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2003 ANNUAL REPORT On Pipeline Licence 1 MOOMBA TO ADELAIDE PIPELINE Document Number S-1-101-AR-G-101 February 2004

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Page 1: 2003 ANNUAL REPORT - petroleum.sa.gov.au

2003 ANNUAL REPORT

On

Pipeline Licence 1 MOOMBA TO ADELAIDE PIPELINE

Document Number S-1-101-AR-G-101

February 2004

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TABLE OF CONTENTS

1.0 PURPOSE.........................................................................................................5

2.0 SCOPE..............................................................................................................5

3.0 PIPELINE INTEGRITY MANAGEMENT...........................................................6 3.1 Pipeline Inspections and Assessment .....................................................................................................6

3.1.1 Leakage Surveys & Detection ...........................................................................................................7 3.1.2 Pipe Wall Defect Assessment ............................................................................................................8

3.2 Stress Corrosion Cracking Investigations ..............................................................................................8 3.2.1 External Surfaces ...............................................................................................................................8

3.3 Verification of Intelligent Pig Features ..................................................................................................9 3.4 Coatings..................................................................................................................................................9 3.5 Pipeline Cathodic Protection ................................................................................................................10

3.5.1 Pipeline Potential Profiles................................................................................................................10 3.5.2 CP Repair Work...............................................................................................................................11

3.6 Electrical and Instrumentation..............................................................................................................11 3.6.1 Signage ............................................................................................................................................13 3.6.2 Pressure Control and Protective Equipment ....................................................................................13 3.6.3 Site Security.....................................................................................................................................13 3.6.4 Structures .........................................................................................................................................13

3.7 Communications...................................................................................................................................14 3.8 Mechanical ...........................................................................................................................................15 3.9 Ancillary Equipment ............................................................................................................................16 3.10 Results, Analysis and Remedial Action Taken ....................................................................................17

4 THREAT MITIGATION.......................................................................................17 4.1 Surveillance..........................................................................................................................................17 4.2 Maintenance Programs.........................................................................................................................18 4.3 Marking ................................................................................................................................................19 4.4 External Interference Prevention..........................................................................................................19

4.4.1 Pipeline Location Service ................................................................................................................19 4.4 Landholder Contacts. ...........................................................................................................................20 4.6 Community Awareness ........................................................................................................................21

5.0 MANAGEMENT ..............................................................................................22 5.1 Risk Assessments .................................................................................................................................22

5.1.2 AS2885 Risk Assessment ................................................................................................................23 5.1.3 Other ................................................................................................................................................24

5.2 Management Systems...........................................................................................................................25 5.2.1 Reports Generated in 2003 ..............................................................................................................25 5.2.2 2003 One-off Activities ...................................................................................................................26 5.2.3 2004 One-off Activities ...................................................................................................................27 5.2.4 Volume of Product Transported.......................................................................................................28 5.2.5 Statement of Expenditure.................................................................................................................28

5.3 Emergency Response ...........................................................................................................................28 5.3.1 Emergency Response Incidents. ......................................................................................................28 5.3.2 Emergency Response Exercises.......................................................................................................28

5.4 Incidents and Corrective/Preventative Action......................................................................................29 5.4.1 Incidents...........................................................................................................................................29

5.5 Reported Incidents ...............................................................................................................................30 5.5.1 Unauthorized Activity in the Easement ...........................................................................................30 5.5.2 Gas Releases ....................................................................................................................................30

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5.5.3 Oil Spills ..........................................................................................................................................30 5.5.4 Reportable Injuries...........................................................................................................................31 5.5.5 Vehicle Incidents .............................................................................................................................31

5.6 Audits ...................................................................................................................................................33 5.6.1 Operational Audits ...........................................................................................................................33 5.6.2 Environmental Audits ......................................................................................................................34 5.6.3 Safety Audits....................................................................................................................................35

5.7 Performance Measurement and Analysis of Results ............................................................................36 5.7.1 Maintenance Performance ...............................................................................................................36 5.7.2 Key Performance Indicators ............................................................................................................36

5.8 Review and Improvement ....................................................................................................................37 5.8.1 Compliance Issues ...........................................................................................................................37

6.0 CONCLUSIONS..............................................................................................39

7.0 ANNEX A - ASSESSMENT OF DECLARED OBJECTIVES ..........................40

8.0 ANNEX B - PIPELINE CATHODIC PROTECTION DATA AND ON/OFF POTENTIALS PROFILES.........................................................................................44

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LIST OF ABBREVIATIONS

AS2885 Australian Standard 2885 – Pipelines-Gas and Liquid Petroleum

CCVT Closed Cycle Vapour Turbine

CS Compressor Station

DOLA Department of Land Administration

EML External Metal Loss

EMS Environmental Management System

FBE Fusion Bonded Epoxy

GEA Gas Engine Alternator

HAZOP Hazard Operability

HSE Health, Safety and Environment

HV Hand Valve

KP Kilometre Point

LTI Lost Time Injury

MAP Moomba to Adelaide Pipeline

MAOP Maximum Allowable Operating Pressure

MFG Manufacturing Defect

MLV Mainline Valve

MPR Minerals and Petroleum Resources

MTI Medical Treatment Injury

PAV Polled Access Value

PII Pipeline Integrity International

PIRSA Primary Industry and Resources SA

PL Pipeline Licence

SA South Australia

SCADA Supervisory Control and Data Acquisition

SCC Stress Corrosion Cracking

SES State Emergency Service

SMS Safety Management System

TJ Terra Joule

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

The report reviews operations carried out during 2003 and intended operations for 2004 and 2005. In accordance with the Petroleum Regulations, a performance assessment is also provided with regard to the Statement of Environmental Objectives for the Moomba to Adelaide Pipeline.

2.0 SCOPE The Moomba to Adelaide Pipeline is 781km long and 559mm in diameter, constructed of welded steel, wrapped in a protective coating and is buried to depths in excess of 800 mm. There are seven gas turbine driven compressor stations located about 100 kms apart and mainline valves are installed approximately every 32kms. After-coolers are provided at the compressor stations to reduce the risk of stress fracture or over-temperature of the pipeline coating. The pipeline was designed for the express purpose of transporting Natural Gas and operates at a Maximum Operating Pressure of 7.3MPa. The MAP has been progressively upgraded to boost capacity and increase security of gas supplies. This includes a 43km loop line of 510mm diameter between Wasleys the Torrens Island Power Station, where pressure limiting is installed to protect the mainline. In 1998, the MAP Compressor Stations underwent a major upgrade of their compression equipment. This included the replacement of the Solar Centaur packages at stations 1, 2, 3, 5 & 6 with Solar Taurus units and the upgrade of 3 of the Ingersol Rand packages from a horsepower capacity of 4,250 to 5,400. This raised the Indicative Daily Winter Capacity of the pipeline from 353 Tj/Day to 393 Tj/day. At the same time, the station control system was upgraded from an antiquated electro– mechanical system to an Allen Bradley PLC. The pipeline was further enhanced in 2000 by the construction of 34kms of 24’ loops south of stations 1, 2, 3 & 4 and the remaining 4 Ingersol Rand packages being upgraded to the higher horsepower specifications. This further raised the Indicative Daily Winter Capacity of the pipeline from 393 Tj/Day to 418 Tj/day.

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The design parameters for the Moomba to Adelaide Pipeline are as follows:

Date Constructed 1967/68 Date Commissioned 1969 Length, km 781 Diameter (OD), mm 559

Wall Thickness, mm: - Normal 7.92 - Special Crossings (eg:

rivers, roads, railways) 9.50

- MLV’s 9.50 Pipe Grade API 5L X52

MAOP, kPa 7,300 Coating Plicoflex Tape Main Line Valves 34 Actuators 16 Compressor Stations 7 Meter Stations 28

The design parameters for the Wasleys Loopline are as follows:

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

rivers, roads, railways) 9.00

- MLV’s 9.00 Pipe Grade API 5L X60

MAOP, kPa 7,322 Coating Fusion Bonded Epoxy Main Line Valves 6 Actuators 5 Scraper Stations 0 Meter Stations

6

3.0 PIPELINE INTEGRITY MANAGEMENT

3.1 Pipeline Inspections and Assessment Visual inspections of all above ground facilities carried out during the scheduled monthly patrols with no significant pipeline corrosion issues found. Following the assessment of the 2003 DCVG survey results, a program to excavate several sites on the Wasleys Loop Line, Taperoo Lateral and Dry Creek Lateral have been scheduled for early 2004.

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Analysis of the 2002 DCVG survey highlighted a number of sites that would require additional inspection and testing to be carried out. A number of sites on the Port Pirie Lateral, Peterborough Lateral, Burra Lateral and the Whyalla Lateral were excavated and exposed for inspection. Sites are detailed in section 3.2

A section of pipework was exposed at MLV28 for other maintenance activities and coating inspections and NDT were carried out as part of the process.

