In order to improve the definition of and conditions for the use and disposal of fluids, gravel and cement paste resulting from drilling and production activity in Brazil, on January 11 2018 the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA) published Normative Instruction 01/2018.

In doing so, the IBAMA established new definitions and specific criteria that must be followed, subject to the penalties provided in the law.

In particular, limitations have been imposed on:

  • using certain products (eg, diesel) as drilling fluids;
  • concentration levels;
  • laboratory analysis requirements; and
  • fluid discharge under certain conditions (eg, verification of oil).

According to the IBAMA, the Fluids and Gravel Monitoring Project, which deals with fluid management from its preparation to final destination, should be applied to all activities licensed by the operating companies. Periodic digital reports must be submitted, as per the terms of the environmental licence. In the event of accidental discharges, samples must be collected for toxicity examination.

The operating companies must also submit individual flowcharts describing all stages of their drilling and complementary fluid systems for monitoring purposes. Annexes with declaration forms are now available.

Every submitted project should provide information on:

  • the fluid preparation procedure;
  • the adjustment of the physical-chemical properties in the active tank;
  • the discard procedure in each phase;
  • the cleaning system for all tanks; and
  • the transfer of fluid and gravel from the platform to the support boats.

IBAMA may require new criteria and monitoring parameters due to local environmental particularities, such as ecosystem sensitivity and coastal proximity.

The normative instruction will come into force on February 10 2018.

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For further information on this topic please contact Godofredo Mendes Vianna or Jose Vicente Duncan de Miranda at Kincaid | Mendes Vianna Advogados by telephone (+55 21 2276 6200) or email ([email protected] or [email protected]). The Kincaid | Mendes Vianna Advogados website can be accessed at www.kincaid.com.br.