2012 Annual Report Pipeline Licence 20 SA BORDER TO ...petroleum.statedevelopment.sa.gov.au/__data/assets/... · 2012 PL 20 Annual Report Page 4 of 30 1 INTRODUCTION This report is

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2012 Annual Report

Pipeline Licence 20

SA BORDER TO MERRIMELIA

SECTION OF THE

COOK TO MERRIMELIA OIL PIPELINE

For DMITRE – General Information

This report has been prepared in accordance with the requirements of the Petroleum and Geothermal Energy Act 2000 and the Petroleum and Geothermal Energy Regulations 2000 and covers all regulated activities in relation to PL 20 conducted for the Aquitaine B Joint Venture by Santos Ltd during the period March 13, 2012 – March 12, 2013.

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TABLE OF CONTENTS 1 INTRODUCTION .............................................................................................................................. 4

2 EXECUTIVE SUMMARY .................................................................................................................. 4

3 SUMMARY OF REGULATED ACTIVITIES ..................................................................................... 4

4 PERFORMANCE ............................................................................................................................. 4

5 INCIDENTS ...................................................................................................................................... 5

6 TECHNICAL INFORMATION ........................................................................................................... 5

Table 1 – SA Border to Merrimelia Pipeline (PL 20) Technical Data ................................................................ 5

Figure 1 – Cook to Merrimelia Oil Pipeline Alignment Plan – Cook to Keleary ............................................... 7

Figure 2 – Cook to Merrimelia Oil Pipeline Alignment - Plan Keleary to Merrimelia ...................................... 8

7 REGULATED ACTIVITIES – 2012 - CONSTRUCTION AND TESTING ......................................... 9

7.1 CONSTRUCTION ACTIVITIES .......................................................................................................... 9

7.1.1 Surveying ............................................................................................................................................... 9

7.1.2 Clear and grade and pre-ripping ........................................................................................................... 10

7.1.3 Pipe joining and stringing .................................................................................................................... 10

7.1.4 Pipe and components Installation......................................................................................................... 10

7.1.5 Cooper Creek Crossing ........................................................................................................................ 11

7.1.6 Testing ................................................................................................................................................. 11

7.1.7 Construction Completion ..................................................................................................................... 12

7.1.8 Facilities construction .......................................................................................................................... 12

8 LAND AND LAND OWNER MANAGEMENT ................................................................................. 12

9 ENVIRONMENTAL MANAGEMENT ............................................................................................. 13

10 EMERGENCY RESPONSE ....................................................................................................... 13

11 REGULATORY COMPLIANCE .................................................................................................. 13

12 REASONABLY FORESEEABLE THREATS .............................................................................. 13

12.1 RISK ASSESSMENT .......................................................................................................................... 13

13 MANAGEMENT SYSTEM .......................................................................................................... 14

13.1 ENVIRONMENT, HEALTH & SAFETY MANAGEMENT SYSTEM (EHSMS) ........................... 14

13.1.1 Hazard Standards ............................................................................................................................. 14

13.1.2 Training and Awareness .................................................................................................................. 14

13.2 AUDITS, ASSESSMENTS AND REVIEW PROCESSES ................................................................ 15

13.2.1 Environmental Audits ...................................................................................................................... 15

13.2.2 Health and Safety Hazard Audits .................................................................................................... 15

14 REPORTS ISSUED DURING THE 2012/13 LICENCE YEAR .................................................. 16

15 PROPOSED OPERATIONAL ACTIVITIES FOR 2013 ........................................................... 16

15.1 PLANNED OPERATIONS & MAINTENANCE ACTIVITIES ...................................................... 16

15.1.2 Leak Detection ................................................................................................................................. 17

15.1.3 Coating Integrity .............................................................................................................................. 17

15.1.4 Corrosion Protection ........................................................................................................................ 17

15.1.5 Electrical and Instrumentation ......................................................................................................... 17

15.1.6 Communications .............................................................................................................................. 18

15.1.7 Pigging operations ........................................................................................................................... 18

16 APPENDIX ................................................................................................................................. 19

Appendix 1 - Key Management System Elements ........................................................................................... 19

Appendix 2 - Environmental Objectives and Performance – Production and Processing SEO ........................ 21

2012 PL 20 Annual Report

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LIST OF ABBREVIATIONS

ALARP As Low As Reasonably Practicable AS 2885 Australian Standard 2885 Pipelines - Gas and Liquid Petroleum CMF Coriolis Mass Flow Micro Motion meters CMOP Cook to Merrimelia Oil Pipeline CP Cathodic Protection DMITRE Department for Manufacturing, Innovation, Trade, Resources and Energy EHS Environment, Health and Safety EHSMS Environment, Health and Safety Management System EMP Environmental Management Plan ERP Emergency Response Plan ESD Emergency Shut Down HSHS Health and Safety Hazard Standard IMP Integrity Management Plan IMS Incident Management System Kbbls Kilo barrels (1,000 barrels) KP Kilometre Point MIC Microbiological Induced Corrosion MLV Mainline Valve MPag Megapascals (gauge) PL 20 Pipeline Licence 20 PLC Programmable Logic Control PPE Personal Protective Equipment ROW Right of Way RTP Reinforced Thermoplastic Pipe SACBJV South Australian Cooper Basin Joint Venture SCADA Supervisory Control and Data Acquisition SEO Statement of Environmental Objectives


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1 INTRODUCTION

This report is submitted in accordance with the requirements of Pipeline Licence 20 and the SA Petroleum and Geothermal Energy Act and Regulations 2000. This report reviews activities carried out from 13 March 2012 to 12 March 2013, this being the first full year of PL 20. For this reporting period the pipeline was not operational and construction of the pipeline was the only regulated activity. This Annual Report for regulated activities was prepared considering the relevant Statements of Environmental Objectives (SEO).

2 EXECUTIVE SUMMARY

The Cook to Merrimelia pipeline has been constructed to transport liquid hydrocarbon from Cook (Qld) to Merrimelia (SA) and comprises a total length of approximately 170 km. This report relates to the portion of the pipeline covered by PL 20, which is the section of the pipeline from the SA border to Merrimelia - a distance of approximately 130 km. The Cook to Merrimelia Oil Pipeline (CMOP) is owned by Aquitaine B Joint Venture. It will be operated and maintained by Santos Ltd under the same regime as that applied to SACBJV. The conduct of all operational activity in PL 20 for future reporting periods will be consistent with the standards, systems and procedures in place for Santos operated assets in the Cooper Basin.

