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Practical Lessons from Major Accidents
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Practical Lessons Bulletin
2010 Calendar
Safety Cases Coming to Gulf Coast Drilling
Bulletin Sender Change
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Volume 2, Number 5
Greetings!

The intention of our Practical Lessons Bulletins always has been to provide valuable information to readers.
 
This month's topic is safety cases. They've been used globally to demonstrate to drilling owners, operators, and regulators that facilities are, or will be, safe to operate. Now safety cases are coming to the U.S. This prospect has launched conversations and debates about the subject, in some of which ERM has been actively involved (see more below).
 
As always, we value any feedback.
Practical Lessons From Major Accidents
Image: School busRAF Nimrod XV230 Spy Plane 
During a reconnaissance flight over Afghanistan September 2, 2006, the RAF Nimrod XV230 had a mid-air fire; that aircraft was lost and all 14 on board died. In 2002, safety cases became mandatory for RAF military aircraft, and the Nimrod had one. But safety cases are not infallible.

Read more.
IRC Calendar
Image: Calendar2010 Education Events
Watch for an announcement soon about a July 22 seminar to learn about safety cases, what they are, and their application in oil and gas drilling operations.
 
Also, something "great" is coming in the next month or so. Watch future bulletins for details.

Your feedback about our education events is always appreciated and helps us continually improve.
 
Participation in Deepwater Technical Symposium
 
The Environmental Resources Management (ERM) will be on the technical program and will have exhibit space (booth number 38) at the 14th Annual Gulf of Mexico Deepwater Technical Symposium in New Orleans, August 18-19, 2010. We hope to see you there.
 
Safety Cases as Gulf Coast Drilling Requirements

US DOI Recommendations
The U.S. Department of the Interior issued a report and recommendations May 27, 2010, for ways to increase safety in Gulf of Mexico deepwater drilling: Increased Safety Measures for Energy Development on the Outer Continental Shelf. The recommendations comprise five primary areas:
  • Blowout preventer (BOP) equipment and emergency systems 
  • New safety equipment requirements and operating procedures 
  • Well-control guidelines and fluid displacement procedures
  • Well design and construction - Casing and cementing
  • Increased enforcement of existing safety regulations and procedures

The last area includes adoption of safety case requirements. Safety cases have long been used by many other nations. A common guideline followed (though others exist) is that of the International Assocation of Drilling Contractors (IADC). The IADC has two sets of safety case guidelines, one for offshore and one for onshore drilling. 

From the IADC

A town hall meeting this morning (July 7, 2010) in Houston, the IADC hosted a panel of Texas congressional leaders and energy professionals for an open discussion about the Gulf of Mexico (GOM) drilling moratorium. More than 200 industry representatives attended.

 

"This is as close to (an economic 9-11) as we'll see in our lifetime," Congressman Kevin Brady said of the moratorium. Brady (R, Texas) also pointed out contradictory recommendations, such as push drilling 75 miles from the coast of the U.S. (to deep water) and another that prohibits deepwater drilling. Some industry response is to move their rigs to other countries -- rigs, jobs, headquarters, support industries.

 
Louis Raspino, Chairman of the IADC and CEO and President of Pride International projected an industry-wide job loss of 150,000. In Michigan, 41,000 jobs are tied to the industry, according to IADC President Lee Hunt, driving home the point that the energy industry is not limited to the Gulf Coast. The panel hinted at the potential repercussions to the financial welfare of other, non-energy-related, industries. 
 
The Next 3 Weeks Are Critical
Brady said, "Congress is not going home in August for summer break without doing something on this." All panelists urged contact with legislators to support lifting the drilling moratorium and supporting safe drilling.
 
The IADC website provides names and addresses of most legislators and sample letters as well as news updates and IADC activity summaries.
 
U.S. Safety Case

The week of July 4, IADC will meet to begin developing U.S. Guidance on HSE Case (Safety Case) Bridging Documents. 

The Bureau of Ocean Energy (BOE) (formerly Minerals Management Services [MMS]) is expected to include this in an Interim Final Rule issued on or about September 27. Proposed legislation that has been introduced in the Congress would include a statutory mandate for a Safety Case.

 

The Joint Industry Task Force likely will establish a working group to develop guidelines on the Well Construction Interfacing Document (WCID). To properly frame the portion of the WCID that would address bridging arrangements, it is important that IADC develop guidelines for HSE Case bridging arrangements for U.S. operations.
 
We at the ERM Risk Practice Group will keep you informed as developments occur.
Bulletin Sender Changes to ERM

Image: ERM logoERM Acquired IRC April 1, 2010
Since the April 1 acquisition of IRC by Environmental Resources Management (ERM), the sender of this bulletin has remained IRC. Effective with the next bulletin, however, it will be from the ERM North American Risk Practice group. The same people are behind it with the same educational and informational intentions. We hope you'll remain a reader and invite your colleagues to join our mailing list.
 
If you have any comments or suggestions, please let us know.
The ERM North American Risk Practice provides practical answers to tough risk and safety issues. We promise remarkable delivery, practical answers, and to always be responsive.

We are based in Houston, although ERM has 137 offices worldwide.

Our speaking engagements receive outstanding feedback.
 
Sincerely,
MEB
Morris Burch, Partner
North American Risk Practice
Environmental Resources Management Southwest, Inc.
 
15810 Park Ten Place, Suite 300
Houston  TX  77084
telephone: 281.600.1000

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