South East Australia Gas Pty Ltdenergymining.sa.gov.au/__data/assets/pdf_file/0008/... · TapRoot Incident Investigation & Root Cause Analysis Advanced Greenhouse Gas Compliance Next

South East Australia Gas Pty Ltd

Annual Report

South Australian Pipeline Licence (PL 13)

2009 – 2010 Licence Year

Port Campbell to Adelaide

Natural Gas Transmission Pipeline

Annual Report ( PL13 ) – Port Campbell to Adelaide Pipeline


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TABLE OF CONTENTS

1.0 SCOPE ............................................................................................................................... 3

2.0 SUMMARY OF REGULATED ACTIVITIES ............................................................................ 3

2.1 Training ........................................................................................................... 3

2.2 Patrol Activities ................................................................................................ 4

2.3 Operations and Maintenance Activities............................................................... 4

2.4 Cathodic Protection Potential Survey.................................................................. 6

2.5 Excavations of DCVG Pipeline Coating Survey Defects........................................... 7

2.6 Pipeline Location and Referral Services ............................................................... 7

2.7 Emergency Response & Preparedness ................................................................ 7

3.0 REGULATORY COMPLIANCE ............................................................................................. 8

4.0 RECTIFICATION OF NON‐COMPLYING ACTIONS .............................................................. 8

5.0 MANAGEMENT SYSTEM AUDITS ...................................................................................... 9

5.1 Occupational Health and Safety ......................................................................... 9

5.2 Environment .................................................................................................. 11

6.0 REPORTS AND DATA ....................................................................................................... 11

7.0 INCIDENT MANAGEMENT .............................................................................................. 12

8.0 RISK MANAGEMENT ....................................................................................................... 12

9.0 PROPOSED OPERATIONAL ACTIVITIES 2010 ‐ 2011 LICENCE YEAR................................ 13

10.0 VOLUME OF REGULATED SUBSTANCE TRANSPORTED .................................................. 14

11.0 STATEMENT OF ANNUAL EXPENDITURE ........................................................................ 14

APPENDIX A – ASSESSMENT OF COMPLIANCE AGAINST SEO OBJECTIVES................................ 15

APPENDIX B – REPORTABLE INCIDENTS DURING THE LICENCE YEAR ........................................ 31

APPENDIX C – STATEMENT OF ANNUAL EXPENDITURE............................................................. 32

APPENDIX D – EASEMENT REHABILITATION SUMMARY ........................................................... 33



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1.0 SCOPE

South East Australia Gas Pty Ltd (SEA Gas) submits this report in accordance with Regulation 33 (1) of the Petroleum and Geothermal Energy Regulations (SA) 2000, in relation to its operation of the SEA Gas natural gas transmission pipeline during the licence year (1 July 2009 to 30 June 2010, as per approval from the Minister dated 3 June 2004).

This report validates operational compliance along the South Australian portion of the SEA Gas pipeline in accordance with the SEA Gas Statement of Environmental Objectives (SEO); the conditions of Pipeline Licence No. 13 and the requirement of the Petroleum and Geothermal Energy Act (SA) 2000 and regulations under the Act.

2.0 SUMMARY OF REGULATED ACTIVITIES

During the license year SEA Gas complied with the intent of the Petroleum and Geothermal Energy Act (SA) 2000, its licence conditions and the intent of Australian Standard AS 2885, as there were no non‐compliances against stated environmental objectives , as detailed in the Statement of Environmental Objectives (SEO).

In accordance with Regulation 33.(2)(a) the following regulated activities were conducted during the licence year:

2.1 Training

SEA Gas operations personnel and its third‐party maintenance services providers and approved contractors, completed the following training during the licence year:

Nominated Permit Holder and Job Hazard Analysis Advanced Risk Assessment Emergency Warden Senior First Aid CPR Refresher Facility Maintenance Type B Appliance Operation & Maintenance HAZOP Leader Occupational Health & Safety Advanced Word 2007 Gas Markets Maintaining an SQL Service Database General Principles of Pipeline Design TapRoot Incident Investigation & Root Cause Analysis Advanced Greenhouse Gas Compliance Next Generation Leader Swagelok® Installation Spill Response Bristol Babcok RTU Operation & Maintenance Managing Meetings



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Media Management Torque Tamer Operation ISO 31000 Risk Management Standard release Victorian gas industry LUIS (interactive on‐line) incident management platform

2.2 Patrol Activities

Programmed aerial and ground patrols of the pipeline system were carried out during the licence year (Ref, Table 1).

Table 1 – Pipeline Patrol Schedule

Activity Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Weekly Road Patrol

Pelican Point PRMS to Williamstown MLV

Road Patrols

Iona PRMS (Vic) to Williamstown (SA) MLV

Aerial Patrols

Murray Bridge to Pelican Point (Rotary Wing) PRMS

Iona PRMS to Murray Bridge (Fixed Wing)

Daily Security Patrols

Williamstown & Munno Para MLV’s and Cavan PRMS

Observations arising from patrol activities are actioned in accordance with SEA Gas Fault Action Request (FAR) procedures.

2.3 Operations and Maintenance Activities

Scheduled and variable maintenance activities were conducted during the licence year (Ref. Table 2) and reviewed monthly in consultation with maintenance services providers.

Table 2 –Scheduled Maintenance Activities


Odorant/Gas Sampling & Analysis

Cavan PRMS

Calibrations of Gas Chromatographs

Cavan 1 PRMS

Cavan 2 PRMS

Torrens Island PRMS

Quarantine PRMS

Pelican Point PRMS



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Scraper Stations

Coomandook

A Q Q Q

Pelican Point Q H Q A

Main Line Valves

Yallamurray, Coomandook, Pallamana, Williamstown, Gawler, Munno Para, Bolivar, Cavan & Pelican Point

Metering Facilities

Naracoorte PRMS

A Q H Q

Jervois PRMS Q H Q A

Cavan Q A Q H

Torrens Island Q A Q H

Pelican Point Q H Q A

Corrosion Protection

Potential survey

Surge protection testing

A

Coomandook Compressor Station Maintenance

Site inspection (every second week)

Scheduled maintenance A Q H Q

Q Quarterly Maintenance Site inspection; heater inspection; UFM meter validations & meter run switching; CP transformer rectifier unit checks; smoke detector checks; soil and weed management; etc.

H Six Monthly Maintenance As per quarterly maintenance, including water bath heater maintenance at Cavan; Torrens Island, Pelican Point, Quarantine, Dairy Farmers and Teys Brothers.

