PETROLEUM ACT 1998:OFFSHORE PIPELINES

Guidelines for the completion of pipeline works authorisations (PWA's)

Contents

Section 1 Need for guidelines

Section 2 Definitions

Section 3 Action required by companies Section 4 Summary of DTI process

Appendix A Application Checklist

Appendix B Consent to deposit materials on the seabed (Depcon)

Appendix C Consent for the discharge of the contents of a pipeline into the sea

Appendix D Useful addresses

1. Need for guidelines

Since the Guidance Notes for Petroleum and Submarine Pipelines were published in 1992 there have been some legislative changes. The Pipeline Safety Regulations 1996 were introduced by the Health and Safety Executive; as part of a consolidation exercise, the Petroleum Act 1998 repealed and replaced the Petroleum and Submarine Pipelines Act 1975 and the Offshore Petroleum Production and Pipelines (Assessment of Environmental Effects) Regulations came into effect in 1999. All have had an impact in the process of making an application for an offshore Pipeline Works Authorisation (PWA).

Please note that a Pipeline Works Authorisation should have been issued before construction of a pipeline or pipeline system begins. It is recommended that, before submitting an application, the prospective owner should informally consult both Pipelines Administration in DTI and the Health and Safety Executive at the earliest possible opportunity, to discuss the proposed scheme and the regulatory requirements involved. (For addresses and telephone numbers please see Appendix D).

Where there are no objections it takes approximately four months from receipt of the application to issuing the authorisation. In the case of pipelines in respect of which an environmental statement is required under the Offshore Petroleum Production and Pipelines (Assessment of Environmental Effects) Regulations 1999, the procedure may take longer in order for all the environmental issues to be properly considered. Further guidance on the effect of the 1999 Regulations can be found in the Environment section of this web site. Operators are therefore urged to submit their applications in good time to meet their deadlines.

2. Definitions

Offshore Pipeline

Under the Petroleum Act 1998 an authorisation is required for the construction and/or use of a "pipeline" in controlled waters.

A pipeline is defined as a pipe or system of pipes "for the conveyance of any thing, together with any apparatus and works associated with such a pipe or system". This includes pipelines used for the conveyance of hydrocarbons, water and chemicals. However, although other consents may be required for their construction/use, electric cables, drains and sewers are not pipelines under the 1998 Act, nor are hydraulic control lines or umbilicals of hydraulic controls.

Controlled waters means the UK territorial sea and any part of the sea on the UK continental shelf.

Holder of the PWA

The holder is the person to whom the authorisation is issued. An authorisation may not be issued to a person other than a body corporate.

The Users of a Pipeline

The users are the persons authorised by the PWA to use the pipeline for the purpose of conveying any fluid so authorised.

The Operator of a Pipeline

The operator is the person designated by the holder to be responsible for organising or supervising the construction or operation of the authorised pipeline in a manner which complies with the authorisation and, inter alia, with any relevant legislation existing at the material time. The works authorisation may name the operator as the holder.

Owner of the Pipeline

DTI requests details of the owner(s) in the application and in future these will be listed in the PWA. The Petroleum Act 1998 allows the Secretary of State to make an order, designating a person as the "owner" of a pipeline, after giving the person concerned an opportunity of being heard on the subject.

Pipeline Works Authorisation (PWA)

Under the Petroleum Act 1998 a "works authorisation" means an authorisation:

a. for the works for the construction of a pipeline;

b. for such works and for the use of the pipeline.

Deposit of Materials on the Seabed Consent (DEPCON)

Required before any materials e.g. rocks/ mattresses are placed on the seabed during construction of a pipeline or in order to maintain such a pipeline. (Full details Appendix B.)

Consent for Discharge of the contents of a Pipeline into the Sea (DISCON)

Required before a line is filled with chemicals or before any discharge (other than untreated seawater or sweet water) takes place. (Full details in Appendix C.)

