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Part 4 Environmental impact assessment
Town and Country Planning (Environmental Impact Assessment) (England and Wales) Regulations 1999 and Environmental Impact Assessment (Scotland) Regulations 1999
Pipe -line Works (Environmental Impact Assessment) Regulations 2000
The Public Gas Transporter Pipe - line Works (Environmental Impact Assessment) Regulations 1999
Conservation (Natural Habitats, &c) Regulations 1994

Part 5 Storage of hazardous substances
Planning (Control of Major Accident Hazards) Regulations 1999 (SI 1999/981) (England and Wales)
Planning (Control of Major Accident Hazards) (Scotland) Regulations 2000 (SI 2000/179)
Control of Major Accident Hazards (COMAH) Regulations 1999 (SI 1999/743)

Part 6 Waste disposal (solid and liquid)
Groundwater Regulations 1998
Waste Management Licensing Regulations 1994 (SI 1994/1056)
Council Directive 1999/31/EC on the landfill of waste
Transfrontier Shipment of Waste Regulations 1994
Water Framework Directive (Draft)

Part 7 Air emissions
Energy Act 1976 (c.76)
Air Quality (England) Regulations 2000 (SI 2000/928) [SSI 2000/97 in Scotland and SI 2000/1940 in Wales]
Environmental Protection (Controls on Substances that Deplete the Ozone Layer) Regulations 1996 (SI 1996/506)
Global Warming Treaty (Convention on Climate Change)
Convention on Long - Range Transboundary Air Pollution (Convention on Prevention of Air Pollution)

Part 8 Noise and vibration pollution
Control of Pollution Act 1974, Part III
Environmental Protection Act 1990, Part III and the Environmental Act 1995, Part V
Pollution Prevention and Control Act 1999 (and Regulations 2000)

Part 9 Pollution emissions
Environmental Protection (Prescribed Processes and Substances) Regulations 1991
Pollution Prevention and Control (England and Wales) Regulations 2000 (SI 2000/1973)
Pollution Prevention and Control (Scotland) Regulations 2000 (SSI 2000/323)
The Petroleum (Current Model Clauses) Order 1999 (SI 1999/160)

Part 10 Implications of the regulations
Exploration, Development and Production
Drill Cuttings
Hazardous Substances
VOC Emissions
Combustion Emissions
Produced water and other liquid wastes
Solid Waste Disposal
Ozone Depleting Gases
Noise and Vibration
Decommissioning and Abandonment

Environmental legislation applicable to the onshore hydrocarbon industry (England, Scotland and Wales)

1. Summary

1.1. Environmental management of the onshore hydrocarbon industry does not come within the jurisdiction of the Department of Trade & Industry (DTI), with the exception of certain pipelines, but there is a need to better understand the requirements of United Kingdom (UK) and European Commission (EC) environmental legislation and its technical and commercial implications for the industry.

1.2. EC legislation is given effect in the UK through Acts of Parliament and their statutory instruments. These are implemented by either the DEFRA, Environment Agency in England and Wales, Scottish Environment Protection Agency (SEPA), the local authorities or the DTI (pipelines only). A hydrocarbon installation must obtain the relevant licences ¹ from these authorities for both construction and operations. In assessing applications for licences, the authorities will consider their effects on the environment against the relevant UK legislation.

1.3. The key planning and environmental legislation having implications for the hydrocarbon industry is summarised in the table below.

1.4. Application of this legislation in relation to the currently operating onshore fields is summarised in the following table:

Legislation	Application
Town and Country Planning Act 1990 [1997 in Scotland], Planning and Compensation Act 1991, Environment Act 1995	Applies to all hydrocarbon developments.
Town & Country Planning (Environmental Impact Assessment) (England and Wales) Regulations	New onshore fields, unless on the production scale of Wytch Farm, would only require an Environmental Statement if determined by the Local Authority as having potentially significant environmental
Pipelines Act 1962; and Pipe-line Works (Environmental Impact Assessment) Regulations 2000	Construction of pipelines over 16km in length would require an Environmental Statement.
Gas Act, 1986; and Public Gas Transporter Pipe-line Works (Environmental Impact Assessment) Regulations 1999	Construction of pipelines over 40km in length or 800mm diameter would require an Environmental Statement.
EC Directive (96/82/EC): Control of major accident hazards; and a) Planning (Control of Major Accident Hazards) Regulations 1999 (2000 in Scotland) b) Control of Major Accident Hazards (COMAH) Regulations 1999	Conventional onshore fields are unlikely to store hydrocarbon products in sufficiently large volumes so as to warrant control under these Regulations.
EC Directive (80/68/EEC): Groundwater; and Groundwater Regulations 1998 and Waste Management Licensing Regulations 1994 EC Directive (99/31/EC) on the landfill of waste Draft Water Framework Directive	The following onshore fields re-inject produced water and other oily wastes, and therefore require to be licensed: Wytch Farm Whisby Welton Singleton Palmers Wood Humbly Grove Horndean A number of these fields re-inject non-process liquid wastes (from other sources) and this activity will be prohibited upon implementation of the Landfill and Water Framework Directives.
EC Regulation (259/93): Supervision and control of shipments of waste within, into and out of the Transfrontier Shipment of Waste Regulations 1994	It is unlikely that any onshore field would require to ship waste outside the UK.
Environmental Protection Act 1990, Part I; Environmental Protection (Prescribed Processes and Substances) Regulations 1991; and Pollution Prevention and Control Act 1999 and Pollution Prevention and Control Regulations 2000	Onshore fields will require an IPPC licence under the new legislation, depending upon the activities undertaken at the site.
Petroleum Act 1998; Energy Act 1976; and The Petroleum (Production) (Landward Areas) Regulations 1995	All onshore hydrocarbon fields will require a licence for development, production, venting and flaring of gas, and abandonment.

¹Licence is a global term used in this document for either a Licence, Authorisation, Registration or Permit issued under the various statutory instruments.