In all case the pipeline protective coating was found to be in good condition. NDT was carried out at all locations and the pipe was found to be in a satisfactory condition. In addition to the DCVG work, excavations have been carried out at a number of other sites where third party crossings (namely the SeaGas pipeline and the SA Water sewer line at Bolivar) were required. The pipeline protective coating was inspected at all of these excavation sites and found to be in good condition. During the Intelligent pigging operations carried out in 2002 and completed in 2003, an obstruction in the pipeline was detected downstream of MLV28. The defect was confirmed as a pipe dent on the edge of a hot tapped section of the pipeline which was subsequently repaired. Intelligent pigging operations on the Moomba to Adelaide were completed in November. All data collected has been confirmed as adequate for the contractor to supply a final report. Further information is listed at Intelligent Pigging section 3.3. A program of testing and inspecting all of the Moomba to Adelaide pipeline facilities pressure vessels was completed during 2003. A report detailing the results of the pressure vessel inspections has been forwarded on to Epic Energy’s Engineering consultants (Worley Engineering), who are currently in the process of analysing the data and formulating an action plan to correct any identified deficiencies and remedial tasks will be planned into Epic Energy’s maintenance staffs work load for 2004.

3.1.1 Leakage Surveys & Detection

Epic Energy employs a number of methods of monitoring the pipeline system for leakage as follows;

• The Moomba to Adelaide pipeline operations group employ a computer model of the pipeline system that continuously monitors the gas balance providing a real-time leak detection capability, allowing the control staff to instantly identify any anomalies that may be occurring and notify maintenance staff who carry out onsite investigations. The control centre staff can if required operate the pipeline system “Mainline Break” facility isolating sections of the pipeline to minimize any leakage should the need arise.

• The Epic Energy technical services group routinely monitor the gas balance to ensure that all gas into the pipeline equals the quantities of gas out, taking into account usage in the transportation process. If the balance does not meet laid down criteria, an investigation is carried out to identify the source of the in-balance and possible leakage.

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• As part of Epic Energy’s routine maintenance program, monthly

pipeline facility inspections are conducted that incorporate manual leak detection by employee’s on all of the above ground facilities.

• In addition to the facility inspections, routine pipeline patrols are carried out during which the maintenance staff looks for tell tale signs that may indicate a leak along the pipeline. Telltale signs of a gas leak may be dust blown up from escaping gas, dead or dying vegetation, holes formed by escaping gas, bubbles in the water at underwater crossings, noise etc.

3.1.2 Pipe Wall Defect Assessment

The results for several sections of the Moomba to Adelaide Intelligent Pigging operation carried out in 2002/2003, have now been analysed and a program of inspection is in place to have all defects that failed the Epic Energy three tier defect assessment criteria verified. Refer to section 3.3 as listed below. The final data for all sections on the pipeline are due in February 2004. This data will be analysed, defects prioritized and an action plan will be developed to excavate and repair the pipe wall metal defects.

3.2 Stress Corrosion Cracking Investigations

No specific stress corrosion cracking investigations were undertaken in the reporting period, however a program to investigate possible locations of stress corrosion cracking on the pipeline system downstream of compressor stations has been initiated to commence in 2004. Random MPI inspections for the detection of SCC were completed on the DCVG defects detected on the Port Pirie, Peterborough, Burra and Whyalla Laterals. The location of each excavation is as follows;

• Burra Lateral at 7.853 Kilometres %IR Drop 22 • Peterborough lateral 0.599 Kilometres %IR Drop 22 • Whyalla Lateral 0.009 (anchor block) %IR Drop 58 • Whyalla Lateral MLV 41.2 Kilometres %IR Drop 56 • Whyalla Lateral 70.955 Kilometres %IR Drop 44 • Port Pirie Lateral 52.424 Kilometres %IR Drop 46 • Port Pirie lateral 72.798 Kilometres %IR Drop 46 • Port Bonython lateral 4.625 Kilometres %IR Drop 14

Most of the cases show detachment of coating from the pipe due to ageing. In a couple of cases, like Whyalla, the valve supports were exposed due to painting deterioration. In all cases, we had corrosion but not SCC and the pipeline needed coating repair only.

3.2.1 External Surfaces Whyalla, Burra, Torrens Island, Taperoo and Virginia meter stations underwent a re-coat of all above ground facilities in 2003. This task consisted of blasting all station pipework and ensuring new coatings were applied to manufacturer’s specifications. The coating system applied consisted of a three coat, two pack epoxy paint system.

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3.3 Verification of Intelligent Pig Features The final data for sections for several sections of the Rosen Intelligent PIG data were analysed according to Epic Energy’s three-tier defect assessment policy. The following table denotes the defects not passing the RSTRENG criteria and therefore these defects will be assessed by excavating each one for verification in 2004. Further analysis will be carried out using the same criteria when the final reports for the last three sections of pipework are received to determine any additional immediate repair work. When all immediate priority defects are identified, a further analysis of the data will determine the total number of defects to be addressed in order of priority. LIST of defects NOT passing RSTRENG from reports received to end of 2003

Defect # on

RSTRENG List

Weld log,

distance m

Log distance

m

O’Clock position

Type Max Depth

Ave. Depth,

%

ERF

CS1 to CS2 1 82416.69 82419.76 11:09 Gen. 63 13 1.27 2 35348.35 35362.73 00:36 Gen. 64 14 1.09 3 84957.13 84958.43 07:59 Gen. 53 11 1.05 4 69135.11 69139.51 08:30 Gen. 64 15 1.03 5 92170.95 92174.52 02:10 Gen. 47 10 1.03 6 30590.29 30604.57 11:31 Gen. 57 13 1.02 7 85240.83 85241.95 08:41 Gen. 54 11 1.01

Defect # on

RSTRENG List

Weld log,

distance m

Log distance

m

O’Clock position

Type Max Depth

Ave. Depth,

%

ERF

CS2 to CS3 1 2050.01 2051.20 11:05 Cluster 59 12 1.13 2 50035.06 50047.97 10:07 Cluster 50 10 1.13

CS5 to CS6 1 15399.31 15409.24 05:09 Cluster 40 7 1.04

The three remaining sections of the pipeline: CS3 to CS4; CS6 to CS7 and CS7 to Metro Adelaide were pigged and the final reports are to be handed in late February 2004. The defects will be analysed as above and the ones not passing the RSTRENG criteria will be marked for inspection and verification.

3.4 Coatings

Gippsland Cathodic Protection Services have completed DCVG surveys on the Wasleys to Torrens Island Loop Line, the Taperoo Lateral and the Dry Creek Lateral. Epic Energy’s Senior Cathodic Protection Engineer has assessed the reports and selected a number of defects to excavate and repair in 2004 as listed below;

• Dry Creek Lateral:- Lat - 34.836154 Long 138.581161 % IR drop 20 • Taperoo Lateral:- Lat - 34.80411 Long 138.518101 % IR drop 42

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• Taperoo Lateral:- Lat - 34.804037 Long 138.518073 % IR drop 35 • Wasleys to Adelaide Loop Line:- Lat -34.633725 Long138.557165 % IR

drop 40 • Wasleys to Adelaide Loop Line:- Lat -34.633772 Long138.55662 % IR drop

29

The results from the inspections at the above sites will be used as a benchmark to assess another seven (7) defects that were identified during the survey. From this assessment, the appropriate repair strategy will be identified and planned into the maintenance teams work load.

All above ground pipework and steel structures in the Taperoo, Virginia, Torrens Island, Burra and Whyalla meter station compounds were blasted and repainted.

3.5 Pipeline Cathodic Protection Epic Energy’s SAOP lays out how the Cathodic Protection system maintenance activities associated with the pipeline and its facilities will be managed throughout the year. All cathodic protection routine activities are specified in a computerized maintenance management system (Maximo) and scheduled by this system to the maintenance staff via work orders. To mitigate corrosion, all buried pipelines are covered with a protective coating, which serves to isolate the external pipeline surfaces from corrosive elements in the surrounding environment. Secondary protection at coating holidays and imperfections is achieved by applying cathodic protection.

3.5.1 Pipeline Potential Profiles Pipeline instant OFF potential profiles of February and August 2003 are given in Appendix B. They indicate that while the OFF potentials showed lower potentials than -850 mV in the February 2003 survey, the profile improved significantly in the August 2003 survey. The trend can be attributed to dry and wet seasonal changes. The low OFF potentials at KPs 67.7 9 (MLV 4) and 75.4 are transient as the pipe line showed satisfactory levels of protection in previous years.

The list below identifies all of the activities carried out by the maintenance teams in 2003.

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

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The February 2003 survey OFF potential profiles showed significant below criteria OFF potentials down stream of KP 340. The low levels were identified in the 2002 surveys and were found to be due to deterioration of ground beds at Kempes Bore (376.7 km), Farrell Flat (658.1) and Salter Springs (700.6 km). The newly installed ground beds will be investigated in the 2004 surveys New ground beds were installed at the following locations in 2003: Kempes Bore: Two new deep well ground beds were installed, each 30 m deep with 6 high silicon iron, HSI anodes. Farrell Flat: Six new ground beds were installed each 5m deep vertical beds with one HSI anode in each. Salter Point: Two new deep well ground beds were installed, each 30 m deep with 6 HSI anodes each.

