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REGULATIONS AND LAWS GOVERNING OPERATIONS OF OIL AND GAS PIPELINES IN NIGERIA.
Department Of Petroleum Resources
ORDER OF PRESENTATION
Objective
Concept definition
Types/Applications of Pipelines
Problems Associated with Pipeline Operations in Nigeria
Laws and Regulations Governing Pipeline Operations in Nigeria
Other agencies involved in pipeline management
Penalties for not comply with the Laws and Regulations
CONCLUSION
Department Of Petroleum Resources
OBJECTIVES
To acquaint the participants on the Government
regulations and laws governing the operations of oil and gas pipelines in Nigeria
The interest being to highlight requirements for effective Pipeline Asset Management
Department Of Petroleum Resources
Concept Definition •
DPR (Department of Petroleum Resources) Arm of Government in charge of monitoring and enforcing laws and regulations in the Oil and Gas industry in Nigeria.
•
Pipeline oil pipeline means a conduit for the conveyance of mineral oils, natural gas and any of their derivatives or components, and also any substance (including steam and water) used or intended to be used in the production or refining or conveying of mineral oils, natural gas, and any of their derivatives or components .
•
Laws A rule of conduct or procedure established by custom, agreement, or authority.
•
Regulations A principle, rule, or law designed to control or govern conduct or practice.
Department Of Petroleum Resources
Types/Applications of Pipelines Usually we classify pipelines based on size and usage a) Flow-lines: usually of sizes 6” to 8” diameter. They convey hydrocarbon fluids from wellheads to the inlet manifold of the flow-stations or production platform
b) Trunk-lines:
Usually of sizes 6” to 24” diameter. They transport
produced hydrocarbons from:
1.
Flowstations to storage tanks or terminals
2.
Storage terminals to Refineries
c) Loading Lines: Usually of sizes 30” to 40” diameter. They transport
products from: 1.
Refineries to Depots and Jetties
3.
Jetties to off-take tankers
4.
Intercity pipelines which convey fuel to consumers
Department Of Petroleum Resources
Problems Associated with Pipeline Operations in Nigeria 1.
Pipeline ageing
2.
Pipeline corrosion
3.
Vandalization
4.
Poor measurement habit
5.
Difficult terrain of the Right Of Way (ROW)
6.
No on-line leak detection system
7.
Poor maintenance record
8.
Unavailability of intelligent pigs
9.
Pipeline route being inhabited due to increase urbanization
These problems necessitated the promulgation of Laws and Regulations by DPR to harmonize pipeline operation in Nigeria. Department Of Petroleum Resources
Laws and Regulation Governing Pipeline Operations in Nigeria a) Statutory Requirement for Pipeline laying.
1.
Permit to Survey pipeline routes (PTS)
2.
Oil pipeline Licence (OPLL)
b) Pipeline Acts and Regulations 1. Petroleum Ordinance # 145 of 1956 2. Oil pipeline ACT CAP 338 Laws of the Federation of Nigeria 1990 3. Oil and Gas Pipeline Regulation 1995 4. Mineral Oils and Safety Regulations (MOSR) 1997 5. Guidelines and procedures for the construction, operations and maintenance of oil and gas pipelines and their ancillary facilities.
6. Environmental Guidelines and Standards For the petroleum Industry in Nigeria Department Of Petroleum Resources
Highlights of Laws and Regulations • Regulations
The Oil Pipeline ACT CAP 338 LFN 1990 made provisions for 1. The right of way of the Landowners and those of lease owners 2. Permit to Survey, compensation, rights and obligation of holder of a license 3. Restrictions upon entry in respect of venerated lane 4. Penalty for hindering the taking possession of land etc.
• Permit To Survey •
Mandatory for surveying a route for a proposed pipeline or for surveying a route of an existing pipeline prior to renewal of the pipeline license • Has a two year expiry date • Application fee of N20.00 • Application made in ten copies and route of survey adequately specified •
Procedure involves writing to third parties for consent
Department Of Petroleum Resources
Highlights of Laws and Regulations •
Oil Pipeline License (License to Construct/Operate)
•
Inspection and Testing Pipelines
•
Protection and Maintenance Monitoring
a. b.