2. Introduction

2.1. In the United Kingdom, acts of parliament relating to environmental issues are normally effected through statutory instruments, such as the Air Quality Regulations 2000. These are applied to oil and gas related activities through the planning process by local authorities and the Environment Agency / SEPA, or by the DTI (pipelines only) and DEFRA through their authorisation processes. Under the Scotland Act 1998 (c.46), all onshore environmental matters have been devolved to the Scottish Executive.

2.2. In the UK, as in the other states of the European Union (EU), oil and gas companies have had to take note of the gradual development of EC environmental objectives and their integration into other EC policies, particularly those relating to energy. These are effected in the UK through the statutory instruments. The EC is asserting a growing competence over environmental matters. It is itself party to a number of international agreements and since the early 1970s it has passed legislation on a wide range of environmental topics. For a number of years the EC has produced an Environmental Action Programme which sets out a programme for environmental legislation and related policy matters.

2.3. This development has implications for the onshore (and offshore) hydrocarbon industry, and in some cases may increase the costs of an existing or future oil or gas field. Whilst onshore environmental legislation is not wholly within the jurisdiction of the DTI, its implications on the DTI's objectives to "maximise economic hydrocarbon recovery" necessitate understanding of its potential consequences.

2.4. This report outlines the key UK and EC environmental legislation and how it affects the onshore hydrocarbon industry. It is not the intention of this document to identify the full suite of EC and UK environmental legislation relating to protection of specific natural features and other environmental habitats, but rather to identify the primary legislation which would logically lead on to investigating other applicable legislation. Neither is it the intention of this document to repeat the full details of each statutory instrument, but rather to provide a guide to that which is applicable to the onshore hydrocarbon industry. It is, therefore, strongly recommended that the referenced acts / regulations are read in conjunction with this document to provide the detail which is not contained herein.

2.5. For the purpose of this document, the onshore hydrocarbon industry refers to the onshore exploration, appraisal, drilling, extraction, production and export of hydrocarbon products, including coalbed methane extraction. It excludes processing, storage and distribution facilities downstream of the fiscal meter. Hydrocarbon installation means a stationary unit where the aforementioned activities are carried out or any other directly associated activities are carried out which have a technical connection, e.g. drilling rig, process plant, pipeline.

2.6. This report covers legislation relating to environmental protection only and does not include issues relating to human health and safety, which are a separate topic entirely and which are under the jurisdiction of the Health and Safety Executive.

3. The Planning System

3.1. The planning system regulates the development and use of land in the public interest, and is a method of reconciling the demand for development and the protection of the environment. Thus it has a key role to play in contributing to the Government's strategy for sustainable development by helping to provide for necessary development in locations which do not compromise the ability of future generations to meet their needs.

3.2. The primary legislation governing the planning process is contained in three Acts of Parliament:

3.4. The Town and Country Planning Act 1990 has since been amended by the Planning and Compensation Act 1991 (c.34) and by the minerals provisions of the Environment Act 1995 (c.25). These three acts provide the basis for control of mineral development in England and Wales.

3.5. Planning permission is required for any development of land, defined as "the carrying out of building, engineering, mining or other operations in, on, over or under land, or the making of any material change in the use of any buildings or other land". Oil and gas developments are termed "mineral developments" and require permission from the county Mineral Planning Authorities who will judge each proposal in accordance with their development plans ². Operating conditions are imposed to control the environmental impacts of the works and, restoration and aftercare conditions are imposed to ensure that land worked for minerals is suitable for a beneficial after - use.

3.6. The essential role of mineral planning authorities in relation to mineral working is to ensure that a proper balance is struck between the supply of minerals and the capacity of the environment to absorb the impact of extraction. There are five key areas that authorities will consider in development control:

3.7. Further information may be obtained in the Government's draft Mineral Planning Guidance notes ³.

3.8. For certain types of development likely to have significant effects on the environment by virtue, inter alia, of their nature, size or location, applications for planning permission must be accompanied by an environmental statement prepared in accordance with the requirements of the environmental impact assessment regulations (ref. Section entitled: Environmental impact assessment ).

3.9. In considering new planning applications, the local authorities will consult the various environmental protection agencies and other relevant parties having an interest in the development, such as English Nature, the Countryside Commission for Wales and Scottish Natural Heritage, who will assess the development for its likely environmental impact within their area of interest and against applicable environmental legislation.

3.10. The Petroleum (Production) (Landward Areas) Regulations 1995 were made under the Petroleum (Production) Act 1934; the latter being replaced by the Petroleum Act 1998 (c.17). Under these regulations, any exploration, development, production and abandonment of onshore oil and gas is controlled under licences grated by the Secretary of State for Trade and Industry. The onus is upon the developer to obtain all the relevant planning permissions from the respective authorities. For coalbed methane developments, this includes gaining permission from the owner of the coal, usually the Coal Authority.

4. Environmental impact assessment

Town and Country Planning (Environmental Impact Assessment) (England and Wales) Regulations 1999 and Environmental Impact Assessment (Scotland) Regulations 1999

4.1. Environmental impact assessment (EIA) is an important technique for ensuring that the likely effects of new developments on the environment are fully understood and taken into account before the development is allowed to go ahead. Formal EIA was introduced in the UK in 1988 via statutory regulation, following the adoption of EC Directive (85/337/EEC) on the "Assessment of the effects of certain public and private projects on the environment". This Directive, known as the EIA Directive, was amended by EC Directive 97/11/EC with the changes coming into effect in March 1999. For projects that require planning permission, the relevant Regulations are the Town and Country Planning (Environmental Impact Assessment) (England and Wales) Regulations 1999 (SI 1999/293), and the Environmental Impact Assessment (Scotland) Regulations 1999 (SSI 1999/1), which are administered by the local authorities. These replace earlier regulations made in 1988 and extend the range of projects that are subject to EIA, with a small number of important procedural changes.

4.2. Projects that receive a consent outside of the planning system may be subject to other Regulations (see also Table 1 in Section entitled: Summary).