3 SUMMARY OF REGULATED ACTIVITIES

This report reviews activities carried out during 13 March 2012 to 12 March 2013 and intended activities for 13 March 2013 to 12 March 2014.

4 PERFORMANCE

The activities covered by this report are administered in accordance with the Petroleum and Geothermal Energy Act 2000, the Petroleum and Geothermal Energy Regulations (2000) and the relevant SEO’s.

There was good compliance with the requirements of the Act and the Regulations and the SEO. There were no reportable incidents during the period and the regulatory authority, DMITRE, was kept informed about the construction progress throughout the construction process.

In accordance with the Regulations a performance assessment is also provided with

regard to the Statement of Environmental Objectives.


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5 INCIDENTS

The Petroleum and Geothermal Energy Act 2000 and the relevant SEO define all events that are required to be reported to DMITRE. There were no incidents resulting in any injury to any member of the public, nor were there any Serious Incidents recorded during the reporting period for PL 20 requiring reporting as soon as practicable after the occurrence.

6 TECHNICAL INFORMATION

Table 1 summarizes the technical aspects of PL 20 and Figures 1 and 2 show the pipeline system diagrammatically in alignment plans.

Table 1 – SA Border to Merrimelia Pipeline (PL 20) Technical Data

Date Constructed 2012 - 2013 Date Commissioned 2013 Length PL 20 – SA Border to Merrimelia

130.2 km

Length pipeline - Cook to Merrimelia 170.2 km Diameter DN 100 External Diameter 130 mm

Wall Thickness 15.37 mm

Material: FP601HT/FP601 RTP MAOP 9.280 MPag Pressure Control Device PAHH set at 8.350 MPag Coating (high temperature EL Joints) Densyl Tape

Coating (low temp. standard Joints) Denso Tape Depth of cover Nominal 750 mm (R1) increased to

2000 mm at major roads, dunes and major creek crossings

Emergency Shutdown Valves (actuated)

Cook (KP 0), Keleary (KP76), Cooper Creek ( North – KP 151 and South – KP 153),

Merrimelia (KP 170) Main Line Valves (manually operated) KP: 0.3, 10, 28, 44, 64, 82, 88, 97, 101, 120,

135 Fluid Liquid Hydrocarbon, nominal density 773 kg/m3

at 15.6 °C Meter Stations Flow metering at Merrimelia. One Coriolis

service meter and one Coriolis proving meter. Custody transfer quality.

Corrosion Protection Sacrificial anode system for steel risers and steel joint fittings

SCADA system Integrated with Moomba SCADA system. Fibre


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optic system installed with pipeline. Pipeline controlled from Moomba.

Leak Detection System Atmos International Wave and Pipe LDS


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Figure 1 – Cook to Merrimelia Oil Pipeline Alignment Plan – Cook to Keleary


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Figure 2 – Cook to Merrimelia Oil Pipeline Alignment - Plan Keleary to Merrimelia


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7 REGULATED ACTIVITIES – 2012 - CONSTRUCTION AND TESTING

Santos field pipelines are designed, constructed and operated in accordance with AS 2885 and Santos engineering standards. There were no operational activities undertaken on the pipeline system during the reporting period. The construction activities were the only regulated activities undertaken during the reporting period. The construction activities and broad planned operational and maintenance activities for the upcoming operational phase of this pipeline system are described below. Construction of the pipeline was carried out in accordance with AS 2885.1 (design and construction) and with AS 2885.5 (field pressure testing). Compliance with the approvals requirements set out under AS 2885.1 is summarised in AS 2885 Approvals Matrix. This will be provided to DMITRE in a lead up to commissioning during the next reporting period. Individual Integrity Management Plans (IMPs) are in place for each pipeline in the Santos network. These IMP’s indicate the activities and frequencies of monitoring, mitigation and inspection activities required to manage the integrity of each asset, based on estimated risk analysis. A dedicated IMP has also been developed for the Cook to Merrimelia Oil Pipeline and will be provided to DMITRE in a lead up to commissioning during the next reporting period. Operation and Maintenance of pipelines is managed by the Santos Pipeline Asset Management System which sets standards for integrity management and design life review to ensure EHS risks are ALARP. This management system will also be applied to this pipeline.

7.1 CONSTRUCTION ACTIVITIES

Construction activities commenced in late August 2012 and consisted of key components listed further below. At the peak of construction activities, the pipeline construction crew comprised around 60 personnel. The site personnel were usually accommodated in two contractor’s camps, either Cook and Coonatie or Coonatie and Santos permanent camp at Tirrawarra. The crews commuted to site using designated access roads and tracks.

All construction activities were undertaken in strict compliance with the construction contractor’s Environmental Management Plan and relevant Santos EHS Management Systems. Contractor’s performance was monitored on a daily basis by contractor’s environmental representative and by a Santos on-site supervisor

7.1.1 Surveying

On site preconstruction and construction survey and pegging was undertaken to determine the optimal route for the pipeline, avoid cultural heritage sites and minimise the environmental footprint left by the construction activities. As-constructed survey was conducted to determine the exact as-constructed location of the pipe, inclusive of


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the depth of burial. A survey crew of three to four surveyors was generally utilised across two spreads. Cultural heritage monitors accompanied the survey crew, where it was determined as necessary, to ensure that cultural heritage sites were left unharmed.

7.1.2 Clear and grade and pre-ripping

Two clear and grade crew spreads were employed to prepare the surveyed and approved pipeline right of way (ROW) for the installation of the pipeline. The clearing and grading was achieved by using dozers and graders and dozers were used to pre-rip the centreline in preparation for ploughing-in of the pipe strung along the ROW directly from the shipment coils. By using the ploughing-in technology, the ROW width was kept to a minimum, averaging approximately 12 metres.

7.1.3 Pipe joining and stringing

The pipe was delivered to site on reels containing approximately 620 metres coils. The unwound pipe was joined by trained and Flexpipe certified crews and strung along the ROW in readiness for the ploughing-in installation process.

7.1.4 Pipe and components Installation

Where the terrain or other special conditions such as road crossings or foreign services crossings did not call for open excavation, the joined pipe string was transferred onto the ploughing machine and ploughed directly into the pre-ripped trench along with the fibre optic cable at a guided separation of approximately 150 mm from the pipeline. The whole pipeline has 11 buried, manually operated, mainline valves (MLVs) installed along the 170 km length. Eight of these are installed within the PL 20 domain and located at between 10 km and 20 km spacings. In addition, at approximately half way point near Keleary satellite, there is an above ground ESD actuated valve that can be remotely shut from the Moomba Control centre. There are also a pig launcher and pig receiver valves installed at this location. Each buried valve is housed in a concrete cylindrical pit with access for maintenance and repairs. The valves are operable from outside of the pit by using a purpose made extension handle. Each MLV pit location is protected with 150 mm bollards. Above ground terminations of the buried pipeline through steel risers occur at the end of line facilities at Cook and Merrimelia and at the midline station at Keleary. Where the pipeline crosses the environmentally sensitive area surrounding Cooper Creek, between kilometre points (KP) 151 and 153, two buried actuated ESD valves with remote control have also been installed to ensure rapid pipeline isolation response in the event of an emergency. The pipeline between these two valves is encased in a 2 km, 250 mm diameter high density polyethylene pipe sleave to further


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ensure that in the unlikely event of a leak the escaped product will be contained within the sleave without affecting the creek floodplain environment.

7.1.5 Cooper Creek Crossing

The encased crossing of Cooper Creek was installed between KP 150.65 and 152.65 by using the ploughing-in technology. The Creek bed at the crossing point contained no water in it and therefore a conventional crossing technology rather than horizontal directional drilling was employed. The environmental footprint was kept to a minimum with the ROW width being kept to as low as 8 metres. This is shown in the frame below.

7.1.6 Testing

Completed sections of the pipeline were divided into test sections for the purpose of field pressure testing of the pipeline by hydrostatic testing in accordance with AS 2885.5. The test sections for the entire pipeline are shown in the following table.

Eleven failures were observed over the 170 km of the pipe tested. Each failed section of pipe was removed and subjected to detailed investigation by the installation contractor. The majority of the observed failures were attributed to moisture ingress

Test Pack -

Section

START KP

(m)

REFERENCE END KP

(m)

REFERENCE

001 0 Cook Oil Facility 9,788 1st FOC Splice Box

002 9,788 1st FOC Splice Box 27,800 Arrabry Road

003 27,800 Arrabry Road 44,145 Cordillo Down Road

004 44,145 Cordillo Down Road 63,729 Access Point 8

005 63,729 Access Point 8 76,350 Keleary Oil Facility

006A 76,355 Keleary Oil Facility 81,995 Access Point 6

006B 81,995 Access Point 6 , 100,700 Access Point 5

007 100,700 Access Point 5 119,500 Cuttapirrie Road

008 119,500 Guttapirrie Road 135,100 Coonatie Road

009 135,100 Coonatie Road 152,680 Cooper Creek (West)

010 152,680 Cooper Creek (West) 170,500 Merrimelia Oil Facility


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into the pipe ends during transportation and storage prior to the installation. The failed sections were replaced and retested. Other locations along the pipeline where moisture presence was possible were subjected to field testing and replacement where deemed necessary.

7.1.7 Construction Completion

The pipeline construction reached practical completion on 24 January 2013. As part of the construction completion process the construction contractor submitted to Santos an extensive dossier of project documentation; Manufacturer’s Data Records.

7.1.8 Facilities construction

The end of line facility at Merrimelia and the midline facility at Keleary were constructed by Transfield. The construction activities commenced in December 2012 and were nearing completion at the end of this reporting period. The construction of the midline facility at Keleary comprised site preparation, installation of an actuated ESD valve that is remotely accessible to the Moomba Field Controllers, provision for a future tie-in, a pig receiver valve and a pig launcher valve and the associated SCADA equipment. The construction of the end-of-line facility at Merrimelia comprised site preparation, installation of fiscal metering, an actuated ESD valve that is remotely accessible to the Moomba Field Controllers, a pig receiver valve, a tie-in point to the existing facility and the associated SCADA equipment.

8 LAND AND LAND OWNER MANAGEMENT

There are two properties which the pipeline has crossed along the SA border to Merrimelia section of the pipeline. These properties are the Innamincka Regional Reserve and Gidgealpa. Notices of entry were served on to the affected landowners prior to disturbance activities taking place. Close relations with the land owners / occupiers were maintained for all activities. Santos regularly liaised with these stakeholders in promoting awareness of the works carried out in relation to the pipeline facilities on these properties. In September 2012 Santos executed the Yandruwandha Yawarrawarrka Petroleum Conjunctive Indigenous Land Use Agreement Acceptance Deed.


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9 ENVIRONMENTAL MANAGEMENT PL 20 requires compliance of the regulated activities with, among other mandatory conditions, the Statement of Environmental Objectives. The project planning process put environmental management at the forefront of priorities. The

Santos Environment, Health and Safety Management System (EHSMS) was utilised in developing the project environmental system and the construction contractor was required to demonstrate its EHS management system compliance with the Santos standards. The Contractor carried out the construction activities while following the key components tailored for the project:

• Health, Safety, Security & Environment Management Plan

• Construction Environment Management Plan

Appendix 2 to this Report contains the “Assessment of Declared Objectives” completed for the pipeline during the reporting period.

10 EMERGENCY RESPONSE

There was no emergency event in relation to PL 20 during this reporting period. An Emergency Response Plan (ERP) has been developed for activities in South Australia, including PL 20. In the event of an incident, resources would be mobilised to assist.

11 REGULATORY COMPLIANCE

Every endeavour was made to ensure that design, manufacture, construction and testing of all appropriate facilities, was carried out in accordance with AS 2885. There are no known outstanding non-compliance issues for this pipeline that Santos Ltd is aware of against:

• The Petroleum and Geothermal Energy Act & Regulations 2000

• The Pipeline Licence (PL 20)

• The Statement of Environmental Objectives Any non-compliance identified would be logged in the IMS where it would be tracked through to conclusion.

12 REASONABLY FORESEEABLE THREATS

There were no serious threats identified during construction of this pipeline during the reportable period or serious foreseeable threats other than those identified and addressed during the pipeline SMS.

12.1 RISK ASSESSMENT

Construction risks were managed to as low as reasonably practicable (ALARP). The


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outcomes of risk reviews regarding the construction activities were captured in the relevant risk registers.

Annual risk assessment will be carried out on this pipeline as part of the pipeline integrity review process.

13 MANAGEMENT SYSTEM

Design and construction activities in relation to PL 20 were conducted in accordance with AS 2885. A summary of compliance with AS 2885 approvals requirements is documented in AS 2885 Approvals Matrix for the Cook to Merrimelia Oil Pipeline (GPA Document No. 12099-COM-002).

Design and construction activities were managed in accordance with the Santos Environment, Health and Safety Management System (EHSMS) standards and contractors’ standards that were approved by Santos as meeting Santos’ EHSMS standards prior to the activities taking place. These included construction management plans and environmental management plans, quality management plans and other applicable management system elements. A summary of key elements of the Project EHSMS is outlined in this section and the applicable EHSMS Standards are listed in Appendix 1.

13.1 ENVIRONMENT, HEALTH & SAFETY MANAGEMENT SYSTEM (EHSMS) Prior to the construction and during the construction activities, the AS 2885.1 pipeline Safety Management Study (SMS) process was undertaken in accordance with the AS 2885.1 Standard.

EHSMS comprises both management standards and hazard standards (refer Appendix 1 for details) and was implemented as applicable. Implementation was monitored and management standards performance was validated as appropriate by the use of Santos supervisory personnel and designated internal auditors to monitor compliance with the EHSMS. Improvement initiatives highlighted by the EHSMS audits were implemented where required.

13.1.1 Hazard Standards

Hazard Risk and Risk management Registers were utilised to capture identified risks and controls. Significant hazards were identified and reported through the Santos Incident Management System (IMS) and through daily onsite toolbox meetings.

13.1.2 Training and Awareness

All contractor personnel were required to complete relevant Santos inductions and training. This included:

• Excavation,

• Driving Vehicles in Cooper basin


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• Lifting,

• Confined Space Entry

• Cultural Heritage Awareness

13.2 AUDITS, ASSESSMENTS AND REVIEW PROCESSES

Audit and Review processes were used to determine contractor’s management system conformance, effectiveness and fitness for purpose. Appropriate EHSMS audit guides were used by internal Santos auditors to determine the status of conformance across all applicable management standards. The audit reports detailed corrective actions required to achieve full conformance. The construction contractor utilised its EHS personnel to undertake internal audit processes in addition to the monitoring by Santos personnel. The following list outlines work procedure and QM audits that were undertaken by Santos and or the contractor:

• Flexpipe Stringing Audit (11 Sept 2012)

• Flexpipe Jointing Audit (11 Sept 2012)

• Emergency Response Audit (20 Sept 2012)

• Quality Management Plan audit (15 Dec 2012)

In addition, onsite random audits on equipment safety and contractor’s work practices were conducted by Santos onsite supervisory personnel as part of their day to day responsibilities.

13.2.1 Environmental Audits

For the monitoring of the contractor’s environmental compliance with the environmental management system, the construction contractor utilised its EHS personnel to undertake environmental audit processes in addition to the monitoring carried out by Santos personnel. Construction Environmental Management Plan audit was undertaken by the Contractor in December 2012. Santos conducted a desktop Environmental Compliance Audit of the construction activities and issued the Report on 27 February 2013

Appendix 2 contains the “Assessment of Declared Objectives” completed for the Pipeline during the reporting period.

13.2.2 Health and Safety Hazard Audits

The following list outlines work procedure audits that were undertaken by Santos and or the contractor:

• Journey Management Audit (12 Sept 2012)

• Heat Stress Audit (17 Sept 2012)

• Health and Wellbeing Audit (25 Oct 2012)


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• Isolation and tag out Audit (25 Oct 2012)

14 REPORTS ISSUED DURING THE 2012/13 LICENCE YEAR

There was one Annual Report for Preliminary Survey Licence No 23 submitted to DMITRE for the Cook to Merrimelia Oil Pipeline during the reporting period. Other design and construction related reports were submitted to DMITRE upon request or for information, including:

• Notices of Entry

• AS 2885.1 SMS CMOP Close-out Report

• Contractor’s Construction Environment Management Plan

• Daily Construction Progress Reports

• FlexPipe Hydrostatic Test Procedure

• (Hydrostatic) Test Pack Register

• (Hydrostatic) Test Certificates

• Flexpipe Approval Close-out Report

• Pipeline Integrity Management Plan (CMOP)

• AS 2885.1 Approvals Matrix (CMOP)

• CMOP Commissioning Plan

• CMOP Commissioning Procedures

• Contractor’s Environmental Audit Report

• Pipeline Operating Plan (check)

• Pipeline Isolation Plan

• YY ILUA Acceptance Deed

15 PROPOSED OPERATIONAL ACTIVITIES FOR 2013

During 2013 (reporting period 13 March 2013 to 12 March 2014) the following activities are proposed for the Cook to Merrimelia Oil Pipeline.

• Complete commissioning and commence operations of the pipeline system, including the operation of the pipeline leak detection system

• Complete Easement and landholder compensation negotiations

• Complete all scheduled routine maintenance activities.

• Conduct all activities outlined in the pipeline IMP, i.e.: o Maintain continuous biocide injection via monthly injector checks. o Annual pipeline ROW survey o Annual pipeline CP test post potential survey

The key components of the proposed operational activities are outlined in this section.

15.1 PLANNED OPERATIONS & MAINTENANCE ACTIVITIES

The shipping pumps located in Cook are automatically started and are driven by the demand. While a local operator interface at Cook is not required for the pipeline operation,


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the operators are in attendance for other Cook Oil Facility operational purposes and can provide interface when required. The pumps may be locally shut down or remotely shutdown from the Moomba Control Room. Compulsory biocide dosing, regular pigging and product sampling / analysis will be carried out to eliminate/reduce the effects of Microbiological Induced Corrosion (MIC). A scheduled maintenance program and log will be put in place to monitor the usage of the biocide chemicals. The IMP for the pipeline will be followed and complied with during the operational phase.

15.1.1 Patrol Activities

The IMP for this pipeline requires an annual patrol of the Right of Way (ROW) to check the condition of the ROW, the pipeline risers, and signage.

15.1.2 Leak Detection

A proven proprietary leak detection system has been installed to meet operational, environmental and regulatory requirements.

Metering at Cook and Merrimelia and sensing points strategically located along the pipeline will provide input to the leak detection system via the fibre-optic cable. The system will provide surveillance under both dynamic and static conditions and is expandable to allow for addition of future side streams to the pipeline.

Detection of a leak will automatically stop the pipeline pumps and will close the pipeline inlet and outlet valves and actuated section valves at the Keleary and Cooper Creek MLV stations. Remote closure of section valves from the Moomba control centre is also possible.

15.1.3 Coating Integrity

There is no provision for intelligent scraper due to a slight reduction of the internal diameter at the pipeline joints. Internal corrosion effects due to MIC will be mitigated by controlled injection of biocide. External corrosion will be mitigated by tape-wrapping of all buried metallic structures and by sacrificial anodes installed at each buried metallic structure.

15.1.4 Corrosion Protection

Internal corrosion effects due to MIC will be mitigated by biocide injection. External corrosion mitigation will be achieved by appropriate coating and sacrificial anodes installed for every buried metallic structure along the pipeline. Monitoring of the CP potentials will be facilitated at CP test points distributed strategically along the pipeline.

15.1.5 Electrical and Instrumentation

Micro Motion Coriolis Mass Flow (CMF) transmitters are installed at Cook and


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Merrimelia. Both units will be used for leak detection system and specified for the custody transfer metering. The Micro Motion meters data is fed to an Allen Bradley PLC. Totalized flow is retained in the meters themselves and other required parameters can be calculated within the PLC.

The meters selected are capable of measuring the entire flow spectrum; from 40 to 500 m3/d within acceptable accuracy limits. Each metering skid has one service meter and a proving meter. The valving around the two meters is a double block and bleed type for provable isolation when zeroing and testing. The meters equipped with CMF200M sensor were certified at the factory for operations to a maximum of 10 MPag and meet the ANSI/API MPMS 5.6 for custody transfer measurement.

15.1.6 Communications

A fibre-optic cable has been installed together with the new pipeline for improved communications between Cook, Keleary and Moomba. Dedicated strands of this cable are used for leak detection and pipeline control for this pipeline.

15.1.7 Pigging operations

The IMP for this pipeline currently does not specify pigging frequency. The bulk of the pipeline is lined with high density polyethylene as the inner layer of Flexpipe. Pigging will be carried out on an as need basis (to be confirmed from observations made during the operational phase) to mitigate possible deposition of solids on the inside walls of the pipeline.


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16 APPENDIX

Appendix 1 - Key Management System Elements

The following is a list of the key elements of the Management System which were applied to the design and construction activities:

Santos EHSMS - Key Elements

• EHSMS01 EHS Policies

• EHSMS06 Training and Competency

• EHSMS08 Document and Records management

• EHSMS09 Hazard Identification, Risk assessment and Control (inclusive of applicable subset elements)

• EHSMS10 Contractor and Supplier EHS Management

• EHSMS11.1 Design Basis – Facilities and Equipment (inclusive of applicable subset elements)

• EHSMS12 Management of Change (inclusive of applicable subset elements)

• EHSMS13 Emergency Preparedness

• EHSMS14 Monitoring, Measurement and Reporting

• EHSMS15 Incident Investigation and Response (including EHSMS15.1 and 15.2)

• EHSMS16 Management system Audit and Review

• EHS Toolbox (web based application)

• EHS Standards (specific Environmental Hazard Standards)

• HSHS Standards (specific Health and Safety Hazard Standards)

• Santos Engineering Standards (as applicable)

Contractor’s Management System – key elements

• Project Execution Plan

• Cultural Heritage Clearance


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• Health, Safety, Security& Environment Management Plan

• Construction Environment Management Plan

• Rock Management Strategy for Ploughing

• Cooper Basin Emergency Response Plan

• Traffic Management Plan

• Human Resources Management Plan

• CMOP Cooper Creek Crossing Plan

• Quality Management Plan

• Inspection and Test Plan

• Contractor’s Daily onsite Toolbox meetings

• Contractor’s Daily Construction Progress Reports


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Appendix 2 - Environmental Objectives and Performance – Production and Processing SEO

Environmental Objectives

Assessment Criteria Guide to How Objectives Can Be Achieved Objective Achieved

Objective 1:

Minimise any safety risk to public and other third parties.

� Reasonable measures implemented to ensure no injuries to the public or third parties.

� All employees and contractor personnel complete a safety induction prior to commencement of work in the field.

� All employees and contractor personnel undertake a refresher induction every 2 years.

� Signage in place to warn third parties of access restrictions to operational areas, with particular warnings when potentially dangerous operations are being undertaken.

� Permit to Work systems in place for staff and contractors for appropriate work activities/tasks.

� Appropriate personnel protective equipment (PPE) is issued and available as required in accordance with company operating requirements and applicable standards.

� Pipelines are compliant with AS 2885 pipeline standards.

� Emergency Response Plan (ERP) and procedures are in place. Annual exercise of ERP.

� Communication of rig movements and other potential hazards associated with drilling and well operations to potentially affected parties prior to commencement of operations.

� Compliance with relevant speed restrictions on access roads and tracks.

� Measures implemented to minimise visibility of pipeline ROW at access track crossings (e.g. ROW width reduced to 9m, ROW doglegged so that less than 100m is visible either side of track, some trees or shrubs left on ROW to break line of sight, verge of the track reinstated).

� Reporting systems for recording injuries and accidents in place and annual (at minimum) review of records to determine injury trends.

� Implementation of appropriate corrective actions.

� Ensuring safety management plans are updated and reviewed.

� Wastewater disposal in accordance with Objective 11.

• There were no injuries to the public or third parties from the regulated activities


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Objective 2:

Minimise disturbance and avoid contamination to soil.

Construction Activities (e.g. pipelines and roads)

� No evidence of significant subsoil on surface (colour) on the pipeline ROW following construction.

� No subsidence is evident over pipeline trench.

� At pipeline dune crossings, dune profiles have been restored consistent with surrounding dune profiles.

� No visual evidence of soil compaction following remediation of the pipeline easement (e.g. hard soil, local water pooling).

� The extent of erosion on the ROW is consistent with surrounding land.

� No unauthorised off-road driving or creation of shortcuts.

