Vol. 33 No. 52 16 December 2010

Montara Report Finally Released

After months of anticipation, and more than proposes accepting 92, noting 10, and not accepting one year after the leaking H1 well in the Montara 3 recommendations. The Government Response oil field in the Sea off ’s also details actions taken by the government prior to Kimberley coastline was shut in, the report from the release of the Commission’s report. Montara Commission of Inquiry has been released to the public, along with a draft Government Response. Key actions taken by the Government to date include The spill from the H1 well, owned by Thailand- ensuring the integrity of the five remaining wells on based PTT Exploration & Production Australasia the Montara platform and initiating an independent Public Company Limited (PTTEP), was the largest in review of PTTEP’s Action Plan, due by the end of Australian history, with approximately 30,000 barrels the year, which Ferguson will use to evaluate whether (1.26 million gallons) of hydrocarbons released into PTTEP should be allowed to retain its license to the between August and November 2009 operate in the Montara field, as well as maintaining (see OSIR, 27 August 2009 and subsequent issues). its other interests.

Australian Minister for Resources and Energy, In addition to issues with PTTEP’s practices, the Martin Ferguson, received the report in June 2010, Commission found regulatory problems, stating that but cited various reasons for delaying its release “the Department of Resources to the public (see OSIR, 17 September 2010). (NT) was not a diligent regulator and its minimalist Environmental groups had expressed concern that approach to its regulatory responsibilities gave it little the results of the inquiry were not available prior chance of discovering these poor practices.” The H1 to the 11 November 2010 closing of applications well was located in Commonwealth offshore waters, for new offshore exploration permits. which are regulated by the Offshore Petroleum and Ferguson, who was recently re-elected in a very close Greenhouse Gas Storage Act 2006 (OPGGS). Under contest, defended his position, saying, “… acreage the OPGGS, area wells are managed by a Joint release is critical to the offshore petroleum industry Authority (the Federal Minister) and a Designated and Australia’s energy security. Shutting down the Authority — in this case, the NT. The Commission industry and putting jobs and the economy at risk recommended that the NT’s delegation as a does nothing towards achieving Australia’s goals.” Designated Authority for the Territory of Ashmore- Cartier Island offshore area (the location of the The Montara Commission of Inquiry was set up to Montara platform) be revoked. At a minimum, the investigate the likely causes of the blowout, and to make Commission suggested that its proposal to establish recommendations on how to prevent future incidents. a single national offshore petroleum regulator should Not surprisingly, given early testimony in the case (see be pursued. OSIR, 25 March 2010, 8 April 2010), the Commission found that the blowout at the H1 well occurred as a The draft Government Response noted the result of the failure of the primary well control barrier; seriousness of the Commission’s recommendations; however, in addition, PTTEP’s procedural shortcomings however, rather than revoke the NT’s Designated were widespread and systematic. Authority, the Government chose instead to appoint a new delegate to the Director of Energy position The Commission’s report includes 100 findings and to serve during the development of a new, national 105 recommendations. The Government Response regulator for offshore petroleum activities. oil spill INTELLIGENCE REPORT

For the long term, the Government proposes The Australian Senate passed two bills on 28 October expanding the functions of the National Offshore 2010 that strengthen and expand the National Petroleum Safety Authority to include regulation of Offshore Petroleum Safety Authority’s oversight structural integrity, environment plans, and day-to- of well-related occupational health and safety and day operations associated with petroleum activities, structural integrity issues. minerals extraction, and greenhouse gas storage in Commonwealth waters. This expanded entity will be The release of the Commission’s Report and the draft renamed the National Offshore Petroleum Safety and Government Response included a call for submissions Environmental Management Authority (NOPSEMA). in response to the Report. The consultation period will remain open to the public through Friday, The target date for establishing NOPSEMA is 25 February 2011. 1 January 2012. The Government further proposes that the Joint Authority concept be retained to ensure that For more information, see www.ret.gov.au/ states and territories are still able to actively participate Department/responses/montara/report/Pages/Reports. in resource development. A National Offshore aspx; www.aar.com.au/pubs/ener/foenenov10_01.htm; Petroleum Titles Administrator (NOPTA) will also be www.abc.net.au/news/stories/2010/11/03/3056168. established to deal specifically with title administration htm?section=justin; and http://minister.ret. and resource management. The Government noted, gov.au/MediaCentre/MediaReleases/Pages/ “Separating titles and resources management from the FinalReportoftheMontaraCommissionof regulation of safety and the environment will avoid InquiryReleased.aspx. conflict of regulatory objectives.” Carrier Spills Oil at Liverpool Docks The MV Antonis, a Greek-owned bulk carrier, Accident Investigation Branch is conducting an was maneuvering through the Liverpool, England investigation into the cause of the spill. (United Kingdom) enclosed dock system last week when it struck a dock passageway and spilled about The spill occurred near a nature reserve. The 250 metric tons (73,500 gallons) of heavy fuel oil. Seaforth reserve is in the heart of the Liverpool Response crews deployed booms and closed Langton docks, at the mouth of the Mersey River, and hosts a Lock, an access route to the Mersey River near the large number of migrating ducks and other waterfowl spill site, to prevent oil from flowing downstream. during the winter months. A few black headed gulls were caught in the oil while roosting on ice outside of Commercial operations, including cruise ships, were the reserve, but it appears that oil did not reach the not hindered, but were redirected through Gladstone reserve itself. Lock. The Port of Liverpool was pleased with the efficient implementation of their emergency “The spillage shouldn’t have an enormous impact, procedures in the wake of the incident. The Marine but if the dock gates were to be opened and the oil

