Regulations relating to exploitation of subsea reservoirs on the continental shelf for storage of CO₂ and relating to transportation of CO₂ on the continental shelf

Legal basis: Laid down by Royal Decree on 5 December 2014 pursuant to Section 3 of Act No. 12 of 21 June 1963 relating to scientific research and exploration for and exploitation of subsea natural resources other than petroleum resources. Submitted by the Ministry of Petroleum and Energy.

EEA references: EEA Agreement Annex XX Chapter III No. 21 (Directive 2009/31/EC).

Corrections: 20 Jan 2015 (Section 6-2).

Last translated October 31th 2017

 

Contents

 

Chapter 1.
Introductory provisions

 

Section 1-1.
Objective

The objective of these Regulations is to contribute to sustainable energy generation and industrial production, by facilitating exploitation of subsea reservoirs on the continental shelf for environmentally secure storage of CO₂ as a measure to counteract climate change.

 

Section 1-2.
Ownership of subsea reservoirs for storage of CO₂

The Norwegian State has the proprietary right to subsea reservoirs on the continental shelf for exploitation of said reservoirs for storage of CO₂ and has an exclusive right to management of said reservoirs.

 

Section 1-3.
Scope of application

These Regulations shall apply for surveying and exploration for subsea reservoirs for storage of CO₂, as well as exploitation, transportation and storage of CO₂ in such reservoirs in areas subject to Norwegian jurisdiction. The Regulations also apply for transport of CO₂ and exploitation of subsea reservoirs for storage of CO₂ in and outside the realm and the Norwegian continental shelf when this follows from international law or from agreements with other states.

When a pipeline in internal Norwegian waters, on Norwegian sea territory or the continental shelf starts in an area outside Norwegian jurisdiction, the King may, to the extent that this follows from international law, decide which rules in these Regulations shall apply for said pipeline with associated facilities.

Surveying and exploration for subsea reservoirs for storage of CO₂, and exploitation, transport and storage of CO₂ in such reservoirs on the Norwegian continental shelf as part of the petroleum activities is regulated by the Petroleum Act (Act No. 72 of 29 November 1996) with associated regulations.

These Regulations do not apply on Svalbard, including its inland waters and sea territory.

 

Section 1-4.
Requirement relating to licence etc.

Only the State may conduct surveying, exploration, exploitation of subsea reservoirs on the continental shelf for storage of CO₂ and/or transport of CO₂ on the continental shelf without the licences, approvals and consents required pursuant to these Regulations. The other provisions in these Regulations and the regulations laid down pursuant to them, shall apply for such activities insofar as they are applicable.

 

Section 1-5.
Other Norwegian law

Norwegian law other than these Regulations, including provisions concerning licences, approval or consent required pursuant to legislation, shall also apply for transport and exploitation of subsea reservoirs on the continental shelf for storage of CO₂. This shall apply unless otherwise follows from regulations, provisions laid down by the King, from international law or from agreements with other states.

 

Section 1-6.
Definitions

These Regulations use the following definitions:

a) CO₂ flows, the mass flow of CO₂ and any accidental accompanying substances from CO₂ capture processes,

b) CO₂ dispersion, distribution of CO₂ volumes in a subsea reservoir,

c) The Ministry, the Royal Norwegian Ministry of Petroleum and Energy,

d) Post-operation, the period after shutdown of a storage location, including the period following transfer of responsibility for said storage location to the Ministry of Petroleum and Energy,

e) Geological formation, a geological unit, delimited by rock types through structural or lithostratigraphic subdivisions,

f) Geological storage of CO₂, injection followed by storage of CO₂ in subsea geological reservoirs,

g) Hydraulic unit, a hydraulically connected pore volume where pressure communication can be technically measured, and which is surrounded by flow barriers (faults or lithological boundaries). A hydraulic unit can be a single subsea reservoir or consist of multiple subsea reservoirs and the surrounding rock,

h) Injection, injection of CO₂ in subsea reservoirs, including drilling of injection wells, injection, as well as construction, placement, operation and use of a facility for injection,

i) Facility, installations, plants and other equipment for exploitation of subsea reservoirs for storage of CO₂, but excluding supply and utility vessels or vessels that transport CO₂ in bulk. Facility also includes pipelines and cables unless otherwise determined,

j) Continental shelf, the seabed and subsurface in the subsea areas that extend across the Norwegian sea territory throughout the natural extension of the land territory to the edge of the continental margin, but no less than 200 nautical miles from the baselines from which the sea territory's width is measured, yet limited by the median line in relation to other states unless otherwise follows from the rules in international law governing the continental shelf outside 200 nautical miles from the baselines or agreements with the state in question,

k) Storage complex, storage location and the geological surroundings that may be of significance for the security of the storage,

l) Storage location, a certain area within a geological formation that is used for geological storage of CO₂, and associated surface and injection facilities,

m) Leakage; release of CO₂ from the storage complex,

n) Exploration drilling, drilling of wildcat and appraisal wells with a view toward assessing the potential for exploitation of subsea reservoirs for storage of CO₂, as well as operation and use of facilities to the extent that they are used for exploration drilling,

o) Exploration, geological, geophysical, geochemical and geotechnical activities, exploration drilling, monitoring and injection testing in order to characterise the storage location with a view toward assessing the potential for exploitation of said location for storage of CO₂, as well as operation and use of a facility to the extent that it is used for exploration,

p) Shutdown of a storage location, final cessation of CO₂ injection in this storage location,

q) Migration, movement of CO₂ in the storage complex,

r) Operator, the legal (private or public) person that on behalf of the licensee handles the day-to-day management of transport and exploitation of subsea reservoirs for storage of CO₂,

s) Subsea reservoir, a geological unit, delimited by rock types through structural or stratigraphic boundaries, which has contained petroleum and/or water in the formation, or a combination thereof. In the event of doubt, the Ministry shall decide what is to be regarded as a subsea reservoir,

t) Exploitation, all activities linked to storage and monitoring of CO₂ in subsea reservoirs, including development, injection of CO₂, seismic data acquisition for monitoring, cessation and permanent storage of CO₂, as well as planning of such activities, but excluding transport of CO₂ in bulk in vessels,

u) Licensee, body corporate, or multiple such persons, which according to these Regulations holds a licence for surveying, exploration or exploitation of subsea reservoirs for storage of CO₂, or for installation and operation of facilities for transport of CO₂. If a licence is granted to multiple such persons jointly, the term licensee may include both the licensees together and the individual participant,

v) Transport, shipment of CO₂ via pipeline as well as construction of a pipeline, placement, operation and use of a facility for transport,

w) Corrective measures, measures implemented in order to correct significant irregularities with a view toward preventing or stopping leaks of CO₂ from the storage complex,

x) Water column, the continuous vertical volume of water from the surface to the base sediments in a mass of water,

y) Significant risk, a risk of damage to the environment or human health that cannot be overlooked without endangering the purpose of environmentally secure geological storage of CO₂. The assessment of whether there is a significant risk must take into consideration both the probability of damage occurring and the scope of said damage if it occurs,

z) Significant irregularity, an irregularity in the injection or storage operation or in the actual storage complex's condition which entails a risk of leakage or a risk for the environment or human health.

 

Section 1-7.
State participation

The King may decide that the State will participate in transport and exploitation of subsea reservoirs for storage of CO₂ pursuant to these Regulations.

 

Section 1-8.
Operator

When granting a licence for exploration (exploration licence), licence for exploitation of a subsea reservoir for storage of CO₂ or licence for installation and operation of a facility for transport of CO₂, the Ministry shall designate or approve an operator. There can be only one operator for each storage location. If a licence is granted for a body corporate as licensee, the Ministry shall as a main rule designate the licensee as the operator. If a licence is granted to multiple body corporates jointly, the Ministry shall as main rule designate one of the participants in the licensee company as the operator.

Any change of operator is contingent upon the Ministry's approval. When special reasons so warrant, the Ministry may replace the operator.

If the Ministry designates or approves an operator that is not a licensee or participant in the licensee company in accordance with the relevant licence, the provisions concerning the licensee's obligations stipulated in or pursuant to these Regulations shall apply correspondingly for the operator unless otherwise has been expressly decided.

This provision shall apply correspondingly in relation to special licences for installation and operation of facilities pursuant to Section 6-1.

 

Section 1-9.
Division of the continental shelf

The sea areas within the outer limit of the continental shelf are divided into blocks with a size of 15 latitude minutes and 20 longitude minutes, unless adjacent land areas, borders with other states' continental shelves or other considerations indicate otherwise.

 

Section 1-10.
Selecting a storage location

A subsea reservoir's suitability as a storage location shall be determined through a characterisation and assessment of a potential storage location and surrounding area according to the criteria listed in Appendix 1.

A subsea reservoir shall only be selected as a storage location if there, under the conditions proposed for such use, is not a significant risk of leakage, and there is also not considered to be any risk of health or environmental damage of significance.


Section 1-11.
Surveys of pipeline routes and other soil surveys

The licensee shall, no later than five weeks prior to surveys of pipeline routes and other soil surveys start, send the following information to the Norwegian Petroleum Directorate, the Directorate of Fisheries, the Institute of Marine Research and the Ministry of Defence:

a) The purpose of the surveys,

b) Time, duration and location of the surveys,

c) Survey methods,

d) What vessel will be used,

e) How deep any potential drilling will be.

Vessels that conduct route and other subsurface surveys must have a fisheries expert on board when this is necessary out of consideration for fishery activities in the area. In the event of doubt, the Norwegian Petroleum Directorate, in consultation with the Directorate of Fisheries, has deciding authority. The name of the fisheries expert must be reported to the mentioned authorities as soon as possible, and no later than five days before the activity starts.

While the activity is ongoing, the licensee must send information to the Norwegian Petroleum Directorate, the Directorate of Fisheries, the Institute of Marine Research and the Ministry of Defence on a weekly basis concerning the time, location of and nature of the activity, the survey vessel's movements and calls in Norwegian inland waters.

If the activity is not started at the set time, the licensee shall as soon as possible send a new report concerning the start-up time for the activity to the authorities as designated in the first paragraph.

The Norwegian Petroleum Directorate may, under special circumstances, decide that a survey shall be adapted or postponed, stipulate special conditions for continuation or halt the survey as designated in the first paragraph.

The Norwegian Petroleum Directorate may make exceptions from the deadlines in the first and second paragraphs.

During pipeline route surveys and other soil surveys drilling cannot exceed 200 metres below the seabed.

 

Chapter 2.
Survey licence

 

Section 2-1.
Granting of survey licence etc.

The Ministry may grant a body corporate a licence for surveying for subsea reservoirs for storage of CO₂.

The survey licence gives the right to explore for subsea reservoirs for storage of CO₂. It does not give an exclusive right to explore in the areas mentioned in the licence and neither does it give preferential rights in the assignment of exploration licences or licences for exploitation of a subsea reservoir for storage of CO₂. Exploration licences and licences for exploitation of a subsea reservoir for storage of CO₂ may be granted to others, or licences may be issued pursuant to Section 6-1 in areas that are subject to survey licences, without responsibility taking effect or refunds of paid fees being demanded.

Survey licences shall be issued for up to three calendar years unless another duration is stipulated.

The Ministry may give licensees holding survey licences consent to conduct others surveys.

 

Section 2-2.
The area of a survey licence

The survey licence shall indicate the area it comprises and may include one or more blocks or parts of blocks. The survey licence gives no right to survey in areas that are subject to exploration licences or licences for exploitation of CO₂, unless the Ministry decides otherwise pursuant to Section 4-13. Neither does the survey licence give a right to survey areas that are subject to a production licence pursuant to the Petroleum Act, unless the Ministry decides this pursuant to Section 3-11 of the Petroleum Act.

 

Section 2-3.
Application for survey licence

Applications for survey licences shall be submitted to the Ministry of Petroleum and Energy or the entity it authorises and shall contain information concerning:

a) The applicant's name, address and nationality. If the application includes multiple applicants, all names, addresses and nationalities must be listed,

b) Who in Norway will act as representative vis-à-vis the authorities,

c) What area the application comprises,

d) The purpose of and nature of the survey.

The Ministry of Petroleum and Energy or the entity it authorises may demand additional information.

A receipt for paid fee, cf. Section 2-5, shall be enclosed with the application.
Applications for survey licences with enclosures shall be written in Norwegian or English.

 

Section 2-4.
Which surveys the licence authorises

The survey licence gives the right to conduct geological, petrophysical, geophysical, geochemical and geotechnical activities. Shallow drilling may be conducted to a depth stipulated by the Ministry of Petroleum and Energy or the entity it authorises. The Ministry of Petroleum and Energy or the entity it authorises may restrict the individual survey licence to comprise certain types of surveys.