4.3. For a project that requires planning permission, formal EIA is only necessary if the development in question falls within Schedule 1 or Schedule 2 of the Regulations. Proposals which fall within a category in Schedule 1 always require Environmental impact assessment. Schedule 2 includes the following developments:

4.4. Those which fall within Schedule 2 require EIA if the development is likely to have a significant effect on the environment. The local authority determines whether EIA is required for a Schedule 2 developments, in accordance with screening criteria provided in the Schedule 3 of the Regulations. These include the following developments (where not covered by the above):

4.5. Under the 1999 Regulations, pipelines subject to planning control have been re -classified. However, in practice this has no effect. As has always been the case, pipelines of more than 10 miles (16 km) in length require authorisation from the Secretary of State for Trade and Industry (ref. Paragraph 4.6). Pipelines 10 miles long or less require planning permission and are therefore subject to the 1999 Regulations.

4.6. Construction of oil and gas pipelines, of more than 10 miles (16 km) in length, require the authorisation of the Secretary of State for Trade and Industry under Section 1 of the Pipelines Act 1962. Environmental impact assessment of pipelines constructed under this Act is covered by the Pipe - line Works (Environmental Impact Assessment) Regulations 2000 (SI 2000/1928), which came into force on 1 September 2000 and which require an Environmental Statement to be submitted to the DTI (although such a statement need not be submitted if the Secretary of State is satisfied that the work in question is not likely to have a significant impact on the environment). These Regulations only apply to pipelines subject to Section 1 of the Pipelines Act 1962 (c.58).

The Public Gas Transporter Pipe-line Works (Environmental Impact Assessment) Regulations 1999

4.7. Pipelines constructed by a public gas transporter (PGT) under the Gas Act 1986 (c.44) will require an environmental impact assessment if their diameter exceeds 800mm and their length 40 km. Other PGT pipelines which have a design operating pressure exceeding 7 bar gauge; and the whole or any part which, or the whole or any part of the working width of which will be within a sensitive area may require an EIA if the impact is likely to be significant. The DTI will determine whether such works should be made the subject of an EIA, in accordance with the requirements of The Public Gas Transporter Pipe - line Works (Environmental Impact Assessment) Regulations 1999 (SI 1999/1672).

4.8. Any new Environmental Statements prepared, whether offshore or onshore under the respective legislation, must take account of the EC Directive (92/43/EEC) on the "Conservation of natural habitats and of wild fauna and flora" ("the Habitats Directive"), which is effected through the Conservation (Natural Habitats, &c) Regulations 1994 (SI 1994/2716), as amended in 1997 and 2000 (the 2000 amendments affecting England only). The Directive's key objectives are to promote the preservation, protection and improvement of the quality of the environment which includes the conservation of natural habitats. The Habitats Directive introduces the concept of "Special Areas of Conservation (SAC)", some of which will straddle land and sea, and requires member states to designate these and other important natural habitats, such as special protection areas under the Council Directive (79/409/EEC) on the "Conservation of wild birds".

4.9. Under the Regulations, where a development is likely to have a significant effect on a "European site" (defined by reference to the Directives), the local planning authority must carry out an assessment of the implications for the site prior to giving consent for a development. Authorisation for development may be withheld where the integrity of a "European site" may be adversely affected.

5. Storage of hazardous substances

Planning (Control of Major Accident Hazards) Regulations 1999 (SI 1999/981) (England and Wales) Planning (Control of Major Accident Hazards) (Scotland) Regulations 2000 (SI 2000/179)

5.2. The storage of certain hazardous substances on, over or under land above a specified quantity (the "controlled quantity") is required to be licensed by the local authorities . The controlled quantity is calculated by aggregating the quantity of a substance in the "controlled zone".

5.3. The amended Regulations include (at Schedule 1) a comprehensive list of hazardous substances and those which are applicable to the hydrocarbon industry include:

5.4. The local authorities will ensure that the objectives of preventing major accidents and limiting their consequences are taken into account in land-use planning policies and that these objectives are pursued through controls. They will also take account of land-use controls when considering applications to site potentially hazardous installations.

5.5. These Regulations implement the EC Directive (96/82/EC) on the "Control of major accident hazards involving dangerous substances" except Article 12 which relates to land use planning (ref. Paragraph 5.1). The Regulations impose requirements with respect to the control of major accident hazards involving dangerous substances and apply to establishments which store listed dangerous substances in quantities exceeding thresholds.

5.6. Applying the definitions for hazardous substances as in Paragraph 5.3, the qualifying quantities are given as:

5.7. Operators covered by the Regulations are required to take necessary measures to prevent major accidents and to limit their consequences to persons and the environment. This includes preparation and implementation of policies and systems to meet these objectives. They are also required to provide details and amounts of dangerous substances held at the site; significant increases in the quantities held or changes to the nature or physical form of the substance; and to report any major accidents to the competent authorities: the Environment Agency or SEPA acting jointly with the Health and Safety Executive (HSE).

5.8. Operators are also required to prepare safety reports for HSE approval; and to develop on-site emergency response plans in consultation with employees, the local authority , health authorities, emergency services and the Environment Agency / SEPA. The local authority will develop off-site emergency response plans in consultation with the Environment Agency / SEPA, health authorities, emergency services and the operator (the latter having a duty to supply the necessary information), together with appropriate members of the public. Both plans must be reviewed and tested at intervals of not more than three years. The operator is also required to notify local residents of the presence of a hazardous facility in the area and advise courses of action in the event of an accident. 5.9. The competent authorities will carry out appropriate inspections of the sites and are empowered under the Regulations to prohibit the operation of an establishment.