3. Action required by companies

• At the design stage companies should make contact with the Health and Safety Executive (CHID): in Norwich for English/Welsh waters and in Aberdeen for Scottish waters.
• As soon as the route of the pipeline and basic technical details are known contact should be made with Offshore Pipelines Administration in the DTI Oil and Gas Office in Aberdeen to arrange an informal meeting.
• When planning is well under way (e.g. to the extent that it is known whether the pipeline is to be trenched or buried and what type of manifolds are to be used) early contact with local fishing organisations is advised. (This gives an opportunity for any problems to be highlighted and hopefully ironed out before the "official" consultation period.)
• It is important to ensure that the application (requirements given in Appendix A) contains all the required detail (though minor changes may be made at a later stage) and does not contain unnecessary information particularly in the form of pages of technical drawings.
• The application should be submitted in good time so the PWA may be issued before construction begins. (Approximately four months or longer if the pipeline cross a median line and there are likely to be treaty issues or where there may be environmental concerns and the possibility of objections is higher).
• Applicants should not hesitate to phone the case officer handling their application if they have any query regarding the content of the application or if they require clarification of the relevant legislation/procedure.
• The holder of the PWA must ensure that the terms of the authorisation are upheld and that DTI is given advance notice of any proposed modifications/variations and of any changes to the names/addresses of the holder/users/operator and owner

4. Summary of DTI process

• On receipt of an application, DTI will decide whether the application is to be considered further or rejected. Details of the application will be checked and if clarification or further details are required these will be requested from the company before the application is processed.
• The application will be forwarded to consultees for comment. (These are generally other
• Government Departments and users of the sea). The DTI does not send copies of the application to fishing federations as their interests will be covered by the appropriate Government Department (SERAD/MAFF).
• When any queries have been answered, the DTI (other than in the case of pipelines within 500 metre safety zones or those less than 500 metres in length) will normally notify the applicant that he is to proceed to Public Notice. This requires the applicant to publish and make available for inspection details/maps of his project in such publications and at such addresses as may be directed by the Secretary of State for a period of twenty-eight days.
• Schedule 2 to the Petroleum Act 1998 sets out the procedure for considering any objections to the application.
• Once objections have been resolved or if no comments have been received, the Pipeline Works Authorisation may be issued. (The PWA contains terms which must be adhered to and gives detail in tabulated form of the pipeline(s). Though not DTI legislation, a copy of the additional consent for the construction of the pipeline required under the Coast Protection Act 1949 will be enclosed with the PWA.
• DTI will inform all consultees of the issue of the PWA and arrange publication of a notice to this effect.

Appendix A

Application Checklist

Cover (NO RING BINDERS PLEASE):

• Name of Project
• Company contact with telephone number and fax/email numbers

Administrative Detail

• Copy of Executive summary from approved Field Development Plan (if applicable)

OR

• Brief description of project
• Licence and block number
• Approximate project location from shore
• Method of transportation to shore (if applicable)

AND

• Overall project layout diagram (and Navigational Charts) showing pipeline(s) to be covered by the Authorisation, route of the pipeline(s) giving geographical co-ordinates of start and end points; any change in direction and details of T and Y pieces
• Details of any landfall
• Method of pipeline installation
• Statement to effect that applicant has funds available to discharge any liability for damage attributable to the release or escape of anything from the pipeline (e.g. OPOL scheme)
• Where applicable, written agreement from other licensees whose blocks are traversed
• Where applicable written confirmation of crossing agreements or if this is likely to cause delay written confirmation from the owner of any pipeline whose pipe is being crossed that he has no objections
• Details stating:
  • by whom the application is being made;
  • on whose behalf the application is being made (with partners letters of agreement if applicable);
  • names and registered addresses of Holder; User(s); Operator and Owners
• Statement indicating whether or not there is likely to be a significant transboundary environmental impact (as described in the ESPOO convention)
• Paragraph stating action taken to satisfy any relevant environmental regulations (i.e. PON 15/PON 16 submitted or details of other ES which covers application).
• Paragraph describing decommissioning plans and including the statement "Options for the decommissioning of the pipeline will be considered at the end of the field life and will adhere to Government policies and regulations in force at the time."

Technical Details

• General statement of pipeline design (i.e. flexible, rigid - carbon steel, duplex etc.)
• Statement of design life of pipeline and estimated field life
• Product to be carried detailing fluid composition - breakdown by mol%
• Proposed operating limits
• Temperature, pressure and maximum rate of flow of fluid to be conveyed
• Geographical location of valves for any future tie- ins
• Whether pipeline(s) is to be trenched (+method) and /or buried
• Where applicable application, on appropriate form, for a DepCon/DisCon
• Dates when offshore construction/installation to is to start and when pipeline is planned to be brought into use. (This should be followed up letter confirming when the pipe -line has been brought into use)
• Proposed limits of deviation (recommended +/- 100 m)
• Where available 1 copy of bathymetric details of pipeline routes and details of sediments encountered during survey operations.

