1. Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. Regulatory Dry Run Workshop 2 Transport Session 1 - Onshore Transportation 11 th August 2010 Michael Jordin Principal Design Engineer

2. 2 Aim of the presentation  To assess the regulatory framework for the onshore transportation of CO 2 by cross country pipeline  To cover the following 3 regulatory areas: 1. Planning 2. Environment 3. Safety

3. 3 Onshore Transportation Components of the Application  Construction of 20km of new pipeline  Conversion of 40km of existing National Transmission System pipeline currently used to convey natural gas, for the conveyance of carbon dioxide  Modifications to existing block valves and above ground installations on the NTS pipeline to allow for the conveyance of carbon dioxide instead of natural gas  Construction of a new compressor facility Assumptions  The CO 2 will be transported in gaseous phase (35 barg operating pressure)  The compression facility will comprise two 50% electric drive compressor units and one 50% gas drive standby generator. To allow two stage compression  CO 2 will be transported offshore in dense phase (120 barg operating pressure)

4. 4 (Pure) CO 2 Pressure – Temperature diagram -100 -90 -80 -70 -60 -50 -40 -30 -20 -10 0 10 20 30 40 50 Pressure (barg) 10,000 1,000 100 10 1 0.1 Temperature ( o C) Solid Melting line Vapour (gas) Critical point (73.9 bar 31.1 o C) Triple point (5.1 bar -56.5 o C) Saturation line Sublimation line Dense phase (liquid) Super critical fluid Typical pipeline temperature operating range Approx. area of 2 phase fluid 38 barg 150 barg NOTE - Diagrammatic - Not To Scale

5. Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. Planning

6. 6 Planning – New Pipeline (20km) Pipe-lines Act 1962 – Pipeline Construction Authorisation  Application for Pipeline Construction Authorisation (PCA) under Section 1 of the Pipe-lines Act 1962 to be submitted to the Scottish Government  The Pipe-lines Act relates to on-shore cross country pipelines (except those of public gas transporter, the government or water companies) which are more than 10 miles (16.093 km) long  Pipe-lines Act applies to pipelines for the conveyance of anything other than air, water, water vapour or steam  Under Section 5 of the Act the Scottish Ministers can direct that works authorised by the PCA are deemed to be granted permission under Town and Country Planning

7. 7 Planning – New Pipeline (20km) cont. Pipe-lines Act 1962 – Compulsory purchase In the event of an objection by a landowner to permit the construction of the pipeline across their land:  Under Section 11 of the Act the developer can apply for a compulsory purchase order made by the Scottish Ministers to purchase compulsorily land which is required as the site of any of the works.  Under Section 12 of the Act the developer can apply for compulsory rights order made by the Scottish Ministers to acquire rights over land for pipeline construction and maintenance  Such applications are subject to Parliamentary procedure

8. 8 Planning – Existing Pipeline (40km) cont.  40km of existing NTS natural gas pipeline to be converted for the transmission of carbon dioxide  The existing pipeline will have been constructed under the provisions of the Gas Acts and deemed planning consent under the terms of the General Permitted Development (Scotland) Order  Compulsory purchase powers for the obtaining of servitude rights were available under the Gas Acts  The pipeline will be transferred from the statutory undertaker regulated under the Gas Acts to a non-regulated business  No legal mechanisms have been identified for the transfer of consents which attach to the pipeline  New servitude rights may need to be negotiated with landowners for the use of the pipeline for the conveyance of CO 2

9. 9 Planning – Existing Pipeline (40km) cont.  Consenting options: Change of Use application under the Town & Country Planning (Scotland) Act 1997  Land Rights Electricity Act 1989? Offshore Petroleum Development (Scotland) Act 1975?

