Environment plan transparency and public comment - NOPSEMA

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Environment plan transparency and public comment - NOPSEMA
Environment plan transparency
and public comment
National Offshore Petroleum Safety & Environmental Management Authority
Department of Industry, Innovation and Science
Australian Petroleum Production Exploration Association
National Energy Resources Australia
WA Fishing Industry Council
Environment plan transparency and public comment - NOPSEMA
The path to transparency

                                                                2019
                                                                Transparency
                                               2018             regulations
                                2017           Exposure draft   take effect
                                Transparency   released
               2016             Taskforce
               Engagement       established
               with
               DIIS regarding
2015           regulatory
Consultation & change
transparency
program
initiated
                                                                     2
Environment plan transparency and public comment - NOPSEMA
Session outline
Session overview                                                  Presenter                 Timing

Welcome, acknowledgment to Country, opening statements            Cameron Grebe (NOPSEMA)   1300-1310

Changes to regulations following the Exposure Draft               DIIS                      1310-1345

Key changes to NOPSEMA guidance, two week public comment period   Raquel Carter and         1345-1430
and NOPSEMA systems showcase                                      Sarah Miller
                                                                  (NOPSEMA)

Break and refreshments                                                                      1430-1450

Consultation and transparency – A stakeholder’s perspective       Mannie Shea (WAFIC)       1450-1520

Industry’s preparations for transparency                          Jason Medd (APPEA) &      1520-1550
                                                                  Matt Smith (NERA)
Q&A and feedback                                                  Participants              1550-1620

Closing statement                                                 Cameron Grebe (NOPSEMA)   1620-1630
                                                                                                   3
Environment plan transparency and public comment - NOPSEMA
Department of Industry,
Innovation & Science
Email: offshorenvironment@industry.gov.au
Visit: industry.gov.au

                                            4
Environment plan transparency and public comment - NOPSEMA
Consultation and transparency -
regulatory amendments

Catherine Kesteven and Lisa Wechmann
27 March 2019
Environment plan transparency and public comment - NOPSEMA
Session overview

  1. Background

  2. Key information and dates

  3. Amendments – overview

  4. Consultation overview

  5. Transitional arrangements
Environment plan transparency and public comment - NOPSEMA
Background

         • Review of consultation and
    1      transparency requirements

         • Ministerial announcement
    2      November 2017

         • Exposure draft October 2018
    3
Environment plan transparency and public comment - NOPSEMA
Approval of the regulatory changes

         • The amendments to the OPGGS Environment Regulations
           were approved by the Federal Executive Council on
           21 March 2019.

         • The amended Regulations were registered on the Federal
           Register of Legislation on 25 March 2019.

         • The new regulations will commence on 25 April 2019.

         • https://www.legislation.gov.au/Details/F2019L00370
Environment plan transparency and public comment - NOPSEMA
Consultation on the exposure draft

         • Consultation was undertaken between 8 October and
           16 November 2018

         • 15 submissions were received from a range of
           stakeholders, including industry, ENGOs, fishing
           representatives and interested community members
Environment plan transparency and public comment - NOPSEMA
Key changes following consultation

        • Retaining environment plan summary requirement
        • Clarification of sensitive information in the explanatory
          documents
        • Amended definition - seismic or exploratory drilling
          activity
        • Revision due to significant new or increased
          environmental impact or risk – exclusion from public
          comment period and further assessment
Transitional provisions

• The new regulations will apply to all environment
  plans submitted on or after 25 April 2019

• The amendments will not apply to plans already
  accepted or already under assessment when the
  new arrangements commence
Summary

      • Regulations registered 25 March 2019

      • Regulations commence 25 April 2019

      • Environment Plans submitted on or after the
        commencement date will be subject to the new
        requirements
Questions

     • For further information or updates email
       offshoreenvironment@industry.gov.au
Department of Industry,
Innovation and Science
Industry House
10 Binara Street
Canberra City, ACT 2601, Australia
Telephone +61 2 6213 6000
NOPSEMA guidance, web-
based systems and external
communications

Email: communications@nopsema.gov.au
Visit: nopsema.gov.au
Outline: changes to assessing Exploration EPs

Published documents

  New process step                    Publication of                                                         Publication of                                      Publication of
                                                                                     Publication of
                                          EP and                                                               TH Public                Publication of            Key Matters
                                                                                       EP under
                                       Submission                                                              Comment                  accepted EPs                Report
Existing process step                                                                 assessment
                                       Information                                                              Report                                            (NOPSEMA)
                                                                                                                                        and EP Summary

