managing risk in a changing regulatory environment n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Managing Risk in a Changing Regulatory Environment PowerPoint Presentation
Download Presentation
Managing Risk in a Changing Regulatory Environment

Loading in 2 Seconds...

play fullscreen
1 / 15

Managing Risk in a Changing Regulatory Environment - PowerPoint PPT Presentation


  • 114 Views
  • Uploaded on

Winds of Change in Offshore Oil and Gas. Managing Risk in a Changing Regulatory Environment. February 20, 2014 Jeanne M. Grasso. What We’ll Be Talking About …. Marine Casualty Reporting Requirements on the OCS and Elsewhere SEMS, SEMS II and Another SEMS

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Managing Risk in a Changing Regulatory Environment' - zev


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
what we ll be talking about
What We’ll Be Talking About …
  • Marine Casualty Reporting Requirements on the OCS and Elsewhere
  • SEMS, SEMS II and Another SEMS
  • Jones Act and Other Enforcement Offshore
marine casualty reporting
Marine Casualty Reporting
  • Draft NVIC (January 14, 2014)
    • Goal is to provide guidance and clear policy as to the Coast Guard’s expectations to facilitate compliance
  • Proposed Rule (January 10, 2014)
    • Would broaden existing regulatory requirements for reporting marine casualties on the OCS by foreign-flag vessels and units
marine casualty reporting cont
Marine Casualty Reporting (cont.)
  • What must be reported in the navigable waters?
    • Grounding, allision, loss of propulsion/maneuverability, unseaworthiness/fitness for service, death, injury requiring professional medical treatment, certain property damage, significant harm to the environment

Confusion as to whether certain marine casualties need to be reported

Confusion whether something is a casualty

marine casualty reporting cont1
Marine Casualty Reporting (cont.)
  • What must be reported for OCS Activities?
    • OCS Facility (not MODUs): Death, injury to 5 or more in a single incident, incapacitation for >72 hours, damage to lifesaving/firefighting equipment, certain property damage
    • Vessels (and MODUs): Death, injury to 5 or more in a single incident, incapacitation for >72 hours,

BUT – U.S. flag vessels must report the same things as must be reported in navigable waters

marine casualty reporting1
Marine Casualty Reporting –
  • Review and Comment
    • Expansion of requirements
    • Possible BSEE conflicts
    • Impractical and unintended results
  • Understand requirements
  • Penalties
sems sems ii and another sems
SEMS, SEMS II and another SEMS
  • SEMS (October 2010 Final Rule)
    • Required the establishment of policy and objectives to deal with safety hazards and environmental impacts with a focus on reducing human error and driving continuous improvement.
      • Key components: Hazards Analysis, Management of Change, Operating Procedures, Mechanical Integrity and Contractor Management
  • SEMS II (April 2013 Final Rule)
    • Added requirements for:
      • Stop Work Authority
      • Ultimate Work Authority
      • Employee Participation Plan, Guidelines for Reporting Unsafe Conditions
      • Third Party Audits
coast guard s sems effort anprm
Coast Guard’s SEMS Effort – ANPRM
  • Issued September 2013 with 16 questions
  • Would require all vessels engaged in “OCS Activities” to develop, implement and maintain a vessel-specific SEMS
  • Much consternation:
    • Multiple and overlapping management programs
    • Complicates an already complicated regime with existing controls
    • Duplication and overlap with ISM Code and BSEE’s SEMS, with requirements flowing to vessels from lessees
jones act enforcement offshore
Jones Act Enforcement Offshore
  • Trigger is the lading and unlading of merchandise at a coastwise point
  • So, how does this apply offshore?
  • No merchandise may be transported by water, or by land and water . . . between points in the United States embraced within the coastwise laws, either directly or via a foreign port, or for any part of the transportation, in other than a coastwise-qualified vessel.
funny you should ask
Funny You Should Ask….
  • Jones Act application offshore based on a long history of Customs rulings
  • July 2009 CBP proposal to modify/revoke 20 Jones Act rulings covering more than 30 years of established precedent
  • Rulings focused on determinations as to whether items carried on board would be “equipment” or “merchandise”
current state
Current State
  • CBP’s 2009 proposal withdrawn
    • No further guidance
    • No equipment rulings issued
  • Now being handled as an enforcement issue
    • Port Directors at the helm
    • “Everything on the OCS is a point”
    • “If it goes out, it must come back that voyage”
  • Uncertainty and leads to ad hoc policy changes through enforcement actions
criminal enforcement
Criminal Enforcement
  • Deepwater Horizon
    • BP
      • $4 billion criminal plea
      • $7.8 billion civil settlement
    • Transocean
      • $400 million criminal fine
      • $1 billion civil fine
    • Haliburton
      • $ fine for destruction of evidence
      • $55 million donation to the National Fish & Wildlife Foundation
  • Rowan Companies
    • $8 million criminal settlement
avoiding this trend
Avoiding This Trend
  • “The Department of Justice will continue to prosecute shipping companies who break the laws that protect our oceans.”
  • Comprehensive Environmental Compliance Program
  • Good Company Culture!
  • Transparency with regulators
  • Enhanced Compliance Training
  • Open Reporting System
  • Internal Investigations
  • Audit Program
do not be complacent
Do not be complacent…

“Those who cannot remember the past are condemned to repeat it.” - George Santayana, The Life of Reason, 1905

questions
Questions?

Jeanne M. Grasso

Blank Rome LLP

Grasso@BlankRome.com

Tel: (202) 772-5927

Mob: (202) 431-2240

www.BlankRomeMaritime.com