The following routine planned maintenance tasks are scheduled throughout the year, The Moomba to Adelaide and associated laterals routine full line cathodic protection surveys were completed during 2003 as scheduled by Epic Energy’s computerized maintenance management system. (results of these surveys are presented graphically in appendix B) On the Moomba to Adelaide Pipeline and the associated laterals protected with impressed current systems, routine bi monthly cathodic protection transformer rectifier units maintenance was completed during 2003 as scheduled by Epic Energy’s computerized maintenance management system.

3.5.2 CP Repair Work Corrective maintenance identified during routine inspections of the transformer rectifier units or as a result of the analysis of the full line protection surveys data was entered into the maintenance management system, prioritized and scheduled into the work load of the maintenance teams.

3.6 Electrical and Instrumentation Epic Energy’s SAOP lays out how the Electrical and Instrumentation system maintenance activities associated with the pipeline and its facilities will be managed throughout the year. All Electrical and Instrumentation routine activities are specified in a computerized maintenance management system (Maximo) and scheduled by this system to the maintenance staff via work orders.

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The list below identifies all of the activities carried out by the maintenance teams in 2003.

• All routine custody transfer and fuel gas metering equipment accuracy

verification testing was completed as per the maintenance schedule. • All routine maintenance tasks associated with the pipeline compressor and

meter station facility natural gas detection equipment was completed as per the maintenance schedule.

• All routine maintenance tasks associated with the pipeline compressor and meter station facility fire detection equipment was completed as per the maintenance schedule and in accordance with the relevant Australian standards.

• Routine annual compressor and meter station uninterruptible power supply battery maintenance was completed as per the maintenance schedule.

• Routine annual process compression equipment engine management system and safety shutdown controls completed at all compressor stations as per the maintenance schedule. .

• Routine annual power generation equipment engine management system and safety shutdown controls completed at all compressor stations as per the maintenance schedule.

• Routine compressor and meter station emergency shutdown and other safety system electrical tests carried out as per the maintenance schedule.

• Routine compressor and meter station pressure, temperature and flow transducers along with their associated transmitters calibrated and tested as per the maintenance schedule. These tests ensure that the SCADA system receives accurate information.

• Routine electrical equipment testing completed at all of Epic Energy’s pipeline facilities as laid down by Australian standards and scheduled by the Epic Energy computerized maintenance management system schedule.

• An ongoing program of developing detailed Instrumentation and Electrical service procedures which capture all tasks required to be carried out in accordance with the various statutory requirements was progressed during 2003. Tasks identified have been included into the routine six monthly maintenance work instructions for all sites.

• The new six monthly work instructions have been trialed at a number of meter stations in 2003.

• A contractor was engaged during 2003 to carry out routine maintenance tasks on the 19KV SWER lines at Compressor station 4 as well the line supplied by the Electricity Trust Of SA system takeoff point at Yalparra to KP402 radio shack. These lines supply numerous cathodic protection sites and communications system radio facilities on the Moomba to Adelaide pipeline system.

• Compressor and metering station un-interruptible power supply battery chargers or the control equipment has been replaced with the latest technology systems at compressor stations one, three, four, six and the Mintaro and Osbourne meter stations.

• Uninterruptible power supply batteries have been replaced at Compressor stations 1,3,5 & 6

• A stay in business project to replace all of the mild steel instrumentation pipework fittings with stainless steel equivalents in the metropolitan meter stations has been progressed in 2003 with the majority of tasks completed.

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In addition to the routine tasks or project type activities above, the maintenance staff have investigated and solved numerous corrective maintenance issues that have been identified as a result of the routine maintenance activities or from failures that occur in the day to day operation of the pipeline. “Maximo” is used to schedule all of the identified corrective maintenance tasks on a priority basis into the maintenance teams work load.

3.6.1 Signage

All signage is inspected and maintained during routine pipeline road patrols as per AS2885 and can be considered to be in good condition. Epic Energy has just completed a program over three years prior to this period of upgrading and installing several hundred additional signs to ensure clear identification of the pipeline route. Additional signage if required due to changing land use conditions or the crossing of other services, as occurred in 2003 at several sites, will be identified during the routine patrols and entered into “Maximo” to allow for their installation to be scheduled into the maintenance teams work load.

3.6.2 Pressure Control and Protective Equipment

All pressure control devices located at compressor and meter stations along with their associated protection devices (pressure relief valves) are routinely calibrated as per the maintenance schedule and in accordance with the relevant Australian standard.

3.6.3 Site Security

All building and facility security systems such as motion detectors, door entry switches, window screens as well as the facility compound fences, critical valve and gate locks are checked as part of the routine pipeline patrol system and on a monthly basis to ensure they are all serviceable and remain fit for purpose. During 2003 a number of security breaches occurred as follows;

• The fence at the Freeling meter station was breached and the site solar panel stolen. As a result of this the facility fences were upgraded and the solar panels welded on to their associated support.

• Epic Energy’s Dry Creek facility was broken into on 3 occasions with office equipment being stolen. The security at Dry Creek will again be upgraded in 2004 with additional window protection, the installation of a boom gate entry system along with video camera surveillance and key pad to restrict public access to the facilities.

• The Osbourne meter station suffered a vandalism attacked with pressure gauge glasses and windows smashed.

3.6.4 Structures

All pipeline facility building structures are considered to be in sound condition and fit for purpose. No damage was reported, and only minor maintenance was required during 2003.

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3.7 Communications Epic Energy’s SAOP lays out how the maintenance activities associated with the pipelines microwave communications system will be managed throughout the year. All communication system routine activities are specified in a computerized maintenance management system (Maximo) and scheduled by this system to the maintenance staff via work orders. The list below identifies a range of the activities carried out by the maintenance teams in 2003.

The following routine planned maintenance tasks are scheduled throughout the year; All routine UHF and VHF communications system maintenance was completed as per the maintenance schedule. All routine maintenance tasks associated with the communications system uninterruptible power supply batteries was completed as per the maintenance schedule. All routine maintenance tasks associated with the communications system solar generated power supply batteries was completed as per the maintenance schedule. As part of routine maintenance inspections, two complete batteries systems were replaced at KP 306 and the Wonoka hill communications sites during 2003. Solar powered site emergency generator repairs and maintenance tasks were completed as per the maintenance schedule. During 2003 a number of communications system outages occurred when inclement weather caused the site AC power supply to be interrupted for extended periods and the uninterruptible power supply batteries were then exhausted before a maintenance crew could get to site.

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Telstra land line connections have caused a number of communications system problems in 2003 with Epic Energy and Telstra maintenance staff on occasions needing to join forces to track down the faults.

In a number of cases proposed system changes have been forwarded to the engineering group for assessment in 2004. In addition to the routine tasks above the maintenance staff have responded to, investigated and solved numerous corrective maintenance issues that have been identified as a result of the routine maintenance activities or from failures that occur in the day to day operation of the pipeline communications system. “Maximo” is used to schedule all of the identified corrective maintenance tasks on a priority basis into the maintenance teams work load.

3.8 Mechanical Epic Energy’s SAOP lays out how the pipeline and its associated facilities mechanical maintenance activities will be managed throughout the year. All Mechanical system routine activities are specified in a computerized maintenance management system (Maximo) and scheduled by this system to the maintenance staff via work orders. The list below summarizes the activities carried out by the maintenance teams in 2003.

The following routine planned maintenance tasks are scheduled throughout the year;

• All compressor and meter station routine filter inspections/changes were completed as per the maintenance schedule.

• All of the pipeline, compressor and meter station routine MLV and other major valve including the valve operator maintenance was completed as per the maintenance schedule.

All compressor and meter station routine emergency shutdown system checks were completed in accordance with the maintenance schedule. All compressor and meter station routine pressure regulator and over pressure protection devices tested in accordance with the relevant Australian standard as detailed in the maintenance schedule.

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All routine maintenance tasks associated with the compressor station power generation equipment was completed as per the maintenance schedule. These tasks were established based on the recommendations of the original equipment manufacturer and extended by Epic Energy’s technical services group.

• All routine maintenance tasks associated with the compressor station process

gas compressors and their associated drivers was completed as per the maintenance schedule. These tasks were established based on the recommendations of the original equipment manufacturer and extended by Epic Energy’s technical services group.

• All Routine maintenance activities associated with compressor and meter station ancillary equipment completed as per the maintenance schedule.

• All fixed and portable fire fighting equipment inspected as per the maintenance schedule and in accordance with the relevant Australian standards.

• A top end overhaul carried out as part of the scheduled maintenance on the Reciprocating Engine and Process Compressor at the Whyte Yarcowie compressor station. This task involved the replacement of all cylinder heads and the replacement/inspection of all bearings the pistons and engine liners.

• End of service life (45,000hr) overhauls carried out on power generation equipment gas powered reciprocating engine alternators (GEA’s) at CS1, 3 and 4.

