1. Health and Safety Executive Health and Safety Executive Competent Authority & Data Reporting HSE/DECC Consultation Events - Spring 2014 EU Offshore Directive Transposition Steve Walker Head of Strategic Intervention Health & Safety Executive, Energy Division

2. Summary Competent Authority requirements Background Requirements in the Directive How we propose to implement Common data reporting requirements Background Current proposals

3. Competent Authority - Background Post Macondo, European Commission concerns were not just focused on the offshore industry The regulators were also scrutinised Wide range of national offshore regulatory bodies Integrated - Separate – Absent None incorporated all the best regulatory practises Stakeholder/European Parliament mistrust and concerns about the need for regulatory independence Strong consideration of an EU-wide offshore regulator Eventually, the Directive included tight requirements for national offshore regulatory bodies UK will need to change its offshore regulatory bodies

4. Competent Authority requirements (1) The safety and environmental regulation under the Directive should be incorporated into a Competent Authority (CA) public authority The CA should be suitably resourced and empowered The CA should be objective and independent Separated from functions relating to economic development, licensing, revenue managements etc Alternative arrangements allowed » where disproportionate given level of offshore activity

5. Competent Authority requirements (2) The CA achieves “transparency, consistency, proportionality and objectivity” in its regulation of safety and environmental protection The CA to make its policies, processes and procedures open Detailed requirements for the CA given in Annex III of the Directive

6. Competent Authority – functions (1) Advising the Licensing Authority on the capability (technical and financial) of applicants and operator appointment Assessing and accepting various reports and notifications Provide effective oversight Annual plans Overseeing compliance –Inspections –Investigations –Enforcement

7. Competent Authority – functions (2) Establishes confidential reporting mechanisms Submits annual report to the Commission: Amount of regulatory activity Performance of the industry Incident data Initiate investigations for major accidents, and make reports public Cooperate with other CAs.

8. UK Competent Authority (1) Proposal is: –A DECC & HSE partnership CA –CA partners working under an MoU with a set of common CA arrangements –Each party concentrating on their existing expertise, with day-to-day functions delivered by respective parts of DECC OGED and HSE’s Energy Division –Senior level DECC/HSE Competent Authority Management Board –Broadly similar to onshore COMAH CA

9. UK Competent Authority (2) Minimum change necessary to implement the Directive Avoids any major machinery of government changes Provides a single, consistent regulatory face for industry and stakeholders on major hazard safety and environmental events offshore (low probability/high consequence) Implementation of Wood Review recommendations will give the strong safeguards of DECC independence

10. UK Competent Authority (3) A single regulatory face for taking forward the requirements in the Directive An IT portal for all notifications and submissions to the CA, on major hazard safety or environmental issues A single set of CA assessment processes/procedures for accepting and/or assessing safety cases, notifications etc A CA website, holding all CA guidance and procedures A single enforcement model covering all CA enforcement

11. UK Competent Authority (4) A single CA intervention plan for each duty holder, covering all planned CA inspection activities CA offshore inspections fully coordinated and planned Presumption of joint DECC/HSE visits whenever appropriate Coordinated CA investigations, with early decision as to which regulatory partner to lead HSE “personal” safety issues excluded from CA arrangements, but only a small % of HSE offshore activity No changes to DECC’s existing environmental regulation via offshore chemical/oil discharge permits and environmental assessment regime, which will all remain outside the CA. Impact assessment to be in the consultation document

12. Common data reporting (1) Concerns about consistency of reporting offshore incidents: -> lack of transparent in operator safety & environmental performance -> lack of public access to comparable data -> Annex IX, giving broad scope for common data reporting for offshore incidents and for Member State Annual Reports But, “delegated Acts” required to further develop this scope

13. Common data reporting (2) Data categories fairly obvious, e.g. HCRs Loss of well control Significant loss of structural integrity Need clear definitions, though Work now going ahead via EUOAG, with OGP, IADC and IMCA representing industry To be concluded April 2014 -> delegated Regulation

14. Common data reporting (3) These data reporting requirements are in addition to RIDDOR Concerns: Consistency with existing data recording categories – e.g. HCRs Avoiding duplication with other reporting requirements Clarity of requirements Level of detail required Watch this space!

15. QUESTIONS? © Crown copyright 2014. Reproduced with the permission of the Controller of Her Majesty’s Stationery Office and HSE