Forthcoming Changes in Regulations of Petroleum Industries

To All Concerned OIL Executives,

Dear all,

This is to bring to your kind notice about the forthcoming changes going
to happen soon in the regulations of Oil & Gas Industries, for which we all must gear
up accordingly, in order to meet our operational requirements:

2.0) Transfer of Work from PESO to OISD : Whatever Explosive Licenses

required under Petroleum Rules-1976 ( Excluding Gas), are presently under
process of getting these transferred under administrative control of OISD (Oil
Industry Safety Directorate), which were earlier issued by the Chief Controller
of Explosives, now known as PESO (Petroleum & Explosive Safety Organization).
The Transfer formalities will be completed by 31st March, 2014, as
directed by the Secretary, MoPNG to OISD & PESO, in the 30th Safety Council
Meeting of OISD, held on 4th October, 2013.

2.1) Here, we would like to draw kind attention of all the concerned
installations of OIL, Requiring Re-newel/Issuance of Explosive License(s) –
Please ensure that the compliances of the OISD‟s External Safety Audit
Observation points (ESA) are given due weightages; Failing which, the
Re-newel of Explosive License may not be considered by OISD.
2.2) In this context we would like to mention about the directives from the
MoPNG/OISD, in regards of the recommendations pertaining to Hazira
Fire incident- where all the Petroleum Industries are directed to report
monthly compliances status in a prescribed format, containing 20 issues,
out of which, item no (9.19) , highlights the compliances of OISD‟s ESA
recommendations for Re-newal of Explosive License, as quoted below:
“Compliance status of OISD’s last ESA Recommendations must be
attached with the Application, while Renewal of PESO Licenses”

3.0) Statutory Status for OISD under proposed ‘Petroleum & Natural Gas Bill-2013’:
Secretary, MoPNG, advised OISD, in the 30th Safety Council meeting, to submit
the DRAFT of the ‘Petroleum & Natural Gas Bill-2013’ along with COS,
within 15 days, for which the preparatory works, was started by OISD wef
30.4.13, on advice of MoPNG.
 3.1) It may please be noted that the above is in line with the
recommendations made by the Parliamentary Standing Committee of
Petroleum & Natural Gas on Safety of Oil Installation, in its 12th
Report, which was placed in Lok Sabha & Rajya Sabha on 22.5.12.

3.2) Standing Committee highlighted followings in its 12th Report:

i) Legislation to be made for bringing all the Oil & Gas Industries
under one Umbrella of MoPNG, in order to ensure the safety
aspects of the industry. Presently there are multiplicities of
Legislations (9 Legislations, at present), which has made the
enforcement, process difficult.
The committee also pointed out the need of updating the old
legislations viz.: Explosive Act-1984, Petroleum Act-1934, Oil
Mines Act-1952 and Petroleum & Natural Gas Rules-1959 under
IRDA act 1939 etc.
ii) Under Recommendation No (3) : It highlighted that Oil Industries
are presently administrated by
a) OISD : Technical Directorate under MoPNG ,who should be
made Nodal Agency to formulate/Monitor & Enforce OISD
Standards & other applicable petroleum Laws
b) PESO : Under Ministry of Commerce & Industries
c) DGMS : Under Ministry of Labor & Employment :MoPNG to take
action for Transferring the responsibilities of DGMS to OISD by
making a new Petroleum Rules
iii) Under Recommendation No (4), the committee suggested that
MoPNG should confer Statutory Status to OISD, as ESA
recommendations of OISD are not implemented for years
together, which need to be penalized. OISD should be conferred
Legal Authority for taking Penal Action against such non-
compliances thereof, than acting as a mere recommendatory
body as of now
4.0) Recommendations after the Hazira Fire Incident
In line with M B Lal Committee‟s recommendations ,after the Jaipur Fire,
MoPNG has advised all Oil & Gas industries, vide its DO dated 6th March‟13, to
comply followings, consequence upon the Fire Incident that took place on 5th
Jan‟13 at IOCL‟s Hazira Terminal, Surat:
i) There should be a Single Explosive License for all facilities located inside
the same boundary
ii) Use of “ATC” foam to be introduced in place of “AFFF” foam
iii) Scenario specific DMP (Disaster Management Plan) must be in place
 iv) Use of On-line Work Permit System to be introduced (OISD-105) & copy
to be forwarded to the Safety Officer, prior to start of work
v) CCTV camera installed, must have night vision facility also
vi) KRA of all officers must be completed by 1st quarter of the year
vii) Tool Box Meeting to be ensured with the Contractor‟s personnel, prior to
starting of the job in hazardous areas
viii) Entry in Hazardous locations to be frisked through Biometric/ Photo
Identity Card, Multi zone door frame metal detectors & hand held metal
detectors – The same should also be linked with the „SAP‟ system
ix) Fire Station/ Fire Pump to be located at least 60 mtr away from the
source of Hazards (OISD-118)
x) Tanks not meeting the inter distance spacing of minimum 10 mtr (OISD-
118), should be provided with additional Fixed Sprinkler System & fixed/
semi fixed Foam system as per provision of extent OISD-117
xi) Single Gate pass Book to be maintained with pre-printed numbers &
Gate Pass to be issued only when written request is made by the vendor
xii) Monthly MIS report for the Projects should include- ESA/MDSA
recommendations, Progress Status, shortfall of safety equpt etc.
xiii) Dedicated Safety Officer can‟t be entrusted with other routine jobs

