file ref: eez100017 - epa...memorandum file ref: eez100017 to: richard johnson, manager, eez...
TRANSCRIPT
MEMORANDUM
File Ref: EEZ100017
To: Richard Johnson, Manager, EEZ Applications
Copy To: Siobhan Quayle, General Manager Climate, Land and Oceans
Manager, Kaupapa Kura Taiao
Acting Manager, EEZ Compliance
General Counsel
From: Senior Advisor, EEZ Applications
Date: 20 April 2018
Subject: OMV New Zealand Limited application for a marine discharge consent –
decision under section 40 of the Exclusive Economic Zone and Continental
Shelf (Environmental Effects) Act 2012.
Purpose
1. The purpose of this memorandum is to record the reasons for your decision to determine the OMV New
Zealand Ltd (OMV) marine discharge consent application as complete under section 40 of the Exclusive
Economic Zone and Continental Shelf (Environmental Effects) Act 2012 (EEZ Act).
2. This decision falls within your statutory delegation, as provided in the instrument of delegation from the
Chief Executive of the EPA.1
Recommendation
3. It is recommended that you:
a. Agree that OMV New Zealand Ltd’s application for a marine discharge consent (EEZ100017) is
determined as complete under section 40 of the EEZ Act.
1 Instrument of Delegation - Chief Executive to EPA Staff (3 November 2017):
http://epa/edrms/acc/1/md/edmd/2017_11_03_EEZ_Delegation_CE_to_staff.pdf
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Project Description
4. OMV are proposing to undertake an Exploration and Appraisal Drilling (EAD) programme starting in 2019
and possibly continuing up to 2025. This EAD programme will involve the drilling of up to nine exploration
wells and three appraisal wells in the Taranaki Basin.
5. The EAD programme will be located across six permits which have been granted to OMV under the Crown
Minerals Act 1991 - PMP38160 (Maari), PEP51906 (Cascade), PEP57075 (Cloudy Bay), PEP60091 (Te
Whatu), PEP60092 (Ridgeline) and PEP60093 (Toutouwai).
6. The EAD programme will use a Mobile Offshore Drilling Unit (MODU).
7. This application relates only to the discharge of trace amounts of harmful substances from the deck drains
of the MODU as offshore processing drainage. No other activities related to the EAD are the subject of
this application.
Legislative context
Section 20B restricted activities
9. Section 20B of the EEZ Act outlines restrictions on discharges of harmful substances into the sea or into
or onto the seabed of the EEZ from structures. No person may discharge a harmful substance from a
structure or from a submarine pipeline into the sea or onto the seabed of the EEZ unless the discharge is
a permitted activity, is authorised by a marine consent or is authorised by sections 21, 22, or 23 of the EEZ
Act.
10. OMV’s application is for the discharge of harmful substances from offshore processing drainage from the
deck drains of the MODU. This is restricted under section 20B of the EEZ Act.
Completeness assessment and notification requirements
11. Under section 38 of the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012
(EEZ Act) any person may apply to the EPA for a marine discharge consent to undertake a discretionary
activity. The application must be made in the prescribed form, fully describe the proposal and include an
impact assessment (IA) prepared in accordance with section 39 of the EEZ Act and requirements
prescribed in regulations.
12. In addition to the matters required under section 39 of the EEZ Act, regulation 35 of the Exclusive Economic
Zone and Continental Shelf (Environmental Effects – Discharges and Dumping) Regulations 2015 (D&D
Regs) requires that the IA describe the effects of the activity on human health.
13. The EPA must return an application for a marine discharge consent as incomplete under section 43 of the
EEZ Act if it considers that the application does not comply with section 38 (including because the impact
assessment does not comply with section 39 or any requirements prescribed in regulations).
14. If the EPA is satisfied that an application for a publicly notifiable marine discharge consent is complete, it
must give public notice of the application and serve a copy of the notice on those persons and groups
listed under section 46(1)(b)(ii) of the EEZ Act within 20 working days.
EEZ100017 OMV New Zealand Limited marine discharge consent application – Determination of completeness Page 3 of 12
EPA completeness assessment of OMV’s marine discharge consent
application
15. I have reviewed OMV’s IA under section 40 of the Act to determine whether it complies with the criteria in
section 38 of the EEZ Act.
Prescribed Form
16. The application for a marine discharge consent has been made in the prescribed form.
Fully describe the proposal
17. The application forms and IA (including its supporting technical reports in the appendices) fully describe
OMV’s proposal to discharge trace amounts of harmful substances from the deck drains of the MODU.
