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2002 ANNUAL REPORT On Pipeline Licence 1 MOOMBA TO ADELAIDE PIPELINE Document Number JDK-TR-1032-01 February 2003

2002 ANNUAL REPORT - Petroleumpetroleum.statedevelopment.sa.gov.au/__data/assets/pdf_file/0011/... · 2002 ANNUAL REPORT On ... SCADA Supervisory Control and Data Acquisition

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Page 1: 2002 ANNUAL REPORT - Petroleumpetroleum.statedevelopment.sa.gov.au/__data/assets/pdf_file/0011/... · 2002 ANNUAL REPORT On ... SCADA Supervisory Control and Data Acquisition

2002 ANNUAL REPORT

On Pipeline Licence 1

MOOMBA TO ADELAIDE PIPELINE

Document Number JDK-TR-1032-01

February 2003

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1.0 SUMMARY 4

2.0 ACTIVITIES UNDERTAKEN IN 2002 5 2.1 Safety and Environmental 5

2.1.1 Incidents 5 2.1.2 Risk Assessments 5

2.2 Maintenance Performance 5 2.2.1 Pipeline 6 2.2.2 Cathodic Protection 6 2.2.3 Electrical & Instrumentation 7 2.2.4 Communications 8 2.2.5 Mechanical 8 2.2.7 Other 8 2.2.6 Landholder Contacts 8 2.2.7 Pipeline Location Service 9 2.2.8 Community Awareness 9

2.3 Training 10 2.4 Emergency Response 11

3.0 COMPLIANCE ISSUES 11

4.0 ACTIONS TO RECTIFY NON-COMPLIANCE 12

5.0 MANAGEMENT SYSTEM AUDITS 12 5.1 Operational Audits 12 5.2 Environmental Audits 12 5.3 Safety Audits 13

6.0 REPORTS GENERATED IN 2002 13

7.0 REPORTED INCIDENTS 14

8.0 THREATS TO THE PIPELINE 15 8.1 S2885 Risk Assessment 15 8.2 Other 16

9.0 OPERATIONS PROPOSED FOR 2003/2004 16

10.0 VOLUME OF PRODUCT TRANSPORTED 16

11.0 STATEMENT OF EXPENDITURE 16

12.0 KEY PERFORMANCE INDICATIONS 17

13.0 ANNEX A - ASSESSMENT OF DECLARED OBJECTIVES 18

14.0 ANNEX B - PIPELINE CATHODIC PROTECTION DATA AND ON/OFF POTENTIALS PROFILES 18

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LIST OF ABBREVIATIONS

ALARP As Low As Reasonably Practicable

AS2885 Australian Standard 2885

Pipelines- Gas and Liquid Petroleum

CFS Country Fire Service

CP Cathodic Protection

CPU Cathodic Protection Unit

DNV Det Norske Veritas

EMS Environmental Management System

ESD Emergency Shut Down

GJ Giga Joule

GPS Geographical Positioning System

HAZOP Hazard Operability

HDD Horizontal Directional Drill

HSE Health, Safety and Environment

KP Kilometre Point

LMS Land Management System

LTI Lost Time Injury

MAOP Maximum Allowable Operating Pressure

MAP Moomba to Adelaide Pipeline

MFS Metropolitan Fire Service

MLV Mainline Valve

MTI Medical Treatment Injury

PIRSA Primary Industries and Resources of South Australia

PL1 Pipeline Licence No 1

ROC Remote Operating Controller

SCADA Supervisory Control and Data Acquisition

SEO Statement of Environmental Objectives

SES State Emergency Service

SMS Safety Management System

SWER Single Wire Earth Return

TJ Terra Joule

UHF Ultra High Frequency

VHF Very High Frequency

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1.0 SUMMARY This report is submitted in accordance with the requirements of Pipeline Licence 1 and the South Australian Petroleum Regulations 2000. The Moomba to Adelaide Pipeline is owned, operated and maintained by Epic Energy.

