Circular No. 22/2015/TT-BTNMT on environmental protection in the use of drilling fluids; management of waste and environmental monitoring for offshore oil and gas activities.

CIRCULAR

Rules on environmental protection in the use of drilling fluids; waste management and environmental monitoring for oil and gas activities at sea.

and environmental monitoring for oil and gas activities at sea.For power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.

_________________________

Pursuant to the Law on Environmental Protection 2014;

Pursuant to the Oil and Gas Law 1993; the Law Amending and Supplementing Certain Provisions of the Oil and Gas Law 2000; the Law Amending and Supplementing Certain Provisions of the Oil and Gas Law 2008;

Pursuant to Decree No. 21/2013/NĐ-CP dated March 4, 2013, promulgated by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Natural Resources and Environment;

Considering the proposal of the General Department of Environment and the Legal Affairs Department;

The Minister of Natural Resources and Environment issues this Circular prescribing rules on environmental protection in the use of drilling fluids; waste management and environmental monitoring for oil and gas activities at sea.

Article 1. Scope of Regulation and Applicability

Article 1. This Circular prescribes rules on environmental protection in the use of drilling fluids; waste management and environmental monitoring for oil and gas activities at sea.

Article 2. This Circular applies to agencies managing the environment, organizations, and individuals involved in oil and gas activities within the territory, exclusive economic zone, and continental shelf of the Socialist Republic of Vietnam.

Article 2. Interpretation of Terms

In this Circular, the following terms shall be understood as follows:

Article 3. Oil and gas activities at sea include exploration, development, production of oil and gas; transportation, storage, processing of oil and gas, and other technical services directly related to these activities carried out at sea.

Article 4. Oil and gas organizations are individuals and organizations permitted to conduct oil and gas activities at sea according to the law.

Article 5. Oil and gas facilities are types of platforms, mobile or fixed structures, vessels, and other constructions used to serve oil and gas activities at sea.

Article 6. Drilling fluid is a circulating solution used during drilling and production operations to bring drill cuttings up from the wellbore, balance pressure in the wellbore, cool and lubricate the drill bit, transmit hydraulic power to the drill bit, seal off permeable zones, and maintain the wellbore integrity.

Article 7. Water-based drilling fluids (WBDF) are drilling fluids that continuously use water as the base fluid and some additives.

Article 8. Non-aqueous drilling fluids (NADF) are drilling fluids that continuously use synthetic-based fluids as the base fluid and some additives.

Article 9. Food waste is leftover food generated from daily living activities on drilling platforms, production platforms, and ships.

Article 10. Sensitive environmental areas include nature reserves, national parks, historical and cultural sites, world heritage sites, biosphere reserves, and scenic spots classified accordingly.

Article 11. MARPOL or MARPOL 73/78 is the abbreviated name for the International Convention for the Prevention of Pollution from Ships.

Article 12. Use of non-aqueous drilling fluids

Clause 1. Non-aqueous drilling fluids shall be used when drilling sections of the wellbore encounter technical difficulties that water-based drilling fluids cannot handle, including one of the following cases:

Point a. Drilling complex geological formations where significant risks such as collapse, stuck drill pipe, loss of drilling fluid, and blowout are expected.

Point b. Handling emergencies during drilling.

Point c. Circulating.

Clause 2. The Environmental Administration shall consider and approve the use of non-aqueous drilling fluids for specific cases.

Clause 3. Prior to using non-aqueous drilling fluids, oil and gas organizations shall submit a request for the use of non-aqueous drilling fluids to the Office of Administrative Procedures of the Ministry of Natural Resources and Environment, which includes:

Point a. A document requesting the use of non-aqueous drilling fluids, clearly stating the reasons for the necessity of using non-aqueous drilling fluids, usage plans, disposal plans, and monitoring measures according to the model in Appendix 1 of this Circular.

Point b. In case non-aqueous drilling fluids are used for the first time in Vietnam: the application must include the original analysis results of non-aqueous drilling fluids according to the national technical regulations on drilling fluids and drill cuttings discharged from offshore oil and gas facilities. Experiments must be conducted under Vietnamese environmental conditions by laboratories certified by the Ministry of Natural Resources and Environment to operate environmental monitoring services or laboratories recognized for quality.

Point c. Other relevant documents concerning non-aqueous drilling fluids (if any).