6. Waste disposal (solid and liquid)

6.1. The Groundwater Regulations 1998 (SI 1998/2746) complete the implementation of the EC Groundwater Directive (80/68/EEC) and supplement Regulation 15 of the Waste Management Licensing Regulations 1994 (ref. Paragraph 6.4). The Regulations, whose purpose is to protect groundwater, apply both in England, Wales and Scotland and effectively extend existing controls, contained in the Water Resources Act 1991 (c.57), over the discharge of polluting matter to controlled waters, including groundwater. The Regulations include two lists of substances and seek to protect groundwater by preventing the direct or indirect discharges of list I substances and to control pollution resulting from the direct or indirect discharges of list II substances. Under the Regulations, disposal of listed substances may only be carried out with the prior authorisation of the Environment Agency / SEPA. Hydrocarbons and mineral oils are list I substances, therefore, their disposal to groundwater is not permitted.

6.2. However, under Regulation 4 (5) there is a relaxation of this general prohibition if "investigations reveal that the groundwater in permanently unsuitable for other uses …… and conditions are imposed which require that all technical precautions are observed to prevent that substance from reaching other aquatic systems or harming other ecosystems"; or if "the discharge is due to the re -injection into the same aquifer of water used for geothermal purposes, water pumped out of mines and quarries or water pumped out for civil engineering works."

6.3. Permission to discharge listed substances to groundwater is granted by the Environment Agency / SEPA through issue of one of the following permits: discharge consent (under the Water Resources Act 1991), Groundwater Regulations Authorisation, IPC or IPPC licence if the site in question is an IPC or IPPC site, or a Waste Management Licence which implements the Groundwater Directive by virtue of Regulation 15.

6.4. These regulations bring into force the waste management licensing system under Part II of the Environmental Protection Act 1990 (c.43) and implement certain EC Directives relating to waste, namely 75/439/EEC on the "Disposal of waste oils"; 80/68/EEC on the "Protection of groundwater against pollution caused by certain dangerous substances"; and 75/442/EEC (the "Waste Framework Directive") as amended by Directives 91/156/EEC and 91/692/EEC. The Waste Framework Directive, as amended, requires Member States to take measures to ensure that waste is recovered or disposed of without endangering human health or harming the environment, and in particular:

6.5. The Waste Framework Directive has been largely implemented through Part II of the Environmental Protection Act 1990 and the 1994 regulations.

6.6. It is also intended that the Community as a whole should become self - sufficient in waste disposal .

6.7. All acts of waste disposal, whether above or below ground, require authorisation from the Environment Agency / SEPA under the Regulations, with a few exceptions. This includes 'deep injection of wastes into wells, salt domes or naturally occurring repositories' and storage of wastes in ponds or lagoons. Storage of waste material for subsequent re -use is exempt from waste management licensing. Also exempt is the disposal of material from a borehole (with some conditions) made for the purpose of 'mineral exploration'. The term 'mineral exploration' could broadly be interpreted to include hydrocarbon exploration.

6.8. This Directive, commonly known as the Landfill Directive, was agreed in Europe on 26 April 1999 and must be transposed into national legislation by 16 July 2001. Its main objective is to prevent or reduce as far as possible the negative effects of landfilling waste on the environment (surface water, groundwater, soil, air and the global environment) and human health. It will ensure that landfill sites across the European Union face strict regulatory controls on their operation, environmental monitoring and long - term care after closure. The Directive defines "landfill" as a waste disposal site for the deposit of waste onto or into land (i.e. underground). It requires Member States to prevent the landfilling of certain types of waste (Article 5 (3)). These include liquid wastes, untreated waste (unless treatment is technically unfeasible or has no health or environmental benefit) and hazardous wastes not meeting certain criteria (Article 6).

6.9. Conventional processes undertaken by the oil and gas industry for the recovery of hydrocarbon products are not covered by the Waste Framework Directive and will therefore not fall under the scope of this legislation. This includes such processes as re -injection of produced water; injection of liquids such as acids, surfactants, biocides, and corrosion inhibitors for reservoir management and well maintenance; use of drilling muds, cleaning fluids and cuttings re - injection. However, any additional waste disposal activities undertaken by the onshore industry and which currently require a waste management licence will be subject to the requirements of the legislation and operators will be requested to submit a "conditioning plan" to the Environment Agency / SEPA by July 2002 advising how they will implement its requirements "as soon as possible" and no later than July 2009. Under this legislation, re - injection of non- process or 3rd party liquid wastes into underground reservoirs will be prohibited as Article 5 of the Directive bans all disposal of liquid waste to landfill.

6.10. The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal was adopted in 1989 and entered into force on 5 May 1992. The Convention is the response of the international community to the problems caused by the annual world -wide production of 400 million tonnes of wastes which are hazardous to people or the environment because they are toxic, poisonous, explosive, corrosive, flammable, eco-toxic, or infectious. This global environmental treaty strictly regulates the transboundary movements of hazardous wastes and provides obligations to its Parties to ensure that such wastes are managed and disposed of in an environmentally sound manner. Within the EU, this convention is implemented through the EC Regulation (259/93) on the "Supervision and control of shipments of waste within, into and out of the European Community". The requirements of the Convention were implemented in the UK through the Transfrontier Shipment of Waste Regulations 1994 (SI 1994/1137). The DEFRA and the Environment Agency / SEPA are the competent authorities with respect to transit and dispatch / destination respectively.

6.11. The draft Water Framework Directive will provide an integrated EC policy on water. It aims to maintain and improve the aquatic environment in the EU, inter alia through the progressive reduction of emissions, discharges and losses of certain hazardous substances, with the ultimate aim of their cessation. The extent of the legislation is to cover all surface and groundwaters, and coastal waters up to one nautical mile from the baseline (from which territorial waters are measured). Under Article 11, authorisation is required for re-injection of process wastes into geological formations, such as produced water, drill cuttings and other substances relating the operations . Injection of substances not related to the operation will not be permitted. The details and timetable for implementation of this directive in the UK have not yet been established.

7. Air emissions

7.1. Under the Energy Act 1976, consent is required by the Secretary of State for Trade and Industry for natural gas to be disposed of (whether at source or elsewhere) by flaring or by releasing it unignited into the atmosphere (venting). This applies to all onshore hydrocarbon fields as well as offshore fields. Consent for flaring is also required under The Petroleum (Current Model Clauses) Order 1999.