The report reviews operations carried out during 2002 and intended operations for 2003 and 2004. In accordance with the Petroleum Regulations, a performance assessment is also provided with regard to the Statement of Environmental Objectives for the Moomba to Adelaide Pipeline. The Moomba to Adelaide Pipeline is 781km long and 559mm in diameter, constructed of welded steel, wrapped in a protective coating and is buried to depths in excess of 800 mm. There are seven gas turbine driven compressor stations located about 100 kms apart and mainline valves are installed approximately every 32kms. After-coolers are provided at the compressor stations to reduce the risk of stress fracture or over-temperature of the pipeline coating. The pipeline was designed for the express purpose of transporting Natural Gas and operates at a Maximum Operating Pressure of 7.3MPa.

The MAP has been progressively upgraded to boost capacity and increase security of gas supplies. This includes a 43km loop line of 510mm diameter between Wasleys the Torrens Island Power Station, where pressure limiting is installed to protect the mainline.

In 1998, the MAP Compressor Stations underwent a major upgrade of their compression equipment. This included the replacement of the Solar Centaur packages at stations 1, 2, 3, 5 & 6 with Solar Taurus units and the upgrade of 3 of the Ingersol Rand packages from a horsepower capacity of 4,250 to 5,400. This raised the Indicative Daily Winter Capacity of the pipeline from 353 Tj/Day to 393 Tj/day.

At the same time, the station control system was upgraded from an antiquated electro – mechanical system to an Allen Bradley PLC.

The pipeline was further enhanced in 2000 by the construction of 34kms of 24’ loops south of stations 1, 2, 3 & 4 and the remaining 4 Ingersol Rand packages being upgraded to the higher horsepower specifications.

This further raised the Indicative Daily Winter Capacity of the pipeline from 393 Tj/Day to 418 Tj/day.

The design parameters for the Moomba to Adelaide Pipeline are as follows: Date Constructed 1967/68 Date Commissioned 1969 Length, km 781 Diameter (OD), mm 559 Wall Thickness, mm: - Normal 7.92 - Special Crossings (eg:

rivers, roads, railways) 9.50

- MLV’s 9.50 Pipe Grade API 5L X52 MAOP, kPa 7,300 Coating Plicoflex Tape Main Line Valves 34 Actuators 16 Compressor Stations 7 Meter Stations 28

The design parameters for the Wasleys Loopline are as follows:

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Date Constructed Sep 1986 Date Commissioned Sep 1986 Length, km 43 Diameter (OD), mm 510 Wall Thickness, mm: - Normal 9.00 - Special Crossings (eg:

rivers, roads, railways) 9.00

- MLV’s 9.00 Pipe Grade API 5L X60 MAOP, kPa 7,322 Coating Fusion Bonded Epoxy Main Line Valves 6 Actuators 5 Scraper Stations 0 Meter Stations

6

2.0 ACTIVITIES UNDERTAKEN IN 2002

2.1 Safety and Environmental

2.1.1 Incidents There were 2 avoidable and 8 unavoidable vehicle accidents on the MAP during the reporting period. There were 2 safety accidents, 2 near misses and 2 safety hazards during the reporting period. There were 4 First Aid Injuries, 1 LTI and 1 MTI safety incidents during the reporting period. There were 8 reportable environmental accidents, 4 environmental encroachments, 1 environmental near miss and 6 non-reportable environmental accidents.

Total 30 Incident Reports received for the MAP for 2002.

2.1.2 Risk Assessments 2001 MAP AS2885 action close out report issued to PIRSA. 2002 MAP Pigging HAZOP and action close out report. 2002 CS1,2,3,5,6,7 and Whyte Yarcowie, plus all Meter Station HAZOPS completed - actions not completed.

2.2 Maintenance Performance In 2002, 2753 Maintenance Work Orders were produced from Epic Energy’s Computerised Maintenance Management System (Maximo), made up as follows:

• 33 % Preventative Maintenance tasks; and • 67 % Corrective Maintenance tasks.

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2.2.1 Pipeline • All routine road and aerial patrols and above

ground facility inspections were completed as scheduled.

