guidance for notification of petroleum incidents part of the ......class b1, and class f1. the...

Guidance for Notification of Petroleum Incidents

Part of the

Petroleum Safety Framework

REFERENCE: CER/14/015

DATE PUBLISHED: 21st January 2014

VERSION 1.0

The Commission for Energy Regulation,

The Exchange,

Belgard Square North,

Tallaght,

Dublin 24.

www.cer.ie

http://www.cer.ie/

ii

Table of Contents

Table of Contents ................................................................................................................. ii

1 Introduction ...............................................................................................................3

1.1 The Petroleum Safety Framework ............................................................................3

1.2 Scope of this Guidance ............................................................................................3

1.3 Legal Context ...........................................................................................................3

1.4 Structure of the Document .......................................................................................4

2 Process for Notification of Petroleum Incidents by Petroleum Undertakings ......5

2.1 Notification of Petroleum Incidents ...........................................................................5

2.2 CER consideration of reported petroleum incidents .................................................6

2.3 CER Reporting of Petroleum Incidents .....................................................................7

3 Guidance on what Constitutes a Petroleum Incident .............................................8

3

1 Introduction

1.1 The Petroleum Safety Framework

The Electricity Regulation Act 1999, as amended inter alia by the Petroleum (Exploration

and Extraction) Safety Act 2010 (the Act) gives the Commission for Energy Regulation

(CER) responsibility for the safety regulation of petroleum exploration and extraction

activities in Ireland. The Act requires the CER to establish and implement a risk-based

petroleum safety framework (referred to in this document as the Framework). The

Framework is the overall system established by the CER to regulate the safety of petroleum

activities1 and in particular designated petroleum activities,2 carried out by petroleum

undertakings.3 The Framework established under the Act is a permitting regime, and is goal-

setting and risk-based, whereby petroleum undertakings are required to reduce risks to a

level that is as low as is reasonably practicable (ALARP).

1.2 Scope of this Guidance

This guidance document, the Guidance for Notification of Petroleum Incidents sets out the

process by which petroleum undertakings must notify the CER of all petroleum incidents, in

line with the requirements in the Petroleum Safety (Petroleum Incident) Regulations 2014

(the ‘Petroleum Incident Regulations’) and the Act.

This guidance document also provides the CER’s view as to events and occurrences which

may constitute petroleum incidents. These events and occurrences are listed in section 3

and are grouped by class and subclass, with each class (respectively) respectively

corresponding to parts (a)-(f) of the definition of petroleum incident in the Act. For ease of

reference, the CER has summarised certain provisions of the Act in this document.

This guidance is intended to assist petroleum undertakings in carrying out their duties under

the Act but is not a substitute for, or a legal interpretation of, the Act or the Petroleum

Incident Regulations. If a petroleum undertaking identifies a petroleum incident that is not on

the list, this also needs to be notified to the CER.

The guidance provided in this document may be subject to review by the CER from time to

time.

1.3 Legal Context

Section 13S of the Act requires that, where a petroleum incident occurs, the petroleum

undertaking concerned (or if the petroleum incident involves more than one petroleum

undertaking, the petroleum undertakings concerned) notify the CER of the petroleum

1 As defined in section 13A(2) of the Act.

2 As defined in section 13A(2) of the Act and designated in the Petroleum Safety (Designation of Certain Classes

of Petroleum Activity) Regulations 2013. 3 As defined in section 13A(1) of the Act.

4

incident as soon as practicable after the occurrence of the petroleum incident..4

A petroleum incident is defined in the Act as meaning5 an event or occurrence in, at or in the

precincts of petroleum infrastructure that:

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 prescribed by the CER by Regulation.6

Failure to notify the CER of a petroleum incident is an offence under the Act and can result

in a fine of up to €5,000 on summary conviction, or a fine of up to €1,000,000 on conviction

on indictment.7

The CER may prescribe, by regulation, the form of the notification to be provided by the

petroleum undertaking and may specify additional particulars to be provided in respect of a

class of incident. The Petroleum Incident Regulations require that notification of petroleum

incidents be in writing, provided that in the case of a petroleum incident resulting in the loss

of a human life, or as a result of which persons are missing, the petroleum undertaking(s)

shall in addition supply the CER by the quickest practicable means with the name of the

deceased or missing person(s), brief particulars and the location of the petroleum incident.

