Safety and Environmental Project: Pertamina Petroleum and Energy Ltd - Case Study Example

Running Header: Safety and Environmental Project Student’s Name: Instructor’s Name: Course Code: Date of Submission: Table of Contents Table of Contents 2 Introduction 3 Industry overview 3 Environmental Issues 4 Environmental control methods, procedures, and programs 4 Environmental Statutes and Regulations/ Environmental Laws and Organizations 5 Roles and Responsibilities 7 Ensuring Firm’s Staff Follow Environmental Regulations 8 Audit Program 8 Plant’s Hazardous Materials 9 Dealing with Government Officials 9 Staff Engagement and Challenges 9 Ethical and Professional Dilemmas 10 Conclusion 11 Appendix 13 Safety and Environmental Project Introduction Safety and environment compliance has been a major aspect in almost all firms and countries throughout the world. Pertamina Petroleum & Energy Ltd is such one firm that has put in place various programs to ensure it complies with the safety and environmental programs. At Pertamina Petroleum & Energy Ltd, there is increased commitment and funding in an effort to ensure safety of all stakeholders including customers, employees, and local community is taken into consideration. The strive towards good environment compliance in an effort toward protecting the environment from pollutants from our industrial activities. Pertamina Petroleum & Energy Ltd as a petroleum industry is affected by several environmental regulations and statutes. Like any other petroleum refinery, Pertamina Petroleum & Energy Ltd produces distilled fuel oils, gasoline, kerosene, lubricants, and diesel through fractional distillation process. This process in most instances is likely to produce toxic and other related petroleum pollutant products or discharges. Industry overview Pertamina Petroleum & Energy Ltd is a petroleum refinery firm that is based in Indonesia. It currently has six oil refineries, two gas reserves, and a petrochemical company distributed across several regions. Some of its key products from these different plants include petroleum products including diesel, petrol, kerosene, additives, chemicals, retail products, and a variety of chemicals. Environmental Issues They are several hazardous wastes that are produced by production processes at Pertamina Petroleum & Energy Ltd. These have great impact on the environment as they results to increased pollution of environment in a great way. Gases, oil/lubricants, petrol, diesel, tar, kerosene, and methane gas among others are some of the environmental hazards that are likely to be produced and pollute the environment if they are not checked and controlled properly. At Pertamina Petroleum & Energy Ltd, environmental issues arise because emissions released from some products such as liquid natural gas. Safety and environmental concerns are bound to arise as when dealing with petroleum products. With liquid natural gas for example, nitrogen oxide and other particulate matter may be released from plants when processing these gases. Such emissions are known to aggravate conditions such as asthma and other respiratory diseases. Therefore, there is need to come up with an environmental management procedures in an effort to ensure the compliance with various acts requirements. Environmental control methods, procedures, and programs In order to formulate successfully environmental control procedures and programs that will be effective in handling any environmental hazards that the Pertamina Petroleum & Energy Ltd, it will be crucial to understand various hazards and dangers that it pose to the environment. Petroleum products are very explosive especially when exposed to fire or any materials that can ignite. Pertamina’s Petroleum & Energy Ltd environmental compliance program is usually laid out on the basis of planning, information collection and organization, information interpretation, and writing compliance procedures and submitting them to the necessary authorities for approval. Pertamina Petroleum & Energy Ltd has put an extensive training program for all its stakeholders including employees and community around. The company has also put in place various safety programs including Safety and Protection programs that ensure all safety and environmental safety are adhered to. Such include putting various safety and guidance posters throughout the company. This also includes continued checking and inspection of all facilities to ensure they are up-to required standard as well as ensuring all the defects are detected and repaired. Continued maintenance programs are strictly followed to ensure accidents that are likely to result to hazards and pollution are reduced. Continued update of safety training is undertaken and accessed to ensure it is up to the standard. Safety and health department has also been set to ensure high levels of safety in the firm. This assesses the quality of safety delivered within the firm. Pertamina Petroleum & Energy Ltd also ensures