• Fire extinguisher services were completed twice at all facilities, in accordance with Australian Standards.

• MLV and scraper station valves were maintained, in accordance with the Maintenance Program.

The underground pipework at Compressor Stations 1,2,3,4,5 and the Moomba Meter Station, between the units and the aftercoolers, was excavated and inspected as part of the ongoing Pipeline Integrity Management plan.

Pipeline warning signs were installed on the Moomba to Adelaide Pipeline, in an ongoing program to increase line of sight and ensure full compliance with AS 2885.3.

2.2.2 Cathodic Protection

To mitigate corrosion, all buried pipelines are covered with a protective coating, which serves to isolate the external pipeline surfaces from corrosive elements in the surrounding environment. Secondary protection at coating holidays and imperfections is achieved by applying cathodic protection.

The effectiveness of the cathodic protection system is monitored by carrying out two full line potential surveys annually, once at the end of summer and then again at the end of winter. In addition, all cathodic protection units (CPU’s) are inspected for correct operation bi-monthly.

Survey results given in Annex B, indicate all areas of the pipeline system met target performance levels of protection (Refer to Section 13). It should be noted that some of the OFF potentials lower than -0.850 V are from foreign crossings and do not belong to the MAP. Examples of these include;

• the potential of the casing in a cased crossing;

• potential of the foreign pipe; and

• a Telecom shielded cable.

Apart from these low points, there are genuine low potentials on the line that are due to the condition of the coating and nature of the local ground. Each year, new ground beds are installed to

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increase the level of protective current available to the pipe. Through this practice, old ground beds with increased resistance are also replaced with new ones. In 2002, two new ground beds were installed at KP 294.66 and at KP 416. These ground beds were activated very early in 2002. In addition to this, the ground beds at Peterborough, CS7, Gawler River and Auburn were replaced to ensure the integrity of the cathodic protection at these locations.

2.2.3 Electrical & Instrumentation • All routine Meter Station custody

transfer and Compressor Station fuel gas accuracy verification tests were completed as per the maintenance plan.

• Compressor station and compressor unit instrumentation and electrical services were completed in line with the maintenance program.

• Fire and gas detection systems were serviced in accordance with the Australian Standard.

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Regular inspections and maintenance was performed on the 19Kv SWER line and solar panel battery powered sites on the Moomba to Adelaide Pipeline System.

2.2.4 Communications Routine maintenance has ensured the reliability of the digital microwave system.

VHF, UHF and Telstra telephone communication systems are maintained in accordance with the Maintenance Management plan.

2.2.5 Mechanical • All scheduled routine filter inspections/

changes, MLV maintenance, regulator inspection/services, relief valve testing and ESD valve operational checks on meter and compressor stations, were completed as scheduled.

A Gas Engine Alternator at Compressor Station 1 and 2 GEA’s at Compressor Station 2, underwent a complete factory overhaul to bring the machine back to original specifications.

2.2.7 Other

2.2.6 Landholder Contacts

There are 470 landowners and occupiers along the MAP system.

All landowners on the MAP, Wasleys Loop, Pirie Lateral, Whyalla Lateral and Angaston Lateral were contacted during the year. The total number of landowners contacted in SA is approximately 750.

A property owner contact scheme is operated by Epic Energy. The Land Management Officer personally visits each owner or occupier along the pipeline system annually.

Other contacts made by Field Maintenance Officers and Superintendents during the course of daily business, or other land related issues that arise occasionally are recorded in our Land Management System.

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Land Management is supported by dedicated LMS software, that provides a powerful database and MapInfo facilities. All property details and notes relating to discussions or issues with the property owners are recorded in LMS. Through the MapInfo facility, an image of the cadastral boundaries of each property, relative to the pipeline route, can be displayed for any property. During the year, each property owner dwelling has been captured by GPS and will be displayed on the pipeline/cadastral plans.