Impact Assessment
18. The IA addresses the matters listed in section 39 of the EEZ Act and regulation 35 of the D&D Regs. More
details are outlined below.
Section 39(1)(a) EEZ Act: Describe the activity for which consent is sought
19. Section 3 of the IA describes the activities for which consent is sought.
20. Section 3.1 of the IA outlines the proposed operations including the 12 proposed well locations and the
water depth at each location.
21. The EAD programme will start in 2019 and possibly continue up to 2025.
22. OMV have not contracted a MODU yet, therefore, section 3.2 of the IA outlines general information about
the typical design of a deck drainage system.
23. Harmful substances will only be stored or handled in what the IA has called the “hazard area”. Drains from
these areas are routed to a water treatment system which is composed of multi chambered settling tanks.
From here all fluids are put through an Oily Water Separator (OWS). When the oil content of the fluids are
less than 15 ppm the fluids can be discharged into the marine environment.
24. There will be a separate drainage system for the parts of the MODU described in the IA as the “non hazard
areas”. Harmful substances will not be permitted to be present in non hazard areas.
25. Section 3.4 of the IA outlines the process behind the selection of harmful substances. OMV are not aware
of exactly which substance will be used at this stage as this will depend on the requirements of the drilling
and exploration programme.
26. Section 3.3 of the IA describes the risk mitigation measures needed to firstly reduce the possibly of a spill
of harmful substance occurring and secondly to capture and clean up the spill.
27. Section 3.4 of the IA outlines that if a spill occurs it will be cleaned up appropriately, however, there is still
a possibility that there could be trace amounts of harmful substances which could run off the hazard area
into the deck drains, through the settling tanks and then be discharged.
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28. Section 3.7 of the IA has estimated that potentially 250 millilitres of harmful substance could be discharged
along with storm water.
29. There is no information provided in the IA on the frequency of these discharges since this will depend on
the number of spills that will occur. The decision making committee may wish to seek further clarification
on this issue.
30. I consider that the description of the activities for which the marine discharge consent is sought (section
39(1)(a) EEZ Act) is in:
a. such detail as corresponds to the scale and significance of the effects that the activity may have on
the environment and existing interests (section 39(3)(a) EEZ Act); and
b. sufficient detail to enable the EPA and persons whose existing interest may be affected to understand
the nature of the activity and its effects on the environment and existing interests (section 39(3)(b)
EEZ Act).
Section 39(1)(b) EEZ Act: Describe the current state of the area where it is proposed that the
activity will be undertaken and the environment surrounding the area
31. The IA has grouped the nine exploration wells and three appraisal wells into three Areas of Interest (AOI)
which are labelled in the IA as North, Central and South.
32. Section 5 of the IA describe the current state of each of the AOIs where the activity will be undertaken and
the surrounding environment with respect to:
a. the physical environment (meteorology, waves and currents, air quality, thermoclines and sea
temperature, water quality, bathymetry and geology and seabed substrate);
b. the biological environment (benthic invertebrates, cetaceans, pinnipeds, plankton and primary
productivity, fish, cephalopods, marine reptiles and seabirds);
c. marine classifications (based on the Marine Environment Classification (MEC), a Geographical
Information System approach for the classification of the New Zealand marine environment) and
sensitive sites;
d. the cultural environment; and
e. the socioeconomic environment.
33. The IA describes the existing environment in the North, Central and South AOIs in a general sense. The
IA does not describe the existing environment around each proposed well location in specific detail.
34. Section 5.4 of the IA describes the cultural environment and provides a brief overview of the iwi and their
rohe in the North, Central and South AOIs.
35. Section 5.5 of the IA describes the socioeconomic environment and provides a brief description of
recreational and commercial fishing.
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36. I consider that the description of the current state of the area where OMV proposes to undertake the
activity and the environment surrounding the area (section 39(1)(b) EEZ Act) is in:
a. such detail as corresponds to the scale and significance of the effects that the activity may have on
the environment and existing interests (section 39(3)(a) EEZ Act); and
b. sufficient detail to enable the EPA and persons whose existing interest may be affected to understand
the nature of the activity and its effects on the environment and existing interests (section 39(3)(b)
EEZ Act).
Section 39(1)(c) EEZ Act: Identify the persons whose existing interests are likely to be
adversely affected by the activity
37. Section 4.1 of the IA has identified activities and parties who may have existing interests in relation to the
proposed discharges.
38. This identifies that the existing interests are deep water commercial fishers, customary fishers and
associated quota holders.