the transportation of refined and non-refined petroleum products is well managed due to spills that are likely to occur. This is because spillage is likely to contaminate surface soil and then flow into the drainage and move to rivers. This is likely to cause fire accidents and others accidents related to petroleum products. In order to achieve this, proper and thorough inspection is undertaken in all transportation networks including pipelines and containers or Lorries. Environmental Statutes and Regulations/ Environmental Laws and Organizations In Indonesia where Pertamina Petroleum & Energy Ltd is located, the petroleum sector is governed by a lot of environmental statutes and regulations. There are a lot of environmental statutes and regulations that affect the Pertamina Petroleum & Energy Ltd. EPA defines petroleum refining as sites which are engaged in producing substance such as lubricants, residual fuel oils, distillate fuel oils, kerosene and gasoline through various processes such as redistillation of unfinished petroleum derivatives, straight or fractionation distillation of crude oil and cracking among other processes. EPA also ranked petroleum refining as the fourth highest activity among the non-conventional and toxic discharges of pollutants among the other 2000 activities that were analyzed. This therefore automatically means that there have to be numerous bodies that monitor the activities of companies such as Pertamina Petroleum & Energy Ltd to ensure that they comply with environmental conservation policies (Ross, 2001). These environmental statutes and regulations are meant govern the operations of the petroleum sector and provide guidelines and procedures for the management of national energy in line with environmental preservation requirements. An example is the Presidential Regulation No. 5/2006 on National Energy Policy. It contains 6 chapters that are divided into 7 articles that outline regulations of the national energy sector, including environmental regulations. Another example is the Government Regulation of the Republic of Indonesia regarding environmental impact assessment. This lists all the activities and businesses that are expected to have significant impact on the environment. Petroleum refining is one of the activities listed here. The Pertamina Petroleum & Energy Ltd therefore has to ensure that it complies with all of these Statutes and regulations so as to avoid trouble with the law (Ross, 2001). Other examples of statutes, regulations and organizations that govern the operations of companies such as Pertamina Petroleum & Energy Ltd include the EPA 40 CFR, the Clean Air Act (CAA) which is concerned with both mobile and stationery sources of air pollution and the Safe Drinking Water Act (SDWA) which is concerned with monitoring potential sources of drinking water so as to protect the quality of drinking water from both ground and underground sources (Dahan, 2001). Another example is the Clean Water Act (CWA) which is concerned with the biological, chemical and physical integrity of waters. The Ocean Damping Compliance is relates to the regulation of dumping any type of materials into marine environments so as to protect human welfare, health and all the amenities of the environment. There is also the Solid and Hazardous Waste statute that is concerned with the regulation of the generation, handling, disposal, treatment, transportation and generation of hazardous and solid wastes. Others include the National Oil and Hazardous Substances Pollution Contingency Plan (NOHSPCP), the Occupational Safety and Health Act (OSHA), the Resource Conservation and Recovery Act (RCRA), the National Environmental Policy Act (NEPA), the Spill Prevention Control and Countermeasure (40 CFR 112) and the Chemical Accident Prevention/Emergency Preparedness Compliance among many others. The Pertamina Petroleum & Energy Ltd has to comply with all these statutes regulations. There are various organizations charged with the responsibility of ensuring that companies such as Pertamina Petroleum & Energy Ltd take care of the environment. As the manager, I have to understand all these statutes and regulations and know the organizations that are concerned with regulating the activities of companies so as to ensure that they conserve the environment (Dahan, 2001). Roles and Responsibilities Managing more than 1,000 staff is not a simple task. Therefore, Pertamina Petroleum & Energy Ltd has established a clear organizational structure in ensuring roles and responsibilities are well undertaken. Some of the established departments and managers include Managing Director who has the overall task of overseeing firms activities and decisions. He ensures that the required objectives of the Pertamina Petroleum & Energy Ltd are well undertaken. Safety Manager is under Managing Director and his role is to ensure all the safety regulations are followed strictly. This manager works closely with Environmental Compliance