1 August 2010 Shell Upstream International - Europe Consenting Carbon Capture & Storage Scottish Government Workshop - Offshore Pipeline 11 August 2010 Paul Wood Projects and Technology Environmental Specialist

2June 2010RESTRICTED Mains Aquifer Offshore Pipeline Scenario Town & Country Planning Act (Scotland) 1997 Food & Environment Protection Act 1985 Coast Protection Act 1949 Petroleum Act 1998 MHWS 3 Nautical Miles ‘Controlled Waters’ 12 Nautical Miles ‘Limit of Territorial Waters’ 200 Nautical Miles or UK Waters (Continental Shelf Limit) LWM Boyndie BayGIP FEPA Licence PWA Licence Consent to Locate (Schedule 4 of CPA) Crown Estates Licence Marine (Scotland) Act 2010 – Marine Licence? Planning / Marine Activities Regulations

3June 2010RESTRICTED Environmental Regulations MHWS 3 Nautical Miles ‘Controlled Waters’ 12 Nautical Miles ‘Limit of Territorial Waters’ 200 Nautical Miles or UK Waters (Continental Shelf Limit) LWM Boyndie BayGIP Offshore Chemical Regulations 2002 Conservation (Natural Habitats, &c.) Amendment (Scotland) Regulations 2008 Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) Regulations 1999 Water Environment (Controlled Activities) (Scotland) Regulations 2005 CAR Licence Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 ((as amended) Environmental Statement will be submitted and will allow an Appropriate Assessment to be undertaken PON15C Town & Country Planning Act (Scotland) 1997

4June 2010RESTRICTED Environmental Regulations covering CCS activities The Energy Act 2008 (Consequential Modifications) (Offshore Environmental Protection) Order 2010 has updated the following legislation (applicable to pipelines) to cover CCS activities and came in to force on 1 st July 2010: Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) Regulations 1999 (as amended); Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 (as amended); Offshore Chemical Regulations 2002; Other non-specific CCS Environmental Consents required for this scenario: Water Environment (Controlled Activities) (Scotland) Regulations 2005; Coast Protection Act 1949 (as amended); Food and Environment Protection Act 1985; Marine (Scotland) Act 2010 (due to come in to force April 2011)

5June 2010RESTRICTED Safety Regulations Obligations for a Major Accident Hazard Pipeline under Pipeline Safety Regulations 2010 (currently under consultation) in case CO 2 is designated as a dangerous fluid under Schedule 2: Notification to the Health & Safety Executive before construction (no more than 3 years and no less than 6 months) in accordance with Schedule 4 Notification to the Health & Safety Executive before use Preparation of Major Accident Prevention Document for the pipeline Establish, record and review the appropriate Emergency Procedures Regulations are still under consultation. In case CO 2 is not identified as a dangerous fluid under Schedule 2, none of the above will be applicable.

6June 2010RESTRICTED Consenting Timeline Consent/ Application Regulations Regulatory Approval Time Environmental Statement & PON16 Appropriate Appraisal Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) Regulations 1999 (as amended); Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 (as amended) 6 Months CAR LicenceWater Environment (Controlled Activities) (Scotland) Regulations Months PON15COffshore Chemical Regulations month FEPA & Consent to locate *Marine Licence Food and Environment Protection Act 1985; Coast Protection Act 1949 *Both Repealed under Marine (Scotland) Act 2010 (5 th April 2011) 10 Weeks PWAPetroleum Act 1998; Months Notification before Construction Notification before Use Pipeline Safety Regulations Months

7June 2010RESTRICTED Conclusions Existing Oil and Gas legislation has been amended to include CCS activities allowing offshore developers to continue working in a known and well understood permitting regime. Approval timelines are understood and it is accepted that some may vary due to the untested nature of CCS activities. Clarity still required on the Implementation of the Marine (Scotland) Act 2010 and who will regulate outside of Scottish Territorial waters. A decision is required as to whether CO2 will be treated as a dangerous fluid under Schedule 2 of the Pipeline Safety Regulations.