                                                                       EP prep and
                                                                       TH response
                                      Completeness        Public                               Completeness                Assessment              Assessment
Consult            Submit EP                                             to Public
                                         Check           Comment                                  Check                                             Decision
                                                                        Comment
                                                                        submitted
                                         5 days           30 days                                                30 days

                                                         TH download                                                          NOPSEMA
                      TH submits        Respond to                       TH submits              Respond to
                                                            public                                                            takes into
                       separate         ‘incomplete                       separate               ‘incomplete
No change                                                 comments                                                         account public                No change
                     sensitive info     submission’                     sensitive info           submission’
                                                         from shared                                                          comment
                       part of EP       notifications                     part of EP             notifications
                                                            folder                                                         (inc TH report)
                                                                                                                                                                         16
NOPSEMA guidance open for comment

Two week comment period for:
•   EP assessment policy
•   Making submissions to NOPSEMA guideline
•   EP summary statement form
•   EP content requirements guidance note
•   Responding to public comment guidance note
•   Titleholder report on public comment template
•   NOPSEMA key matters report template (includes public comment report)

See the ‘Transitioning to transparency – EP guidance open for comment’ news
item on NOPSEMA’s website: nopsema.gov.au/news-and-media/ for details.
Comments to be provided no later than CoB 10 April 2019                       17
Policy: EP assessment

•   EP assessment principles - to improve efficiency and consistency

•   Referring to information already provided – information needs to be publicly
    available and will considered part of the submission

•   Repeat public comment period – applies to activities that have been significantly
    modified following public comment

•   Reasonable opportunity to modify – each resubmission must be in full
Guideline: Making submissions guideline

Maximum of four documents can be submitted to NOPSEMA as part of an EP submission:

EP part: for publication                    EP part: not for publication
Environment plan with relevant appendices Sensitive information, including full text
                                          consultation transcripts

Oil pollution emergency plans (OPEP) may
be provided separately

Oil pollution monitoring plans (OSMP) may
be provided separately

                                                                                       19
Form: EP summary statement

                     20
Guidance note: EP Content requirements

• No change to content requirements for EPs
• New section on transparency
• Full review and update - strengthening of ‘regulatory purpose’; ‘core concept’;
  ‘considerations’
• Advice on best practice approach to setting environmental performance
  outcomes.

                                                                                    21
Guidance note: Responding to public comment

• Access to public comment – via a share folder, updated weekly

• Response to public comment - Responding in ‘general terms’ outlining
  consideration of the issues or themes raised in public comments

• NOPSEMA’s consideration of public comment - NOPSEMA will consider public
  comments and assess how the titleholder has taken these into account

• Submitting an EP following public comment – NOPSEMA assessment process
  commences when the EP is submitted following public comment

                                                                             22
Guideline: Titleholder report on public comment template

                                                    23
Key matters report (NOPSEMA)
•   Published at the time a final decision is made:

      -   Format follows the Titleholder’s report on public comment (Issue raised; how titleholder has responded to issue)

      -   Addresses how NOPSEMA took into account public comment (what NOPSEMA decided)

      -   Addresses other assessment decision matters that Regulator believes need to be publicly communicated

                                                                                                                      24
External comms and website changes

Available now:
•   Public comment on EPs brochure
•   EP assessment process – post
    transparency fact sheet
Available from 25 April 2019:
•   NOPSEMA online
•   NOPSEMA consultation and public
    comment platform
Available mid 2019:
•   Underway offshore

                                                                      25
EPs open for comment

                   26
Submitting a public comment

                        27
Submitting a public comment (2)

                              28
Submitting a public comment (3)

                              29
Submitting a public comment (4)

                              30
Submitting a public comment (5)

                              31
Under assessment page

                    32
EP details page

           33
Underway offshore (current)

                         34
Underway offshore (in the making)

         Company                   Project             Region

Chevron Australia     Wheatstone             Pilbara

INPEX                 Ichthys                North West
Woodside Energy       North West Shelf       North West
                                                                35
Example – Underway offshore
Project - North West Shelf

       Name:
       Contact number:
       Email:

