Petroleum Environmental Regulations
IN EXERCISE of the powers conferred upon the Ministry by Article 45 of the Petroleum Law of Somalia, Law No. XGB/712/08 dated on 06/08/2008 the Minister hereby issues the following:-
These Regulations may be cited as “The Petroleum Environmental Regulations, 2017” and shall come into force on the date approved by the Council of Ministers.
These Regulations apply to:
- Upstream and midstream Petroleum Operations in connection with Petroleum resources of the Federal Republic of Somalia; and
- Petroleum Operations within and outside Somalia where a Petroleum deposit extends beyond the Continental Shelf and within the Exclusive Economic Zone of the Federal Republic of Somalia.
Each Authorised Person and person who performs a function, discharges a duty or exercises a power under this regulation in relation to the exploration, development and production of Petroleum Resources shall take into account and give effect to the environmental principles prescribed by the Directorate of Environment and any other relevant legislation which shall be instituted to apply to Petroleum Operations.
Unless otherwise indicated, all capitalised terms shall have the meaning ascribed to them in the Law unless specifically noted. In these Regulations, unless the context otherwise requires:-
Means a person appointed as Accountable Officer under Regulation 11 of these Regulations.
Means the International Association of Oil & Gas Producers.
Means the Petroleum Law of Somalia, Law No. XGB/712/08, or any successor legislation, which achieves the same aims and objectives of regulating petroleum activities.
Means the system prescribed by Regulations 11 to 15 of these Regulations.
“Environmental Management Plan”
Means the prescribed by Regulation 16 of these Regulations.
includes any procedures that are necessary to implement the process,
“Somali Petroleum Authority” (SPA)
Means the authority to be established pursuant to the Law. Until the SPA is established, the Petroleum Regulatory Affairs department of the Ministry shall exercise the functions and powers of the SPA, and the other provisions of these Regulations shall be read accordingly.
- The standards and guidelines prescribed in these Regulations include any amendments made from time to time.
- If there is any inconsistency between these Regulations and a standard or guideline prescribed in it, these Regulations shall prevail to the extent of the inconsistency.
- The Environmental Management Plan shall be submitted to the Ministry no later than sixty (60) days prior to commencement or the proposed Petroleum Operations of the Authorized Person.
- An Authorized Person who is already carrying out Petroleum Operations on the date of coming into force of these Regulations shall submit its Environmental Management Plan to the Ministry no later than ninety (90) days from that date.
- A person who undertakes petroleum activities shall take into account and give effect to the environmental principles prescribed in the regulations and any other applicable enactments.
- An Authorized Person undertaking Petroleum Operations shall
- take necessary measures to ensure that Petroleum Operations are conducted in a safe and secure manner;
- establish and implement effective and safe systems for the following:-
- Principles of pollution control and any waste materials;
- Air quality management and control;
- Fire prevention in natural environments;
- Noise management and control;
- Blasting, vibration and shock management and control;
- Water management and pollution control;
- Disposal of waste material;
- Soil pollution and erosion control;
- Discharge of drill cuttings and associated drill fluids;
- Management of residue stockpiles.
- Leaks and spills
- The prevention of pollution resulting from Petroleum Operations, in accordance with the law as well as defined in Joint E+P Forum/UNEP Environmental management in oil and gas exploration and production.
- A person shall not conduct Petroleum Operations in an area unless the required environmental impact assessment has been conducted or any other relevant environmental statutory requirement as prescribed in these Regulations and other applicable enactments have been complied with including:
(a) Reconnaissance permit;
(b) Production Sharing Agreement;
(c) Surface Access Permit.
- The cost of the environmental impact assessment will be born entirely by Authorized Person or applicant for the permit;
- The content and format of the environmental impact assessment shall conform to IFC Performance Standard 1 Assessment and Management of Environmental and Social Risks and Impacts, January 1, 2012, and Aching Ogola, Environmental Impact Assessment General Procedures (17 November 2007).
- An Authorized Person carrying out Petroleum Operations is strictly liable for any pollution damage caused by or resulting from the Petroleum Operations except where the damage is willfully caused by a third party save and except where the Authorized Person was negligent in failing to prevent such damage.
- Where several Authorized Persons or subcontractor parties are involved in Petroleum Operations, the parties are jointly and severally liable for any pollution damage caused by or resulting from Petroleum Operations.
- Where pollution damage occurs as a result of Petroleum Operations conducted without proper authorization:
- The person who conducted the Petroleum Operations; and
- Any other person who took part in the Petroleum Operations and who knew or should have known that the activity was conducted without proper authorization are strictly liable for the damage.
- An Authorized Person shall institute the necessary measures to remedy any pollution caused.