Manager to ensure environmental issues are well looked after in the organization. Operations and Technical Manager ensures that of operations and processes undertaken are according to the required standards and safety. This manager also works hand in hand with training manager to ensure working and new recruited staffs have necessary safety and environmental aspects. Ensuring Firm’s Staff Follow Environmental Regulations In order to make sure that every member of staff at Pertamina Petroleum & Energy Ltd complies and follows the organization’s regulations. Safety awareness programs should be checked regularly as well as using check lists to ensure every staff should undergoes the training as required. Safety training sessions should have scheduled time table to ensure all staff get adequate information regarding safety and environmental pollution. Audit Program There is an audit program at the Pertamina Petroleum & Energy Ltd that is responsible for reviewing the company’s compliance with existing programs. Since Pertamina uses hazardous materials of different nature, the company has to comply with various statutes and regulations such as 29 CFR. There are programs to address the handling of flammable materials. Pertamina Petroleum & Energy Ltd has a hazardous communication program that deals with the production and handling of hazardous materials (Dahan, 2001). There are procedures taken to prevent oil spills into water bodies and into the environment. Pertamina Petroleum & Energy Ltd undertakes auditing regularly in order to ensure it regularly complies with set safety and pollution regulations. In order to ensure quality audit, qualified personnel undertake the audit and give back the feedback on areas that require improvements. Audit ensures that any employee who is not up to required levels of standards receives more training. New employees are also undertaken through a comprehensive training to ensure they are able to comply with set safety standard. Plant’s Hazardous Materials Pertamina uses hazardous materials of different nature. These include lubricants, residual fuel oils, distillate fuel oils, kerosene, gases, flammable and combustible liquids, LPG, ammonia, and their reserves. These are the materials that have been identified as potential hazardous materials that may cause harm to the environment if not handled well. They are well handled and labelled as a way of reducing their risks and hazards associated with them. Dealing with Government Officials As the manager, I would deal with government inspections by ensuring that there is an environmental compliance team to advise the company on what it should do so as to comply with environmental statutes and regulations. The team will comprise of people conversant with environmental laws who can advise the company and interpret these laws so as to find out whether or not it is complying with environmental requirements. The team will be responsible for ensuring that the operations of the company are in line with the environmental laws. Staff Engagement and Challenges The health and safety program at Pertamina is meant to protect the wellbeing and health of workers. However, not all employees will be satisfied with these programs. It is even expected that some will resist such programs. Coordinating the employees towards the achievement of these programs is also a major challenge because it entails getting them to work together as a team, which can be a very challenging task (Vickers, 2005). Managers and other workers may also fear that the program may fail and they may end up not giving it their all. Most people find changes unnecessary and disruptive and may therefore oppose them. Employees may be affected by the change in ways of operations which may require that they work under new managers or with new workmates. These programs may also call for changing of organization structures which may make the workers lose confidence. The fear that things will not improve is likely to present numerous challenges in the implementation of the program. Ethical and Professional Dilemmas At Pertamina Petroleum & Energy Ltd, ethical issues are considered to be matters of great priority. Any ethical matter that has the potential to cause conflicts between the company and the surrounding people is taken very seriously. For example, pollution is considered to be one the greatest problems that may affect the company. Other issues such as oil spills into waters and climate concerns are also issues of great concern to the Pertamina Petroleum & Energy Ltd. The company has put a lot measures in place to ensure that such disasters do not happen. The company is overly concerned with environmental concerns that are usually associated with petroleum companies (Vickers, 2005). This is why the company tries as much as it can to get involved in environmental programs with the community by organizing and supporting them. The company welcomes any views, comments, suggestions and opinions that