• During 2003, an extensive boroscoping program was undertaken to identify any gas turbine related problems with the compression packages at CS1, 2, 3, 4, 5 and 6. As a result of this program, a number of problems were identified with the Allison 501KC-5 engines resulting in turbines at CS3, 4 and 6 requiring combustion liner replacements.

• Annual routine maintenance inspections were completed on all pressure vessels associated with the pipeline and its associated facilities as per the maintenance schedule and in accordance with the relevant Australian standard AS3788. The results from the inspection report have been forwarded to Epic Energy’s Engineering consultants. An action plan to correct any of the identified deficiencies has been developed and remedial tasks planned into Epic Energy’s maintenance staffs work load for 2004.

In addition to the routine tasks and project work above, the maintenance staff have responded to, investigated and solved numerous corrective maintenance issues that have been identified as a result of the routine maintenance activities or from failures that occur in the day to day operation of the pipeline mechanical systems. “Maximo” is used to schedule all of the identified corrective maintenance tasks on a priority basis into the maintenance teams work load.

3.9 Ancillary Equipment

Ancillary equipment such as pipe supports, pipe ground entry points, valves and pigging facilities are routinely inspected as part of the facilities inspections or as a part of the mechanical maintenance as detailed above. Underwater crossing inspections are carried out annually on the Whyalla Lateral crossing of the Spenser Gulf, the Wasleys to Adelaide Loop Line crossing of the Barker Inlet and the Taperoo, Pelican Point, Osborne Lateral crossings of the Port River. Reports indicate minor repairs to the cover on the Whyalla Lateral crossing, a contractor has been employed to complete this work in early 2004.

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3.10 Results, Analysis and Remedial Action Taken Results from routine inspections are reviewed by the field technical services group to ensure that any problems or issues that may have been overlooked are identified and addressed by the maintenance staff or forwarded onto engineering for further technical analysis. If a problem requires a system design change to be made, the maintenance staff, field technical services group or engineering will put forward the proposed modification using a design change process. This process is one of review and formal acceptance and sign off by the engineering group. On intervals that are random, administrative reviews by the Maintenance Superintendents occurred. There were minor administrative practices picked up during these reviews and personnel were addressed on non-conformance. Follow-up auditing will occur to ensure compliance to practices. As a result of the routine maintenance activities of the field staff or due to the day to day operation of the pipeline, numerous corrective action maintenance tasks are identified in the course of a year. All of the tasks identified are investigated, corrective actions specified, the task prioritized by the maintenance staff and entered into “Maximo” along with all equipment and parts needed to complete the job. The planning group using “Maximo” information then schedule the corrective action maintenance tasks into the maintenance teams work load using a work order system. Corrective maintenance activities are prioritized using a three step process as follows,

• Priority three (3) faults will be addressed within twenty four (24) hours, • Priority two (2) faults will be addressed within ten (10) days • Priority one (1) faults will be addressed within six (6) weeks

During the reporting period, 2063 corrective maintenance tasks were addressed using the above technique.

4 THREAT MITIGATION

4.1 Surveillance Epic Energy’s SAOP lays out how the surveillance activities associated with the pipeline system will be managed throughout the year. All routine surveillance activities are specified in a computerized maintenance management system (Maximo) and scheduled by this system to the maintenance staff via work orders. The list below summaries many the activities carried out by the maintenance teams in 2003.

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The aerial and road patrols ensure that the pipeline;

• signage is in a service-able condition • there are no unauthorized activities occurring along the pipeline route or at

any of the numerous facilities • soil erosion due to wind and water is addressed • there are no leaks occurring at any of the pipeline facilities or along the

pipeline route • all sites are` secure • general housekeeping tasks are addressed.

• Routine monthly pipeline mainline valve sites, compressor station and meter station inspections were carried out in accordance with AS2885, Epic Energy procedures and the maintenance schedule.

• Epic Energy as a requirement of AS2885 participates in a “One Call” system that generates numerous investigations and actual locations of the mainline and the laterals. During 2003, 2800 “One Call” messages were assessed by Epic maintenance staff and 94 actual pipeline locations performed.

Any corrective maintenance or necessary follow up actions that are identified as a result of the various routine patrols will be prioritized and entered in “Maximo”. The planning group then uses this information to schedule the tasks into the work load of the maintenance team in accordance with the priority system discussed in section 3.10.

4.2 Maintenance Programs

The maintenance program was carried out to completion in 2003. No significant issues were recorded to report on.

The following routine planned maintenance tasks are scheduled throughout the year; • Three monthly surveillance flights to monitor soil

erosion and third party activities were carried out in accordance with AS2885, Epic Energy procedures and the maintenance schedule.

• Monthly surveillance flights primarily to monitor third party activities in the metropolitan area were carried out in accordance with AS2885, Epic Energy procedures and the maintenance schedule.

• Routine road patrols with frequencies of daily in the metropolitan area, weekly in some rural areas, monthly in others and three monthly in the more remote areas of the pipeline were carried out in accordance with AS2885, Epic Energy procedures and the maintenance schedule.

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A revised work scheduling system was introduced during 2003 whereby the planning department identified all routine and corrective maintenance activities that will fall due on a given date within a specified period, or be required due to the task priority system timeframe meaning the task will need to be done during the next roster cycle or fourteen days. The planning group then determines if the resources (personnel, material, parts or supplies) will be available to do the tasks and from this a pack of work is developed to be issued to the maintenance teams for the specified period. The Work Pack System was introduced into South Australia in April 2003.

In addition to the changes to the work scheduling system, a continuous review process ensures that the maintenance plans and maintenance schedules will meet all of Epic Energy’s legal, contractual and compliance obligations.

4.3 Marking

The pipeline markers were installed in accordance with AS2885.1. Epic Energy makes every endeavor to ensure the signage continues to meet the standard. Epic Energy has just completed a program over three years prior to this period of upgrading and installing several hundred additional signs to ensure clear identification of the pipeline route. Routine patrols identify Line of Sight issues throughout the reporting year and these are addressed on an as needs basis with either contractors or in-house staff ensuring the LOS is maintained by installing new signs or replacing warning stickers. During 2003 LOS signage has been updated on the Whyalla Lateral. Additional signage has been installed throughout 2003 to ensure the Epic Energy and SeaGas pipelines are clearly identified at the various crossing points.

4.4 External Interference Prevention

4.4.1 Pipeline Location Service

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

There were 2800 One Calls responded to in 2003, with approximately 94 actual pipeline locations performed.

The majority of the pipeline locations requested were a result of the “One Call" system. They ranged from new installations crossing the pipeline, new fences as a result of subdivisions and general activities on the pipeline easement.

All authorized activities within the pipeline easement were supervised by Epic Energy Field Officers to ensure the safety and integrity of the pipeline.

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During 2003, Epic Energy provided site supervision for a number of companies when their construction projects impacted on the Moomba to Adelaide pipeline systems. Epic Energy is required to supervise all activities within the pipeline easements and ensure the work is carried out under an Epic Energy “Permit to Work” The projects that had the most impact were

• The installation of the SeaGas pipeline from Victoria which crosses the MAP in a number of locations

• The South Australia Water Authorities Bolivar sewerage pipeline construction

• An 11KV overhead ETSA power line crossing proposed at Mintaro for the MAP and the Mintaro Lateral.

• A direction drilling project for Origin Energy gas pipeline project work • Other site inspections were required due to the day to day activities of

other companies when their work requirements impact on the MAP.

4.4 Landholder Contacts. There are 470 landowners and occupiers along the MAP system.

Pastoral landowners on the northern section of the MAP were contacted during the reporting period. Any landowners not contacted during 2003 will be visited early 2004. Landowners on the Wasleys Loop, Pirie Lateral Whyalla Lateral and Angaston Lateral were contacted during the year. The total number of landowners who are contacted annually in SA is approximately 750.

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

Other contacts made by the Land Management Officer, Field Maintenance Officers or the maintenance Superintendents during the course of daily business, or other land related issues that arise occasionally are recorded in Epic Energy’s Land Management System (LMS).

Land Management is supported by dedicated LMS software. It provides a powerful database and MapInfo facilities. All property details and notes relating to discussions or issues with the property owners are recorded in LMS. Through the MapInfo facility, an image of the cadastral boundaries of each property, relative to the pipeline route, can be displayed for any property.

If personal contact cannot be made, the occupier or owner is telephoned or mailed a letter explaining the reason for the visit.

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When a land management officer visits an unattended residence they will leave the contact officer’s business card, an information brochure on pipeline safety and our “Dial Before You Dig” contact phone number.

All property owners receive our Pipeline Safety brochure, a complimentary biro, as well as a pipeline safety awareness calendar, which is individually mailed out.

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

A hard file is also maintained for each of the 1500 land parcels crossed by pipelines. These files are in the process of being scanned and converted to electronic versions. The hard copy files will continue to be kept as back up to the main system. Each property is flagged with the Land Titles Office, who inform Epic Energy of any changes in ownership or land tenure details.