The Ministry or the entity it authorises may stipulate as a condition for the survey licence that information shall be provided concerning the sale or trade of survey results and set conditions for the execution of the surveys.

 

Section 2-5.
Payment for the survey licence

In respect of a survey licence, a fee amounting to NOK 65,000 per calendar year shall be paid in advance to the State via the Norwegian Petroleum Directorate.

The survey licence will be void if the licensee has not paid the fee for the upcoming year by 31 December.

A fee amounting to NOK 33,000 must be paid to the State for each seismic survey via the Norwegian Petroleum Directorate. The fee shall be paid no later than when the survey starts. Interest shall be paid in the event of late payment pursuant to Act No. 100 of 17 December 1976 relating to interest on overdue payments, etc.

The Ministry may change the fee in this provision in line with changes in monetary value.

 

Section 2-6.
Reporting information in connection with surveys

The licensee shall, no later than five weeks prior to the activity pursuant to a survey licences starts, send information concerning the following to the Norwegian Petroleum Directorate, the Directorate of Fisheries, the Institute of Marine Research and the Ministry of Defence:

a) Time, duration and exact information concerning the area of the survey with position lines,

b) Survey methods to be used,

c) What vessel will be used,

d) In what form results from the survey will be available.

The name of the fisheries expert must be reported to the mentioned authorities as soon as possible, and no later than five days before the activity starts.

The Norwegian Petroleum Directorate may make exceptions from the deadline in the first and second paragraphs.

If the activity is not started at the set time, the licensee shall as soon as possible send a new report concerning the start-up time for the activity to the authorities as mentioned in the first paragraph.

While the activity pursuant to a survey licence is ongoing, the licensee must send information to the Norwegian Petroleum Directorate, the Directorate of Fisheries, the Institute of Marine Research and the Ministry of Defence on a weekly basis concerning the time, location of and nature of the activity, the survey vessel's movements and calls in Norwegian inland waters.

If the activity is not concluded at the set time, the licensee shall send a new report concerning the duration of the activity to the authorities as designated in the first paragraph.

The Norwegian Petroleum Directorate shall ensure that a website is maintained with updated information about seismic surveys.

The licensee shall send data, registrations and results from the activity to the Norwegian Petroleum Directorate as soon as possible and no later than within three months after the individual activity pursuant to a survey licence is complete. Unless the Norwegian Petroleum Directorate wants to receive raw data, data that require processing beyond 3 months shall be sent as soon as they have been processed. The licensee shall furthermore state whether or not the results, etc., from the survey will be saleable.

Vessels that conduct surveys for subsea reservoirs for storage of CO₂ shall have on board and use satellite tracking equipment and a flight/voyage recorder. The Norwegian Petroleum Directorate shall stipulate detailed provisions concerning tracking equipment, including access to data.

This Section applies correspondingly for surveys conducted pursuant to an exploration licence or licence for exploitation of a subsea reservoir for storage of CO₂.

 

Chapter 3.
Licence for exploration (exploration licence)

 

Section 3-1.
Licence for exploration (exploration licence)

The King in Council may, under certain specific conditions, grant an exploration licence with a view toward assessing the potential for exploitation of a subsea reservoir for storage of CO₂. An exploration licence as mentioned may include stratigraphically designated areas within one or more blocks or parts of blocks.

An exploration licence may be granted to one or more body corporates that are established in concurrence with Norwegian legislation and are registered in the Register of Business Enterprises, when otherwise does not follow from international agreements. If an exploration licence is granted to multiple body corporates jointly, the activities pursuant to the licence shall be exercised at the participants' joint expense and risk. The enterprise that is thus established, shall be regarded as a licensee. An exploration licence shall be granted on objective, published and non-discriminatory criteria.

The granting of an exploration licence is contingent on the licensee having the financial strength, technical competence and reliability deemed necessary to conduct exploration activity pursuant to these Regulations, and that all quality requirements on the licensee and its organisation have been met. If an exploration licence is granted to multiple body corporates jointly, all participants in the licensee enterprise must satisfy said conditions.

An exploration licence gives an exclusive right to exploration with a view toward assessing the potential for exploitation of a subsea reservoir for storage of CO₂ in areas comprised by the licence.

The King may stipulate as a condition for the granting of an exploration licence that a licensee that consists of multiple participants, shall enter into a partnership agreement for the activity pursuant to the licence. Such an agreement is contingent on the Ministry's approval.

 

Section 3-2.
Administrative fee

For the handling of each application for an exploration licence, a fee of NOK 109,000 shall be paid to the State via the Norwegian Petroleum Directorate.

If the fee has not been paid, the application shall not be considered to have been received.

The Ministry may change the fee in this provision in line with changes in monetary value.

 

Section 3-3.
Work commitment

The King may impose on a licensee a certain specific work commitment for the area comprised by the exploration licence.

The work commitment may consist of surveys and exploration drilling of a certain number of wells down to designated depths or geological formations. The content, scope and deadline for fulfilling the work commitment shall be stipulated in the individual exploration licence. The work commitment may, if needed, also include monitoring of injection tests.

A fee amounting to NOK 33,000 must be paid to the State for each seismic survey via the Norwegian Petroleum Directorate. The fee shall be paid no later than when the survey starts. Interest shall be paid in the event of late payment pursuant to Act No. 100 of 17 December 1976 relating to interest on overdue payments, etc.

The Ministry may change the fee in this provision in line with changes in monetary value.
The Ministry may, upon application, make exceptions from the work commitment.

 

Section 3-4.
Duration of an exploration licence

The duration of an exploration licence shall not exceed the period of time deemed necessary in order to conduct the exploration activity comprised by the licence and may be up to 10 years. If the exploration licence is granted for a shorter period, the Ministry may later extend the licence within the framework of 10 years.

 

Section 3-5.
Relinquishment or surrender of an exploration licence

The licensee may, during the period as mentioned in the first sentence of Section 3-4, relinquish parts of the area comprised by the exploration licence with 3 months' notice. Thereafter, relinquishment of parts of the area may take place at the end of each calendar year, given that a notice of such relinquishment is given at least 3 months in advance.

The licensee may, during the period mentioned in the first sentence of Section 3-4, surrender the exploration licence in its entirety with 3 months' notice.

The Ministry may demand that the obligations that follow from the exploration licence and the conditions thereunder shall be met prior to relinquishment or surrender pursuant to this provision.

 

Chapter 4.
Licence for exploitation of a subsea reservoir for injection and storage of CO₂ (exploitation licence)

 

Section 4-1.
Licence for exploitation of subsea reservoirs for injection and storage of CO₂

The King in Council may, under certain specific conditions, grant a licence for exploitation of a subsea reservoir for injection and storage of CO₂ (exploitation licence). The licence shall indicate the area comprised by the licence through the indication of longitudes and latitudes, as well as a stratigraphic delineation of the geological unit(s) comprised.

An exploitation licence may be granted to one or more body corporates jointly which are established in concurrence with Norwegian legislation and are registered in the Register of Business Enterprises, when otherwise does not follow from international agreements. If a licence as mentioned is granted to multiple legal persons jointly, the activities pursuant to the licence shall be exercised at the participants' joint expense and risk. The enterprise that is thus established, shall be regarded as a licensee.

The granting of a licence for exploitation of a subsea reservoir for storage of CO₂ is contingent on the licensee having the financial strength, technical and geological competence and reliability deemed necessary to operate and control the storage location, and all quality requirements on the licensee and its organisation having been met. If a licence as mentioned is granted to multiple legal persons jointly, all participants in the licensee enterprise must satisfy said conditions.

A licensee that holds an exploration licence as mentioned in Section 3-1 and who, within the licence's validity period, applies for a licence for exploitation of a subsea reservoir for injection and storage of CO₂ in a specific storage location, shall be preferred in the granting of such a licence, given that the work commitment mentioned in Section 3-3 has been completed and the other conditions in the exploration licence have been met. A licence for exploitation of a subsea reservoir for storage of CO₂ gives an exclusive right to store CO₂ in the area comprised by the licence.

An exploitation licence shall be granted on objective, published and non-discriminatory criteria.

The King may stipulate as a condition for the granting of an exploitation licence that a licensee that consists of multiple participants, shall enter into a partnership agreement for the activity pursuant to the licence. Such an agreement is contingent on the Ministry's approval.

 

Section 4-2.
Application for a licence for exploitation of a subsea reservoir for injection and storage of CO₂

Applications for licences for exploitation of a subsea reservoir for injection and storage of CO₂ shall be submitted to the Ministry with copies to the Norwegian Petroleum Directorate, the Ministry of Labour and Social Affairs and the Petroleum Safety Authority Norway. The application must include:

a) The applicant's name and address,

b) A designation of who in Norway will act as representative vis-à-vis the authorities,

c) A designation of which area(s) is/are sought to be comprised by the exploitation licence,

d) A designation of the applicant's prioritisation of the areas, given that the application comprises multiple areas,

e) Information concerning the applicant's activities, including financial capacity,

f) A geological evaluation of the area(s) for which an exploitation licence is sought, and how an efficient storage activity is planned in the area(s),

g) A financial evaluation of the area(s) sought to be comprised by the exploitation licence,

h) Information concerning experience and technical expertise of significance for the area(s) for which an exploitation licence is sought,

i) A description of the organisation and competence the applicant will have at its disposal in Norway and other locations for activity in connection with the area(s) for which an exploitation licence is sought,

j) A receipt for paid administrative fee.

The Ministry may deviate from the required content in the application pursuant to the first paragraph, including a demand for additional information.

Applications for exploitation licences shall be written in Norwegian or English.

 

Section 4-3.
Administrative fee

For the handling of each application for an exploitation licence, a fee of NOK 109,000 shall be paid to the State via the Norwegian Petroleum Directorate.

If the fee has not been paid, the application shall not be considered received.
The Ministry may change the fee in this provision in line with changes in monetary value.

 

Section 4-4.
Duration of licences for exploitation of a subsea reservoir for injection and storage of CO₂

The duration of an exploitation licence is stipulated upon granting. The duration of the licence presumes that the subsea reservoir is put to use through development and storage within a deadline set upon granting.

The Ministry may, upon application from the licensee, when special reasons so warrant, extend the set deadline for development and storage.

The Ministry may, upon application from the licensee, when special reasons so warrant, also extend the licence. Applications for extension must be received no later than 5 years prior to expiry of the licence, unless the Ministry agrees or decides otherwise. The Ministry shall stipulate the conditions for such special extension.

 

Section 4-5.
Plan for development and operation of a subsea reservoir for injection and storage of CO₂

If the licensee decides to develop a subsea reservoir (storage location) for injection and storage of CO₂, the licensee shall submit to the Ministry for approval a plan for development and operation of the subsea reservoir. The plan for development and operation shall contain a description of the development and an impact assessment. Statements concerning the impact assessment shall be included in the evaluation upon approval of the plan for development and operation. A comprehensive plan that also includes safety and working environment, cf. Regulation No. 158 of 12 February 2010 relating to health, safety and the environment in the petroleum activities and at certain onshore facilities, with amendments, shall be submitted to the Ministry, the Ministry of Labour and Social Affairs and the Ministry of Climate and Environment with copies to the Norwegian Petroleum Directorate, the Petroleum Safety Authority Norway and the Norwegian Environment Agency.

The description of the development shall address financial, resource-related, technical, safety-related, commercial and environmental aspects as well as information concerning how a facility may be used and the storage location permanently shut down upon cessation of storage of CO₂. The plan shall also contain information concerning facilities for transport or exploitation that are covered by Section 6-1. In the event that a facility will be placed on the territory, the plan shall furthermore provide information concerning which permits, etc., have been sought pursuant to other applicable legislation.

Plans for development and storage of CO₂ in a subsea reservoir that involve construction measures in violation of the land use part of binding planning decisions pursuant to the Planning and Building Act, cannot be approved by the Ministry until the planning authority has given its consent.

The Ministry may, when special reasons so indicate, demand that the licensee provide a more detailed account of the environmental impact, potential risk of pollution, as well as effects for other affected enterprises for a larger overall area.

If the development of the storage location is planned in two or more stages, the plan shall, insofar as possible, include the overall development. The Ministry may limit the approval to only apply for individual stages.

If the licensee consists of multiple participants, the Ministry may demand that the individual participants state how they will finance their part of the development.
Significant contractual obligations must not be agreed or construction work started until a plan for development and storage of CO₂ in a subsea reservoir has been approved, unless the Ministry consents to this.

