In the UK, there is at present no legislation that expressly regulates CO2 transport by pipeline.
Until such legal regulation is introduced, the Health and Safety Executive (HSE) and the Department of Energy and Climate Change (DECC) have suggested that, for the purposes of CCS activities and for the UK CCS Demonstration Competition respectively, project developers should consider CO2 as though it were classified as a 'dangerous substance' or a 'dangerous fluid'. That means that CO2 can be treated as one of the dangerous fluids covered by the 1996 Pipeline Safety Regulations (PSR) or one of the dangerous substances covered by the 1999 Control of Major Accident Hazards (COMAH) regulations (see details below). For offshore installations, developers are also required to comply with all relevant offshore regulations as if they were applicable, in order to fulfil the requirements of the Health and Safety at Work etc. Act 1974.
However, other legal instruments regulating oil and gas pipelines could be used as the basis for regulating pipelines transporting CO2 in the future. They address permitting aspects, construction and maintenance standards, and environmental impact, as well as health and safety requirements.
What follows is an overview of the key pipeline legislation relevant to a CO2 pipeline network in the UK.
This Act regulates the construction of both national ('cross-country') and local pipelines. It covers all pipelines in Great Britain (except for those of public gas transporters, water companies and the government, which are regulated under separate legislation) transporting 'any thing other than air, water, water vapour or steam'. As a result, it would be applicable to CO2 streams.
In order to install a national pipeline (more than 16.093 km (10 miles) in length), a Pipeline Construction Authorisation (PCA) by the Secretary of State for Business Innovation and Skills (previously Trade and Industry) is required under s. 1 of the Pipelines Act 1962. This includes planning permission. Construction of local pipelines (up to 16.093 km in length) only requires local authority planning permission.
Neither of these authorisations in itself confers a right to carry out the pipeline construction work. That depends on the operator obtaining the necessary rights from landowners or, alternatively, obtaining a compulsory purchase or rights order subject to a Parliamentary process.
In 1999, the Deregulation (Pipelines) Order amended this Act and introduced a written representation procedure to address objections to a PCA application, without recourse to a public inquiry or hearing, subject to the agreement of both the objectors and the applicant. Applications for a PCA may also be subject to an Environmental Impact Assessment under the Pipeline Works (Environmental Impact Assessment) Regulations 2000 (see below).
Under this Act, pipeline construction on the UK continental shelf that might result in obstruction or danger to navigation requires the consent ('consent to locate') of the Secretary of State for Energy and Climate Change (previously of the Secretary of State for Transport). The primary concern here is with the pipeline works, rather than the pipeline itself once it is laid. However, operators are advised to include in an application all related facilities, including more sensitive surface elements, rather than seeking separate authorisation for each part.
Under this Act, construction and operation of pipelines in UK territorial waters require a Pipeline Works Authorisation (PWA) from the Secretary of State for Energy and Climate Change. This authorisation may include specific conditions for pipeline routes, construction, and size. The Act covers 'a pipe or system of pipes (excluding a drain or sewer) for the conveyance of any thing, together with any apparatus and works associated with such a pipe or system'. This definition appears to include CO2 pipelines. A consent to locate under the Coast Protection Act 1949 (see above) is also issued with the Pipeline Works Authorisation.
The consent of the Crown Estate is necessary for all oil and gas pipelines that cross the seabed within UK territorial waters (12 nautical miles of the coastline). This consent requirement is likely to include CO2 pipelines as well. The Crown Estate must also be informed of pipelines transiting or seeking to transit waters that fall within the 200 nautical mile limit, so that it can review possible effects upon other uses, such as mineral rights, marine aggregates and offshore wind farms.
Under the terms of the licences issued by the Crown Estate, operators are liable for all structures crossing the seabed and responsible for the removal of cables and pipelines that are no longer in use (unless it is decided that it would be environmentally preferable to leave them in place).
Crown Estate consent is also required before undertaking investigative survey works on the foreshore, in inshore waters and within territorial waters.
These Regulations were adopted under the 1974 Health and Safety at Work etc. Act. They provide a single legislative framework to cover design, construction, operation, maintenance and decommissioning requirements in order to ensure the health, safety and integrity of both onshore and offshore pipelines in the UK (to the limits of the UK continental shelf). They impose general duties on all pipeline operators and additional duties on operators of 'major accident hazard pipelines' (MAHPs) (Part III) , including those carrying dangerous fluids. As mentioned above, the HSE and DECC have proposed that CO2 be treated as if it were included in this latter category. During 2010, the HSE conducted a public consultation on amendments to the PSR 1996, one of which would add CO2 to the list of dangerous fluids and, theoretically, extend the additional major accident hazard duties to CO2 pipelines. This consultation showed there was general agreement amongst stakeholders with this proposal. However, the HSE has decided that it is still too early in the process of developing CCS to legislate in the area of CO2 pipelines and has postponed this amendment. Until such an amendment is adopted, CO2 remains outside the scope of Part III of PSR.
At present, PSR are only applicable to CO2 pipelines in the limited framework of the current UK CCS demonstration projects.
Under these regulations, the operator and the owner of an installed pressure system, including onshore pipelines, must demonstrate that the system is safe under specified levels of pressure and temperature. An installed pressure system is defined as a system, such as a pipeline, which contains a 'relevant fluid', which is any fluid, such as compressed air or a liquefied gas, at a pressure of 0.5 bar above atmospheric. In order to operate, the system has to conform to a 'written scheme of examination', which must be adopted by the operator according to the regulations. All subsequent operations must be constantly monitored in accordance with that scheme. This document must include all safety information about the system.
These regulations are likely to apply to CO2 pipelines.
In principle, operators of onshore pipelines requiring a PCA under the Pipelines Act 1962 (see section above) must submit an environmental statement under these Regulations in connection with their 'application for a pipeline construction authorisation in respect of relevant pipeline works' (or 'EIA application') (s. 3(1)). Where the Secretary of State for Business and Innovation (BIS) is satisfied that the carrying out of the relevant pipeline works 'is not likely to have a significant effect on the environment', he can give a direction providing that the EIA application need not be accompanied by an environmental statement. Such a direction cannot be given (a) for a pipeline of over 40 km in length or 800 mm in diameter transporting CO2 streams for the purposes of geological storage, or (b) where another EEA state has asked to participate in the EIA procedure.
At present, these regulations do not expressly cover CCS pipelines but are likely to be amended so that they do so.
These Regulations implement the EU Seveso II Directive (Council Directive 96/82/EC). They apply mainly to the chemical industry, but also to some storage activities, explosives and nuclear sites, and other industries where threshold quantities of dangerous substances identified in the Regulations are stored. They are enforced by the HSE, the Environment Agency (England and Wales) and the Scottish Environment Agency (SEPA) in Scotland.
At present, they do not apply to CO2 transported for the purpose of CCS as it is not a named dangerous substance under the Seveso II Directive. This aspect might be considered during the ongoing revision process of the Seveso II Directive. In 2007, the HSE raised the issue of whether it should be included. In 2008, it recommended that participants in the UK CCS demonstration competition treat CO2 as if it were a 'dangerous substance' under these Regulations. However, this would be limited to the CCS demonstration competition.
Health and Safety Executive - Interim Guidance on conveying CO2 in pipelines in connection with carbon capture, storage and sequestration projects, August 2008
Health and Safety Executive - Pipeline design codes and standards for use in UK CO2 storage and sequestration projects, February 2008