The legislation places the onus on operating oil companies to ensure the health and safety of all persons working in connection with petroleum activities in the Newfoundland and Labrador Offshore Area.
In order to oversee Operators' efforts in this regard, the Operations and Safety Department has an established safety assessment process to review Operators' applications in a systematic manner prior to the Board issuing a work authorization. This process considers the safety of the activity as a whole and its component parts including the installation, its facilities, personnel and procedures. This process also provides confidence that each Operator has an appropriate system in place to manage risk to personnel both from major hazards and from day to day occupational hazards. As part of the safety assessment process, Safety Officers may visit installations or vessels to conduct a safety audit or safety inspection.
The Department conducts safety assessments of the following petroleum activities:
- Production Operations
- Production Development (e.g. construction of glory holes, pipe laying, etc. on a production field)
- Drilling Operations
- Well Operations
- Diving Operations
- Geophysical Operations
Three concurrent processes may occur in conjunction with the Safety Assessment Process:
- For every authorization issued by the Board, the Operator must submit a Declaration of Fitness.
- If the authorization involves the use of an offshore production, drilling, diving or accommodation installation, a valid Certificate of Fitness must be issued by a recognized Certifying Authority.
- If the installation or vessel being authorized is a marine vessel or unit, the Board also requires a Letter of Compliance or a convention certificate from Transport Canada.
Prior to the Board issuing an authorization, the Operator must attest that the equipment and facilities to be used during their program are fit for purpose, the operating procedures relating to them are appropriate, the personnel employed are qualified and competent for their respective responsibilities and will continue to be so throughout the duration of the work authorization.
As part of the application process, Operators must demonstrate how they have ensured these requirements have been met and they must demonstrate how the above requirements will continue to be met for the duration of their program. If the Board is not satisfied with the Operator's demonstration of the above, the Board will not approve the Operator's application to do the work.
The Board has prescribed the Declaration of Fitness form. This declaration is signed by the Operator's representatives accountable for the work authorization program.
The Atlantic Accord Implementation Acts and the Certificate of Fitness Regulations require that each prescribed offshore installation (production, drilling, diving and accommodation) have a valid Certificate of Fitness issued by a recognized Certifying Authority before that installation is used to conduct any activity in the offshore area.
The Government of Canada, Government of Newfoundland and Labrador and the Government of Nova Scotia through the regulations have recognized five organizations to act as certifying authorities. The five organizations are:
- American Bureau of Shipping
- Bureau Veritas
- Det norske Veritas Classification A/S
- Lloyd's Register of Shipping
- Germanischer Lloyd
It is the ultimate responsibility of the Operator to ensure the program, including the facilities, comply with the regulations and to ensure the program can be conducted safely without polluting the environment. The purpose of this additional certification is to provide an independent third party assurance and verification that the installation, during the term of the certificate, is fit for purpose, functions as intended and remains in compliance with the regulations without compromising safety and polluting the environment.
Following the issuance of the Certificate of Fitness, the Certifying Authority surveys the installation periodically to verify the continued integrity of the installation. In addition, all modifications/repairs to the installation that affects its strength, stability, integrity, operability, safety or regulatory compliance need to be reviewed and accepted by the Certifying Authority to ensure the continued validity of the certificate.
The Operations and Safety department receives periodic reports and meets regularly with the Certifying Authorities of installations operating in our jurisdiction. The Operations and Safety department also monitors and audits the activities of the Certifying Authority.
Pursuant to the Atlantic Accord Implementation Acts, the Board has established a memorandum of understanding (MOU) with Transport Canada regarding marine matters. The MOU provides for the review of foreign flag vessels and mobile offshore drilling units (MODU's) by Transport Canada Marine Safety as if they were Canadian flagged and for the subsequent issuance of a Letter of Compliance. Transport Canada also issues a Letter of Compliance for each standby vessel.
Canadian flagged floating installations (e.g. MODU's and vessels) are reviewed by Transport Canada Marine Safety, as the Flag State , and require the issuance of convention certificates by Transport Canada .
Transport Canada Marine Safety's assistance is also sought as required for marine matters (e.g. lifeboats) on fixed installations.