The Ministry shall, in a separate document, which shall be made public, account for and substantiate its decision to approve or not approve the plan for development and storage of CO₂. The substantiation shall e.g. indicate which environmental conditions are potentially associated with the approval, as well as which measures are potentially presumed to mitigate significant negative environmental effects. Confidential information shall not be made public.

The Ministry may, upon application from the licensee, waive requirements for a plan for development and storage of CO₂ in subsea reservoirs.

The Ministry shall be informed of and approve significant deviations or changed assumptions for a submitted or approved plan and material changes to facilities. The Ministry may demand that a new or amended plan be submitted for approval.

 

Section 4-6.
Description of the development in plans for development and operation of a subsea reservoir for injection and storage of CO₂

The description of the development with associated documentation shall be adapted to the scope of the development. The description shall account for financial, resource-related, technical, safety and environmental aspects of the development.
The description of the development shall contain the following, as necessary:

a) A characterisation of the storage location and storage complex, and an evaluation of the expected security of storage, cf. Section 1-10;

b) A description of the injection strategy and development solution for the storage location, as well as criteria for the choices that have been made,

c) A description of technical geological and reservoir aspects, as well as the total volume of CO₂ to be injected and stored, a description of anticipated CO₂ sources and transport methods, the injection rate and pressure conditions, as well as a description of where the injection facilities will be placed,

d) Composition of the CO₂ flow,

e) A description of technical solutions with expected energy consumption and access, including measures to prevent significant irregularities,

f) Information concerning management systems, including information concerning planning, organisation and execution of the development of the storage location,

g) Information concerning operation and maintenance,

h) Information concerning financial aspects,

i) Information concerning which permits, approvals or consents have been sought or which are planned to be sought pursuant to other applicable legislation, whether or not a facility will be placed on the land territory or sea territory subject to private ownership rights,

j) Information concerning facilities for transport that are covered by Section 6-1,

k) Description of technical measures for preparedness, cf. Regulation No. 158 of 12 February 2010 relating to health, safety and the environment in the petroleum activities and on certain onshore facilities, with amendments,

l) Information concerning other matters of importance for injection and storage of CO₂,

m) Other information required pursuant to the prevailing safety regulations, cf. Regulation No. 158 of 12 February 2010 relating to health, safety and the environment in the petroleum activities and on certain onshore facilities, with amendments,

n) Proposed monitoring plan, cf. Appendix II to these Regulations

o) Proposed plan for corrective measures in the event of significant irregularities, cf. Section 5-6(1)(b),

p) Proposed preliminary plan for post-operation, cf. Section 5-7 and Appendix II to these Regulations,

q) Documentation showing that the financial guarantee or other equivalent performance required pursuant to Section 5-9 is valid and has entered into force before storage of CO₂ starts,

r) Information concerning how the storage facilities may be used in connection with shutting down the storage location.

 

Section 4-7.
Study programme for impact assessment in plans for development and operation of a subsea reservoir for injection and storage of CO₂

The licensee shall, well before submitting a plan for development and storage of CO₂ in a subsea reservoir, prepare a proposed study programme. The proposal shall provide a brief description of the development, of relevant development solutions and, on the basis of available knowledge, of presumed effects for other
industries and the environment, including any trans-boundary environmental effects.

The proposal shall furthermore clarify the need for documentation. If an impact assessment has been prepared for the area where the development is planned to be implemented, the proposal shall clarify the need for additional documentation or updates.

The proposed study programme shall, to a necessary extent, contain a description of how the assessment work will be implemented, particularly as regards information and influence in relation to groups that are presumed to be particularly affected. The proposed study programme shall be based on the framework for documentation in Section 4-6.

The licensee shall submit the proposed study programme to affected authorities and special interest organisations for statements. A reasonable deadline shall be set for statements. This deadline should be no less than six weeks. The Ministry shall stipulate the study program on the basis of the proposal and statements in this connection. Received statements shall be accounted for, in addition to how they have been assessed and incorporated in the set programme. Copies of the set programme shall be sent to those who have submitted statements in the case. Decisions pursuant to this provision are not individual administrative decisions pursuant to the Public Administration Act. The Ministry may, in special instances, decide that the Ministry will submit the proposed study programme for consultation.

 

Section 4-8.
Impact assessment in plans for development and operation of a subsea reservoir for injection and storage of CO₂

An impact assessment in a plan for development and storage of CO₂ in a subsea reservoir shall account for the effects the development may have for commercial and environmental circumstances, including preventive and mitigating measures. The impact assessment shall, e.g.:

a) Describe alternative development solutions the licensee has investigated and substantiate the chosen development solution and injection strategy, account for the criteria for the choice that has been made, as well as describe any subsequent development stages, connection to other subsea reservoirs for storage of CO₂ [and onshore facilities] and any coordination of storage,

b) Describe the environment that may be significantly affected, and assess and consider environmental consequences of the development and storage, including:

  • describe discharges to sea and emissions to air,
  • describe any material assets and cultural artefacts that may be affected as a result of the development,
  • assess the consequences of the chosen technical solutions,
  • clarify how environmental criteria and consequences have been used as a basis for the chosen technical solutions,
  • describe possible and planned measures to prevent, reduce and if possible compensate for considerable negative environmental impact,

c) Assess which permits, approvals or consents will be sought pursuant to other applicable legislation, whether or not a facility will be placed on the land territory, sea territory subject to private ownership rights, inland waters or the sea territory,

d) Assess how the facilities will be used upon cessation of the storage,

e) Assess facilities for transport or exploitation covered by Section 6-1 of the Regulations,

f) Assess technical measures for preparedness,

g) Assess how environmental monitoring in the area can be carried out,

h) Include a summary of the above-mentioned items.

The impact assessment shall be prepared based on the study programme stipulated pursuant to Section 4-7 and adapted to the scope of the development and to what extent the development is considered to be covered by an impact assessment for a larger overall area. The impact assessment shall be submitted to the Ministry no later than concurrently with a description of the development. In areas where multiple subsea reservoirs for storage of CO₂ are to be developed, the licensee will be able to prepare an impact assessment for a larger overall area. A joint impact assessment may also be prepared for developments that are also subject to impact assessment pursuant to other legislation.

If the licensee substantiates that the development is covered by an existing relevant impact assessment for a subsea reservoir for storage of CO₂ or for a larger overall area, an impact assessment will only be required if the Ministry finds this to be necessary.

The licensee shall submit the impact assessment to affected authorities and special interest organisations for statements and it will be announced at the same time in the Norwegian Gazette that the impact assessment has been submitted for consultation. The impact assessment and, insofar as possible, any relevant background documents, shall be made available on the Internet. A reasonable deadline shall be set for statements concerning the impact assessment. This deadline should be no less than six weeks. The Ministry may, in special instances, decide that the Ministry will submit the impact assessment for consultation.

The Ministry shall, on the basis of the consultation, decide whether or not there is a need for additional studies or documentation concerning certain aspects. Any additional studies shall be submitted to the affected authorities and those who have given their opinion on the impact assessment for statements before a decision is made in the case. This deadline for statements should be no less than two weeks.

The Ministry's case presentation shall state how the effects of the development and received statements have been assessed, and what significance they have been assigned. The case presentation shall assess whether conditions shall be set with a view toward restricting and compensating for negative effects of significance.

The Ministry's decisions pursuant to this Section are not individual administrative decisions pursuant to the Public Administration Act.

 

Section 4-9.
Exemption from the requirement for an impact assessment

If the development is presumed not to have significant trans-boundary environmental effects, the requirement for an impact assessment may, under special circumstances, be waived in whole or in part. The Ministry shall inform the EFTA Surveillance Authority about the reason for the exception before it is granted.

 

Section 4-10.
Impact assessment in the event of significant trans-boundary environmental effects

If a development may have significant trans-boundary environmental effects, the Ministry shall submit the study programme and information about the requirement for approval of a plan for development and operation to states that may be affected, no later than when the study programme is submitted for consultation. Such information shall also be submitted if this is requested by a state that may be substantially affected.

Affected states may participate in the impact assessment process, including express opinions concerning the study programme and the impact assessment to the Ministry. The Ministry shall submit the impact assessment to the correct authority in affected states when the impact assessment is submitted for consultation in Norway. The Ministry may instruct the licensee to prepare the documents associated with the impact assessment in the foreign languages that are necessary.

The Ministry shall, upon approval of a plan for development and storage of CO₂ in a subsea reservoir, submit the document mentioned in Section 4-5(8) to the correct authority in affected states.

 

Section 4-11.
Stipulation of injection progress, etc.

The Ministry shall approve the injection progress before or in conjunction with approval pursuant to Section 4-5. A different injection progress than what follows from an approved plan for development and storage of CO₂ in a subsea reservoir may be stipulated if the consideration for resource management or other significant social considerations so warrant.

The Ministry may instruct the licensee to prepare a report on reservoir-related matters, including alternative injection schemes.

 

Section 4-12.
Surrender of a licence for exploitation of a subsea reservoir for storage of CO₂

Licensees may surrender its licence for exploitation of a subsea reservoir for storage of CO₂ in its entirety at the end of each calendar year, given that a notice of surrender is given at least 3 months in advance. The Ministry may demand that the obligations that follow from the licence for storage of CO₂ and its conditions shall be met prior to surrender.

 

Section 4-13.
Others' right to conduct surveys

Under special circumstances, the Ministry may allow parties other than the licensee to conduct surveys in the area covered by an exploration licence or licence for exploitation of a subsea reservoir for injection and storage of CO₂. The Ministry shall stipulate which surveys may be conducted and the duration of said surveys.

 

Section 4-14.
Others' right to place facilities, etc.

Licensees may not oppose that others lay pipelines, cables or lines of another nature or place other facilities on, in or above the area covered by a licence for exploitation of a subsea reservoir for injection and storage of CO₂. Such facilities must not cause an unreasonable disadvantage for the licensee.

The provision in the first paragraph applies correspondingly for necessary route and subsurface surveys prior to such placement.

 

Section 4-15.
Natural resources other than subsea reservoirs for storage of CO₂, etc.

An exploration licence or a licence for exploitation of a subsea reservoir for injection and storage of CO₂ shall not prevent parties other than the licensee from being allowed to conduct surveys for and recovery of other natural resources in the area when this does not cause an unreasonable disadvantage for the exploration or injection and storage of CO₂ conducted by the licensee pursuant to the exploration licence or the licence for exploitation of a subsea reservoir for injection and storage of CO₂. The same applies to scientific surveys.

If other natural resources are discovered in an area covered by an exploration licence or a licence for exploitation of a subsea reservoir for injection and storage of CO₂ and continuing activities cannot take place without resulting in an unreasonable disadvantage for the exploration or injection and storage of CO₂ conducted by the licensee pursuant to the exploration licence or the licence for exploitation of a subsea reservoir for injection and storage of CO₂, the King shall decide which of the activities shall be postponed, and potentially in what scope. This decision shall take into consideration what kind of discovery has been made, the investments made, what stage the activity has reached, the activities' duration and scope, and their financial and societal importance, etc., viewed in relation to the exploration or injection and storage of CO₂ that is conducted pursuant to the exploration licence or the licence for exploitation of a subsea reservoir for injection and storage of CO₂.

The party whose activities are postponed, may demand that its licence be extended for a period of time corresponding to the postponement. If the postponement only applies for a limited part of the activities that can be carried out pursuant to the licence, the Ministry may stipulate a shorter period of time for the extension, decide that an extension shall not be granted or that an extension shall only be granted for part of the area covered by the licence.

If the postponement means that the work commitment pursuant to Section 3-3 cannot be implemented within the set deadline, the deadline shall be extended to the necessary extent.

If a postponement pursuant to the second paragraph must be presumed to be particularly lengthy, the licence in question may instead be revoked.

The King may decide that the party permitted to uphold its activity shall, in whole or in part, refund accrued expenses and to a reasonable extent cover other losses for the party that must postpone or curtail its activity.

 

Chapter 5.
Injection and storage of CO₂

 

Section 5-1.
Prudent storage of CO₂

Storage of CO₂, shutdown of the storage location and post-operation shall take place in line with prudent technical and sound financial principles and such that the risk of leaks during transport of CO₂ and from the storage location is avoided insofar as possible. In order to achieve this, the licensee shall continuously assess technical solutions and implement necessary measures.

 

Section 5-2.
Consent for injection and storage of CO₂

The licensee must have acquired consent for injection and storage of CO₂ before starting injection and storage of CO₂ in a subsea reservoir. Consent for injection and storage of CO₂ is granted by the Ministry or the entity it authorises and by the Ministry of Labour and Social Affairs or the entity it authorises, cf.

