Environmental Regulations for NORWEGIAN Offshore Oil & Gas Industry

This profile has been produced with the assistance of Mr R.Gunnar Andresen and Ms Torunn Jorgensen from the Norwegian Petroleum Directorate and Mr Torger Lode from the Norwegian Oil Industry Association.

National Profile

Summary of Norwegian offshore regulatory measures

• Environmental Legislation apply

• Norwegian Petroleum Directorate is the co-ordinating regulatory body; the Norwegian Board of Health and the Norwegian Pollution Control Authority (SFT) are independent regulatory authorities.

• International agreements apply

• Economic incentives are in the form of CO2 tax

• Voluntary measures apply in the form of formal alliances between government and industry and consultative forums

• Environmental reporting of industry performance apply
  

Norway has a very strong regulatory framework in place, which is supported by a proactive industry. It blends environmental regulations and discharge permits with an emission tax, as well as open dialogue with industry. The Ministry of Industry andEnergy initiated an innovative and strategic consultative forum (MILJØSOK) and the oil industry association has been an active contributor to this forum. The association also supports operators with environmental reporting guidance. Overall the industry is in the international forefront regarding cost efficiency and environmentally friendly exploration and production operations.

Contact Information:

Mr R.Gunnar Andresen, Advisor, Norwegian Petroleum Directorate, PO Box 600, 4001 Stavanger, Norway Fax (47) 51 87 6167
e-mail: gunnar.andresen@npd.no

NN Statens helsetilsyn, P.O.Box 8128 Dep., NO-0032 Oslo, Norway, Telephone: 22 24 88 88 Fax:+47 22 24 95 90
E-mail: postmottak@helsetilsynet.dep.telemax.no

Ms Tone Sorgard, Norwegian Pollution Control Authority (SFT), P.O.Box 8100 Dep, NO-0032 Oslo Telephone: +47 22 57 34 00, Fax: +47 22 67 67 06, e-mail: tone.sorgard@sft.no, general e-mail: postmottak@sft.no

Other contact persons for further details:

Bente Jarandsen, HSE Advisor, The Norwegian Oil Industry Association, e-mail: firmapost@olf.no Mail address: PO Box 547, 4003 Stavanger, Norway. Phone: +47 51 84 65 00 Fax: +47 51 84 65 01

Related Websites:

Ministry of Petroleum and Energy(OED) website: http://www.oed.dep.no

Fact Sheet for the Norwegian petroleum activities, Environmental Report and other related publications are located on: publikasjoner
For English language you'll first have to go to http://www.oed.dep.no and press the related button.
Norwegian Oil Industry Association (OLF) website outlines environmental guidelines and has an up to date news site located at http://www.olf.no/

Information about MILJØSOK can be obtained by contacting: Bente Jarandsen, HSE Advisor,
e-mail: firmapost@olf.no Mail address: PO Box 547, 4003 Stavanger, Norway.
Phone: +47 51 84 65 00 Fax: +47 51 84 65 01

Norwegian Petroleum Directorate (NPD) website with details on new and amended regulations is located at http://www.npd.no/

Norwegian Pollution Control Authority (SFT) website outlines its role in relation to pollution control and is located at http://www.hmsetatene.no/english/dbafile2426.html

1. Major bodies that exercise regulatory control over environmental aspects of offshore operations directly or indirectly

The Norwegian Petroleum Directorate (NPD) exercises supervisory control of petroleum activities on the Norwegian Continental Shelf and on Spitsbergen. The directorate functions as an advisor to the Ministry of Petroleum and Energy (for energy issues) and the Ministry of Labour and Government Administration (for safety issues), and is responsible for providing all participants in the petroleum industry with guidance and information.
The NPD has a co-ordinating role in relation to the Norwegian Pollution Control Authority, and with the Ministry of Finance and the Ministry of Petroleum and Energy in regard to collecting the CO2 tax.
The Norwegian Pollution Control Authority (SFT, http://www.sft.no/) is an agency reporting to the Ministry of Environment. It has primary responsibility for oil pollution response and regulating the discharges into the sea of oil and chemicals from drilling and production activities. It also states the requirements regarding monitoring air and water pollution.