Required prior to construction and laying of pipeline Applied for within the validity period of the permit to survey and in line with provision of Part III of the Oil Pipeline Act CAP 338 LFN 1990 c. License fee of N50 d. Application made in ten copies and coordinates of survey specified e. Procedure involves writing to third parties
• DPR required one month notice prior to commencement of pipeline inspection or pre-commissioning
• Visual surveillance of pipeline ROW and plant facilities, • Intelligent Pigging of pipeline to determine wall thickness • Material balance on daily basis to determine leakages • Pipelines are buried to guard against vandalization
Department Of Petroleum Resources
OTHER AGENCIES INVOLVED IN PIPELINE MANAGEMENT On receipt of application for PTS or License in respect of any pipeline, DPR forwards 3rd party letters, requesting for objections (if any) to the issuance of the license or permit. The 3rd parties ed are
For Offshore Pipelines: Nigeria Port Authority (NPA), and State government
For Swamp Pipelines: Inland Waterways Authority (NIWA), and State governments
For Land Pipelines: Federal Ministry of Works and Housing (Highway Division), Nigeria Railway corporation and State Governments No objection letters from them are necessary before the grant of the permit or licence. For the OPLL, Draft Notice shall be published in the relevant National and State Newspapers in line with the provision of section 8 of the Oil Pipeline Act CAP 338 Laws of Federal Government of Nigeria 1990. Public hearing must be held to hear objections if any on the date set aside for this purpose. Department Of Petroleum Resources
Oil and Gas Pipeline Regulation 1995 No person granted a licence to construct a new pipeline or replace an existing pipeline shall begin construction work unless he has given the Department written notice of his intention to do so:
The licensee shall, on completion of the construction of the pipeline, give the Department not less than one month notice of its intention to commence inspection and testing of the pipeline. A licensee shall not begin to operate a pipeline unless he has obtained the approval of the Department, and a written emergency plan for implementation in the event of systems failure, accidents or other emergencies is established. Pipeline markers at crossings shall indicate the location of the pipeline and the name of the operating company.
the right of way (ROW) shall be maintained to provide a clear visibility and give reasonable access to the maintenance crew. Any line break, encroachment or dangerous situation detected during regular patrol of the ROW shall be promptly reported to the Department. Department Of Petroleum Resources
Oil and Gas Pipeline Regulation 1995 Cont’d
Internal corrosion in a pipeline shall be monitored by running an intelligent pig or other internal survey instrument through the pipeline at least once in 5 years.
A report of the monitoring survey carried out under the paragraph above shall be sent to the Department.
A licensee who desires to upgrade the maximum operating pressure of his pipeline shall make an application to the Department stating reasons for the upgrade and the service record of the pipeline.
A licensee who desires to discontinue the operation of the pipeline system or its ancillary facilities shall apply to the Department giving at least 3 months notice of his intention to do so.
Where the abandoned pipeline is to be removed, the licensee shall send to the Department the proposed work programme for the removal for approval.
A licensee who desires to resume operations in an abandoned or a discontinued pipeline shall apply to the Department for approval.
Department Of Petroleum Resources
Procedure for Inspection, Testing & Protection of Pipelines
After the construction of a pipeline the Department of Petroleum Resources is expected to be given one-month notice prior to the commencement of inspection or pre-commissioning of the pipeline.
Ensure that initial integrity of a pipeline is established through proper design, material selection and sound construction practices.
Establish a program of condition monitoring and maintenance to ensure that integrity is maintained when pipeline is in operation.
For pipeline integrity protection, the conventional pipe coating, chemical injection and intelligent pigging at regular intervals are specified in the regulations.
Standards that DPR has issued to regulate pipeline related activities include; Oil and Gas Pipeline Regulation as well as Guidelines and Procedure for the construction, operation and Maintenance of Oil and Gas Pipelines and their ancillary Facilities. Department Of Petroleum Resources
Pipeline Integrity Management Plan/Programmes
Cathodic Protection System with Monitoring Strategy
Coating Integrity Survey
Chemical Inhibition and Monitoring Strategy
Smart and Intelligent Pigging on all piggable pipelines
Pressure Testing
None-Destructive Testing
Leak Detection Strategy
Risk Management Tools e.g. Risk Base Inspection etc.
Involvement Of Host Communities as a Strategy to tackle Third Party Damage (Sabotage) incidents on Pipelines
New Technologies that provides information on Cathodic Protection System, Leakages and Disturbances around pipelines etc.
NB:
All pipeline Integrity Management Plan/program will henceforth be witnessed by DPR representatives and a Safety permit issued before grant of Operational Licence. Department Of Petroleum Resources
Penalties for not comply with the Laws and Regulations
Part III Section 7 sub-section (4) of the pipeline ACT CAP 338 states No person other than the holder of a licence shall construct, maintain or operate an oil pipeline.
