The

The Magazine of Safety Management and Risk Solutions

Ed

itio

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0- 2

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m a g a z i n e

Trevor orchardShips captain, Go offshore

Feature Profile

The Politics of Mining:The Effects of Supply and Demand on our Mining Industry

Got A Problem?

aussie PubsKeepin’ Up with Shorty and Bob’s Great Australian Pub

Crawl

Try Asking Why! Turn yourself into a world-class

problem-solver!

www.smrs.net.au

www.wellcontrolschool.com.au

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COMMITTED TO QUALITY... DELIVERING VALUE!

On-Demand IADC Accredited Well Control Training Well Control School Australia’s System 21 e-Learning Well Control Training provides online IADC certified courses to prepare you to meet well control situations, at your convenience. Ideal for beginners and experienced personnel, System 21 e-Learning courses utilize high-tech training tools and simulation scenarios to cover over 2,000 topics and skills for surface and subsea well control, including drilling, workover/completion, snubbing, coiled tubing, and wireline operations.

Benefits• Cost effective• Self- paced • Available globally at your convenience• Preparation for real well control situations• IADC WellCAP® certificate upon completion• 24x7 technical support

Get started todayRegister at www.wcsonlineuniversity.com

Coming soonInstructor-led IWCF accredited courses and computer-based training labs in Brisbane and Perth.

www.katchkan.comWorldwide Patents/Patents/Patents Pending

Call Toll Free: 1-800-840-2877

Whether you are interested in cutting costs, reducing injuries, or saving the environment, Katch Kan™ has you covered.

Part # Fits

2-3/8" 2-3/8" Body KK001-1 2-3/8" KK005-1 2-3/8"W ebwilson AXX

3" to 3-1/8" KK001-2 3" KK001-1.5 2-7/8" KK005-2 2-7/8"W ebwilson B

4-1/8" to 4-3/8" KK001-3 4" KK001-2 3" KK005-2 2-7/8" Foley Type B

4-1/8" KK001-3 4" KK001-2.5 3-1/2" KK005-4 3-3/4" Rostel B

4-5/8" to 4-3/4" KK001-3.5 4-1/2" KK001-2.5 3-1/2" KK005-4 3-3/4"W olley Super B

5" to 5-3/8" KK001-4 5" KK001-2.5 3-1/2" KK005-4 3-3/4" Varco HT-55

5-1/2" KK001-4.5 5-1/2" KK001-2.5 3-1/2" KK005-4 3-3/4" Varco DD

5-1/4" KK001-4 5" KK001-3 4" KK005-5 4-3/4" DB SLF

5-1/2" to 5-3/4" KK001-4.5 5-1/2" KK001-3 4" KK005-5 4-3/4" HT-65

6" KK001-5 6" KK001-3 4" KK005-5 4-3/4" Varco HDD

5-7/8" to 6-1/4" KK001-5 6" KK001-3.5 4-1/2" KK005-5 4-3/4"S uper A

6-3/8" to 6-5/8" KK001-6 6-1/2" KK001-3.5 4-1/2" KK005-5 4-3/4" HT-100

6-3/8" to 6-5/8" KK001-6 6-1/2" KK001-4 5" KK005-6 5-3/4" BJ-B

7" to 7-1/4" KK001-7 7" KK001-4 5" KK005-6 5-3/4"S uper C

6-3/8" to 6-5/8" KK001-6 6-1/2" KK001-4.5 5-1/2" KK005-6 5-3/4" Other HT Styles

7" to 7-1/4" KK001-7 7" KK001-4.5 5-1/2" KK005-6 5-3/4" BJ-DB

7-1/2" KK001-7.5 7-1/2" KK001-4.5 5-1/2" KK005-6 5-3/4" Other BJ Styles

5-7/8"7 " KK001-7 7" KK001-5 6" KK005-7 6-1/2"W ebwilson H

6" 7-1/2" KK001-7.5 7-1/2" KK001-5 6" KK005-7 6-1/2"W olley H

6-1/2"8 " KK001-8 8" KK001-6 6-1/2" KK005-7 6-1/2" THG-C Custom20-3/4" 3000 2 33-3/4"

13-5/8" 15,000 2-1/4" 30-3/8"

13-5/8" 10,000 1-7/8" 26-1/2"

13-5/8" 5000 1-5/8" 23-1/4"

19"

13-5/8" 3000 1-3/8" 21"

15-1/2"

11" 3000 1-3/8" 18-1/2"

12-1/2"

9" 3000 1-3/8" 15-1/2"

FNS-6-1

7-1/16" 3000-5000 1-1/2"

9" 5000 1-5/8"

11" 5000 1-7/8"

FNS-301

FNS-302

FNS-303

FNS-304

Pressure Rating(lbs.)

Bolt Size Bolt Circle

FNS-001

FNS-101

FNS-102

FNS-201

FNS-202

FNS Stack Size

Top PlateSize

THG-AAX

THG-BJ

THG-H

Drill PipeSize

Tool JointSize

Kelly KanªSeal for ToolJoint Part #

Seal IDKelly Kanª

Seal for PipeBody Part #

Seal ID Part #

5"

5-1/2"

2-7/8"

3-1/2"

4"

4-1/2"

Rig Safety System™ (RSS™)

Zero Spill System™ (ZSS™)

1. Elevator Guard

2. Tong Handle Guard™

3a. Kelly Kan™ & Extended Kelly Kan™

3b. Kelly Kan™ Seal Kit

4. Kelly Bushing Guard™

5. Splash Guard™ / Slip Handle Guard

6. Katch Mat™ / Stab Mat / Stair Tread

7. Upper Katch Kan™

8. Window Stripper™

9. ACE™

10. 2nd Stage

Katch Kan™

11. H-Seal

12. Surface Junk Basket™

13. Steel Adapter Plate

14. Flow Nipple Seal

15. Nu-Lite Flange Adapter™

16. Discharge Hose & Tank

Tong Handle Guards (#2)

Flow Nipple Seal (#14)

1 & 2. Elevator Guard & Tong Handle Guard™ • Cuts down on lost-time-incidents by preventing hand crush injuries • Lightweight and installs in minutes • Strong, durable & resilient

3a. Kelly Kan™ & Extended Kelly Kan™ • • Lightweight at 27lbs (extended 54lbs) • Fits on the Kelly, top drive, regular drill string, heavy-weight DP, drill collars, test tools and casing up to 8”

3b. Kelly Kan™ Seal Kit • plates, helping inventory control •

• drill pipe, test tools and other parts on the string from 23/8”-8” • Plates and Seals sold separately from case

4. Kelly Bushing Guard™ • Protects workers from accidents and fatalities related to objects and workers being caught in Kelly Bushings • Quick installation and removal

5. Splash Guard™ / Slip Handle Guard • • Flexes down for easy insertion/ removal of slips • Works in conjunction with Katch Mat™ and Kelly Bushing Guard™ • Protects workers from getting caught in slip handles

6. Katch Mat™ / Stab Mat / Stair Tread • safety, caution and danger zones • Durable, anti-slip and ergonomical •

• Stab Mat™ offers a stable and durable

• table to the Upper Katch Kan™

7. Upper Katch Kan™ • keeping stack/substructure clean and safe • Installs without the use of tools, clamping

• Designed with a 5” telescopic action for rig settling & tilt detection

8. Window Stripper™ • Wipes the exterior of drill string • through diamond slots • No need to pull master bushings while conducting

9. Adjustable Containment Enclosure™ (ACE™) • • Fully adjustable to accommodate all substructures • Extremely effective under kicks and windy conditions • Contains the spray from rotating controlled devices (RCD)

• Works in conjunction with ACE and Upper Katch Kan™ to capture any additional

• Made of lightweight, temperature and invert resistant super polymer • This product can be mounted at several locations on the stack assembly to meet any rig’s needs

11. H-Seal •

12. Surface Junk Basket™• In conjunction with the Window Stripper™, the

keeping foreign objects from going down the annulus • keeping objects out 13. Steel Adapter Plate • The steel adapter plate allows for the Katch Kan™ to be mounted directly above the BOP or

13. Steel Adapter Plate• The steel adapter plate allows for the Katch Kan™ to be mounted directly above the BOP or

14. Flow Nipple Seal •

• Easy to install • • Use with Nu-Lite™

15. Nu-Lite Flange Adapter™ • Provides the option to mount the 2nd ™

• is also temperature and invert resistant

16. Discharge Hose & Tank • 2-4” Invert resistant hose • 250 gallon tank with large opening to allow for trash dump

www.katchkan.comWorldwide Patents/Patents/Patents Pending

Call Toll Free: 1-800-840-2877

Whether you are interested in cutting costs, reducing injuries, or saving the environment, Katch Kan™ has you covered.

Part # Fits

2-3/8" 2-3/8" Body KK001-1 2-3/8" KK005-1 2-3/8"W ebwilson AXX

3" to 3-1/8" KK001-2 3" KK001-1.5 2-7/8" KK005-2 2-7/8"W ebwilson B

4-1/8" to 4-3/8" KK001-3 4" KK001-2 3" KK005-2 2-7/8" Foley Type B

4-1/8" KK001-3 4" KK001-2.5 3-1/2" KK005-4 3-3/4" Rostel B

4-5/8" to 4-3/4" KK001-3.5 4-1/2" KK001-2.5 3-1/2" KK005-4 3-3/4"W olley Super B

5" to 5-3/8" KK001-4 5" KK001-2.5 3-1/2" KK005-4 3-3/4" Varco HT-55

5-1/2" KK001-4.5 5-1/2" KK001-2.5 3-1/2" KK005-4 3-3/4" Varco DD

5-1/4" KK001-4 5" KK001-3 4" KK005-5 4-3/4" DB SLF

5-1/2" to 5-3/4" KK001-4.5 5-1/2" KK001-3 4" KK005-5 4-3/4" HT-65

6" KK001-5 6" KK001-3 4" KK005-5 4-3/4" Varco HDD

5-7/8" to 6-1/4" KK001-5 6" KK001-3.5 4-1/2" KK005-5 4-3/4"S uper A

6-3/8" to 6-5/8" KK001-6 6-1/2" KK001-3.5 4-1/2" KK005-5 4-3/4" HT-100

6-3/8" to 6-5/8" KK001-6 6-1/2" KK001-4 5" KK005-6 5-3/4" BJ-B

7" to 7-1/4" KK001-7 7" KK001-4 5" KK005-6 5-3/4"S uper C

6-3/8" to 6-5/8" KK001-6 6-1/2" KK001-4.5 5-1/2" KK005-6 5-3/4" Other HT Styles

7" to 7-1/4" KK001-7 7" KK001-4.5 5-1/2" KK005-6 5-3/4" BJ-DB

7-1/2" KK001-7.5 7-1/2" KK001-4.5 5-1/2" KK005-6 5-3/4" Other BJ Styles

5-7/8"7 " KK001-7 7" KK001-5 6" KK005-7 6-1/2"W ebwilson H

6" 7-1/2" KK001-7.5 7-1/2" KK001-5 6" KK005-7 6-1/2"W olley H

6-1/2"8 " KK001-8 8" KK001-6 6-1/2" KK005-7 6-1/2" THG-C Custom20-3/4" 3000 2 33-3/4"

13-5/8" 15,000 2-1/4" 30-3/8"

13-5/8" 10,000 1-7/8" 26-1/2"

13-5/8" 5000 1-5/8" 23-1/4"

19"

13-5/8" 3000 1-3/8" 21"

15-1/2"

11" 3000 1-3/8" 18-1/2"

12-1/2"

9" 3000 1-3/8" 15-1/2"

FNS-6-1

7-1/16" 3000-5000 1-1/2"

9" 5000 1-5/8"

11" 5000 1-7/8"

FNS-301

FNS-302

FNS-303

FNS-304

Pressure Rating(lbs.)