can help it to improve and become environmentally friendly. Conclusion It is essential for all companies regardless of what they are dealing with to come up with effective strategies to protect the environment. This is a very crucial process that requires the help and expertise of all those involved in the company. This is the only way to ensure that the products that are produced by the company are safe and reliable to all. When health and safety issues are dealt with accordingly, companies can save a lot of money and resources, thus adding value to its operations. It is also the only way that the company will pay heed to the environmental expectations that are to be adhered to. That is the sole reason as to why governments all over the world have this duty. The duty entails the ability to come forth with structures that ensure environmental compliance. They work hand in hand to create sustainable policies that will ensure it is possible to protect the environment whilst coming up with measures and policies that compliment this process. The Pertamina Petroleum & Energy Ltd is faced with many challenges when it comes to ensuring that the environment is protected. It has however managed to deal with most of these issues and ensure that it causes the least harm to the environment. As the manager in charge of safety, one must be aware of these issues and ensure that he or she leads the organization towards complying with these environmental concerns. References Dahan, R., (2001). Environmental Performance and Policy—An ExxonMobil Perspective. In: Proceedings of the Paper Presented at the Oil & Money Conference, London, 29–30 October 2001. Maugeri, L. (2005). The Age of Oil: What They Don't Want You to Know About the World's Most Controversial Resource. Guilford, CT: Globe Pequot. Ross, M., (2001). Extractive Sectors and the Poor. Oxfam America: Washington, DC Skjaerseth, J., & Skodvin, T., (2000). Climate Change and the Oil Industry: Common Problems, Different Strategies in Proceedings of the Paper Presented at the Sixth Session of the Conference of the Parties to the Climate Convention, The Hague, 23 November 2000. Vickers, A. (2005). A History of Modern Indonesia, Cambridge: University of Cambridge Press. Appendix Appendix 1 APPENDIX A: Monthly Inspection Checklist Further description and comments, if needed, should be provided on a separate sheet of paper and attached to this sheet. Any item answered “YES” needs to be promptly reported, repaired, or replaced, as it may result in non-compliance with regulatory requirements Date: _________________ Signature: : _________________ Yes No Description & Comments (Note tank/equipment ID) Storage tanks and Separation Equipment Tank surfaces show signs of leakage Tanks show signs of damage, rust, or deterioration Bolts, rivets or seams are damaged Aboveground tank supports are deteriorated or buckled Aboveground tank foundations have eroded or settled Gaskets are leaking Level gauges or alarms are inoperative Vents are obstructed Thief hatch and vent valve does not seal air tight Containment berm shows discoloration or stains Berm is breached or eroded or has vegetation Berm drainage valves are open/broken Tank area clear of trash and vegetation Equipment protectors, labels, or signs are missing Piping/Flowlines and Related Equipment Valve seals or gaskets are leaking. Pipelines or supports are damaged or deteriorated. Buried pipelines are exposed. Transfer equipment Loading/unloading lines are damaged or deteriorated. Connections are not capped or blank-flanged Secondary containment is damaged or stained Response Kit Inventory Discharge response material is missing or damaged or needs replacement APPENDIX B: Equipment Shut-off Procedures Source Action Manifold, transfer pumps or hose failure Shut in the well supplying oil to the tank battery if appropriate. Immediately close the header/manifold or appropriate valve(s). Shut off transfer pumps. Tank overflow Shut in the well supplying oil to the tank battery. Close header/manifold or appropriate valve(s) Tank failure Shut in the well supplying oil to the tank battery. Close inlet valve to the storage tanks. Flowline rupture Shut in the well supplying oil to the flowline. Close nearest valve to the rupture site to top the flow of oil. Flowline leak Shut in the well supplying oil to the flowline. Immediately close the nearest valve to stop the flow of oil to the leaking section. Explosion or fire Immediately evacuate personnel from the area until the danger is over. Immediately shut in both wells if safe to do so. If possible, close all manifold valves. If the fire is small enough such that it is safe to do so, attempt to extinguish with fire extinguishers available on site. Equipment failure Immediately close the nearest valve to stop the flow of oil into the leaking area. Appendix C: Scope of Monthly Inspections Facility Area Equipment Inspection Item Tank Battery Storage tanks Leakage, gaskets, hatches Tank liquid level