Every person who acts in contravention of subsection (4) above shall be guilty of an offence and shall be liable on conviction to a term of imprisonment not exceeding two years or to a fine not exceeding one thousand naira or to both and the pipeline and its ancillary installation removed if the Minister refuse to purchase such pipeline.
An offender who is required by the Minister under subsection (6) of this section to have a pipeline or any ancillary installation removed shall make good any damage done to any land by such removal.
Department Of Petroleum Resources
- PENALTIES Cont’d
Part V, section 25 of the pipeline ACT CAP 338 states that Every person who shall willfully hinder or obstruct any person duly authorized from entering upon or taking possession of or using any land in pursuance of the provisions of this Act, or who shall molest, hinder or obstruct such person when in possession of such lands, or shall hinder or obstruct any officer of the sheriff or police officer when executing a writ of possession, shall be liable on summary conviction to a fine of fifty naira or to imprisonment for three months.
Section 27, sub-sections (1) & (2) states If there shall be a breach of any of the or conditions upon which a licence has been granted the Minister may by notice in writing require the holder of the licence to remedy such breach within such period being not less than three months as may be specified in such notice. Otherwise, the licence will be revoked.
Department Of Petroleum Resources
- PENALTIES Cont’d
Where an offence under this Act which has been committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary, or other similar officer of the body corporate, or any person purporting to act in any such capacity, he, as well as the body corporate, shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
A person who contravenes a provision of Oil and Gas Pipeline Regulation 1995 is guilty of an offence and liable on conviction to a fine of up to N500,000 or imprisonment for a term of 6 months or to both such fine and imprisonment.
Department Of Petroleum Resources
Penalties for not comply with the Laws and Regulations
Part V, section 25 of the pipeline ACT CAP 338 states that Every person who shall wilfully hinder or obstruct any person duly authorised from entering upon or taking possession of or using any land in pursuance of the provisions of this Act, or who shall molest, hinder or obstruct such person when in possession of such lands, or shall hinder or obstruct any officer of the sheriff or police officer when executing a writ of possession, shall be liable on summary conviction to a fine of fifty naira or to imprisonment for three months.
Department Of Petroleum Resources
CONCLUSION It is our prayer that at the end of this workshop, will be acquainted with the necessary requirement for processing, construction and operation of Pipeline system
Department Of Petroleum Resources
Department Of Petroleum Resources
THANK YOU FOR YOUR ATTENTI0N Department Of Petroleum Resources
Department Of Petroleum Resources
ORDER OF PRESENTATION
Objective
Concept definition
Types/Applications of Pipelines
Problems Associated with Pipeline Operations in Nigeria
Laws and Regulations Governing Pipeline Operations in Nigeria
Other agencies involved in pipeline management
Penalties for not comply with the Laws and Regulations
CONCLUSION
Department Of Petroleum Resources
OBJECTIVES
To acquaint the participants on the Government
regulations and laws governing the operations of oil and gas pipelines in Nigeria
The interest being to highlight requirements for effective Pipeline Asset Management
Department Of Petroleum Resources
Concept Definition •
DPR (Department of Petroleum Resources) Arm of Government in charge of monitoring and enforcing laws and regulations in the Oil and Gas industry in Nigeria.
•
Pipeline oil pipeline means a conduit for the conveyance of mineral oils, natural gas and any of their derivatives or components, and also any substance (including steam and water) used or intended to be used in the production or refining or conveying of mineral oils, natural gas, and any of their derivatives or components .
•
Laws A rule of conduct or procedure established by custom, agreement, or authority.
•
Regulations A principle, rule, or law designed to control or govern conduct or practice.
Department Of Petroleum Resources
Types/Applications of Pipelines Usually we classify pipelines based on size and usage a) Flow-lines: usually of sizes 6” to 8” diameter. They convey hydrocarbon fluids from wellheads to the inlet manifold of the flow-stations or production platform
b) Trunk-lines:
Usually of sizes 6” to 24” diameter. They transport
produced hydrocarbons from:
1.
Flowstations to storage tanks or terminals
2.
Storage terminals to Refineries
c) Loading Lines: Usually of sizes 30” to 40” diameter. They transport
products from: 1.
Refineries to Depots and Jetties
3.
Jetties to off-take tankers
4.
Intercity pipelines which convey fuel to consumers
Department Of Petroleum Resources
Problems Associated with Pipeline Operations in Nigeria 1.
Pipeline ageing
2.
Pipeline corrosion
3.
Vandalization
4.
Poor measurement habit
5.
Difficult terrain of the Right Of Way (ROW)
6.
No on-line leak detection system
7.
Poor maintenance record
8.