Bolt Size Bolt Circle

FNS-001

FNS-101

FNS-102

FNS-201

FNS-202

FNS Stack Size

Top PlateSize

THG-AAX

THG-BJ

THG-H

Drill PipeSize

Tool JointSize

Kelly KanªSeal for ToolJoint Part #

Seal IDKelly Kanª

Seal for PipeBody Part #

Seal ID Part #

5"

5-1/2"

2-7/8"

3-1/2"

4"

4-1/2"

Rig Safety System™ (RSS™)

Zero Spill System™ (ZSS™)

1. Elevator Guard

2. Tong Handle Guard™

3a. Kelly Kan™ & Extended Kelly Kan™

3b. Kelly Kan™ Seal Kit

4. Kelly Bushing Guard™

5. Splash Guard™ / Slip Handle Guard

6. Katch Mat™ / Stab Mat / Stair Tread

7. Upper Katch Kan™

8. Window Stripper™

9. ACE™

10. 2nd Stage

Katch Kan™

11. H-Seal

12. Surface Junk Basket™

13. Steel Adapter Plate

14. Flow Nipple Seal

15. Nu-Lite Flange Adapter™

16. Discharge Hose & Tank

Tong Handle Guards (#2)

Flow Nipple Seal (#14)

1 & 2. Elevator Guard & Tong Handle Guard™ • Cuts down on lost-time-incidents by preventing hand crush injuries

• Lightweight and installs in minutes • Strong, durable & resilient

3a. Kelly Kan™ & Extended Kelly Kan™ • • Lightweight at 27lbs (extended 54lbs) • Fits on the Kelly, top drive, regular drill string, heavy-weight DP, drill collars, test tools and casing up to 8”

3b. Kelly Kan™ Seal Kit • plates, helping inventory control

•

• drill pipe, test tools and other parts on the string from 23/8”-8”

• Plates and Seals sold separately from case

4. Kelly Bushing Guard™ • Protects workers from accidents and fatalities related to objects and workers being caught in Kelly Bushings

• Quick installation and removal

5. Splash Guard™ / Slip Handle Guard • • Flexes down for easy insertion/ removal of slips • Works in conjunction with Katch Mat™ and Kelly Bushing Guard™

• Protects workers from getting caught in slip handles

6. Katch Mat™ / Stab Mat / Stair Tread • safety, caution and danger zones

• Durable, anti-slip and ergonomical •

• Stab Mat™ offers a stable and durable

• table to the Upper Katch Kan™

7. Upper Katch Kan™ • keeping stack/substructure clean and safe

• Installs without the use of tools, clamping

• Designed with a 5” telescopic action for rig settling & tilt detection

8. Window Stripper™ • Wipes the exterior of drill string • through diamond slots • No need to pull master bushings while conducting

9. Adjustable Containment Enclosure™ (ACE™) • • Fully adjustable to accommodate all substructures • Extremely effective under kicks and windy conditions • Contains the spray from rotating controlled devices (RCD)

• Works in conjunction with ACE and Upper Katch Kan™ to capture any additional

• Made of lightweight, temperature and invert resistant super polymer • This product can be mounted at several locations on the stack assembly to meet any rig’s needs

11. H-Seal •

12. Surface Junk Basket™• In conjunction with the Window Stripper™, the

keeping foreign objects from going down the annulus • keeping objects out 13. Steel Adapter Plate • The steel adapter plate allows for the Katch Kan™ to be mounted directly above the BOP or

13. Steel Adapter Plate• The steel adapter plate allows for the Katch Kan™ to be mounted directly above the BOP or

14. Flow Nipple Seal •

• Easy to install • • Use with Nu-Lite™

15. Nu-Lite Flange Adapter™ • Provides the option to mount the 2nd ™

• is also temperature and invert resistant

16. Discharge Hose & Tank • 2-4” Invert resistant hose • 250 gallon tank with large opening to allow for trash dump

North America: 1-800-840-2877International: 1 (780) 414-6083

info@katchkan.comwww.katchkan.com

We Protect Lives & The EnvironmentWorldwide Patents & Patents Pending facebook.com/KatchKanLtd @KatchKan

SSSSRigSafetySystem™SSSS

ZeroSpillSystem™

LEARN MORE:

3www.smrs.net.au edition 7 - 2013

ContentsArticles

4 Welcome Note from Sharyn mcCulloch

5 Feature Profile a chat with Trevor Orchard

8 The Politics of Mining

10 Feature Test Pumping - Safety Through innovation

11 Water Hammer achieves impressive record in Korea

13 DNRM Operating Plant Guidelines

14 Hydraulic Systems Basics 15 Got a Problem? Try Asking WHY

16 Bushy’s BBQ

18 Bob and Shorty’s Great Australian Pub Crawl

22 What’s ON

SMRSSafety management & Risk Solutions Pty Ltd

PO Box 1092, Sanctuary Cove Qld 4212

F/T: 07 5514 8597M: 0404 039 081 W: www.smrs.net.au

Introduction toDRILLING PRACTICES

1 DAY WORKSHOP

COURSE CONTENT

  • Drill plant explanation & familiarisation

• The use of down-hole circulation mediums in drilling – air and mud

• Drilling mud weight principles • Hydrostatic head pressures • Down hole formation

characteristics & pressures • The diamond core drilling

process – from pre-spud to core presentation

• Well control practices, using annular blow-out preventers & wireline strippers

• Possible down hole problems and remedies

• Gas detection equipment – familiarisation, operation & scheduled testing practices

• Qld Petroleum & Gas, and Coal Mining legislation

• Personnel obligations under relevant legislation

• Safety management plans • Work procedures • Drill site safety equipment

requirements • Drill site exclusion zones • Equipment certified inspection

scheduling

4 www.smrs.net.auedition 10 - 2014

Welcome to our first edition of The gUaRDian for 2014. Despite all the gloom and doom in the

australian mining industry at the moment we are very thankful to have found ourselves quite busy during the first quarter.

Like many businesses servicing the Coal, mineral and onshore gas industries, SmRS has had to knuckle down and consolidate its activities in order to conserve resources whilst riding out the downturn. Therefore we have reduced staffing levels and leased our offices at Seventeen mile Rocks, moving to smaller premises at Sanctuary Cove in Queensland. not that it’s any hardship operating out of Sanctuary Cove!

We continue to provide the quality boutique style Health, Safety and Risk management services we always have with experienced consultants available and ready to assist with your requirements.

i hope you enjoy this edition of our magazine, besides a thought provoking ‘political’ article by Chris Towsey on the current state of the mining industry, we have another driller’s poem by mick Pedlow, and our Feature Profile providing us with an interesting insight into the life of Ships Captain, Trevor Orchard, who works in the offshore oil and gas industry off the coast of Western australia for go Offshore.

For some lighter entertainment we have Shorty and Bob’s great australian Pub Crawl, i hope our international subscribers in particular will find this a rollicking good read, unfortunately we couldn’t fit in all the amazing photos but you are welcome to follow Shorty and Bob on their excellent adventure via Facebook.

For those of you involved in QLD Oil & gas, we have another Drilling Contractor’s Obligations under the QLD Petroleum and Gas (Production and Safety) Act 2004 Workshop coming up, please go to our What’s On page for details. also look out for Lauren’s article on the guideline to what is Operating Plant under the Petroleum and Gas (Production

and Safety) Act 2004 and interaction with the Work Health and Safety Act 2011, released by the QLD DnRm in February this year.

a big thankyou to all our contributors for this edition. if you would like to contribute to our next magazine, please don’t hesitate to contact me.

Keep it turning to the right

Sharyn

welcome note

Sharyn McCulloch | Managing Director

F/T: 07 5514 8597M: 0404 039 081 | www.smrs.net.au

Welcome note

i currently work for a company (gO Offshore) in the Oil and gas exploration industry, mainly towing drilling rigs from one oil

exploration location to the next oil exploration location. Once a drilling rig is located my vessel then services the drilling rigs with their day to day material needs. i usually work on a vessel of approximately 80 metres in length with around 12000KW of power. i do a five week rotation on and off. The ship has a crew that can vary from 15 to 20 depending on what we are doing at the time.

What made you want to become a Ship’s Captain?early on in my sea going career i decided that if i was going to stay in the maritime industry i might as well be the person running the operation. So from then on it was just a natural progression as i gained each certificate and was promoted higher up the ranks by the company that i was working for at any given time, i felt that being a Ship’s Captain was the natural thing to do with my life.

How did you first get involved in the oil & gas offshore industry?it was in 1988, i was getting bored with oil

tankers and there was some large projects coming up in Bass Strait (australia), so i applied for a job as a 2nd Officer with australian Offshore Services and was lucky enough to be given employment with that company and the rest is now history as they say.

What has been the most precarious situation you have found yourself in, in your current role and what was the outcome?That is a hard question to answer!By the nature of the work that we do, there are from time to time some jobs that do go wrong, regardless of planning or procedures in place. You can also have things (machinery wires, shackles, pear links, swivels) break while out on a job. i have been involved in several tricky situations over my time as a Ship’s Captain but i have not had an incident or break down that we could not resolve or work our way around. So i can say that from any precarious situation that i have found myself in, i firstly think it through and consult with like-minded people on board my ship in deciding how to best get out of it.The outcome has generally been good and successful!

Have you ever had to manage a major emergency at sea? The one major emergency that i can relate to was on a voyage from Dampier (australia) to Singapore on a very old ship that was being returned to its owners (it was a chartered ship in very poor condition) and we got caught in a cyclone.i was called to the bridge at around 0400 hours and told by the Chief Officer that the seaman on watch had reported that there was water in the lower alley ways and forward store room. The weather conditions were not the best and on further investigation it was ascertained that we were shipping water through a ruptured watertight door into the ships anchor chain lockers. The vessel was then hoved too (turned around and settled as best we could) until repairs could be made to the watertight door and the chain locker pumped out. We then slowly continued our journey to Singapore. all our fridges and freezers were out of action after the ingress of the salt water, so we had to retrieve what edible food from them that we could and ration food for the rest of the voyage.

feature | profile

5www.smrs.net.au edition 10 - 2014

Trevor OrchardI started my working life in 1971 as an apprentice shipwright in Victoria Australia. From there I went away to sea in December 1975 as a shipwright on board various ships, including bulk carriers, container ships and oil tankers. At a very early stage of my sea going career I realised that if I was going to stay in the shipping industry, I would have to further my education and either be a Marine Engineer or a Deck Officer (as my future as a shipwright was very limited). In 1983 I studied for and gained my second mate’s certificate at the Australian Maritime College. After completing my studies I went back to sea as a 3rd then 2nd Officer on oil tankers mainly trading between the Persian Gulf and ports in Europe and Asia. After gaining experience and sea time I again went back to college in 1988 at RMIT in Melbourne Australia to study for my Chief Officer’s certificate, then after more sea time and experience as a Chief Officer, in 1991 I studied for my Master Class 1 certificate at RMIT. I gained my first command in 1993.

