Petroleum (Exploration and Extraction) Safety Act 2010

1.. Short title and commencement.

1.— (1) This Act may be cited as the Petroleum (Exploration and Extraction) Safety Act 2010.

(2) This Act comes into operation on such day or days as the Minister may appoint by order or orders either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

2.. Interpretation.

2.— In this Act—

“Act of 1999” means the Electricity Regulation Act 1999;

“Commission” means the Commission for Energy Regulation;

“Minister” means the Minister for Communications, Energy and Natural Resources.

3.. Regulation of petroleum activities.

3.— The Act of 1999 is amended—

(a) in section 2(1) by inserting the following definition after the definition of “natural gas undertaking”:

“ ‘petroleum undertaking’ has the meaning given to it by section 13A(1);”,

(b) in section 6 by inserting the following after subsection (2):

“(3) Proceedings for an offence under Part IIA of this Act committed in any part of—

(a) the licensed area (within the meaning of section 13A) to which subparagraph (i) or (ii), or both, of paragraph (a) of the definition of ‘licensed area’ relates, or

(b) a designated area,

may be taken, and the offence may for all incidental purposes be treated, as having been committed in any place in the State.”,

(c) F1[…]

(d) by inserting the following Part after Part II:

“PART IIA

REGULATION OF PETROLEUM ACTIVITIES

Interpretation (Part IIA).

13A.— (1) In this Part—

‘Act of 1960’ means the Petroleum and Other Minerals Development Act 1960;

‘Act of 1968’ means the Continental Shelf Act 1968;

‘Act of 1976’ means the Gas Act 1976;

‘approved safety case’ means a safety case in respect of a designated petroleum activity or activities which has been approved by the Commission pursuant to the provisions of this Part and includes any revision made to a safety case which—

(a) may take effect without prior approval of the Commission, or

(b) has been approved by the Commission;

‘Court’ means the High Court;

‘decommissioning’, in relation to petroleum infrastructure, means taking the facility, structure or installation or any part of such facility, structure or installation permanently out of use with a view to its abandonment in situ or removal;

‘designated area’ means an area designated by order under section 2 of the Act of 1968;

‘designated petroleum activity’ means a petroleum activity which is designated by regulations under section 13D as a petroleum activity which requires a safety permit under section 13P;

‘established petroleum activity’ means—

(a) a petroleum activity which, immediately before the coming into operation of this section is being carried on by a petroleum undertaking,

(b) is a designated petroleum activity for the purposes of this Part, and

(c) continues to be carried on after the coming into operation of this section by a petroleum undertaking;

‘foreshore’ has the same meaning as in section 1 of the Foreshore Act 1933;

‘internal waters of the State’ and ‘territorial seas of the State’ have the meanings assigned to them by Part 3 of the Sea-Fisheries and Maritime Jurisdiction Act 2006;

‘licensed area’ means the whole or any part of—

(a) the State, including—

(i) the internal waters of the State, and

(ii) the territorial seas of the State,

and

(b) a designated area,

in respect of which a petroleum authorisation is in force;

‘petroleum’ includes—

(a) any mineral oil or relative hydrocarbon and natural gas and other liquid or gaseous hydrocarbons and their derivatives or constituent substances existing in its natural condition in strata (including, without limitation, distillate, condensate, casinghead gasoline and other substances that are ordinarily produced from oil and gas wells), and

(b) any other substance contained in oil and natural gas brought to the surface with them in the normal process of extraction,

but does not include coal and bituminous shales and other stratified deposits from which oil can be extracted by distillation;

‘petroleum authorisation’ means any one or more of the following—

(a) an exploration licence granted under section 8 of the Act of 1960,

(b) a petroleum prospecting licence granted under section 9 of the Act of 1960,

(c) a reserved area licence granted under section 19 of the Act of 1960,

(d) a lease option granted under section 10 of the Act of 1960,

(e) a petroleum lease granted under section 13 of the Act of 1960,

(f) a consent granted under section 5 of the Act of 1968,

(g) a consent given under section 40 of the Act of 1976;

‘petroleum incident’ means an event or occurrence in, at or in the precincts of petroleum infrastructure which—

(a) results in the loss of human life,

(b) results in personal injury being suffered by a person,

(c) results in damage to the structural integrity of petroleum infrastructure,

(d) results in the structural integrity of petroleum infrastructure being compromised,

(e) results in the failure or malfunction of plant and equipment used as part of or in a manner closely associated with petroleum infrastructure, or

(f) is an event or occurrence of a class prescribed by regulations made by the Commission under section 13V;

‘petroleum infrastructure’ means any facility, structure or installation which is or has been established, maintained or operated, or is intended to be established, for the purpose of carrying on a petroleum activity and includes onshore or offshore facilities, installations or structures or a combination of such facilities, installations and structures;

‘petroleum undertaking’ means any person to whom a petroleum authorisation has been given or granted;