1.4 Structure of the Document

The document is split into a further 2 sections:

Process for notification of petroleum incidents petroleum undertakings (section 2);

and

Guidance on what constitutes a petroleum incident (section 3).

4 Section 13S of the Act.

5 Section 13A of the Act.

6 See the Petroleum Safety (Petroleum Incident) Regulations 2014

7 Section 13S(3) of the Act.

5

2 Process for Notification of Petroleum Incidents by Petroleum Undertakings

2.1 Notification of Petroleum Incidents

Petroleum undertakings must notify the CER as soon as is reasonably practicable of

petroleum incidents using the Petroleum Incident Notification Form, which is published on

the CER website. This form may be updated from time to time.

On the Petroleum Incident Notification Form, the petroleum undertaking must identify the

class(es) and sub-class(es) of petroleum incident (taken from Table 1 in section 3) within

which the petroleum incident falls, or where the petroleum incident is not identified in Table

1, identifying it ‘Other’.

Example

A fire that caused a personal injury to a worker, who received treatment in hospital and did not

return to work for 2 weeks.

A single Petroleum Incident Notification Form is submitted to the CER, which identifies incident

class B1, and class F1.

The petroleum undertaking should also provide brief particulars of the petroleum incident,

and describe any emergency action taken in respect of the petroleum incident.

In the case of a petroleum incident which results in the loss of human life or a missing

person, the petroleum undertaking must notify the CER, by the quickest practicable means

of:

The name of the deceased or missing person(s);

Brief particulars of the petroleum incident; and

The location of the petroleum incident.

This is in addition to the requirement to notify the CER using the Petroleum Incident

Notification Form, which should be submitted as soon as practicable after the incident.

The Petroleum Incident Notification Form, as well as relevant CER contact details can be

found on the Safety section of the CER website8.

Petroleum undertakings should note that the notification of petroleum incidents to the CER in

accordance with the Act and the Petroleum Safety (Petroleum Incident) Regulations 2014

(the ‘Regulations’) does not relieve them of their reporting requirements to other statutory

authorities as imposed by law.

8 www.cer.ie

http://www.cer.ie/

6

2.2 CER consideration of reported petroleum incidents

The Act imposes an obligation upon petroleum undertakings to notify the CER of a

petroleum incident. Petroleum undertakings are defined as “any person to whom a

petroleum authorisation has been given or granted“, and so the Act imposes a notification

obligation on each ‘person’ named on the authorisation. As such, each person who is named

in the petroleum authorisation is a duty holder under the Act.

The CER notes that for ease and efficiency of administration, all persons named on an

authorisation may seek to appoint one of their number to be responsible for discharging their

obligations arising under the Framework and that one of the named persons would be

responsible, as between the persons named on an authorisation, for notifying the CER of the

petroleum incident on behalf of all such persons. However this contractual arrangement is

not reflected in the Act and the persons in respect of whom the notification is made must be

clearly identified on the face of the notification. A petroleum undertaking will not have

discharged its obligation to notify a petroleum incident if it does not make the notification or

someone does not expressly make the notification on its behalf. Where the notifying party is

not the petroleum undertaking, the name of the party giving the notice should be given,

together with the name of the petroleum undertaking. The CER shall be entitled to rely on

any notification purported to be made on behalf of a petroleum undertaking. Where a

notification is made which purports to be on behalf of a petroleum undertaking and (1) a

petroleum incident did not in fact occur or (2) multiple notifications are received in respect of

the same incident, the CER will investigate and seek to reconcile the reports.

On receipt of such a notification of a petroleum incident, the CER shall consider the

notification and assess whether further action is required by it or the petroleum undertaking.

Where the CER considers that no further action is necessary, it may inform the petroleum

undertaking that it does not intend to instigate action with respect to that specific petroleum

incident.

