Proposed replacement of Offshore Installations (Safety Case) Regulations 1992

The Health and Safety Executive (HSE) is proposing to replace the Offshore Installations (Safety Case) Regulations 1992. Their stated aim is to relieve unnecessary burdens on duty holders. The HSE have issued a consultation document to stakeholders in the offshore industry, inviting comments by 10 September 2004.

Duty holder status may revert to licensee

Currently, the licensees of a production installation must appoint an operator, who organises and supervises operations and is responsible for submitting and holding the safety case. However, the HSC is concerned that some operators (or, with mobile units, "owners") lack resources to fulfil the duties imposed by current safety case regulations and other legislation (e.g. Prevention of Fire and Explosion and Emergency Response Regulations). The proposed legislation provides that where, in the opinion of the HSE, the operator is unable to discharge the management and control functions the duty to submit the safety case (and other related duties) reverts to the licensee.

Number of safety cases reduced

The proposed regulations reduce the number of safety cases to be submitted by the duty holder. Currently, a new safety case must be submitted every three years and also in advance of cessation of production, dismantling or combined operations. Also, at present the HSE has sole discretion to approve safety cases. Under the proposed new arrangements:

• An installation will have one safety case which, once approved, will be valid throughout the installation's life
• The duty holder will have to conduct a thorough review every five years and if a significant change is required, get this approved by the HSE
• Safety cases and revisions may be submitted to the HSE electronically
• If the HSE rejects a safety case or a revision, the duty holder may appeal to the Secretary of State
• If a revision is rejected, the existing safety case will remain in force in its unrevised form
• The HSE will have the power to direct a duty holder to carry out a review with no apparent restriction on when, why or how frequently such a direction might come
• For cessation of production, dismantling and combined operations, the installation's existing safety case will be revised, with the HSE being given at least 3 weeks notification of the change

Guidance notes will be issued on how reviews should be conducted but these are not yet available and are not included in the consultation process. Once available, however, whilst not legally enforceable, failure to follow the Guidance may require the duty holder to demonstrate that he has complied with the regulations by some other equally acceptable means. There is also a suggestion that the review should be done by someone independent of those who normally maintain the safety case.

ALARP standard to be revised

The consultation proposes that rather than the current requirement to show that risk is "as low as reasonably possible" ("ALARP"), safety cases would have to demonstrate that risks have been identified and that "relevant statutory provisions" would be complied with. This may effectively amount to the same thing.

Timing

If the new regulations come into force as planned in late 2004, existing safety cases would still be valid and a transitional period will follow.

Comment

Some changes are likely to be well-received, for example, the option to submit safety cases and revisions electronically and the proposal that rejection of a revision proposed by the duty holder would not affect the validity of the existing safety case. A significant addition is the right to appeal to the Secretary of State if a safety case or any subsequent amendments of it are rejected - welcome recognition of the right to a fair hearing.

However, the combined operations safety case will be seen as a loss by some as they believe it to fulfil a particularly useful function in co-ordinating the activities of two entities unaccustomed to working together.

For a copy of the consultation paper, click here.

For further information on its implications or on any aspect of health and safety law affecting the oil and gas industry, please contact Jan Burgess at [email protected] or Alex Green at [email protected] both in our Aberdeen office.