39. I note that although the IA recognises customary fishing rights under the Fisheries (Kaimoana Customary
Fishing) Regulations 1998, it does not reference Māori customary fishing rights that are provided for under
the Fisheries (Amateur Fishing) Regulations 2013.
40. Iwi groups located inshore from the three AOIs are considered by OMV to be existing interests.
41. Section 4.2 of the IA lists the groups that OMV have either engaged with, advised or requested to meet
regarding the proposed discharge.
42. The identification of existing interests has been informed by OMV’s assessment that the potential effects
on the marine environment are limited due to the small volumes that may be discharged.
43. Section 5.4 of the IA also describes the cultural environment in the areas closest to the AOIs. This also
includes a description of customary and iwi fishing interests and interests under the Marine and Coastal
Area (Takutai Moana) Act 2011 (MACA), although, as noted above, this does not include a description of
customary interests under the Fisheries (Amateur Fishing) Regulations 2013.
44. Table 25 in Section 7 makes reference to the importance of the environment to Kaitiaki, which appears to
differ depending on the consequence level. It unclear what the applicant means by these statements.
45. I consider that OMV has made a reasonable effort (section 39(4)) to identify existing interests likely to be
adversely affected by the activity (section 39(1)(c) EEZ Act) and that identification is in:
a. such detail as corresponds to the scale and significance of the effects that the activity may have on
the environment and existing interests (section 39(3)(a) EEZ Act); and
b. sufficient detail to enable the EPA and persons whose existing interest may be affected to understand
the nature of the activity and its effects on the environment and existing interests (section 39(3)(b)
EEZ Act).
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Section 39(1)(d) EEZ Act: Identify the effects of the activity on the environment and existing
interests (including cumulative effects and effects that may occur in New Zealand or in the
sea above or beyond the continental shelf beyond the outer limits of the EEZ)
46. Section 7 of the IA outlines the environmental, cultural, socioeconomic and human health risk assessment.
47. The risk assessment has been adapted from the approaches proposed by MacDiarmid et al. (2012) and
Clark et al. (2012) and uses estimates of consequence and likelihood to estimate the level of risk.
48. The risk assessment determines the level of risk to
Sediment quality
Water quality
Benthic invertebrates
Marine mammals
Seabirds
Marine reptiles
Fish
Cephalopods
Primary producers
Marine environmental classifications and sensitive sites
Cultural environment
Recreational fishing
Commercial fishing
Cumulative effects
Human health
49. The risk assessment is largely influenced by the results of the harmful substance dilution calculation which
is outlined in section 3.7 of the IA. As the exact substances which may be discharged are unknown, this
harmful substance dilution calculation assesses the risk of a number of substances which have different
degrees of aquatic ecotoxicity to provide an indication of the likely level of risk associated with the
discharge.
50. I consider that the information provided regarding the effects of the activity on the environment and existing
interests (including cumulative effects and effects that may occur in New Zealand or in the sea above or
beyond the continental shelf beyond the outer limits of the EEZ) meets the requirements of making a
reasonable effort (section 39(4)) to identify the effects of the activity (section 39(1)(d) EEZ Act), and the
information is in:
a. such detail as corresponds to the scale and significance of the effects that the activity may have on
the environment and existing interests; (section 39(3)(a) EEZ Act); and
b. sufficient detail to enable the EPA and persons whose existing interests are or may be affected to
understand the nature of the activity and its effects on the environment and existing interests (section
39(3)(b) EEZ Act).
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Section 39(1)(e) EEZ Act: Identify the effects of the activity on the biological diversity and
integrity of marine species, ecosystems, and processes
51. Sections 7.2.2, 7.2.3, 7.2.5 and 7.2.6 of the IA identify the effects on a range of different organisms (listed
in paragraph 46 above).
52. The results of the risk assessment for all of these organisms will provide information which could be used
to help determine the effects on biological diversity, integrity of marine species, ecosystems and
processes.
53. As outlined above the risk assessment results for these organisms was largely based on the results of the
harmful substance dilution calculation which is outlined in section 3.7 of the IA along with a consideration
of the likely distribution of these organisms.
54. I consider that the information provided identifies the effects of the activity on the biological diversity and
integrity of marine species, ecosystems, and processes, meets the requirements of making a reasonable
effort (section 39(4)) to identify the information required by section 39(1)(e) of the EEZ Act, and the
information is in:
a. such detail as corresponds to the scale and significance of the effects that the activity may have on
the environment and existing interests; (section 39(3)(a) EEZ Act); and
b. sufficient detail to enable the EPA and persons whose existing interests are or may be affected to
understand the nature of the activity and its effects on the environment and existing interests (section
39(3)(b) EEZ Act).