If personal contact cannot be made, the occupier or owner is telephoned or mailed a letter explaining the reason for the visit, the contact officer’s business card, an information brochure on pipeline safety and our “Dial Before You Dig” contact phone number is left at all unattended residences. All property owners receive our Pipeline Safety brochure, a complimentary biro, as well as a high quality calendar, which is individually mailed out.

These items all contain our "Dial Before You Dig" contact phone number and strongly reinforce safe working practices near high-pressure gas lines.

A hard file is maintained for each of the 1500 land parcels crossed by pipelines. Each property is flagged with the Land Titles Office, who inform Epic Energy of any changes in ownership or land tenure details, ensuring that our records are always up to date for mail outs and personal visits.

2.2.7 Pipeline Location Service

Epic Energy provides a free service to locate pipelines for which they are responsible. This service is primarily used by other companies carrying out civil works in the vicinity of any of the pipelines administered by Epic Energy.

There were 3626 One Calls responded to in 2002, with approximately 10% of these requiring site attendance by Epic Energy personnel. The majority of the pipeline locations requested, were as a result of the “One Call“ system. They ranged from new installations crossing the pipeline, new fences as a result of subdivisions and general activities on the pipeline easement. All authorised activities within the pipeline easement were supervised by Epic Energy Field Officers to ensure the safety and integrity of the pipeline.

2.2.8 Community Awareness

• Epic Energy implements a Community Awareness Program, which entails holding awareness meetings with

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communities along the pipeline route.

• The target is to hold meetings annually with CFS, MFS, Police, Ambulance, SES, Councils, earth moving contractors, irrigation installation contractors with various community members invited to attend.

In 2002, 3 public awareness presentations for the Moomba to Adelaide Pipeline were made at Burra, Peterborough and Whyalla. The focus of the presentation was on the specific nature and characteristics of the products carried by the Moomba to Adelaide Pipeline, the route of the pipeline, basic information about the pipeline and its monitoring, control and emergency procedures. Additional meetings were held with several utilities, including Telstra, Origin Energy and ETSA.

2.3 Training Considerable training was carried out in SA for field maintenance personnel, including but not limited to:

• Base Line (Petroleum Industry) training has been completed by all

Epic Energy field staff personnel, involved in the Moomba to Adelaide Gas pipeline maintenance.

• Senior First Aid Training (re-certification) was completed for all field staff. Training was conducted by St John Ambulance Australia to the level of Senior First Aid certificate, in accordance with Epic Energy Training Policy.

• Epic Energy Heath, Safety and Environmental (HSE) Induction training was completed by all Epic Energy field staff involved in the Moomba to Adelaide Pipeline system maintenance. The training was developed by the Epic Energy Safety Adviser and delivered during Base Line Training.

• Heathgate Health, Safety and Environmental Induction training was completed by all Epic Energy staff involved in the maintenance of the Moomba to Adelaide Pipeline.

• Permit to Work training was completed by all Epic Energy field staff personnel involved in Moomba to Adelaide Pipeline maintenance.

In house, on the job training has been carried out for various field staff in the conduct of:

• Relief Valve Testing;

• Regulator Maintenance;

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• AVT inspections;

• Filter Vessel inspection and Filter change procedure;

• Cathodic Protection (Full Line Surveys);

• Single Wire Earth Return (SWER) - Training carried out by applicable field staff involved in transmission power line maintenance; and

• Vehicle Mounted Crane (CV) operators course attended by applicable maintenance staff.

2.4 Emergency Response Pipeline Licence 1 requires emergency drills be held on the pipeline system at least every two years. A full mobilisation exercise “Exercise Moomba” was the National Crisis and Emergency Management Exercise for Epic Energy. Exercise Moomba took place on 1st October 2002. The scenario involved serious complications to a routine repair at Wasleys.

Objectives of the emergency exercise:

• To test the ability of the South Australian Emergency Response Team and Emergency Management Team in response to a standard, which meets regulatory requirements, including the mobilisation of personnel and equipment to the incident site.

• To test the response room set ups in Dry Creek and Perth.

