Hanne Sofie Logstein, NIFS Petroleum Safety Regulation - the Norwegian Way Research fellow Hanne Sofie Logstein, Scandinavian Institute of maritime Law,

Hanne Sofie Logstein, NIFS

Petroleum Safety Regulation- the Norwegian Way

Research fellow Hanne Sofie Logstein, Scandinavian Institute of maritime Law, Department of Petroleum Law

[email protected]

Signature (unit, name, etc.)

Deepwater Horizon

• How could this accident have been avoided– And what´s law got to do with it?

Signature (unit, name, etc.)

The reality…

• Hazardous surroundings• Risky operations• Dangerous products • Rapid technological development

... meets law • Traditionally a prescriptive system witch set specific

demands• Monitor the compliance • Sanction when breach of obligations

Signature (unit, name, etc.)

Problem with ”traditional” regulation and safety

• The fixed regulation does not cope for the development

• The responsibility for the chosen solutions lies with the authorities

• Encourage a passive attitude among the companies

• Worst case scenario: The hydraulic door

Signature (unit, name, etc.)

The Doctrine of Sources of Law

Law

Preparatory works

Decisions of the court

Common law

Policy considerations

Human rights

EEA

Signature (unit, name, etc.)

Acts and Regulations I

• Eight acts –the most important:– The Petroleum Activities Act (PA)

– The Pollution Control Act

– The Working Environment Act

• Six HSE regulations:- The framework regulations (FW) (Royal Decree)

- Subordinate regulations:– The management regulations

– The information duty regulations

– The facilities regulations

– The activities regulations

Signature (unit, name, etc.)

Acts and Regulations II

- Temporary regulations relating to safety and working environment for certain petroleum facilities on land and associated pipeline systems

----------------------• Five new regulations related to health, safety and the

environment in the petroleum activities on offshore and onshore facilities

• Replaces the old HSE –regulation • Enter into effect on 1 January 2011

Signature (unit, name, etc.)

Safety in the Petroleum Act

• Measures to:– Prevent harm to personnel, the environment and

financial values– Maintain production and transport regularity– Enable the probability of harm to be counteracted,

withstood or remedied

(Proposition to the Odelsting No 43 (1995-96), comments to the PA § 10-1, see Guidelines to the Framework regulation section 2)

Signature (unit, name, etc.)

Functional requirements • The regulations is largely set as functional

requirements witch describe what is to be achieved rather than provide concrete solutions

• Most of them vague and wide –ranging: “Petroleum activities shall be safe and prudent, both in relation to an

individual and an overall con sideration of all the factors of importance to planning and implementation of petroleum activities as regards health, environment and safety” FW regulation § 8

• But some are spesific:Facilities shall be designed so that no employee is exposed to noise that

is harmful to hearing. By noise that is harmful to hearing is meant a daily noise exposure which in the course of a workshift exceeds a twelve-hour equivalent sound level of 83 dB(A), or an impulsive sound level of Lpeak = 130 dB(C).

Signature (unit, name, etc.)

FW § 9 Principles relating to risk reduction

• Harm or danger of harm to people, the environment or to financial assets shall be prevented or limited ...

• Over and above this level the risk shall be further reduced to the extent possible...

• ...shall choose the technical, operational or organisational solutions which according to an individual as well as an overall evaluation of the potential harm and present and future use offer the best results, provided the associated costs are not significantly disproportionate to the risk reduction achieved.

Signature (unit, name, etc.)

Sources not legally binding

• Guidelines, standards and statutory interpretations– Suggestion of how to meet the requirements

If “makes use of a standard recommended” … “may as a rule take it that the regulation

requirements have been met” FW § 18– States a level

• “Harm or danger”… “shall be prevented or limited in accordance with the legislation…including internal requirements and acceptance criteria” FW § 9

Signature (unit, name, etc.)

The Sources of Law in the petroleum Safety System

Law

Regulations

Guidelines

Standards

Interpretations

Desitions of the Court

White papers

Statements from co-operative bodies

Orders

Identical letters

Signature (unit, name, etc.)

The Companies (the operator)

• Obliged to establish, follow up and further develop a management system (FW § 13)– Internal norms– Internal control

• “The operator shall see to it that everyone carrying out work for him, either personally, by employees, contractors or sub-contractors, complies with requirements contained in the health, environment and safety legislation.”

Signature (unit, name, etc.)

The Petroleum Safety Authority (PSA)

• Consents (but no approval) to certain petroleum activities

• Inspections, identifying non –conformance, issuing orders

• Cooperation with the companies and the worker organisation

Signature (unit, name, etc.)

The administrations role

Law

Regulations

Guidelines

Standarder

Interpretations

Desitions of the Court

White papers

Statements from co-operative bodies

Orders

Identical letters

Permissions

Signature (unit, name, etc.)

The safety system

• The regulations largely set functional requirements• These requirements describe what is to be achieved

rather than provide concrete solutions • Extensive use of legally, not- binding sources as

guidelines, interpretations, standards aso• The industry is obliged to make their own safety

system with internal norms and control• The responsibility for safe operations is transferred

from the authorities to the licensees and operators

Signature (unit, name, etc.)

From a legal point of view

• The problem with vague regulation

• Interpretation within Government

administration

• Has safety improved as a

result of the safety management system?

Signature (unit, name, etc.)

Thank you for the attention