checked Tank welds in good condition Vacuum vents Overflow lines Piping, valves, and bull plugs Corrosion, paint condition Pressure / level safety devices* Emergency shut-down system(s)* Pressure relief valves* Area Berm and curbing Presence of contaminated/stained soil Excessive vegetation Equipment protectors and signs Engine drip pans and sumps General housekeeping Truck Loading Offload lines, drip pans, valves, catchment berm Valve closed and in good condition Cap or bull plug at end of offload line/connection Sign of oil or standing water in drip pan(s) Sign of oil or standing water in catchment berm Sign of oil in surrounding area Production equipment Gauges (pressure, temperature, and liquid level) Pressure / level safety devices* Emergency shut-down system(s)* Pressure relief valves* Wells (including saltwater disposal well) Area Spills and leaks (e.g., stuffing box) Equipment protectors and signs General housekeeping Leasehold area between wells and Tank Battery Flowlines Flowline between the well and tank battery/gun barrel Exposed line of buried piping Valves (condition of, whether locked or sealed) Evidence of leaks and/or damage, especially at connections/collars Corrosion (pitting, flaking) Pipe supports Road and Field Ditches Evidence/puddles of crude oil and/or produced water Other Chemicals, Fuels and Lube Oils Storage conditions Response staging areas Area Road practicable by field vehicle Area clear of excessive vegetation * Tested quarterly by third party inspection company. Appendix 2 Appendix A- Checklist for the Head of Company Safety (To avoid negligence) Table 1: Components of flow line maintenance program Component Measures/Activities Configuration Well pumps are equipped with low-pressure shut-off systems that detect pressure drops and minimize spill volume in the event of a flow line leak. Flow lines are identified on facility maps and are marked in the field to facilitate access and inspection by facility personnel. Flowline maps and field tags indicate the location of shutdown devices and valves that may be used to isolate portions of the flow line. With the exception of a portion of Flowline B under an access road, the flow lines and appurtenances (valves, flange joints, supports) can be visually observed for signs of leakage, deterioration, or other damage. Inspection Lines are visually inspected for leaks and corrosion as part of the monthly rounds by field personnel, as discussed in Section 3.4 above. The buried portions of Flowline B are coated/wrapped and visually observed for damage or coating condition whenever they are repaired, replaced, or otherwise exposed. Every five years, flow lines are tested using ultrasonic techniques to determine remaining wall thickness and mechanical integrity. Copies of test results are maintained at the facility for ten years to allow comparison of successive tests. Maintenance Any leak in the flow line or appurtenances is promptly addressed by isolating the damaged portion and repairing or replacing the faulty piece of equipment. Clearwater does not accept pipe clamps and screw-in plugs as forms of repair. Any portion of a flow line that fails the mechanical integrity test is repaired and retested, or replaced. Table 2: Schedule of Periodic Condition Inspection of Bulk Storage Containers Tank Year Built Last Inspection Next inspection by #1 1983 11/5/1998 11/5/2008* #2 2002 None First inspection to be performed by 12/31/2017* #3 1995 None First inspection to be performed by 12/31/2010* #4 2002 None First inspection to be performed by 12/31/2017* #5 1991 None First inspection to be performed by 12/31/2006* * Dates for subsequent external inspections must follow the recommendations of the certified inspector, not to exceed three-quarters of the predicted shell/roof deck corrosion rate life, or maximum of 15 years. Table 3: Scope of Daily Examinations Facility Area Item Observations Storage Tanks (Oil and Produced water) Leaks Tank liquid level gauged Drip marks, leaks from weld seams, base of tank Puddles containing spilled or leak material Corrosion, especially at base (pitting, flaking) Cracks in metal Excessive soil or vegetation buildup against base Foundation problems Cracks Puddles containing spilled or leaked material Settling Gaps at base Flowlines problems Evidence of leaks, especially at connections/collars Corrosion (pitting, flaking) Settling Evidence of stored material seepage from valves or seals Wells Leak Evidence of oil seepage from pumping rod stuffing boxes, wellhead and wellhead flowlines, valves, gauges SW Pumps Leaks Leaks at seals, flowlines, valves, hoses Puddles containing spilled or leaked material Corrosion Table 4: Characteristics of Oil Containers ID Type Construction Primary Content Capacity (barrels) Capacity (gallons) #1 Gun barrel Steel Oil 500 21,000 #2 AST Steel Oil 400 16,800 #3 AST Steel Oil 400 16,800 #4 AST Steel Oil 400 16,800 #5 AST Fiberglass Produced water and oil mixture 500 21,000 TOTAL 2,200 92,400 Read More