The Legal Framework for Development of CCS
The Legal Framework for Development of CCS The Legal Framework for Development of CCS
The Legal Framework forDevelopment of CCSGordon McCreathPartner, Planning & EnvironmentIPA CCS Conference – 1 September 2011
- Page 2 and 3: The evolving legal framework..in a
- Page 4 and 5: International• London Convention
- Page 6 and 7: UK - capture• Readiness - s36 gui
- Page 8 and 9: UK - offshore transport• Petroleu
- Page 10 and 11: UK - other offshore regimes• All
- Page 12 and 13: Some issues...• Streamlining of c
- Page 14 and 15: Pinsent Masons - consenting majorpr
- Page 16 and 17: Some issues• Transfer of liabilit
- Page 18: Gordon McCreath0141 249 551207881 8
<strong>The</strong> <strong>Legal</strong> <strong>Framework</strong> <strong>for</strong><strong>Development</strong> <strong>of</strong> <strong>CCS</strong>Gordon McCreathPartner, Planning & EnvironmentIPA <strong>CCS</strong> Conference – 1 September 2011
<strong>The</strong> evolving legal framework..in a flash• A busy year!• An overview <strong>of</strong> Scotland and England,putting principal regimes together• Gaps in the framework? Issues stillrequiring work...• ...and thoughts on solutions, drawing onexperience consenting other majorinfrastructure projects
A busy year!• Storage Licensing Regs: in <strong>for</strong>ce 1 October 2010• Consultation on third party access: December 2010• EMR consultation: December 2010• Energy Act CO 2 Storage Scotland Regs: 1 April 2011• Storage Licensing Scotland Regs: 1 April 2011• EIA Scotland Regs: 1 June 2011• OSPAR Decision ratified: 23 June 2011• Env’l Liability Amendment Scotland Regs: 25 June 2011• EMR White Paper: 12 July 2011• EIA Regs: 24 August 2011• Environmental Permitting Amendment Regs: 1 Oct 11• PPC Scotland Amendment Regs: 4 October 2011• Commission Guidance Docs on implementation <strong>of</strong> <strong>CCS</strong>D• And there’s more...
International• London Convention 1972 on Prevention <strong>of</strong> Dumping <strong>of</strong>Waste at Sea and Protocol – Feb 2007– Injection: Amendment to annex there<strong>for</strong>e no need <strong>for</strong>ratification– Transboundary transport: body, so ratificationrequired. 27 out <strong>of</strong> 40 states required.• OSPAR <strong>for</strong> Protection <strong>of</strong> the Marine EnvironmentConvention decision – June 2007– Ratification by 7 states on 23 June – Denmark
Europe• <strong>CCS</strong> Directive: 25 June transposition• EU ETS Directive• PPC Directive• Waste <strong>Framework</strong> Directive• Marine Strategy Directive• Water <strong>Framework</strong> Directive
UK - capture• Readiness – s36 guidance, NPSs,Scottish policy• Capture:– Electricity Act s.36/PlanningAct 2008– PPC ScotlandRegs/Environmental Permitting– SMs/IPC– SEPA/EA
UK – onshore transport• Planning: 1997 and 1990 Acts– Local authority– For change <strong>of</strong> use from Gas Acts pipeline• Pipeline Act 1962/Planning Act 2008– >10 miles: onshore pipeline construction authorisation– SMs/IPC• PPC/EPRs: compressor site– SEPA/EA
UK – <strong>of</strong>fshore transport• Petroleum Act 1998– pipeline works authorisation required <strong>for</strong> constructionand/or use <strong>of</strong> pipeline in territorial sea and continentalshelf– DECC/SMs in STWs• Navigation dealt with under EA08, not marine licences• Marine planning and conservation• Crown Estate: pipeline lease• Transport: Storage <strong>of</strong> CO 2 (Access to Infrastructure)Regulations 2011: laid, to be considered on Monday
UK - exploration and storage• Energy Act 2008/EA08(Storage <strong>of</strong> CO 2 )(S) Regs 2011– Licence required <strong>for</strong> <strong>of</strong>fshore temporary and permanent storageand exploration <strong>for</strong> appropriate sites– UK Territorial waters and STWs: 0-12nm– Gas Importation and Storage Zone: 12-200nm– SMs <strong>for</strong> STWs only; DECC <strong>for</strong> the rest (Wales and NI)• Storage <strong>of</strong> CO 2 (Licensing etc.) Regs 2010• Storage <strong>of</strong> CO 2 (Licensing etc.) (Scotland) Regs 2011• Crown Estate: Agreement <strong>for</strong> Lease and Lease