Air Quality (England) Regulations 2000 (SI 2000/928) [SSI 2000/97 in Scotland and SI 2000/1940 in Wales]

7.2. These Regulations prescribe air quality objectives for seven air pollutants. They replace the Air Quality Regulations 1997 and relate to Part IV of the Environment Act 1995, which requires local authorities to review and assess the quality of air within their area and, where necessary, to develop plans for improving air quality which does not meet national objectives. The reviews have to consider air quality at the present time and the likely future air quality during a specified period. Such reviews have to be accompanied by an assessment of whether any prescribed air quality standards or objectives are being achieved or are likely to be achieved within the relevant period. Where any of the prescribed objectives are not likely to be achieved, the authority will have to develop an action plan for that area setting out how it intends to exercise its powers to achieve the objectives. Objectives are prescribed for benzene, 1,3 - butadiene, carbon monoxide, lead, nitrogen dioxide, particulate matter (PM10) and sulphur dioxide. The limits apply in non - occupational, near-ground level, outdoor locations where people might reasonably be expected to be exposed over the relevant averaging period for each pollutant. There are no emission limits for carbon dioxide; this is addressed by the Global Warming Treaty (ref. Paragraphs 7.6 to 7.9).

Environmental Protection (Controls on Substances that Deplete the Ozone Layer) Regulations 1996 (SI 1996/506)

7.3. The United Nations Environment Programme (UNEP) has been addressing the issue of ozone depletion since 1977. Under the auspices of UNEP, the Governments of the world arrived at The Vienna Convention on the Protection of the Ozone Layer in 1985. Through this Convention, governments committed themselves to protect the ozone layer and to co-operate with each other in scientific research to improve understanding of the atmospheric processes.

7.4. The Montreal Protocol on Substances that Deplete the Ozone Layer was agreed to by Governments in 1987 and has been amended four times so far. Its control provisions were strengthened through four adjustments to the Protocol adopted in London (1990), Copenhagen (1992), Vienna (1995) and Montreal (1997). The Protocol aims to reduce and eventually eliminate the emissions of man - made ozone depleting substances.

7.5. EC Regulation (3093/94) on "Substances that deplete the ozone layer" brings into force the Vienna Convention and the Montreal Protocol, and is given legal effect in the UK through the Environmental Protection (Controls on Substances that Deplete the Ozone Layer) Regulations 1996. These Regulations are administered by the DEFRA and effectively control the production, supply, use, trading and emission of certain "controlled substances" that deplete the ozone layer. The UK has basically been able to meet the requirements of the Protocol through the voluntary co-operation of industry and consumers in reducing their use of CFCs.

7.6. In 1992 the Earth Summit was held in Rio de Janiero, Brazil during which the Framework Convention on Climate Change (FCCC), better known as the Global Warming Treaty, was ratified. The FCCC does not contain binding targets for greenhouse gas emission reductions, but recognises that reducing greenhouse gas emissions to their 1990 levels by the year 2000 would be beneficial.

7.7. In 1994 the Berlin Mandate was approved, committing signatories to open negotiations to extend and strengthen commitments under the FCCC, including new emission reduction targets beyond 2000. Developing nations were explicitly exempted from these new commitments.

7.8. The Kyoto Protocol under the FCCC was agreed in December 1997 and imposes targets on industrialised countries to reduce overall emissions of greenhouse gases by at least 5% below 1990 levels in the period 2008 to 2012.

7.9. EC Decision (93/389/EEC) for a "Monitoring mechanism of community CO² and other greenhouse gas emissions" (and as amended by 1999/296/EC) requires member states to devise, publish and implement national programmes for limiting and/or reducing greenhouse gases not controlled by the Montreal Protocol. The UK has a legally binding target under the Kyoto Protocol (once it has been ratified) to reduce a basket of 6 greenhouse gases by 12.5% below 1990 levels in the period 2008-2012 and a domestic goal to cut CO² emissions by 20% below 1990 levels by 2010. The UK climate change programme contains a balanced package of policies and measures across all sectors to tackle climate change in the UK.

Convention on Long -Range Transboundary Air Pollution (Convention on Prevention of Air Pollution)

7.10. This Convention, which was adopted in Geneva in 1979, was drawn up under the auspices of the UN Economic Commission for Europe and came into force in 1983. It arose as a result of concern from some countries that the long range transport of certain pollutants (mainly sulphur dioxide and nitrogen oxides) was having an adverse effect on the environment of their countries. The Convention says that countries will "endeavour to limit and, as far as possible, gradually reduce and prevent air pollution, including long - range transboundary air pollution." Associated Protocols have been adopted which are aimed at reducing emissions of sulphur, nitrogen oxides, volatile organic compounds (VOCs) and ammonia, heavy metals (cadmium, lead and mercury) and persistent organic chemicals (to include pesticides, dioxins and furans).

7.11. A number of EC Directives set air quality limits on certain pollutants and requirements for approving discharges from industrial sources. This includes the Integrated Pollution Prevention and Control (IPPC) Directive (ref. Paragraphs 9.6 to 9.8).

8. Noise and vibration pollution

8.1. The main legislation in control of noise nuisance is the Town and Country Planning Act 1990 [1997 in Scotland] (ref. Paragraphs 3.1 to 3.9). Noise will be considered as a criteria for any development under the Planning regime and in some cases may require an environmental impact assessment to be carried out. For construction sites and operating industries, the principal legislative controls are:

8.2. Details of these Acts relating to noise nuisance considered to be of potential relevance to the onshore hydrocarbon industry are described below.

8.3. Sections 60 -61 of this Act are specifically concerned with noise pollution from construction sites and enable local authorities to impose noise limits on construction activities. Local authorities are empowered under Sections 63-67 of the Act to designate certain areas as Noise Abatement Zones, whereby specified noise limits may not be exceeded.

