘audit’ means systematic assessment of the adequacy of the safety management system, carried out by persons who are sufficiently independent of the system (but who may be employed by the operator or owner) to ensure that such assessment is objective.

Revised safety case - transitional arrangement

13MA. (1) Where a petroleum undertaking—

(a) has an accepted safety case and safety permit under section 13P to carry out a designated petroleum activity or activities with respect to production prior to 19 July 2015, or

(b) is carrying out established petroleum activities in accordance with section 13M(3)(b),

an operator appointed by that petroleum undertaking shall submit a revised safety case by the earliest of the following dates—

(i) the date of the scheduled review of the safety case under section 13N(2)(a),

(ii) the date by which the petroleum undertaking is required to submit the revised safety case as stated in a notice in writing issued by the Commission, or

(iii) 19 July 2018.

(2) Notwithstanding any other provision of this Act and subject to subsection (3), a petroleum undertaking who satisfies either the conditions set out in subsection (1) (a) or (b), may continue to carry out designated petroleum activities in accordance with its existing safety permit and accepted safety case until the assessment by the Commission of the revised safety case, submitted under subsection (1) has been completed.

(3) A petroleum undertaking referred to in subsection (1) shall review its safety case during the period from the commencement of this section under the Petroleum (Exploration and Extraction) Safety Act 2015 and the submission of the safety case in accordance with subsection (1) —

(a) whenever such a review is necessary because of new facts or to take account of new technical knowledge about safety matters,

(b) whenever such a review is necessitated arising from—

(i) reports related to audits (whether within the meaning of section 13M(7) or otherwise), or

(ii) reports on safety performance and compliance,

(c) in circumstances where the petroleum undertaking considers it appropriate to do so,

(d) where the Commission issues a notice in writing to a petroleum undertaking requiring it to do so, or

(e) where a change is made to the safety management system which could significantly affect the ability of the petroleum undertaking to comply with its duty to reduce the risks to a level that is as low as is reasonably practicable.

(4) Where in consequence of the review under subsection (3) it is necessary to revise a safety case, the petroleum undertaking shall do so as soon as practicable and inform the Commission in writing of the details of such revision. Where the revision of a safety case results in a material alteration of the safety case previously accepted by the Commission, the petroleum undertaking shall immediately inform the Commission and a revised safety case in accordance with subsection (1) shall be submitted to the Commission by the operator appointed by the petroleum undertaking.”.