UK – other <strong>of</strong>fshore regimes• All applied to <strong>of</strong>fshore <strong>CCS</strong> activitiesby Energy Act 2008 (ConsequentialModifications) (Offshore Env’l Prot’n)Order 2010 e.g.– Environmental permitting– EU ETS– EIA– Habitats– Discharges to sea and pollutionincidents– REACH
UK – decommissioning and transfer• Decommissioning: Energy Act 2008– Petroleum Act decommissioning provisions apply to CO 2storage installations• Transfer <strong>of</strong> responsibility: <strong>CCS</strong> Directive– Financial security covers til transfer <strong>of</strong> responsibility– Monitored on annual basis– Transfer with financial contribution– Storage <strong>of</strong> CO 2 (Termination <strong>of</strong> Licences) Regulations2011 transpose
Some issues...• Streamlining <strong>of</strong> consents and regulators:– No time to streamline in short to medium if UK and EUcompetition timescales are to be met– Some multiples are inevitable with a pipeline project...– Fit <strong>for</strong> purpose? Detailed testing required– Is a verbal commitment by regulators to co-operateenough? One stop shop and guidance required cf IPC?– We will soon find out
Some issues...• Monitoring board:– Quarterly meetings– Agreed consenting timeline– Monitoring <strong>for</strong> and remedying slippage: en<strong>for</strong>cement?• Considering single ES– Do you have the choice?• Considering effective community engagement• Lessons to be learnt from other jurisdictions
Pinsent Masons - consenting majorprojects• Olympics Delivery Authority – London 2012 Olympics– >50 applications• Earls Court• Local authorities – Hinkley Point C New Nuclear build– Early works, port, accommodation, road upgrades,complex section 106 package, DCO• Nu-Generation: Sellafield New Nuclear Build• Offshore wind– 10 projects, inc Walney Extension 750MW• <strong>The</strong>rmal generation project under IPC• Plus other confidential projects
Some issues• Is CO 2 waste?• Oil and gas interaction• Financial security and financial contribution– not a good experience thus far– annual monitoring – a good thing– types <strong>of</strong> instrument– width <strong>of</strong> scope– how to quantify both?
Some issues• Transfer <strong>of</strong> liability– Criteria– All heads <strong>of</strong> liability?– Only if no fault• Includes negligence, deceit or a failure to exercisedue diligence• But not expressly ‘cases <strong>of</strong> deficient data’ from<strong>CCS</strong>D
Conclusions• <strong>The</strong> framework is there• Now the gaps need to be filled and the framework testedin detail – learning by doing• For Scotland, that requires involving the right people andlooking to right places <strong>for</strong> best practice on consentingmajor projects, including close to home
Gordon McCreath0141 249 551207881 855 163LONDON DUBAI BEIJING SHANGHAI HONG KONG SINGAPOREOTHER UK LOCATIONS: BIRMINGHAM BRISTOL EDINBURGH GLASGOW LEEDS MANCHESTERPinsent Masons LLP is a limited liability partnership registered in England & Wales (registered number: OC333653) and regulated by the Solicitors Regulation Authority. <strong>The</strong> word 'partner', used inrelation to the LLP, refers to a member <strong>of</strong> the LLP or an employee or consultant <strong>of</strong> the LLP or any affiliated firm who is a lawyer with equivalent standing and qualifications. A list <strong>of</strong> members <strong>of</strong> theLLP, and <strong>of</strong> those non-members who are designated as partners, is displayed at the LLP's registered <strong>of</strong>fice: 30 Crown Place, London, EC2A 4ES, United Kingdom.We use ‘Pinsent Masons’ to refer to Pinsent Masons LLP and affiliated entities that practise under the name ‘Pinsent Masons’ or a name that incorporates those words. Reference to ‘PinsentMasons’ is to Pinsent Masons LLP and/or one or more <strong>of</strong> those affiliated entities as the context requires. For important regulatory in<strong>for</strong>mation please visit: www.pinsentmasons.com.© Pinsent Masons LLP 2011www.pinsentmasons.com