Where the CER considers further action is necessary, it may request a report, within a

specified timeline, from the petroleum undertaking concerned.9 The report will give additional

details of the incident and the circumstances associated with it so that the CER may give

further consideration to the petroleum incident and determine whether further action,

including enforcement action, is required.10

The CER also has the option to appoint a petroleum safety officer to investigate the

petroleum incident in accordance with section 13T of the Act. The powers of a petroleum

safety officer are set out in section 13W of the Act.

The CER will require the petroleum undertaking to notify it where other agencies have been

notified of the petroleum incident. This will facilitate discussions between the CER and the

other notified agencies with respect to subsequent requests for reports from the petroleum

9 Section 13S(2) of the Act

10 Section 13T(2) of the Act

7

undertaking and/or investigations into the petroleum incident with a view to avoiding

duplication of regulatory efforts where possible.

2.3 CER Reporting of Petroleum Incidents

Under section 13U of the Act, the CER is required to prepare and send to the Minister for

Communications, Energy and Natural Resources, a report in respect of incidents which

result in:

a) The loss of human life;

b) Personal injury being suffered by a person; or

c) Damage to property, the ownership of which is held by a person other than the

petroleum undertaking concerned.

The CER may also send a report to the Minister in respect of any other petroleum incident

where the CER deems it appropriate by reason of the seriousness of the petroleum incident

concerned.

8

3 Guidance on what Constitutes a Petroleum Incident

Table 1 below gives guidance on what, in the CER view constitutes a petroleum incident by

reference to each class of petroleum incident included in the definition of petroleum incident

contained in Section 13A of the Act. In this list the petroleum incident classes (a) to (f) have

been further sub-divided where appropriate.11 As noted above, the CER requests that in

notifying a petroleum incident, and insofar as possible, the petroleum undertaking specifies

the class and sub-class of petroleum incident that has occurred.

The Petroleum Incident Regulations specify those events or occurrences which, in the

opinion of the CER, may materially increase the risk of an event or occurrence referred to in

section 13U(1)(a) to (c) occurring, namely the loss of human life, personal injury, or damage

to third party property. The CER notes and acknowledges that there may, in some cases, be

overlap between those events and occurrences and other classes of petroleum incident

listed in the Act. The subcategories of petroleum incident are not intended to be mutually

exclusive.

For the purposes of notification, a distinction is made between a worker and a non-worker.

Persons carrying on an activity in relation to the operation or activities of the petroleum

undertaking are workers. Any other person (such as visitors to the site that are not engaged

in a petroleum activity or members of the public) is classed as a non-worker.

11

For class F, the sub-classes are the occurrences prescribed in the Petroleum Safety (Petroleum Incident) Regulations 2014.

9

Petroleum Incident Guidance

Class Subclass

A Results in loss of human life

A1 Worker

This class of incident includes events or occurrences in, at, or

in the precincts of petroleum infrastructure which result in:

Death, whether immediate or delayed, within 1 year

(except where the death is due to natural causes)12;

and

Confirmed missing person.

A2 Non-Worker

B Results in personal injury

being suffered by a person

B1 Worker



An injury to a worker where the person cannot perform

all of their normal work activities for more than 3

consecutive days (not including the day of the

petroleum incident, but including subsequent non-

working days);

Any injury to a worker that requires treatment at a

hospital as an inpatient or outpatient; and

Any instance of decompression illness.

B2 Non-worker



Any injury to any non-worker that requires treatment by

a medical practitioner

12

This aligns with the reporting requirements of the Health and Safety Authority, Ireland

10


Class Subclass

B Results in personal injury

being suffered by a person B3 Occupational illness or disease



Any medical condition, other than those in class B1, affecting a worker.

Such incidents may include exposure to hazardous

substances, noise, vibration, extremes of heat or cold and

ergonomic hazards associated with the carrying on of a

designated petroleum activity.

The diagnosis of occupational illnesses or diseases should be

documented by a medical practitioner.

11


Class Subclass

C

Results in damage to the

structural integrity of

petroleum infrastructure

C [Not applicable]

This class of incident includes any event or occurrence that

reduces the on-going structural integrity of the petroleum

infrastructure such that a change in operations, or response or

other action is required.