Section 39(1)(f) EEZ Act: Identify the effects of the activity on rare and vulnerable
ecosystems and habitats of threatened species
55. The description of the existing environment in Section 5 of the IA lists the species including threatened
species that may be present in the AOIs.
56. Section 5.3.2 of the IA lists the sensitive environments that may be present in the AOIs.
57. Sections 7.2.2, 7.2.3, 7.2.5 and 7.2.6 of the IA identify the effects on a range of different organisms which
include rare and vulnerable ecosystems and habitats of threatened species (listed in paragraph 46 above).
58. As noted earlier, the conclusion of these risk assessments (in sections 7.2.2, 7.2.3, 7.2.5 and 7.2.6) are
based on the results of the harmful substance dilution calculation which is outlined in section 3.7 of the IA.
59. I consider that OMV meets the requirements of making a reasonable effort (section 39(4)) to provide the
information required by section 39(1)(f) of the EEZ Act in:
a. such detail as corresponds to the scale and significance of the effects that the activity may have on
the environment and existing interests (section 39(3)(a) EEZ Act); and
b. sufficient detail to enable the EPA and persons whose existing interests are or may be affected to
understand the nature of the activity and its effects on the environment and existing interests (section
39(3)(b) EEZ Act).
EEZ100017 OMV New Zealand Limited marine discharge consent application – Determination of completeness Page 8 of 12
Section 39(1)(g) EEZ Act: Describe any consultation undertaken with persons described in
paragraph (c) and specify those who have given written approval to the activity
60. Section 4.2 of the IA describes the stakeholder engagement process and includes the groups that OMV
have engaged with, advised or sent a request to meet with. These included:
Iwi and Hapū;
Fisheries; and
Taranaki Regional Council and the Department of Conservation (DOC) offices in Taranaki and Golden
Bay.
61. The engagement process for this application has been limited to certain key target groups based on OMV’s
assessment that the effects from the discharge will be limited to a very small area and are likely to be
negligible.
62. I consider that OMV has made a reasonable effort to consult with affected and interested persons and I
consider the description of any consultation undertaken with persons whose existing interests are likely to
be adversely affected by the activity (section 39(1)(g) EEZ Act) is in:
a. such detail as corresponds to the scale and significance of the effects that the activity may have on
the environment and existing interests (section 39(3)(a) EEZ Act); and
b. sufficient detail to enable the EPA and persons whose existing interest may be affected to understand
the nature of the activity and its effects on the environment and existing interests (section 39(3)(b)
EEZ Act).
Section 39(1)(h) EEZ Act: Include copies of any written approvals to the activity
63. No written approvals were obtained or included in the IA at the time of lodgement.
Section 39(1)(i) EEZ Act: Specify any possible alternative locations for, or methods for
undertaking, the activity that may avoid, remedy, or mitigate any adverse effects
64. The executive summary of the IA states that there are no alternative locations where this activity could
take place as the location of the MODU is determined by where hydrocarbons are expected to be located.
65. OMV’s Petroleum Exploration Permits (PEPs) require them to drill at least one well or surrender the permit.
66. Section 3.9 of the IA describes the only other alternative approach to discharges which is to collect all of
the deck drainage and to transport it onshore to be disposed of. The IA lists the disadvantages of this
approach.
67. I consider the information provided on possible alternative locations, or methods for undertaking the activity
that would avoid, remedy or mitigate the adverse effects (section 39(1)(i) EEZ Act) is in:
EEZ100017 OMV New Zealand Limited marine discharge consent application – Determination of completeness Page 9 of 12
a. such detail as corresponds to the scale and significance of the effects that the activity may have on
the environment and existing interests (section 39(3)(a) EEZ Act); and
b. sufficient detail to enable the EPA and persons whose existing interest may be affected to understand
the nature of the activity and its effects on the environment and existing interests (section 39(3)(b)
EEZ Act).
Section 39(1)(j) EEZ Act: Specify the measures that could be taken to avoid, remedy, or
mitigate the adverse effects identified (including measures that the applicant intends to
take)
68. The IA has listed a number of measures that will avoid, remedy or mitigate the adverse effects identified.
69. Section 3.2 of the IA describes the physical barriers that are present on a typical MODU. These include
bunding, the creation of a hazard area (where harmful substances can be used and stored and a non-
hazard area (where harmful substances are not permitted).