Point d. Within three working days from the date of receiving the application, the Environmental Administration has the responsibility to notify the organization or individual to supplement and complete the application if it is incomplete or not in compliance with the regulations.

Point đ. Within ten working days from the date of receiving a complete and valid application, the Environmental Administration shall seek the opinion of the Vietnam Marine and Island Administration on the application for the use of non-aqueous drilling fluids; review the application and the opinion of the Vietnam Marine and Island Administration, and issue a written response to the oil and gas organization regarding the use of non-aqueous drilling fluids. The content of the response clearly states approval or disapproval.

Clause 4. The Environmental Administration shall establish, publish, and update a list of approved non-aqueous drilling fluids on its electronic information portal.

Clause 5. Oil and gas organizations using non-aqueous drilling fluids must comply strictly with the approved plan, submit reports on the use of non-aqueous drilling fluids to the Environmental Administration within thirty days after the end of the usage period.

Article 4. Management of Waste

1. Produced water from offshore oil and gas facilities shall be treated and discharged in compliance with the National Technical Regulations on produced water from offshore oil and gas facilities.

2. Other sources of wastewater generated from offshore oil and gas facilities shall be collected, treated, and discharged in accordance with the provisions set out in Table 1 of this Circular.

Table 1

Requirements for Collection, Treatment, and Discharge of Wastewater Generated from Offshore Oil and Gas Facilities

3. Classification, collection, storage, and management of non-hazardous waste on offshore oil and gas facilities:

a) Household solid waste and general industrial solid waste shall be collected and classified into three groups including food waste, recyclable waste, and other general waste;

b) Food waste may be discharged into the sea after being ground to a size smaller than 25 mm;

c) Wood, paper, cardboard waste may be burned and the ash may be discharged into the sea;

d) Recyclable waste and other general waste must be collected and transported to shore.

4. Classification, collection, and storage of hazardous waste on offshore oil and gas facilities:

a) Hazardous waste must be classified according to its hazardous characteristics;

b) Hazardous wastes with similar hazardous characteristics, similar treatment methods, and which do not react with each other may be stored together in a sealed container;

c) Containers holding hazardous waste must have clear labels indicating the type of waste collected.

5. Transporting waste to land:

a) Classified and separately stored non-hazardous and hazardous waste in skips shall be transported individually or placed together in containers to be transported to land by service vessels;

b) Transportation of waste by service vessels must comply with current regulations on the management of hazardous waste.

Article 5. Environmental Monitoring

1. Petroleum organizations using only water-based drilling fluids in offshore oil and gas exploration activities need not conduct environmental monitoring before and after the completion of such activities.

2. For offshore oil and gas exploration activities using non-water-based drilling fluids in areas within three nautical miles from shore and environmentally sensitive areas, environmental baseline monitoring must be conducted once prior to the commencement of the drilling program and once within one year following the completion of the exploration activity.

3. Environmental monitoring during development drilling:

Petroleum organizations conducting development drilling must implement environmental monitoring as follows:

a) Environmental monitoring of facilities or clusters of facilities: conduct baseline environmental monitoring once before commencing development and production activities; conduct environmental monitoring once within one year from the first commercial oil or gas flow from the field. Implement periodic monitoring programs every three years starting from the date of the first environmental monitoring program after development drilling;

b) Environmental monitoring of main oil or gas pipelines: conduct baseline environmental monitoring once before installation; no periodic monitoring required except in cases of leakage, fire, or explosion.

4. The location, position, time, frequency, and parameters of monitoring shall be carried out in accordance with the provisions set out in Appendix 2 of this Circular.

5. Within one hundred twenty (120) days from the end of the monitoring period, petroleum organizations shall submit one printed copy of the monitoring report and one CD containing the results of the monitoring to the Ministry of Natural Resources and Environment and the Department of Natural Resources and Environment where the petroleum activities take place.

Article 6. Implementation organization and enforcement provisions

1. This Circular takes effect from July 20, 2015.

2. The General Department of Environment shall be responsible for guiding and inspecting the implementation of this Circular.

3. During the implementation of this Circular, if difficulties or obstacles arise, relevant ministries, sectors, localities, organizations, and individuals shall promptly reflect these issues to the Ministry of Natural Resources and Environment for consolidation and submission to the Minister for consideration and decision./.