PLUS

• Completed TABLE A for each pipeline/umbilical, showing only main component parts
• Simple Schematic to illustrate information on the Table A. (One schematic may show information for several pipelines. Details of pipes inside manifolds not required)
• Where one has been prepared it is useful to have a 3D picture of the layout of the project (not necessarily to scale).

18 copies of the above are required (19 if the project is within Territorial Waters). Three copies of the Navigational Charts must be in colour.

Appendix B

Consent to deposit materials on the seabed (Depcon)

The permanent placing or deposition of materials such as gravel, rock, mattresses or protective pipeline covers on the seabed during the construction of a pipeline is governed by the Pipeline Works Authorisation. Schedule 2 of the authorisation prohibits any further deposition except with the prior written consent of the Secretary of State.

For pipelines which do not have a PWA, for example, pipelines constructed prior to the coming into force of the Petroleum and Submarine Pipelines Act 1975, any deposition would require a licence under the Food and Environmental Protection Act 1985 (FEPA). (Part II of FEPA only exempts from its provisions anything done "for the purpose of constructing or maintaining a pipeline as respects any part of which an authorisation is in force".)

FEPA is administered by the Ministry of Agriculture, Fisheries and Food (MAFF) as regards England and Wales, by the Scottish Executive Marine Laboratory on behalf of the DTI as regards Scotland and by the Department of Agriculture for Northern Ireland (DANI) as regards Northern Ireland. Applications for licences under FEPA should be made direct to the relevant Department.

Applications for consent to deposit materials under a PWA should be made to Offshore Pipelines

Administration at the DTI and copied to Health and Safety Executive on Form Depcon1. Where appropriate (simple) drawings showing where, for example, mattresses are to be placed, should accompany the form.

The information required by the form includes -

i. a description of the material to be deposited
ii. the quantity to be deposited
iii. in the case of rocks, the maximum size to be deposited
iv. the location of the proposed site.

In addition, the following further details are required -

• The length, width and height above seabed level which the material will attain when deposited;
• A statement of any consultations carried out so far
• A statement of any proposed consultations
• The approximate date on which deposition is proposed to begin and the approximate duration of the operation.

When a consent for a deposition of materials is given, it usually contains terms reserving to the Secretary of State the right to require removal of any materials deposited should they become a potential or actual hazard or obstruction to other seabed users. Removal may also be required at the end of the useful life of the pipeline.

The pipeline owner should consult relevant fishing organisations and other seabed users before any operation to deposit materials is begun and keep appropriate Government Departments advised of agreements reached. (This is usually covered in discussion with the fishermen about the pipeline project as a whole).

Please note that if any preparatory work, for example pipeline crossings, are to be put in place prior to the construction of the pipeline, the PWA should be requested early enough to undertake this work, otherwise a FEPA licence may be required. As stated above, it is only activities "for the purpose of constructing or maintaining a pipeline as respects any part of which an authorisation is in force" which are exempt from the provisions of FEPA.

Sample Depcon 1

[PIPELINE(S) / PROJECT NAME]

Details for Deposit Consent: Form DepCon 1

Appendix C

Consent for the discharge of the contents of a pipeline into the sea.

The discharge from a pipeline of substances, excluding untreated sea water or sweet water (but including untreated sea water or sweet water which may contain unquantified amounts of mill -scale or rust), into any waters in or around the United Kingdom is prohibited without an appropriate consent or licence.

The specific consent requirements in respect of discharges from a pipeline into the sea depend upon whether the pipeline in question is the subject of a Pipeline Works Authorisation. The position is as follows:

a. for pipelines built prior to the coming into force of the Petroleum and Submarine Pipelines Act 1975
(i.e. where no authorisation exists) discharges are subject to the Food and Environment Protection Act 1985 (FEPA) and would require a licence under that Act. (FEPA is administered by MAFF for discharges in English and Welsh waters, by SERAD - Marine Laboratory on behalf of the DTI in Scottish waters and by DANI for discharges in Northern Ireland waters)

b. pipelines which have a Pipeline Works Authorisation are exempt from the requirements of FEPA.