It has been advised to furnish Monthly compliance status by 7th of every month, till
100% compliances of the above referred issues.

5.0) Fit for Purpose Tests for the On-land Non-Pigable Pipelines, which are
more than 10 years old as per guidelines of OISD-GDN:233
All non Pigable Pipelines, viz: Long distance Pipelines in Fields / Production
Pipeline/ Shut-in Pipeline/ Gas Lifting Pipeline /Water Source Pipeline / Water
Disposal Pipeline /Water Injection Pipeline/ Non-operational Pipeline etc
are to be tested for their Fit for Purpose certifications viz :
i) Identify each of the Work Centre for the non-pigable Pipelines and make
a data bank viz.: Diameter of the Pipeline, Thickness, Length, Rating of
the Pipeline, Type of coatings, Service of the Line ( Oil/Gas/ Water
Injection etc), Flow Rate, Operating Pressure (max & min), Leak history,
ground route profiles with elevations, present condition of the line etc
ii) Hydro Testing of the Pipelines, having previous leak history
iii) Pipeline Survey along with Ultrasonic Thickness Test & Metal Loss study
iv) Coating Tests, for required cases
v) Soil Resistivity Test of the areas
vi) Corrosion Monitoring Data capturing
vii) Introduction of Periodic ROW/ROU Patrolling System
OISD has been persuading for the same since 28.11.11, for compliances as per OISD Standard:
GDN-233, as these are identified as the causes for maximum number of accidents in the
industry, because of least attention given to these Pipelines.
6.0) Increase in Number of Awards for National Safety Awards (Mines)
It has been proposed to increase the number of Awards for Oil Mines, for the
years 2013 onwards, against the existing two categories viz: Longest
Accident Free Period (LAFP) & Lowest Injury Frequency Rate per Lakh
Man shifts (LIFR-M), by introducing one more category of Award, on the basis
of Production rates/ Drilling Meterages, which is likely to be finalized by end of
this year.

6.1) The proposed Awards under NSA(Mines) for Oil Mines is likely to be as
follows:
i) Unit of evaluation of „Lowest Injury Frequency Rate per Lakh Man
Shifts (LIFR-M)‟ is proposed to change to „ Per Million Man Hours‟,
as this unit being uniformly followed by the all petroleum
industries
ii) „Longest Accident Free Period (LAFP)‟ is proposed to bifurcate on
the basis of Production rates of
a) Mines, producing more than 20,000 Barrel of oil or oil equivalent gas
per day and
b) Mines, producing less than 20,000 Barrel of oil or oil equivalent gas
per day

The proposal for increasing the number of Awards for Oil Mines was initiated by
The Director (Operations), OIL, who happened to be a member of the sub
Committee of the NSA (Mines) Committee, representing the Oil & Gas industries

THIS IS FOR YOUR KIND PERUSAL PLEASE