Regulatory Lessons Learned Drills, Plans, Training and Response

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

2. Beginnings Rivers and Harbors Act 1899

3. 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

4. Regulatory HistoryOil 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

5. Regulatory HistoryPrevention • 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!!

6. Regulatory HistoryPrevention DBL 152, The largest spill you’ve never heard of

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

8. Oops!!

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

10. OPA Jurisdiction forPrevention 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

11. 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

12. Preparedness Oil Spill Response Plan Requirements for the OCS

13. 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”

14. 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

15. 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. NTL 2013-N02

16. 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.

17. 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.

18. 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

19. Evolution Training, Drills & BSEE Unannounced Drill Program

20. 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

21. Training RequirementsToday 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.

22. 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

23. 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.

24. 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

25. 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)

26. 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

27. QUESTIONS????