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Compliance Glossary Term

ARO (Asset Retirement Obligations)

Legally required costs to decommission and remediate a site at end of life, such as plugging wells or removing infrastructure. Operators budget ARO years in advance, which can create late-project work opportunities for subcontractors. Understand how ARO timelines affect contract scope, since decommissioning work often has strict regulatory deadlines.

Related Terms

Osha 1926 Subpart P

Compliance

The U.S. federal standard governing excavation and trenching safety on construction sites. Subcontractors must comply with shoring, sloping, and protective system requirements before workers enter any excavation. Non-compliance can result in stop-work orders, fines, and loss of site access.

MI (Mechanical Integrity)

Compliance

A regulatory and operational standard confirming that pressure-containing equipment is fit for service and free from defects. Subcontractors working on vessels, pipelines, or wellheads must often meet MI requirements before commencing work. Non-compliance can halt operations and trigger liability for field service crews.

Osha (occupational Safety and Health Administration) Recordable Incident

Compliance

A work-related injury or illness that meets specific criteria requiring formal logging under OSHA regulations, including cases involving days away from work, restricted duties, medical treatment beyond first aid, or loss of consciousness — a metric that directly affects a subcontractor's safety record and can impact their eligibility for future contracts with operators and prime contractors.

Export Authorization

Compliance

A government-issued permit allowing equipment, technology, or services to be delivered across international borders. Subcontractors must secure this before mobilising tools or personnel to foreign project sites. Missing authorisation can halt operations and trigger costly delays.

29 Cfr 1926 Subpart U

Compliance

The U.S. federal OSHA standard governing blasting and use of explosives on construction sites. Subcontractors performing demolition, excavation, or site prep must comply when explosives are involved. Non-compliance risks stop-work orders, fines, and contract termination.

API (American Petroleum Institute)

Compliance

The leading industry organisation that develops technical standards, safety protocols, and equipment specifications that subcontractors must follow when working on oil and gas projects. API certifications and compliance with API standards are often mandatory requirements in service contracts and can affect your ability to bid on projects.

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