Government’s role in the regulation
of offshore exploration activities
Commonwealth waters
Environmental Sustainability Unit – August 2010
Offshore jurisdictions
Commonwealth legislation
JOINT responsibility
Source: Department of Industry Tourism and Resources
Jurisdiction
 Commonwealth and State share administration of
legislation
 Designated Authority (DA) for the offshore area of
NSW is the Minister for Mineral and Forest
Resources. This role has been delegated to the
Executive Director, Mineral Resources, I&I NSW.
Offshore Petroleum and Greenhouse Gas
Storage Act 2006 (OPGGSA2006)
 Regulates offshore petroleum projects in Australia
 Framework for offshore oil and gas exploration and
production activities in Commonwealth waters
 The approval process for operations under this Act
requires various Commonwealth/State agencies to
be consulted to identify potential issues, conflicts
and sensitivities
Environment
Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations
2009
Operators required to submit an Environment Plan
Continuous improvement and best practice to achieve environmental protection
Consistent with the principles of ecologically sustainable development
Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)
Regulates assessment and approval of proposed actions that may impact on matters of
National Environmental Significance (NES)
Require approval by the Commonwealth Minister for Environmental Protection
Petroleum (Submerged Lands) (Management of Well Operations) Regulations
2004
Operators submit Well Operations Management Plan
Down-hole activities designed and conducted in accord with good oil-field practise
Risks identified and managed in accord with good oil-field practise and sound
engineering principles
Environment Plan (EP)
 Required for every proposed activity
 Must demonstrate that environmental impacts and risks are
‘as low as reasonably practicable’
 Environmental performance objectives, standards and
measures
 Implementation strategy and monitoring, recording and
reporting arrangements
 Consultation with authorities, organisations etc
 Complies with Act and Regulations
 Guidelines for preparation (Comm. Dept RET)
 Environmental Assessor reviews and determines
acceptability of EP according to guidelines (ESU, I&I NSW)
Operator initiates proposal
Operator determines if EPBC Act referral
to Commonwealth Environment Minister
required
Operator consults with DA,
environmental agencies, stakeholders
Operator prepares EP as required
under Regulations and guidelines
Independent EPBC Act assessment
Operator submits EP
to I&I NSW
Commonwealth
and state
authorities
Processing of an
EP assessment
(30days)
Accepted under
Regulations
Not accepted
(Feedback to operator)
10 days
Summary EP for
public display
Project abandoned
Operator revises EP
Environment Plan
Management of well operations
 Well Operations Management Plan (WOMP)
• Required before the undertaking of a well activity
• Specifies acceptable methods of conducting well
operations in accordance with sound engineering
principles and good oil-field practice
• Well activities include drilling, completion, re-completion,
operation, and abandonment/suspension
• Review and acceptance undertaken by the DA (safety
inspectors, I&I NSW)
Regulatory response agents
Marine incident control and response is the responsibility of the operator
 In the event of a marine
incident, both state and
commonwealth agencies
may have to respond
 Operational protocols
followed (e.g. combat agency
Example
 > 3 nautical miles offshore:
Aust. Maritime Safety
Authority
 State waters:
NSW Maritime
transfer)
 Fingal Head ― Catherine
 National Plan – integrated
Hill Bay:
govt/industry framework for
Newcastle Port Authority
effective response
Source: NSW State waters marine oil and
chemical spill contingency plan 2008
Safety
• Onus on the Operator to “take all reasonably practicable
steps” to protect the health and safety of the facility and
workforce.
• National Offshore Petroleum Safety Authority (NOPSA)
is the health and safety regulator for the Australian
offshore petroleum industry.
• The role of NOPSA is to administer offshore petroleum
safety legislation.
• Safety Case now required for every offshore facility