HSE REGULATIONS FOR OIL & GAS INDUSTRIES

Prof. V. P. Sharma
Department of Petroleum Eingineering

 Regulations vary significantly from country to country, state to state and

locality to locality.
 In most areas, there are multiple, overlapping regulatory agencies that govern
various aspects of oil and gas exploration and production.
 Many regulations (environmental) impose both civil and criminal penalties
with fines, jail terms for violation.
 U. S. has already held that supervisors and managers know what their
employees are doing and this can be held liable for their employee’s actions.
 Most environmental laws especially in USA are based on concept of Strict
Liability. Strict liability means that neither negligence nor wrongful intent are
necessary for liability to be imposed. The company or person that violated the
law will be held responsible, no matter what mitigating circumstances may be
present including sabotage and natural disaster.

Environment Statement:

Those industries which require consent under the Water Act, Air Act, or
both or authorization under the Hazardous Waste (Management & Handling)
Rules 1989 are required to submit annually an Environment Audit and
Environmental Statement report to SPCB before 31st May and 30th Sept.

Environmental Statement: This statement provides information on the water and

raw materials consumption, pollution generated, information on hazardous and
solid wastes along with their disposal practices.

 It also evaluates the company policy towards conservation of water and energy
and its reuse & recycling of wastes.

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Main contents of Environmental Statement:

 Site plant and process flow diagram

 Material balance, inputs and outputs
 Hazardous wastes
 Solid waste
 Records of water use, recycle/re-use
 Monitoring of air, water and hazardous wastes
 Waste reduction measures
 Long term plan for waste reduction, energy and water conservation.

REGULATORY ACTS AND HSE POLICES

Acts and Regulations which govern the Environmental Policies:

1. Water Act
2. Air Act
3. Environment Act
4. Oil Mines Regulations
5. Minimal National Standards (MINAS)
6. Ambient Air Quality standards.
7. Hazardous Wastes (Management & Handling) Rules – 1989
8. The Public Liability Insurance Act 1991
9. Petroleum and Natural Gas Rules 2008 (safety in Offshore Operations)
10.The Explosive Act 1884 and Explosive Rules 2008.

Enforcements and Implementation of these acts and Regulations is carried out by

the following government agencies:

A) Ministry of Environment and Forests

B) Central Pollution Control Board
C) State Pollution Control Board
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 D) Director General of Mines safety
E) Oil Industry Safety Directorate (OISD)
F) Petroleum and Explosive Safety Organisation (PESO
G) Factories Inspectorate

These agencies work independently as well as jointly to achieve the object of

keeping environment clean, healthy, pollution free and safe working conditions.

1. The Water Act

The water Act was the first legislative act in India titled as The Water
(Prevention and Control of Pollution) Act 1974, Act No.6 of 1974 came into force
on 23rd March 1974.

 It is divided into eight main chapters containing 64 sections.

 The main objective of water act is to prevent and control the extent and
degree of water pollution and to maintain and restore existing water sources
(surface and ground water)
 The Water Act defines water pollution as the alteration of the physical,
chemical or biological properties of water or the discharge of any liquid,
solid and/or gas that is likely to create a nuisance or render the water
harmful for domestic, industrial or agricultural use.

2. The Air Act

 Air (Prevention and Control of Pollution Act 1981) (No. 14 of 1981) came
into force from 29th march, 1981.
 This act is meant to regulate and control emissions from industrial sources
through air quality regulations and the establishment of air pollution control
zones.
 Air pollution control zones are areas required to limit emissions and new
emission sources must be approved by SPCB
 The Air Act defines are pollution as the presence of any solid, liquid or
gaseous substances present in the atmosphere in such concentrations as may
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 be or tend to be injurious to human beings or other living creatures, or
plants, or properties, or environment.
 The Air Act consists of seven chapters containing 54 sections.

3. The Environment Act

 This act is known as the Environment (Protection) Act, 1986 No. 29 of 1986
came into force on 23rd May, 1986.
 This act was passed following the Bhopal incident where the release of a
toxic gas isocyanides resulted in a great tragedy.
 The Environment Act provides for establishment of standards and rules
pertaining to the handling, storage, disposal, release and transportation of a
variety of environmental pollutants.
 Environmental pollutants as defined by the Act are any solid, liquid or
gaseous substances in concentrations that are or may be injurious to the
environment.
 This Act consists of four chapters containing twenty six sections.

4. Oil Mines Regulation 1984

 This regulation known as (OMR-84) regulates the safety and health in
drilling, production and pipeline installations in oil mines.
 The (OMR-84) came into force on 26th October, 1984.
 The (OMR-84) consist of ten chapters containing 106 regulations.
 These regulations mainly regulate the working conditions and environment
in mines to provide good working life for workers

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5. Minimal National Standards (MINAS)
 These standards are prescribed by Central Board for the prevention and
control of water pollution, New Delhi vide its reference number
OCINDS/4/1981-82.
 The considerations that went into the development of these standards was
that refineries having once through cooling system should not dispose of
pollutants under the deceptive dilution offered by the cooling water.
 As there being no other standard for petroleum effluents in India, ONGC is
following these as per State Pollution Control Board directive for its onland
production processing plants, CTF and drilling operations.

6. Ambient Air Quality Standards

Ambient Air Quality Standards for different categories of areas in the country have
been notified by Central Pollution Control Board.

Sl. Area Category Concentration in micrograms/M3

No.
Suspended SO2 CO NOX
SPM

1. Industrial and mixed 500 120 5000 120

use

2. Residential and 200 80 2000 80

Rural area

3. Hospital, 100 10 1000 30

Educational
Institution (Sensitive
areas)

7. Hazardous Waste (Management & Handling) Rules – 1989

 Under MOEF notification 28th July 1989
 18 categories of hazardous waste are identified so far and are required to
obtain authorization for handling such wastes from concerned SPCB.
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  Categories mentioned in schedule at Sl. No. 10, 12 and 17 are applicable to
hydrocarbon exploration and exploitation industries.
 The industry generating waste and intending to collect, treat, transport, store
and dispose of such waste is required to make an application in Form – I to
SPCB.
 The SPCB issues the authorization along with stipulations for statement and
disposal of such wastes.

Sl. No. 10:

Waste oil & oil emulsion: Regulatory quantities; 1MT/Years,

calculated as oil and oil emulsion.

Sl. No.12:

Sludges arising from treatment Regulatory quantity irrespective of

of waste water containing any quanlity
heavy metals, Toxic organic,
oil etc. :

Sl. No.17:

Off specification and Regulatory quantity irrespective of any

discarded products : quantity.

8. The Public liability Insurance Act 1991:

 The handling hazardous wastes (or substances) every owner of such
industry must take out PLI and get it renewed within the period of its
validity.
 Under this act, it is owner’s liability to provide immediate relief in respect
of death or injury to any person or damage to any property resulting from an
accident while handling.

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 To meet this liability the owner has to take an insurance policy of an amount
equal to its paid up capital or upto Rs.500 million whichever is less.
 Any claim in excess to this liability will be paid from the Environment
Relief Fund (ERF). An owner contribute to ERF, a sum equal to the
premium payable to the insure.
 In case the award still exceeds the remaining amount shall have to met by
the owner
 The payment under the act is only for immediate relief, owner has to
provide the final compensation if any arising out of legal proceeding
 The claim application shall be made to collection in form I accompanied by
relief