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European Parliament gives tough offshore drilling recommendations

https://www.chemnet.com   Sep 14,2011 Platts
The European Parliament Tuesday passed a resolution saying the development of new oil and gas fields in European seas should only be allowed if the operator has prepared an adequate emergency plan and has sufficient funds to repair possible damage to the environment.

Site-specific plans for all drilling, which the relevant member state would have to approve before any operation begins, would better protect the environment, the resolution says.

The resolution has no legal standing -- it is Parliament's attempt to influence new draft legislation to be tabled by the European Commission this fall.

"These emergency plans should identify potential hazards, assess pollution sources and effects and outline a response strategy in the event of an accident," it said.

The Parliament urged the commission to consider its views given the seriousness of the issue after the Macondo oil spill in the US Gulf of Mexico.

"Every site, every operation should be assessed for its specific risk and informed regulators should only allow drilling to occur if they are comfortable that the risks of that site can be and are being managed and this should be the case in the Arctic and indeed in every sea area," said the resolution's rapporteur Vicky Ford.

The resolution also calls for a provision on financial liability requiring all oil and gas operators to show in the licensing procedure that they have sufficient funds to repair any harm done to the environment as a result of their activities.

The Parliament also proposed that whistleblowers be protected, "enabling employees to declare any security breaches or risks anonymously, without fear of harassment."

The resolution was approved with 602 votes in favor, 64 against and 13 abstentions.

The resolution is Parliament's response to a commission consultation paper issued last October in the wake of the Macondo disaster.

The Greens in the European Parliament welcomed aspects of the resolution, but argued it did not go far enough.

"We welcome the proposals to clarify the full liability of the responsible firms in case of accidents, the need for mandatory insurance and to develop emergency plans," the party said in a statement.

"This would clearly be a breakthrough at EU-level. However, overall the report falls short of responding to the cross-border risks posed by offshore exploration," it said.

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