Unavailability of intelligent pigs
9.
Pipeline route being inhabited due to increase urbanization
These problems necessitated the promulgation of Laws and Regulations by DPR to harmonize pipeline operation in Nigeria. Department Of Petroleum Resources
Laws and Regulation Governing Pipeline Operations in Nigeria a) Statutory Requirement for Pipeline laying.
1.
Permit to Survey pipeline routes (PTS)
2.
Oil pipeline Licence (OPLL)
b) Pipeline Acts and Regulations 1. Petroleum Ordinance # 145 of 1956 2. Oil pipeline ACT CAP 338 Laws of the Federation of Nigeria 1990 3. Oil and Gas Pipeline Regulation 1995 4. Mineral Oils and Safety Regulations (MOSR) 1997 5. Guidelines and procedures for the construction, operations and maintenance of oil and gas pipelines and their ancillary facilities.
6. Environmental Guidelines and Standards For the petroleum Industry in Nigeria Department Of Petroleum Resources
Highlights of Laws and Regulations • Regulations
The Oil Pipeline ACT CAP 338 LFN 1990 made provisions for 1. The right of way of the Landowners and those of lease owners 2. Permit to Survey, compensation, rights and obligation of holder of a license 3. Restrictions upon entry in respect of venerated lane 4. Penalty for hindering the taking possession of land etc.
• Permit To Survey •
Mandatory for surveying a route for a proposed pipeline or for surveying a route of an existing pipeline prior to renewal of the pipeline license • Has a two year expiry date • Application fee of N20.00 • Application made in ten copies and route of survey adequately specified •
Procedure involves writing to third parties for consent
Department Of Petroleum Resources
Highlights of Laws and Regulations •
Oil Pipeline License (License to Construct/Operate)
•
Inspection and Testing Pipelines
•
Protection and Maintenance Monitoring
a. b.
Required prior to construction and laying of pipeline Applied for within the validity period of the permit to survey and in line with provision of Part III of the Oil Pipeline Act CAP 338 LFN 1990 c. License fee of N50 d. Application made in ten copies and coordinates of survey specified e. Procedure involves writing to third parties
• DPR required one month notice prior to commencement of pipeline inspection or pre-commissioning
• Visual surveillance of pipeline ROW and plant facilities, • Intelligent Pigging of pipeline to determine wall thickness • Material balance on daily basis to determine leakages • Pipelines are buried to guard against vandalization
Department Of Petroleum Resources
OTHER AGENCIES INVOLVED IN PIPELINE MANAGEMENT On receipt of application for PTS or License in respect of any pipeline, DPR forwards 3rd party letters, requesting for objections (if any) to the issuance of the license or permit. The 3rd parties ed are
For Offshore Pipelines: Nigeria Port Authority (NPA), and State government
For Swamp Pipelines: Inland Waterways Authority (NIWA), and State governments
For Land Pipelines: Federal Ministry of Works and Housing (Highway Division), Nigeria Railway corporation and State Governments No objection letters from them are necessary before the grant of the permit or licence. For the OPLL, Draft Notice shall be published in the relevant National and State Newspapers in line with the provision of section 8 of the Oil Pipeline Act CAP 338 Laws of Federal Government of Nigeria 1990. Public hearing must be held to hear objections if any on the date set aside for this purpose. Department Of Petroleum Resources
Oil and Gas Pipeline Regulation 1995 No person granted a licence to construct a new pipeline or replace an existing pipeline shall begin construction work unless he has given the Department written notice of his intention to do so:
The licensee shall, on completion of the construction of the pipeline, give the Department not less than one month notice of its intention to commence inspection and testing of the pipeline. A licensee shall not begin to operate a pipeline unless he has obtained the approval of the Department, and a written emergency plan for implementation in the event of systems failure, accidents or other emergencies is established. Pipeline markers at crossings shall indicate the location of the pipeline and the name of the operating company.
the right of way (ROW) shall be maintained to provide a clear visibility and give reasonable access to the maintenance crew. Any line break, encroachment or dangerous situation detected during regular patrol of the ROW shall be promptly reported to the Department. Department Of Petroleum Resources
Oil and Gas Pipeline Regulation 1995 Cont’d
Internal corrosion in a pipeline shall be monitored by running an intelligent pig or other internal survey instrument through the pipeline at least once in 5 years.
A report of the monitoring survey carried out under the paragraph above shall be sent to the Department.
A licensee who desires to upgrade the maximum operating pressure of his pipeline shall make an application to the Department stating reasons for the upgrade and the service record of the pipeline.