For example:

Cracking or corrosion that reduces the structural

integrity of the petroleum infrastructure to the extent

that immediate de-rating (in the case of a pressure

vessel or pipeline), or emergency shutdown is required;

or

Dents or gouges in a pressure vessel or pipeline that

reduce the design structural integrity to the extent that

immediate de-rating, or emergency shutdown is

required.

D

Results in structural

integrity of petroleum

infrastructure being

compromised

D [Not applicable]

Any event or occurrence that may reduce the on-going

structural integrity of the petroleum infrastructure such that an

investigation of the structural integrity is required, or an

anticipated change in operations, or response or other action is

required.

For example subsidence or collapse of the seabed that affects

the foundation of an installation or pipeline.

12


Class Subclass

E

Failure or malfunction of

plant and equipment used

as part of or in a manner

closely associated with


E [Not applicable]

In the Regulations, the CER has prescribed a number of

events or occurrences which in its view would also be

reportable under this class: Failure or malfunction of plant and

equipment used as part of or in a manner closely associated

with petroleum infrastructure.

The Regulations do not constitute an exhaustive list. Where

the petroleum undertaking is of the opinion that a petroleum

incident under this class has occurred this must be notified to

the CER.

F

An event or occurrence

prescribed by the Petroleum

Safety (Petroleum Incident)

Regulations 2014

F1 An uncontrolled fire or explosion

An uncontrolled fire or explosion, even if subsequently brought

under control after any period of time by emergency action.

Intentional fires (e.g. flaring) are not notifiable, unless a failure

in a system occurs such that the flare (fire) becomes

uncontrolled.

13


Class Subclass

F




Regulations 2014

F2

An uncontrolled release of

petroleum gas that could have

resulted in a fatality or a serious

injury

Serious injury is defined in the Petroleum Safety (Petroleum

Incident) Regulations 2014.


in the precincts of petroleum infrastructure which might have

resulted in death, whether immediate or delayed (within one

year), or a confirmed missing person.

Petroleum gas releases must be categorised as either:

Major (≥300 kg);

Significant (≥1 kg and <300 kg); or

Minor (>0.1 kg and <1 kg).

All incidents that could have resulted in a fatality or a serious

injury are notifiable. The CER expects that a petroleum gas

release at a rate in excess of 3 kg/hour is likely to be notifiable

on the basis that it would usually be capable of giving rise to a

serious injury.

14


Class Subclass

F




Regulations 2014

F3

An uncontrolled release of

petroleum liquid that could have


injury







Petroleum liquid releases must be categorised as either:

Major (≥300 litres);

Significant (≥60 litres and <300 litres); or

Minor (≥5 litres and <60 litres).

All incidents that could have resulted in a fatality or a serious

injury are notifiable. The CER expects that a petroleum liquid

release at a rate in excess of 100 litres/hour is likely to be

notifiable on the basis that it would usually be capable of giving

rise to a serious injury.

15


Class Subclass

F




Regulations 2014

F4

An uncontrolled release of a

non-petroleum hazardous

substance that could have


injury

Hazardous substance is defined in the Petroleum Safety

(Petroleum Incident) Regulations 2014 and includes mixtures.










Regulations 2014

F5 Loss of mooring, stability or

buoyancy of a vessel

Any loss of mooring, stability or buoyancy of a vessel is

notifiable.

F




Regulations 2014

F6

A collision by a vessel, vehicle,

crane, helicopter or aircraft with

any petroleum infrastructure

Any such collision must be notified, even if no damage is

sustained.

16


Class Subclass

F




Regulations 2014

F7

Instance of a stand-by vessel

not being in a position to provide

rescue to persons on offshore


Any instance of a stand-by vessel being unavailable is

notifiable, irrespective of whether the absence was justifiable /

required for safety or other reasons.

Note that notification is not required where a stand-by vessel

moves out of position after it has been substituted by a

replacement vessel.

F




Regulations 2014

F8 A person falling into the sea

Any instance where a person falls into the sea must be

notified.