4.6 Community Awareness

Epic Energy implements a Community Awareness Program, which entails holding awareness meetings with communities along the pipeline route.

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

As a response to the high number of crossings in the Gillman, Dry Creek, Port Adelaide and Lefevre Peninsula areas of the MAP, Pelican Point Lateral, Taperoo Lateral and Osborne Laterals targeted visits were made to developers and authorities with interests in these areas. The following groups were visited during 2003 by Epic Energy’s HELM representatives:

• Property Developers URS Australia • Planning SA/Development Assessment Commission • Land Management Corporation • Penrice Soda Products • Planning, Port Adelaide Council • Planning, City of Salisbury

Each of these entities were briefed about the presence of our pipelines in their areas of concern and made aware of our easement requirements. All were given plans of pipeline routes and various follow up assistance with queries. This process has resulted in a significant increase of awareness of Epic’s Pipeline interests within these areas.

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A community awareness meeting was held in Peterborough, to coincide with the emergency exercise, held on the Peterborough Lateral.

5.0 MANAGEMENT

5.1 Risk Assessments

The risk management system is utilised to ensure that hazards are identified and risks evaluated and managed at all facilities. The process for identifying, assessing and managing risks is documented and includes:

• Hazard identification • Hazard analysis • Risk assessment • Risk control • Reporting and close out

Hazards are identified using the following tools – HAZOP, HAZID, safety reviews, job hazard analysis, incident reports and investigations, audits and inspections together with the AS2885 risk assessment. Hazard analysis is conducted using HAZAN and job hazard analysis. Risk assessments are conducted to assess risk against set criteria, to demonstrate that risk reduction measures are as low as reasonably practicable (ALARP). This is done using the following tools: risk matrix, previously conducted risk assessments, AS2885 pipeline risk assessment and comparison against standards, codes and legislation.

Risk control methods include the following – elimination, substitution, engineering controls, administrative (procedural controls) and personal protective equipment (PPE).

Reports are then prepared with tasks allocated to appropriate people for action. Tools used in this area include the hazard register, critical tasks list and close out reports.

During 2003, the following HAZOPS and risk assessments were conducted or completed for internal reviewed or for operational requirements due to third party activities along the pipeline systems;

• Compressor Station 4 HAZOP completed • Wasleys compressor station Hazop completed • MLV28 – Pipe Obstruction HAZOP • Beach Petroleum HAZOP/HAZID – ROW use • HAZOP – Balcoracana Creek Tie In • Meetings with Origin Energy, Spie-Lucas and SA Water. Discussed

hazards and risks associated with future major crossings of the MAP.

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• A document has been forwarded to each company with an Epic Energy

minimum expected requirement for each of the hazards identified. • Assisted GPA and TXU with risk assessments for the SeaGas tie in. • Risk assessments carried out for the proposed SeaGas directional drilling

operations. • Risk assessments carried out for the proposed crossing of the MAP at

Taperoo by the SeaGas pipeline using directional drilling operations. • Risk assessments carried out for the proposed crossing of the MAP by the

SeagGas pipeline at Port Wakefield road using directional drilling operations.

Risk assessments and HAZOP actions -

• Data collected from the AS2885 Risk Assessments and HAZOPS of the

South Australian Pipeline systems has been formatted into location specific and non specific data bases to easily identify the actions. The actions have been prioritized and will be included into the 2004 capital project works program and the SA maintenance plan.

• All data from the SA risk assessments and HAZOPS are currently being formatted into a report for PIRSA.

5.1.2 AS2885 Risk Assessment

A complete AS2885 Risk Assessment was carried out in November 2001 on the Liquids Pipeline. All threats identified during that process were reported in the Risk Assessment dated 6 December 2001. The following threats were deemed credible as reported in the 2001 Annual Report. Actions were carried out to assess the risk with results indicated below: The following information was reported in 2002 but is considered relevant in this report.

• Excessive external loads due to heavy vehicles, bogged vehicles and

impact from vehicles. Action:- Calculation completed-no credible risk at any crossings.

• Casing shielding pipeline from adequate CP causing potential decrease in the cathodic field on the carrier pipeline, decrease in mechanical strength of casing due to corrosion, breather pipe prone to corrosion and localised corrosive environment due to ingress of water in cavity. To be excavated and checked during 2004.

• Corruption of CP causing potential increase in corrosion. Action:- This risk has been assessed by Epic Energy’s Senior Corrosion prevention Engineer with a result that no threat has been identified.

• CP system interference from other pipelines. Action:- This risk has been assessed by Epic Energy’s Senior Corrosion prevention Engineer with a result that no threat has been identified.

• Excavation, causing potential damage to the pipeline. Action:- To address this risk additional signage has been installed.

• Other pipeline failure (rupture), causing potential product release and fire/explosion impacting on the liquids pipeline. Action:- Assessed to be ALARP.

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• Erosion, flotation of pipeline and impact from floating objects,

causing potential movement and structural damage to the pipeline and damage to the pipeline coating. Action:- Assessed to be ALARP.

• Powerline breakages and fault current. Action:- Addressed during AC Mitigation Survey – no threat identified.

• Induced voltages, fault current and lightning threats from parallel powerlines. Action:- Addressed during AC Mitigation Survey – no threat identified.

• Internal, external and general corrosion. Action:- A DCVG survey has been completed and a program of excavations has been presented to Santos for 2004.

• External interference from trenching operations, power pole hole boring, core sampling, bore drilling, blasting, dam building and quarrying. Action:- Assessed to be ALARP.

• Pigging operations. Action:- During 2003 all Work Instructions associated with pipeline pigging operations have been reviewed and updated.

• Loss of communications. Action:- External contractors engaged to support Field expertise.

• Inadequate maintenance procedures. Action:- During 2003 all Work Instructions have been reviewed, updated and modified as required.

• Lightning strike. Action:- AC mitigation survey conducted-no threat identified.

• Sabotage, terrorism, intentional damage. Action:- Epic Energy has raised the awareness of all staff in regard to security issues and is implementing security measures to ensure security risks can be consider ALARP.

Of the above, external corrosion, dam building, power pole hole boring and trenching were identified as intermediate threats, with all others identified as low or negligible. The next full risk assessment is due in 2006.

5.1.3 Other

During the risk assessment process third party activity has been identified as being the most likely cause of damage to the Moomba to Adelaide Pipeline. Unauthorized activity on the pipeline easement is the greatest concern. The risks identified are predominately from landowners carrying out activities that involve excavations, post hole boring, or changing the land use without advising Epic Energy or from utilities and councils, whenever they are installing new services or conducting activities that may impact on the pipeline corridor In addition to the above risks, the unauthorized use of heavy machinery and earth moving equipment on the easement poses a further risk to the safety of the pipeline system.

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Natural events such as erosion, flooding of the pipeline and impact from floating objects, have the potential to cause pipeline and coating damage. Epic Energy ensures the pipeline safety through regular road and aerial patrols, installation and maintenance of pipeline system warning signs as well as conducting a community and landowner awareness program. Epic Energy routinely reviews patrol frequencies to ensure they adequately meet the changing requirements of the community and the landowners who impact on the pipeline thereby ensuring the risks that these groups impose are adequately managed.

5.2 Management Systems • Resignation received from Field Roster Superintendent. • Advertisements placed for a Mechanical Field Maintenance Officer &

applications received. • Interviews completed for the SA Roster Field Maintenance position,

second round to be scheduled early in May. • All SA Maintenance Superintendents positions will be filled by Epic

Energy FMO during the month of May. • Interviews and testing completed for the SA Field Maintenance Officer. • Interviews and testing completed for the SA Field Technical Services

Officer. • Leadership Workshop – Mt. Lofty House • SeaGas Tender preparation • OSS Meeting/Workshop in W.A. • Business Planning/Budget process. • SEA Gas Tender Rework. • A draft copy of Epic Energy’s Safety and Operating Plan has been

forwarded to PIRSA for comment.

5.2.1 Reports Generated in 2003

The following reports were generated and forwarded to PIRSA during 2003: • Emergency Exercise Moomba Report, submitted January 2003 • Quarterly Incident Reports • Emergency exercise Operation EPIGAS report forwarded to PIRSA 8th

November 2003 • Emergency exercise report Murray Bridge forwarded to Origin • PL1 Annual Report for 2002, forwarded in February 2003 • PL1 2003 Fitness For Purpose Report, submitted in February 2003 • PL1 SEO submitted to PIRSA in March 2003. Comments received

from PIRSA were addressed and the SEO was gazetted on 3rd July 2003

• Draft copy of the SAOP for PL1 submitted December 2003

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5.2.2 2003 One-off Activities

• Intelligent pigging of the 550mm Moomba to Adelaide pipeline from Moomba to Torrens Island was completed in 2003.

• During 2003, a project title Antiquated Equipment has been completed. This projected replaced a range of outdated process instrumentation equipment at all major meter stations.

• Replaced uninterruptible power supply battery chargers at the Osbourne, Taperoo and Mintaro meter stations.

