Mining & Resources

Petroleum extraction: compliance checklist

Use this checklist to confirm your petroleum extraction business (SIC division 06) meets its obligations. Work through the universal workplace items, then the licensing, permits, major-hazard duties and upstream taxation. If you answer no to any item that applies to you, follow the linked guide before you proceed.

UK-wide
On this page
UK-wide

Related guides in Compliance & Legal

Use this checklist to confirm your business meets its obligations. Work through each item and answer yes or no. Section 1 covers your workplace duties and employing people; Section 2 covers the petroleum production licence, site-specific permits, major-hazard duties and upstream taxation. If you answer no to an item that applies to you, follow the linked guide before you proceed.

Workplace health and safety is enforced by the Health and Safety Executive (HSE) in Great Britain and by HSENI in Northern Ireland. HSE is also the competent authority for the offshore safety-case regime (jointly with the Secretary of State) and for COMAH (jointly with the relevant environment agency — the Environment Agency in England, Natural Resources Wales in Wales, SEPA in Scotland).

Section 1 — Workplace duties and employing people

These duties apply to every petroleum extraction operation. Confirm each one.

  1. 1

    Have you written your risk assessments and put safe systems of work in place?

    Your general duty under the Health and Safety at Work etc. Act 1974 is to ensure, so far as is reasonably practicable, the health, safety and welfare of your people and others affected by your work. Risk-assess every activity and put safe systems of work, training and supervision in place. If not, follow "Set up and run a safe petroleum extraction operation".

  2. 2

    Have you assessed and controlled hazardous substances under COSHH?

    COSHH requires control of hydrogen sulphide, benzene, mercury, NORM, drilling chemicals and other substances hazardous to health, with health surveillance and exposure monitoring where required.

  3. 3

    Have you assessed fire and explosion risk under DSEAR?

    DSEAR requires assessment and control of fire and explosion risk from flammable hydrocarbons and explosive atmospheres at every well, separator, processing and storage operation, with hazardous-area classification and ATEX-compliant equipment.

  4. 4

    Is your plant safe under PUWER?

    Keep drilling rigs, wellheads, pumps, separators, compressors and pressure systems maintained, guarded and used by trained operators, with LOLER for lifting equipment and PSSR for pressure systems.

  5. 5

    Have you managed manual handling and fire safety?

    Reduce hazardous handling risks; meet fire safety duties for your premises (the Fire Safety Order for offices and site buildings; process fire risk is regulated through DSEAR and the safety-case regime).

  6. 6

    Do you hold employers' liability insurance and meet your equality and data duties?

    Hold at least £5 million of cover once you employ anyone; do not discriminate under the Equality Act 2010 (or separate NI equality law enforced by the Equality Commission for Northern Ireland); and comply with the UK GDPR and Data Protection Act 2018, registering with the ICO unless exempt.

Section 2 — Licensing, permits, major-hazard duties and taxation

Confirm the gating requirements and site-specific duties that apply to your operation.

  1. 1

    Do you hold a petroleum production licence from the NSTA?

    Without a licence under section 3 of the Petroleum Act 1998 you cannot lawfully search, bore for or get petroleum. If not, follow "Get the licences, permits and meet major-hazard duties for petroleum extraction".

  2. 2

    If you operate offshore installations: do you have an accepted safety case?

    Operators and owners of offshore oil and gas installations must prepare and have accepted a safety case demonstrating control of major-accident hazards.

  3. 3

    If you operate onshore establishments holding qualifying inventories: are you meeting your COMAH duties?

    Lower-tier or upper-tier duties depending on Schedule 1 thresholds — notification, major accident prevention policy, safety report and emergency plans for upper-tier.

  4. 4

    Do you hold the environmental and oil-pollution permits for your sites?

    Onshore installations require an environmental permit from the Environment Agency (NRW in Wales); offshore installations require an OPRED oil-pollution permit.

  5. 5

    Are you registered for upstream petroleum taxation?

    Ring-fence corporation tax, supplementary charge and Energy Profits Levy — HMRC-administered, applying to ring-fenced upstream profits.

If you answered no to anything

Work through the guide linked in that item. The two task guides — the workplace spine and the licensing and permits guide — set out what to do. Start from the router if you are not sure which apply to you.

Official sources

Authoritative petroleum extraction regulation guidance.