10. 10 Planning – Existing Pipeline (40km) cont. Town & Country Planning (Scotland) Act 1997 – Change of Use  Change of Use application to the Local Planning Authorities to cover:  Change of use from conveyance of natural gas to conveyance of CO 2  Modifications to existing block valves and above ground installations to accommodate the conversion  More than one application required CPO Provision  No provision for the developer to apply for CPO, reliant on LPA using their powers under Section 189 of the Act subject to various conditions and obtaining the approval of the Scottish Ministers  Section 189 does not confer a right for local authorities to acquire compulsorily a new servitude

11. 11 Planning – Existing Pipeline (40km) cont. Pipe-lines Act 1962 – Pipeline Diversion  If new sections of pipeline are required to accommodate change of use of the existing NTS pipeline then the works could be undertaken as a diversion of a PCA pipeline under Section 1(A) of the Act.  This assumes the following:  The existing pipeline has PCA consent under Section 1 of the Act  The new pipeline and converted existing pipeline are considered one pipeline for the conveyance of CO 2  Holistic approach, one application to the Scottish Government for the new and existing pipelines  Modifications to existing block valves and above ground installations to accommodate the conversion would be included in the consent.

12. 12 Planning – Existing Pipeline (40km) cont. Pipe-lines Act 1962 – Pipeline Diversion Compulsory Purchase Provision  Provisions for the developer to apply for CPO/Compulsory Rights Order, under Sections 11 and 12 of the Act THESE PROPOSALS REQUIRE CONSULTATION WITH SCOTTISH GOVERNMENT

13. 13 Planning – Existing Pipeline (40km) cont. Electricity Act 1989 – Land Rights  Potential to make use of provisions for compulsory purchase powers on servitudes available under the Electricity Act 1989?  This assumes that:  CO 2 is produced as part of energy production  Prior to conveyance CO 2 is cooled  Generation licence in terms of the Electricity Act 1989  Scottish Ministers may authorise a licence holder to compulsorily acquire land required for activities for which he is authorised by his generation licence to carry on.  This would include acquisition of new rights including servitudes.

14. 14 Planning – Existing Pipeline (40km) cont. Offshore Petroleum Development (Scotland) Act 1975? – Land Rights  Enables the Secretary of State (DECC) to compulsorily acquire land in Scotland  For purposes relating to exploration/exploitation of offshore petroleum and purposes connected therewith  Act includes for the provision of pipelines and associated apparatus or works for conveying gas to or from the places in or under the sea bed where it is stored or to be stored. (added by Oil and Gas (Enterprise) Act 1982 which extended the original purpose of the 1975 Act)  Under the Act “gas” appears not to be limited to natural gas

15. 15 Planning –New AGIs & Compressor Town and Country Planning (Scotland) Act 1997  New above ground installations to be constructed on the new and existing pipeline and the new compressor facility will require planning consent under the T&CP Act (unless consented by the Pipelines Act consent))  Applications to be submitted to the relevant Local Planning Authority

16. Environmental

17. 17 Environmental Impact Assessment – Pipelines Act Pipeline Works (Environmental Impact Assessment) Regulations 2000  The Pipeline Work (Environmental Impact Assessment) Regulations 2000 apply to applications for Pipeline Construction Authorisation under Section 1 of the Pipelines Act 1962  Any pipeline which is intended to convey oil or gas or any pipeline exceeding 40 kilometres in length and 800 mm in diameter which is intended to convey chemicals require an Environmental Statement to be submitted or a request to the Secretary of State for direction that no Environmental Statement need be prepared (determination)

18. 18 Environmental Impact Assessment – Pipelines Act Pipeline Works (Environmental Impact Assessment) Regulations 2000 Query  Clarification is required as to whether CO 2 constitutes a ‘gas’ or ‘chemical’ in terms of the Pipeline Works (EIA) Regulations  Provisions of the CCS Directive (2009/31/EC) which amends the EIA Directive 85/337/EEC to include pipelines for the transport of carbon dioxide streams for the purpose of geological storage needs to be transposed into UK legislation

19. 19 Environmental Impact Assessment – Planning Environmental Impact Assessment (Scotland) Regulations 1999  The Environmental Impact Assessment (Scotland) Regulations 1999 apply to applications under the Town & Country Planning (Scotland) Act 1997.  The regulations do not currently include development for the transport of CO 2 for the purpose of geological storage.