Group Publisher: Paul Gibson Managing Editor: Vicki Dean Editor: Martha Hyder Designer: Don Torres

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Page 2 For subscriptions call 1-800-638-8437 16 December 2010 oil spill INTELLIGENCE REPORT got out into the open sea, it would have a seriously system, and has not had an impact on the Mersey. devastating effect,” reported Tim Melling, senior We will continue to work with the port authority conservation officer for the Royal Society for the on the clean up, this includes ensuring safe retrieval Protection of Birds, a nonprofit group that works to and disposal of the oil.” Cleanup could take up to secure a healthy environment for birds and wildlife in two weeks. the United Kingdom. For more information, see www.liverpoolecho.co.uk/ “The Environment Agency is working closely with the liverpool-news/local-news/2010/12/13/oil-spill-in- port authority to advise them on their environmental mersey-docks-100252-27820493/ and http://www. responsibilities,” said a spokesman for the liverpooldailypost.co.uk/liverpool-news/regional- Environment Agency. “At this time, we understand news/2010/12/14/investigation-launched-into- that the spill has been contained within the dock liverpool-docks-oil-spill-92534-27821149/. Chicago Area Pipeline Spill Disrupts Traffic

A pipeline spill of 21,000 gallons (500 barrels) of Rich Berndt, Lockport Township Fire Protection crude oil near Lockport, Illinois (USA) disrupted the District Director of Fire Prevention, assured area Tuesday, 14 December 2010 morning commute in the residents that there was no cause for concern Chicago area. Metra, a northeast Illinois commuter regarding health effects related to the spill. It was rail system, suspended service for several hours, local reported that oil had entered a wetland area, but the streets were closed, and nearby Amtrak trains also nearby Illinois & Michigan Canal appeared to be experienced cancellations and delays. unaffected.

A passerby reported petroleum odors in the area This is the second pipeline spill in the Chicago area in and Lockport firefighters responded and discovered recent months. In an unrelated event, on 9 September the spill. Hazmat teams and the US Environmental 2010, a pipeline owned by Enbridge Energy Partners Protection Agency (EPA) were called in to assess air LP was found to be leaking in Romeoville, a Chicago quality and other potential environmental, health, suburb immediately northeast of Lockport. An and safety impacts, and to help clean up the spill. estimated 256,000 gallons (6,100 barrels) were spilled in that incident (see OSIR, 23 September 2010). The discharge came from a 12-inch diameter underground pipeline connected to the Lemont, For more information, see: http://yosemite.epa.gov/ Illinois Citgo Refinery. The pipeline is owned by opa/admpress.nsf/0/CBAF409CE34B7025852577F90 West Shore Pipe Line Company, and is operated by 081E570; www.suntimes.com/2845379-417/oil-service- Buckeye Partners, LP. Although the pipeline was trains-amtrak-leak.html; www.mysuburbanlife.com/ shut down shortly after the spill was discovered, EPA lemont/features/x1167176913/Oil-leak-near-Lemont- estimates that 21,000 gallons (500 barrels) of crude s-Citgo-Refinery-halts-traffic-Metra; and http:// oil may have been released. It remains unclear what heraldnews.suntimes.com/news/2846350-418/service- caused the leak, or when it may have started. amtrak-oil-delayed-leak.html. USCG Requires Updated Plans