A licensee who desires to discontinue the operation of the pipeline system or its ancillary facilities shall apply to the Department giving at least 3 months notice of his intention to do so.
Where the abandoned pipeline is to be removed, the licensee shall send to the Department the proposed work programme for the removal for approval.
A licensee who desires to resume operations in an abandoned or a discontinued pipeline shall apply to the Department for approval.
Department Of Petroleum Resources
Procedure for Inspection, Testing & Protection of Pipelines
After the construction of a pipeline the Department of Petroleum Resources is expected to be given one-month notice prior to the commencement of inspection or pre-commissioning of the pipeline.
Ensure that initial integrity of a pipeline is established through proper design, material selection and sound construction practices.
Establish a program of condition monitoring and maintenance to ensure that integrity is maintained when pipeline is in operation.
For pipeline integrity protection, the conventional pipe coating, chemical injection and intelligent pigging at regular intervals are specified in the regulations.
Standards that DPR has issued to regulate pipeline related activities include; Oil and Gas Pipeline Regulation as well as Guidelines and Procedure for the construction, operation and Maintenance of Oil and Gas Pipelines and their ancillary Facilities. Department Of Petroleum Resources
Pipeline Integrity Management Plan/Programmes
Cathodic Protection System with Monitoring Strategy
Coating Integrity Survey
Chemical Inhibition and Monitoring Strategy
Smart and Intelligent Pigging on all piggable pipelines
Pressure Testing
None-Destructive Testing
Leak Detection Strategy
Risk Management Tools e.g. Risk Base Inspection etc.
Involvement Of Host Communities as a Strategy to tackle Third Party Damage (Sabotage) incidents on Pipelines
New Technologies that provides information on Cathodic Protection System, Leakages and Disturbances around pipelines etc.
NB:
All pipeline Integrity Management Plan/program will henceforth be witnessed by DPR representatives and a Safety permit issued before grant of Operational Licence. Department Of Petroleum Resources
Penalties for not comply with the Laws and Regulations
Part III Section 7 sub-section (4) of the pipeline ACT CAP 338 states No person other than the holder of a licence shall construct, maintain or operate an oil pipeline.
Every person who acts in contravention of subsection (4) above shall be guilty of an offence and shall be liable on conviction to a term of imprisonment not exceeding two years or to a fine not exceeding one thousand naira or to both and the pipeline and its ancillary installation removed if the Minister refuse to purchase such pipeline.
An offender who is required by the Minister under subsection (6) of this section to have a pipeline or any ancillary installation removed shall make good any damage done to any land by such removal.
Department Of Petroleum Resources
- PENALTIES Cont’d
Part V, section 25 of the pipeline ACT CAP 338 states that Every person who shall willfully hinder or obstruct any person duly authorized from entering upon or taking possession of or using any land in pursuance of the provisions of this Act, or who shall molest, hinder or obstruct such person when in possession of such lands, or shall hinder or obstruct any officer of the sheriff or police officer when executing a writ of possession, shall be liable on summary conviction to a fine of fifty naira or to imprisonment for three months.
Section 27, sub-sections (1) & (2) states If there shall be a breach of any of the or conditions upon which a licence has been granted the Minister may by notice in writing require the holder of the licence to remedy such breach within such period being not less than three months as may be specified in such notice. Otherwise, the licence will be revoked.
Department Of Petroleum Resources
- PENALTIES Cont’d
Where an offence under this Act which has been committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary, or other similar officer of the body corporate, or any person purporting to act in any such capacity, he, as well as the body corporate, shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
A person who contravenes a provision of Oil and Gas Pipeline Regulation 1995 is guilty of an offence and liable on conviction to a fine of up to N500,000 or imprisonment for a term of 6 months or to both such fine and imprisonment.
Department Of Petroleum Resources
Penalties for not comply with the Laws and Regulations
Part V, section 25 of the pipeline ACT CAP 338 states that Every person who shall wilfully hinder or obstruct any person duly authorised from entering upon or taking possession of or using any land in pursuance of the provisions of this Act, or who shall molest, hinder or obstruct such person when in possession of such lands, or shall hinder or obstruct any officer of the sheriff or police officer when executing a writ of possession, shall be liable on summary conviction to a fine of fifty naira or to imprisonment for three months.
Department Of Petroleum Resources
CONCLUSION It is our prayer that at the end of this workshop, will be acquainted with the necessary requirement for processing, construction and operation of Pipeline system
Department Of Petroleum Resources
Department Of Petroleum Resources
THANK YOU FOR YOUR ATTENTI0N Department Of Petroleum Resources
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