2. Major industry associations with instruments for environmental performance of offshore oil and gas activities

The Norwegian Oil Industry Association (referred to as OLF, http://www.olf.no/) promotes environmental, safety and health work within the industry and has implemented a strong environment programme (see question 6). It also has responsibility to co-ordinate the industry's efforts in mapping environmental impacts, development of technologies and co-ordination of research programmes. These studies provide a better understanding of the potential effect of industry activities on the environment and of, for example, the moderating effects of discharge reduction and use of more environmentally friendly chemicals.

3. National Regulatory Frameworks

i. Major environment legislation applying directly to offshore operations

The legal framework consists of Acts, regulations and guidelines for all petroleum activities. The main act is the Pollution Control Act (Act No 6 of 13 March 1981 concerning protection against pollution and concerning waste) which expresses a duty of preserving the environment so that pollution and waste will not lead to damage to nature or adversely effect the well being of people in general. This Act is administered by the SFT.
Other relevant Acts :

• The product control act (June 1976 No 79)
  

• Petroleum activity (November 1996 No 72)
  

• CO2 tax of petroleum activity on the continental shelf (December 1990 No 72)
  

Regulations relating to:

• Measurement of petroleum for fiscal purposes and for calculation of CO2 tax (November 2001)

• Petroleum Activities (June 1997 No 653)

• Health, environment and safety in the petroleum activities (September 2001)

• Management in the petroleum activities (September 2001)

• Conduct of activities in the petroleum activities (September 2001)

• Material and information in the petroleum activities (September 2001)

• Design and outfitting of facilities etc. in the petroleum activities (September 2001)

• Discharge of oil-contaminated drill cuttings from petroleum activity on the continental shelf (June 1991)

• Notification of acute pollution or the risk of acute pollution (July 1992)

• Safe practice in exploration drilling for petroleum deposits on Spitzbergen (March 19988)

• Supervisory activities (in regard to safety) in petroleum activities on the Norwegian continental shelf (June 1985)

Licenses are issued by NPD to operators at various stages of the exploration and production cycle, including before exploration, exploration drilling, manned underwater operations, putting facilities into service, major rebuilding of facilities or changes in the purpose of operation, disposal/removal/relocation of facilities, and removal of vessels which are of importance to safety. The application to obtain consent to proceed must contain information on the planned activities, choice of technical solutions, implementation and use of management systems, exception from regulations which may effect safety and measures taken to balance these departures.
Regulations and conditions of licensing are located on the NPD website at http://www.npd.no/norsk/regel/con_reg_start_eng.htm

ii. National environmental regulations which indirectly apply to offshore operations

Regulations relating to drilling, well activities and geological data collection are administered by NPD.

iii. Negotiated agreements on environment between industry and government

At this time there are no negotiated agreements between industry and government.

iv. Management instruments incorporated into national legislation

There are a number of requirements for operators to provide environmental data, including annual reports which give detailed information regarding discharges into the sea and emissions to air. The authorities also have requirements for operators on environmental reporting and accounting. The industry monitors the environmental impact from drilling and production. The industry usually produces detailed environmental performance reports with more data than that required by the authorities.

The OLF produces 'The Norwegian Oil Industry Association Environment Report' and outlines the industry's emissions, trends and prognoses. It particularly highlights atmospheric emissions, discharges to the sea, accidental spills, chemical controls, waste emissions including radioactive and disposal of installations. It also presents the results of ongoing and completed studies and projects. While OLF co-ordinates research and analytical reports, the overall responsibility of implementation of emissions reduction and environmental improvement measures, rests with the individual operating companies.

The operators are required to carry out monitoring surveys covering the sea bed and the water column around the installations. SFT has issued a document describing the investigations that are obligatory. (Guidelines for Environmental Monitoring of the Petroleum Activity at Sea) OLF takes part in this work by co-ordinating the operators, and by participation in updating the requirements.

The Norwegian Pollution Control Authority (SFT) also requires operators to record their discharges. For example with produced water discharges, operators are required to analyse the oil content in all effluent streams daily.
The authorities enforce strict environmental and safety requirements regarding the selection of chemicals. Operators must apply for discharge permits for all planned operations that involve discharges. There are detailed requirements regarding testing the environmental properties (biodegradation, potential for bio-accumulation and acute toxicity) for chemicals to be used, even if the operators do not plan chemicals to be discharged. The operators are required to phase out the most environmentally hazardous chemicals. When a new chemical is used by operators, it must be accompanied by a 'Harmonised Offshore Chemicals Notification Format (HOCNF). OLF has engaged a consultant to exercise quality control regarding the environmental information, and to collect the information in a database which may be accessed by the environmental authorities.