The US Coast Guard’s (UCG’s) 22 February 2011 Regulations (CFR), Part 155. Certain vessels that deadline for updating existing approved Vessel engage in lightering operations are also required to Response Plans (VRPs) to include salvage and marine have VRPs when the cargo lightered is destined for a firefighting requirements is fast approaching. Vessels port or place subject to US jurisdiction (33 CFR 1015). that carry Groups I–IV oils and that are US vessels, operate on navigable waters of the United States, The salvage and marine firefighting provisions of or that transfer oil in a port or place subject to the 40 CFR Part 155, Subpart I require the planholder jurisdiction of the United States are required to have to ensure, by contract or other approved means, a VRP, as codified in Title 33 of the Code of Federal that response resources are available to respond, if

Page 3 For subscriptions call 1-800-638-8437 16 December 2010 oil spill INTELLIGENCE REPORT necessary. It is the responsibility of the ship owner Other provisions of VRPs that may need to updated by or operator to ensure that any salvage or firefighting 22 February 2011 concern dispersant service providers companies under contract have the necessary and their capabilities, and resource providers and capabilities, as outlined in the regulations. specific resources necessary to provide oil-tracking capabilities. For example, the VRP for manned vessels As part of the contract, the ship owner must enter carrying Groups II–IV petroleum oil as a primary cargo into a written funding agreement so that salvage and that operate in any inland, nearshore, or offshore area marine firefighting responses are not delayed due to with pre-authorization for dispersant use must list, and funding negotiations at the time of an incident. The ensure availability through contract or other approved funding agreement must state how long the agreement means, response resources capable of conducting will remain in effect, and must be provided to the dispersant operations within those areas. Similarly, USCG for approval. VRPs for vessels carrying Groups I–IV petroleum oil as a primary cargo must identify, and ensure their The regulation notes that the response criteria specified availability through contract or other approved means, (e.g., quantities of response resources and their response resources necessary to provide aerial oil arrival times) are planning criteria, not performance tracking to support oil spill assessment and cleanup standards. Compliance with the salvage and marine activities. Specific requirements can be found at 40 CFR firefighting regulations is based on whether a covered §§155.1035(i), 155.1040(j), and 155.1050(k) and (l). response plan ensures that adequate response resources are available, not on whether the actual performance For more information, see www.emergency-response- of those response resources after an incident meets planning.com/blog/bid/28652/USCG-Mandates- specified arrival times or other planning criteria. The Vessel-Response-Plan-Compliance-by-Feb-22-2011; USCG intends to use its enforcement discretion in http://tinyurl.com/24zp2ao; and www.resolvemarine. light of all facts and circumstances regarding what com/docs/IG%20Circular%20-%20Steamship%20 transpires during an actual incident. Mutual.pdf.

World News Briefs Offshore Safety Summit 2011

Greek Ferry Spills Fuel in Harbor Offshore Safety Summit 2011 will be held at the Marcliffe Hotel & Spa in Aberdeen, Scotland (United The passenger ferry, Aegean Star, spilled an Kingdom) from 28 February to 1 March 2011. The undisclosed amount of fuel into the waters of Summit aims to provide senior offshore professionals the port of Mytilene (Greece), the main port with insights into current safety procedures, oil spill of Lesvos island, on the morning of Sunday, response strategies, and new technologies to help guide 12 December 2010, when it rammed the right them toward a better balance of profit versus risk. entrance to the harbor. The ferry proceeded to dock, disembarked passengers, and notified Topics to be discussed at the Summit include creating a the port authority, which will likely begin an safety-conscious company culture; best practices in oil investigation into the cause of the collision and spill response and crisis management; and “how best subsequent spill. A gash of 8 meters (26 feet) in to respond to the media, public and authorities while the side of the ferry allowed a “major” amount of maintaining business continuity,” among others. Key fuel oil to spill, according to local media coverage. speakers at the event will include Gordon McDonald, No passengers were harmed in the incident, Director of Hazardous Instillations at Health Safety although the stormy sea conditions are being Executive (HSE) UK; Jaap Klein Nagelvoort, Vice blamed for damaging several trucks that were on President of Production Europe for Shell; Roald board the ferry at the time of the incident. Gunnar Riise, Vice President HSE of Statoil; and Brian Kinkead, Supply Chain Director at Oil and Gas UK. For more information, see www.ana.gr/anaweb/user/ showplain?maindoc=9396258&maindocimg= For more information, or to register for the Summit, 9396662&service=100. see: www.offshoresafetysummit.com.

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