Regulatory Lessons Learned Drills, Plans, Training and Response Presented By Trey Phillips J. Connor Consulting, Inc. www.jccteam.com 1

Beginnings Rivers and Harbors Act 1899 2

Regulatory History Clean Water Act of 1972 – established a basic system for the cleanup of oil spills Required operators to own or have access to spill response equipment CGA formed 1978 Amendments to the Outer Continental Shelf Lands Acts (OCSLA) established liability for cleanup costs and damages 3

Regulatory History Oil Pollution Act of 1990 (OPA 90) Catalyzed by the grounding of the Exxon Valdez, signed into law by President Bush on August 18, 1990 The most comprehensive oil spill liability and prevention regime enacted by any country in the world Primary aspects: Prevention Planning Liability Response 4

Regulatory History Prevention OPA 90 Requirement for double hulled vessels by 2015 SKS Satilla Off Houston, 4 March, 09 40,000,000 Gallons Crude Struck Ensco 74 130 ft. Gash, Outer Hull No Spill It worked!! 5

Regulatory History Prevention DBL 152, The largest spill you’ve never heard of

Various “Experts” said, the 441 foot barge “Will not turn turtle!”

Oops!!

Spill recovery techniques!? How much lost? 1.3 Million Gallons?? Where is it??

OPA Jurisdiction for Prevention and Planning USCG for vessels & marine-transportation related facilities EPA for onshore oil storage facilities DOT-PHMSA for oil transmission pipelines BSEE for offshore facilities 10

Concept of “Responsible Party” RP of offshore facility = the lessee or permittee of the area in which the facility is located OPA imposes strict liability for oils spills  liability without fault Therefore, the RP is the owner or operator of the facility, regardless of who was at fault for the spill 11

Oil Spill Response Plan Requirements for the OCS Preparedness Oil Spill Response Plan Requirements for the OCS 12

BSEE Plan Requirements 30 CFR Part 254 requires operators of all oil handling, storage, or transportation facilities located “seaward of the coast line” to submit an oil spill response plan to BSEE This includes all facilities in state waters that are “outside of the barrier islands” 13

Plan Submission All facilities must be covered under an approved response plan. Plans are approved for a period of two years. Plans must be kept up-to-date; operations must be in compliance with the Plan. Significant modifications must be submitted to BSEE within 15 days: Reductions in response capability Significant increase to any worst case discharge scenario (NTL 2013-N02) Changes to QI/Spill Management Team 14

NTL 2013-N02 Instead of comparing WCD volumes, BSEE is now shifting the focus of a WCD comparison to spill response equipment. If proposed WCD requires more equipment, then you must revise your OSRP and submit to BSEE within 15 days. For drilling WCD, the 15 day deadline begins when you submit an APD.

OSRP Regulations - 30 CFR 254 254.30 When must I revise my response plan? You must submit revision to your plan for approval within 15 days whenever: A significant change occurs in the worst case discharge scenario or in the type of oil being handled, stored, or transported at the facility.

Implications The NTL was issued by BSEE and it affects Oil Spill Response Plans. The NTL has no bearing on BOEM or EP/DOCD process. BSEE and BOEM are still in discussions regarding OSRP approval’s role in EP/DOCD review/approval. They have not yet come to an agreement.

BSEE Definition of a Qualified Individual An English-speaking representative of an owner or operator: located in the United States available on a 24-hour basis with full authority to: obligate funds for surface and subsea operations carry out removal actions communicate with the appropriate Federal officials and the spill response organization 18

Training, Drills & BSEE Unannounced Drill Program Evolution Training, Drills & BSEE Unannounced Drill Program 19

Evolution of Exercises Exercises Mid 90’s Operator filled most or all boxes on Organization chart Training once a year left most unsure of how to perform their assigned duties Started the transition to Contract Spill Management Teams Exercises in Y2k Operator moved to positions on the Organization chart that made sense to their daily expertise Qualified Individual Source Control HR/PIO/Legal Contract SMT’s found their way into most operators Spill Plans Training was dwindling down to the QI for operators Exercises Post-Deepwater Horizon Healthy combination of Responsible Party and contract SMT on Org. Chart All personnel listed on the Org. Chart receive annual classroom training , covering components outlined by BSEE Deepwater source control has outgrown the traditional organization 20

Training Requirements Today and Beyond Spill Management Team and QI must receive annual classroom training SMT members should “Know Their Job” Source Control Section Chief should have Source Control Training. (At this time, BSEE accepts exercises as training) No other guidance given by BSEE regarding types of training for specific team members. 21

BSEE Oil Spill Program Initiatives Inspects oil spill response equipment under contract Conducts unannounced oil spill drills: Develops the spill scenario Establishes an observation plan Initiates exercise with Operator, contract SMT or offshore facility Facilitates and evaluates the exercise Reviews drill documentation (to be submitted w/n 15 business days) Prepares and disseminates a technical analysis of the drill and determines success on a pass/fail basis 22

BSEE Unannounced Exercise Hints Be aggressive, notify responders early Know how to activate your subsea contractor Have an orderly sign-in system and formatted roster Follow the BSEE instructions to the letter when preparing documentation All team members must keep a log of their major actions during the event—recommend use of ICS 214 A Put your name and SMT position at the top of each page If you are named in the OSRP in any position, ensure you have had SMT training in the last year Most INCs are for documentation Problems with past drills or district offices and bad safety record can get you picked.

Recent Lessons from Exercises and Incidents BSEE: Is extremely involved working blowout scenarios Research all possible avenues to solve a well control issue Be ready to provide detailed safety plans for every source control and debris removal operation Communications Ensure good communications between Source Control and Unified Command Request USCG and BSEE liaison at your Source Control Command Post

Recent Lessons from Exercises and Incidents Documentation & Control Ensure contractors and company personnel turn in documents An Incident Action Plan (IAP) will likely be requested if extended well control operations are expected (2-3 days)

Recent Lessons from Exercises and Incidents Training and Records: Initiate organization of training records of contractors and company personnel Initiate organization of all BOP records from date of manufacture through latest testing prior to deployment Source Control Operations: Coordinate all Well Control actions with CG and BSEE Incident Management Leave no doubt that you are in control and are working cooperatively with the USCG and BSEE Get PIO help ASAP

QUESTIONS???? 27