Issuance of Marine Environment Protection License
As per Section 40 of the Marine Pollution Prevention Act No. 35 of 2008, any person intending to conduct or engage in the exploration of natural resources, including petroleum or any related activity, must comply with the provisions of the regulations established for this purpose. The first regulation formulated for this purpose is the Offshore Exploration for and Exploitation of Natural Resources, including Petroleum (Marine Environment Protection) Regulation No. 1 of 2011. The Marine Environment Protection License was introduced as a regulatory and legal tool under this regulation.
Objectives of the Marine Environment Protection License:
- To prevent or minimize the discharge of pollutants into the coastal and marine environment.
- To prevent or minimize oil spills.
Validity Period of the License:
The Marine Environment Protection License is valid for two years from its effective date.
- Licenses granted under this regulation are non-transferable, except with prior written approval from the Marine Environment Protection Authority. This approval must be endorsed on the license
- If a transfer of the license is necessary, a written request must be submitted to the Marine Environment Protection Authority, clearly indicating the reasons for the transfer.
Procedure for Issuing the License:
Any person engaged in offshore exploration or exploitation of natural resources, including petroleum, within the exploration blocks in Sri Lankan territorial waters, is required to apply for a Marine Environment Protection License.
Step 1: Submit the application
The application for a Marine Environment Protection License is published in the Fifth Schedule of the Offshore Exploration for and Exploitation of Natural Resources, including Petroleum (Marine Environment Protection) Regulation No. 1 of 2011, as outlined in Gazette Notification No. 1709/15 dated 07.06.2011. The application form can be obtained from the Marine Environment Protection Authority (MEPA) Headquarters.
The application fee is USD 100.00. Applications must be submitted at least two months before the commencement of exploration or exploitation of natural resources, including petroleum, or two months before the expiration of an existing approval.
The following documents must be submitted with the application:
- Discharge Management Plan
The discharge management plan must be prepared in accordance with the First Schedule of the Offshore Exploration for and Exploitation of Natural Resources, including Petroleum (Marine Environment Protection) Regulation No. 1 of 2011, as published in Gazette Notification No. 1709/15 dated 07.06.2011. - Environmental Impact Assessment (EIA) Report
The environmental impact assessment must be conducted by a classification society approved by the Marine Environment Protection Authority. - Payment of Required Fees
| Activity | License fee (USD) |
|---|---|
|
Seismic or other surveys |
1000 |
|
Drilling |
10,000 per well |
|
License for any other development activity for which a license is issued by the Petroleum Resources Development Committee |
25,000 |
Adequate security or Insurance cover to the satisfaction of the Authority, to defray unforeseen damages.
Letter of confirmation issued by the Director General of Petroleum Resources Development Secretariat, confirming the identity of the applicant for the license.
In addition, the followings should be maintained:
- Oil record book and garbage record book. These should be in accordance with the third schedule of Offshore Exploration for and Exploitation of Natural Resources including Petroleum (Marine Environment Protection) Regulation No. 1 of 2011, published Gazette Notification No. 1709/15 dated 07.06 2011.
- Anti pollution record book This should be in accordance with the regulation 8 of Offshore Exploration for and Exploitation of Natural Resources including Petroleum (Marine Environment Protection) Regulation No. 1 of 2011, published Gazette Notification No. 1709/15 dated 07.06 2011.
- Valid International Oil Pollution Prevention Certificate This should be in accordance with the eighth schedule of Offshore Exploration for and Exploitation of Natural Resources including Petroleum (Marine Environment Protection) Regulation No. 1 of 2011, published Gazette Notification No. 1709/15 dated 07.06 2011.
Step 2: Evaluate the application
Application and other documents are evaluated to check the relevancy of issuing the license and a decision is taken on the evaluation. If the decision is to refuse to issue a license, it will be communicated in writing with the reason for refusal, within 14 days of the decision to the applicant or the licensee. If the applicant or the licensee is aggrieved by a decision communicated to them, they can appeal against such decision to the Secretary of the Ministry of the Minister in charge of the subject of Marine Environment Protection in writing, within thirty days from the date on which the decision is communicated to them.
Step 3: Issuing the license
The license should be:
- Be in the form specified in the Fourth Schedule of the Offshore Exploration for and Exploitation of Natural Resources, including Petroleum (Marine Environment Protection) Regulation No. 1 of 2011.
- Remain valid for a period of two years from the date of issuance, unless canceled earlier.
- Be subject to the terms and conditions specified on the reverse side of the license.
Renewing of the license
The license may be renewed upon submission of an application to the Marine Environment Protection Authority (MEPA) no less than thirty days before the license’s expiration. The same application form used for applying for a new license is also used for license renewal. The application fee is USD 100.00.
The Authority will renew the license if it is satisfied that:
- The licensee has complied with the provisions of the regulation and any terms and conditions of the license.
- Renewing the license poses no threat to the sustainability of aquatic resources.
- The licensee has paid the required fee.
Renewal fees
| Activity | License fee (USD) |
|---|---|
|
Seismic or other surveys |
1000 |
|
Drilling |
10,000 per well |
|
License for any other development activity for which a license is issued by the Petroleum Resources Development Committee |
25,000 |
Cancellation of the License
The Marine Environment Protection Authority (MEPA) shall cancel a license if the licensee:
- Has contravened any provision of the Offshore Exploration for and Exploitation of Natural Resources, including Petroleum (Marine Environment Protection) Regulation No. 1 of 2011, published in Gazette Notification No. 1709/15 dated 07.06.2011, or any term or condition of the license; or
- Has been convicted of an offense under the Marine Pollution Prevention Act, No. 35 of 2008.
An applicant or licensee aggrieved by a decision communicated to them may appeal in writing to the Secretary of the Ministry responsible for Marine Environment Protection within thirty days from the date the decision is communicated.
Legal Actions Against the License Holder
Any person who violates the provisions of Section 40 of the Marine Pollution Prevention Act, No. 35 of 2008, or the Offshore Exploration for and Exploitation of Natural Resources, including Petroleum (Marine Environment Protection) Regulation No. 1 of 2011, published in Gazette Notification No. 1709/15 dated 07.06.2011, shall be deemed guilty. Legal actions shall be taken against such individuals in accordance with Section 41 of the aforementioned Act.