Environmental Protection Act 1990, Part III and the Environmental Act 1995, Part V

8.4. Duties of the local authorities under Sections 57-59 of the Control of Pollution Act 1974 were supplanted by provisions in the Environmental Protection Act 1990, which were extended to Scotland through the implementation of Section 107 and Schedule 17 of the Environment Act 1995, Part V.

8.5. These parts of the Acts require local authorities to ensure that noise levels do not exceed those which could be deemed a nuisance or harmful to health. Local authorities are also required to investigate complaints of statutory nuisance in their area and will serve an abatement notice where satisfied that a statutory nuisance exists. This may include prohibiting or restricting the occurrence or recurrence of the nuisance.

8.6. Under the IPPC EC Directive noise and vibration pollution is described as that "which may be harmful to human health or the quality of the environment, cause offence to any human senses, result in damage to material property, or impair or interfere with amenities and other legitimate uses of the environment". These nuisances will be controlled by the Environment Agency / SEPA under the IPPC regime (ref. Paragraphs 9.6 to 9.8).

9. Pollution emissions

Environmental Protection (Prescribed Processes and Substances) Regulations 1991

9.1. Integrated Pollution Control (IPC) is the system introduced in 1991 (under Part I of the Environmental Protection Act 1990) under which the Environment Agency / SEPA regulates the largest and potentially most polluting industrial processes, e.g. power stations. The following hydrocarbon processes, as prescribed by The Environmental Protection (Prescribed Processes and Substances) Regulations 1991 (SI 1991/472), require authorisation if they are likely to release prescribed substances:

9.2. Exploration trials, drilling operations and oil well sites solely pumping all produced fluids in totally enclosed piping systems, without storage or separation, are not prescribed processes.

9.3. The Environment Agency / SEPA issues authorisations containing conditions based on the principle of 'Best Available Techniques Not Entailing Excessive Cost' (BATNEEC) for preventing or minimising pollution emissions, having due regard for Best Practicable Environmental Option (BPEO). Under the same legislation, Local Authorities control potentially less polluting industries, but only in respect of emissions to air under a system known as Local Air Pollution Control (LAPC).

9.4. Local Authorities also have environmental protection control powers under the planning regime and are able to impose conditions in relation to pollutants that are not controlled under any other regulatory system. In general, this relates to pollution from noise, vibration, odour, dust and traffic.

9.5. IPC will be replaced by Integrated Pollution Prevention and Control (IPPC) through a phased implementation schedule (ref. Paragraphs 9.6 to 9.8).

Pollution Prevention and Control (England and Wales) Regulations 2000 (SI 2000/1973) Pollution Prevention and Control (Scotland) Regulations 2000 (SSI 2000/323)

9.6. The Integrated Pollution Prevention and Control (IPPC) Directive (96/61/EC) broadens the scope of IPC, both in terms of the activities that are controlled and the measures that can be applied to them. The directive is implemented in the UK through the Pollution Prevention and Control Act 1999 (c.24), which repeals Part 1 of the Environment Protection Act 1990, and the Pollution Prevention and Control (England and Wales) Regulations 2000 (and similar in Scotland). IPPC requires that:

9.7. This goes considerably beyond existing IPC controls and, in particular, will include many of the things currently controlled by Local Authorities through their planning powers, eg noise, vibration and odour. The introduction of IPPC centres on creating a more integrated approach to pollution control. A key component of this philosophy will be to move away from the current system of controlling each industrial or chemical process as a separate entity to controlling all processes which occur at the same site and which link together as a single installation.

9.8. New or modified installations cannot be brought into operation without an IPPC licence, issued by the Environment Agency / SEPA. Existing installations will come under IPPC according to a transitional schedule. Activities covered by IPPC, related to the hydrocarbon industry, include:

It is a condition of the petroleum production licence granted by the Secretary of State for Trade and Industry under The Petroleum Act 1998 (c.17) that an operator takes all steps practicable in order to prevent the escape of petroleum into any waters or water bearing strata in or in the vicinity of the licensed area. In addition, the licensee shall use methods and practice customarily used in good oilfield practice for confining the petroleum obtained from the licensed area in tanks, gasholders, pipes, pipelines or other receptacles constructed for that purpose

10. Implications of the regulations

10.1. All onshore hydrocarbon fields require an exploration, development and production licence from the Department of Trade & Industry.

10.2. Under the current planning regime, development of petroleum production facilities above a certain capacity will require planning permission and the preparation of an Environmental Statement. However, considering the current onshore fields and based on 1999 production figures, this would only apply to installations on the scale of Wytch Farm.

10.3. Small scale production facilities and drilling of exploratory and production wells will only require an Environmental Statement if any of the sites are in a sensitive location or are unusually sensitive to disturbance from drilling. Each will be judged on a case-by -case basis by the local planning authorities. Pipelines or flowlines will require an Environmental Statement if they are greater than 16 km in length (unless constructed by a public gas transporter under the Gas Act 1986, in which case other criteria apply, ref. Paragraphs 4.6 and 4.7).

10.4. All new production installations will require an IPPC licence before commencement of operations. To obtain this, the operator will be required to demonstrate to the Environment Agency / SEPA that it will manage its pollutants through the use of Best Available Techniques (BAT). Existing installations also currently require an IPC licence and will in the future require an IPPC licence.

10.5. Cuttings produced from drilling wells consist of rock fragments and drilling muds, which may contain either water-based or oil-based compounds. Water- based muds usually contain biodegradable compounds, whilst oil-based muds usually contain diesel and are used for drilling certain types of rock formation. The volume of cuttings produced depends upon the depth of the well and the diameter of the drill hole. Disposal of cuttings may be to a licensed landfill site, local burial, or they may be re - injected into a geological formation. The latter practice has been carried out at Wytch Farm.

