Shell Exploration & Production

Brent Facilities Decommissioning

Regulatory Framework & Option Selection Process

Copyright: Shell Exploration & Production Ltd.

January 2007

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Regulatory Framework
Decommissioning Regulation
International IMO Guidelines. Regional OSPAR 98/3. UK Petroleum Act 1998 enabling Act requires submission of detailed Programme for approval. DTI Guidelines (2006)provides framework.

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Regulatory Framework
Installations
OSPAR 98/3 Presumption of Total Removal Waste Hierarchy Re-Use/ Recycle/ Dispose Right to derogate for certain categories by comparative assessment: GBS Steel Jacket > 10,000 tonne Footings Damage

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Regulatory Framework - Experience

Installation Status
Small/Med Experience: Leman Odin Froy Some larger Unique: Spar Maureen Hutton tlp Ekofisk: First Concrete Tank Derogation accepted Execution Ongoing 15 platforms to be removed (<10,000tn) Frigg: Concrete GBS derogation accepted - 4 concrete platforms. 3 steel jackets to be removed (<10,000tn) BP NW Hutton: First steel derogation (>10,000tn) approval to leave lower section

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Regulatory Framework - Experience

- Ekofisk Concrete Tank Derogation Norwegian Sector (15 Steel Installations Fully Removed) - NW Hutton Steel Jacket Derogation UK Sector

- Frigg Area 4 Concrete Derogation Norwegian/UK Sector (3 Steel Installations Removed)

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Regulatory Framework
Historic Cuttings Piles
OSPAR Recommendation 2006 UK/Norway issue Proactive UKOOA R&D programme in conjunction OLF Options
natural attenuation/ cover/ re-inject?/ return to shore & landfill

Key is good characterisation need to survey and understand behaviour

hydrocarbon leaching and persistence key parameters

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Regulatory Framework
Pipelines
DTI Guidance/ Approval Case by Case Comparative Assessment balance env/safety/cost/feasibility Criteria cleanliness/ stability/ burial/ other users

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Regulatory Framework - Experience

Pipeline Status
Varied but limited outcomes Some left; Some lifted where reel-able or short lengths Trenched or buried more obvious leave candidates Consider as Future Assets?

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Regulatory Framework
Wells
Not part of Decommissioning Programmes Approved separately National Guidance by UKOOA accepted by regulators as best practice

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Regulatory Framework Option Selection

Comparative Assessment A Balanced Judgement

TECHNICAL Feasibility Complexity SOCIAL Sea Users Community ENVIRONMENTAL Air Sea Land

ECONOMIC Cost/Benefit Uncertainty

SAFETY Risk Assessment Implementation

Reputation

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Option Selection Process

OPEN TRANSPARENT INCLUSIVE INTEGRATED

Current Status

Recommend Option

Plan Approved

Challenge & Assurance on Robustness of Technical Basis

IRG

IRG DTI Approval

Regular Engagement opportunity to listen/share. Identify Issues Inform decisions

Ongoing

Stakeholder

Engagement

Technical Development and Stakeholder Engagement in Parallel

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Independent Review Group

IRGan Independent group of experts
Role appreciated by stakeholders on previous projects Independent review of technical scope and conclusions, to provide assurance to technical basis of decisions Individuals invited to participate by Prof John Shepherd (Chair) Independent experts international reputations in key fields of scientific and technical activity Retain freedom to publish findings

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