• To test the callout system of the Epic Energy Crisis Management

Team, the Head Office supporting teams and the South Australian technical and sales teams, as appropriate to the scenario.

• A summary of the Exercise Report was submitted to PIRSA.

3.0 COMPLIANCE ISSUES Every endeavour is made to ensure that design, manufacture, construction, operation, maintenance and testing of all appropriate facilities are carried out in accordance with AS 2885. Any non-compliance identified is logged in Epic Energy’s Computerised Maintenance Management System (MAXIMO), where they are tracked to conclusion. Significant items are reported to PIRSA. A Statement of Environmental Objectives (SEOs) for PL1 has been gazetted. The overall objectives of the SEO’s were achieved in that:

• Environmental damage from activities involved in operation of the Moomba to Adelaide Pipeline was minimised;

• Appropriate consultative processes involving people directly affected by regulated activities and the public generally were established; and

• The public was protected from risks inherent in regulated activities involving the Moomba to Adelaide Pipeline.

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The specific objectives declared in the SEO have been assessed in accordance with the Goal Attainment Scaling. The results of that assessment are provided in Annex A.

4.0 ACTIONS TO RECTIFY NON-COMPLIANCE To mitigate corrosion, all buried pipelines are covered with a protective coating, which serves to isolate the external pipeline surfaces from corrosive elements in the surrounding environment. Secondary protection at coating holidays and imperfections is achieved by applying cathodic protection. The effectiveness of the cathodic protection system is monitored by carrying out two full line potential surveys annually, once at the end of winter and then at the end of summer. In addition, all cathodic protection units (CPU) are inspected for correct operation bimonthly. Survey results given in Appendix B, indicate all areas of the pipeline system met the target performance levels of protection. It should be noted that some of the OFF potentials lower than -0.850V are from foreign crossings and do not belong to the MAP. Examples of these include;

• the potential of the casing in a cased crossing; • potential of the foreign pipe; and • a Telecom shielded cable.

MAP potentials will be presented in graphs and charts in the 2003 Annual Report. Apart from these low points, there are genuine low potentials on the line that are due to the condition of the coating and nature of the local ground. Each year, new ground beds are installed to increase the level of protective current available to the pipe. In this practice, old ground beds with increased resistance are also replaced with new ones. In 2002, two new ground beds were installed at KP 294.66 and at KP 416. In addition to this the ground beds at Peterborough, CS7, Gawler River and Auburn were replaced to ensure the integrity of the cathodic protection at these locations.

5.0 MANAGEMENT SYSTEM AUDITS

5.1 Operational Audits A full safety and environmental audit of the Moomba to Adelaide Pipeline and above ground facilities was carried out by the responsible SA Maintenance Superintendent in 2002.

5.2 Environmental Audits As the owner of the Moomba to Adelaide Pipeline, Epic Energy is required to have in place an Environmental Management System. A complete review of that EMS was carried out in 2002, following the development of SEO for operating pipelines in SA. The Audit looked at the effectiveness and system structure relating to the SEO. Modifications were carried out on the Aspects Register and included an update of the Obligations Register.

PPK Environmental & Infrastructure Pty Ltd were commissioned to undertake environmental monitoring works at several sites along the Moomba to Adelaide Pipeline. These sites included Compressor Stations 1 - 7, the Mintaro Meter Station, Peterborough Depot and Torrens Island Meter Station.

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The objectives of the program are part of ongoing environmental monitoring and walk through inspections to identify significant environmental issues.

Groundwater monitoring was carried out at selected sites to determine the extent of hydrocarbon plume beneath the site and whether this has changed since the previous round of monitoring. The 2002 survey provided evidence of natural degradation of the plume. The program will ensure that any significant breach in the integrity of the scrubber tanks on the above sites is identified and enable a response strategy to be implemented, if required. Monitoring of previously identified hydrocarbon contamination within the groundwater at the Torrens Island site, was carried out to determine the migration of contaminant and assess the potential for natural attenuation. A general reduction in the hydrocarbon concentration, since previous monitoring round, has occurred with evidence of natural biodegradation of hydrocarbons. Groundwater monitoring at the Torrens Island Meter Station will continue to assess the migration of the petroleum hydrocarbon contamination within the groundwater and provide evidence of natural attenuation of the hydrocarbon plume beneath this site.