‘processing’, in relation to petroleum, means the treatment of unprocessed or partially processed petroleum at a processing plant or terminal or offshore processing installation;

‘publish in the prescribed manner’, in relation to any document or information (howsoever described), means the document or information, as the case may be—

(a) is published on a relevant Internet website, and

(b) is available for inspection, at the offices of the Commission and at all reasonable times, by members of the public;

‘relevant Internet website’ means an Internet website of the Commission (including part of such a website)—

(a) to which access is readily available by members of the public, and

(b) where anything published on the website is readily available for inspection by members of the public;

‘revised safety case’ has the meaning given to it by section 13N;

‘safety case’ means a document describing the components of the safety management system relating to the designated petroleum activity concerned;

‘safety framework’ means the risk-based petroleum safety framework established under section 13I;

‘safety permit’ means a permit issued under section 13P;

‘upstream pipeline’ means so much of any pipeline (including the subsea and onshore sections) operated or constructed—

(a) as part of a petroleum production project, or

(b) for the purpose of conveying unprocessed petroleum from one or more than one such project to a processing plant or terminal or final coastal landing terminal.

(2) (a) In this Part, ‘petroleum activity’ means any activity referred to in paragraph (b)—

(i) that is authorised to be carried on under or in connection with a petroleum authorisation,

(ii) which is carried on, from, by means of or on, or for purposes connected with, any petroleum infrastructure, and

(iii) is carried on in a licensed area.

(b) The activities referred to in paragraph (a) include, but are not limited to, the following:

(i) petroleum exploration activities carried on under any one or more of the authorisations referred to in paragraphs (a) to (d) of the definition of ‘petroleum authorisation’ in section 13A and in respect of which petroleum infrastructure for the drilling of exploration wells in the seabed or subsoil is intended to be established, maintained or operated,

(ii) petroleum extraction activities carried on under an authorisation referred to in paragraph (e) of the definition of ‘petroleum authorisation’ in section 13A and in respect of which petroleum infrastructure for the drilling of wells as part of a petroleum field plan of development and the subsequent extraction, and processing of petroleum, and offshore storage and loading of petroleum is intended to be established, maintained or operated,

(iii) activities relating to the conveyance of unprocessed, partially processed or fully processed petroleum by subsea pipelines or vessels and petroleum infrastructure, including the onshore section of any subsea pipeline carried on pursuant to an authorisation referred to in paragraph (g) of the definition of ‘petroleum authorisation’ in section 13A,

(iv) activities relating to the processing of petroleum at a petroleum processing plant or terminal, offshore installation or other similar facility carried on under the terms and conditions of an authorisation referred to in paragraph (e) of the definition of ‘petroleum authorisation’ in section 13A,

(v) activities relating to the decommissioning of petroleum infrastructure.

(3) Any reference in this Part to a ‘petroleum activity’ or a ‘designated petroleum activity’ includes, unless the context otherwise requires, a reference to any ‘petroleum infrastructure’ which is or has been established, maintained or operated, or is intended to be established, for the purpose of carrying on the petroleum activity or designated petroleum activity.

Safety obligations.

13B.— Nothing in this Part shall be read so as to be restrictive of any other duty, requirement or obligation imposed by law in respect of safety which would otherwise apply to a petroleum undertaking.

Application of Part IIA.

13C.— This Part applies to any petroleum undertaking that—

(a) proposes to carry on a designated petroleum activity, or

(b) is carrying on an established petroleum activity.

Designated petroleum activity.

13D.— (1) Subject to subsection (3), the Commission shall, where safety considerations render it appropriate, by regulation, designate for the purposes of this Part any petroleum activity or a class or classes of such activity to be a designated petroleum activity.

(2) For the purposes of making a designation under subsection (1), the Commission shall have regard to the following:

(a) the nature of the petroleum activity;

(b) the type of petroleum infrastructure;

(c) an assessment of the risks posed by the carrying on of the petroleum activity;

(d) the safety measures required to reduce the risks;

(e) the extent to which the petroleum activity and petroleum infrastructure is regulated by or under another Act of the Oireachtas.

(3) (a) Before making a designation under subsection (1), the Commission shall for the purpose of satisfying itself that it is appropriate and in the public interest that the petroleum activity or class or classes of such activity be designated—

(i) consult with the persons specified in paragraph (b), and

(ii) give interested persons, organisations and other bodies an opportunity to make representations to it concerning the proposed designation,

(b) The Commission shall consult with—

(i) The National Standards Authority of Ireland,

(ii) the Health and Safety Authority,

(iii) the Environmental Protection Agency,

(iv) the Minister for Transport,

(v) the Irish Aviation Authority, and

(vi) such other persons as may be prescribed by order by the Minister.

Prohibition on carrying on designated petroleum activity without safety permit.

13E.— (1) A person shall not carry on a designated petroleum activity or, subject to section 13M(2)(b), an established petroleum activity, unless a safety permit is in force in respect of the petroleum activity concerned.