Regulation No. 158 of 12 February 2010 relating to health, safety and the environment in the petroleum activities and at certain onshore facilities, with amendments.

The consent for injection and storage of CO₂ shall be compatible with a storage permit granted by the pollution authorities pursuant to Chapter 35 of Regulation No. 931 of 1 June 2004 to the Pollution Control Act (the Pollution Regulations). The same applies for any subsequent amendment of, exception from or addition to such consent.

Applications for consent for injection and storage of CO₂ shall contain:

  • The storage location's and storage complex' area and delineation, as well as information about the subsea geological reservoir, including the hydraulic unit for which the consent for injection and storage shall apply,
  • The injection operation, the volume of CO₂ that can be injected, limit values for reservoir pressure and limit values for injection rates and pressure,
  • Volumes and limit values for pressure build-up,
  • The operator's monitoring plan, cf. Appendix II to these Regulations,
  • Measurement of CO₂ injection rates,
  • Plans for any corrective measures,
  • Plan for shutdown and post-operation.

The Ministry of Petroleum and Energy or the entity it authorises shall be notified in the event of leaks or significant irregularities.

 

Section 5-3.
Conditions for consent for injection and storage of CO₂

A consent for injection and storage of CO₂ is contingent on fulfilment of the following conditions:

a) All relevant requirements in these Regulations have been met,

b) The licensee has the financial strength, technical competence and reliability deemed necessary to operate and control the storage location, and all quality requirements on the licensee and its organisation have been met,

c) Any mutual pressure influences between storage locations in the same hydraulic unit are of such a nature that the requirements in these Regulations can be fulfilled for both locations at the same time.

 

Section 5-4.
Monitoring

The operator shall monitor the injection facilities and the storage complex, including the dispersion of CO₂ in order to:

a) Compare the actual and modelled behaviour of the CO₂ and the formation water in the storage location,

b) Identify significant irregularities,

c) Follow the migration of CO₂,

d) Detect leaks of CO₂ from the storage complex,

e) Update the assessment of the storage complex' safety and integrity over the short and long term, including whether the stored CO₂ will remain safely stored.

The monitoring shall be conducted on the basis of a monitoring plan prepared by the operator in accordance with the requirements in Appendix II to these Regulations, and to which the Ministry has granted consent pursuant to Section 5-2.

The plan shall be updated in line with the requirements in Appendix II to these Regulations, and no less frequently than every five years. This in order to handle any changes in the risk assessment linked to leaks and for the environment, human health, new scientific knowledge or technological improvements. Updated plans are subject to the Ministry's consent pursuant to Section 5-2.

 

Section 5-5.
Regulatory supervision

The Ministry or the entity it authorises shall superintend the storage location at least once per year up to three years after shutdown, and then every five years until the responsibility has been transferred to the State, represented by the Ministry of Petroleum and Energy. During these regulatory supervisions, the Ministry or the entity it authorises shall inspect relevant injection and monitoring facilities, reservoir conditions, and any effects of the storage complex on the environment. The regulatory supervision shall, insofar as possible, be coordinated with regulatory supervisions by the pollution authorities pursuant to Section 35-11 of Regulation No. 931 of 1 June 2004 relating to pollution control (the Pollution Regulations).

Following each regulatory supervision, the Ministry or the entity it authorises shall prepare a report on the regulatory supervision results. The report shall assess whether the provisions in these Regulations have been adhered to, and whether additional measures are necessary. The report shall be submitted to the operator and made available to the public no later than two months after the regulatory supervision is complete.

 

Section 5-6.
Measures in the event of significant irregularities or leaks

If there is a risk of leaks or significant irregularities, the operator shall immediately inform the Ministry or the entity it authorises and implement the necessary corrective measures.

Corrective measures shall be implemented in accordance with the plan for corrective measures that has been prepared and approved pursuant to Section 4-6(1)(o). The Ministry or the entity it authorises may, at any time, instruct the operator to implement necessary corrective measures and measures to protect human health. Such measures may be in addition to, or differ from the measures described in the plan for corrective measures. The Ministry or the entity it authorises may also, at any time, implement corrective measures itself or demand that injection be stopped.

If the operator does not implement the necessary corrective measures, the Ministry or the entity it authorises shall implement them itself and recover the expenses from the operator.

 

Section 5-7.
Shutdown and post-operation

A storage location shall be shut down if:

a) The conditions stipulated for shutdown in the storage licence issued by the pollution authorities pursuant to Chapter 35 of Regulation No. 931 of 1 June 2004 relating to pollution control (the Pollution Regulations) and in the consent for injection and storage have been fulfilled,

b) The King consents to the shutdown on the basis of an application from the operator.

From when a storage location is shut down pursuant to (1)(a) or (b) and until responsibility for the storage location is transferred to the State, represented by the Ministry of Petroleum and Energy, pursuant to Section 5-8(1) and (6), the operator is still responsible for monitoring, reporting and implementation of corrective measures in line with the provisions in these Regulations. The operator is also responsible for sealing the storage location and removing the injection facilities.

The obligations in the second paragraph shall be fulfilled on the basis of a post-operation plan that has been prepared by the operator based on best practices in the area, and in pursuance of Appendix II to these Regulations. A preliminary post-operation plan shall be submitted to the Ministry or the entity it authorises for approval pursuant to Section 4-6(p).

Before shutdown of a storage location pursuant to (1)(a) and (b), the preliminary post-operation plan shall, if necessary, be updated in accordance with the risk analysis, best practices and technological improvements and then submitted to the Ministry or the entity it authorises for approval as the final post-operation plan.

 

Section 5-8.
Transfer of responsibility

Following shutdown of a storage location pursuant to Section 5-7(1)(a) or(b), all obligations concerning monitoring and corrective measures pursuant to these Regulations shall be transferred to the State, represented by the Ministry of Petroleum and Energy or the entity it authorises, either on its own initiative or upon application from the operator, given that the following conditions have been fulfilled:

a) All available information indicates that the stored CO₂ will remain entirely and permanently enclosed. The operator must e.g. be able to document that the actual behaviour of the injected CO₂ matches the modelled behaviour, that leakage cannot be proven and that the storage location is developing toward a condition of permanent stability,

b) A minimum period stipulated by the Ministry or the entity it authorises has expired. This minimum period must be no less than 20 years, unless the Ministry or the entity it authorises, upon application from the operator before or at this time, is convinced that the requirement in (a) has been met before the expiry of this period,

c) The financial requirements mentioned in Section 5-10 have been fulfilled,

d) The storage location has been prudently abandoned and the injection facilities removed.

The operator shall prepare a report which documents that the condition in (1)(a) has been fulfilled and submit this to the Ministry or the entity it authorises. As a minimum, this report must show

a) that the injected CO₂ actually behaves in accordance with the modelled behaviour,

b) that no leakage can be proved,

c) that the storage location is developing toward a condition of long-term stability.

No later than one month after the operator's report has been received, the Ministry or the entity it authorises shall submit the report to the EFTA Surveillance Authority.

If the Ministry or the entity it authorises finds that the conditions in (1) have not been fulfilled, the application for transfer of responsibility shall be rejected. The rejection shall be substantiated.

If the Ministry or the entity it authorises finds that the conditions in (1) have been fulfilled, a draft approval shall be prepared. The draft shall specify which method has been used to ensure that the conditions in (1)(d) have been fulfilled, as well as any updated requirements concerning sealing of the storage location and removal of the injection facilities. The Ministry shall submit the draft approval of transfer of responsibility to the EFTA Surveillance Authority, which may provide its opinion within four months.

If the EFTA Surveillance Authority decides not to provide an opinion, the Ministry shall, within one month after the draft approval is received, be informed about this and the reason for the decision to not provide an opinion. When the Ministry or the entity it authorises has ensured that the conditions in (1)(a) through (d) have been fulfilled, the transfer of responsibility shall be approved and the operator shall be informed of this. The approval shall also be reported to the EFTA Surveillance Authority, explaining why any remarks from the EFTA Surveillance Authority have not been taken into account.

Following the transfer of responsibility, the routine regulatory supervisions pursuant to Section 5-5(1) shall be suspended, and the monitoring can be limited to a level which ensures that leakage or significant irregularities are proven. If leakage or significant irregularities are proven, the monitoring shall be intensified insofar as necessary in order to assess the scope of the problem and the effectiveness of the corrective measures.

If the operator has negligently or intentionally made errors, including delivering deficient data or withheld relevant information, the State, represented by the Ministry of Petroleum and Energy, shall recover the costs accrued after the transfer of responsibility from the previous operator. Unless the financial mechanism mentioned in Section 5-10 applies, additional costs shall not be recovered after the transfer of responsibility.

 

Section 5-9.
Financial guarantee

In applications for permission for injection and storage of CO₂ pursuant to Chapter 35 of Regulation No. 931 of 1 June 2004 relating to pollution control (the Pollution Regulations), the potential operator shall, based on specific provisions stipulated by the Norwegian Environment Agency, document that appropriate decisions and transactions can be made in the form of a guarantee or equivalent to ensure that all obligations arising from the mentioned regulation can be fulfilled. The financial guarantee shall be valid and effective when injection starts. The Ministry of Climate and Environment and the Ministry of Petroleum and Energy shall address the financial guarantee jointly.

 

Section 5-10.
Financial mechanism

Before a transfer of responsibility takes place pursuant to Section 5-8, the operator shall make a financial contribution available to the State, represented by the Ministry of Petroleum and Energy, as specifically directed by the Ministry. The contribution shall take into account the criteria mentioned in Appendix I, as well as elements that relate to the historical storage of CO₂ of relevance for stipulation of the obligations after the transfer. The financial contribution shall, as a minimum, cover anticipated monitoring expenses for a period of 30 years. The contribution may be used to cover the State's expenses after the transfer of responsibility to ensure that the CO₂ is safely stored after the transfer of responsibility.

 

Section 5-11.
Coordinated storage of CO₂

If a subsea reservoir and/or a hydraulic unit extends across multiple licences that do not have the same licensee, or onto another state's continental shelf, an agreement shall be sought on the most rational coordination of storage of CO₂ in connection with the reservoir. This shall apply correspondingly when it is obviously rational for multiple subsea reservoirs to coordinate the storage of CO₂.

Agreements on coordinated transport, injection, cessation and permanent storage of CO₂ shall be submitted to the Ministry for approval. If an understanding is not reached on such agreements within a reasonable time, the Ministry may decide how such coordinated storage of CO₂ shall take place.

 

Section 5-12.
Third party access to facilities for storage of CO₂ and storage locations

The Ministry may, under objective and non-discriminatory conditions, decide that facilities and storage locations covered by Section 4-5 and which are owned or used by a licensee, can be used by others if this is warranted by the consideration for efficient operations or social considerations, and the Ministry finds that such use is not an unreasonable impediment for the licensee's own duly substantiated reasonable need for storage or for a party that has already secured a usage right. The Ministry may, under corresponding conditions, decide that facilities and storage locations covered by Act No. 72 of 29 November 1996 relating to petroleum activities may be used by others to store CO₂.

In order to be able to use capacity in facilities covered by Section 4-5, the CO₂ flow to be stored must have specifications that are reasonably certain to be compatible with technical requirements for and the consideration for efficient operation of the facility and the storage location.

Licensees that own a facility covered by Section 4-5 may refuse use of this facility by others as a result of lack of capacity. The refusal shall be duly substantiated. If the licensee that owns the facility denies use of the facility by others as a result of lack of capacity, the Ministry may nevertheless instruct the licensee that owns the facility to improve the capacity, given that this is deemed to be economically justifiable, or that the party that wants to use the increased capacity is willing to pay for the necessary capacity increase. The Ministry may nevertheless only give such instructions if the relevant capacity increases cannot be presumed to have a negative impact on environmental security during storage of CO₂.

Agreements on the use of facilities and storage locations that are covered by Section 4-5 or by Act No. 72 of 29 November 1996 relating to petroleum activities shall be submitted to the Ministry for approval. The Ministry may, in connection with approval of agreements pursuant to the first sentence or if an agreement is not reached within a reasonable time, as well as in connection with instructions pursuant to the first paragraph, stipulate tariffs and other conditions or subsequently change the conditions that have been approved or set, in order to ensure that storage of CO₂ is implemented based on the consideration for resource management and that the owner of the facility is afforded a reasonable profit, e.g. based on investment and risk.

This provision shall apply correspondingly for facilities covered by Section 6-1. Licensees that own a facility covered by Section 6-1 may also deny use of this facility by others as a result of a lack of connection to other facilities.