                                                       36
Western Australian Fishing
Industry Council

Email: oilandgas@wafic.org.au
Visit: wafic.org.au
Who is WAFIC?
• The peak not-for-profit industry body representing
  professional fishing, pearling and aquaculture
  enterprises.
• Mission: WAFIC works to secure a responsible and
  sustainable industry that is confident of resource
  sustainability and security of access to a fair share of
  the resource; cost-effective fisheries’ management;
  that businesses can be operated in a safe,
  environmentally responsible and profitable way; and
  that investment in industry research and development
  is valued and promoted.
Stats and Figures
•   GVP ~ A$600m (beach value)
•   A$1b to WA state economy
•   ~ 54 Fisheries
•   Lobster A$420m - per annum
•   Shark Bay Prawn Trawl A$25m
•   Abalone A$10m
•   Northern Demersal Scalefish
    A$9m
•   West Coast and Gascoyne
    Demersal Scalefish A$7m
•   ~ 2,500 employees
•   ~ 10,000 indirect employees
•   90% - 95% of people who eat fish
    buy it (rather than catch it)
•   Incredible diversity of seafood -
    tropical to temperate
Funding Model

• WAFIC is funded by fishing industry money that is collected by the
  State Government as part of a fee that is used by the State to
  manage WA’s fisheries.
• Fish stocks are owned by the State, or rather the entire community
  of the State, they don’t “belong to commercial fishers”.
• Government collects funds from each fishery (GVP), similar to
  mining companies paying a royalty on the ores they mine, ensuring
  there is a return to the community.
• Collects 5.75% (5% goes to Government)
• 0.5% ( goes to WAFIC)
• 0.25% ( goes to FRDC) - matched dollar for dollar by the Federal
  Government.
• Other states do not have this funding arrangement.
Marine Stewardship
Council (MSC)
• 3rd party certification - WA leading the
  world.

• Western Rock Lobster - first MSC
  accredited fishery (globally) in 2000.

• WA govt A$14.5m – funds MSC pre-
  assessment for every commercial
  fishery.

• Western Rock Lobster, Exmouth Gulf
  Prawn Trawl, Shark Bay prawn trawl,
  Deep Sea Crustacean, Abalone,
  Pearls, Peel Harvey Crab, Peel
  Harvey Mullet - all certified. Beche-de-
  mer and Octopus to be certified soon.

• ~ 90% of WA GVP is MSC certified
NOPSEMA and Oil & Gas Consultation
1. NOPSEMA 2012

2. Stakeholder Communications and Engagement

3. NOPSEMA website - For every environment plan, a
titleholder undertakes consultation with relevant persons that
could be affected by the proposed petroleum activity – ie
potentially affected parties.
Commercial Fishing and Oil & Gas
 Consultation – how is it looking now?
1. Stakeholder fatigue, poor information.
2. Accordingly, very few replies.
3. The farce of “open and transparent” engagement.
4. The “tick the box” mentality – it’s all about getting the EP
   approved, not a lot of genuine consultation.
5. Gargantuan volume of O&G engagement of varying
   information and quality.
6. A complete lack of understanding and lack of respect that
   commercial fishers are full-time fishers – not the
   secretarial service for the O&G industry.
7. WAFIC (and other representative bodies) are also not the
   unpaid secretarial service for the O&G industry.
8. 100% mitigation costs rests with commercial fishers.
Commercial Fishing and Oil & Gas
 Consultation – how is it looking now?
1. Information overload (FOMO mentality, including as much
   information as possible in case NOPSEMA may / may not
   think that you have / have not included enough.
2. Long, detailed facts sheets with complex, detailed
   technical information – yet the two words “commercial
   fishing” are not mentioned once.
3. The expectation that we have to read all the information,
   assess the O&G activity and work out how we may / may
   not be potentially impacted – not our job!
4. Very poor maps, some with / some without latitudes and
   longitudes, distance from the coast, water depth,
   landmarks.
5. Don’t use eastings and northings – commercial fishing
   uses latitudes and longitudes.
Commercial Fishing and Oil & Gas
 Consultation – how is it looking now?
1. Not enough time - 30 days or less is not enough time for a
   consultation period. Many fishers are at sea longer than
   this or for most of a month – then have to unpack, ship,
   refuel, reprovision etc – we need 8 weeks – so plan
   ahead!.
2. No identification re how this activity may / may not impact
   others in the shared marine environment (ie fishers).
3. Fishery by fishery overlapping the activity site – do your
   assessment and proposed mitigations and then and only
   then, consult with fishers.
4. This is not a duplication of work – upfront information
   relevant to the (almost only) affected parties on the water.
5. Especially relevant with the requirement for a final 30 day
   review of the full EP and publication of the full EP after
   NOPSEMA acceptance.
Potentially Affected Parties

• The heart of O&G consultation
  is consultation with relevant
  potentially affected parties.