6

feature profile cont.

www.smrs.net.auedition 9 - 2013

What would you consider to be your main challenge when working a swing (5 weeks on / 5 weeks off) off the West Australian coast?For me personally the main challenge is fatigue, as i am on call 24/7 so it is vital for me to manage my fatigue as best i can. For the whole crew (including me) it would have to be time away from family and loved ones as the main challenge, 5 weeks away from home creates all sorts of challenges for not only me out at sea but also for family at home.

What type of morale issues are faced by your crew on a 5 week swing, and how do you manage them? again this is a hard question to answer!!! i have a very diverse crew in regards to age difference and ethnic origins (crew from several countries), so a lot of the morale issues i have to deal with will centre on cultural issues and offence being taken by one crew member, by other crew members actions of things that they may have said in front of others. i’m also very mindful of the crew living in close confines for an extended period of time and the different habits and traits individuals have and how that can affect other crew members.i usually manage these situations by being very upfront with individuals. i do this by sitting them down and talking through what a crew member may be doing that may be upsetting others in the crew. When it comes to family issues i usually try to assure a crew member that personal home issues are best resolved face to face at home and not to make rash decisions while out at sea.

What do you think will change about your industry over the next 5 years?We will continue to do the same job but advances in technology will allow the industry to drill for and find oil in much deeper water than we can now. The ships will be getting more advanced manoeuvring equipment and bigger than they are now and will therefore be more cost effective. also, i will be 5 years older!!!

What’s the best thing to happen since you’ve been working in the industry?The safety culture of the people working in the oil and gas industry has changed, people are much more aware of what is a safe way to do the job and are not afraid to say “hey that’s unsafe let’s stop what we are doing and look at another way of doing this job”

What do you find the most challenging thing about working in the industry?There are a numerous challenges in my job but i would have to say getting my crew to do things as per company procedures and policy as well as my own standing orders, would be the most challenging thing that i have to contend with on a day to day basis. also as i touched on previously, crew morale is a constant challenge and takes up a lot of my time.

What would you say are some of your strongest beliefs about safety and workplace culture?

JSea’s (Job Safety and environment analyses) and Toolbox Talks do work in reducing incidents and injuries!!! We have stopped killing and maiming people.i am constantly talking to my crew about doing the job in a safe manner and if they are not happy about the way something is being done, stop the job and come and talk to me about it.also as i touched on earlier, the safety culture of the people working in the oil and gas industry has changed.

What would you consider to be your highest risk exposure at sea, and how do you manage it?Without a doubt the riskiest job we do in our work is a rig shift. We are exposing our crew and the ship to very difficult conditions when we are pulling or running the anchors in water depth up to 1500 metres that hold a drilling rig in position when it is drilling for oil. at times we can have the crew working out on the deck area connecting to or disconnecting shackles to wires and relying on deck equipment to hold wires and anchors in place which are under very heavy load.

Have you ever run a ship aground, if so what did you learn from that? no i have never run a ship aground (touch wood)!But i have had the unfortunate experience of having to relieve a captain who had just run a ship aground, and it was not a very pleasant task at all as i knew the guy personally and we both knew what his future prospects would be. it is not a very good look on your CV!

Who has been the most influential person in your working life and why?i cannot pick out any one individual that has been the most influential person in my working life. There have been lots of people that i have used as role models and i have taken bits and pieces from many people during my career

to help me get though my work and my life in general. i must say though that my father way a great bloke and he taught me about good work ethics and to always listen to your workers (he was a small business owner)!

What is the most rewarding experience you’ve had and why?again a very difficult question to answer, as there have been so many rewarding experiences in my life!Life itself would have to have been the most rewarding experience that i have had so far and it’s (hopefully) far from over.

What might we be surprised to know about you?now if i told you it wouldn’t be a surprise, would it!Stock standard answer to that question

What do you do when you aren’t working?i like to stay fit and healthy; love to entertain friends at home. You will laugh but i have a boat and love to go out for the weekend on my local waterway and enjoy what god has given us to enjoy. i love to read, i ride a motor bike and i love a glass of good red wine.

If you could have any three people alive or deceased, at a private dinner party who would they be and why?my Parents would be the first two people:Because they bought me into this wonderful world and taught me right from wrong.

The other person would be John eales:Then i could ask him what it felt like, after he kicked that conversion (in extra time) to retain the Bledisloe Cup against the all Blacks, in Wellington in 2000.

Contact details:

Trevor OrchardHope island Queensland australia

7www.smrs.net.au edition 7 - 2013

Contributors

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EditorSharyn mcCullochsharyn@smrs.net.au | 0404 039 081

ContributorsSharyn mcCulloch | Lauren DearingTrevor Orchard | greg WilsonShorty & Bob Lane | Brad JacksonSimon Fitzgerald | marcus mcarthurChris Towsey | mick Pedlow

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Trevor orchardShips captain, Go offshore

Feature Profile

The Politics of Mining:The Effects of Supply and Demand on our Mining Industry

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Safety Management

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Do you KnoW our neW ContACt

DetAIlS?

In January 2014 the SMRS relocated to our new office space located in beautiful Sanctuary

Cove on the Gold Coast, 65km south of the Brisbane CBD. Our new contact details are:

Mail: PO Box 1092, Sanctuary

Cove Qld 4212

Phone/Fax: 07 5514 8597

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it is business as usual for the SmRS team, and to celebrate the move SmRS is offering 15% off the purchase of all SmRS gUaRDian® OHS management Systems sold during the month of april 2014!Please do not hesitate to call Sharyn mcCulloch on 0404 039 081 for a no obligation, confidential chat if you need assistance with:

• Risk Workshop Facilitation• Drill Rig and Plant Inspections • Facilitation of JSAs and Work Procedures• Home of SMRS GUARDIAN Safety & Health Management Systems for Contractors and Operators• QLD SafeOp Audits• QLD CMSH Act and Regulations Audits• Effectiveness Reviews• General and Contractor Safety & Health Audits• General Risk Management & Safety Consulting

The SmRS team are looking forward to keeping you and your team safe and well at work in 2014!

8 www.smrs.net.auedition 10 - 2014

The views expressed here are the personal views of the author and not those of his employer.

Politics impacts on all aspects of mining. The politics of legislators, both those elected and those appointed without public opinion or scrutiny, determines employment policies, the influence of unions and employer bodies, compulsory employment conditions such as superannuation, annual leave and leave loadings, royalty regimes, legislation, taxation levels, rates, fees and charges, export licences, investment sentiment, access to capital, interest rates and exchange rates.

Working independently of this is the law of supply and demand which sets commodity prices. The mining industry is unique in that it is a price-taker, not a price-setter. if you manufacture BmWs, you know what it costs for your labour, plant, equipment, energy and raw materials. You can then determine exactly how much it costs to produce your car, and how many cars per day you can produce. You can then set your own price, and ensure you have a comfortable profit margin, usually 30% of revenue for a successful business, and a 15% pa return on capital invested. You then run an advertising campaign to convince buyers that their life is inadequate unless they drive a BmW and they are willing to pay the price you set. mining doesn’t work this way – we supply a commodity into the market, but the buyer tells you what price he is willing to pay. if you don’t accept his price, he buys his commodity from someone else, and you’re stuck with a stockpile of material you have paid to produce but cannot sell. You employ a marketing division to convince the buyer to accept your price – they may or may not succeed. There is plenty of competition and when supply exceeds demand, the buyers force the price down.

You have to set your business up to cope with unplanned drops in prices. Your profit is simply the difference between revenue and cost, so you have two ways to keep your profit margin constant or improving – either increase revenue or reduce costs. if the price you are being given is dropping, you can only increase revenue by selling more of the commodity, or by selling off assets. Cost cutting is easy – just sack people, as wages make up somewhere around 40% of costs in mining, and often more in supplier businesses and consultancies. Costs can also be reduced by eliminating debt to reduce interest payments, so assets are often sold to reduce debt. if you are a listed company, you can sell more shares rather than sell more product to increase revenue.

Selling more product profitably means increasing both production (tonnes per day) and productivity (tonnes per person per shift). Henry Ford in 1908 was taking about 12 hours to assemble one T-model Ford car. By introducing the moving production line assembly process, he dropped this to one car every 90 minutes and could churn out 1,000 cars a day. in 1914 his plant produced 308,162 cars. But he didn’t cut staff or wages. in fact, he doubled his workers’ wages to $5 per day from the $2.45 standard, reduced their working shift from nine hours to eight, and their working week from six days to five days. However, reducing the hours per shift meant he could now run three 8-hour shifts instead of two 9-hour shifts. The increased wages meant that his own workers now earned around $1,200 per year and could also now afford to buy his car, which sold for $825 (about $22,000 in today’s dollars). He eventually got the cost down in 1924 to about $260 per car or about $7,000 in today’s money.

Contrast this with Holden, who in its peak export year in 1973 exported 41,181 vehicles. By 2005, it exported 60,158 vehicles. in 2012, Holden reduced its general assembly and engine assembly lines to one shift per day but increased the line speed by 40%, turning out the same number of vehicles as before the shift reduction, reducing costs. However their 2012 business model was “focusing on what we can control and what is valued by our stakeholders. That is, to improve our competitiveness by continuing to improve our quality, eliminating waste, improving efficiency, reducing costs and managing our social and environmental responsibilities. in order to maintain a competitive business, we reduced our previously forecasted growth in exports and adopted a strategy of growing sustainably, lowering our cost base and producing

small vehicles to ensure we are profitable on domestic production alone.” (Holden Business Report 2012)

nothing about increasing revenue. Only focused on cost reduction, and cutting exports. Holden will no longer manufacture cars in australia from 2017. Toyota on the other hand has a major export focus and (at least for today) continues to manufacture vehicles in australia. Some commentators also pointed out that Toyota produces twice as many cars per person per shift than Holden. Holden has had several government-funded bailout packages and was demanding more to remain as an australia manufacturer.

the charts below details Holden’s performance from 2010 to 2012.

Revenue and profits dropped dramatically, from a profit of $112m in 2010 to a loss of $152m in 2012 (Figure 1).

The main reason for the reduced revenue was a failure to sell cars, with the average revenue per vehicle sold remaining almost constant. in 2012, Holden sold 16% fewer cars than in 2010, yet revenue per car increased by only 2% (Figure 2). With 114,000 cars sold in 2012, this is 314 cars per day,

The Politics of Mining

Figure 2. Holden vehicles sold and revenue per vehicle 2010 to 2012.

Figure 1. Holden Revenue and profit 2010 to 2012.

By Chris Towsey

9www.smrs.net.au edition 10 - 2014

compared to Henry Ford’s 814 cars per day back in 1914.

