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Refunding of supervision expenses

The Petroleum Safety Authority Norway (PSA) claims refunds for expenses associated with supervision tasks in the petroleum activities. The PSA collects the refunds on behalf of the Ministry of Finance.

The Ministry of Labour and Social Inclusion (AID) sets the framework and guidelines for the PSA's activities. In the annual award letter, the AID sets requirements for the revenues the PSA is expected to earn through refunding of supervision expenses.

The income from the refunding scheme goes to the Ministry of Finance, not the PSA.

For 2009, the AID expects that the PSA will carry out refundable supervision tasks worth a total of NOK 76.7 million.

The PSA invoices the companies for refundable expenses based on extensive documentation and supporting material.

A dialogue has taken place between the PSA and the players in the petroleum activities regarding the necessary and appropriate degree of detail concerning the invoicing of the PSA's refundable expenses.

The dialogue does not address the refunding scheme itself.

In its administration of the refunding scheme, the PSA must abide by the frameworks and guidelines that apply to public administration.

The Refunding Regulations
The arrangement of refunding supervision expenses stems from the early 1970s, and was first formalised in Section 45 of the Royal Decree of 8 December 1972 relating to exploration for and exploitation of subsea petroleum deposits.

Since 1997, this arrangement has had its legal basis in the so-called Refunding Regulations (Regulations relating to refunding of expenses in connection with regulatory supervision of safety, working environment and resource management in the petroleum activities).

The Refunding Regulations were stipulated by Royal Decree of 27 June 1997 pursuant to the Act of 29 November 1996 No. 72 relating to petroleum activities, cf. Section 10-3 and the Act of 4 February 1977 No. 4 relating to worker protection and working environment, Section 83. Submitted by the Ministry of Petroleum and Energy

The Refunding Regulations list the expenses for which refunding can be demanded, including the following:

  • audits and verifications
  • participation in status meetings with the operating companies
  • participation as observer in committee meetings in production licences
  • follow-up of hazard and accident situations that have occurred
  • participation in emergency exercises

Accrued working hours are invoiced according to hourly/daily rates stipulated in the Refunding Regulations. Travel expenses in accordance with the State travel allowance scale are also refundable.