Onshore oil and gas: environmental regulation and the consenting process

UKELA Seminar23 September 2015

An established onshore industry

Dales Water Services Ltd

Source: Silson Communications Ltd.

AONB and SSSI

Part of drilling operations at Wytch Farm, Europe’s largest onshore oil field

4th most expensive real estate in the world (reputedly)

We regulate other complex industries

3

OGAChecks all permits and permissions are in placeIssues consents – well consent, flare consent, extended well tests, and consent for hydraulic fracturing.

Oil & Gas Authorityawards exclusive Licence after open competition

Oil & Gas Well

Regulatory process – Overview (England)

Mineral Planning Authority

- Environmental Impact Assessment

- Planning permission

Traffic, noise, visual intrusion, nature conservation…

HSE • Scrutiny before

operations• Well design &

construction• Independent

verification• Safety of drilling

operations

EA - Abstraction licences - Environmental permits• Mining Waste• Groundwater• Radioactive Substances• Installations

Statutory consultee

EA/HSEMoU

Environmental permits and controlsControls Risk

Abstraction license• Issued under the Water Resources Act.

Over abstraction of water

Section 199 Notice• Issued under the Water Resources Act.• Method statement on well design and construction

Proper use of water; groundwater pollution; well integrity.

Groundwater Permit• Hydrogeological risk assessment• Chemical disclosure of drilling muds and fracturing additives

Groundwater pollution

Extractive Waste Permit (Mining Waste)• Waste management plan including used and residual hydraulic fracturing fluid

Management of extractive wastes

Radioactive Substances Permit • Radiological assessment of Naturalling Occurring Radioactive Material (NORM)

Management of NORM wastes

Installations Permit (Industrial Emissions Directive) • Flaring of waste gases over 10 tonnes per day

Waste gases and air quality risks

Water Discharge Activity • Required if surface water run-off becomes polluted

Surface spills

Permitting pre application

Permit application preparation

Bespoke Permit Determination:

· Mining waste · Installation· Groundwater · Water discharge · Radioactive

Substance Regulation 13 weeks

Water Abstraction licence 13 weeks

InvestigationPrepare consent to

investigate applicationprepare

application

Determine consent to investigate

Flood defence consent 8 Weeks

Register as hazardous waste

producer

Applicant led task

Environment Agency led task

Prepare application for flood defence consent

Time

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Pub

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S199 - Prepare WR11 and method statement

4 Weeks

S199 conservation notice determination.

8 Week

Standard rules permit

4 Weeks

key

Environmental Permitting Process

Regulatory Steps and Public Consultation Stages in Shale Exploration

OGA issues Petroleum License to operator

21 days pre-planning notice given to landowners and

parishes

Environmental Risk Assessment conducted by

operator

Operator holds Pre-application consultation with the Local Planning Authority stakeholders, the local

residents and Environment Agency

Operator makes planning application to Local Planning Authority

Local Planning Authority advertises planning application and consults with stakeholders

and local residents

Local Planning Authority decides whether or not to

provide planning permission

Local Planning Authority makes scoping decision if

Environmental Impact Assessment to be requested and conducted by operator

Operator applies for environmental permits from

Environment Agency

Environment Agency decides whether or not to

grant permits

Planning conditions set by Local Planning Authority

are met by the operator

Health and Safety Executive is notified

of the well design

PublicPublic

Public

Public

Public

Public

OGA Strategic Environmental

Assessment (SEA) and Public

Consultation on Licencing

Public

Operator starts operations (to drill, frack, test or produce)

according to permits and consents

OGA and Regulators monitor operations and frac-induced seismicity according to permits and

consents

DECC gives consent, to drill and/or frac with

Hydraulic Fracture Plan

OGA launch Licence Round

and Assess Applications

OGA publish consultation on Habitats Assessment (HRA) for each block

proposed for awardPublic

Public

Credit: Sciencewise

A changing regulatory landscapeInfrastructure Act

Introduces a new consent for hydraulic fracturing

Reinforces existing environmental, planning and health and safety safeguards

New definitions for protected areas

Water companies as statutory consultees

DCLG announcementsPermitted development rights

Underperformance and use of SoS call-in powers

Shale Task Force – a single regulator?EU – from Recommendation to Directive?

Our approachWe understand and have assessed the environmental risks from onshore oil and gasWe have the right regulatory controls in placeWe will continue to work with other regulators to ensure the adequacy of the regulatory regimeWe will consult and engage with local communitiesWe will streamline the process, whilst maintaining high standards of environmental protectionWe will keep this under review, in light of any legislative changes and as we move into the production phase

Additional slides

DECC Roadmap

Risks from surface operations

Risks from poor well design

Risks from hydraulic fracturing