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API PUBL 761 Model Risk Management Plan Guidance for Exploration and Production (E&P) Facilities


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API PUBL 761 Document Information:

Title
Model Risk Management Plan Guidance for Exploration and Production (E&P) Facilities

American Petroleum Institute

Publication Date:
Feb 1, 2001

Scope:

PURPOSE AND SCOPE

The Environmental Protection Agency's (EPA's) risk management program (RMP) rule (40 CFR Part 68) requires affected facilities to implement a risk management program (RMP) and develop a risk management plan (RMPlan). An RMP consists of three components: hazard assessment, prevention program, and emergency response program. Implementing these activities requires a facility to establish management systems to execute the necessary work to comply with the rule.

The RMPlan, on the other hand, is simply a description of the RMP activities carried out in the facility. A facility must submit its RMPlan to a central location from which the RMPlan will be available to regulators, local emergency planners, and the public.

The purpose of this Guide is to provide some information on how an oil and gas exploration and production (E&P) facility can prepare an RMPlan. A "model" or an example of an RMPlan executive summary is provided in Appendix C. The main sections of the Guide provide suggestions on how E&P facilities can perform some of the underlying work necessary to comply with the RPM rule; some of this information must be summarized in the RMPlan.

This Guide presumes that E&P facilities are in compliance with relevant codes, standards, and regulations. Thus, the Guide focuses on areas of work required by the RMP rule that extend beyond existing compliance activities. For example, the Guide provides detailed information on how to perform hazard assessments. On the other hand, the Guide does not go into great detail on how to implement a process safety management (PSM) program. Rather, it focuses on strategies for summarizing the results of the prevention program activities for use in the RMPlan.

Finally, this Guide is not a standard that must be followed by everyone. Site-specific needs may demand an RMPlan development approach that differs from the information provided in this Guide. However, it is hoped that the ideas in this Guide will be generally useful to all E&P facility operators so that the RMPlans can be prepared in an efficient way that reduces compliance costs and promotes consistency and understanding.

Note: Section 112(r)(1) of the CAA entitled "Purpose and General Duty" (often referred to as the general duty clause) states the following:

It shall be the objective of the regulations and programs authorized under this subsection to prevent the accidental release and to minimize the consequences of any such release of any substance listed... [in Subpart F of 40 CFR 68]..or any other extremely hazardous substance. The owners and operators of stationary sources producing, processing, handling, or storing such substances have a general duty in the same manner and to the same extent as Section 654 of Title 29 to identify hazards which may result from such releases using appropriate hazard assessment techniques, to design and maintain a safe facility taking such steps as are necessary to prevent releases, and to minimize the consequences of accidental releases which do occur.

This "general duty clause" has been in effect since the 1990 CAA Amendments were enacted. This Guide discusses compliance with the RMP rule only, and not the general duty clause of the CAA. Section 113(b) of the CAA allows EPA to assess penalties of up to $27,500 per day for each violation. Companies should consider using guidance provided in Guidance for Implementation of the General Duty Clause Clean Air Act Section 112(r)(1), published by EPA, and their own judgment to determine how best to comply with the general duty clause.

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