� No construction activities are carried out on salt lakes or steep tableland slopes (as defined in EIR).

� 0, +1 or +2 GAS criteria are attained for goals related to this objective.

Fuel and Chemical Storage, Handling and Transportation

� No spills/leaks outside of areas designed to contain them.

� Soils remediated to a level


� Santos operational procedures and guidelines are in place and will be followed for construction activities, for example to conserve soil resources:

� topsoil is stockpiled separately from subsoil and respread during reinstatement

� no windrows remain after pipeline construction (except on dunes where some windrows are inevitable after reprofiling but will quickly disappear

� if a crown over the pipeline trench is left to alleviate subsidence, periodic breaches are left to avoid channelling water flows down the ROW

� areas of compacted soil are ripped

� Consider alternate routes during planning phase to minimise environmental impacts.

� Works are restricted to construction ROW.

� The need to traverse sensitive land systems and the method of managing the impacts must be justified in accordance with company procedures, recorded and available for auditing.

� Annual audit of construction practices.

Spill Response / Contingency Planning

� Results of emergency response procedures carried out in accordance with Regulation 31 show that an oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.

� Oil spill contingency plan (reviewed annually) is up to date with specific scenarios relating to spills to creeks and floodplain areas.

� Spill response equipment is audited annually.

� Annual spill response training exercise is undertaken.

� Refer to Section 3 “Reporting” for clarification of incident reporting requirements

• Santos construction standards were followed

• Minimised the width of ROW to as low as 8 metres where practicable with the ploughing installation method. The average ROW used was 12 metres

• Only a limited number of excavations to locate other services were undertaken. This was restricted to the smallest practicable area by using Vacuum suction equipment

• There was no unauthorised off road driving or creation of short cuts, in accordance with the EHSMS land transportation standard. All accesses were planned for optimal access using existing access routes, where available, while maintaining a small footprint

• The number of site visits was minimized

• All landowners were contacted prior to regulated activities. There were no landowner complaints

• ROW was subjected to a “flyover” aerial survey, following the pipeline construction completion in January 2013. This exercise confirmed the achievement of satisfactory reinstatement of the ROW.


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Objective 2 cont:

Minimise disturbance and avoid contamination to soil

as determined by the SHI Decision Framework.

� Also refer to Objective 12.

Oil/Condensate Spills (Pipeline/Road Transport)


� Level of hydrocarbon continually decreasing for in situ remediation of spills.

� Soils remediated to a level as determined by the SHI Decision Framework.

Waste Disposal (domestic, sewage and sludges)

� All domestic wastes are disposed of in accordance with EPA licensing requirements.

� No evidence of rubbish or litter on ROW or at campsites / facilities.

� No spills or leaks from sludge treatment process and sludge pits.

� No increase in contamination at LTUs designated treatment area.

Refer to assessment criteria for Objective 11.

.


� All fuel, oil and chemicals are stored, handled and transported in accordance with appropriate standards and guidelines e.g. Australian Standard AS 1940, Australian Dangerous Goods (ADG) Code, EPA guidelines 080/07 Bunding and Spill Management.

� Fuel and chemical storage, handling and transport procedures are reviewed and monitored in audit process.

� Records of spill events and corrective actions are maintained in accordance with company procedures.

� Spills or leaks are immediately reported and clean up actions initiated.

� Logged incidents are reviewed annually to determine areas that may require corrective action to reduce spill volumes in subsequent years (and drive continual improvement).

� Audit against EHSMS standards for underground storage tanks and bunds on a four yearly minimum frequency.


� Pipelines are compliant with AS 2885 pipeline standards � Pipeline Management System is reviewed annually. � Pipelines are inspected and maintained in accordance with Pipeline

Integrity Management System � Spills or leaks are immediately reported and clean up actions

initiated. � Records of spill events and corrective actions are maintained in

accordance with company procedures.

Waste Disposal (domestic, sewage and sludges)

� Site activities to be audited against EPA licence for Waste Depot on a minimum two years schedule.

� EHS04 Waste Management is adhered to. � Audit against EHS04 Waste Management – 4 yearly minimum. � Covered bins are provided for the collection and storage of wastes. � All loads of rubbish are covered during transport to the central waste

facility. � Disposal areas are not established in locations, which pose an

unacceptable hazard to stock or wildlife. � Sewage treatment facilities to be operated in accordance with design

criteria.

Refer to Objective 11.Refer to Objective 11.

Contractor’s Emergency procedures for spill responses detailed in contractor’s Environmental Management Plan (EMP) were in place as verified by Santos onsite Representatives (details available upon request)

• Contractor’s Spill response equipment and procedures were audited with satisfactory outcome

• Waste generated by the construction activities, inclusive of waste generated in mobile camps, was disposed of in a prescribed manner through Santos’ waste disposal contractor and in accordance with Santos’ procedures and standards.

• Septic tank systems were regularly emptied and cleaned.


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Objective 3:

Avoid the introduction or spread of pest plants and animals and implement control measures as necessary.

� No weeds or feral animals are introduced to, or spread in, operational areas as a consequence of activities.

� Weed management plans are implemented where priority weed species are identified.

� Where appropriate, weed and feral animal management strategy is in place (avoidance and control strategies).

� Vehicle and equipment wash downs to be initiated in accordance with the management strategy.

• Existing roads and tracks used where possible, in accordance with the EHSMS land transportation standard.

• There have been no reports of weeds and feral animal introduced

• Number of site visits kept to a minimum, only project critical personnel were authorized to visit site

• All vehicles and equipment used during the construction activities have been located in the area for some time or subjected to wash as per the contractor’s EMP, hence minimising the possibility of introduction of weed and disease for other areas due to vehicles and equipment.

Objective 4:

Minimise disturbance to drainage patterns and avoid contamination of surface waters and shallow ground water resources.


� 0, +1 or +2 GAS criteria are attained for goals related to this objective

� Construction activities (e.g. access tracks or pipelines) are located and constructed to maintain pre-existing water flows (i.e. channel contours are maintained on floodplains and at creek crossings).

� No water (surface or groundwater) contamination as a result of construction activities.



� Constructed activities undertaken are designed and managed to avoid diversion of water flows.