• Redundant downstream filter separator vessels removed from Torrens Island meter station.

• Meter station painting at Taperoo, Virginia, Torrens Island, Burra & Whyalla.

• Provided site supervision for a number of excavations and Horizontal directional drills where the SeaGas pipeline crossed the Moomba to Adelaide pipeline.

• Provided site supervision to an SA Water project for a sewerage line to the Bolivar treatment work.

• Assisted SA Water and the SeaGas project team to prepare work procedures and identify all of the Hazards that would be encountered when operating in close proximity of the Moomba to Adelaide gas pipeline

• Relocated all Telstra services from Peterborough depot to Peterborough radio shack. This will allow for the sale or lease of the depot.

• MAP telephone exchange upgraded to NEC ICS120 system. Replaced existing exchange line indials with 2 x ISDN onramp 2 services.

• Additional pigging operations were carried out during the year from CS7 to Torrens Island in an attempt to locate the source of an obstruction in the pipeline that had damaged the gauging plate during the initial gauge pig run in this section. A modified geometry pig was developed which allowed Rosen to pin point (with an 80% probability) the source of the obstruction to a location downstream of the MLV 28 stopple tee.

• Epic Energy engaged the services of PNDT who constructed a pneumatic tool which was able to be lowered into the pipeline via a six inch MLV bypass vent stack riser and then crawl 22 metres through the pipeline carrying a video camera to allow visual inspection of the defect site. A section of the pipeline between MLV 28 and 29 was depressurized allowing the insertion of the inspection tool which subsequently located the cause of the obstruction. The video inspection indicated that the dent was possibly caused during the hot tapping and stoppling procedures in 1993. This may have resulted from the hot tap and stopple equipment not being set up in a central position and the stoppling ram catching the edge of the pipework on the way into the pipe.

• Once the obstruction had been identified, the stopple tee was excavated, blanking plate removed and the damaged area assessed. The obstruction was removed by hydraulically jacking the pipe back into shape.

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New cathodic protection ground beds were installed at the following locations in 2003:

• Kempes Bore: Two new deep well ground beds were installed, each 30 m deep with 6 high silicon iron, HSI anodes.

• Farrell Flat: Six new ground beds were installed each 5m deep vertical beds with one HSI anode in each.

• Salter Point: Two new deep well ground beds were installed, each 30 m deep with 6 HSI anodes each.

During 2003, a centrifugal type oil separator was installed in the compression unit discharge line at Whyte Yarcowie, to eliminate oil being passed into the lateral system which has been an ongoing problem for the end users at Whyalla and Port Pirie. The Balcooracana Creek pipeline crossing was excavated and a new piece of pipe laid at a depth to prevent the flowing water from exposing the pipeline as has happened in the past. The pipeline was depressurized from MLV 12 to MLV 13 while the original crossing was cut out and the new line welded in.

5.2.3 2004 One-off Activities

• The painting of all above ground pipework and structural steelwork at the following meter stations Nuriootpa, Angaston, Elizabeth, Bungarma Cotton Road & Port Bonython

• The painting of all above ground pipework and structural steel at compressor stations 3 & 5

• Compressor station control room facilities upgrade • Whyte Yarcowie compressor station human machine interface upgrade • Compressor station power generation equipment building upgrade • Compressor station unit A fuel gas system upgrade • Pipeline communications system remote alarm monitoring system

installation • Remedial work generated as a result of the 2002/3 Compressor & Meter

station HAZOP’s or Audits • Meter station Earthing and Lightning protection upgrade project • Battery charger upgrades at Torrens Island and Gepps Cross meter

stations • Removal, inspection and recertification of the Dry Creek meter station filter

separator • Excavations as a result of the recently completed DCVG surveys. • Excavations as a result of the recently completed Intelligent pigging

program • Gas metering Upgrade project at meter stations including replacing the

densotometers and upgrading the flow computers • Regulator temperature investigation into downstream of station regulated

pipework

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• EXD electrical upgrade at Torrens Island and Gepps Cross meter station • SCC investigation downstream of compressor stations

5.2.4 Volume of Product Transported

Approximately 91,540 TJ of natural gas were transported through the Moomba to Adelaide Pipeline in 2003.

5.2.5 Statement of Expenditure

Commercial in Confidence.

5.3 Emergency Response Pipeline Licence 1 states that an emergency exercise is to be conducted on the Moomba to Adelaide pipeline system every two years. Epic Energy satisfies this requirement by conducting two emergency exercises annually in South Australia. Conducting two exercises a year allows Epic Energy to refine our emergency response preparedness and to gain a broader understanding of response requirements, roles and responsibilities within the Epic Energy team when dealing with a variety of emergency situation scenarios. Emergency Response procedures are detailed in the Epic Energy’s “Emergency Response Manual” which was updated in 2003.

5.3.1 Emergency Response Incidents.

During the reporting period, there were no recorded pipeline incidents that required Epic Energy to initiate an Emergency Response.

5.3.2 Emergency Response Exercises

Pipeline Licence 1 requires emergency drills be held on the pipeline system at least every two years. For PL1, a full mobilization exercise “Exercise EPIGAS” was conducted on the MAP at Peterborough. The exercise was carried out in conjunction with other emergency services [SES, CFS, MFS, Police, and Ambulance], to test the communication between all parties and prepare Epic Energy personnel in the event of a real emergency situation. The incident simulated a planned excavation on the Peterborough Lateral whereby the backhoe operator punctured the pipeline which caused an explosion resulting in a fire and personnel injuries. A report dated 8th November 2003 has been sent to PIRSA summarizing the findings of this exercise. In addition to “Exercise EPIGAS” on PL1, two other emergency exercises were carried out by Epic Energy in 2003.

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An exercise was conducted on the Riverland Pipeline System called “Operation Murray Bridge” on the 7th July 2003. This exercise was coordinated from the South Australian Incident Command Centre at Dry Creek and involved the mobilization of field staff and equipment to site. A report was prepared by Epic Energy and forwarded to Origin Energy. A full mobilization exercise referred to as “Exercise Quilpie” was conducted on the Queensland Pipeline System which was designed to exercise the National Crisis and Emergency Management team. Exercise Quilpie took place on 30th October 2003 and involved Epic Energy staff nationally along with external role players with the management of the exercise being controlled form the Dry Creek Incident Command centre.

Objectives of the emergency exercise To test the ability of the South Australian Emergency Response Team and the Emergency Management Team to respond to an emergency situation to a standard, which meets regulatory requirements, including the mobilisation of personnel and equipment to the incident site.

To test the Emergency Response room layout facilities and time to set up at Epic Energy’s Dry Creek and Perth locations. To test the callout system of the Epic Energy Crisis Management Team, the Head Office supporting teams and the South Australian technical and sales teams, as appropriate to the scenario.

5.4 Incidents and Corrective/Preventative Action

5.4.1 Incidents Vehicle incidents There were 4 avoidable and 2 unavoidable vehicle incidents on the MAP during the reporting period.

Safety incidents There were 2 safety incidents, 1 near miss, 1 safety damage and 6 safety hazards on the MAP during the reporting period.

Injuries reported There were 3 Nil First Aid, 3 First Aid Injuries, 0 LTI and 1 MTI safety incidents during the reporting period.

Environmental incidents There were 7 reportable environmental incidents, 4 environmental encroachments, 0 environmental near miss and 4 non-reportable environmental accidents.

Security incidents There were 5 security incidents.

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A Total of 43 Incident Reports received for the MAP for 2003.

5.5 Reported Incidents

Every quarter, Epic Energy submits a summary of reportable incidents to PIRSA. The PIRSA incident summary report provides a summary of all reportable incidents for the quarter, incident analysis information, action details and action status. A total of 43 safety and environmental incidents were reported on the Moomba to Adelaide Pipeline, including:

5.5.1 Unauthorized Activity in the Easement Zone 2 A truck had driven over the pipeline leaving minimal depth tracks. Zone 4 KP 733.753 Landowner was identified installing fence poles on the ROW. Wasleys, Torrens Island Work conducted on the easement was not authorized by Epic Energy but was authorized by the TXU Officer. Daily patrols identified unapproved work being conducted on the Wasley’s Loopline.

5.5.2 Gas Releases

There were 2 incidents related to the opening of relief valves in 2003. Zone 1 CS1

• Station pressurizing valve did not close causing a loss of gas. The cause of this incident has been rigorously investigated and a solution put in place to prevent reoccurrence.

Zone 3 CS7

• Gas venting from the station control gas No 2. The cause of this incident is the subject of an engineering design review to prevent reoccurrence.

5.5.3 Oil Spills

Zone 1 CS1 • Oil spill to ground estimated 3-5L, probable cause appears to be

broken interface between the valve and operator and the PLC scrubber control logic which is flawed (we believe) and allows these valves to be in a position which compromises the integrity of this system. The cause of this incident has been assessed and found to be a PLC control logic design error which has now been rectified to make the system more robust and prevent a reoccurrence.

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Zone 4 Osborne Meter Station

• Process liquids (40 litres) were spilt to ground during a test of the blow down system on the station separator because the bottom blow down valve failed to close.

The root cause of this incident has been identified as the automatic blowdown valve sticking in the open position. This valve has since been removed and overhauled and is now part of routine maintenance to prevent a future re-occurrence.

• Process liquids (10 litres) were released during the de-isolation process following a planned internal inspection of Osborne Filter Coalescer because a dump valve became stuck in the open position. The automatic dump valve has been overhauled and a manual isolation valve installed to allow maintenance staff to positively isolate the liquids container when carrying out maintenance activities.

Zone 3

• A leaking oil drain line was identified during the GEA Upgrade Project. The maintenance staff rectified this leakage by removing the oil drain line and resealing the joint before reinstatement of the drain.

Zone 2

• Approx 100 litres of diesel fuel was spilt to ground during re-fueling a vehicle. This spillage occurred because the operator over rode the auto shutoff on the refueling nozzle. This action has been the subject of an environmental tool box discussion with all personnel and the consequences of making decisions of this nature highlighted.

5.5.4 Reportable Injuries Dry Creek

• A back strain injury was sustained during an off road trip between CS3 and 4. The employee received medical treatment and has returned to restricted work duties.

MLV Mount Gambier Meter Station

• A contract employee fell back of a concrete pad and hit his head on pipe work. It is understood the employee was taken to hospital where he received stitches and treatment for concussion.

5.5.5 Vehicle Incidents Zone 2

• During a vehicle inspection it was found that a rear wheel rim was fitted incorrectly and three of the vehicle tyres were in need of immediate replacement before the vehicle would be considered road worthy. The incorrectly installed wheel rim had caused the nut holes to stretch resulting in the wheel not being secure.

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Individual team member are now responsible for particular vehicles.

CS4 • Vehicle was damaged when driver attempted to cross a creek. • A hire vehicle was damaged when a heavily laden trailer began swerving due to speed and driving conditions.

Zone 3 • A contractor sustain a flat tyre, it was then identified that the vehicle did not have a wheel brace to change the tyre.

As a result of investigations from the above avoidable vehicle incidents, Epic Energy’s safety department has instigated a formal routine vehicle inspection checklist that is scheduled by Maximo and requires a written record of all vehicle checks to be filed. Epic Energy has in place a policy of “Four Wheel Driver and Defensive Driving” training to minimize the number of avoidable vehicle incidents caused by driver error.

Incident Trend Analysis

0

2

4

6

8

10

12

14

16

Num

ber o

f Inc

iden

ts

MAP - 2002 MAP - 2003Pipeline

MAP Reportable Incidents 2002 & 2003

LTIMTIENVIRONMENTAL (REPORTABLE)ENCROACHMENTSVEHICLE (AVOIDABLE)TOTAL NO. OF INCIDENTS

The number of incidents reported increased by 3 during 2003 to 16. There was 1 MTI and 0 LTI reported on the MAP during 2003. During 2002, there was 1 LTI and MTI. The number of avoidable vehicle increased 4 reported during 2003. The number of reportable environmental incidents increased from 6 in 2002 to 7 in 2003.

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The number of Unauthorized 3rd Party Encroachments remained the same. There were 4 Unauthorized 3rd Party Encroachments reported during 2002 and 2003.

5.6 Audits

Epic Energy is committed to providing an accident free and healthy workplace for all employees, contractors and the public by implementing an integrated safety management system and maintaining the highest standards possible. To achieve this goal, Epic Energy has systems in place that require staff to routinely inspect the work place no matter where that may be and carry out a number of audit functions that ensure a safe and healthy work environment is maintained. The list below is a summary of the audits carried out in 2003.

• During the reporting period, monthly safety and housekeeping audits have been completed at all of the pipelines facilities as per the maintenance schedule.

• During the reporting period, a noise survey audit was conducted al all

of the pipeline meter and compressor stations.

• During the reporting period, audits were carried out on the compressor and meter station facility drawings to ensure they comply with the latest revisions as supplied by Epic Energy’s engineering consultants drafting office.

• Epic Energy’s Engineering consultant engaged to undertake a “Fitness

for Purpose audit of all facilities working platforms and ladders. A costing and report has been presented to Epic Energy and is currently under review.

• MAP antiquated equipment audit carried out in zone 4.

• The results of these audit functions are filed and any actions arising

from them are entered in Epic Energy’s computerized maintenance management system which automatically raises work orders based on the level of prioritization given to the individual action items.

5.6.1 Operational Audits Previously, corporate internal audits of an operational nature were conducted by El Paso Corporate Audit division from the USA, however the internal auditing framework within Epic Energy was reviewed in the last quarter of 2003. Based on a high level risk assessment an internal audit plan was presented to the Audit Committee in December 2003 and the audit plan will in future be undertaken on an Australian based level using appropriate consulting services and internal auditing resources within Epic Energy.

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5.6.2 Environmental Audits

The Environmental Management System (EMS) has been developed and implemented at Epic Energy to provide all Epic Energy personnel with a framework for the management of environmental issues. The Environmental Management System provides guidance to personnel at all levels of the organization to ensure that all activities on site are undertaken in accordance with Epic Energy’s Environmental Policy and all regulatory requirements. It is an integral part of the overall management system at Epic Energy. The SEO and EIR for the Moomba to Adelaide Pipeline was completed and gazetted by the SA Government during 2003. Parsons Brinckerhoff Environmental & Infrastructure Pty Ltd were commissioned to undertake environmental monitoring works at several sites along the Moomba to Adelaide Pipeline. These sites included

• Compressor Stations 1 - 7 • the Mintaro Meter Station, • Peterborough Depot • Torrens Island, Taperoo, Dry Creek and Elizabeth meter stations.

The objectives of the program are part of ongoing environmental monitoring and walk through inspections to identify significant environmental issues. Groundwater monitoring was carried out at selected sites to determine the extent of hydrocarbon plume beneath the site and whether this has changed since the previous round of monitoring. Groundwater monitoring at CS7 indicate that the dissolved hydrocarbon concentrations are significantly less than previously reported and no significant migration of the contaminated plume can be detected. A passive skimmer unit was installed in 2002 and has been operating effectively reducing the thickness of phase-separated hydrocarbons to a thin film. Epic Energy has accepted Parson Brinckerhoffs recommendation that the unit remain in operation until the rate of PSH recovery becomes negligible In addition to the ground water monitoring above, Parsons Brinckerhoff also reviewed a number of sites that have stock piled contaminated soil. Stockpiled contaminated material at CS1 & 5 exhibits a significant reduction in petroleum hydrocarbon concentration levels since last report and the material is considered to be suitable for retention in its current location.

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Stockpiled material at CS3 and the Peterborough depot shows increased levels of hydrocarbon products (due to the past practice of releasing water from the interceptor traps into the stockpile) and must remain in its present location. Monitoring of previously identified hydrocarbon contamination within the groundwater at four meter stations.

• Torrens Island • Dry Creek • Taperoo • Elizabeth

The external consultants report indicated a plume of dissolved-phase hydrocarbon contamination remains at Torrens Island in the vicinity of the removed underground tank. Compared with historical data, the concentration appears to have increased. This may be due to seasonal fluctuations. There was no conclusive additional evidence of biodegradation activity occurring in the groundwater beneath and continued 6 monthly inspections have been recommended. Epic Energy has reached an agreement with the local landholder of “Barratta Station” whereby the management of an existing area of “African Rue”, an exotic weed along the Right Of Way in the vicinity of CS5, will be monitored and sprayed at appropriate intervals by a contractor with local knowledge to provide a more effective eradication program.

The environmental audit process was taken into consideration in the internal audit framework review referred to above. Audits of environmental management will continue to be undertaken in line with the Environmental Management System (EMS). An Environmental internal audit is planned to commence in the first quarter of 2004 and will cover the updated EMS of 2003 and the compliance with procedures during 2003.

5.6.3 Safety Audits

Epic Energy has developed and implemented a Safety Management System (SMS) for all operations and pipeline systems Housekeeping inspections are conducted monthly at all facilities, in accordance with our SMS requirements. Any safety or housekeeping issues that require remedial actions found during the routine inspections are wherever possible addressed immediately or if this is impractical they will be prioritized and entered into “Maximo” which will allocate the tasks into the relevant groups work load and track the resulting action to completion. The safety audit process was taken into consideration in the internal audit framework review referred to above. Audits of safety management will continue to be undertaken in line with the Safety Management System (SMS).

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A safety internal audit is planned to commence in the first quarter of 2004 and will cover the SMS practices of 2003 and the compliance with procedures during 2003.

5.7 Performance Measurement and Analysis of Results

5.7.1 Maintenance Performance In 2003, 3637 Maintenance Work Orders were produced from Epic Energy’s omputerised Maintenance Management System (Maximo), made up as follows:

43 % Preventative Maintenance tasks; and 57 % Corrective Maintenance tasks.

5.7.2 Key Performance Indicators The following key performance indicators have previously been established to monitor performance of operations and maintenance activities on the Moomba to Adelaide Pipeline.