10.6. Cuttings re-injection will be permitted under the Landfill Directive, but will require a Waste Management Licence under the Waste Management Licensing Regulations. This will not change with the introduction of the Water Framework Directive. For local burial of cuttings, the requirements of the Landfill Directive will need to be implemented and a "conditioning plan" submitted to the Environment Agency / SEPA. Under the Water Framework Directive, it would also need to be demonstrated that water resources could not be contaminated by disposal of the drill cuttings.

10.7. For typical hydrocarbon installations covered by this guidance note, the primary hazardous substances covered by the major accident hazard regulations (ref. Paragraphs 5.1 to 5.9) are natural gas, crude oil and condensate. It is not normal practice for these hydrocarbon installations to store these products in sufficient quantities so as to warrant their control under the regulations. However, should this be the case, they would require to be licensed by the local authorities. The operators of these facilities would also have to implement systems for management of these substances and provide reports to the Environmental Agency / SEPA under the COMAH Regulations.

10.8. Fugitive emissions, in relatively small volumes, can be expected from oil storage tanks, valves, pipe fittings and instruments. These largely comprise volatile organic compounds (VOCs, including methane) which are a range of hydrocarbon gases, some of which contribute to depletion of stratospheric ozone. Most contribute to the formation of tropospheric ozone and the associated problems of photochemical smog by reactions with nitrogen oxides in the presence of sunlight. Some, such as benzene, are toxic and carcinogenic. VOCs also behave as greenhouse gases, linked to global warming.

10.9. Individually, the volume of the VOC emissions is usually small, but collectively they may be significant in certain areas of poor air quality.

10.10. There are no prescribed emission limits for these substances in the UK. However, guidance is given under the LAPC regulated processes for the prevention and minimisation of VOC emissions to air (PG1/13 (96) and PG1/14(96)). It is likely that the Environment Agency / SEPA will also address VOC emissions through the IPPC licensing process. Since handling and storage of petroleum products is a prescribed activity under IPPC, then all onshore fields will be included within this legislation.

10.11. A licence for venting is required from the Department of Trade & Industry.

10.12. The burning of hydrocarbon gas and liquids in flares, gas turbines, power generators and fired heaters results in emissions of combustion gases to the atmosphere. The combustion products comprise mainly carbon dioxide, with smaller volumes of nitrogen oxides, sulphur dioxide, carbon monoxide and, to a lesser extent, particulate matter and methane derived from incomplete combustion processes.

10.13. Carbon dioxide is associated with rises in global temperature and enhanced global warming. Concern about this issue is being addressed internationally through the Kyoto Protocol on Climate Change. Whilst the UK government is aiming to reduce the volume of greenhouse gases emitted, there are no specific emission limits laid down in legislation. Combustion emissions and energy efficiency generally will need to be addressed in the application for an IPPC licence.

10.14. Nitrogen oxides comprise NO which oxidises in the atmosphere to form NO², which is a contributor to acid rain. Nitrogen oxides, as a final oxidative product, can lead to the formation of low level photochemical ozone, in the presence of VOCs and sunlight. They are linked to health, particularly respiratory, impacts such as asthma and bronchitis.

10.15. Sulphur dioxide is an acidic gas which is a component of acid rain and contributes to low air quality.

10.16. Carbon monoxide is a toxic gas, generated as a result of incomplete combustion, with a global warming potential 2 to 3 times higher than that of carbon dioxide.

10.17. The particulate fraction of any exhaust emission represents a complex mixture of inorganic and organic substances largely comprising elemental carbon, ash minerals, heavy metals and a variety of non or partially combusted hydrocarbons.

10.18. Methane is the major constituent of natural gas. It has a strong global warming potential, some 21 times that of CO² over a twenty year time horizon.

10.19. The fate of gases and particulate emissions in the atmosphere is dependant upon the location of pollutants within the stratified atmosphere and the prevailing conditions, including dilution, coagulation, physio-chemical reactions and deposition. Their effects on the local receiving environment will also be dependent upon the cumulative effects of other industry, contributing to overall poor air quality.

10.20. Local environmental impacts of poor air quality are controlled by the Air Quality Regulations which sets air quality objective levels for combustion emissions (excluding carbon dioxide). Any failures to meet these objectives will be addressed by the Environment Agency / SEPA, most likely through the IPPC licensing process.

10.21. Whilst all onshore fields will have fuel combustion equipment, IPPC generally applies to combustion equipment with a thermal input greater than 20 MW, which would normally exceed any combustion equipment likely to be installed solely for oil and gas production onshore, although 20 MW or less may be included as part of a production process.

10.22. A licence for flaring is required from the Department of Trade & Industry.

10.23. Water often accompanies the production of hydrocarbons from an oil or gas field and may be contaminated with heavy metals, dissolved organics, production chemicals and free hydrocarbons in varying concentrations. The environmental concern with regard to disposal of this produced water includes the fate and effects of the materials in the environment; and the content and amount of the materials to be discharged. The options for disposal of this water are to either remove the contaminants and discharge to a water body; store in a lagoon and allow the water to evaporate; or re -inject the water into a geological formation. This may be the actual hydrocarbon reservoir, in which case the water is used to assist hydrocarbon recovery, or it may be injected into a separate formation. For onshore fields in the UK, it is usually more practical and cost-effective to re-inject the produced water into the reservoir and simultaneously assist with hydrocarbon recovery.

10.24. Re-injection of produced water may sometimes be accompanied by other liquid wastes, such as liquid slugs from wet gas lines, oily water from drip trays or washdown water. The liquids would largely consist of water contaminated with hydrocarbon products.

10.25. The disposal of liquid wastes into a geological formation is currently covered by the Groundwater Regulations 1998 and the Waste Management Licensing Regulations 1994. Under these Regulations, permission to re-inject is granted by the Environment Agency / SEPA through the issue of a licence. This does not preclude injection of liquid wastes from other sources beyond hydrocarbon production. Produced water, however, is generally exempt from these regulations.

10.26. When the Water Framework Directive is implemented in the UK, it is likely that the Groundwater Regulations 1998 will be either updated or replaced to comply with the requirements of the new Directive. Under this Directive, re-injection of produced water and other process wastes will still be permitted with authorisation from the relevant governing body, however, injection of other substances (not from the reservoir) will not be permitted. Similarly, with the Landfill Directive.