However, under the terms of the works authorisation, the prior written consent of the Secretary of State is necessary before a discharge can take place and an application for that consent should be made on Form DisCon1 to Pipelines Administration at the DTI.

In both cases, in determining whether to allow the operational discharge of pipeline substances into controlled waters regard would be given to the need:

i. to protect the marine environment, the living resources which it supports and human health;
and ii. to prevent interference with other legitimate users of the sea.

Notification of line fill and discharge

To hasten the process of issuing a discharge consent, prior notification of intended line fill should be given in all cases to Environmental Section at the DTI and the Health and Safety Executive, also to MAFF, SERAD, Marine Laboratory or DANI as appropriate.

[A minimum of three weeks notice should be given. It is advisable that notification takes place as early as possible, as recommendations may include advice on the use of alternative, less toxic, chemicals. An additional time allowance should be made for the processing of discharge consents for discharges near median lines and at borderlines between MAFF/SERAD and DANI.]

Particular attention is drawn to the prior notification which should be given in all cases of line fill involving radioactive substances, as subsequent discharges may also be subject to the Radioactive Substances Act 1993.

The procedure for obtaining a discharge consent under a PWA is set out below.

Details required:

i. the nature and chemical composition of the substance, including the trade name of the product and the name of the company distributing the product,

ii. the date on which it is proposed to discharge the substance

iii. the quantity, in cubic metres, of the substance it is proposed to discharge,

iv. the maximum rate, in cubic metres per hour, at which it is proposed to discharge the substance

v. the geographic co-ordinates, and height or depth in metres from the lowest astronomical tide (LAT), or the place at which it is proposed to discharge the substance,

vi. the total depth of water, in metres from LAT, at the point of discharge and particulars of the point and manner of discharge,

vii. the respective concentration of each of the chemicals, in parts per million, contained in the substance which it is proposed to discharge,

viii. the toxicity of each such chemical to marine organisms, or the toxicity of the total content of the substance or both,

ix. safety procedures for handling and storage, including line fill and discharge,

x. particulars of any means of dispersal,

xi. and such other information as may be requested.

Proposed concentrations and total diluted quantities in particular should be notified, as they affect the acceptability of the line fill proposals and, in turn, the operational discharge.

Method of discharge

In considering a schedule for discharges, the following points should be noted:

a. near-surface discharges from unmodified outlets at platforms should normally be by cascade over the platform structure to the sea surface;

b. mid -water discharges from platforms are preferable and should normally be made by means of at least two horizontally directed sub-sea nozzles;

c. horizontal discharges from submarine pipelines on the seabed should normally be avoided; pipe ends should be directed upward and have at least two nozzles;

Standard restrictions

The following considerations should be taken into account at all times:

a. Toxicity measurement
When the toxicity is likely to be high or the concentrations of discharged substances above normal, there may be a requirement for samples to be taken and analysed to demonstrate the speed and efficiency of dispersal.

b. Fluorescent indicators
Fluorescent indicators should not generally be used in concentrations greater than 15 ppm, or as approved by MAFF, DTI and DANI in specific areas.
Consents for discharges containing fluorescent indicators would normally require that the local MAFF/ SERAD - Marine Laboratory/ or DANI District Inspector be notified immediately before the discharge.

c. Manufacture of domestic water from seawater
It is strongly recommended that the operators of all equipment for the manufacture of domestic water from seawater within 1 kilometre of the point of discharge are advised to shut down during a pipeline discharge and for a suitable period thereafter which should not be less than twenty- four hours.

Monitoring

In certain cases, a condition of the consent to discharge may be that samples of seawater are taken at specific locations near the point of discharge. In these cases, operators would be instructed to employ an independent body approved by MAFF/SERAD Marine Laboratory or DANI as appropriate for collection and analysis of the samples and to submit the results to them.

Sample form DisCon 1

[PIPELINE(S) / PROJECT NAME]

Details for Discharge Consent: Form DisCon 1

Appendix D

Useful addresses

Applications to: