National Offshore Petroleum Safety and Environmental Management Authority
 | |
| Statutory Agency overview | |
|---|---|
| Formed | 1 January 2012 |
| Superseding Statutory Agency | |
| Jurisdiction | Commonwealth of Australia |
| Headquarters | Perth, Western Australia |
| Employees | 126 (at 30 June 2018)[1] |
| Minister responsible | |
| Statutory Agency executives |
|
| Website | www |
| Map | |
 Map of NOPSEMA jurisdiction in Australian Commonwealth Waters | |
The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) is a statutory body of the Australian Government established in January 2005 as National Offshore Petroleum Safety Authority (NOPSA) but later reestablished in January 2012 as NOPSEMA to include offshore environmental management responsibilities.[5] NOPSEMA was established under Part 6.9 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act)[6] and is Australia’s expert independent regulator for health and safety, well integrity and environmental management for offshore petroleum and greenhouse gas storage activities in Australian waters.[7] NOPSEMA is also responsible for monitoring compliance with the provisions of the OPGGS Act generally, such as the various requirements imposed in respect of petroleum operations, including in relation to work practices.[8]
History
In 1999, the Australian Government commissioned a review into the adequacy of offshore safety regulation in Australia. The review sought to examine the day-today regulation of offshore safety which, at the time, was carried out by the states and the Northern Territory using a combination of prescriptive and goal-setting legislative rules. A key recommendation of the review was that the existing regulatory and legislative framework be revised to establish a single regulator for offshore safety. The recommendation was accepted by all state and Northern Territory governments and, in 2005, the National Offshore Petroleum Safety Authority was established as the sole regulator for offshore health and safety in Commonwealth waters. Victoria also conferred on NOPSA its powers and functions for the regulation of offshore safety in Victorian waters.
While much had been achieved to improve offshore safety in Australia, in the years that followed NOPSA’s establishment a number of major offshore accidents became the unfortunate catalyst for further change. In 2008, a high pressure 12 inch export sales gas pipeline ruptured and exploded on the beach of Varanus Island off the coast of Western Australia. Another parallel pipeline then ruptured directing fires towards the onshore processing plant and causing several associated lines to rupture and ignite. In 2009, a failure of the Montara H1 well integrity barriers in the Timor Sea, north of Australia, led to an oil spill and gas leak that lasted 74 days. A fire eventually destroyed the wellhead platform and the West Atlas jack-up drill rig. In 2010, the Deepwater Horizon drilling rig suffered a loss of well control and major blowout in the Gulf of Mexico, United States. The accident killed 11 workers and led to the worst oil spill in US history lasting 87 days.
In 2010, the Australian Government commissioned an inquiry into the Montara blowout. The review made a strong recommendation for the existing framework to be revised again so that a single independent regulatory body be established to regulate offshore safety, well integrity, and environmental management. The recommendation was accepted by the Australian Government and, in 2011, NOPSA’s remit was expanded to include the regulation of well integrity. On 1 January 2012, that remit further expanded to include the regulation of environmental management. To reflect its new responsibilities, NOPSA became known as NOPSEMA under section 645 of the OPGGS Act. In February 2014, following a detailed and comprehensive assessment, the Minister for the Environment endorsed NOPSEMA’s environmental management authorisation process. The minister’s endorsement confirmed NOPSEMA as the sole environment regulator in Commonwealth waters by expanding NOPSEMA’s remit to include matters protected under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).
NOPSEMA’s effectiveness to bring about improvements in offshore health and safety, well integrity and environmental management is independently reviewed every five years. The first review was undertaken in 2015 and found NOPSEMA to be demonstrating the characteristics of an effective regulator. The next review is scheduled for 2020.
Principal functions
NOPSEMA’s principal functions are detailed under section 646 of the OPGGS Act, and are as follows:
- to promote the OHS of persons engaged in offshore petroleum operations or offshore greenhouse gas storage operations
- to develop and implement effective monitoring and enforcement strategies to ensure compliance under the OPGGS Act and regulations
- to investigate accidents, dangerous occurrences and circumstances relating to OHS, well integrity and environmental management
- to advise on matters relating to OHS, well integrity and environmental management
- to make reports, including recommendations, to the responsible Commonwealth minister and each responsible state and Northern Territory minister
- to cooperate with other Commonwealth, state and Northern Territory agencies or authorities having functions relating to regulated operations.
Jurisdiction
NOPSEMA regulates all offshore areas in Commonwealth waters, comprising the first three nautical miles beyond the territorial sea baseline, and in coastal waters where regulatory powers and functions have been conferred in accordance with the OPGGS Act and associated regulations which provides the legal framework for the exploration and recovery of petroleum and for injection and storage of the greenhouse gas substances in Australian offshore areas.[7] As of 30 June 2018, Victoria continued to be the only jurisdiction to have conferred powers and functions on NOPSEMA for the regulation of health and safety and well integrity in Victorian waters. Discussions regarding the conferral of powers and functions continue with other jurisdictions. The Joint Petroleum Development Area in the Timor Sea is regulated by the National Petroleum Authority (Autoridade Nacional do Petróleo) of Timor-Leste on behalf of the Australian Government and the Government of Timor-Leste.
Ministerial Independence
The Australian Government created NOPSEMA as an independent regulator to ensure that decisions to accept or refuse risk management plans for safety, well integrity and environment focus exclusively on the technical and scientific merits of the proposal. These decisions are made independently of economic, commercial and political factors and the workings of government. Therefore, neither the Resources Minister nor the Environment Minister has direct involvement in NOPSEMA’s regulatory decision making process for offshore petroleum activities. As the independent regulator, NOPSEMA is not involved in government policy decisions on whether fossil fuels should be exploited, or where exploration and production should take place.
As a government entity NOPSEMA must fulfil its obligations under the Public Governance Performance and Accountability Act 2013 (Cth) (PGPAA). This includes regular reporting to the responsible Minister and the Finance Minister. This arrangement is designed to ensure oversight of the governance arrangements are visible to the Commonwealth. NOPSEMA regularly reports information and relevant documents to the ministers, including information on current activities and proposed changes to the organisation.
NOPSEMA has an independent Advisory Board that provides advice and makes recommendations to the Commonwealth Minister, State and Northern Territory Ministers and the COAG Energy Council on the performance by NOPSEMA of its functions and policy and strategic matters. The NOPSEMA Board also gives advice and recommendations to the Chief Executive Officer (CEO) of NOPSEMA about policies and strategies implemented by NOPSEMA in the performance of its functions.
NOPSEMA’s environmental management authorisation process has been endorsed by the Federal Minister for the Environment as a program that meets the requirements of the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act). NOPSEMA reports on its environmental management performance in accordance with administrative arrangements under the endorsed EPBC Act Program and is subject to reviews of its performance.
Structure
NOPSEMA comprises a Safety and Integrity division, Environment division, a Regulatory Support division and Legal team; each reporting to the Chief Executive Officer (CEO). This structure provides NOPSEMA with clear lines of responsibility that support sound corporate governance, stakeholder engagement and compliance efforts.
The Safety and Integrity division regulate the management of health and safety risks to people at or near offshore petroleum facilities. The Environment division regulate the management of risks and impacts to the environment arising from offshore petroleum and greenhouse gas storage activities. The Regulatory Support division provide regulatory and corporate support services. The Legal team provide advice on matters affecting NOPSEMA’s business operations and ensure all statutory and legal obligations are met.
References
- ^ "Annual Report 2017–18" (PDF). National Offshore Petroleum Safety and Environmental Management Authority. Retrieved 25 October 2018.
- ^ Anderson, Stephanie (20 July 2016). "Election 2016: Malcolm Turnbull unveils ministry with Christopher Pyne, Greg Hunt on the move". ABC News. Retrieved 22 July 2016.
- ^ "Annual Report 2017–18" (PDF). National Offshore Petroleum Safety and Environmental Management Authority. Retrieved 25 October 2018.
- ^ "Annual Report 2017–18" (PDF). National Offshore Petroleum Safety and Environmental Management Authority. Retrieved 25 October 2018.
- ^ "About us » NOPSEMA". www.nopsema.gov.au. Retrieved 28 October 2016.
- ^ "Offshore Petroleum and Greenhouse Gas Storage Act 2006". Federal Register of Legislation. 6 May 2016. Retrieved 2 November 2016.
- ^ a b "Introducing NOPSEMA" (PDF). National Offshore Petroleum Safety and Environmental Management Authority. 11 April 2016. Retrieved 26 October 2016.
- ^ "Operating Protocols for Offshore Petroleum Joint Authorities and Supporting Institutions" (PDF). Australian Government Department of Industry and Science. July 2015.
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