• Offshore – who are classed as
  potentially affected parties?
Relevant Potentially Affected Parties

• Relevant potentially affected parties offshore
   • Commercial fishers
   • Recreational fishers
   • Marine Tourism operators

• Relevant potentially affected parties in the commercial fishing industry?
Consultation Issues – Relevant Parties
     • A relevant party is one who has fishing activity
       overlapping the site, therefore their physical fishing
       activity may potentially be disrupted / disadvantaged
       by the O&G activity – they need to be consulted.

     • If the fishery does not overlap the site / activity they
       are not a relevant party (based on fishing activity).

     • A fishery which has a border near by but not
       overlapping the site / activity is not a relevant party.

     • We have zero interest in “just in case we thought you
       might be interested” or an “if in doubt send to
       everyone” process.

     • An O&G proponent still needs to address the resource
       impacts separate to potential impacts on the fishing
       activity.
Consultation Practices – O&G – How we can improve
    • A “one size first all” process is unworkable for commercial fishers.

    • As we are (almost) the only potentially affected party on the water,
      we expect / need bespoke consultation relevant to the commercial
      fishing activity in the region concurrent with the proposed O&G
      activity.

    •    EP writers need to address – upfront – potential issues with the
        O&G activity and commercial fishers operating in the area and the
        commercial fishing resource.

    • Covering email summary – cover your back, attach the usual fact
      sheet!

    • If the fishery does not overlap the site / activity they are not a
      relevant party to the activity (maybe to the EMBA but consultation is
      not required).
Seismic Consultation Practices – O&G
  – How we can improve
• The potential impacts of seismic activity is the key issue for
  commercial fishers. It is a global issue.

• Timing needs to be based on an encompassing environmental
  assessment – not when there’s a boat available.

• Provision of upfront information showing how you have assessed
  this proposed seismic survey over the commercial fishing activity
  and the commercial fishing resource overlapping this acquisition
  area.

• Seeking the “window of opportunity”.

• Prepare a matrix – great for the proponents' use, a clear
  demonstration of assessment to potentially affected parties.
Common Practices (which need to be improved)
      • For commercial fishing it is a four way process:

          • Potential impact on commercial fishing activities.

          • Potential impacts on the commercial fishing resource (ie
            the key indicator species, spawning).

          • Potential impacts on the overall marine environment.

          • Case-by-case scenario – the need to formally incorporate a
            “make good” process within the EP.
The Transparency Review

       • WAFIC has been “at the table”.

       • A chance for all of us to work together.

       • Transparency with EPs – we will now know that
         commercial fishing feedback has been considered and
         addressed.

       • Be part of the solution not part of the problem.

       • Not asking oil and gas to do anything more than what they
         are already doing, just to do it upfront and bespoke.
Oil and Gas – Commercial Fishing FRDC Project

• Fisheries Research and Development Corporation (FRDC) - www.frdc.gov.au.
• Project title “2017-186 Oil and Gas: National coordination - seismic and other issues”,
  project number 2017-186 http://frdc.com.au/project/2017-186 .
• FRDC a co-funded partnership between its two stakeholders, the Australian Government
  and the fishing and aquaculture sectors.
• WAFIC has secured a 3 year funded project – oil and gas – seismic research and
  engagement between the commercial fishing sector and oil and gas activities (and the
  role of NOPSEMA).
.
Oil and Gas – Commercial Fishing FRDC Project –
Seismic information
     • Seismic Research Portal / web site

     • A publicly accessible portal – to be housed on the FRDC
       website (http://www.frdc.com.au/ )
     • Seismic focussed a "one stop shop" for research papers etc
       covering commercial fishing activities / commercial fishing
       resource and offshore O&G seismic surveys etc
     • Australian papers, International papers
     • Where possible, peer reviewed
     • Need to ensure relevance for ready and easy access by the
       commercial fishing sector, O&G and the broader community
Oil and Gas – Commercial Fishing
         FRDC Project – Seismic Information
• Research Gaps

• Commercial fishing activities / commercial fishing resource and
  offshore seismic research gap analysis prioritisation.
• Deliver a set number of supported research applications relevant to
  the potential effects of oil and gas offshore seismic activities on
  commercial fishing / commercial fishing stocks etc.
• As “science gaps” become evident refer the information back to the
  FRDC in “real time” – not at the end of the project – for FRDC
  consideration and potential allocation to fill the gap sooner rather than
  later.
• Quadrant / Santos AIMS project and other potential opportunities –
  working together.
Oil and Gas – Commercial Fishing
           FRDC Project – Fishery Profiles
• Relevant Party Information
• Housed on the FRDC site
• Became the priority over the seismic information
• Fishery profile / fact sheet – state by state and commonwealth fisheries
• Fully referenced facts and science – location, map, licence holders, MSC, fishing
  methods, where fished (FishCube), the resource, stock, spawning etc.
• When a licence holder in a fishery is / is not a relevant party.
• Examples – Mackerel by zone/water depth, Marine Aquarium Fish, WA Shark
Premier’s Oil and Gas Jobs Taskforce