Holden’s profit margins weren’t helped by its employees’ wages and lack of productivity. Wages rose 14% from 2010 to 2012 while the number of cars sold per employee fell by 6%. in 2012, the average wage for a Holden employee was $98,400, while the average number of cars sold per employee was 26.8. While we can argue about whether or not the wages are fair or justifiable, the cars sold represents revenue of $935,000 per employee, so each employee earns 10 times what they cost the company. The total

wages bill in 2012 was $421 million, or 11% of revenue (Figure 3).

as Holden made a loss of $153 million that year, wages represent 10% of costs. So wholesale sacking of the workforce would not change the costs dramatically. Sacking 50% of the workforce would only reduce costs by 5%.

Their greenhouse gas emissions were 148,000 tonnes of CO2 equivalent, so a carbon tax of $20 per tonne of CO2 would have cost them $3m, less than 1% of costs or revenue. Their water consumption was 407,847 kilolitres. my local council charges me $2.44 per kilolitre, so at the same rate (Holden may pay less) their water consumption would have cost them just under a million dollars, not a significant impact on costs. So while we may like to moan about the political costs of environmental factors, they don’t seem to have a dominant effect on costs. i would agree that every 1% you can reduce costs is worth doing, but surely having your revenue drop by 14% has a bigger impact, especially when you control the price of your product, and you have the advertising power to influence sales volumes.

Like Holden, mining is impacted by other factors outside your direct control. The exchange rate impacts heavily if your commodity sales contracts are in US dollars, and your heavy equipment imports are priced in US dollars. The drop in australian manufacturing means that much of the plant and equipment we require is now coming from overseas as australian manufacturing drops off. a one-cent change in the exchange rate will push your revenue or costs by 1%. So the

drop in the exchange rate from a$1.04 to the US dollar down to a$0.88 to the greenback has increased australian-dollar revenue on a US dollar sales contract by 16%, good news if you are an exporter. good news for off-setting your australian dollar wages bill. But bad news if you are an importer. a piece of heavy plant that may have cost you $2 million before will now cost you an extra $320,000. That’s an extra 6,400 tonnes of thermal coal at $50/tonne you have to produce to gain revenue of $320,000, but if it costs you $40/tonne to produce it – a profit margin of $10/tonne - you need to mine an extra 32,000 tonnes

of coal to produce $320,000 of profit to pay for the increase in the cost of your plant caused by the exchange rate.

The Reserve Bank controls the exchange rate, based on a basket of currencies and commodities. The Reserve Bank is not a government department, it’s

a private business with accountability

to government. We all saw the enormous pressure placed on the Reserve Bank by politicians in the lead-up to the last election to bring down the interest rate so home-owners would be better off and able to spend more.

WHeRe iS THe maRKeT gOing?For drillers and small to medium explorers,

drawing funds from the stock market is the usual source of finance. mines can’t start without an ore reserve, and this usually means close-spaced drilling. no money = no drilling = no reserve. The expenditure on drilling and exploration is tabulated quarterly by the australian Bureau of Statistics. Over the last 40 years, i have observed that our industry moves on a seven to ten-year cycle. a succession of rising interest rates indicates that lending is tightening up, meaning a drop in the major projects as financing becomes more expensive. These major projects – highways, dams, supermarket complexes and retail centres – are major consumers of mining products such as concrete, steel, aluminium, zinc for galvanising and copper for pipes and wiring. When demand drops off,

mine stockpiles increase and the glut drives commodity prices down, curtailing investment in exploration.

When interest rates drop, the reverse happens.

The chart below shows the cycle in exploration expenditure and metres drilled. The sudden drop-offs were in 1973, 1981, 1988, 1998 and 2008. The industry spends four to five years in the trough, three years on the rise, 18 months at the peak and crashes within six months after the peak.

in recent years since the gFC in 2008, interest rates have dropped, but speculative investment didn’t go into exploration. it went into alternative energy generation technology, batteries and internet apps. We saw a similar thing in the internet bubble in the 1980s and biomedical stocks in the 1990s.

Based on this, the exploration industry should rise slowly but steadily to 2015 and 2016, boom in 2017 and then crash in October 2018. The crash always comes in October, as the end of the financial year in europe is 30 September, when the central banks sell masses of gold to improve the bottom line apparent profit and then have to buy back in October to stabilise their currencies. By late October and november, they can’t hide their profits any longer.

So how do i plan my business around these cycles? i’m not a financial adviser and this isn’t financial advice, but i would aim to be debt-free by late 2016 or early 2017, so that i don’t have to service excessive debt levels while interest rates are rising and capital is tight. Liquidate shares in 2017 and buy physical gold, so i can snap up cheap shares when the market crashes in 2018 – remember, in every crash when people are losing money selling off their crashing stocks, someone is buying them. You can’t sell a share unless

someone else buys it. Could be a good time to pick up a one- or two-year old rig that someone can’t afford the repayments on as well.

‘The miners had removed most of the easier iron ore and were forced to dig deeper into the water table, that involved more dewatering of the mines and therefore more test pumping’ said marcus.

mDP made the decision to sell off its assets in drilling to concentrate on test pumping.

although mDP had conducted a lot of test pumping they decided to break away from c o n v e n t i o n a l test pumping techniques and develop a safer method of installing s u b m e r s i b l e pumps.

From there the company developed a system utilising High Density P o l y e t h y l e n e (HDPe) on a reel.

The first reels were powered by hand to lower and extract the pumps, later the reels were modified and fitted with a power drive.

as a natural progression from there, the company developed a way of pumping larger flows whilst still incorporating the reel system. Large diameter pipes could not be coiled on a reel that was readily transportable. a triple tube system was the answer to the problem.

Coiling three entwined pipes enabled large capacity pumping rates from a riser pipe that could still be wound on a reel. Furthermore the

pump electric cable and transducer lines were also combined in the pipe bundle allowing for a hands free installation process.

The on-board computer is programmed to conduct all test pumping steps and procedures autonomously once started from a touch screen. Data is recorded automatically and can be downloaded from a USB port.

‘There is no test pumping system in the world, as far as we can determine, that can be operated by a single person with no previous test pumping experience’ marcus said.

as safety is paramount in iron ore or in any mining operation, ‘this machine eliminates all risks specifically associated with installing and removing submersible pumps, there are no overhead lifts and no manual handling

involved’ said marcus.The company holds the australian patent

for the system and has applied for worldwide patent rights with a view to marketing the units overseas.

You can find a video of the unit on their website at www.mdptestpumping.com.au .Contact:

Cameron or Marcus McArthurMcArthur Drilling & Pumping Pty Ltd.6 Langar Way, Landsdale, Perth, WA 6065

Ph: +61 (8) 9303 2414, F: +61 (8) 9342 0572, M: 0438 876 080,E: cameron@mdptestpumping.com.au www.mdptestpumping.com.au

TEST PUMPING

10 www.smrs.net.auedition 10 - 2014

feature

Safety through innovation

McArthur Drilling and Pumping Pty Ltd (MDP) located at Landsdale Perth provide contract test pumping operations to the mining sector in WA. The company was founded in 2006 by Marcus McArthur who saw an opportunity when the big miners began depleting the iron ore reserves near the surface.

By Marcus McArther

www.smrs.net.au edition 10 - 2014

at a site in gwangju city in Korea, a joint venture is investigating the potential of drilling deep geothermal wells to

ultimately produce commercial quantities of electricity. The joint venture partners include gwangju City, KiTeCH and Hanjin D&B. in august last year, a hole was completed to 3502m using a 213mm TC bit and a Water Hammer manufactured by Hanjin D&B. Previously projects in Sweden and the UK have demonstrated the potential of the concept, but this is the first truly deep well completed. HanJin D&B drilled the well, using their 350-W top drive rig.

Hanjin engineers have been working on the water hammer since 2008. The latest successes emanate from a project designed to investigate the viability of producing deep geothermal wells for power generation. Phase #1 called for an initial well to 2500m, which reached a depth of 2505m in 2012. The target for the 2nd phase called for a well to a depth of 3500m.

in april 2014 the consortium will commence drilling a hole to a target depth of between 5800m to 7000m. The final design diameter is 254mm.

With the most recently completed hole, the top 18m of soft material was cased off with 12” steel casing, and a second string of 8 1/2” casing was cemented into the granite at 40m depth. The hole was completed to a depth of 3502m, using aPi 5” nC50 rods and a Hanjin Water Hammer with a 216mm diameter TC button bit.

Utilising traditional mud rotary methods, ROP’s in similar formations (i.e. granites) were around 2 – 3m/hr. But the water hammer has taken the project into a different dimension. So how did the water hammer perform?

While penetration rates of over 20m/hr were achieved in the upper sections, the average ROP from 1500m to 3502m was 14m/hr – considerably faster than previous rotary methods in the same formations. The Water Hammer was also far more fuel efficient.

an efficient and reliable water hammer overcomes TWO traditional problems: -

1/ R o t a r y methods are relatively slow and require far bigger sites due to the requirement for large fluid sumps and mud systems;

2/ Conventional DH Hammers do not work efficiently in elevated down-hole temperatures, and additional air is required if down-hole aquifers are encountered. Thus, fuel to run the additional compressors and boosters can be very significant. Then there is the noise level.

The Hanjin 350W rig used for the drilling is powered by a 400kW engine, and has a pull-back capacity of 350 tonne. Coupled with high-pressure pumps and a compressor, the total set-up utilises just over 1700 kW. The water pumps have a total capacity of approximately 800 litres /minute, more than sufficient to run the water hammer efficiently.

One of the significant issues is the purification system required to clean the return water to a suitable standard, able to operate the water hammer without excessive wear from recirculated cuttings & fines? On the plus side, total fuel consumption is relatively low

(compared with high pressure air systems) and the overall noise level is dramatically reduced. This is particularly relevant when drilling in urban areas. The rig is also equipped with a rod handling system, and all the components are able to be accommodated on a site approximately 45m x 45m.

While it would be reckless to hang ones’ hat on the experiences from just one deep well, it is clear that penetration rates in the range of 10m – 20m per hour are achievable. Better bit life was also achieved, which translates to less rod tripping and thus more time actually drilling! moreover, the reduced fuel usage is a considerable saving in itself!

Ultimately, such savings could change the overall economics of utilising geothermal energy from deep wells, bringing the possibility of using non-fossil fuels closer to reality. These advances indicate a total project cost reduction in the order of 50%! The Water Hammer method also solves two serious environmental issues – noise and large drill sites.

We look forward to reporting on the progress of the next deep well starting in april.

if you would like any additional information please contact Rick Dudley (0408 – 101 504) or Simon Fitzgerald (0417-936 461) at McCullochs D&B in Bendigo.

Water Hammer Achieves Impressive Record in Korea

Date Rod No Depth (m) Elapsed time (hr) ROP (m/hr)

June 29 98 889 0.47 19.29 99 898 0.52 17.42 100 907 0.52 17.42

101 916 0.37 24.55

By Simon Fitzgerald, mcCullochs D&B

12 www.smrs.net.au

DNRM Operating Plant Guidelines

in February 2014 the Queensland Department of natural Resources and mines released the Guideline to what is

Operating Plant under the Petroleum and Gas (Production and Safety) Act 2004 and interaction with the Work Health and Safety Act 2011, the DnRms long-awaited narrative for defining Operating Plant and how the P&g act interacts with the QLD Work Health and Safety act 2011 to manage the hazards and risks to the safety and health of workers on a petroleum and gas lease.

The guideline is available for download from the DnRm’s website. This review comes with a recommendation that executive Safety managers, Site Safety managers, Operators, Supervisors and workers on a petroleum and gas lease become familiar with the content of the guideline; you may also find it helpful to have a copy of the guideline available as you read through this review.

operating PlantFor some the release of the P&g act and

Regulations in 2004 delivered much needed clarity but also a mild headache when it came to managing the potential hazards and risks on a P&g lease. Questions were raised about defining Operating Plant (OP), and which government agency has more authority – the DnRm or Workplace Health and Safety Queensland (WHSQ). given the complex nature of the operations on a P&g lease it can be confusing for management to understand their roles and responsibilities. an Operator must identify the OP on site, but then add to the mix the need for a Safety management Plan (SmP), the Stages of OP, and that there are dual jurisdictions under the P&g and WHS legislation, and you can see the cause for confusion. That is why the new guideline from the DnRm is welcomed with open arms.

Section 3.0 What is Operating Plant under the P&g act of the guideline provides the official definition of OP, specifically the three types of OP found on a P&g lease; they are:

- Specified individual facilities and plant [s670(2)],- Places where specified activities occur [s670(5)], and

- authorised activities as a whole undertaken in petroleum authorities [s670(6)]

Appendix 1 Types of Operating Plant by stream classification, of the guideline provides the reader a list of the activities and plant that may fall into these categories. Some of these examples are identified below in table 1.

The guideline answers the Who, What, Where, When, Why and How of OP. Take authorised activities for example, the guideline states authorised activities under the P&g act are outlined at the beginning of each tenure section within the act. These will include the specified activities for the tenure (e.g. for an authority to prospect – exploration and testing) and any incidental activities required to conduct the specified activities (e.g. road and temporary camp construction and use). authorised activities are not deemed to be OP unless they are operating “as a whole”. This means is that each activity on its own is nOT considered OP (unless stated in s670(2) or (5), and this is because the intention is that the authorised activities OP should have a single overarching SmP covering all those authorised activities.

Safety Management PlansSection 6.1 Safety management Plans

states the critical obligation for operating plant is that safety is managed by the development and implementation of a safety management plan. Section 674 and 675 of the P&g act detail the requirement to have an SmP, and what information must be included respectively. as mentioned above, it is critical that the Operator (the person responsible for developing the SmP) identifies what OP must have its own SmP and what is considered OP when operating as a whole, as this requirement will vary depending on the type of OP, and the stage at which it is in use.

Stages of operating PlantSection 4.0 Stages of OP under Petroleum

and gas (Production and Safety) act 2004 details the stages of OP; they are

- Construction,- Commissioning,

Operation,- Maintenance or modification, and- Decommissioning.

The guideline discusses what is involved in each stage and advises that some OP will not advance through each stage; i.e. for authorised activities the commencement/undertaking of the activity would… be considered to be the “operating” stage of the plant. So regardless of the activity, such as construction of a road or a camp… the actual “doing”… of the activity would be considered to be the “operating” stage.

it is important to understand the stages of OP as this is where confusion can lie with regards to interacting jurisdictions of the P&g and WHS legislation. going back to the example of the construction stage above, the guideline says that this is only a stage of OP under the P&g act in limited circumstances. it is here that the reader can become confused as there are a number of conditions under the P&g legislation that must be considered when developing the SmP; i.e. construction is only a stage of OP under the P&g act iF:

- Rigging up or down of the drill rig;- The OP is being constructed within or part of an existing OP;- The OP is being constructed adjacent to existing OP and the SMP for the plant provides that the plan applies to construction work;and there are some situations where both

the P&g act and WHS act apply. See pages 8 to 10 of the guideline, and Table 1.

Interaction of P&G and WHS Acts There are a few examples listed in the

P&g and WHS acts whereby the lines can seem blurred when discussing who has jurisdiction. These include construction work, major Hazard Facilities (mHF), and hazardous chemicals. However it is also worth noting the requirements of incident notification and memorandum of understandings when identifying areas of shared authority and agreeing on the management of those shared areas between WHSQ and the DnRm.

edition 10 - 2014

Guideline to what is Operating Plant under the Petroleum and Gas (Production and Satety) Act 2004 and interaction with the Work Health and Safety Act 2011

Review of the

Incident notification and reporting it should be noted that both the P&g

and WHS acts provide strict requirements for reporting incidents. But who shall be contacted if a notifiable incident occurs at a mHF involving LPg gas, for example? The guideline tells us in section 5.4 application on major Hazard Facility (mHF) and section 5.5 Hazardous Chemicals that these two things (mHFs and hazardous chemicals) are managed primarily under the WHS act; therefore it is important to understand the distinction between who has authority, and why. Section 5.8 of the guideline gives the reader a breakdown of the more questionable scenarios when determining which government agency will have authority.

Note: The guideline states in the event of an incident occurring, industry must follow their statutory obligations… which where both acts apply would mean they are required to notify both the P&g inspectorate and WHSQ. if there is any doubt about which act applies, it is recommended that a cautious approach is taken and both agencies are notified.

Memorandum of understanding (Mou)

a mOU will be developed to assist the WHSQ and DnRm manage areas of dual jurisdiction, effectively to create a written contract between the two agencies, detailing the responsibilities of each. The purpose is to foster a collaborative management approach of the OP in question. it is important to highlight, however, that while an mOU may identify one agency as the lead, neither can neglect their legislated responsibilities under their respective acts.

Section 5.9 memorandum of Understanding, page 18 of the guideline lists six main examples of where an mOU defers lead agency responsibilities.

Summarya review of appendices 1 through to 23 of

this guideline details for the reader all of the supporting evidence from both the P&g act and the WHS act providing examples of what is considered OP by stream classification (Upstream, Downstream and midstream), identification of each of the Operating Plant as written in the P&g legislation including a breakdown of which legislation (P&g or WHS) has authority over said authorised activity, and finishing off with a breakdown of the obligations of eSm, SSm and Operators under the P&g act. each appendix provides the legislative reference from which the information was sourced.

if you would like further support or training in this area please contact the SmRS team to discuss. The SmRS training program, Drilling Contactor Obligations Under the Petroleum and gas (Production and Safety) act 2004 Workshop, developed in consultation with industry experts and the DnRm, provides attendees with an in-depth understanding of:

The roles and responsibilities of Executive Safety Managers, Operators, Site Safety Managers and Supervisors when working a petroleum and gas lease,

The requirements of a Safety Management Plan (SMP),

Providing notice of new plant,

Incident notification and investigation,

Using relevant industry examples delivers a clear understanding of what is – and is not – OP, and

Where the WHS jurisdiction lies in consultation with the P&G Act.

if you would like more information on the interaction of the P&g and WHS acts, advice on your roles and responsibilities under the P&g act, or would like assistance with the development of your SmP, please contact the SmRS team to enrol in the next Drilling Contactor Obligations Under the Petroleum and gas (Production and Safety) act 2004 Workshop.

Source: guideline to what is Operating Plant under the Petroleum and gas (Production and Safety) act 2004 and interaction with the Work Health and Safety act 2011, February 2014, Department of natural Resources and mines.

13www.smrs.net.au edition 10 - 2014

Industry Category Description Act Ref

Petroleum and Gas Upstream

Petroleum wells

A well is a hole in the ground made or being made by drilling, boring or any other means to explore for or produce petroleum. Note: A well used to inject, store and subsequently retrieve petroleum into and from an underground reservoir are also considered to fall under this section. The “well” facility Is considered to include all equipment both: In ground (e.g. casing, producing tubing); and Above ground such as the well head and all associated equipment needed to produce

or inject to and from the well (e.g. separators, pumps, well head engines to drive pumps, flares, etc.)

Petroleum wells that are intended to be or are converted to a water observation or water injection bore continue to be operating plant (as an authorised activity) until the well no longer is used by the licence holder for purposes ancillary to the exploration or production of petroleum. I.e. the well has been handed over to a property owner for use.

S670(2)(a)

Drilling related activities

These include those facilities used for drilling, completing, servicing or maintaining a petroleum wells. This includes drill rigs and service rigs/cranes and all associated equipment at the drill pad (drill lease area) needed to drill or maintain equipment on the petroleum well and include completion, servicing, maintenance, alteration, plugging and abandoning. It would include facilities used for well stimulation (fraccing), cementing and other processes required for the well completion/operation.

S670(2)(a)

Processing plants including compressor stations

Processing plants include all petroleum facilities (oil, gas) including water separation plant, dehydration plant, compression plant and the flaring of petroleum. Examples include: Storage depots Oil refineries LPG separation plants Petroleum processing plants

S670(2)(e) S670(2)(b)

14edition 10 - 2014 www.smrs.net.au

Hydraulic Systems Basics by Greg Wilson

in understanding how hydraulic systems work, and how to get the most cost effective and reliable outcomes, we should

begin by considering the basics.

Why is the fluid so important?a fluid takes the shape of its container and

is forced to flow through pipework under pressure to act upon the surface of the actuator, in delivering the required outcome. in doing so, mineral oil has the added advantage of providing excellent lubrication to the hydraulic system components and can also absorb heat and flush away contaminates.

Hydraulic fluid in its most common form is derived from mineral oil. The selection of the correct oil for your hydraulic system is critical to performance, and consulting with the equipment manufacturer’s requirements for your location and operating conditions is recommended.

The correct viscosity of the oil is also important for obtaining maximum efficiency; thick and sticky is a high viscosity oil whereas thin and runny like water, is a low viscosity oil.

in Queensland due to warm climate conditions a 68 grade viscosity of hydraulic fluid is widely used, in cooler climates a 46 grade would be more commonly used due to ambient air temperatures.

Conditioning the hydraulic fluid so that it retains its desirable characteristics requires a considered approach. This can be achieved through hydraulic system components such as oil filters and oil coolers to stabilise the oil.

Be in control of your hydraulic systems’ performance!

The Oil FilterFiltering the oil to remove contaminates is

essential to provide a long life for the hydraulic system. Contaminates may come from various sources such as components wearing against each other causing more fragments to circulate resulting in further damage.

airborne contaminates can also enter the

hydraulic system through breathers located on top of the oil tank. The breather should contain filter media to trap and arrest the airborne contaminates (dust particles).

So how big does a particle of contamination have to be to cause wear and damage to hydraulic system components, and how do we measure particles of contamination?

many oil filter brands specify a ‘micron’ rating for the filter media used within the filter element. a micron is a measurement that is equal in size to 1 metre x 10 to the minus 6. That is a 1 millionth part of a metre. The smallest the human eye can see is approximately 40 micron.

With hydraulic systems using very expensive high pressure pumps and proportional control valves to regulate oil accurately, it is recommended the oil be filtered to 5 micron ‘absolute’.

This means there should be no particles bigger than 5 micron circulating with the oil in theory.

To achieve the desired 5 micron cleanliness of the oil the filter must be positioned in line to screen the entire oil flow leaving the pump constantly.

an inline high pressure filter connected after the pump outlet will filter the entire pump output providing that the filter element has the capacity to cope with the oil flow under variable conditions.

The filter element must also have sufficient capacity to allow the desired level of filtration over a sustained period without becoming clogged, and be fitted with a clogging indicator to reveal when a filter element change is required.

The Oil CoolerCooling of the oil is required in most

hydraulic systems that are constantly in use. This is achieved by the fluid that is being is driven through the hydraulic system passing through an oil cooler on its return path to the holding tank.

Heat is a result of the constant force on the

fluid required to drive the actuator, generating heat at the pump and control valves controlling the fluid. Unless the build-up of heat in the fluid is dissipated the fluid will expand and change its viscosity becoming thinner, making it less able to lubricate the components as effectively.

The oil storage tank (reservoir) is able to dissipate enough heat in some hydraulic applications, usually a rule of thumb is that the reservoir must hold 5 times the total pump(s) flow capacity, however this is not practical on mobile equipment.

an air cooled radiator with rotating fan is used in many mobile equipment applications to dissipate the heat build-up of the hydraulic system. The radiator style cooler is positioned in the system to cool the oil returning to the oil reservoir, this ensures pump inlet oil temperatures are regulated.

Oil reservoir mounted filtration is also used to clean the oil returning to the tank thus ensuring the fluid is cooled and clean before entering the hydraulic circuit again.

When replenishing the oil in the system use an inline filter on your transfer pump to keep it clean. Whilst a lot of attention is focused on pump performance in hydraulic systems, let me assure you the hydraulic system is only as good as the fluid within it!

Further information is available by contacting:

Greg WilsonActfix Hydraulics Pty Ltd‘Engineered Solutions for Industry‘Email: gregoryroywilson@gmail.comPh: 0419 742 264

15www.smrs.net.au edition 10 - 2014

When people discover problems, the most frequent response is to rush to find a solution. Finding an immediate

fix for the problem is very satisfying no matter how many times this process occurs. Unfortunately, it is usually not the best way to solve a problem, as it leads to the need to solve the same problem over and over again. a better approach is to eliminate the root cause.

The Six Sigma DmaiC (Define, measure, analyse, improve, Control) methodology provides an effective way to accomplish this goal:Define and Measure the Problem - What does the company want to prevent from recurring? When and where did it occur? What is the significance of the problem? The first step in the process is to define the problem. This can be achieved by identifying the expectations of the Company and Senior management against what they are receiving. Closing the gap between expectation and the reality of the process defines the problem. Analyse Cause-and-Effect Relationships - Once the problem is defined, it is important to uncover the root causes of the problem and to understand how they interact with one another. Collect a sample of data related to the problem and conduct a root cause analysis to identify the reasons why the problem exists. This analysis will form the basis for determining solutions that will prevent any recurrence of the causes, and ultimately, the problem.Implement and Control the Best Solutions - identify solutions based on the results of the root cause analysis and perform a cost/benefit analysis. Solutions are specific actions that control root causes of the problem. implementing the right solutions and controlling or monitoring the results will keep the problem from happening again. The best solutions are those that prevent problems from recurring, are controllable and meet the needs of the Company.DMAIC Problem Solving

One of the most important steps in the DmaiC process is the root cause analysis. This is where the real cause of the problem is uncovered. many problem-solving processes applied without the benefit of this or other

similar methodologies result in managing a symptom of the problem rather than eliminating the root cause of the problem. The root cause is one that, if corrected, would prevent a recurrence of the problem. There may be a series of causes that are identified, one leading to another, or more than one cause that combine to create the problem.DMAIC Process Noting the Importance of Finding Root Causes

Problem Solving is Just Common Sense?alexander Dunn, director of assetivity

Properties Ltd., in a paper posted on the maintenance World website, quotes a study which showed, “…that, when trying to prevent unacceptable events from happening again, 10 percent of participants immediately sought to place blame, 26 percent immediately expressed an opinion of the causes and offered an opinion without investigating the problem, and only 20 percent of participants examined the problem in sufficient detail to be able to identify an effective solution.” From these statistics, it’s clear that effective problem-solving is far from common sense.

indeed, “Research has repeatedly proven that unwanted situations within organisations are about 95 percent related to process problems and only 5 percent related to personnel problems. Yet, most organisations spend far more time looking for culprits than causes and because of this misdirected effort, seldom really gain the benefit they could gain from understanding the foundation of the unwanted situation,” according to gene Bellinger, who writes on the web site Systems-Thinking.org.

Mouse example

as a simple example, picture a large block of good Swiss cheese on a kitchen table a

few feet away from an open screen door. The weather outside is warm. a man comes to the table for some wine and cheese and sees a mouse in the cheese. Problem: There is a mouse in the cheese.Solution: Throw out the cheese with the mouse and put a new block of cheese on the table.

That is not the way to prevent a recurrence.

To conduct a root cause analysis of this situation, follow the DmaiC or similar approach.

notice that solutions such as, “Be sure to close screen door,” or “Put a note on door asking, ‘Did you latch me?’” are not good solutions. They might work but they will not prevent the problem from recurring. a spring latch is a sure solution.Determine the Root Cause: 5 Whys

asking “Why?” may be a favorite technique of children in driving you crazy, but it could teach you a valuable quality lesson. The 5 Whys is a technique used in the analyse phase of the DmaiC (Define, measure, analyse, improve, Control) methodology. it is a great tool that does not involve data

Got a Problem? Try Asking Why

By Sharyn McCulloch

Identify Gap between

Company Expectations & the reality of the process

Define and Measure the Gap

Perform Cause/Effect Analysis to Identify

Root Causes Verify Root Cause with

Data Determine Solutions to

Prevent Recurrence

Implement Solution Control and Monitor the Improved Process

16 www.smrs.net.auedition 10 - 2014

T’was a quiet Saturday arvo, with nothin much to do, watching footy slightly wounded, from last nights one or two.

More like bloody forty, and so the missus got the shits, for me getting home at three am and scaring Mum to bits

By spewin’ in the driveway and wakin’ up the dogs, then jumpin in the swimming pool, but without me swimmin togs!

So she’s gone round to the sisters to have bitch and moan, about how her lousy, drunken husband, left her home alone.

Then suddenly the phone rings and Bushy’s on the line, “D’ya wanna come on over mate, I can put the barbie on, you just grab the beer ‘n wine?”

So I sms’d the missus, cos I had to ask her too, if she’d like to have a barbie, with

Bushy and the crew.Of course I thought I’d get a knock back,

just like the night before, when I asked her for a quickie after stumbling through the door.

But she had to have the final say, with her icy little text “Yeah, and I’ll be bloody watching you, you pair of drunken wrecks”

So I loaded up the esky with heaps of

Bushy’s BBQ

segmentation, hypothesis testing, regression or other advanced statistical tools, and in many cases can be completed without a data collection plan.

By repeatedly asking the question “Why” (five is a good rule of thumb), you can peel away the layers of symptoms which can lead to the root cause of a problem. Very often the perceived reason for a problem will lead you to another question. although this technique is called “5 Whys,” you may find that you will need to ask the question fewer or more times than five before you find the issue related to a problem.Benefits of the 5 Whys• Help identify the root cause of a problem.• Determine the relationship between different root causes of a problem.• One of the simplest tools; easy to complete without statistical analysis.When Is 5 Whys Most Useful?• When problems involve human factors or interactions.• In day-to-day business life; can be used within or without a Six Sigma project.How to Complete the 5 Whys1. Write down the specific problem. Writing the issue helps you formalise the problem and describe it completely. it also helps a team focus on the same problem.2. ask Why the problem happens and write the answer down below the problem.3. if the answer you just provided doesn’t identify the root cause of the problem that you wrote down in Step 1, ask Why again and write that answer down.

4. Loop back to step 3 until the team is in agreement that the problem’s root cause is identified. again, this may take fewer or more times than five Whys.5 Whys ExamplesProblem Statement: Customers are unhappy because they are being shipped products that don’t meet their specifications.1. Why are customers being shipped bad products?- Because manufacturing built the products to a specification that is different from what the customer and the sales person agreed to.2. Why did manufacturing build the products to a different specification than that of sales?- Because the sales person expedites work on the shop floor by calling the head of manufacturing directly to begin work. An error happened when the specifications were being communicated or written down.3. Why does the sales person call the head of manufacturing directly to start work instead of following the procedure established in the company?- Because the “start work” form requires the sales director’s approval before work can begin and slows the manufacturing process (or stops it when the director is out of the office).4. Why does the form contain an approval for the sales director?- Because the sales director needs to be continually updated on sales for discussions with the CEO.in this case only four Whys were required to find out that a non-value added signature

authority is helping to cause a process breakdown.Let’s take a look at a slightly more interesting example of using the 5 Whys.Problem Statement: You are entertaining your friends at home, when suddenly they up and leave.1. Why did your mates go home?- Because I ran out of beer.2. Why did you run out of beer?- Because I didn’t buy any beer on my way home from work.3. Why didn’t you buy any beer on your way home?- Because I didn’t have any money.4. Why didn’t you have any money?- Because i lost it all last night on the horses.5. Why did you lose your money on the horses last night?- Because I know absolutely nothing about betting on horses!

as you can see, in both examples the final Why leads the team to a statement (root cause) that the team can take action upon.

Quotation“if you don’t ask the right questions, you

don’t get the right answers. a question asked in the right way often points to its own answer. asking questions is the aBC of diagnosis. Only the inquiring mind solves problems.” – edward Hodnett

By Mick Pedlow

17www.smrs.net.au edition 10- 2014

grog and ice, then rustled up some garlic bread, laced with herbs and spice.

See I thought I’d please the missus and try and make her smile, and I hoped she’d have a real good night and be happy for a while.

Then she breezed in through the door, looking really cute, and even acted nice to me which left me standing mute.

So we loaded up the car and chucked the esky in the boot, and me thinking to meself, a bbq and heaps of piss, you bloody little beaut!

By the time we got to Bushy’s, it was only half past two, so me and him went out the back, muttering to the girls that there was something left to do.

Well that of course was swigging beer and talking heaps of shite, a sort of warm up session for drinking piss all night.

So as the sun was setting, we finally made a move, to get the women off their ass and organise some food.

Then Bushy casually mentioned that I should cook the meat, while he’d go inside and help a bit to keep his missus sweet.

So I opened up his barbecue and what a gruesome sight, though fair to say was hard to see without an outdoor light.

The grill was old and rusted and the gas pipes bent and busted, and Christ knows what was in the sump, but it was pretty thickly crusted.

So I fired up the old girl from a good three foot away, I just threw a flaming match in and then began to pray.

Well there was silence for a moment, then came a sudden roar, like a raging force ten cyclone, comin’ through ya door.

So I fiddled with the reg to try and stop the clamor, and finely tuned the burners with this bloody great big hammer.

But despite me careful tinkering, the best that I could get, it was like an after burner on a US air-force jet.

Then Bushy brought the meat out, with a beer I claimed as mine, and he said “I’ll leave ya to it mate, looks like she’s going fine”

Going fine me stinkin arse, I muttered out there on the porch, you’d be better off to try and cook with a blazing oxy torch!

The steaks were done up marinated and finely wrapped in foil, and I remembered Bushy saying “Don’t let those bastards spoil,

And don’t you overcook them, that’s fillet all that meat, cook them till they’re just done rare and they’ll come up a treat”

So I carefully laid them out, on the remnants of that grill, then went back to the esky and grabbed another can of swill.

But it wasn’t all that easy to control that

barbie’s fire, it was like the depths of Hades or a raging funeral pyre.

Well things were going pretty well, at least they seemed to be, so I grabbed meself another beer and found a place to pee.

Then I sat out there a while and turned the meat just once or twice, while inside the girls were knocking up the salad and the rice.

Then Bushy finally hollered out “Is that tucker ready yet, I’ve been slaving in the kitchen, and working up a sweat,

While you’ve been out there drinking piss and sitting on yer arse, I’ve even opened up the red, and I never had a glass!”

So carefully I took the meat, away from that fiery hell, and though it looked a little charred, still had a lovely smell.

But when we peeled the foil back, all hell broke loose that night, for instead of being juicy rare, it was over-cooked a mite.

And although it still resembled, a piece of chargrilled meat, it was nothing quite like Bushy, had imagined he would eat.

He stared at it a moment, and his face turned scarlet red, and then he started raving, like a banshee off it’s head.

“One simple little job was all you had to do, but you’ve gone and and stuffed the barbie up, and it’s enough to make me spew!

That lovely meat was all top shelf, the best a man could buy, and you ya clown cremated it, it’s enough to make me cry!”

Of all the useless blokes I’ve met, you take the friggin’ cake! Why you couldn’t even cook me up a decent bit of steak!

On and on he wailed and moaned, till I thought that he was done, but he downed another can of beer and then he gave it some.

About how its quite a simple task, to cook a steak just rare, but you, ya dropkick moron, you wrecked it fair and square!

So I listened to him rant and rave till I’d had about enough, “Now listen here old son, I know it isn’t perfect, and it might be kinda tough

But there’s other people out there who’d die for meat like that, why in fact I bet there’s some folk, right now eating sate rat!”

And Bushy he just glared at me and I told the girls to shoo, cos I could see right then and there, that there was gonna be a blue.

Then Bushy lunged across the lounge with murder in his eye, and thought I’m surely done for, the end is surely nigh!

Well he hit me like a ton of bricks, drove me clean across the floor, and now he’s got a doorway where he didn’t have before.

Came bursting out the other side, spitting teeth and bits of dirt, then Bushy swung a

murderous right that really had some hurt.Well I went flying in the air, but when I hit

the ground, it felt like I’d been shot down with an anti-aircraft round!

But before ole Bush could get me, I sprung back on me feet, and smacked him fair across the head with a lump of iron sheet.

But it didn’t seem to faze him, he just took it in his stride, ripped off a verandah rail and took a swing a mile wide.

Well the force of it was taken by the neighbours massive palms, I just heard this sickening crunch, like he’d broken both his arms.

But he wasn’t nearly done yet, not even really sore, as he sucked a couple of big ones in, and then came back for more.

Came roaring in towards me, like a gut shot grizzly bear, with a noise just like a chopper, as his fists flailed through the air.

And the women on the balcony, just sadly shook their head, wondering what the hell they’d seen in those wankers that they’d wed.

Then they nodded to each other and slowly walked inside, and thinking how they’d tell their mothers just how those bastards died.

And that fight it just got worse and worse and reached a whole new height, as the neighbor’s bolted shut the doors and locked up for the night.

And later on the cops were called, and then the riot squad, but no way they were going in, not for any man or God

‘Cos Bush had up a head of steam, and he wouldn’t waste a bit, as me and him fought on and on, caked in blood and shit.

It was like an old time battle zone, but without the tanks and guns, like back in World War One and Two, the Poms against the Huns.

Till peace it finally fell that night, on one that all would tell, to their children and their kinfolk, that they thought they’d lived through hell.

And the morning light at last revealed, a sight you’ve never seen, not a plant or tree was standing, where the garden had once been.

And me n Bushy at the Esky, both with beer in hand, talking ‘bout the night before, and wasn’t it just grand!

What a ripper barbecue, with food and piss all night, and just to top the whole show off, a fullblown knockout fight!

And me parting to word’s to Bushy, as the missus dragged me out, “Just let me know ‘bout next weekend and I’ll see if I’m about!”

18 www.smrs.net.auedition 10 - 2014

Hi folks, my name is not important but everyone knows me as Shorty. i won’t bore you with my life story but after

living on my boat at Hope island marina for a few years and having a few health issues i decided to pack up and join a mate of mine, Bob Lane, on a pub crawl of the aussie outback! We’ll be on the road for the next couple of years trying to find the quirky little bush pubs that tourists don’t normally get to see. We’ve called our journey “Shorty and Bob’s great australian Pub Crawl”.

my journey began on Jan 11th 2014 when i flew from Brisbane to Darwin in australia’s top end. i was picked up by Bob in his luxurious motor home in Darwin and so the journey begins.

First port of call was adelaide River, about an hour and half south of Darwin on the Stuart Highway. We struck gold right off the boat. most of you would remember the movie “Crocodile Dundee”. The buffalo from the movie passed away, he was taken to the taxidermists with the plan of mounting him in the main bar. Unfortunately his legs were too long so they were shortened by 30cm and now he stands proudly in the main bar. The locals all have their own version of the story and it seems every one of them was an extra in the movie. if so, it has a bigger cast

than “Ben Hur”. We stayed there for a few days enjoying a few coldies in their fantastic tropical beer garden. We thought we’d put the tinny in the river for a bit of a fish but the local reptile population put a damper on that. i’m not going to be a crocs next meal.

We set up camp at the adelaide River Racecourse where we found another little pearler of a bar called “The aRSS Club” (adelaide River Show Society). it’s just an open tin shed where the local station hands and miners come to unwind. What a bunch of characters!! You’d think the world was going to end the way they knocked back the grog. never seen so many people get so pissed in such a short time. Believe it or not, the food was awesome. Fresh barramundi and chips with salad… $7.50!!! What a bargain!!

Our next stop was to what is an aussie icon as far as bush pubs go. The world famous “Humpty Doo Hotel”. The pub is owned by Rod Parry, a mate’s uncle, so we were invited to park our bus out the back. This pub goes off!! Live music every Friday, Saturday and Sunday. it fills up with pig hunters and station hands and they get wild!! every second 4x4 has a cage on the back with some savage looking pit bulls in them. These guys take their pig hunting seriously as the dogs have Kevlar breast plates to protect them from

the nasty tusks of the giant razorback pigs. They also have gPS tracking devices as well. Serious dollars!!

Sitting back listening to a local band knocking out some Jimmy Barnes classics, Bob and i indulged in a few ales whilst munching on some local cuisine… crocodile and buffalo burgers! We had a chopper land in the paddock where we were, so indulged ourselves in a quick fly around the area. Loving every minute of this adventure!!

We also managed to get bogged out in never never land, but one call to Rod at the pub and he offered to rescue us. We were half an hour from the pub but it took him 4 hours to turn up, i asked him why and his reply was “nothing interrupts my drinking time”. needless to say us city slickers were the laughing stock of the pub, plus we had to shout the bar!! Would have been cheaper to call a tow truck FmL!!!!!!

after about a week at Humpty Doo it was time to hit the road again. We headed south to find a pub called the grove Hill that was recommended by a Humpty local. apparently it about 30kms down a dirt track off the Stuart Highway sitting beside the ghan railway line. Words cannot describe what we found!! The whole place looked like a mad max movie set, or if you’ve seen

Shorty and Bob’s Great Australian Pub

Adelaide river pubHome of the Dundee Buffalo

Daly Waters Pub

19www.smrs.net.au edition 10 - 2014

Shorty and Bob’s Great Australian Pub

the aussie movie Wolf Creek this reminds me of that, pretty scary actually. everything was just slapped together from old recycled corrugated iron sheets. The main bar was filled with pre-WWii artifacts and the grounds were littered with old farm machinery and wrecked cars. We managed to get bogged but this time in the bus. after a lot of digging and swearing we finally got free but again we were obliged to shout the bar for the local’s help!!

a grizzled old codger by the name of Stan owned this ram shackled old bush pub and when i asked him why in hell did he buy it, without missing a beat his reply was “i always wanted to own a pub and this was the only one i could afford!!” at least he’s honest. again, the only other people there were some professional pig shooters and itinerant mine workers. The facilities were archaic as you would expect but it had showers and a flushing toilet in a tin shed out back. no thunderbox or long drop dunny for this little gem!!

We stayed in grove Hill for about a week which was certainly a great experience. Once again it was time to move on.

We headed back down the dirt track towards the Stuart Highway to drive to a pub called “The Daly Waters Pub”. Bob had been

to this pub before and highly recommended it. it lays 5kms off the Highway down a dirt track. Words cannot describe what i found at this place. it has australia’s most remote set of traffic lights and a huge camping ground to accommodate our 19m behemoth camper.

Soon as you walk into the main bar you realise why the Daly Waters is so popular with tourists. The whole bar is crammed with mementos left behind by weary travellers. There is everything from bras, undies, drivers licences, etc. pinned over the whole bar. This pub has a lot of history that not many people, including me had any idea about. There is a 10,000ft runway at an abandoned airstrip that happens to be australia’s first international airport. True story. Up until the 1970’s Boeing 707’s and DC 10’s were traveling to and from all points in australia and overseas.

We had such a good time here we ended up staying for over a week! There are lots of historic places to be seen including the combined Post Office, Police Station and gaol. Two of the locals, an author and artist who goes by the name of Big Kev and his wife Lady J took us out bush to a secret waterfall that tourists don’t even know about. it was quite a good little hideaway.

The food at the pub was exceptional (a

little pricey) but you have to expect that. We were the only campers but i’m told during the dry season there are thousands that arrive for the B&S Ball which is held around easter.

after a week at the Daly it was time to move on. So it was back to the Highway and keep heading towards alice Springs. The next pub was The Three Ways Roadhouse where we only refuelled but still a bit of history with a remembrance wall for all the truckers that lost their lives driving roads trains and trucks. That night we free camped at a place called Bonney Well. no pub but awesome outback scenery.

Our next stop was a roadhouse pub called Wycliffe Well. Strange place. it claims to be the UFO capital of australia. Like i said, weird. moving on, our next port of call was The aileron Pub. at $36 a six pack we decided not to hang around too long here but aside from the prices it was a pleasant little pub. We kept heading towards alice and camped at Blatherskite Park (show grounds). Heading west for the day we visited Simpsons gap, Standley Chasm and ellery Creek which were well worth the detour.

arriving at another little hideaway we popped into the glen Helen Resort nestled on the Finke River. Very quaint little pub

the Grove Hill

the Grove Hill

20 www.smrs.net.auedition 10 - 2014

where we indulged in a camel burger for lunch. Yummo!! Wish i could get camel meat more readily available, very tasty. after a week or so in alice it was time to find another pub. Heading down the Stuart Highway we hung a right on Lasseter Highway and headed towards ayers Rock. 150kms up the road we came across the mt ebenezer Roadhouse. Desert, dust, dirt and flies but just the sort of place we like. The manager, Kev and his wife Louise were very friendly and accommodating. This place closed down 2 years ago due to bad management but re-opened 4 months ago after some extensive renovations. it was very dry and foreboding out here and just behind the pub is a burial ground for some of the local indigenous population. Doing the right thing, i asked permission from one of the tribal elders before taking any pics.

after staying three days it was time to move on. With plans of heading to Yulara we got a surprise when we found another little gem, The Curtis Springs Wayside inn. This one rates way up the top of our list. it’s an oasis in the middle of nowhere. Owned for over 50 years by Peter Severin, it’s a 1 million acre cattle station that Peter purchased for 36,000 pounds ($72,000). mt Connor dwarfs the surrounding country side, including ayers Rock. it’s 29kms around the base (ayers Rock is only 7kms).

The pub gardens and stone work were all built by Peter. He’s been keeping us amused every afternoon with his witty tales and dry sense of humour. With a local dingo and emu roaming around you know you’re in the outback. We might stay a week here and head down to the Rock for a day trip.

Pulling up at mataranka for supplies i visited the local pub. i was the only white guy there but the local crowd were a great bunch. after a couple of ales i asked them for a picture. no worries bro!!

Curtin Springs Wayside inn is a definite place to stop on your way to ayers Rock. They offer free camping and van sites (unpowered) or powered sites at $25 per night which is very good value out here. Showers and toilets are available for a small gold coin donation. aside from Pete the owner, there’s a couple of Pommie larakins working behind the bar. Jimmy, who has only worked here for a week and Jason, a real crack up who can’t tell a joke to save his life, even though he tries very hard. On the more visually stimulating side there’s the gorgeous Franzi, always smiling and ready to serve an icy cold one. We also have the lovely Kristin from germany who is the admin officer. Without her i think Pete would be lost.

Well folks, that’s the end of the first instalment of our sojourn into the great

aussie Outback!! We’re heading out of ayers Rock due west on The gunbarrel Highway cutting right across Western australia to the indian Ocean. it’s a dirt road all the way and no towns to speak of, aside from the indigenous settlements which we need permits to pass through. There won’t be any phone signal for a while so until you hear from us again, take care and enjoy life!!

Shorty & Bob.

Stay tunes to Shorty & Bob’s great australian Pub Crawl for the next instalment. Look us up on Facebook (Shorty Thomson) – i’m the one standing near the waterfall. Send a friend request and follow our journey.

Shorty

cont.the

Stan

Peter Severin.

oh no Shorty!.

Wycliffe Well.

the Dog.

21www.smrs.net.au edition 10 - 2014

Central Queensland Project Contracting (CQPC) was produced from a conversation that took place

approximately 18 months ago between a Wiri elder, mr graham Sauney and northern Project Contracting (nPC). graham expressed his dream was to connect with an established indigenous company with commercial experience to assist him create a unity between the Wiri community and all indigenous people in the Bowen Basin region and to provide an economic opportunity in a commercial project to bring wealth, employment opportunities and self-empowerment to all people.

nPC currently work to a partnership model and could support graham in his vision for success and his belief in “Let’s Walk Together” which is now CQPC’s company motto.

this is our journey. The Wiri and Waanyi peoples have forged

a close relationship that extends beyond their indigenous heritage to successfully participate in the world of business, serving major mining companies in the Bowen Basin region of Central Queensland.

CQPC is a partnership between one of australia’s most progressive aboriginal community companies, the Waanyi owned nPC and Bowen Basin Services (BBS), a Wiri community company established to invest and manage commercial opportunities on behalf of Wiri community.

Learning from the experiences of nPC which has successfully operated since 2003, CQPC aims to be a leader in the civil and mining industry in the Bowen Basin region and provide a platform for future growth and employment for the local community.

CQPC provides contract services to the mining and civil construction industry, while offering local indigenous communities

the opportunity to take part in sustainable business generation activities on traditional lands.

CQPC are breaking new ground in finding ways to deliver advantages from mining and civil contracts to the broader community and achievement of community and social goals.

The joint venture with nPC provides CQPC with strong governance and management structures, together with integration of proven management systems and project experience to deliver services.

CQPC has recently been awarded a significant drilling contract with Bma through a competitive tendering process. This is a major milestone for both aboriginal communities as it provides the opportunity to get started towards the company’s vision.

CQPC are grateful and acknowledge Bma for their foresight in providing an innovative pathway for the businesses to engage in opportunities within Bma. Such foresight will contribute to our communities gaining financial independence and enable ‘closing the gap’ initiatives to be developed and implemented.

The drilling contract is due to commence in mid-may and CQPC have spent the past months ensuring their systems, equipment and rigs are customised to meet the needs of Bma, including comprehensive training of local indigenous people in drilling operations.

The CQPC structure enables the training of multiple offsiders and provides a career pathway to become qualified drillers and supervisors. The training has enabled participation in a new industry for local people. it will provide a significant boost to the livelihoods of many people which will only grow as CQPC builds its business.

Some of the challenges faced by the green offsiders with little or no drilling experience were:

- Understanding legislation and language- Learning rig functions and capabilities- Understanding an offsider’s role and responsibilities- Learning about different drilling methods- Balancing home / life and work schedules- Understanding Bma / CQPC requirements and rules

The training provided the green offsiders with several realisations. They now know that the drilling industry can be a hazardous line of work and you must work together as a team, always communicate, obey and respect rules and regulations, and always think about safety first. The offsiders have gained knowledge, confidence and a career path in an industry they knew little about.

CQPC is a great example of indigenous communities helping themselves to address one the most pressing social challenges in australia, the economic disadvantage faced by indigenous australians.Contact:Brad Jackson, Managing DirectorNorthern Project Contracting Pty Ltd10/193 North Quay, Brisbane Qld 4000Tel: 61 7 3129 6777www.northernprojectcontracting.com.au

Central QueenslandPROJECT CONTRACTING

CQPC Rig 1, Schramm 685

Back left to right: Lizzy Dodd (BDO), Luke Milgate, Brad Jackson (CEO), Liam Blyth, Ryan Blyth, Zachary Seden and Reece Harrington, Glenn EvansFront left to right: Charles Page, Jamal Walker

calendar of events

22 www.smrs.net.auedition 10 - 2014

national manufacturing Week (nmW) offers an opportunity for suppliers of manufacturing technology equipment, technology and services to showcase their innovative and internationally leading products to the australia’s manufacturing industry. nmW 2014 in Sydney will feature a range of dedicated product zones and an extensive parallel programme of education and networking events, creating an ideal environment for buyers and sellers to interact.For more information, visit http://www.nationalmanufacturingweek.com.au/

Broncos Leagues Club, Red Hill, Brisbane

Providing participants with an understanding of the pivotal roles and responsibilities of management and workers under the QLD P&g act 2004, with an emphasis on the development of Safety management Plans, statutory reporting, and the management of safety requirements.For more information, visit: www.smrs.net.au

Ascot Racecourse, Perth, WA

at Cme 2014, attendees can see and compare the latest equipment and explore the newest products and innovations in the industry. The broad spectrum of equipment available is the ultimate in competitive comparisons. Cme places a strong focus on training, apprenticeships and recruitment and invites industry experts in these fields to both exhibit and attend.For more information, visit http://www.cmeexpo.com.au//

9-11April 2014

Construction and Mining Expo

13-16May 2014

National Manufacturing Week

Sydney Showgrounds, Sydney Olympic Park

Drilling Contractor Obligations under the Petroleum and Gas (Production and Safety) Act 2004 Workshop

5June 2014

23www.smrs.net.au edition 10 - 2014

Ivy Ballroom, Sydney

The 2014 Women in industry awards are designed to recognise and reward the achievements of women working within the mining, engineering, manufacturing and process control industries, and aims to raise the profile of women within industry, as well as promote and encourage excellence.For more information, visit http://womeninindustry.com.au/

Brisbane, Queensland

The Life-of-mine 2014 Conference is the second international conference on integrative practices for planning, designing and operating mines that deliver long-term beneficial environmental and social legacies.For more information, visit http://www.lifeofmine2014.ausimm.com.au/.

National Drilling Conference. Gold Coast, Australia.

DRiLL 2014 is the australian Drilling industry association’s (aDia) flagship national conference; it is australia’s only drilling conference catering for the full range of onshore drilling sectors: groundwater, minerals exploration, geotechnical / environmental, HDD (Horizontal Directional Drilling) and CSg (Coal Seam gas).For more information, visit http://drillconference.org/.

25June 2014

16-18July 2014

19-22August 2014

DRILL 2014

Life-of-Mine

Women in Industry Awards

Drilling Contractor’s Obligations under the QLD Petroleum and Gas (Production and Safety) Act

2004 Workshop DATE

The next workshop will be:

Wed 14 May 2014

The Workshop commences at

8:30am.

PRICE

$695 + GST per attendee.

Includes:

Participant Training Manual;

Certificate of Completion;

Catering – morning and

afternoon tea, lunch, and

refreshments including tea,

coffee and juice; and

All stationery.

LOCATION

Workshops are held at the

Broncos Leagues Club in Red

Hill, Brisbane.

Ample on-site parking is

available, free of charge.

Wheelchair access and amenities

provided.

BOOKINGS

Call: 07 5514 8597 or 0404 039

081

Email: admin@smrs.net.au

Website: www.smrs.net.au

Attendees will receive a

Workshop Handbook and a

SMRS Certificate of Attendance.

Overview

The Drilling Contractor’s Obligations under the

QLD Petroleum and Gas (Production and

Safety) Act 2004 provides participants with an

understanding of the pivotal roles and

responsibilities under the QLD P&G Act 2004,

with an emphasis on the statutory reporting and

the management of safety requirements.

Topics covered include:

Roles and obligations for:

˗ Executive Safety Managers,

˗ Site Safety Managers, and

˗ Operators;

SafeOP Audit Tool;

Incident Reporting;

Statutory Reporting;

Auditing and Reporting;

Simultaneous Operations;

Safety Management Plans;

Risk and Hazard Management;

Skills, Training and Competency;

Overlapping tenure requirements;

Principal Hazard Management Plans;

Emergency Response Preparedness; and

Statutory Appointments and

Communication.

Duration: One Day Workshop (approx. 8

hours including breaks).

Understanding your responsibilities under the

QLD Petroleum and Gas (Production and

Safety) Act 2004.

Who Should Attend?

Suitable for Drilling Contractor Management:

˗ Executive Safety Manager;

˗ The Operator;

˗ Site Safety Managers; and

˗ Safety Advisors / Supervisors.

Learning Outcomes

Upon completion of this course participants will be

able to:

Understand key elements of the QLD

Petroleum and Gas (Production and Safety)

Act 2004;

Understand their roles and responsibilities,

and the duty of care they hold on a petroleum

and gas site;

Understand specific reporting requirements

under the Petroleum and Gas Act and

Regulations;

Understand the application of appropriate risk

assessment, incident investigation, and

hazard management techniques; and

Gain an understanding of what is required of

their business to effectively manage

petroleum and gas drilling contracts.

Preneted in

DATES:The next workshop will be run on 5 June 2014.