Steps in Ensuring that Your Company Is Compliant with Oil and Gas Regulations

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Oil and Gas Regulations

The oil and gas industry is very tightly regulated, and for a good reason, too. It deals with a lot of volatile materials and very complicated processes that can result in serious accidents if proper compliance is not ensured. Even the smallest negligence can lead to consequences such as death or injury. If you are found in violation of compliance, your company can incur large fines or even get shut down. If you operate a drilling or mining company, these are some ways of ensuring that you are always in compliance with federal and state guidelines:

1. Always keep updated with the latest guidelines.

The regulations and guidelines surrounding oil and gas are constantly changing. This is because new incidents or accidents lead to the creation of new regulations and the passing of various bills. You need to ensure that you are always updated with the most current ones. Do this by having a dedicated legal team or using the services of a consulting firm. You should aim for frequent briefings, where you get an overview of the current compliance landscape. Then see where your company stands on achieving compliance milestones.

2. Make sure that you buy from compliant vendors.

Your company might be fully compliant with all the relevant regulations related to your activity. Still, you can purchase products and equipment from vendors who don’t meet the right standards. This can lead to you being in breach of compliance regardless of your efforts. For instance, if you are buying oil tools in Oklahoma but your supplier is compliant with regulations of a different state, you may find yourself unwittingly in breach.

Oil and Gas Regulations

3. Ensure that you are using all your resources.

There are lots of options available for your company to check its compliance record. There is lots of software that can manage this information for you, so it becomes easy for high-level managers to check what has been done so far, what is left to do, and what the penalties are for failing to comply. Use your resources wisely. Remember that it’s cheaper to conduct short checks to see where you are rather than large audits that can get very expensive.

<4. Always be extra cautious

There are minute details that need to be tracked at every step of a project. Being extra cautious is better than incurring huge fines or, worse, an accident. Always be prepared by knowing all the rules and doing more than the necessary minimum compliance requirement. Implement effective data management systems before it becomes an absolute necessity. Train all your employees in following due process to avoid accidents and violations. Ensure that an efficient compliance process has been established.

>Companies that get large often lose track of important compliance steps. This is certainly not worthwhile. The steps can become difficult to track and end up costing you thousands in hiring third parties to help you decipher the regulations surrounding compliance. Worse still, your whole business can be destabilized as a result, and you can get fined hundreds of thousands of dollars.

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