      • Announced May 2018
      • Stavanger O&G event 2018, WA contingent - introduction of the Scottish
        Fishermen’s Federation (SFF).
      • SFF “How we made oil and water mix” www.sff.co.uk .
        www.sffservices.co.uk .
      • Premier’s taskforce managed via Department of Jobs, Tourism, Science
        and Innovation.
      • Taskforce at the senior level of government and O&G, WAFIC on a working
        group.
      • Early days!
      • WAFIC seeking to establish a business entity incorporating similar but much
        smaller scale SFF example – such as escort vessels, trawl trials, guard
        boats etc.
      • O&G and commercial fishing working together – off-season, concurrent
        with a major O&G project (and therefore restricted fishing access etc).
      • Need a standard / workable vessel etc assessment system.
Questions?

• Any questions?
• For more information head to our website www.wafic.org.au
Australian Petroleum Production
& Exploration Association

Email: appea@appea.com.au
Visit: appea.com.au
Building environmental knowledge & improved
outcomes

Jason Medd APPEA
60 Full Members   

140 Associate     

Global Partners   
How we improve

    Stakeholder Input

                            Improved
                           Knowledge
       Coordinated
    Scientific Program   & Environmental
                          Performance
                            Outcomes
       Consistent
       Approach

                                    63
Stakeholder Input
•    Industry engagement with
     fishing sector November 2018
•    Ongoing engagement with
     fishing representative bodies.
•    Planning and strategies for more
     efficient and effective industry
     engagement.

                                        64
Coordinated Scientific Program

•   Work currently ongoing within APPEA EHS working groups to progress
     – Marine noise
     – Produced formation water
     – Oil spills, response and modelling
     – Decommissioning

                                                                         65
Consistent Approach

•   Consistent scientific methodologies
•   Consistent terms and concepts
•   Industry collaboration
•   Readily available information for stakeholders

                                                     Image courtesy of Woodside Energy

                                                                     66
Our goal

•   Improved knowledge through best practice research
•   Further reduction in environmental risk
•   Collaborative and coordinated stakeholder engagement
•   Up to date information readily available

                                                           67
National Energy Resources
Australia

Email: matt.smith@nera.org
Visit: nera.org.au
Reference cases
          Matt Smith
Background

             • EP’s growing in size and complexity
             • Collaboration across titleholders has the
               potential to improve;
                 • Productivity;
                 • Environmental outcomes; and
                 • Stakeholder understanding.
             • OECD (2002) recognizes importance of
               guidelines to support objective-based
               regulation
             • Establish environmental standards to
               improve the transition to greater
               transparency
Timeline

May 2017        NERA commissions the 4 reference cases
July 2018       APPEA Environment Committee selects preferred topics
January 2018    NERA volunteers to be temporary custodian of project
February 2018   NERA publishes 2 complete reference cases
March 2018      NERA commences review of the project
May 2018        APPEA and NERA agree amended Terms of Reference
December 2018   NERA and APPEA publish review report
Review findings (survey)
Review findings (interviews)

• Unsubstantiated inconsistency in NOPSEMA assessments
• Titleholders underestimate project timeframes
• Decisions being delayed seeking more detail
• Uncertainty about ‘acceptable levels’ of impact/risk
• No change in environmental outcomes
• Deteriorating trust between titleholders and relevant persons
Conclusion and
recommendations

                                                            Recommendation
                                                       APPEA, in particular its members with
1.   Compliance mentality in a subjective process     offshore petroleum titles, and NOPSEMA
2.   Absence of common environmental knowledge       should jointly consider the implications of
                                                      this report to identify, characterise, and
3.   Accountability for EP product                  agree the difficulties with the environmental
                                                     approvals process and together design and
                                                     implement titleholder lead initiatives that
                                                            will address these difficulties.
What’s next?

               Collaborative Seismic EP Project
               • 10 companies willing to properly
                 collaborate
               • Final product will standardize how seismic
                 activities are conducted in Australia
               • Supported by fishers and Government
               • Approval being sought for 2020-2025
Panel Q&A session
Closing statement
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