Before this, petroleum activities could be assessed under two pieces of legislation: the Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act) and the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act).
This resulted in unnecessary duplication and an elongated environmental approval process for petroleum activities in Commonwealth waters.
National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) Chief Executive Officer Jane Cutler has welcomed the new process.
“The streamlined changes are part of broader changes to the Environment Regulations aimed at making regulatory processes more efficient and transparent, and the responsibilities of titleholders clearer,” said Ms Cutler.
“The endorsement of NOPSEMA’s authorisation processes demonstrates the capacity within the authority to regulate with consistency, rigour, independence and expertise across safety, well integrity and environmental management.”
Under the new arrangements, NOPSEMA has taken over assessment of petroleum activities that previously fell under Part 3 of the EPBC Act, which includes impacts on matters of national environmental significance, including:
- World Heritage properties;
- National Heritage places;
- Wetlands of international importance;
- Listed threatened species and ecological communities;
- Listed migratory species; and,
- Commonwealth marine area.
Subsequently, petroleum activities such as seismic, drilling and production, which are accepted under NOPESMA’s processes, are no longer required to be assessed or approved by the EPBC Act.
Government endorses streamlined approach
According to the Minister for Industry, the Hon. Ian Macfarlane MP, the streamlining of petroleum and greenhouse gas activities under the NOPSEMA banner is set to lead to savings of an estimated $120 million per year for industry and environmental groups.
The Minister has praised the changes, saying it removes unnecessary duplication between the two sets of laws, which had done little to encourage investment by adding layers of red-tape for businesses.
“NOPSEMA will now be the single point of contact for titleholders seeking regulatory approval, which means faster approvals and no duplication,” said Mr Macfarlane.
“NOPSEMA’s objective-based approach provides flexibility, promotes innovation and best practice environmental management and will lead to improved environmental outcomes for the future.”
The Minister for the Environment Greg Hunt said the decision to streamline the process was made after a formal and thorough strategic assessment under the EPBC Act, where nationwide public consultation was held with key stakeholders.
“The one-stop-shop will maintain strong environmental safeguards and high environmental standards through a more streamlined process,” said Mr Hunt.
“The NOPSEMA process that I have endorsed will include strict safeguards for the prevention of offshore activities within the boundaries of all World Heritage areas, including the Great Barrier Reef.”
Reporting requirements
Reporting requirements under the new system have been designed so that titleholders follow the correct procedures in the case of an incident.
If a reportable incident were to occur, NOPSEMA requires that a written report be submitted to them no later than three days after the first occurrence of the incident.
In conjunction with this, a written report must also be submitted to the National Offshore Petroleum Titles Administrator along with the appropriate State Department and responsible State or Territory Minister.
A written report is also required to include information specified in the Environment Regulations.
NOPSEMA has also made their own processes easier and more transparent for titleholders to use with a number of updates and improvements including:
- New and updated guidance on website;
- Internal systems and regulatory tools updated;
- Administrative arrangements with Department of the Environment to ensure program commitments are met;
- Information sessions (Canberra, Melbourne, Adelaide, Perth) – March 2014;
- One-on-one titleholder meetings on their specific activities;
- Quarterly reporting to Minister for the Environment; and
- Review of program after 12 months.
For more information visit www.nopsema.gov.au.