10.27. Presently, a number of fields re -inject produced water and other liquid wastes, whether for disposal or recovery purposes. These are:

10.28. Solid waste generated onshore would most likely be disposed of to a licensed waste disposal facility. Any other disposal method, such as local landfill, will require a Waste Management Licence from the Environment Agency / SEPA. This is only likely to be of significance during the construction and abandonment phases of a facility, since during normal operations waste volumes will be small and will most likely be disposed of to a licensed landfill site. However, all acts of waste disposal will be subject to the Landfill Directive and, whilst non-process liquid waste disposal will be prohibited, solid waste disposal will be subject to scrutiny by the Environmental Agency / SEPA after its implementation into UK legislation in mid-2001.

10.29. Under the Montreal Protocol, the UK government aims to reduce and eventually eliminate ozone-depleting substances. Use of these substances is controlled under the Regulations and as a consequence, there is a general move away from ozone-depleting substances within the hydrocarbon industry.

10.30. The main sources of noise and vibration pollution from hydrocarbon installations are likely to emanate from:

10.31. New developments will be assessed by the local authorities for their likely impacts as part of the planning approval process. An environmental impact assessment may be required.

10.32. Construction noise will be monitored, assessed and controlled by the local authorities under the Control of Pollution Act 1974 to ensure specified noise limits are not exceeded.

10.33. In the future, noise and vibration pollution from operations will be a considered part of the IPPC licensing process and developers / operators will be required to demonstrate that Best Available Techniques (BAT) have been applied to minimise impacts.

Decommissioning of onshore wells and associated hydrocarbon installations will be addressed through IPPC legislation. Permission to decommission onshore wells is also required from the Department of Trade & Industry under The Petroleum (Production) (Landward Areas) Regulations 1995.

Legislation	Main Requirements	Regulator
Town and Country Planning Act 1990 (England and Wales); Town and Country Planning (Scotland) Act 1997; Planning and Compensation Act 1991;and Environment Act 1995	Planning permission is required for all hydrocarbon developments.	Local authorities / county councils
Petroleum Act 1998; and The Petroleum (Production) (Landward Areas) Regulations 1995	A licence is required for exploration, development, production and abandonment of all hydrocarbon	DTI
EC Directive (85/337/EEC): Assessment of the effects of certain public and private projects on the environment and Town & Country Planning (Environmental Impact Assessment) (England and Wales) Regulations 1999, Environmental Impact Assessment (Scotland) Regulations 1999	Requires certain developments to prepare an Environmental Statement as part of the planning approval process	Local authorities
Pipelines Act 1962; and Pipe-line Works (Environmental Impact Assessment) Regulations 2000	Requires pipelines over 16 km in length to prepare an Environmental Statement as part of the approval	DTI
Gas Act, 1986; and Public Gas Transporter Pipe-line Works (Environmental Impact Assessment) Regulations 1999	Requires certain pipeline developments to prepare an Environmental Statement as part of the approval	DTI
EC Directive (92/43/EEC); Conservation of natural habitats and of wild fauna and flora; and Conservation (Natural Habitats) Regulations 1994	Requires developments to take account of Special Areas of Conservation in their environmental impact	Local authorities
EC Directive (96/82/EC): Control of major accident hazards; and a) Planning (Control of Major Accident Hazards) Regulations 1999 [2000 in Scotland] b) Control of Major Accident Hazards (COMAH) Regulations 1999	A licence is required for storage of listed hazardous substances. Requires operators to implement certain management practices and report to the competent authorities.	Local authorities Environment Agency / SEPA
EC Directive (80/68/EEC) Groundwater; and Groundwater Regulations 1998	Discharges of listed substances which could pollute groundwater require to be authorised through	Environment Agency / SEPA
Environmental Protection Act 1990, Part II; and Waste Management Licensing Regulations 1994	Most wastes may only be disposed of at a facility operated by the holder of a suitable Waste Management	Environment Agency / SEPA
EC Regulation (259/93): Supervision and control of shipments of waste within, into and out of the Transfrontier Shipment of Waste Regulations 1994	A licence is required for transfrontier movement and disposal of hazardous waste.	DEFRA / Environment Agency / SEPA
Draft Water Framework Directive	As for the Groundwater Regulations 1998, but contains more stringent controls on the discharge of substances.	To be determined
Energy Act 1976; and The Petroleum Act 1998	Consent is required for flaring or venting or hydrocarbon gas. Requires licensees of an onshore field to ensure that petroleum is contained both above and below ground.	DTI
Environment Act 1995, Part IV; and Air Quality Regulations 2000	Sets emission limits for certain substances and requires authorities to take action where quality	Local authorities
EC Regulation (3093/94): Substances that deplete the ozone layer; and Environmental Protection (Controls on Substances that Deplete the Ozone Layer) Regulations 1996	A licence is required for the production, supply, use, trading and emission of certain "controlled substances" that deplete the ozone layer.	DEFRA
Control of Pollution Act 1974, Part III; Environmental Protection Act 1990, Part III; and Environment Act 1995, Part V.	Requires local authorities to take action where noise limits are exceeded.	Local authorities
Environmental Protection Act 1990, Part I; Environmental Protection (Prescribed Processes and Substances) Regulations 1991; and Pollution Prevention and Control Act 1999 and Pollution Prevention and Control Regulations 2000	Certain potentially polluting processes require to be licensed by the authorities. Industries must	Environment Agency / SEPA/ local authorities

Environmental legislation applicable to the offshore hydrocarbon industry (England, Scotland and Wales)

Contents

1. Summary

2. Introduction

3. The Planning System

4. Environmental impact assessment

5. Storage of hazardous substances

6. Waste disposal (solid and liquid)

7. Air emissions

8. Noise and vibration pollution

9. Pollution emissions

10. Implications of the regulations