70. Section 3.3 of the IA outlines the systems and procedures that will be put in place to reduce risks. These
include training for staff, maintenance and routine checking of equipment, the use of spill kits and the
prohibition on helicopter refuelling on the MODU.
71. Section 3.4 of the IA outlines, how OMV intend to select the least hazardous substances necessary to
complete the job. OMV have also stated they will fully comply with the requirements of the Hazardous
Substance and New Organisms Act 1996 (HSNO) and Health and Safety at Work Act 2015 (HSWA).
72. Section 3.4.2 of the IA describes the requirements to have an Emergency Spill Response Plan (ESRP) for
the MODU which must be approved by the EPA under the D&D Regs.
73. Section 3.4.2 of the IA describes how the Safety Data Sheet (SDS) for all harmful substances will be
provided in the ESRP. SDSs contain information about the substance including information about their
ecotoxicity and environmental fate as well as information about what to do in the case of an emergency
such as a spill.
74. Appendix A of the IA outlines the conditions that OMV have suggested should apply should the marine
discharge consent be approved.
75. Section 39(5) of the EEZ Act requires the measures that must be specified under section 39(1)(j) include
any measure required by another marine management regime and any measures required by Health and
Safety at Work Act 2015.
76. Section 2.4 of the IA specifies the measures required by the following marine management regimes that
OMV suggest may avoid, remedy, or mitigate adverse effects of the activities on the environment or
existing interests:
Health and Safety at Work Act (2015)
Hazardous Substances and New Organisms Act (1996)
Resource Management Act (1991)
Crown Minerals Act 1991;
EEZ100017 OMV New Zealand Limited marine discharge consent application – Determination of completeness Page 10 of 12
Maritime Transport Act 1994
Biosecurity Act 1993;
Marine Protection Rule: Part 131
77. I consider that OMV has provided information required by section 39(1)(j) and section 39(5) of the EEZ
Act in:
a. such detail as corresponds to the scale and significance of the effects that the activity may have on
the environment and existing interests (section 39(3)(a) EEZ Act); and
b. Sufficient detail to enable the EPA and persons whose existing interest may be affected to understand
the nature of the activity and its effects on the environment and existing interests (section 39(3)(b)
EEZ Act).
Section 39(2)(a) EEZ Act: Description of effects of the activity on human health
78. Section 39(2)(a) of the EEZ Act and regulation 35 of the D&D Regs require that an impact assessment for
a marine discharge consent must include a description of the effects of the activity on human health.
79. Section 7.3 of the IA provides information about the impacts on human health. The risk assessment
considers the risks from direct exposure and from the consumption of fish.
80. I consider that OMV has provided information required by section 39(2)(a) of the EEZ Act and regulation
35 of the D&D Regs in:
a. such detail as corresponds to the scale and significance of the effects that the activity may have on
the environment and existing interests (section 39(3)(a) EEZ Act); and
b. Sufficient detail to enable the EPA and persons whose existing interest may be affected to understand
the nature of the activity and its effects on the environment and existing interests (section 39(3)(b)
EEZ Act).
Conclusion
81. I have assessed the IA against all the criteria in section 39 of the EEZ Act and regulation 35 of the D&D
Regs. I conclude that OMV’s application for a marine discharge consent, referenced as EEZ100017
complies with section 38 of the EEZ Act.
82. I observe that for all matters outlined in section 39 of the EEZ Act and regulation 35 of the D&D Regs
matters, the application contains information that is in;
a. such detail as corresponds to the scale and significance of the effects that the activity may
have on the environment and existing interests (section 39(3)(a) EEZ Act); and
b. sufficient detail to enable the EPA and persons whose existing interest may be affected to
understand the nature of the activity and its effects on the environment and existing interests
(section 39(3)(b) EEZ Act).
83. 1 also consider that OMV has made a reasonable effort to identify the matters described in section 39(1)(c)
to (f) and section 39(2) pursuant to section 39(4).
Recommendation
84. It is recommended that OMV's application for a marine discharge consent, including its accompanying IA
complies with section 38 of the EEZ Act and therefore should be determined as complete under section
40 of the EEZ Act, for the reasons set out in this memorandum.
r)-Q--l/4-/I~g
Date
Senior Advisor
EEZ Applications
Decision
85. That you:
a. Agree that OMV New Zealand Ltd's application for marine
discharge consent (EEZ100017) is determined as complete
under section 40 of the EEZ Act.
Yes
20 April 2018
Richard Johnson
Date
Manager, EEZ App ications
Climate, Land & Oceans
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