F




Regulations 2014

F9

Mustering on onshore or

offshore petroleum

infrastructure, other than for

planned drills

Any event or occurrence that results in mustering onshore or

offshore must be notified, even when that mustering is only

precautionary. Notification is not required for planned drills.

F




Regulations 2014

F10

Evacuation of onshore or

offshore petroleum

infrastructure, other than for

planned drills

Any event or occurrence that results in evacuation onshore or

offshore must be notified, even when that evacuation is only

precautionary. Notification is not required for planned drills.

17


Class Subclass

F




Regulations 2014

F11

Activation of a blow-out

prevention or diversion system,

or activation of any other

emergency shutdown device, in

each case to provide well

control

Any event or occurrence that requires immediate emergency

action taken in response to a suspected influx must be notified.

For example:

Activation of a pressure control system; or

Activation of a disconnect system.

This includes ‘underground blowouts’, where the well fluids

flow to subsurface rock formations rather than to the surface.

Reports are not required where flow is due solely to variations

in the density of fluid across pipe installed in the well bore, an

effect commonly known as ‘u-tubing’; nor where it is known that

mud previously lost to the formation is subsequently returned,

an effect commonly known as ‘ballooning’ or ‘breathing’.

F




Regulations 2014

F12

A positive flow indication from a

well as a result of unplanned

fluid influx

Any positive flow indication that is confirmed (e.g. by closing in

the well using the blow-out prevention system or a variance in

tripping volumes), must be notified.

Reports are not required where flow is due solely to variations

in the density of fluid across pipe installed in the well bore, an

effect commonly known as ‘u-tubing’; nor where it is known that

mud previously lost to the formation is subsequently returned,

an effect commonly known as ‘ballooning’ or ‘breathing’.

18


Class Subclass

F




Regulations 2014

F13

The detection of hydrogen

sulfide in the course of

operations at a well or in

samples of well-fluids from a

well where the presence of

hydrogen sulfide in the reservoir

being drawn on by the well was

not anticipated

Any presence of hydrogen sulfide in mud returns, mud

samples, bottom hole samples or surface mud gas monitoring

systems, etc. constitutes detection and must be notified if it

was not anticipated.

F




Regulations 2014

F14

Failure to maintain a planned

minimum separation distance

between two or more wells

Where drilling of a well in close proximity to another is

anticipated, a well collision avoidance plan would be drawn up

which would define trajectory limits for the new well (defined to

avoid collision by consideration of uncertainties associated with

well surveying). Where the pre-defined limits are exceeded this

must be reported immediately along with a proposed

remediation plan.

F




Regulations 2014

F15

The collapse, overturning, or

failure of any load-bearing part

of any lift, hoist, crane, or derrick

Any instance of the collapse, overturning, or failure of any load-

bearing part of any lift, hoist, crane, or derrick is notifiable.

19


Class Subclass

F




Regulations 2014

F16

Failure of any equipment

associated with a well being

worked on whose purpose is to

prevent or limit the effect of the

unintentional release of fluids

from the associated well or

reservoir, or whose failure would

cause or contribute to such a

release

Any failure that is identified during maintenance testing must

be notified. For example failure of a blow-out prevention

system to operate as intended during a routine function test.

F




Regulations 2014

F17

Any incident that leads to third

party property damage outside

the boundary fence of the

relevant onshore petroleum

infrastructure or within 500

metres of the relevant offshore


An example of an onshore occurrence would be any sudden

release of pressure that causes a pressure wave on an

onshore installation and breaks the window of a near-by

dwelling must be notified.

20


Class Subclass

F




Regulations 2014

F18

The dropping of an object that

could have resulted in an

outcome specified in paragraphs

(a) to (e) of the definition of

petroleum incident contained in

section 13A(1) of the Act of

1999 or could have resulted in

an occurrence specified in

paragraphs (i) to (xvii) of the

definition of prescribed

occurrence under the

Regulations.

If there was a realistic possibility that, for example, injury, or

loss of petroleum containment could have occurred from the

dropped object, this must be notified.

Table 1: Guidance on what constitutes a petroleum incident

guidance for notification of petroleum incidents part of the ......class b1, and class f1. the...

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