This provision applies correspondingly for storage locations, insofar as appropriate.

 

Section 5-13.
Disputes

Disagreements concerning access to facilities and storage locations for storage of CO₂ can be brought before the Ministry or the entity it authorises for a final decision. Such decisions shall be made without undue delay once the case has been submitted. The Ministry or the entity it authorises may, as a dispute settlement mechanism, demand that the owner of such facilities must provide all necessary information for resolution of the dispute.

This provision shall apply correspondingly for facilities covered by Section 6-1.

 

Chapter 6.
Transport, etc., of CO₂

 

Section 6-1.
Specific licence to install and to operate facilities

The Ministry may on specified conditions, grant a specific licence to install and operate facilities when the right to install and to operate does not follow from an approved plan for development and storage of CO₂ in a subsea reservoir pursuant to Section 4-5.

Licence to install and to operate facilities may be granted to one or more legal persons that are established in concurrence with Norwegian legislation and are registered in the Register of Business Enterprises, when otherwise does not follow from international agreements. If a licence as mentioned is granted to multiple legal persons jointly, the activities pursuant to the licence shall be exercised at the participants' joint expense and risk. The enterprise that is thus established shall be regarded as a licensee.

The granting of a licence to install and to operate a facility is contingent on the licensee having the financial strength, technical and geological competence and reliability deemed necessary to operate and control the facility, and all quality requirements on the licensee and its organisation having been met. If a licence as mentioned is granted to multiple legal persons jointly, all participants in the licensee enterprise must satisfy said conditions.

An application shall be submitted with a plan for the construction, placing, operation and use of facilities as mentioned in the first paragraph, including shipment facilities, pipelines, facilities for production and transmission of electric energy and other facilities for transport or storage of CO₂.

A comprehensive application for a licence to install and to operate facilities as mentioned in the first paragraph and which also includes safety and working environment, cf. Regulation No. 158 of 12 February 2010 relating to health, safety and the environment in the petroleum activities and at certain onshore facilities, with amendments, shall include a plan which must contain a description of the project and an impact assessment. Statements concerning the impact assessment shall be included in the evaluation upon approval of the plan for installation and operation. The application shall be submitted to the Ministry and the Ministry of Labour and Social Affairs with copies to the Norwegian Petroleum Directorate and the Petroleum Safety Authority Norway. If an application is submitted by a party other than a licensee pursuant to a permit for exploitation of a subsea reservoir for injection and storage of CO₂, the provisions of Section 4-2 shall apply as appropriate.

Licence may be granted for a fixed period of time, and may on application from the licensee be extended by the Ministry.

The provisions in Section 4-5, except the first paragraph, first sentence and seventh paragraph, shall apply correspondingly unless otherwise decided by the Ministry.

 

Section 6-2.
Content of a plan to install and operate facilities

Application for licence to install and to operate facilities as mentioned in Section 6-1(1) shall account for financial, resource-related, technical and environmental and safety-related aspects of the project. The documentation shall be adapted to the extent of the project.

Plan to install and operate facilities as mentioned in Section 6-1(1) shall contain the following, to the necessary extent:

a) Information on the pipeline's destination, route, dimension and transportation capacity, as well as the criteria for the choices that have been made,

b) Information on the ownership of the facility,

c) Description of technical solutions, including solutions to prevent and minimize environmentally harmful discharges and emissions,

d) Information on management systems, including information on the planning, organizing and implementation of the development,

e) Information on operation and maintenance,

f) Information on economic aspects,

g) Information as to what licences, approvals or consents have been applied for, or that are planned to be applied for, pursuant to other applicable legislation, if a facility is to be placed on the land territory or seabed subject to private property rights,

h) Information as to how the facilities will be disposed of in connection with cessation of storage of CO₂,

i) Description of technical measures for emergency preparedness, cf. Regulation No. 158 of 12 February 2010 relating to health, safety and the environment in the petroleum activities and on certain onshore facilities, with amendments,

j) Information on other factors of importance to the resource management,

k) Other information required pursuant to the safety regulations in force at any time, cf. Regulation No. 158 of 12 February 2010 relating to health, safety and the environment in the petroleum activities and on certain onshore facilities, with amendments.

The Ministry may exempt from the requirement to documentation according to the first paragraph, including demand studies of alternative solutions.

Section 4-5(4), (5), (9) and (10) apply correspondingly for a plan to install and to operate facilities.

The description shall also be coordinated with requirements in Regulation No. 158 of 12 February 2010 relating to health, safety and the environment in the petroleum activities, on certain onshore facilities and in connection with CO₂ handling, with amendments.

 

Section 6-3.
Conditions, etc.

The Ministry may impose conditions on a licence to install and to operate facilities with regard to, inter alia:

a) The ownership of the facility,

b) The landing point of the pipeline,

c) The routing, dimension and capacity of the pipeline.

The Ministry may, when granting licence to install and to operate facilities as mentioned in this provision and at any subsequent point in time:

a) Stipulate tariffs for use of the facility for the owner's own CO₂ and for other CO₂,

b) Order the tie-in of the facility to other facilities, that the capacity shall be increased and that the facility shall be modified in order to be used for CO₂ other than that for which it was originally built. Orders as mentioned must not increase costs or unreasonably complicate use of the facility, which has been assured by approval of the Ministry. The costs of implementing orders as mentioned shall, subject to the Ministry's detailed provisions, be covered by the party(ies) that benefit from the orders given or be taken into consideration in the stipulation of tariffs,

c) Decide which CO₂ shall be transported in a pipeline; yet it cannot decide that CO₂ shall be transported to the displacement of CO₂ which has been assured transportation in a pipeline by approval of the Ministry.

 

Chapter 7.
Cessation of injection and storage of CO₂

 

Section 7-1.
Cessation plan

The licensee shall submit a cessation plan to the Ministry before a permit pursuant to Sections 4-1 or 6-1 expires or is surrendered, or the use of a facility finally ceases. The plan shall include a proposal for continued storage of CO₂ or shutdown of the storage location and disposal of facilities. Such disposal may e.g. be further use for storage of CO₂, other use, complete or partial removal or abandonment and permanent storage of CO₂. The plan shall contain the information and assessments that are deemed to be necessary in order to make a decision pursuant to Section 7-3. The Ministry may demand additional information and assessments, or demand a new or amended plan.

The cessation plan shall consist of a disposal part and an impact assessment and may include a proposal for disposing of multiple facilities. The Ministry shall be informed about changes to actual circumstances after the cessation plan has been submitted.

The description shall also be coordinated with requirements in Regulation No. 158 of 12 February 2010 relating to health, safety and the environment in the petroleum activities and at certain onshore facilities, with amendments, and shall be submitted to the Ministry and the Ministry of Labour and Social Affairs with copies to the Norwegian Petroleum Directorate and the Petroleum Safety Authority Norway.

Unless the Ministry consents to or decides otherwise, the time to submit a cessation plan shall be no later than two years before the use of a facility is presumed to finally cease. A corresponding deadline shall apply for the expiry of permits granted pursuant to Sections 4-1 or 6-1, given that the permits expire before use of the facility is presumed to finally cease.

The Ministry may waive the requirement to submit a cessation plan.

 

Section 7-2.
Notification of cessation of use

Licensees shall provide notification to the Ministry and Ministry of Labour and Social Affairs concerning the time of cessation if the use of a facility is presumed to finally cease before the permit for storage of CO₂ or transport of CO₂ expires.

 

Section 7-3.
Disposal decision

The Ministry shall make a decision concerning disposal and stipulate a deadline for implementing the decision. The assessment forming the basis for the decision shall e.g. emphasise technical, safety-related, environmental and financial aspects, as well as the consideration for other users of the sea. The Ministry may stipulate more detailed conditions in connection with the decision, including in connection with monitoring and responsibility in relation to permanent storage of injected CO₂, cf. also Section 5-8.

The licensee and owner are obliged to ensure that decisions concerning disposal are implemented, unless the Ministry decides otherwise. The obligation to implement the disposal decision applies even if the disposal decision is made or will be implemented after the expiry of the permit.

If a facility is transferred pursuant to Section 11-13, the licensee and owner are jointly obliged to ensure that decisions concerning disposal are implemented unless the Ministry decides otherwise.

If the decision involves continued use of the facility to store CO₂ or other use, the licensee, owner and user are jointly obliged to ensure that future decisions concerning disposal are implemented, unless the Ministry decides otherwise.

If decisions concerning disposal are not implemented within the set deadline, the Ministry may implement necessary measures on behalf of the licensee or other responsible party and at their expense and risk. Expenses for such measures form a basis for enforcing outlays.

Use of a facility for purposes other than storage of CO₂, complete or partial removal or abandonment cannot be decided pursuant to these Regulations for a facility on land or on sea territory subject to private ownership rights.

 

Section 7-4.
Responsibility

Parties that are obliged to implement disposal decisions pursuant to Section 7-3 are responsible for damage or disadvantages that are caused intentionally or negligently in connection with disposal of the facility or otherwise in connection with implementation of the decision.

If the decision involves abandonment of the facility and shutdown of the storage location for permanent storage of CO₂, the licensee or owner is responsible for damage or disadvantages that are caused intentionally or negligently in connection with the abandoned facility, unless the Ministry decides otherwise.

If there are multiple responsible parties pursuant to the first or second paragraphs, they are jointly and severally liable for financial obligations, unless the Ministry decides otherwise.

 

Section 7-5.
Encumbrances

If the State requires that a facility be removed, the encumbrances upon it shall be voided. The same applies if the State takes over the facility pursuant to Section 7-6; however such that usage rights established with the Ministry's consent shall remain.

 

Section 7-6.
State takeover

The State is entitled to take over a licensee's fixed facility when the permit expires, is surrendered or revoked, or when the use of such facilities finally ceases.

The King shall decide with binding effect whether and to what extent compensation shall be paid for the takeover.

When a facility on land or in sea territory subject to private ownership rights is taken over, compensation shall be paid to the extent that this follows from other applicable rules.

If the State has communicated that it will exercise its right to take over fixed facilities, the takeover shall come into force 6 months after the permit expires or lapses in some other manner or the use of the facility is finally ceased, unless otherwise is agreed or the Ministry decides otherwise.

When the State takes over, the facility and associated equipment shall be in a condition indicated by prudent maintenance for operational functionality. Disputes concerning this and the potential compensation to be paid to the State for lack of maintenance, shall be decided by discretionary assessment.

 

Chapter 8.
Liability for pollution damage

 

Section 8-1.
Definition

Pollution damage means damage or loss caused by pollution as a result of discharges or CO₂ emissions from the storage location, and expenses for reasonable measures in order to prevent or limit such damage or such loss as well as damage or loss caused by such measures. Pollution damage also includes damage or loss suffered by a fisherman due to reduced fishing opportunities.

Ships used in a stationary position for drilling are regarded as facilities. Ships used to store CO₂ in connection with injection facilities, are considered to be part of these facilities. The same applies to ships used to transport CO₂ during a facility's loading process.

 

Section 8-2.
Scope of application and choice of law

The provisions in this chapter apply for liability for pollution damage from facilities and/or storage locations when the damage occurs within the realm or within the outer limits of the continental shelf or affects Norwegian vessels, Norwegian fishing gear or Norwegian facilities in adjacent sea areas. As regards measures to prevent or limit pollution damage, it is adequate for the damage to occur in such areas.

The provisions in this chapter also apply to pollution damage from facilities used to transport or store CO₂ in a subsea reservoir pursuant to these Regulations, when the damage occurs on land or sea territory belonging to a state that has acceded to the Nordic Environmental Protection Convention of 19 February 1974.

The King may, unimpeded by the provisions in these Regulations, through agreement with other states, stipulate rules concerning liability for pollution damage due to transport or storage of CO₂ in a subsea reservoir pursuant to these Regulations. Such rules shall nevertheless not restrict the right to compensation pursuant to this act as regards parties suffering damage under Norwegian jurisdiction.

 

Section 8-3.
The responsible party and scope of liability

The licensee is liable for pollution damage regardless of guilt. The provisions concerning the licensee's responsibility shall apply equivalently to an operator that is not a licensee when the Ministry of Petroleum and Energy has so decided through approval of operator status.

If the Ministry of Petroleum and Energy has made a decision pursuant to the first paragraph, compensation claims shall first be directed to the operator. In the event that any part of the compensation is not covered by the operator upon maturity, it shall be covered by the licensees according to their ownership interest in the permit. If any party does not cover its share, this shall be distributed proportionately among the others.

