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Montara Oil Spill Report Finally Released Vol. 33 No. 52 16 December 2010 Montara Oil Spill 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 Timor Sea off Western Australia’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 Timor Sea 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 Northern Territory 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 petroleum 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 © 2010 Aspen Publishers. All Rights Reserved. Oil Spill Intelligence Report (ISSN 0195-3524) is published weekly by Aspen This material may not be used, published, broadcast, rewritten, copied, redis- Publishers, 76 Ninth Avenue, New York, NY 10011. Subscription price, tributed or used to create any derivative works without prior written permission $879/one year. All rights reserved. Reproduction in whole or in part without from the publisher. permission is strictly prohibited. Periodicals postage paid at Frederick, MD, and additional mailing offices. POSTMASTER: Send address changes to OSI, Permission Requests: For information on how to obtain permission to repro- Aspen Publishers, 7201 McKinney Circle, Frederick, MD 21704. duce content, please go to the Aspen Publishers website at www.aspenpublishers. com/permissions. Oil Spill Intelligence Report is sold with the understanding that it is not engaged in rendering legal counseling or other professional services. If legal Purchasing reprints: For customized article reprints, please contact Wright’s Reprints counseling or other professional assistance is required, the services of a at (877) 652-5295 or go to the Wright’s Reprints website at www.wrightsreprints.com. competent practitioner in the relevant area should be sought. Subscription Services: To subscribe, call 1-800-638-8437. For customer service, Editorial Offices: Contact the editor, Martha Hyder, at martha.hyder@ call 1-800-234-1660. windriverenvironmental.com. 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
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