Due to presence of a localised area of phase separated hydrocarbon product, in the vicinity of the former soakage pit at Compressor Station 7, a passive skimming groundwater remediation system was installed in 2002. The objective was to remove as much phase-separated hydrocarbon (PSH) product as practicable from the groundwater. This reduces the spread of the contamination plume within the groundwater. The passive skimming unit has been operating effectively and has reduced the thickness of phase-separated hydrocarbons to a thin film. It has been recommended that the unit remain in operation until the rate of PSH recovery becomes negligible.

Existing areas of “African Rue”, an exotic weed along the Right Of Way in the vicinity of CS5, were monitored and sprayed at appropriate intervals.

5.3 Safety Audits Epic Energy has developed and implemented a Safety Management System (SMS) for all operations and pipeline systems. An internal audit of the SMS was conducted in 2002. Further to this, Det Norske Veritas (DNV) undertook an external review, in accordance with our Western Australia Safety Case requirements.

Housekeeping inspections are conducted monthly at all facilities, in accordance with our SMS requirements.

Annual audits of our Aviation Operators used for charter flights (employee transport) and surveillance flights, including fixed wing aircraft and helicopters have been completed in 2002. All aviation operators were deemed to be safe by the third party auditor – Hart Aviation.

6.0 REPORTS GENERATED IN 2002 The following reports were generated and forward to PIRSA during 2002:

• AS 2885 Risk Assessment for the Moomba to Adelaide Pipeline, forwarded February 2002.

• PL1 Annual Report for 2002, forwarded May 2002.

• Exercise Moomba Report, forwarded January 2003.

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7.0 REPORTED INCIDENTS A total of 30 safety and environmental incidents were reported on the Moomba to Adelaide Pipeline, including:

Unauthorised activity in the Easement:

• Light poles being erected on the easement in the vicinity of Hodson Rd. A contractor had not made contact with Epic Energy or made use of the “One Call” system;

• Excavation near the Loop Line at the corner of Flinders Rd and Waterloo Corner Rd;

• Work drilling earth stakes in the Gepps Cross/Dry Creek meter station by Origin Energy. Origin Energy were alerted and an education campaign introduced to ensure awareness of the issues associated with these pipeline facilities;

• Pipeline encroachment at Kp 761. A trench for the installation of an electrical cable. The landowner was counselled on the dangers of this type of activity near gas pipelines; and

• Heavy vehicles crossing the pipeline at and around Kp69. Contractor educated on the requirements of extra cover for this type of activity.

Relief valves venting

• There were 5 Incidents related to the opening of relief valves in 2002.

• Odourant release. Environmental Incident Not Reportable.

• CS1 Relief valve failed. Environmental Reportable Incident.

• Torrens Island Relief valve failed. Environmental Reportable Incident.

• CS2 venting gas 4.5TJ Environmental Reportable Incident.

• Loop Line Symes Rd Meter Station venting gas Environmental Reportable Incident.

• CS2 Venting gas Environmental Reportable Incident.

• CS2 Venting gas Environmental Reportable Incident.

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Pipeline leaks

• There was an incident at MLV 24, when the sealant injection nipple dislodged from the sealant line, venting gas to atmosphere until repairs were completed. An estimated 6.9 GJ of gas was vented in this incident.

Oil Spills

• There was a minor oil spill at Wasleys compressor station, when the underground oil collection tank allowed a mixture of oil and gas to vent via the breather pipe and contaminated the ground.

• The contractor cleaning the meter tubes at Gepps Cross meter station allowed contaminated water from the cleaning process to spill to ground with the potential to enter the storm water drains.

• CS4 Potential oil spill. Environmental Near miss.

• CS3 Scrubber oil spill. Not a reportable incident.