If it is substantiated that an unavoidable natural occurrence, act of war, act of public authorities or similar force majeure has considerably contributed to the damage or its scope under circumstances that are outside the control of the responsible party, the responsibility can be reduced insofar as reasonable, taking into particular consideration the scope of the activities, the sufferer's situation and insurance options on both sides.

In the event of pollution damage from facilities in areas outside the Norwegian continental shelf, the party authorised by the competent authority to conduct the activities with which the facility is associated, shall be regarded as the licensee.

 

Section 8-4.
Allocation of tort liability

A licensee's liability for pollution damage shall be asserted pursuant to the rules in these Regulations.

Liability for pollution damage cannot be asserted against:

a) Parties that, according to agreement with a licensee or its contracting parties, have carried out assignments or work in connection with transport or storage of CO₂ in a subsea reservoir,

b) Parties that have manufactured or delivered equipment for use during transport or storage of CO₂ in a subsea reservoir,

c) Parties that implement measures to prevent or limit pollution damage, or to save lives or salvage assets that have been put at risk in connection with transport or storage of CO₂ in a subsea reservoir, unless the measure is carried out in violation of prohibitions issued by public authorities or will be carried out by parties other than a public authority in spite of express prohibitions by the operator or owner of the threatened assets,

d) Parties employed by the licensee or by a party as mentioned under a, b or c.

If liability for pollution damage is imposed upon the licensee, but not paid within the time set by the judgment, the sufferer may pursue the tort feasor to the same extent that the licensee may pursue the tort feasor in recourse action, cf. Section 8-5.

The licensee may demand compensation from the tort feasor for pollution damage inflicted upon the licensee to the same extent that the licensee can pursue the tort feasor in recourse action, cf. Section 8-5.

 

Section 8-5.
Recourse

Licensees cannot assert reimbursement liability for pollution damage against anyone that is exempt from responsibility pursuant to the rules in Section 8-4 unless the party in question or anyone in its service has acted with intent or with gross negligence.

Reimbursement liability can be reduced insofar as this is found to be reasonable according to demonstrated behaviour, financial capacity and other circumstances.

The provisions concerning limitation of liability in Act No. 39 of 24 June 1994 relating to shipping and navigation (the Norwegian Maritime Code) shall apply insofar as recourse is asserted vis-à-vis anyone that is entitled to limitation of liability pursuant to the rules of the Norwegian Maritime Code.

Agreements concerning further recourse against those that cannot be held liable pursuant to Section 8-4(2) are invalid.

 

Section 8-6.
Transport and storage of CO₂ in a subsea reservoir without a permit

If pollution damage occurs during transport or storage of CO₂ in a subsea reservoir and this activity is conducted without a permit, the party that has conducted such activity is responsible for damage regardless of guilt. The same responsibility rests with others that have taken part in transport or storage of CO₂ in a subsea reservoir and which knew or must have known that the activity was conducted without a permit.

 

Section 8-7.
Public announcement. Legal notice

Unless the Ministry of Petroleum and Energy finds it to be obviously unnecessary, the operator shall, without undue delay, through public announcement provide information concerning who compensation claims for pollution damage shall be directed to and concerning the length of the period of limitation.

Announcement shall take place by twice inserting an announcement at least one week apart in the Norwegian Gazette and in newspapers and other publications that are generally read in the locations where damage has occurred or is presumed to occur.

With the Ministry of Petroleum and Energy's consent, potential claimants may be summoned by legal notice, with the effect that claims that are not reported within the expiry of the legal notice period shall be void. The Ministry shall, in this connection, issue more detailed rules concerning the summons and length of the legal notice period, and may issue rules concerning the means of settlement.

 

Section 8-8.
Jurisdiction

Actions concerning compensation for pollution damage shall be filed in the jurisdiction where discharge or emission of CO₂ has occurred or where damage has occurred.
The Ministry of Petroleum and Energy shall decide where the action shall be filed if:

a) The discharge or emission has occurred or the damage occurred outside the area of any jurisdiction.

b) It cannot be proven within which jurisdiction the discharge or emission has occurred or damage occurred.

c) The discharge or emission has occurred in one jurisdiction and the damage occurred in another.

d) Damage has occurred in more than one jurisdiction.

 

Chapter 9.
Special rules concerning compensation to Norwegian fishermen

 

Section 9-1.
Technical scope and definitions

This Chapter concerns compensation for financial loss caused by transport and storage of CO₂ for Norwegian fishermen as a result of the activities occupying fishing grounds, or causing pollution and waste or that facilities or measures in connection with placement thereof cause damage.

The Chapter does not concern pollution damage caused by pollution as a result of discharges or CO₂ emissions from a facility, including wells, and expenses for reasonable measures in order to prevent or limit such damage or such loss as well as damage or loss caused by such measures. Pollution damage also includes damage or loss suffered by a fisherman due to reduced fishing opportunities.

In this Chapter, pollution and waste mean pollution and waste as mentioned in Act No. 6 of 13 March 1981 relating to protection against pollution and relating to waste, Section 6(1) Nos. 1 and 2 and Section 27(1), respectively.

In this Chapter, Norwegian fishermen means people registered in the fisherman census and owners of vessels listed in the register of Norwegian fishing vessels subject to registration licence.

The provisions in the other chapters of the act also apply in this chapter insofar as they are appropriate and do not conflict with provisions in this Chapter.

 

Section 9-2.
Occupation

If transport and storage of CO₂ in an area occupies fishing grounds, in whole or in part, the State is obliged, to the extent that fishery is rendered impossible or significantly complicated, to provide compensation for the economic losses this leads to.

The compensation may be stipulated, in whole or in part, as a one-off payment or as fixed annual amounts. Compensation can normally not be sought for losses that occurred more than 7 years after the occupation took place.

The State may demand recourse from the licensee if the licensee should have prevented the loss.

 

Section 9-3.
Pollution and waste

The licensee is liable regardless of guilt for financial losses as a result of pollution and waste from transport and storage of CO₂, and for expenses for reasonable measures to prevent or limit such damage or such loss, as well as damage or loss caused by such measures.

The licensee's responsibility pursuant to the first paragraph also includes damage and disadvantages from pollution and waste as a result of traffic with supply or utility vessels, as well as in connection with moving facilities to or from relevant fields. The licensee may assert reimbursement liability against the direct tort feasor or shipowner if the other applicable liability conditions have been met.

In order for compensation to be demanded for lost fishing time in connection with locating, tagging, recovering or bringing objects ashore, the objects must be prudently tagged or brought ashore and presented to the Police or port authority or other equivalent public authority, unless there are absolute obstacles preventing this. The position must nevertheless be reported to the Police or port authority.

What is mentioned in the third paragraph also applies for compensation for other loss insofar as such tagging, position designation or bringing ashore can reasonably be required.

The liability also comprises other vessels that assist a fishing vessel in bringing objects ashore.

 

Section 9-4.
Joint liability

If damage has been caused as mentioned in Section 9-3 and the tort feasor cannot be identified, the licensees shall be jointly liable to the extent that the damage may have been caused by transport and storage of CO₂ in connection with the licensees' permit.

 

Section 9-5.
Facilities, etc. that cause damage

If a facility or measures in connection with placement thereof cause damage, and the sufferer is not entitled to compensation pursuant to the provisions in Section 9-2, the licensee shall be liable regardless of guilt for the economic losses suffered by the fishermen as a result of the damage.

 

Section 9-6.
Committees, etc.

Claims asserted pursuant to this Chapter shall be processed by a committee. The King will lay down regulations concerning the composition and administrative procedures of the committee, as well as rules concerning the appeal process.

The appeal body's decision may, within two months after the party in question has been notified of the decision, be brought directly before the District Court through a writ of summons.

Claims stipulated by the committee or by the appeal body form a basis for enforcing outlays after the deadline for appeals or deadline as mentioned in the second paragraph has expired.

If the deadline in the second paragraph is exceeded, the appeal body may, according to the rules in Section 31 of the Public Administration Act, decide that the District Court should hear the case. Decisions concerning the exceeded deadline may be appealed to the District Court.

 

Chapter 10.
Special safety requirements

 

Section 10-1.
Safety

Transport and storage of CO₂ shall take place such that a high level of safety can be maintained and developed in line with the technological development.

 

Section 10-2.
Emergency preparedness

The licensee and other participants in the transport and storage of CO₂ shall at all times maintain effective emergency preparedness with a view to dealing with accidents and emergencies which may lead to loss of lives or personal injuries, pollution or significant damage to property. The licensee shall see to it that necessary measures are taken to prevent or reduce harmful effects, including the measures required in order, to return the environment to the condition it had before the accident occurred, to the extent possible. The Ministry of Labour and Social Affairs may issue rules concerning such preparedness and such measures, including order preparedness cooperation between multiple licensees.

In connection with accident and emergency situations as mentioned in the first paragraph, the Ministry of Labour and Social Affairs may decide that others shall make necessary preparedness resources available at the licensee's expense. The Ministry may, at the licensee's expense, also implement measures to acquire necessary additional resources in some other manner.

The rules in Act No. 7 of 15 December 1950 relating to special measures in time of war, threat of war and similar circumstances, Chapter 5 concerning compulsory surrender to the public authorities, apply correspondingly insofar as appropriate.

 

Section 10-3.
Preparedness against deliberate attacks

Licensees shall implement and maintain security measures to help prevent deliberate attacks on facilities, and shall always have emergency preparedness plans for such attacks.

Licensees shall make facilities available to public authorities for exercises and shall participate in such exercises, as necessary.

The Ministry of Labour and Social Affairs may order the implementation of measures as mentioned in the first and second paragraphs.

 

Section 10-4.
Safety zones, etc.

There shall be a safety zone around and above facilities unless the Ministry of Labour and Social Affairs decides otherwise. In accident and emergency situations, the Ministry may create provisional emergency and exclusion areas to the extent that this is deemed necessary to prevent or limit adverse effects. The extent of zones as mentioned in the first and second sentences shall be determined by the King. This provision does not apply for pipelines and cables.

The King may decide that a safety zone shall cross the boundary line to another state's continental shelf. The King may furthermore decide that there shall be a safety zone on the Norwegian continental shelf even if the facility in question is located outside the shelf.

The Ministry of Petroleum and Energy may decide that a zone equivalent to the safety zone shall be established within a reasonable time prior to placement of facilities as mentioned in the first paragraph.

The Ministry of Labour and Social Affairs may decide that there shall be safety zones around and above abandoned or dumped facilities, or parts of such facilities.

Unauthorized vessels, hovercraft, aircraft, fishing gear or other objects must not enter the zone as mentioned in the first, second, third and fourth paragraphs. If fishing can take place in the zone or parts of the zone without impacting safety or preventing storage of CO₂, the Ministry may nevertheless decide that such fishing may take place.
The Ministry of Labour and Social Affairs may lay down provisions that are deemed necessary in order to secure access for facilities as mentioned in the first paragraph to zones as mentioned in the third paragraph.

This Section does not apply for facilities located on land or sea territory subject to private ownership rights.

 

Section 10-5.
Stopping storage of CO₂, etc.

In the event of accident and emergency situations as mentioned in Section 10-2, the licensee or others that are responsible for operation and use of the facility shall, to a necessary extent, stop storage of CO₂ as long as warranted by the requirement for prudent operations.

Under special circumstances, the Ministry (Ministry of Labour and Social Affairs) may instruct that storage of CO₂ be stopped as necessary or set special conditions for continuation.

When decisions as mentioned in the second paragraph are substantiated by circumstances that are not caused by the licensee, the Ministry may, upon application, extend the permit's period of duration and, to a reasonable extent, reduce the obligations incumbent on the licensee.

 

Section 10-6.
Requirements for safety documentation

If the licensee decides to prepare plans with a view toward approval or a permit pursuant to Sections 4-2 or 6-1, the plans and the licensee's documentation for implementing this work shall be presented to the Ministry (Ministry of Labour and Social Affairs) as part of the safety supervision.

 

Chapter 11.
General provisions

 

Section 11-1.
Requirements for prudent transport and storage of CO₂

Transport and storage of CO₂ pursuant to these Regulations shall take place in a prudent manner and in conformity with applicable regulations for such transport and storage of CO₂. Transport and storage of CO₂ shall safeguard considerations for safety for personnel, the environment and the financial assets represented by the facilities and vessels, including operational availability.

Transport and storage of CO₂ must not, to an unnecessary or unreasonable extent, complicate or obstruct shipping, fishing, aviation or other activities, or cause damage or risk of damage to pipelines, cables or other subsea facilities. All reasonable precautions shall be taken to prevent damage to animal life and vegetation in the sea, relics of the past on the seabed and to prevent pollution and littering of the seabed, its subsurface, the sea, the atmosphere or onshore.

 

Section 11-2.
Management of activities associated with transport and exploitation of subsea reservoirs for storage of CO₂, bases, etc.

The licensee shall ensure that the activity can be carried out prudently, in accordance with applicable legislation, and in a manner that safeguards good resource management, health, safety and the environment. The licensee's organisation in Norway must have a structure and size that enables the licensee, at all times, to make informed decisions about its activities under this Regulation.

To ensure compliance with the first paragraph, the Ministry may, in each individual case, and to the extent it is deemed necessary in relation to the scope of the licensee's activity, set special requirements regarding the licensee's organisation in Norway. The Ministry may also, if indicated by the consideration for prudent resource management or health, safety and the environment, order the licensee to use specific bases.

The licensee shall see to that the circumstances permit trade union activities to take place among his own employees and the personnel of contractors and sub-contractors personnel in accordance with Norwegian practice.

 

Section 11-3.
Regulatory supervision of transport and storage of CO₂

The Ministry (Ministry of Petroleum and Energy, Ministry of Labour and Social Affairs) or such entity as they may authorise may conduct regulatory supervisions to verify that the provisions stipulated in or pursuant to these Regulations are adhered to by all parties conducting transport and storage of CO₂ that is covered by these Regulations. The Ministry may issue the instructions that are necessary for implementation of the provisions stipulated in or pursuant to these Regulations.

The Ministry (Ministry of Labour and Social Affairs) may, when deemed necessary, instruct that vessels or mobile facilities or parts of facilities be brought to a Norwegian harbour or other location.

Representatives of the Ministry (Ministry of Petroleum and Energy, Ministry of Labour and Social Affairs), the Norwegian Petroleum Directorate, the Petroleum Safety Authority Norway or other authority as determined by the authorities, shall at all times have access to vessels and facilities for transport and storage of CO₂, as well as to available data and materials that are necessary to conduct regulatory supervision activities, and shall be entitled to participate in surveys. Authority representatives are entitled to stay on vessels and facilities as long as is necessary. Licensees shall ensure transport of authority representatives to and from vessels and facilities, as well as accommodation on board.

The licensee or the party the individual regulatory supervision is aimed at or the party where the regulatory supervision takes place shall cover expenses related to regulatory supervisions. A sector fee may also be charged to cover all or parts of the activities.

 

Section 11-4.
Register of storage locations

The Ministry or such entity as authorises shall ensure the establishment and recording of:

a) A register of assigned permits for storage of CO₂, and
 

b) A permanent register of all shut down storage locations and surrounding storage complexes, including maps showing the spatial extent of the facilities, as well as the available information that is relevant in order to assess whether the stored CO₂ will remain entirely and permanently confined.

The register shall be taken into consideration in relevant planning procedures and in connection with approval of activities that may affect or be affected by the geological storage of CO₂ in the registered storage locations.

 

Section 11-5.
Area fee

When exploration permits, and permits for exploitation of a subsea reservoir for injection and storage of CO₂ are granted, or at a subsequent date, the licensee may be ordered to pay a fee per km² (area fee).

The Ministry may lay down regulations concerning payment of the area fee, including the size of and basis for such fees.

Fee claims with the addition of interest and expenses form a basis for enforcing outlays.

 

Section 11-6.
Qualifications

Licensees and others that participate in transport and storage of CO₂ shall have the necessary qualifications to conduct the work in a prudent manner. Training shall take place to a necessary extent.

Licensees are also obliged to ensure that any party that performs work on their behalf complies with the provisions in the first paragraph.

 

Section 11-7.
Materials and information concerning storage of CO₂

Materials and information that the licensee, operator, contractor, etc., has or is preparing in relation to planning and implementation of transport, injection and storage of CO₂ pursuant to these Regulations, shall be available in Norway and must be made available, on demand and free of charge to the Ministry (Ministry of Petroleum and Energy, Ministry of Labour and Social Affairs) or such entity as designated by the Ministry. This submission shall take place in the format the Ministry decides to the extent that this is found to be reasonable. The Ministry may, in this connection, also demand that analyses and studies be conducted. In connection with surrender of permits for storage of CO₂, the operator shall take over responsibility pursuant to this provision for materials and information relating to the surrendered permit for storage of CO₂.

The King will issue more detailed rules concerning which materials shall be available to the authorities and what the authorities can demand be submitted, as well as what information shall be given to public authorities before transport and storage of CO₂ commences and after this is under way.

It shall be possible to use information that is provided to the authorities according to more detailed provisions stipulated by the Ministry, e.g., for preparation of overview maps and for statistical purposes, e.g. by Statistics Norway.

 

Section 11-8.
Duty to comply with the Regulations and to ensure that provisions are adhered to

Licensees and others that participate in transport and storage of CO₂ that is covered by these Regulations, are obliged to comply with the Regulations, and regulations and individual administrative decisions laid down pursuant to the Regulations through implementation of necessary systematic measures.

Licensees are also responsible for ensuring that everyone contracted to perform work, either personally, through employees or through contractors or subcontractors, complies with requirements stipulated in or pursuant to the safety and working environment legislation.

 

Section 11-9.
Guarantee

Sections 5-9 and 5-10 notwithstanding, the Ministry may, upon granting a licence and subsequently, decide that licensees shall furnish such a guarantee as the Ministry requires for fulfilling the obligations the licensees have assumed, as well as for potential liability in connection with transport and storage of CO₂.

This applies correspondingly for other responsible parties pursuant to Chapter 8.

 

Section 11-10.
Liability for obligations

If a licensee consists of multiple participants that together hold a permit pursuant to these Regulations, they are jointly and severally liable vis-à-vis the State for financial obligations arising from transport, injection and storage of CO₂ in accordance with the permit.

 

Section 11-11.
Liability for damage caused

If any party that performs assignments for a licensee is liable vis-à-vis a third party, the licensee is liable to the same extent as and jointly and severally with the tort feasor and its employer, if applicable, for the compensation claim.

 

Section 11-12.
Investigation commission

If a serious accident has occurred in connection with transport and storage of CO₂ that is covered by these Regulations, the Ministry may appoint a special investigation commission. The same applies for incidents during the activities that have resulted in a serious risk of loss of life or significant material damage or pollution of the marine environment. The commission's members shall represent adequate legal, nautical and technical expertise. The chair shall satisfy the criteria for being a supreme court judge.

The investigation commission may demand that licensees and others that are involved in the accident or incident provide the commission with information that may be of significance for the investigation and that they make available documents, facilities and other things in a location where it is appropriate for the investigation to take place.
Licensees may be expected to cover expenses in connection with the investigation commission's work.

Rules in Chapter 18 of the Norwegian Maritime Code concerning maritime inquiries of maritime accidents and regulations laid down in pursuance of the Norwegian Maritime Code (Act No. 39 of 24 June 1994) apply correspondingly insofar as appropriate.

 

Section 11-13.
Transfer, etc.

Transfer of a permit or ownership interest in a permit pursuant to these Regulations cannot take place without the Ministry's consent. The same applies for other direct or indirect transfer of interest or participation in the permit, including e.g. transfer of shareholdings and other ownership interests that may yield a controlling influence over a licensee holding an ownership interest in a permit.

Transfer of a licensee's ownership rights to fixed facilities cannot take place without the Ministry's consent.

The Ministry may, in special instances, decide that a fee shall be paid for the transfer.

 

Section 11-14.
Insurance

The activities conducted by licensees pursuant to these Regulations shall be insured at all times. This insurance must, as a minimum, cover:

a) Damage to facilities,

b) Pollution damage and other liability vis-à-vis third parties,

c) Removal of wrecks and clean-up as a result of accidents,

d) Insurance of own employees who are involved in the activities.

Licensees shall ensure that contractors and sub-contractors involved in the activities insure their employees to the same extent as the operator insures its employees.
In connection with insurance as mentioned in (1)(a) through (c), licensees shall ensure reasonable insurance coverage based on the consideration for risk exposure and premium costs. Insurance as mentioned in (d) shall be taken out according to more detailed agreement with the employee organisations.

The Ministry may give licensees consent to use other forms of guarantees.
Licensees shall, at the end of each calendar year, inform the Ministry of applicable insurance agreements and list their commercial terms. The Ministry may demand that additional insurance coverage be taken out.

 

Section 11-15.
Audits

In permits with State participation, the operator shall ensure that the annual settlement for the permit, which has been prepared in accordance with the permit, is audited by a certified public accountant. An auditor's report, in accordance with RS 800, shall be available no later than four months after the close of the accounting year.

 

Section 11-16.
Trade union activities

Shop stewards in trade unions that have a collective agreement with the licensee, contractors or sub-contractors that perform work for him, shall, to a reasonable extent, be given access to the workplace in order to handle duties pursuant to collective agreements after notifying the local enterprise management.

 

Section 11-17.
Notification and reporting

Incidents and other matters that lead to shutdown of a storage location or which affect implementation of activities in line with decisions made pursuant to the Regulations, shall be reported to the Norwegian Petroleum Directorate without delay. The ministries (the Ministry of Petroleum and Energy and Ministry of Labour and Social Affairs) may stipulate more detailed provisions concerning notification and reporting to the authorities.

 

Section 11-18.
Observers

Representatives of the Ministry of Petroleum and Energy and Ministry of Labour and Social Affairs and the Norwegian Petroleum Directorate and Petroleum Safety Authority Norway shall be able to participate as observers in cooperative bodies established in accordance with agreements as mentioned in Section 4-1(6), out of consideration for coordinated operations as mentioned in Section 5-11 and in any cooperative bodies established in connection with construction and operation of facilities as mentioned in Section 6-1 of the Act.

 

Section 11-19.
Expert and laboratory services

The Norwegian Petroleum Directorate may, to the extent that it is deemed reasonable, instruct licensees to make expert and laboratory services available to the Norwegian Petroleum Directorate in order to resolve special problems in connection with transport and storage of CO₂.

 

Section 11-20.
Administrative procedures and confidentiality

The rules in Section 18(1) of the Act of 10 February 1967 relating to procedure in cases concerning public administration (the Public Administration Act) concerning a party's right to familiarise itself with the case documents, does not apply in connection with applications for exploration permits, permits for storage of CO₂ or permits for transport of CO₂.

Information of any nature that is submitted to the authorities in connection with applications for exploration permits, permits for storage of CO₂ or permits for transport of CO₂, shall be subject to confidentiality until an exploration permit, permit for storage of CO₂ or permit for transport of CO₂ to the relevant areas has been granted. Thereafter, the information will be subject to confidentiality to the extent that this follows from the Public Administration Act for a period of 20 years, cf. Section 13c(3) of the Public Administration Act.

Anyone who performs services or work for an administrative body, is obliged to prevent unauthorized personnel from gaining access to or familiarity with what he, in connection with this service or work, learns concerning geological, technical reservoir and technical injection conditions in reports or other materials that are submitted to public authorities. For data that is subject to confidentiality pursuant to the first sentence, the confidentiality shall have the following duration, calculated from when the data became available to the owner of the data:

a) 2 years for data that are not saleable and which are the joint property of the licensees in a permit covered by these Regulations and which arose from the permit in question,

b) 10 years for data that have been saleable from when they became available to the owner,

c) 5 years for other data.

The following applies for data as mentioned in (3): For data that is the joint property of the licensees in a permit pursuant to these Regulations and which arose from the permit in question, the confidentiality ends when the permit is surrendered or the area from which the data arose is relinquished. Information concerning whether data shall be saleable shall be reported to the Norwegian Petroleum Directorate pursuant to Section 2-6(8). The Norwegian Petroleum Directorate may stipulate what is regarded as saleable data. As regards interpreted data, the confidentiality shall have a duration of 20 years. The Norwegian Petroleum Directorate may, upon application, shorten the period of confidentiality for interpreted data and extend or shorten the period of confidentiality for data as designated in (3).

The provisions concerning confidentiality in Sections 13 through 13f of the Public Administration Act shall otherwise apply for administrative bodies that receive or process information or materials concerning surveys and exploration for, exploitation, transport and storage of CO₂ in subsea reservoirs, albeit such that the duty of confidentiality ends after 10 years, cf. Section 13c(3) of the Public Administration Act.

The provisions in this Section shall not prevent the Ministry from issuing general statements concerning the activities and concerning the opportunities for finding storage locations, as well as concerning exchange of information as presumed in Act No. 15 of 3 June 1994 relating to the Central Coordinating Register of Legal Entities.