- Where the remedial measures are not taken within the time limit set by the SPA a third party may be engaged for the performance of the measures, and the Authorized Person shall be liable for any related costs.
- Where there are several permit holders, a claim for compensation for pollution damage shall initially be made against the Authorized Person.
- Where there are several Authorized Persons and one of them fails to pay the share of the compensation, the unpaid amount shall be paid by the other Authorized Persons in proportion to their participating interest.
- Where an event of force majeure results in pollution damage, the Minister shall, on the advice of the SPA, the SPA shall assess the damage taking into account the following criteria:
- the scope of the activity,
- the measures taken to avoid or mitigate the effects of the force majeure event,
- the situation of the party that has sustained the damage as a result of the force majeure event, and
- The insurance opportunities for each party.
- Based on the assessment, the Minister shall require the person liable for the pollution damage to pay compensation.
- The Management System shall:
- be systematic, explicit, comprehensive and proactive; and
- apply to all the Petroleum Operations of the Authorized Person and to the following plans and program:
- all permits issued by the SPA; and
- The Environmental Management Plan under Regulation 16 of these Regulations.
- When an Authorized Person engages in Petroleum Operations, the Authorized Person shall ensure that these activities are conducted in accordance with the applicable provisions of:
- these Regulations;
- ISO standard 14001 (Environmental Management Systems);
- ISO standard 9000 (Quality Management);
- The prescribed IOGP guidelines for oil and gas operations as detailed in Regulation 16(2).
- Without limiting the generality of sub-regulation (2) of these Regulations, the Authorized Person shall ensure that Petroleum Operations are conducted in accordance with the Development Plan, the Management System, programmes and plans developed and implemented by the Authorised Person in accordance with these Regulations;
- If an Authorized Person is required by these Regulations to develop a program, process, procedure or plan, the SPA may order amendments to it if the SPA considers it necessary for environmental reasons or if it is in the public interest to do so.
- The Authorized Person shall appoint an Accountable Officer to ensure on its behalf that it is Management System and the plans and programs referred to in Regulation 11(1) (b) of these Regulations are established, implemented and maintained in accordance with these Regulations.
- Within thirty (30) days after the appointment of the Accountable Officer, the Authorized Person shall notify the Somali Petroleum Authority in writing of the name, qualifications and duties of the person appointed and ensure that the Accountable Officer submits to the SPA a signed statement accepting the responsibilities of the position.
- The Authorized Person, and as applicable, the shareholders of such Authorized Person, shall ensure that the Accountable Officer has authority over the human and financial resources required to:
- establish, implement and maintain the Management System and the plans and programs referred to in Regulation 11(1)(b) of these Regulations;
- ensure that the activities of the Authorized Person are carried out in a manner that meets their obligations under the Law; and
- Perform any other requirement of these Regulations.
- The Authorized Person shall establish documented policies and goals for the management and improvement of environmental protection and shall ensure that its Management System, as well as the plans and programs required under Regulation 11(1)(b) of these Regulations, are based on those policies and are designed to achieve those goals.
- The policies shall include a policy for the internal reporting of hazards, potential hazards, near misses and incidents that includes the conditions under which the person’s employer will grant a person who makes a report immunity from disciplinary action.
- The goals shall include goals for the prevention of environmental releases, fatalities, illnesses and injuries and for the response to incidents and emergencies.
- The Accountable Officer shall issue a policy statement that establishes the overall commitment of the Authorized Person to the policies and goals and shall communicate them to its employees.
An Authorized Person shall have an organizational structure that enables it to:
- meet the requirements of the Management System and its obligations under the Law;
- identify and communicate the roles, responsibilities and authority of the officers and other employees at all levels of the organization of the Authorized Person ; and
- Demonstrate that the human resources allocated to establish, implement and maintain the Management System are sufficient and trained to meet the requirements of the Management System and the obligations under the Law, based on an annual documented evaluation of need.