� Sensitive land systems (e.g. wetlands) avoided wherever possible. Where activities are undertaken in or near these areas, appropriate review, assessment and mitigation measures are in place to ensure that surface water flows are maintained and contamination of surface water and groundwater is avoided.


� All fuel, oil and chemicals are stored, handled and transported in accordance with appropriate standards e.g. Australian Standard AS 1940, Australian Dangerous Goods (ADG) Code, EPA guideline 080/07 Bunding and Spill Management.

� Fuel and chemical storage, handling and transport procedures are

• There were no reported incidents of contamination of surface water and groundwater

• Existing tracks and roads were used where possible

• Ploughing method for the installation minimised disturbance to soil and drainage patterns

• There were no surface or below ground water disturbance activities undertaken during the reporting period

• Emergency response procedures for spill response were in place

• Spill response equipment and procedures were audited on site for compliance with Santos’ requirements.


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Objective 4 Cont:

� Soils remediated to a level

as determined by the SHI Decision Framework. Also refer to Objective 12.

� No water (surface or groundwater) contamination as a result of these activities.



� Level of hydrocarbon continually decreasing for in situ remediation of spills.

� Soils remediated to a level as determined by the SHI Decision Framework

reviewed and monitored in an audit process. � Records of spill events and corrective actions are maintained in

accordance with company procedures. � Spills or leaks are immediately reported and clean up actions

initiated. � Logged incidents are reviewed annually to determine areas that may

require corrective action to reduce spill volumes in subsequent years (and drive continual improvement).

� Implementation of the SHI Decision Making Framework approved in January 2010.


� Pipelines are compliant with AS 2885 pipeline standards.

� Pipeline Management System is reviewed annually.

� Pipelines are inspected and maintained in accordance with Pipeline Integrity Management System.

� Spills or leaks are immediately reported and clean up actions initiated.

� Records of spill events and corrective actions are maintained in accordance with company procedures.

� Refer to Section 3 “Reporting” for clarification of incident reporting requirements

Spill Response / Contingency Planning

� Results of emergency response procedures, carried out in accord with Regulation 31, show that the oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.

� Oil spill contingency plan (reviewed annually) is up to date with specific scenarios relating to spills to creeks and floodplain areas.

� Spill response equipment is audited annually.

� Annual spill response training exercise is undertaken.

• The Pipeline has been designed and constructed in accordance with AS 2885.1, hydrostatically tested in accordance with AS 2885.5 and will be operated in accordance with AS 2885.3


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Objective 5: Avoid disturbance to sites of cultural and heritage significance.

� Proposed well sites and access tracks have been surveyed and any sites of Aboriginal and non-Aboriginal heritage identified.

� Any identified cultural and heritage sites have been avoided.

� Consultation with stakeholders (i.e. government agencies, stakeholders etc) in relation to the possible existence of heritage sites, as necessary.

� Heritage report forms completed for any sites or artefacts identified and completed forms forwarded to the Aboriginal Heritage Branch, Aboriginal Affairs and Reconciliation Division (AARD).

� Survey records are kept and are available for auditing.

� Areas requiring remediation which lie outside previously surveyed sites should be surveyed in accordance with company heritage clearance procedures.

� Induction for all employees and contractor addresses heritage site recognition and management.

� A procedure is in place for the appropriate response to any sites discovered during operations.

Note: Where a negotiated agreement or determination for heritage clearance is in place, compliance with the negotiated agreement or determination takes precedence over the above criteria.

• All relevant aboriginal groups were notified before the commencement of cultural heritage clearance activities

• Aboriginal monitors were used to identify and avoid cultural heritage sites

• Existing roads and tracks were used wherever possible.

• Number of site visits were kept to a minimum

• All construction and survey personnel were appropriately trained in recognising Cultural Heritage matters

• A process was in place to appropriately report CH sites during the period.

• All sites identified during this period were recorded and avoided

Objective 6 Minimise loss of aquifer pressures and avoid aquifer contamination.

� There is no uncontrolled flow to the surface (i.e. no free flowing bores)

� The volume/flow of water used by the Merrimelia Satellite is continuously monitored to ensure appropriate management.

� Water usage is monitored, reviewed and management strategies implemented to minimise wastage.

� Review water licensing requirements and allocation plans.

.

• There was no drilling or uncontrolled water flow to the surface as part of the construction activities


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Objective 7: Minimise disturbance to native vegetation and native fauna.

Construction Activities

Borrow Pits

Fuel and Chemical Storage and Management

� Refer to assessment criteria for objectives 2 and 4.

Waste Management

� Refer to assessment criteria for objectives 2 and 4.

Native Vegetation Act SEB

� Significant Environmental Benefit (SEB) for native vegetation clearance approved by PIRSA (where delegated authority applies) or Native Vegetation Council (NVC).

� Significant environmental benefit obligation is ultimately satisfied / implemented.

Fauna Management

Construction Activities

Borrow Pits

Fuel and Chemical Storage and Management

Waste Management

� Covered bins are provided for the collection and storage of putrescible wastes.

� All loads of rubbish are covered during transport to the central waste facility.

� Refer to Objective 11.

Native Vegetation Act SEB

� Work (or payment to Native Vegetation Fund) undertaken to achieve an SEB for native vegetation clearance.

� SEB requirement either: - determined using the Guidelines (DWLBC 2005) or - negotiated with PIRSA or the Native Vegetation Council where

SEB calculation differs from the standard methodology in the Guidelines.

Fauna Management

� No domestic pets allowed at camps or worksites.

� Feeding of wildlife (e.g. dingoes) is not permitted.

• All rare, vulnerable and endangered species sites were avoided

• Clearing of native vegetation during the reporting period was kept to minimum during the construction and only took place where there was no other option available.

• There were no reports of undue damage to native vegetation as a result of this activity.

• The number of site visits were only as deemed necessary

• Vegetation re spread over ROW during reinstatement took place.

• All waste generated as part of the activities was collected and taken off site and disposed of as per Santos procedures.

• Any hazardous or regulated waste was taken to Moomba and disposed of as per Santos and/or Regulated requirements

Objective 8:

Minimise air pollution

and greenhouse gas

emissions.

Gathering Systems/Satellite Facilities/Merrimelia Plant

� Compliance with EPA requirements.

Gathering Systems/Satellite Facilities/Merrimelia Plant

� Conduct production operations in accordance with appropriate industry accepted standards.

