National Offshore Petroleum Safety and Environmental Management Authority
The National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) commenced operations on 1 January 2012 and has regulatory responsibility for occupational health and safety, structural integrity, environmental management, and day-to-day operations of offshore petroleum facilities in Commonwealth waters, and in coastal waters where State and Northern Territory powers have been conferred.
NOPSEMA is accountable to the Commonwealth Minister for Resources and Energy. NOPSEMA provides nationally consistent safety and environmental regulation across the offshore petroleum industry to deliver world-best practice safety and environmental regulation for Australia. Offshore petroleum safety‑related guidelines can be accessed on NOPSEMA's Guidelines webpage.
The reports of the Montara Commission of Inquiry and the Productivity Commission’s Review of Regulatory Burden on the Upstream Petroleum (Oil and Gas) Sector recommended the establishment of a single national regulator for offshore petroleum, minerals and greenhouse gas storage activities in Commonwealth waters.
As part of the Commonwealth Government’s legislative reform to offshore petroleum legislation and regulation, the Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 and associated Acts were passed by the Parliament on 15 September 2011, and received Royal Assent on 14 October 2011.
The Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 amended the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGSA) to, among other things, expand the functions of the former National Offshore Petroleum Safety Authority (NOPSA) to become NOPSEMA.
On 13 September 2002, the then Ministerial Council on Mineral and Petroleum Resources endorsed the establishment of NOPSA to regulate occupational health and safety in Commonwealth waters, and State/Northern Territory coastal and inland waters.
2011 NOPSA Operational Review Report
In accordance with Section 695 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006, (OPGGSA), a panel of experts with backgrounds drawn from across industry, government and corporate sectors undertook a review the operations of the National Offshore Petroleum Safety Authority (NOPSA).
The review commenced on 15 July 2011, and examined NOPSA’s activities and legislated functions including engagement with stakeholders, particularly in relation to safety case development and early engagement with operators. The Report was tabled in Parliament on 8 December 2011.
NOPSA Operational Reviews have been undertaken every three years. This is the second Review Report. Following the proclamation of the Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 on 7 December 2011, NOPSA has transitioned to NOPSEMA, with additional responsibilities for environmental management, from 1 January 2012.
The first review of NOPSEMA will relate to the three-year period beginning 1 January 2012. Subsequent reports will relate to successive five-year periods.
Further details on the Review Report, including the Terms of Reference, submissions and information on the Review Panel can be accessed at http://www.nopsareview.gov.au
The Government responded to the 2011 NOPSA Operational Review in May 2012, following consultation with NOPSEMA, and those organisations that provided submissions to the Review Panel. The Minister for Resources and Energy, the Hon Martin Ferguson AM MP, released the final Government Response to the 2011 NOPSA Operational Review on 25 May 2012.
In its response, the Government has considered and accepted all of the Review Panel’s Recommendations. Implementation of many of the recommendations will be the responsibility of NOPSEMA, with a number to be jointly implemented by the Department of Resources, Energy and Tourism and NOPSEMA. A comprehensive implementation plan accompanies the final response, and outlines the timeframe for implementing the accepted recommendations to the Review.
2008 Operational review of NOPSA
The operations of NOPSA were reviewed by an independent panel of experts in February-March 2008 under Section 150Z of the Petroleum (Submerged Lands) Act 1967 (PSLA). The review examined progress in bringing about improvements in the occupational health and safety of the offshore oil and gas industry since NOPSA commenced operations on 1 January 2005.
The following documents are relevant to the 2008 Operational Review:
The Government responded to the 2008 Review of NOPSA operations as part of the response to the Offshore Petroleum Safety Regulation Inquiry:
Cost Recovery Impact Statements
Cost Recovery Impact Statements have been undertaken to assess cost recovery arrangements relating to NOPSA. NOPSA cost recovery arrangements were established in 2004 and reviewed in 2006.
The Offshore Petroleum and Greenhouse Gas Storage Amendment (National Regulator) Act 2011 provided for the establishment of both the NOPSEMA and the National Offshore Petroleum Titles Administrator (NOPTA) from 1 January 2012. Both agencies are required to undertake their operations on a full cost recovery basis.
The Offshore Petroleum and Greenhouse Gas Storage (Regulatory Levies) Act 2003 was amended by the Offshore Petroleum and Greenhouse Gas Storage Amendment Regulations 2011 to allow both NOPTA and NOPSEMA to charge title administration and environment plan levies (in addition to existing safety and well integrity levies) respectively.
Stakeholder engagement was undertaken during the development of both the NOPTA Titles Administration Levy and the NOPSEMA Environment Plan Levy CRIS’s.
The NOPSEMA CRIS for Well Integrity Levies and Environment Plan Levies were finalised in April 2011 and November 2011 respectively, and both are located on NOPSEMA’s website.