20. 20 Environmental Impact Assessment – Planning Environmental Impact Assessment (Scotland) Regulations 1999 Queries:  Would EIA Regulations apply to Change of Use applications?  Provisions of the CCS Directive (2009/31/EC) which amends the EIA Directive 85/337/EEC :  Annex 1 to include “Pipelines with a diameter of more than 800mm and a length of more than 40km ……… for the transport of carbon dioxide streams for the purpose of geological storage, including associated booster stations”  Annex 11 “Oil and gas pipeline installations and pipelines for the transport of CO 2 streams for the purposes of geological storage (projects not included in Annex I)” needs to be transposed into UK legislation  Schedule 2 of the regulations needs to be amended to include industrial / pipeline installations for carrying CO 2 for the purpose of geological storage

21. 21 Other Environmental Consents  Consent under the Water Environment (Controlled Activities) (Scotland) Regulations 2005 (CAR) - Works in or near water  Licences for the disturbance of Badgers under the Protection of Badgers Act 1992  Registration as a Carrier of Controlled Waste – the CCS Directive (2009/31/EC) amended the Waste Framework Directive so that CO 2 captured and transported for geological storage is not a waste – this needs to be transposed into UK legislation  Permits under Pollution Prevention and Control (Scotland) Regulations – compressor site emissions

22. Safety

23. 23 Safety Consents  Health and Safety at Work etc. Act – Major accident prevention document  Pipeline Safety Regulations (PSR) 1996 Regulations 20 – 6 months notice of commencement of construction submitted to HSE  Pipeline Safety Regulations (PSR) 1996 Regulation 22(2) – notification of change of use of existing pipeline submitted to HSE  Construction (Design and Management) (CDM) Regulations 2007 Sections 7.1 and 7.3 – notice of commencement of construction submitted to HSE  Control Of Major Accident Hazard (COMAH) Regulations 1999 – Major accident prevention policy  Control Of Substances Hazardous to Health (COSHH) Regulations 2002  Gas Safety (Management) Regulations (GS(M)R)  Pressure Systems Safety Regulations (PSSR)

24. 24 Safety Consents  Pipeline Safety Regulations (PSR) 1996 Regulation 22(2) – de-notification of existing pipeline submitted to HSE  CO2 does not currently fall in the "dangerous fluid" category under Schedule 2 of the regulations but the HSE is currently progressing amendments to PSR which will include reclassification of CO2 as a dangerous fluid. The amendments are expected to be published in October 2010  Pipeline Safety Regulations (PSR) 1996 Regulation 21 – re-validation notification of existing pipeline submitted to HSE  14 days’ prior notification of the intention to bring a MAHI pipeline into use so it has the opportunity of a final inspection before a dangerous fluid is first introduced into the pipeline.  Control Of Major Accident Hazards (COMAH) Regulations 2005 – COMAH Licence for Compressor Site  Dependent up on the classification of CO2 under the COMAH Regulations.

25. Consents Timescale

26. 26 EIA Consents – Timescales  Screening (to determine EIA requirements – EIA Regs)  Scoping (2 months)  EIA/ES (15 months) (key stakeholders consultation)  Public consultation  Submit Planning Application to Local Authority (T&CP Application) and/or ‘Pipe-line construction authorisation’ to Scottish Government (PCA Application)

27. 27 Land Rights Strategy  Early discussion with National Farmers Union Scotland / Scottish Rural Properties and Business Association  Legislation to be used will affect use of compulsory powers and provisions for deeds of servitude  CPO Process – estimated 9 months

28. 28 Any questions or other issues