(2) A person who contravenes subsection (1) commits an offence.

(3) A person who commits an offence under subsection (2) is liable—

(a) on summary conviction to a fine not exceeding €5,000 or a term of imprisonment not exceeding 6 months or both, or

(b) on conviction on indictment to a fine not exceeding €3,000,000 or a term of imprisonment not exceeding 3 years or both.

Conditions attaching to petroleum authorisations.

13F.— It shall be a condition of every petroleum authorisation that purports to authorise a person to carry on a designated petroleum activity or an established petroleum activity that that person hold a safety permit mentioned in section 13E(1) in respect of any such activity carried on after the commencement of this section.

Object of Commission relating to petroleum safety.

13G.— The principal objective of the Commission in exercising its functions under this Part is to protect the public by fostering and encouraging safety as respects the carrying on of designated petroleum activities.

Functions of Commission relating to petroleum safety.

13H.— (1) The Commission shall do all things necessary and reasonable to further its objectives and shall exercise its powers and perform its functions in the public interest.

(2) Without prejudice to the generality of subsection (1), the Commission’s functions under this Part are—

(a) to regulate the designated petroleum activities of petroleum undertakings with respect to safety, which may include specifying standards and codes of practice referred to in section 13L(3),

(b) subject to sections 13S to 13U, to investigate and report to the Minister on petroleum incidents,

(c) to monitor and enforce compliance by petroleum undertakings with their obligations under this Part,

(d) to issue safety permits, and

(e) to provide safety information to the public when appropriate.

(3) The Commission shall, in performing its functions under this Part, have regard to—

(a) such functions with respect to the safety of petroleum activities as may be performed by the persons specified in paragraph (c),

(b) the need to co-operate and consult with the persons specified in paragraph (c) for the purpose of—

(i) encouraging and fostering safety in the carrying on of petroleum activities, and

(ii) avoiding duplication of activities by the Commission and the persons specified in paragraph (c).

(c) The following are the persons to whom paragraphs (a) and (b) apply:

(i) The National Standards Authority of Ireland,

(ii) the Health and Safety Authority,

(iii) the Environmental Protection Agency,

(iv) the Minister for Transport,

(v) the Irish Aviation Authority, and

(vi) such other persons as may be prescribed by order by the Minister.

Safety framework.

13I.— (1) In exercising its function under section 13H(2)(a), the Commission shall, subject to subsection (5) and after consultation with such of the persons specified in subsection (2) as the Commission considers appropriate, establish and implement a risk-based petroleum safety framework (in this Part referred to as a ‘safety framework’) in relation to the carrying on of designated petroleum activities.

(2) The following are the persons specified for the purposes of subsection (1):

(a) the Minister,

(b) the Minister for the Environment, Heritage and Local Government with respect to petroleum activities undertaken on the foreshore,

(c) the Minister for Transport,

(d) the Health and Safety Authority, and

(e) any other relevant person.

(3) (a) The safety framework shall be in writing and shall contain information relating to—

(i) the nature and scope of the petroleum activities and petroleum infrastructure to be regulated by the Commission, and

(ii) the systems and procedures to be operated by the Commission in regulating designated petroleum activities.

(b) The information contained in the safety framework shall include, but shall not be limited to, the following information:

(i) a list of designated petroleum activities;

(ii) procedures for the assessment by the Commission of a safety case;

(iii) a system for the ongoing audit and inspection by the Commission of designated petroleum activities;

(iv) the standards and system for assessing safety performance;

(v) any other matter con-sidered necessary by the Commission.

(4) In considering what other matters it may be necessary to include in the safety framework, the Commission may have regard to—

(a) technological developments in the petroleum exploration and extraction industry,

(b) best practice relating to the carrying on of petroleum activities,

(c) the necessity to keep under review safety standards and specifications relating to designated petroleum activities,

(d) any directions given by the Minister under section 13J,

(e) recommendations made in reports on petroleum incidents, or

(f) any submissions or recommendations made by interested persons, organisations and other bodies in relation to the safety of petroleum activities.

(5) (a) The Commission shall not establish or implement a safety framework until after a public consultation process has taken place in respect of the safety framework.

(b) In paragraph (a) ‘public consultation process’ means an invitation by the Commission to the public for submissions, within a specified time limit, on a draft of the proposed safety framework where such invitation is made by means of a notice to that effect published in a newspaper circulating within the State and published in the prescribed manner.

(6) The Commission shall report annually to the Minister on the functioning of the safety framework.

(7) The Commission may, from time to time, review or amend the safety framework.

(8) The Commission shall publish in the prescribed manner—

(a) a copy of the safety framework, and

(b) where the safety framework has been amended in accordance with subsection (7), a copy of the safety framework as amended.

Directions by Minister.

13J.— (1) The Minister may give written directions to the Commission relating to—

(a) the measures to be taken arising from reports prepared by the Commission under section 13H(2)(b) with regard to petroleum incidents, and