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Compliance Glossary Term

Api 510 (american Petroleum Institute Standard 510)

An inspection code governing the maintenance and repair of in-service pressure vessels. Subcontractors performing vessel work must often comply with API 510 requirements and use certified inspectors. Non-compliance can result in work stoppages or contract disqualification.

Related Terms

CEM (Continuous Emissions Monitoring)

Compliance

Automated systems that track pollutant outputs from equipment in real time. Subcontractors operating combustion equipment may be required to install, maintain, or provide data from these systems. Non-compliance can trigger work stoppages or contract penalties.

Classification (aggregate)

Compliance

A method of grouping all subcontractor invoices or costs together to assess total contract value or spending thresholds. Owners and primes use aggregate classification to trigger compliance requirements, audit rights, or tiered pricing terms. Subcontractors should track cumulative billing carefully, as crossing thresholds can change contract obligations.

Nepa (national Environmental Policy Act) Review

Compliance

A U.S. federal environmental assessment required before major project approvals on public lands. Subcontractors may face work delays or scope changes while reviews are completed. Mobilisation schedules should account for potential NEPA-related hold periods.

Produced Water

Compliance

Water extracted from the ground alongside oil and gas during production. Subcontractors handling, transporting, or disposing of it must meet strict environmental regulations. Improper management can trigger fines and halt site operations.

Hazard Assessment

Compliance

A formal process where subcontractors identify and evaluate site-specific risks before work begins. It documents potential dangers, required controls, and responsible parties. Most client operators require a completed hazard assessment before issuing a work permit.

Induced Seismicity

Compliance

Human-caused ground tremors triggered by oilfield operations like hydraulic fracturing or wastewater disposal. Regulators may issue stop-work orders, directly halting your field operations. Subcontractors should track local seismic thresholds, as exceeding them can suspend permits and delay project timelines.

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