• CS3 Unit A oil spill. Not a reportable incident.

• KP490 oil to ground. Environmental Incident Reportable.

• Wasleys CS oil spill was contained. Not reportable.

Injuries:

• Employee was travelling rough terrain when a tyre blew out, causing injuries requiring rest. This incident was classified as an LTI.

• Employee was working with the reticulation when a palm prong entered his

hand. This injury was classified as a MTI.

• Employee bitten by a spider. This incident was classified as a FAI. • Employee was conducting housekeeping when he injuried his right leg. This

incident was classified as a FAI. • Employee lost his footing and slipped into a hole causing injury. This incident

was classified as a FAI. • Food poisoning. This incident was classified as a MTI.

8.0 THREATS TO THE PIPELINE

8.1 S2885 Risk Assessment The Risk Assessment commenced in 2001 and was completed in February 2002. This assessment included the Moomba to Adelaide Pipeline, all laterals and the 500mm Loop Line from Wasleys to Torrens Island.

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8.2 Other Third party activity is identified as the greatest risk to cause damage to the Moomba to Adelaide Pipeline. Unauthorised activity on the pipeline easement is the greatest concern.

The risks identified are from landowners erecting fences or establishing new vineyards and changing the land use, utilities and councils installing new services and unauthorised use of heavy machinery and earth moving equipment on the easement.

Natural events such as erosion, flooding of pipeline and impact from floating objects, have the potential to cause pipeline and coating damage.

Epic Energy ensures the pipeline safety through regular, frequent road and aerial patrols plus pipeline warning signs. The risk assessment completed in 2002 will give a clearer understanding of any additional risks and supporting actions to rectify potential hazards.

9.0 OPERATIONS PROPOSED FOR 2003/2004 Intelligent pigging of the 550mm Moomba to Adelaide pipeline from CS7 to Torrens Island will be completed in 2003.

A comprehensive program to rectify shortfalls and carry out enhancements to various systems began in 2002 and will be continued in 2003.

Communications tower maintenance was carried out in 2002 and occurs on a three yearly basis and will therefore occur in 2005.

Projects have been raised to replace all rusted carbon steel fittings with stainless steel and all obsolete and antiquated equipment will be replaced and upgraded.

10.0 VOLUME OF PRODUCT TRANSPORTED Approximately 100,805TJ of natural gas were transported through the Moomba to Adelaide Pipeline in 2002.

11.0 STATEMENT OF EXPENDITURE Commercial in Confidence.

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12.0 KEY PERFORMANCE INDICATIONS The following key performance indicators have previously been established to monitor performance of operations and maintenance activities on the Moomba to Adelaide Pipeline.

2002

target

2002 actual

Comment

Cathodic Protection

1. % of pipeline that has an off pipe to soil potential greater than - 850mV (WINTER)

97% 97%

2. % of pipeline that has an off pipe to soil potential greater than - 850mV (Summer)

75% 95%

Third Party Incident

1. Number of times pipeline is damaged

0 0

2. Number of near misses (digging within 1m of pipeline)

1 1 A new fence was erected over the pipeline on Taylors road, Anglevale, a fence post was excavated 300mm deep within one metre on the pipeline

3. Unauthorised activity on easement

5 3 A fence was installed over the pipeline at KP 581.2. Nearest fence post was not within one metre of the pipeline.

The Burra Council graded the road near Boobarowie removing approx 400mm of top soil from the pipeline easement without notifying Epic Energy.

Heathgate Resources bogged a grader on the pipeline easement near Compressor Station 3.

4. Exposure of pipeline due to washout and wind erosion

6 5 Washouts occurred after heavy rains at Mulligans Creek on two occasions, each time exposing the top section of the pipeline for a short distance.

Heavy rains caused the Moorowie Creek to flow just south of Compressor Station 6 and exposed the pipeline.

The Balcoracana Creek near Compressor Station 4 flooded on several occasions exposing the top of the pipeline for several metres on two occasions.