- In carrying out its activities, an Authorized Person shall, as part of its Management System and plans and programs referred to in Regulation 11(1)(b) of these Regulations:
- establish and implement a Process to set objectives and targets that will achieve the goals established under Regulation 11(3) of these Regulations and to ensure their annual review;
- develop key performance indicators to measure the performance of the Authorized Person in achieving its goals, objectives and targets;
- establish and implement a Process to identify and analyze all hazards and potential hazards;
- establish and maintain an inventory of the hazards and potential hazards referred to in sub-regulation (1)(c) of this Regulation;
- establish and implement a Process to evaluate and manage the risks associated with the identified hazards, including the risks related to normal and abnormal operating conditions;
- establish and implement a Process to develop controls to prevent, manage and mitigate the identified hazards and risks and to communicate those measures to anyone who is exposed to the risks
- establish and implement a Process to identify and monitor compliance with all legal requirements that are applicable to the Authorized Person in matters of environmental protection;
- establish and maintain a list of the legal requirements of sub-regulation (1)(g) of this Regulation;
- establish and implement a Process to identify and manage any change that could affect the environmental activities of the Authorized Person or their impact on the environment, including any new hazard or risk and any change in a design, specification, standard or procedure in the organizational structure of the Authorized Person or in the legal requirements applicable to the Authorized Person;
- establish and implement a Process to develop environmental competency requirements and training programs for employees and other persons working with or on behalf of the Authorized Person;
- establish and implement a Process to verify that employees and other persons who work with or on behalf of the Authorized Person are trained and to supervise them to ensure their environmental competency;
- establish and implement a Process to make employees and other persons who work with or on behalf of the Authorized Person aware of their responsibilities in relation to the Processes and procedures required by these Regulations;
- establish and implement a Process for the internal and external communication of information that relates to environmental protection;
- establish and implement a Process to identify the documents required for the Authorized Person to meet its obligations under the Law;
- establish and implement a Process to prepare, review, revise and control those documents, including a process to obtain approval of the documents by the appropriate person;
- establish and implement a Process to generate, retain and maintain records that document the implementation of the Management System and the plans and programs referred to in Regulation 11(1)(b) of these Regulations and to provide access to those who require them in the exercise of their duties;
- establish and implement a Process to coordinate and control the operational activities of employees and other people who work with or on behalf of the Authorized Person so that each person is aware of the activities of others and has the information that will enable them to perform their duties in a manner that ensures the protection of the environment;
- establish and implement a Process for the internal reporting of hazards, potential hazards, near misses and incidents and to take corrective preventative actions, including steps to manage imminent hazards;
- establish and maintain a data Management System to monitor and analyze trends in the hazards, potential hazards, near misses and incidents referred to in sub-regulation (1)1 of this Regulation;
- establish and implement a Process to prepare for and respond environmental incidents and emergency situations;
- to evaluate the adequacy and effectiveness of the plans and programs referred to in Regulation 11(1)(b) of these Regulations, establish and implement a process to inspect and monitor the activities and facilities to which those programs apply and to take corrective and preventive actions if a deficiency is identified;
- establish and implement a Process to evaluate the adequacy and effectiveness of the Management System and to monitor, measure and document, through key performance indicators, the performance of the Authorized Person in meeting its obligations under the Law;
- establish and implement a quality assurance program for the Management System and for each plan and program referred to in Regulation 11(1)(b) of these Regulations including a process to conduct audits, with a minimum audit cycle of every six (6) months or once per lifetime of the project if it is less than one (1), of the Management System and of each plan and program referred to in Regulation 11(1)(b) of these Regulations, and to take corrective and preventive actions if a deficiency is identified; and
- Establish and implement a Process to conduct an annual management review of the Management System and each plan and program referred to in Regulation 11(1) (b) of these Regulations and to ensure continual improvement in meeting the obligations of the Authorized Person under the Law.
- The Authorized Person shall document the processes and procedures required by these Regulations.
- The Environmental Management Plan shall include:
- the policies, objectives and goals on which the plan is based, including decommissioning and the key performance indicators to measure the performance of the Authorized Person in achieving its goals and objectives;
- the processes to set goals for the improvement of environmental protection and pollution prevention and control;
- the procedures, practices, resources and monitoring necessary to manage environmental hazards to protect the environment from the proposed work or activity, including:
- a summary of how the plan integrates with the Management System;
- a summary of how the plan will be applied to the proposed work or activity and how the duties set out in law and these Regulations with regard to environmental protection and pollution prevention and control will be fulfilled;
- a summary of how the plan will be applied to contractors and subcontractors and communicated to them;
- a description of the organizational structure for the proposed work or activity and the command structure at the Facilities that clearly explains their relationship to each other,
- the procedures for the selection, evaluation and use of chemical substances including process chemicals and drilling fluid ingredients;
- a description of all discharge streams and limits for any discharge into the natural environment including any waste material;
- a description of the system to monitor compliance with the discharge limits identified in sub-regulation (1)(c)(vi) of this Regulation, including the sampling and analytical program to determine if those discharges are within the specified limits;
- a description of the system to handle and dispose of produced water through re-injection or treatment;
- a description of the system for venting and flaring of gas and a list of the authorizations and reports required;
- the arrangements to monitor compliance with the plan and to measure performance in relation to its objectives;
- a financial plan to implement each mitigation measure;
- a record of the public participation undertaken and its results; and
- An undertaking by the Authorized Person regarding execution of the Environmental Management Plan.
- In addition to the standards set out in Regulation 11(2) of these Regulations, the Authorized Person shall comply with the following table of IOGP general guidelines and the subsequent IOGP approved revisions.