Details on the amendments to the Resolution of the CMU No. 1107

Wednesday, 2 Aug 2017

Details on the amendments to the Resolution of the CMU No. 1107

Details on the amendments to the Resolution of the CMU No. 1107

Ukrainian Oil & Gas Association continues to participate in the active improvement of the regulations regarding labour protection and its adjusting to the legislation of the EU.

We continue to negotiate on the draft modifications to the Resolution of the CMU of October 26, 2011 No. 1107, specifying the conditions for authorisation of hazardous work permits and permits for operation (application) of high-risk vehicles, mechanisms and equipment.

Although the final edition of the document is still under consideration at the relevant ministry, it can be concluded, based on the available information, that the essential elimination of the authorisation procedures reported by the State Labour Service has not been achieved. The SLS has conducted formal work on the changes, refusing to liberalise the administrative barriers for the oil and gas sector.

According to the amendments, commissioning of fuel/gas filling stations still requires a business owner to be authorised to perform hazardous work and to operate (apply) high-risk vehicles, mechanisms and equipment. Despite the fact that this requirement is contrary to the Law of Ukraine “On the List of Permitting Documents in the Field of Business Activities” where both regulations — hazardous work permit and equipment use permit — are combined. In the development of amendments to the Resolution No. 1107, the experts of Oil & Gas Association suggested returning to the standards that had been applicable until 2011. This would considerably simplify authorisation procedures and reduce the costs thereof, but our proposals were not considered.

No activities specified in the List of Hazardous Works were reduced either. The number of the listed activities was reduced due to the integration of separate clauses, however, shortening of the written text cannot be considered as an example of effective state deregulation.

Therewith, the number of hazardous works requiring document package registration for oil and gas companies has increased. It is about obtaining permission for the distribution, storage and use of explosive substances of the 1st and the 2nd hazard categories, as well as of combustible substances with the mass equal to or higher than the mass threshold standard determined according to the Resolution of the CMU No. 956., i. e. subject to the identification. Consequently, the volume of documents required for the passing of expert assessment has increased resulting in extra expenses for business owners, bureaucratic barriers in process registration and corrupt practices of dishonest officials.

The same situation exists for the List of High-Risk Vehicles, Mechanisms and Equipment. The list of processing equipment as to the use, production, processing, distribution, storage, transportation, application, and utilisation of unsafe or harmful substances is combined in a single clause. Clause 2 contains the duplication of the list of the equipment requiring approval by the relevant authorities, which may cause official circumlocution contradicting the definite deregulation and simplification principle declared by the SLS.

It may be concluded that the intention of the Ministry of Labour and Social Protection to update permitting activities in the field of labour protection and industrial safety was implemented in a superficial manner. The issues regarding the improvement of the existing rules and regulations in the oil and gas sector remain relevant. Upon the receipt of the final version of the draft modifications to the Resolution of October 26,2011 No. 1107 Ukrainian Oil & Gas Association is determined to continue working on the improvement of these modifications in deed and not in name.

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