The Petroleum Act requires that a decommissioning plan for an installation must be developed and submitted 2-5 years before the use of the installation comes to an end. The decommissioning plan shall consist of a plan for the disposal of the installation and an environmental impact assessment (EIA).

In regard to management systems, the responsibility is placed onto the operator and others who participate in petroleum activities, to provide the necessary management tools for various activities and phases of petroleum activities. These must comply with all Acts and regulations.
The use of EMAS and ISO 14000 are voluntary by operators and some companies have started to implement the EMAS.

4. International agreements applied to offshore operations via national regulations

• OSPAR (Oslo-Paris) Convention -The Convention for the Protection of the Marine Environment of the North-East Atlantic (applies to offshore industrial activities)
  

• International Maritime Organisation (IMO) disposal regulations (applies to shipping activities)
  

• Long Range Transboundary Air Pollution (LRTAP) Convention
  

• Kyoto protocol (will be applied to Norway as a whole when ratified and entered into force)
  

• London Dumping Convention
  

• Montreal Protocol on Ozone Depleting Substances

The OSPAR Convention f regulates discharges into the sea. The purpose of the convention is the limitation and, where possible, the prevention of marine pollution by discharges into the sea of dangerous substances from land-based sources, offshore sources, watercourses or pipelines.

In respect to air emissions, Norway has signed internationally binding agreements on emissions of NOx (Nitrogen Oxides), VOC (Volatile Organic Compound) and halons under the Sofia Agreement (emissions on NOx), Geneva Agreement (emissions on VOC) and Montreal Protocol (emissions on halons). The Sofia and Geneva Agreements are two of the five elements of the LRTAP.

5. Major economic instruments applying directly to offshore environmental performance

A tax on CO2 emissions came into effect on 1 January 1991 on offshore production to act as an incentive to reduce air emissions. In a short time, the tax has increased energy efficiency with an increased focus on CO2 emissions and overall energy use in the petroleum sector.

6. Voluntary environment measures adopted by the national oil industry

Industry and Government Alliance
MILJØSOK is an alliance, initiated by the Ministry of Industry and Energy in 1995, between industry and government to promote initiatives to better meet the environmental challenges facing the oil and gas industry.
The first phase of MILJØSOK resulted in an extensive report in December 1996. The report provides an overview of the environmental issues it faces and then presents a set of objectives and targets for industry and the authorities to achieve, stressing the need for mutual and committed effort. Phase 2 of MILJØSOK aims to implement the recommendations from Phase 1 and develop flexible implementation mechanisms.
Work in MILJØSOK has shown that while the Norwegian petroleum industry has wide experience and good insight into environmental matters, it is still necessary to strengthen this further. The fundamental view maintained by all players in MILJØSOK is that 'a competitive industry is an environmentally efficient industry'.
The organisation of MILJØSOK consists of a Co-operation Forum, a Council and a Secretariat. The Co-operation Forum is a meeting place for open dialogue between stakeholders on the need and development of future environmental measures and instruments. It consists of representatives from the authorities, petroleum industry, suppliers, research institutions, NGO's, unions, fisheries and other stakeholders.
The Council is the catalyst for activities and recommends policies, guidelines for further action and the overall agenda of the Forum. It consists of representatives from the authorities and the oil companies.
The Secretariat is the working body for the Forum and the Council and contributes to communication between the two. The Secretariat has three full time employees and is located in OLF's offices in Stavanger.
The OLF Environment Report outlines many of the results of MILJØSOK, for example, MILJØSOK initiated a programme of measures and technologies for reducing total produced water discharges.

Environment Programmes

Through the OLF and in association with the Ministry of Petroleum and the Ministry of Environment, oil companies have implemented an Environment Programme to assess and improve technology measures to reduce air and sea emissions from its petroleum operations.
An example of one such project is the development of a simulation model by the Norwegian Institute for Atmospheric Research. The model aims to demonstrate how emissions such as NOx and VOC can be reduced.

Environmental Regulations for Norwegian Oil and Gas Industry-
Which instrument is used to deal with selected environmental issues.
INSTRUMENTS

* reporting and monitoring is required, the authorities audit the industry on a regular basis