Petroleum Safety Regulation - the Norwegian Way

1. Petroleum Safety Regulation- the Norwegian Way Research fellow Hanne Sofie Logstein, Scandinavian Institute of maritime Law, Department of Petroleum Law h.s.logstein@jus.uio.no

2. Deepwater Horizon • How could this accident have been avoided • And what´s law got to do with it?

3. The reality… • Hazardous surroundings • Risky operations • Dangerous products • Rapid technological development ... meets law • Traditionally a prescriptive system witch set specific demands • Monitor the compliance • Sanction when breach of obligations

4. Problem with ”traditional” regulation and safety • The fixed regulation does not cope for the development • The responsibility for the chosen solutions lies with the authorities • Encourage a passive attitude among the companies • Worst case scenario: The hydraulic door

5. The Doctrine of Sources of Law Law Common law EEA Preparatory works Decisions of the court Human rights Policy considerations

6. Acts and Regulations I • Eight acts –the most important: • The Petroleum Activities Act (PA) • The Pollution Control Act • The Working Environment Act • Six HSE regulations: - The framework regulations (FW) (Royal Decree) - Subordinate regulations: • The management regulations • The information duty regulations • The facilities regulations • The activities regulations

7. Acts and Regulations II - Temporary regulations relating to safety and working environment for certain petroleum facilities on land and associated pipeline systems ---------------------- • Five new regulations related to health, safety and the environment in the petroleum activities on offshore and onshore facilities • Replaces the old HSE –regulation • Enter into effect on 1 January 2011

8. Safety in the Petroleum Act • Measures to: • Prevent harm to personnel, the environment and financial values • Maintain production and transport regularity • Enable the probability of harm to be counteracted, withstood or remedied (Proposition to the Odelsting No 43 (1995-96), comments to the PA § 10-1, see Guidelines to the Framework regulation section 2)

9. Functional requirements • The regulations is largely set as functional requirements witch describe what is to be achieved rather than provide concrete solutions • Most of them vague and wide –ranging: “Petroleum activities shall be safe and prudent, both in relation to an individual and an overall con­sideration of all the factors of importance to planning and implementation of petroleum activities as regards health, environment and safety”FW regulation § 8 • But some are spesific: Facilities shall be designed so that no employee is exposed to noise that is harmful to hearing. By noise that is harmful to hearing is meant a daily noise exposure which in the course of a workshift exceeds a twelve-hour equivalent sound level of 83 dB(A), or an impulsive sound level of Lpeak = 130 dB(C).

10. FW § 9 Principles relating to risk reduction • Harm or danger of harm to people, the environment or to financial assets shall be prevented or limited ... • Over and above this level the risk shall be further reduced to the extent possible... • ...shall choose the technical, operational or organisational solutions which according to an individual as well as an overall evaluation of the potential harm and present and future use offer the best results, provided the associated costs are not significantly disproportionate to the risk reduction achieved.

11. Sources not legally binding • Guidelines, standards and statutory interpretations • Suggestion of how to meet the requirements If “makes use of a standard recommended” … “may as a rule take it that the regulation requirements have been met” FW § 18 • States a level • “Harm or danger”… “shall be prevented or limited in accordance with the legislation…including internal requirements and acceptance criteria” FW § 9

12. The Sources of Law in the petroleum Safety System Standards Desitions of the Court Law Regulations Identical letters Guidelines Interpretations Orders White papers Statements from co-operative bodies

13. The Companies (the operator) • Obliged to establish, follow up and further develop a management system (FW § 13) • Internal norms • Internal control • “The operator shall see to it that everyone carrying out work for him, either personally, by employees, contractors or sub-contractors, complies with requirements contained in the health, environment and safety legislation.”

14. The Petroleum Safety Authority (PSA) • Consents (but no approval) to certain petroleum activities • Inspections, identifying non –conformance, issuing orders • Cooperation with the companies and the worker organisation

15. The administrations role Desitions of the Court Permissions Law Regulations Standarder Identical letters Guidelines Interpretations Orders White papers Statements from co-operative bodies

16. The safety system • The regulations largely set functional requirements • These requirements describe what is to be achieved rather than provide concrete solutions • Extensive use of legally, not- binding sources as guidelines, interpretations, standards aso • The industry is obliged to make their own safety system with internal norms and control • The responsibility for safe operations is transferred from the authorities to the licensees and operators

17. From a legal point of view • The problem with vague regulation • Interpretation within Government administration • Has safety improved as a result of the safety management system?

18. Thank you for the attention