A Annual Maintenance As per six‐monthly maintenance, inclusive of heater maintenance (spark arrestor, water sample & ignition system); mechanical maintenance (Main Line Valves, SV’s, Scrapers, Filters, Regulators, PSV’s, PV’s, Instrument Gas Checks, Electrical Maintenance (Batteries, RCD’s, Pressure & Temperature Transducers; Solenoids; Meter Run Switching; Heat Tracing & Hazardous Area Checks), etc.



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The following maintenance activities were conducted during the course of the licence year:

Gas turbine engine maintenance at the Coomandook compressor station; Performance testing of flow control valves at Pelican Point and Quarantine Pressure

Reduction and Metering (PRMS) facilities; Upgrading to stainless steel of component identification tags at facilities; Safety and operational signage upgrade at facilities and along the pipeline easement; Welker insertion probe modifications to improve safe operation; Cathodic protection ‘on‐off’ potential survey; Excavation and investigation of coating defects along the pipeline at Mount Pleasant,

as a result of DCVG (Direct Current Voltage Gradient) survey data; Subsidence and erosion repairs along the pipeline easement; Ongoing restoration of the pipeline easement, inclusive of revegetation programmes; Environmental site monitoring; Stakeholder contacts to promote safe awareness along the pipeline route; Pipeline awareness seminars and emergency response training for emergency

services, utilities and safety critical stakeholders; Completion of Exercise Dolphin (multi‐jurisdictional emergency response) during

November 2009;

Installation of upgraded vitreous enamel signage along the easement at all road crossings between Coomandook and the SA / Vic border;

Ongoing Corrosion mitigation (refurbishment of above ground facility paint coatings) at Jervois and Naracoorte PRMS facilities, Yallamurray MLV’s and Coomandook compressor station;

2.4 Cathodic Protection Potential Survey

An annual cathodic protection potential survey of the Iona to Pelican Point pipelines and associated laterals occurred during August 2009. The survey was completed and results assessed in accordance with AS 2885.3:2001 Pipelines – Gas and Liquid Petroleum Part 3: Operation and Maintenance and AS2832.1:2004 Cathodic Protection of Metals Part 1: Pipes and cables.

The survey involved measuring the pipeline potentials with respect to a saturated copper / copper sulphate reference electrode at each test point and at nominally every fifth test point recording over a 20‐hour period, the pipeline potential as required for pipelines subject to the effects of telluric currents.

The survey did not highlight any major anomalies and indicated that the SEA Gas pipeline and its associated laterals were fully protected in accordance with the protection criteria defined in Section 2.2 of AS 2832.1.

The survey also indicated that all AC (Alternating Current) surge protection devices installed along the pipeline were functional and found to be operating correctly.



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2.5 Excavations of DCVG Pipeline Coating Survey Defects

During the licence, year SEA Gas undertook excavations along a section of the pipeline near Mount Pleasant, in response to DCVG, pipeline coating survey data.

The results of this investigation indicated that the pipeline coating defects were of a minor nature, primarily attributed to abrasion of the coating during construction. These coating defects were repaired and the sites backfilled and reinstated as per the intent of the SEO.

2.6 Pipeline Location and Referral Services

During the course of the licence year 406 (3.2% decrease) third party asset referral enquiries were received via the Freecall 1100, “Dial Before You Dig” asset referral service. In response to these enquiries 218 (5.5% decrease) were deemed to have a potential to affect the pipeline and were subject to site assessment.

During the course of the licence year, there were 132 (57.6% increase) supervised inspections of third party activities near the pipeline, which were deemed to have the potential to compromise integrity. Additionally SEA Gas conducted 50 (28% increase) pipeline locations for third parties who conducted operations in the near vicinity of the pipeline easement.

In response to unauthorised activities occurring along the pipeline easement during the previous licence year, following an initial site inspection by a SEA Gas representative, a process for communicating approved activities on the pipeline easement was introduced. The “Easement Activity Authorisation Form” provides a means for clearly documenting activity approvals along the pipeline easement, inclusive of sign‐off by all parties prior to the authorisation of any activity. Formative results indicate that this process facilitates a clearer understanding of activity specific approvals, with a view to improving operational and public safety.

2.7 Emergency Response & Preparedness

During the licence year SEA Gas participated in the following emergency response exercises:

Exercise Dolphin (17 November 2009, multi‐jurisdictional desktop exercise conducted by SEA Gas in Adelaide, involving emergency services, industry representatives and emergency stakeholders); and

Exercise Grange (8 June 2010, annual Victorian gas industry exercise, jointly conducted by Australian Energy Market Operator, Energy Safe Victoria and the gas industry).

Emergency response exercises provide SEA Gas personnel with realistic opportunities to activate and implement emergency response and crisis management plans, based on realistic incident scenarios along the pipeline in both South Australia and Victoria.

Recommendations arising from these exercises have been progressively actioned (via the Compliance Action tracking system) to enable continuous improvement and familiarisation with, the SEA Gas Emergency Response and Crisis Management Plans (in accordance with management of change processes).



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During the 20010 / 2011 licence year. SEA Gas intends to host:

a multi jurisdictional emergency response exercise (Exercise Shortfall) involving emergency services in Victoria and South Australia, which will be submitted as the bi‐annual exercise in accordance with the requirements of sub‐Regulation 31(3) of the Petroleum and Geothermal Energy Regulations (SA) 2000; and

a series of internal emergency response exercise scenarios (Exercise Allegro) to assess emergency call management protocols by emergency respondents.

3.0 REGULATORY COMPLIANCE

In accordance with the requirements of the Petroleum and Geothermal Energy Regulations (SA) 2000, Regulation 33.(2)(b), SEA Gas complied with its regulatory obligations during the licence year, in accordance with the requirements of the Petroleum and Geothermal Energy Act (SA) 2000 and Petroleum and Geothermal Energy Regulations (SA) 2000, in respect of Pipeline Licence No. 13; and its Statement of Environmental Objectives (SEO – Ref. Appendix A).

During the course of the licence year one incident (400% reduction ‐ Ref. Appendix B) was reported to the Petroleum and Geothermal Energy Group of Primary Industries and Resources, South Australia (PIRSA). This incident occurred along the South Australian section of the SEA Gas pipeline and primarily related to an unauthorised third party activity, which did not result in damage to pipeline infrastructure. Notwithstanding the fact that no immediate damage was incurred, unauthorised third party activities along the pipeline easement continue to pose a risk to public safety and the continued supply of natural gas to South Australia.

The unauthorised installation of fencing across the pipeline easement by a landholder was detected by SEA Gas personnel during a scheduled pipeline patrol. This incident resulted in consultation with the landholder and an expansion of existing awareness programs with third party stakeholders regarding safety implications and potential commercial losses that may be suffered by the wider community in the event of compromised pipeline integrity as a consequence of unauthorised third party activities.

SEA Gas has integrated its pipeline safety awareness program with Epic Energy and APA Group, to highlight a unified industry approach to pipeline safety awareness for the wider community.

Other than the incident detailed above, no ‘serious’ incidents (as defined in the Petroleum and Geothermal Energy Act (SA) 2000) occurred during the licence year. Therefore, notwithstanding these incidents, SEA Gas considers its operations to be compliant in respect of the legislative requirements of the Petroleum and Geothermal Energy Act (SA) 2000 and Petroleum and Geothermal Energy Regulations (SA) 2000, its Pipeline Licence (PL13) conditions and its Statement of Environmental Objectives.

4.0 RECTIFICATION OF NON‐COMPLYING ACTIONS

During the course of the licence year, there were no outstanding non‐complying actions, which required closure.



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5.0 MANAGEMENT SYSTEM AUDITS

In accordance with Regulation 33.(2)(d) SEA Gas conducted a variety of management system audits during the licence year, to assess and validate its compliance with relevant legislative requirements. Ensuing observations, recommendations and corrective actions were risk assessed and actioned to ensure close‐out and review in response to each audit.

5.1 Occupational Health and Safety

Compliance Monitoring & Validation

During the licence year SEA Gas conducted a series workplace safety audits to measure and validate occupational health and safety compliance against its Safety & Operating Plan and applicable legislative requirements, policies, procedures and contractual requirements. Operational activities (and sites) throughout Victoria and South Australia were audited during the licence year, the results of which indicated compliance and ongoing opportunities for continuous workplace safety improvement.

An abridged overview of audits conducted during the licence year is detailed below.

Audit Scope Auditor Summary of Observations & Actions

Pipeline Facilities Audit

Whole of pipeline facility inspection (Ref. TECH‐PO‐001 Safety & Operating Plan)

SEA Gas Compliance with relevant (SA & Vic) OHSE (Occupational Health, Safety & Environmental) legislative requirements.

Observations related to continuous improvements, which are being progressively actioned (e.g. – manual handling and storage of portable gas cylinders, development of site safety hazard register).

Maintenance Services Providers

Compliance with TECH‐PO‐001 Safety & Operating Plan & contractual requirements

SEA Gas During the licence year the following maintenance providers were subject to site safety audits of their operations:

APA Group SA & Vic, pipeline maintenance operations (3 audits);

Solar Turbines, compressor package maintenance (2 audits);

Mortlake PRMS construction activities, Iona, Vic.

Elizabeth Track Blasting Pty Ltd, facility corrosion upgrade projects.

Notable audit observations included:

Temporary modification of site entry and permit procedures during facility construction activities; and

Improved site communications during multi‐task activities involving neighbouring operators.

Generally, a high level of safety awareness and overall legislative compliance was noted amongst personnel operating on the pipeline system.



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Audit Scope Auditor Summary of Observations & Actions

SEA Gas Safety Case Audit (October 2009)

Energy Safe Victoria The annual audit primarily focussed on:

Organisational structure and defined responsibilities;

Emergency preparedness; and

Internal monitoring, audit and review.

No non‐conformances were noted during the audit.

Environmental Audit

Assessment of compliance against the: SEA Gas Statement of

Environmental Objectives (SEO) for the South Australian section of the pipeline; and

SEA Gas Environment Management Plan (EMP) for the Victorian section of the pipeline.

RPS Environment and Planning Pty Ltd

Environmental management of operational activities were found to be compliant with the SEO and EMP.

Safety Equipment Audits St. John (SA)

Chubb Fire

SEA Gas

During the licence year inspection, servicing and maintenance of fire detection, fire suppression and emergency response equipment (Gas Compressor CO2 deluge systems, fire extinguishers, hose reels, fire blankets, smoke detection & first aid kits) was conducted at SEA Gas facilities and in vehicles.

Actions arising from these audits and inspections were closed‐out in accordance with Fault Action Reporting (FAR) criteria.

Internal and external audits conducted during the licence year validated legislative compliance in accordance with applicable South Australian and Victorian requirements.

Health, Safety and Environmental Management System Self Assessment

SEA Gas carried out a self assessment of its Health Safety and Environmental (HSE) Management Systems during August 2009. The HSE Management System self assessment tool developed by the Petroleum and Geothermal Energy Group of PIRSA, was used for the survey, with the proforma developed by PIRSA and issued to industry participants.

SEA Gas surveyed seven people employed by SEA Gas, including two senior managers and five members of the SEA Gas Operations Team and three technicians employed by APA Group, who are directly involved in the provision of maintenance services to SEA Gas.

The survey results were an average score across all categories surveyed of 3.2 out of 4. Generally SEA Gas Senior Management scored slightly higher than members of the operations team, who scored slightly higher than APA technicians.



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The survey highlighted areas where there is an opportunity to improve HSE systems and communications within SEA Gas. Work was already underway to address some of these areas, in addition to taking action to implement some of the suggestions put forward as a result of the survey.

5.2 Environment

Environmental Rehabilitation

Environmental monitoring of the pipeline easement was undertaken by the licensee during the licence year, to assess post‐construction site regeneration and monitoring of easement stability and to ensure compliance against stated environmental objectives. Progress of easement rehabilitation is summarised in Appendix D.

A representative of the Petroleum and Geothermal Energy Group accompanied the licensee during September 2009, to validate the environmental establishment along the pipeline easement.

Environmental rehabilitation sites along the pipeline easement in South Australia have progressed to the point where 12 sites (75%) and the final (five sites in total) Sustainable Environmental Benefit (SEB) site, were completed during the licence year.

Watering of all Mallee sites (by the Murray Bridge Scout group) during the summer months was continued to ensure the viability of plants, pending their establishment.

Observations relating to environmental audits and environmental site inspections were communicated to PIRSA during the course of quarterly meetings throughout the license year. Progress reports, inclusive of site management actions were presented to ensure continued compliance with site specific revegetation plans.

Branched Broomrape Eradication Program

During the licence year, SEA Gas continued to work closely with the Department of Water, Land and Biodiversity – Branched Broomrape Eradication Program, providing critical survey data from patrol personnel and stakeholders along the pipeline route, to assist with the Departments eradication program.

6.0 REPORTS AND DATA

In accordance with Regulation 33.(2)(e) the following documentation was forwarded to Petroleum and Geothermal Energy Group in relation to regulated activities conducted by the licensee during the course of the licence year:

Pipeline Licence No. 13 ‐ Annual Report for 2008 ‐ 2009 licence year

Appendix C – Statement of Expenditure, in respect of the 2008 ‐ 2009 Annual Report

Quarterly incident report (reporting period July – September 2009)

Quarterly incident report (reporting period October – December 2009)

Quarterly incident report (reporting period January – March 2010)

Quarterly incident report (reporting period April – June 2010)



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Emergency Response Exercise Red Tail Report (June 2009)

SEA Gas HSE Management System Self Assessment Survey (2009)

7.0 INCIDENT MANAGEMENT

In accordance with Regulation 33.(2)(f) a summary of reportable incidents is detailed in Appendix B in conjunction with an overall assessment and analysis of the incidents in accordance with Section 33.(2)(f)(i). The effectiveness of actions taken to rectify non‐compliances with the obligations imposed by the Petroleum and Geothermal Energy Act, associated Regulations and the conditions of Pipeline Licence Number 13, is also detailed in this section, in accordance with Regulation 33.(2)(ii).

Operational incidents were communicated to the Petroleum and Geothermal Energy Group during the course of quarterly reporting (Ref. Appendix B) and meetings during the licence year, inclusive of incident management and closeout strategies.

8.0 RISK MANAGEMENT

During the course of the licence year SEA Gas continued to investigate sites along the pipeline easement to confirm pipeline burial depth and to address actions arising from the 2008 Pipeline Risk Assessment Review.

SEA Gas conducted operational risk assessments (safety and environmental) to ensure that licensed activities subject to credible operational risks, were conducted in a manner that reduced risk to As Low as Reasonably Practicable (ALARP).

Educational and awareness programs for third party activities along the pipeline easement remain a high priority, in order to reduce the likelihood of unauthorised activities that could impact upon public safety and the continued safe operation of the pipeline.

SEA Gas continues to adopt management strategies to minimise the threat posed by unauthorised activities by third party activities. Where practicable, pipeline safety awareness programs are offered in conjunction with other asset operators to promote pre‐start consultation of activities which could pose a risk to public safety or continued safe operation of the pipeline system.

Awareness and early detection continues to be a priority to reduce the threat posed by unauthorised third party activities, inclusive of:

Aerial and ground surveillance throughout the pipeline system;

Security patrols and electronic surveillance;

Permit to Work System, Job Hazard Analysis & Safety Induction Systems;

Easement Activity Authorisation processes;

Pipeline and Safety Awareness programmes;

Monitoring of land‐ownership and land‐use changes;

Emergency stakeholder consultation programme;

Participation in State and Commonwealth forums for external threat management;

Participation in pipeline industry operations forums;



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Subscription to the 1100 Dial Before You Dig and Dig Safe (internet based) asset information and referral systems.

In addition to the above activities, SEA Gas has consulted extensively with developers who intend to encroach within close proximity to the pipeline route, with a view to ensuring that design considerations include considerations regarding the ongoing operation and maintenance of the pipeline system.

A risk assessment was conducted with developers to ensure that they were fully conversant with the radiation contours associated with a full line rupture, when preparing their designs.

9.0 PROPOSED OPERATIONAL ACTIVITIES 2010 ‐ 2011 LICENCE YEAR

In accordance Regulation 33.(2)(h) SEA Gas proposes to conduct the following operational activities during the 2010 – 2011 licence year:

Installation of a lightning conductor pole at the Yallamurray MLV;

Repairs to the cathodic protection unit at the Yallamurray MLV;

Overhaul of flow control valves at the Torrens Island PRMS;

Scheduled maintenance of pipeline facilities and infrastructure;

Ongoing Corrosion mitigation (refurbishment of surface corrosion and paint coatings of above ground pipe work at MLV’s within the Adelaide metropolitan area);

Monitoring of cathodic protection systems including testing of buried corrosion resistance coupons;

Continued upgrade of existing signage (Warning to Danger) along the easement between Pelican Point and the SA / Vic border to reflect recent changes to AS 2885;

Environmental improvements along the pipeline easement;

Environmental monitoring;

Field audit of all environmental rehabilitation sites along the pipeline easement in conjunction with PIRSA Petroleum and Geothermal Group representatives.

Stakeholder contacts;

Scheduled aerial and ground patrols of the pipeline easement;

Pipeline awareness seminars and emergency response training for emergency services, utilities and safety critical stakeholders;

Pipeline coating transition inspection and repair at the Coomadook Compressor Station, Adelaide PRMS facilities and MLV’s;

Gas Chromatograph bleed point Welker Probe upgrade at Adelaide PRMS facilities;

Intelligent pigging of the section of pipeline between Coomandook & Pelican Point;

Upgrading of sealed concrete paths at all PRMS facilities which feature gas chromatographs, to improve manual handling safety associated with gas cylinders.



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10.0 VOLUME OF REGULATED SUBSTANCE TRANSPORTED

In accordance with Regulation 33.(2)(k) the volume of regulated substance (i.e. – natural gas) transported by SEA Gas during the course of the 2009 – 2010 licence year, was approximately 56.7 PJ (inclusive of gas deliveries into the SESA pipeline system).

11.0 STATEMENT OF ANNUAL EXPENDITURE

In accordance with Regulation 33.(3)(a)‐(f) information relating to SEA Gas expenditure is provided as “Commercial In Confidence” in accordance with subregulation 33(5) of the Petroleum and Geothermal Energy Regulations 2000, where public disclosure is not required in accordance with subregulation 33(3).

A statement of expenditure is detailed at Appendix C (Restricted Distribution) and is attached under separate cover.



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APPENDIX A – ASSESSMENT OF COMPLIANCE AGAINST SEO OBJECTIVES

Statement of Environmental Objectives ‐ Operational Environmental Objectives & Compliance Outcomes

Environmental Aspect

Potential Impacts Primary Objective SEO Objective & Compliance Outcomes

Soils and Terrain

(EIR, Section 6)

Erosion and sedimentation

Soil inversion

Soil compaction

Soil contamination

Disturbance to significant geological features

Trench subsidence

To appropriately minimize and manage adverse impacts to the soils and terrain of the easement

b To appropriately monitor rehabilitation of soils and terrain on the easement

To limit the occurrence and extent of trench subsidence, soil erosion and sedimentation and to undertake remediation works where required

No subsidence was detected during the license year and weather induced soil erosion were repaired in a timely manner (in consultation with stakeholders), minimising the risk of further environmental impacts (or any impacts to stakeholders).

No off‐easement sedimentation was observed during the licence year.

To monitor the easement for soil inversion and to undertake remediation works where required

No residual soil inversion remains to be remediated following construction and no new sites were tabled during the course of the licence year following consultation with stakeholders.

To mitigate soil compaction and to undertake remediation works where required

No residual soil compaction impacts were observed during the course of the licence year. In the course of field observations, vegetative regrowth along the easement was consistent with (and in most cases exceeded) off‐easement regrowth in both remnant and broad acre contexts.



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To appropriately protect soils from contamination and to plan for the constraints posed by pre‐existing soil contamination

During the course of operational activities throughout the licence year, soils were appropriately protected against contamination in accordance with procedural, Job Safety Analysis (JSA), Work Permit and risk management (e.g. – environmental wash down protocols) strategies.

To avoid disturbance to significant geological features

Geological features were not disturbed during the course of the licence year.

Groundwater

(EIR, Section 7)

Contamination of groundwater

To appropriately minimize and manage adverse impacts to shallow groundwater resources

To appropriately protect groundwater quality from contamination by fuel, chemicals, acid sulphate soil leachate or other hazardous substances and remediate to the extent possible if required

During the course of the licence year, operational activities did not impact upon groundwater quality. Previously initiated remediation along the easement; re‐vegetation of riparian zones and installation of sedimentation traps along the easement, has generally resulted in improved water quality.

Surface Water

(EIR, Section 7)

Contamination

Disruption to third party use of surface waters

To appropriately minimize and manage adverse impacts to surface water resources

b To appropriately monitor rehabilitation of surface drainage patterns on easement

To appropriately protect surface waters from contamination by fuel, chemicals, acid sulphate soil leachate or other hazardous substances and to undertake remediation works where required

During the course of the licence year, operational activities did not impact upon surface water quality. Post activity remediation along the easement, combined with re‐vegetation enhanced water quality through improved filtration and reduced turbidity because of the installation of sediment control measures along the easement.



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To monitor and remediate long‐term interruption or modification to surface drainage patterns resulting from SEA Gas Project activities & remediate if required

Monitoring of the pipeline easement during the course of the licence year, did not reveal any impacts to surface drainage patterns. Because of revegetation and erosion mitigation measures installed along the easement, surface drainage and water quality has been improved because of reduced erosive disturbance.

Minimise disruption to third party use of surface waters

During the course of the licence year SEA Gas, operational activities did not disrupt third party use of surface waters. SEA Gas consults with third party stakeholders to enable the collection of surface water from across the easement to benefit third parties. This has particularly been the case following the installation of erosion mitigation structures along the easement.

Watercourse Crossings

(EIR, Section 7)

Crossing restoration

Visual impacts

To appropriately monitor rehabilitation of watercourse crossing locations

To achieve long term site stability and appropriate site restoration

During the course of the licence year, SEA Gas has continued to monitor the easement to ensure site stability and confirm continued site establishment along the easement. Validation by 'ground truthing' inspections, road and aerial surveys and consultation with third parties validates restoration objectives.

Air Emissions

(EIR, Section 8)

Generation of dust from the easement and access tracks

Minor reduction in air quality resulting from vehicle emissions

Localised reduction in air quality resulting from emissions from the compressor station and pipeline

To appropriately minimize and manage adverse impacts to air quality as a result of operations

To minimise dust emissions

During the course of the licence year, dust emissions were managed in accordance with procedural requirements, JHA’s and Work Permits, whereby vehicular speeds on unsealed surfaces are minimised in order to minimise fugitive dust emissions.

No third party complaints or internal hazard reports were received during the licence year in respect to this objective.



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To minimise air quality impacts from emissions from operation equipment

In accordance with greenhouse gas emission reduction strategies, fugitive air emissions were minimised to essential operations and maintenance activities during the course of the licence year.

Additionally gas‐burning equipment is maintained to ensure optimum burning efficiency and elimination of other than scheduled gas releases because of both maintenance and patrol activities.

To minimise excessive emissions from compressor station operations

During the course of the licence year, emissions from the Coomandook Compressor Station were restricted to the minimum required to operate and maintain the facility. No unintentional emissions were released; validation of maintenance records confirms compliance.

To minimise emissions from pipeline and associated infrastructure

During the course of the licence year, emissions from the pipeline and associated infrastructure were restricted to As Low As Reasonably Practicable (ALARP) to safely operate and maintain the infrastructure in accordance with the requirements of AS2885. No unscheduled or unintentional emissions were released; validation of maintenance and operational records confirms compliance.

To ensure the Compressor Station conforms with EPA requirements

During the course of the licence year, emissions from the Coomandook Compressor Station complied with SA EPA requirements in relation to gas burning equipment ≤5MW (4MW actual ‐ validation of maintenance records confirms compliance).



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Noise Emissions

(EIR, Section 8)

Generated operations noise may disturb people, stock and wildlife in the immediate area

To meet regulatory requirements for noise emissions from the Compressor Station and other pipeline infrastructure

To minimise noise impacts associated with the movement of operation vehicles and equipment

During the course of the license year, no noise related impacts were reported (internally or externally) as a consequence of the movement of operations vehicles or equipment.

Minimise noise emissions from the Yallamurray Compressor Station

The Yallamurray Compressor Station has not been constructed – no noise emissions at this site.

Minimise noise impacts associated with operation of the pipeline and associated infrastructure

During the course of the license year, one noise complaint (Ref. Appendix B) was received in relation to the operation of the pipeline and its associated infrastructure.

Greenhouse Gas Emissions

(EIR, Section 8)

Release of Green House Gas Emissions from Compressor Station

To appropriately manage greenhouse emissions from associated processing plants and pipelines

To appropriately control and report greenhouse gas emissions

During the course of the licence year, Greenhouse gas emissions were appropriately controlled through minimization of gas venting activities (restricted to essential operations and maintenance activities).

Gas burning equipment (i.e. – water bath heaters and Coomandook Compressor Station) ware maintained in accordance with manufacturers recommendations.

Ecology

(EIR, Section 9)

Removal of remnant vegetation

Spread of ecological weeds

Spread of pathogens

To appropriately minimize and manage adverse impacts to ecological values of the easement

b To appropriately monitor rehabilitation of the easement

To avoid clearing of remnant vegetation

During the course of the licence year, no remnant vegetation was cleared. In accordance with Sustainable Environmental Benefit (SEB) requirements, SEA Gas initiated significant revegetation along the pipeline easement (in accordance with the South Australian Easement Revegetation & Management Plan Rev 7.0) in conjunction with sponsorship of off‐site revegatation activities.



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To avoid the spread of environmental and proclaimed weeds & remediate if required

During the course of the licence year no observed or reported spread of environmental or proclaimed weeds was noted. In accordance with the South Australian Easement Revegetation & Management Plan (Rev 7.0), restoration of native vegetation has continued, inclusive of significant effort to improve roadside reserves by eliminating weed species prior to and following planting. Additionally, SEA Gas has continued to manage weed species at its facilities along the pipeline route and within broad acre areas (in consultation with stakeholders).

Where required, access to suspected weed infested areas features consultation with stakeholders and vehicle/equipment wash down protocols.

SEA Gas assisted the Department of Water, Land and Biodiversity Conservation with its Branched Broomrape eradication program.

To avoid the spread of pathogens & remediate if required

During the course of the licence year no observed or reported spread of pathogens was observed or reported along the pipeline route. Where practicable, SEA Gas restricts its operations to facilities and public areas, limiting access to inaccessible areas of the pipeline easement to aerial patrols (fixed wing and helicopter).

Access to suspected contaminated areas (e.g. – for the purpose of operational activities) features consultation with stakeholders and vehicle/equipment washdown protocols.

Compliance was validated during the course of post DCVG coating integrity excavations, whereby wash down protocols were managed in consultation with stakeholders (e.g. – PIRSA Rural & landholders).



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To effectively monitor rehabilitation of the easement & remediate if required

During the course of the licence year, scheduled monitoring of the easement occurred in the form of scheduled aerial and road patrols, environmental monitoring and stakeholder consultation activities. Where necessary, remedial or investigative actions were instigated to preserve the natural environment and to ensure adequate depth of cover across the pipeline in accordance with the requirements of AS2885.

During the course of the licence year, rehabilitation objectives were achieved (as per the South Australian Easement Revegetation & Management Plan Rev 7.0) and validated by site inspections.

Indigenous Heritage

(EIR, Section 10)

Damage to shallow artifact scatters

Damage to significant vegetation (for example scarred trees)

To appropriately minimize and manage adverse impacts to identified Indigenous heritage sites

To protect surface and shallow artifact scatters from damage

The SEA Gas pipeline easement does not feature any sites, which exhibit any visible or sub‐surface artifact scatters. Culturally sensitive sites are managed in accordance with defined procedures and are documented within the context of the Environmental Line List (ELL).

During the course of the licence year no disturbance to any heritage sites occurred as a consequence of SEA Gas operational activities.

To avoid damage to culturally significant vegetation

SEA manages its vegetation in accordance with the South Australian Easement Revegetation & Management Plan (Rev 7.0) which clearly identifies specific site management protocols for each area of remnant vegetation. During the course of the licence year, SEA Gas has significantly improved native vegetation along the easement revegetation initiatives and sponsorship of off‐site SEB sites at South Para River, Pooginagoric Tea Trick Road Reserve, Ki Ki, Mount Monster Conservation Park, Naracoorte Caves and Ki Ki.

Procedures which are linked to JHA’s and Work Permits are in place to safeguard the protection of remnant vegetation, requiring the assessment of vegetative impact as a



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consequence of any operational activity prior to commencement.

During the course of the license year SEA Gas experienced damage to one revegetation site by an unknown third party; however no damage to any vegetation occurred as a consequence of SEA Gas operational activities.

To implement appropriate protocols for dealing with cultural heritage material discovered during operations

SEA Gas has in place an Environmental Management Plan (inclusive of environmental policies and supporting procedures), which when applied operationally (JHA’s and Work Permits) minimises the likely risk of impact to any unforeseen discovery of cultural heritage material. During the course of pipeline construction, heritage material was not discovered. Subsequent post‐construction operational activities are conducted with due consideration for cultural heritage material likelihood, inclusive of consultation with cultural heritage representatives.

During the course of the licence year, no cultural heritage material was discovered during the course of SEA Gas operational activities.

Historical Heritage

(EIR, Section 10)

Disturbance to smaller scattered items occurring on or immediately below the land surface as a result of earthworks

To appropriately minimize and manage adverse impacts to identified historical heritage sites

To avoid damage to built heritage

During the course of the licence year built heritage aspects were not damaged as a consequence of SEA Gas operational activities.



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To implement appropriate protocols for dealing with historical heritage material discovered during operations

SEA Gas has in place an environmental policy and supporting procedures, which when applied operationally (JHA’s and Work Permits) provide management protocols for dealing with historical heritage material, which may be discovered during operations. Liaison with stakeholders along the pipeline easement ensures that a consultative management strategy is developed, in response to the management of historical heritage material, which may be discovered.

During the course of the licence year, no heritage material was discovered in the course of conducting operational activities along the pipeline easement.

Land Use

(EIR, Section 11)

Adverse effects to agricultural

productivity or other primary production activities in long term

Disruption to important land use periods (that is, calving, lambing, breeding, sowing, harvesting or recreation)

Spread of noxious weeds and diseases

Disruption to conservation, recreational, industrial or other third party land use activities

To appropriately minimize and manage adverse impacts to land use activities during operations

b To appropriately monitor land use productivity post construction

To prevent adverse effects on stock during operations

During the course of the licence year, SEA Gas operational activities did not affect livestock in any manner, as a consequence of low operational impacts and continued liaison with stakeholders along the pipeline easement.

To adequately monitor agricultural productivity post construction

In the course of its stakeholder consultation process during the licence year, SEA Gas has where appropriate consulted with stakeholders in respect to post construction agricultural productivity.

During the course of the licence year operational activities did not interrupt intended land use, nor spread noxious weeds or diseases. Validation by site inspection and stakeholder consultation processes ensured compliance during the license year.



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To avoid unacceptable disturbances to landowner assets and infrastructure & remediate if required

During the course of the licence year there were no incidents which affected third party assets or infrastructure.

To adequately protect conservation or recreational values and activities

During the course of the licence year SEA Gas has committed significant resources towards the conservation of the natural environment through its SEB and environmental rehabilitation commitments; sponsorship of off‐site revegetation programs; participation in Red‐tailed Black Cockatoo field surveys and sponsorship of community activities, which when combined, contribute towards the protection of conservation and recreational amenities along the pipeline route.

To prevent the spread of weeds and animal and plant pests and diseases, (such as branched broomrape, phylloxera and footrot), and to take appropriate remediation measures where required

During the course of the licence year, SEA Gas continued to adopt operational policies and procedures to minimise the spread of weeds and pathogens. Consequently, no weed or pathogen spread was reported nor observed.

To avoid adverse effects to residential and industrial activities other pipeline infrastructure

During the course of the licence year, SEA Gas did not affect residential or industrial activities in the near vicinity of the pipeline easement. Where identified, potentially conflicting activities were assessed and stakeholders consulted, with a view to ensuring the management of risk in accordance with AS2885 and AS4360 requirements.



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Visual Amenity

(EIR, Section 11)

The success of easement reinstatement and rehabilitation works

The presence of above ground facilitates

To appropriately minimize and manage adverse impacts on visual amenity

b To appropriately monitor easement rehabilitation to minimise long term visual amenity impacts

To have a limited long‐term effect on the landscape values of the local area.

During the course of the licence year SEA Gas operational activities did not impinge on the long‐term effect of landscape values. In the course of revegetation, easement restoration and sponsorship of SEB project sites, SEA Gas continues to significantly improve the landscape and biodiversity along the length of the pipeline and its surrounds.

Third Party

Infrastructure

(EIR, Section 11)

Disruption or damage to roads and other transport infrastructure or networks

Disruption or damage to utility services

Disruption or damage to private

infrastructure

To minimise and where practicable avoid impacts to transport networks, private property and to public utilities

To appropriately monitor reinstated third party infrastructure

To minimise damage to road integrity & remediate if required

During the course of the licence year, SEA Gas did not impinge upon any road infrastructure. Routine patrol activities validate this observation.

To avoid unacceptable disturbance to local traffic conditions and access

During the course of the licence year, SEA Gas did not impact any road infrastructure. SEA Gas activities were solely confined to facilities and sections of the easement away from trafficable areas that required disturbance. Routine patrol activities validate this observation.

To prevent damage to public utilities & remediate if required

There were no impacts upon third party infrastructure as a result of pipeline operations during the course of the license year.

To protect construction personnel safety

No construction activities were conducted in South Australia during the course of the license year.



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To contain any damage to private property to agreed levels & remediate if required

During the course of the licence year SEA Gas activities did not result in any damage to private property. In accordance with its SEO obligations, SEA Gas installed erosion mitigation structures (and where required revegetated these structures) along sections of the easement on private property, where it was identified that the installation of such structures would reduce the risk of long‐term depth of cover degradation over the pipeline. In all instances, the stability and productivity improvement offered by such structures, applies a direct benefit to the landholder.

Waste Disposal

(EIR, Section 11)

Contamination of easement and

immediate surrounds

Degraded amenity due to presence of waste matter

To effectively minimise and manage all waste generated during operations and to dispose of all waste in an appropriate manner

To have a limited effect on the landscape values of the local area

During the course of the licence year SEA Gas continued to improve the landscape in the course of implementing its revegetation, SEB and site restoration programme in accordance with the SEO, environmental management plan and AS2885 requirements.

To ensure all personnel are aware of appropriate waste minimisation and management protocols

SEA Gas conducts inductions (DVD based and featuring competency assessment) for all new employees, contractors, third party stakeholders and Nominated Permit Holders, inclusive of training in relation to environmental management and best practice during the course of operational activities.

Spill Response

(EIR, Section 11)

Soil contamination

Water contamination

Additional remediation works

To prevent, minimise and manage spills occurring and during operations.

b To appropriately monitor remediated spill locations (where applicable)

To ensure the storage and distribution of hazardous materials and fuels during operation, preventing spillage and contamination & remediate if required

During the course of the licence year operational activities were conducted in a manner, which minimised the risk of spillage through appropriate handling and storage protocols. Storage areas at compressor stations were upgraded during the licence year to improve handling of all materials and spares at these locations.

No spillage or chemical related incidents occurred during the license year.



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SEA Gas implemented industrial recycling initiatives (gas filters, disposable coveralls) at all facilities along the pipeline system to reduce its waste stream to landfill.

To ensure personnel are trained in spill prevention and response procedures

SEA Gas and maintenance personnel are competent in materials handling/management spill response and containment strategies. Areas in which chemicals are stored and handled feature spill containment structures and spill control kits.

Public Safety and Risk

(EIR, Section 11)

A threat to the pipeline can be assumed to include any element which can potentially cause pipeline failure, including threats due to location (including crossing and land use segments) and general threats common to the entire system (for example, corrosion)

To incorporate operational and maintenance requirements in line with AS 2885.1 to ensure risk level associated with threats is sufficiently dealt, that is, As Low As Reasonably Practicable

To satisfactorily mitigate all risks through the adoption of the requirements under AS2885.1

SEA Gas operations were conducted in a manner which provides compliance with the requirements of AS2885 in relation to threat mitigation. Based on incidents and hazard reports during the licence year, risk based response strategies were formulated to reduce risks to ALARP.

During the licence year, unauthorised third party interference of pipeline assets and unauthorised third party operations along the easement resulted in credible threats to safe pipeline operations. SEA Gas, in consultation with PIRSA is managing these issues, with a view to educating third parties in relation to safe operation in the vicinity of pipeline infrastructure.

SEA Gas investigated one incident (Ref. Appendix B) involving unauthorised third party activity along the pipeline and confirmed that the pipeline was not damaged as a consequence.

SEA Gas maintains an ongoing relationship with developers who intend to encroach within close proximity to the pipeline, ensuring that they including risk management considerations within their design.



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Stakeholder Consultation

(EIR, Section 12)

Inadequate stakeholder consultation

Unresolved operational issues

To identify and satisfy stakeholders need for information by establishing and maintaining effective two‐way communication and resolution of issues during operations

To provide a mechanism to ensure that landholders and other parties are able to contact SEA Gas regarding operational issues

During the course of the licence year SEA Gas undertook a widespread stakeholder consultation programme, inclusive of correspondence and site visits to all landholders, Councils, emergency services, utilities, third party land users (e.g. – Forestry SA, Timbercorp, Land Management Corporation, etc). This ongoing consultative programme strives to promote and further enhance existing safety awareness programs, encouraging third parties to contact SEA Gas prior to commencing any activity in the near vicinity of the pipeline, which may compromise safety.

SEA Gas intends to continue with this programme during the subsequent licence year and beyond, inclusive of identifying changes in land ownership and educating new stakeholders, in order to promote safe operations through a consultative process.

Unplanned Incidents

(EIR, Section 11)

Third party damage to pipeline integrity

Injury to public or personnel

Release of uncontrolled emissions

Risk of fire

Disturbance to landholder amenity as a result of gas release

To minimise and manage the occurrence of third party damage to the pipeline, risks to public health and safety

b To minimise and manage adverse impacts to air quality and public amenity

To adequately ensure the security of production or supply of natural gas

To effectively manage third party operations in close proximity to the easement in accordance with AS 2885.1

SEA Gas continues to subscribe to the 1100 Dial Before you Dig asset referral service and provides onsite location and supervision services where requested by third parties.

To effectively maintain pipeline markers and safety signage during Operations

In the course of maintenance activities, a scheduled pipeline marker replacement and re‐alignment programme was undertaken during the course of the licence year. Where reasonably practicable and in accordance with the requirements of AS2885, pipeline markers were located in consultation with stakeholders to enable improved access to broad acre areas without compromising the integrity of pipeline markers, with a view to improving visibility and promoting compliance with ‘Danger’ signage.



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To adequately protect public safety during uncontrolled releases and other unplanned incidents

No uncontrolled or unplanned gas releases occurred during the course of the licence year.

To adequately reduce the likelihood of fire associated with uncontrolled releases and other unplanned incidents

SEA Gas facilities have been designed to reduce the likelihood of unplanned gas releases, whilst infrastructure has been designed and maintained in accordance with the compliance requirements of AS2885, inclusive of hazardous zone design parameters.

Emergency Response

(EIR, Section 11)

Injury to public or personnel

Damage to third party infrastructure

Risk of fire

To ensure that all emergency responses are immediate, to reduce the severity of any emergency gas release and to follow existing procedures whilst maintaining public and personnel safety as a priority

b To adequately ensure the security of production or supply of natural gas

To adequately respond to unplanned emergency incidents

During the course of the licensee year, SEA Gas has exceeded the minimum legislative requirement in respect of emergency response exercises. Additionally, the SEA Gas Emergency Response Plan was revised, inclusive of familiarisation training for all personnel in respect to changes associated with the revised draft.

To adequately protect public safety during emergency responses, uncontrolled releases and other unplanned incidents

SEA Gas continues to work closely with emergency services to ensure that public safety remains foremost in the course of emergency preparedness and response.

SEA Gas has in place response strategies to enable the isolation, response and recovery in response to an unplanned incident. SEA Gas conducted an emergency response exercise in collaboration with emergency services during the license year.



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To adequately reduce the likelihood of fire associated with uncontrolled releases and other unplanned incidents

SEA Gas facilities are maintained to ensure that safety shutdown infrastructure is operable in a fail‐safe mode. Additionally, SEA Gas sites are maintained in a manner, which minimises the risk of combustible materials from vegetative regrowth, with a view to containing within the hazardous zone any fire in the event of and unplanned incident.



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APPENDIX B – REPORTABLE INCIDENTS DURING THE LICENCE YEAR

Incident Date &

Reference No.

KP

(approx.)

PIRSA Incident Classification

Root Causes Corrective Actions Status

September 2009

#4003

541 Work Practices Prior to commencing work on the pipeline easement a pre‐start pipeline location was not requested by either the landholder or their fencing contractor.

The fencing contractor relied on advice provided by the landholder and the indicative placement of pipeline markers along the pipeline easement and at the road crossing, to predict the location of the pipeline during the installation of the fencing.

The landholder had been made aware of the correct process for work in the vicinity of a pipeline during a pipeline safety awareness session, however in this instance they did not adopt the suggested process and did not ensure that their contractor followed the correct process.

The landholder was re‐briefed regarding activities on the pipeline easement which require approval from SEA Gas prior to commencement.

The landholder was briefed in regard to activities on the pipeline easement which have the potential to compromise safe operations.

A site inspection by SEA Gas representatives confirmed that the pipeline and its protective coating had not been damaged during the installation of the fencing across the pipeline easement.

Closed



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APPENDIX C – STATEMENT OF ANNUAL EXPENDITURE

Distribution of the Statement of Annual Expenditure is limited to the Petroleum and Geothermal Energy Group, Primary Industries and Resources, South Australia, in accordance with Regulation 33.(3)(a)‐(f).

Information relating to SEA Gas expenditure is provided as “Commercial in Confidence” in accordance with sub regulation 33(5) of the Petroleum and Geothermal Energy Regulations 2000, where public disclosure is not required in accordance with sub regulation 33(3).



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APPENDIX D – EASEMENT REHABILITATION SUMMARY

A representative from the Petroleum and Geothermal Energy Group of PIRSA accompanied SEA Gas (September 2009), during an inspection of environmental rehabilitation sites along the pipeline. This inspection confirmed that the rehabilitation of all sites exceeded the minimum requirements and complied with all relevant SEO requirements.

It is intended that a similar inspection will occur during the 2010 / 2011 licence year.

An overview of the status of environmental improvements implemented along the pipeline easement, inclusive of Sustainable Environmental Benefit (SEB) activities conducted within South Australian during the course of the licence year is detailed as follows:

1. South Australian Easement Revegetation & Management Plan

During the licence year SEA Gas conducted additional environmental rehabilitation and site maintenance activities (watering during summer months, weed spraying, mulching, attrition planting, tree guard maintenance and rabbit control), at 22 sites along the pipeline easement within South Australia, in accordance with the South Australian Easement Revegetation and Management Plan (Rev 7.0).

Approximately 3,000 plants, comprising 35 separate local provenance species (indigenous seed collected by authorised nursery) were planted along the easement between Torrens Island and the SA/Vic border during the licence year.

As a consequence of planting activities, wind erosion along the Salt Creek dune crest (KP 560) has been arrested and deposition of sand has resulted in an increased depth of cover over the pipeline.

As a consequence of high rainfall over the winter months, erosion along a drain line over the pipeline easement near Palmer (KP 580) is being monitored in consultation with the landholder, to ensure that there is no resulting impact to the pipeline.

In the course of conducting its environmental restoration activities during the licence year, SEA Gas has actively consulted with representatives from Department of Water, Land and Biodiversity Conservation; Rural City of Murray Bridge; South Australian Murray‐Darling Basin Natural Resources Management Board, landholders and other interested stakeholders in the near vicinity of the pipeline easement.

2. Sustainable Environmental Benefit (SEB) Projects

In accordance with its post construction environmental obligations the following Native Vegetation Council approved, Sustainable Environmental Benefit projects continue to be managed by designated stakeholders, following financial assistance provided by SEA Gas:

Mount Monster Conservation Park Allotment Acquisition – as a result of SEA Gas sponsorship, acquisition of this land parcel was concluded during August 2007.



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Mosquito Creek Restoration, Naracoorte Caves Conservation Park –In response to SEA Gas sponsorship, this site continues to be rehabilitated by the ‘Friends of the Naracoorte Caves’, under the auspices of the park manager.

Pooginagoric Tea Trick Road Reserve Revegetation – additional planting (both upper and understorey species) and site management (i.e. – removal of tree guards on mature species, attrition planting, and weed management) was initiated at this site during the licence year to supplement attrition plantings.

SEA Gas has agreed to sponsor the installation of interpretive sign at this site following an approach by the Department for Environment and Heritage and is awaiting completion by that department.

Para Woodland Rehabilitation, Gawler ‐ rehabilitation at this site continues under the auspices of the park manager.

Ki‐Ki Revegetation Project – a site inspection during early 2010 indicated the planted species were well established and the project completed. Tree guards were removed from all plants to prevent restrictions to growth, assisting development. This site provides a link to the adjacent remnant roadside vegetation corridor, enhancing the biodiversity offered by this project.

Documents

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