Neither shall the provision in this Section prevent exchange of information with the Ministry of Labour and Social Affairs and the Petroleum Safety Authority Norway.

 

Section 11-21.
Revocation

The King may revoke permits pursuant to these Regulations in the event of serious or repeated infringement of these Regulations, regulations laid down in pursuance thereof, stipulated conditions or issued instructions.

If incorrect information is provided in an application for a permit or information of significance has been withheld and it must be presumed that a permit would not have been granted if correct or complete information had been provided, the permit may be revoked from the licensee in question.

A permit may be revoked if the guarantee the licensee is obliged to furnish pursuant to Section 11-9 has been significantly weakened, or if the enterprise or other association holding the permit is dissolved or subject to compulsory debt settlement or bankruptcy proceedings.


Section 11-22.
Results of revocation, surrender of rights or discharge for other reasons

Revocation of permits, surrender of rights or discharge of rights for other reasons do not remove the financial obligations that follow from these Regulations, regulations laid down in pursuance thereof or special conditions. If a work commitment or other obligation has not been fulfilled, the Ministry may demand payment, in whole or in part, of the amount that fulfilment of the obligation would have cost. The amount shall be stipulated with binding effect by the Ministry.

 

Section 11-23.
Regulations and administrative decisions

The Ministry (Ministry of Petroleum and Energy and Ministry of Labour and Social Affairs) may draft the regulations and issue the instructions that are necessary to implement these Regulations.

The Ministry itself can make decisions or delegate authority to others regardless of whether authority pursuant to these regulations is given to the Norwegian Petroleum Directorate or the Petroleum Safety Authority Norway.

Authority in connection with regulatory supervision activity may, in special instances, be delegated to parties other than public administrative bodies.

The Ministry may, in special circumstances, grant exemption from provisions stipulated in or laid down pursuant to these Regulations.

When authority in these Regulations is given to the Norwegian Petroleum Directorate or the Petroleum Safety Authority Norway, this also includes authority pursuant to (1) and (4).

Other conditions than those mentioned in these Regulations may be stipulated in connection with administrative decisions that have a natural connection to the measure or the activities to which the administrative decision applies.

 

Section 11-24.
Penal provisions

Intentional or negligent infringement of provisions or decisions made in or pursuant to these Regulations shall be punished with fines or imprisonment for up to 3 months. Imprisonment for up to 2 years may be applied under particularly aggravated circumstances. Aiding and abetting shall be punished in the same way. These provisions shall not apply if the matter is covered by more stringent penal provisions.

 

Chapter 12.
Entry into force

 

Section 12-1.
Entry into force

These Regulations shall enter into force immediately.

 

 

Appendix I.

Criteria for describing and assessing the potential storage location and surrounding area mentioned in Section 1-10 of these Regulations

 

The description and assessment of the relevant storage location and surrounding areas mentioned in Section 1-10 of these Regulations shall take place in three stages in line with best practice at the time of the assessment and based on the criteria below. The Ministry may allow deviations from one or more of these criteria, provided that the licensee has demonstrated that this will not affect the suitability of the description and assessment as a basis for making a decision in accordance with Section 1-10.

Step 1: Data acquisition

Sufficient data shall be collected to establish a volumetric and three-dimensional static (3D) geological model of the storage location and storage complex, including cap rocks and the surrounding areas - including hydraulically connected areas.
These data shall at least include the following inherent characteristics of the storage complex:

  • Geological and geophysical data,
  • Reservoir calculations (including volumetric calculations of pore volume for CO₂ injection and maximum storage capacity),
  • Geochemical data (resolution velocity, mineralisation velocity),
  • Geomechanical data (permeability, fracture pressure),
  • Earthquake frequency,
  • Presence and condition of natural and anthropogenic flow routes for CO₂, including wells and boreholes that may form leakage routes.

The following characteristics of the storage complex' surroundings shall be documented:

  • Areas that surround the storage complex and which may be influenced by the storage of CO₂ - at the storage location,
  • Proximity to valuable natural resources,
  • Activities around the storage complex and possible interactions with these activities (for example exploration for, production and storage of hydrocarbons, geothermal use of aquifers and use of subsurface water reservoirs),
  • Proximity to the potential CO₂ source or CO₂ sources (including estimates of the total volume of CO₂ that is reasonably available for storage) as well as suitable transport options,

Step 2: Establishing a three-dimensional geological model (for injection)

By using the data gathered in Step 1, one shall, using reservoir simulation tools, establish a three-dimensional geological model, or a set of such models of the proposed storage complex, including cap rocks and hydraulically connected areas and liquids.

The static geological model or models shall characterise the complex as regards:

  • Geological structure of the physical trap,
  • Geomechanical, geochemical and flow properties of the reservoir's overlying layer (cap rocks, seals, porous and permeable layers) and surrounding formations,
  • Characterisation of fractures and faults and the presence of natural and anthropogenic flow routes,
  • The area and vertical extent of the storage complex,
  • Pore volume (including distribution of porosity),
  • Original liquid distribution,Other relevant characteristics.

The uncertainty linked to each of the parameters used to construct the model shall be assessed by developing multiple scenarios for each parameter and estimating associated confidence limits. Any uncertainty associated with the model itself shall also be assessed.

 

Step 3: Characterising the dynamic development, sensitivity and risk assessment of the storage

The characterisations and assessments shall be based on dynamic models that include time simulations of CO₂ injections in the storage location by using the three-dimensional geological calculation model established for the storage complex in accordance with Step 2.

Step 3.1: Characterising dynamic conditions in the storage location

As a minimum, the following factors shall be assessed:

a) Potential injection rates and properties of the CO₂ flow,

b) The effect of linked process modellings (i.e. how different individual effects in the calculation model work together),

c) Reactive processes (i.e. how reactions between injected CO₂ and the present components (substances) connect back to the model),

d) The reservoir simulation model used (multiple simulations may be necessary in order to validate certain discoveries),

e) Short and long-term simulations (in order to establish what happens with the injected CO₂ and development over decades and millennia, including the resolution velocity of CO₂ in water),

The dynamic modelling shall provide give insight into:

f) Pressure and temperature in the storage formation as a function of injection rate and accumulated injected volume over time,

g) Area and vertical extent of CO₂ over time,
 

h) The CO₂ flow in the reservoir, including the phases it occurs in,
 

i) CO₂ trap mechanisms and velocities (including the overfilling point) and lateral and vertical seals,
 

j) Secondary shut-in systems for the entire storage complex,
 

k) Storage capacity and pressure gradients for the storage location,
 

l) Risk of fracturing in the storage formations and cap rocks,
 

m) Risk of CO₂ ingress in the cap rocks,
 

n) Risk of leakage from the storage location (e.g. through abandoned or insufficiently sealed wells),
 

o) Migration velocity (in non-shut-in reservoirs),
 

p) Fracture sealing velocity,
 

q) Changes in the formations' liquid chemistry and subsequent reactions (e.g. pH changes, mineral formation) and use of modelling of reactions to assess the consequences,
 

r) Replacement of formation liquids,
 

s) Increased seismicity and surface elevation.

Step 3.2: Sensitivity characteristics

Multiple simulations must be performed in order to identify the sensitivity of the assessments of chosen assumptions for special parameters. The simulations shall be based on different parameters in the geological model(s), and on different velocity functions and assumptions in the dynamic modelling. All significant sensitivity shall be taken into consideration in the risk assessment.

Step 3.3: Risk assessment

The risk assessment shall e.g. include the following:

3.3.1. Risk characteristics

Risk characteristics shall be obtained by characterising the potential for leakage from the storage complex, as established through dynamic modelling and safety characteristics as described above. This shall include observations such as:

a) Potential leakage routes, 

b) Potential size of leaks from identified leakage routes (flux velocities), 

c) Critical parameters that affect potential leakage (e.g. maximum reservoir pressure, maximum injection rate, temperature, sensitivity for varying assumptions in the geological model(s), etc.), 

d) Secondary effects of the storage, including displaced formation fluid and new substances formed in connection with storage of CO₂,

e) Any other factors that may entail a risk for health or the environment (e.g. physical structures associated with the project).

The risk characteristics shall include the entire spectrum of potential operational conditions for testing the safety of the storage complex.

3.3.2. Exposure assessment

This shall be based on characteristics of the environment and activities above the storage complex, and on the potential behaviour and what happens with CO₂ that leaks from the potential leakage routes identified in Step 3.3.1.

3.3.3. Effect assessments

These shall be based on the sensitivity of special species or habitats in connection with potential leakage incidents identified in Step 3.3.1.

If applicable, the assessments shall include the effects of exposure to elevated CO₂ concentrations in the biosphere (including soil, sediments in seawater and benthic water (lack of oxygen, elevated CO₂ content in the blood) and reduced pH in these environments as a result of leaked CO₂). It shall also include an assessment of effects of other substances that may be present in leaked CO₂ (either as impurities present in the injection flow or new substances formed through the storage of CO₂). These effects shall be assessed for different duration and area extent and linked to leakages of different sizes.

3.3.4. Risk characterisation

This shall include an assessment of the safety and integrity of the storage location over the short and long term, including an assessment of the risk of leakage under the proposed usage conditions, and as the worst imaginable environmental and health consequences.

The risk characterisation shall be performed based on risk, exposure and effect assessments. It shall include an assessment of the sources of uncertainty that are identified through the steps in the characterisation and of the storage location and, when possible, a description of the opportunities to reduce uncertainty.

 

Appendix II.

Criteria for establishing and updating the monitoring plan in Section 5-4 and post-operation plan in Section 5-7

 

1. Establishing and updating a monitoring plan

The monitoring plan mentioned in Section 5-4(2) shall be prepared in accordance with the risk assessment analysis performed Step 3 in Appendix I. The monitoring plan shall be updated to satisfy the requirements stipulated in Section 5-4(1) in line with the following criteria:

1.1. Establish the plan

The monitoring plan shall contain details concerning the monitoring programme that will be implemented in all main stages of the project, including basic data, operational phase and the post-operation phase.

The following shall be specified for each phase:

a) The parameters to be monitored,
 

b) The monitoring techniques that will be used and a substantiation for the chosen monitoring techniques,
 

c) Monitoring locations and a substantiation for the chosen sampling locations,
 

d) Sampling frequency and a substantiation thereof,

The parameters to be monitored shall be chosen such that they can satisfy the objective of the monitoring. The plan shall nevertheless always include continuous or periodic monitoring of the following factors:

e) Diffuse emissions of CO₂ near the injection facility,
 

f) CO₂ volume flow near the injection wellheads,
 

g) CO₂ pressure and temperature near the injection wellheads (in order to determine mass flow),
 

h) Chemical analysis of the injection flow,
 

i) Reservoir temperature and pressure (to determine the CO₂ phases' behaviour and condition),

The choice of monitoring techniques shall be based on the best practice available at the time of design. The following alternatives shall be considered and used, if possible:

j) Technologies that can detect the presence, location and migration route of CO₂ in the subsurface and on the surface,

k) Technologies that can provide information about the development of pressure and volume and area/vertical saturation of the CO₂ cloud (plume) in order to improve numerical 3D simulations related to 3D geological models of the storage formation established pursuant to these Regulations' Section 1-10 and Appendix I,

l) Technologies that can cover a broad area in order to obtain information about previously undiscovered potential leakage routes across the area dimensions of the entire storage complex and above, in the event of significant irregularities or migration of CO₂ out of the storage complex.

 

1.2. Updating the plan

Data obtained from the monitoring shall be collected and interpreted. The observed results shall be compared with the behaviour predicted in the dynamic simulation of 3D pressure volume and saturation behaviour performed in connection with safety characteristics pursuant to these Regulations' Section 1-10 and Appendix I, Step 3.
In the event of significant deviations between observed and predicted behaviour, the 3D model shall be calibrated to reflect the observed behaviour. The calibration shall be based on data observations from the monitoring plan, and additional data shall be collected where this is necessary in order to strengthen the calibration assumptions.
Steps 2 and 3 in Appendix I shall be repeated by using the calibrated 3D model to generate new risk scenarios and flux rates and to revise and update the risk assessment.

As regards new CO₂ sources, leakage routes and flux rates or in the event of observed significant deviations from previous assessments identified in the comparison with historical data, adaptation and calibration of the model, the monitoring plan shall be updated in line with this.

 

2. Monitoring after shutdown

Monitoring after the storage location is shut down shall be based on the information that has been collected and modelled during implementation of the monitoring plan in Section 5-4(2) and in the above-mentioned No. 1.2 in this Appendix. It shall particularly serve to provide the information required to make a decision pursuant to Section 5-7(1) of these Regulations.


01.11.2017