Unplanned Gas Release

1. Number of Relief valve/vent discharges

5 4 Four relief valves operated in 2002 :

• Torrens Island Meter Station

• Compressor Station 1

• Compressor Station 4

• Symes Road Meter Station

The largest was approx 14 TJ from CS1 vent relief valve

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2002

target

2002 actual

Comment

2. Number of pipeline leaks (more than 200 m3/hr)

0 2 There was an incident at MLV 24 when the sealant injection nipple dislodged from the sealant line venting gas to atmosphere until repairs were completed. An estimated 6.9 GJ of gas was vented in this incident.

There was a minor gas leak from the body of the Beverley meter station regulator, the amount of gas released was minor

SCADA and Leak Detection

1. Reliability of SCADA 99.5% 99.8%

Environmental

1. Number of oil or other hydrocarbon spills

2 2 There was a minor oil spill at the Wasleys Compressor Station when the underground oil collection tank allowed a mixture of gas and oil to vent via the breathing pipework and contaminate the ground.

The contractor cleaning the meter tubes at Gepps Cross Meter Station allowed contaminated water from the cleaning process to spill to ground with the potential to enter the storm water drains.

2. Gas unaccounted for 0 0.01% Marginally off target

3. Total methane discharged 34.5 TJ This includes gas vented from unit starts and stops, as well as gas vented during routine maintenance on scrubbers, pig traps and filter vessels. This figure was higher than target, due to the vent valve mentioned above and MAP upgrade work.

13.0 ANNEX A - ASSESSMENT OF DECLARED OBJECTIVES

14.0 ANNEX B - PIPELINE CATHODIC PROTECTION DATA AND ON/OFF POTENTIALS PROFILES

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ANNEX A

2002 PL1 ANNUAL REPORT

DATED FEBRUARY 2003

ASSESSMENT OF DECLARED OBJECTIVES

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ASSESSMENT OF DECLARED OBJECTIVES OBJECTIVE GOAL(S) ASSESSMENT COMMENT

1. To avoid significant disturbance to land use or damage to infrastructure.

1.1 To minimise disturbance to land use and damage to infrastructure.

0 Several unavoidable excavations were carried out on the right of way to accommodate foreign crossings and new offtakes.

2. To promote and maintain soil stability. 2.1 To ensure there is no erosion on the easement.

-1 There was some evidence of erosion, primarily in creek beds.

3. To promote and maintain vegetation cover on the ROW.

3.1 To ensure that weeds and pathogens are controlled at a level that is at least consistent with adjacent land.

0 The presence of noxious weeds or pathogens on the right of way was consistent with the surrounding environment.

3.2 To maintain regrowth of native vegetation. 0 Revegetation was indistinguishable from the surroundings.

4. To minimise noise due to operations. 4.1 To ensure operations comply with noise standards.

0 Operational activities comply with noise regulations, under the Environment Protection Act 1993.

No complaints were received.

5. To minimise the potential for emissions that may cause public concern.

5.1 To ensure controlled emissions are reported and acted upon immediately.

0 Incidents were reported and remedial action was undertaken promptly.

6. To minimise the risks to public health and safety.

6.1 To adequately protect public safety during normal operation.

0 Risk assessment report demonstrates that the pipeline risks are Negligible, Low or ALARP, in accordance with AS 2885.

6.2 To adequately reduce the likelihood of fire associated with maintenance activities.

0 Risk assessment report demonstrates that the pipeline risks are Negligible, Low or ALARP, in accordance with AS 2885.

6.3 To adequately protect public safety during maintenance.

0 All maintenance activities were conducted in a controlled manner.

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2002 MOOMBA TO ADELAIDE PIPELINE ANNUAL REPORT

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ANNEX B

2002 PL1 ANNUAL REPORT

DATED FEBRUARY 2003

PIPELINE CATHODIC PROTECTION DATA AND ON/OFF POTENTIALS PROFILES

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Main Gas Line Full Line Surveys

500600700800900

100011001200130014001500

0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0

Kilometres

mV

Feb 01 Sep 01