� Continually review and improve operations.

� Appropriate Emergency Response Procedures are in place in case of a gas leak.

Construction activities were conducted in accordance with established pipeline construction standards. The ploughing technology provided further contribution to minimising the environmental footprint, including emissions, by reduced construction time and the number of heavy equipment used.


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Objective 9: Maintain and enhance partnerships with the Cooper Basin community.

� No unresolved reasonable complaints from the community.

� Relevant affected parties are notified and consulted on proposed activities.

� Forward development plans are presented to the local community. � Local community projects and events are sponsored and supported

where appropriate. � Industry membership of appropriate regional land management

committees and boards

• Relevant parties were notified of proposed activities and future development plans through the Notices of Entry and regular liaison between Santos on-site representative and relevant stakeholders.

• Santos, in general, maintains active representation on relevant local committees and boards and engages through participation in local community activities and events.

• Emergency assistance is provided to landholders, tourists and third parties (e.g. stranded tourists, mechanical breakdowns, communications)

• Santos supports and assists local businesses

Objective 10:

Avoid or minimise disturbance to stakeholders and/or associated infrastructure

� No reasonable stakeholder complaints left unresolved.

� Induction for all employees and contractors covers pastoral, conservation, tourism, legislation and infrastructure issues.

� Relevant stakeholders are notified prior to survey and construction of well sites, camp sites and access tracks and undertaking of operations (pursuant to the Regulations). Borrow pits left open (unrestored) if requested by stakeholder and upon receipt of letter of transfer of responsibility to stakeholder.

� Gates or cattle grids are installed to a standard, consistent with pastoral infrastructure instead of fences where crossings are required for access.

� All gates left in the condition in which they were found (i.e. open/closed).

� Fences repaired to ‘as before’ standard following pipeline construction.

� Potential sources of contamination (e.g. formation water ponds) are fenced as appropriate to prevent stock access.

� Written evidence that stakeholder is satisfied with water disposal arrangements.

� System is in place for logging stakeholder complaints to ensure that

• Company and contractor employees were advised of the requirements in respect of pastoral interests.

• Relevant stakeholders, including authorities, were advised of construction activities prior to commencement.

• Gates were left “as found”.

• Where necessary, areas of potential contamination were fenced to prevent stock access.

• A system is in place to record stakeholder complaints. No such complaints were recorded during the reporting period.

• Cattle management systems (Cattle Care) are recognised and were complied with.


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Objective 10 cont.

issues are addressed as appropriate.

� Requirements of the Cattle Care and Organic Beef accreditation programs are complied with.

� In recognised conservation reserves (i.e. Innamincka Regional Reserve) excavations are left in a state as agreed.

Objective 11:

Optimise (in order of most to least preferable) waste avoidance, reduction, reuse, recycling, treatment and disposal

� Domestic wastes are disposed of in accordance with EPA licensing requirements.

� Wastewater (sewage and grey water) disposed of in accordance with the Public and Environmental Health (Waste Control) Regulations 1995 or to the Department of Health’s satisfaction.

� No spills or leaks from sludge treatment process and sludge pits.

� No increase in contamination at LTUs designated treatment area

� Chemicals and oil are purchased in bulk. ‘Bulki bins’ or other storage tanks are in place for large volume items.

� Fencing around waste disposal facility is regularly inspected and maintained.

� Waste streams are segregated on site to maximise opportunities for waste recovery, reuse and recycling.

� Evidence/records are maintained showing that recyclable material has been returned to Moomba Waste Management Depot.

� Production of waste is minimised by specifying reusable, biodegradable or recyclable materials in procurement, where practical.

� Waste audit conducted at 5 year minimum interval.

� Waste water (sewage) disposal is where possible in accordance with the Public and Environmental Health (Waste Control) Regulations 1995 (which require that the waste water disposal system must either comply with the Standard for the Construction, Installation and Operation of Septic Tank Systems in SA or be operated to the satisfaction of the Department of Health) and the Environment Protection (Water Quality) Policy 2003.

� Evidence/records maintained to show that appropriately designed sewage facilities have been constructed.

Refer Objective 4 above. The construction contractor fully utilised Santos’ Integrated Waste Management contract which has been put in place to cover the collection, transport, segregation and disposal of waste, including recycling.

• Septic tank systems were regularly emptied and cleaned.

Objective 12: Remediate and rehabilitate operational areas to agreed standards.

Contaminated Site Remediation

Construction Site and Access Track Restoration

Borrow Pit Restoration

Production Facility

� Rehabilitation/abandonment plans for regulated activities will be developed in consultation with relevant stakeholders.

Construction Site and Access Track Restoration

Compacted soil areas have been ripped (except on gibber and tablelands) and soil profile and contours are reinstated following completion of operations.

There were no stakeholder complaints recorded No contaminated sites were created during the construction activities Access tracks, where appropriate were restored in accordance with restoration


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Objective 12 cont.

Abandonment

Pipeline Abandonment

Pipeline Abandonment

The following steps will typically be undertaken unless otherwise agreed with the regulator and stakeholders:

� all aboveground pipes and supports will be assessed for the condition of the pipe for either salvage or for dismantling and re-use.

� all underground pipe work will be cut-off (at a minimum depth of 750mm below the natural surface or at pipeline depth, removed and blinded below the surface.

� all aboveground signs and markers will be removed. � all pipeline protection systems will be removed to allow the pipeline

to degrade in-situ. � monitoring and auditing of abandoned pipelines will be undertaken. � all pipelines which are partially or wholly left in-situ will be accurately

mapped and recorded. Records will be prepared and submitted to the appropriate authority.

guidelines. Only existing borrow pits were utilised where required during the construction activities No abandonment activities took place during the construction

Objective 13: Minimise as far as reasonably practicable interruptions to natural gas supply.

No interruptions to natural gas supply that cause significant social disruption

� Adequate contingencies are in place which seek to address a prudent level of security of supply in the case of short and unforseen interruption events (e.g. adequate gas storage).

� Pipelines are designed, operated and maintained in accordance with AS 2885.

Not applicable to oil pipeline

Documents

2012 Annual Report Pipeline Licence 20 SA BORDER TO ...petroleum.statedevelopment.sa.gov.au/__data/assets/... · 2012 PL 20 Annual Report Page 4 of 30 1 INTRODUCTION This report is