2003 Target 2003 Actual Comment

Cathodic Protection

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

97% 98.4% This result indicates that the target has been met

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

75% >98.4% This result indicates that the target has been met

Third Party Incident

Number of times pipeline is damaged

0 0

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

1 0

Unauthorised activity on easement 5 4 Third parties involved in these encroachments were all contacted and advised of the correct procedures before operating on the gas pipeline easement

Exposure of pipeline due to washout and wind erosion

6 2 The pipeline was exposed in the Balcooracana creek during 2003. A major task was undertaken and completed in 2003 to lower the pipe to prevent further reoccurrences of this issue.

The pipeline was exposed in the Wilpeena Creek crossing during 2003 and the cover was re-instated at the first available opportunity.

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Unplanned Gas Release

Number of Relief valve/vent discharges

5 2 An uncontrolled venting incident occurred at CS1 when the station was ESD’d for a fire system false alarm. At the time the station pressurizing valve was not closed allowing gas to vent to atmosphere after the ESD sequence had isolated the site. A rigorous investigation into this event has resulted in a station PLC control system change to ensure the station is not operated with a pressurizing valve in the open position.

An uncontrolled gas leakage occurred at CS7 when the station control gas 2 vent failed to close fully. This system was investigated and a design change is in place to modify the vent valves power gas supply to ensure there is always an adequate supply of gas to the operator to prevent a re-occurrence.

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

0 0

SCADA and Leak Detection

Reliability of SCADA 99.5% 99.67%

Environmental

1. Number of oil or other hydrocarbon spills

2 5 At CS1 3-5 litres of hydrocarbon product discharged when the station scrubber valve control system allowed the exhaust valve to be open when a blowdown valve was also open. This has resulted in a design change to the scrubber control PLC logic to prevent the exhaust valve being open when other valves are open.

At CS6 a GEA oil drain line was found to be leaking. The drain line has been repaired and no more leakage recorded

At CS4 100litres of diesel discharged to the ground during vehicle filling operations. Contaminated soil has been removed and replaced with clean soil. Personnel involved have been counseled.

Hydrocarbon spill occurred at the Osbourne meter station on two (2) occasions when an automatic dump valve failed to close. The dump valve has since been overhauled and the system made more robust to prevent reoccurrence.

2. Gas unaccounted for 0

3. Total methane discharged 34.5 TJ

5.8 Review and Improvement

5.8.1 Compliance Issues

Every endeavor is made to ensure that design, manufacture, construction, operation, maintenance and testing of all appropriate facilities are carried out in accordance with AS 2885. Any non-compliance identified is logged in Epic Energy’s Computerized Maintenance Management System (MAXIMO), where they are tracked to conclusion.

Significant items are reported to PIRSA.

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A Statement of Environmental Objectives (SEOs) for PL1 has been gazetted. The overall objectives of the SEO’s were achieved in that:

• Environmental damage from activities involved in operation of the Moomba to Adelaide Pipeline was minimized; • Appropriate consultative processes involving people directly affected

by regulated activities and the public generally were established; and • The public was protected from risks inherent in regulated activities

involving the Moomba to Adelaide Pipeline. The specific objectives declared in the SEO have been assessed in accordance with the Goal Attainment Scaling. The results of that assessment are provided in Annex A. 5.8.2 Actions to Rectify Non-Compliance In 2002, a non compliance was recorded in the SEO at item 2. This non compliance was in relation to pipeline cover removal due to flooding of creeks that cross the pipeline. In all cases, the pipeline cover was replaced as soon as was practical to do so after the landscape had dried out. In the case of Balcooracana Creek crossing, the pipeline was lowered to prevent further occurrences of pipeline exposure.

In the 2002, PIRSA commented on a section of the report that did not appear to be relevant namely section 4 and asked Epic Enegy to validate the relevance of this information. This issue was caused by the inclusion of information in section 4 that was meant solely for section 2.2.2. Training Epic Energy is committed to developing the skills of the employees to meet current and strategic needs. To meet this need, Epic Energy has engaged the services of a consulting company to develop a nationally accredited training program and maintain each individuals training records as required by AS2885. Individual’s success will encourage employees to want to learn. It is Epic Energy’s leadership team’s responsibility to encourage people to seek the balance of individual requirements against business requirements to meet Epic Energy’s duty of care to the employees. The focus needs to be setting individual training goals to develop skills in the frequently performed tasks, to enhance Epic Energy’s position in maintenance efficiency.

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To meet the objectives above the following training has been completed during the reporting period;

• Fatigue and Stress Management training delivered to Field Maintenance Officers and Superintendents.

• Senior First Aid re-certification training completed for all roster personnel. The training was conducted by St John Ambulance Australia to the level of senior first aid certificate in accordance with Epic Energy’s training policy.

• OH&S and Planning presentation undertaken for all SA FMO’s. • Confined Space and Raised Platform training conducted for all FMO’s. • 4WD training carried out for field roster personnel. • “Office Ergonomics” training held at Dry Creek. • CRS awareness training. • POMS awareness training. • “First 5 Minutes” – Fire Training. • SA Gas Quality Upgrade Meeting/Workshop.

6.0 CONCLUSIONS The maintenance and inspection programs carried out on the Moomba to Adelaide pipeline system in 2003, including a full line Intelligent Pig Survey, have indicated that the pipeline is in a sound condition and is capable of operating at the design parameters with no restrictions.

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7.0 ANNEX A - ASSESSMENT OF DECLARED OBJECTIVES

ANNEX A

2003 PL1 ANNUAL REPORT

DATED FEBRUARY 2004

ASSESSMENT OF DECLARED OBJECTIVES

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ASSESSMENT OF DECLARED OBJECTIVES

MAP Objectives and Assessment Criteria1 OBJECTIVE GOAL ACHIEVED/NOT

ACHIEVED COMMENTS

1.1 To minimise disturbance or damage to infrastructure / land use and remediate where disturbance cannot be avoided

Achieved Several unavoidable excavations were carried out on the right of way to accommodate foreign crossings by third parties occurred during the reporting period.

In addition to these excavations a section of the pipeline was replaced in the vicinity of CS4 at the Balcooracana creek crossing

1. To avoid unnecessary disturbance to 3rd party infrastructure, landholders or land use

1.2 To minimise disturbance to landholders

Achieved See comment above

2.1 To remediate erosion as a result of pipeline operations in a timely manner

Achieved The pipeline is patrolled routinely (immediately after any significant amounts of rainfall have occurred) and any erosion noted is repaired in a timely manner. During 2003 minor flood damage sustained at creek crossings has been rectified.

2. To maintain soil stability / integrity

2.2 To prevent soil inversion Achieved

3.1 To maintain regrowth of native vegetation on the easement to be consistent with surrounding area

Achieved The condition of the native vegetation within the pipeline easement is consistent with the surrounding vegetation.

3.2 To minimise additional clearing of native vegetation as part of operational activities

Achieved No Operational activities were conducted during the reporting period which would impact on the native vegetation

3.3 To ensure maintenance activities are planned and conducted in a manner that minimises impacts on native fauna

Achieved Maintenance activities during 2003 that may have had an impact on the native fauna were minimal and were conducted so that no impacts were felt.

3. To maintain native vegetation cover on the easement

3.4 To minimise disturbance of marine habitats

Achieved No leakages or spillage was reported or recorded in any area where a marine environment exists.

4. To prevent the spread of weeds and pathogens

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

Achieved The presence of weeds and pathogens on the easement was consistent with adjacent land.

Assessment criteria have been developed to be “black and white”. Professional judgement is required to assess whether non-compliance is minor or major. It is necessary to

ensure that adequate information is available to enable this judgment to be made.

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OBJECTIVE GOAL ACHIEVED/NOT ACHIEVED

COMMENTS

land

5. To minimise the impact of the pipeline operations on surface water resources

5.1 To maintain current surface drainage patterns

Achieved During the reporting period no alterations have been made to the landscape through which the pipeline traverses and therefore current drainage patterns have been maintained

6.1 To prevent spills occurring, and if they occur minimise their impact

Achieved While there were a number of minor hydrocarbon spills recorded at a number of the pipeline facilities during the reporting period all were quickly addressed and had no impact on the water resources in the area.

6.2 To remediate and monitor areas of known contamination arising from pipeline operations

Achieved Epic have employed Parsons Brinckerhoff to monitor a number of known areas of contamination and recommend remedial actions. All sites have been reviewed in 2003 and the recommended actions from the consultants have been implemented.

6.3 To prevent the spread of contamination where the easement intersects known contaminated sites

Achieved To the best of Epic Energy’s knowledge there are no known contaminated sites that the easement passes through.

6.4 To ensure that rubbish and waste material is disposed of in an appropriate manner.

Achieved All rubbish and waste material is removed from all of the pipelines facilities and the easement. This material is transported back to an approved refuse collection and disposal facility.

6.5 To prevent impacts as a result of hydrotest water and waste water (water bath heaters and washdown water) disposal

Achieved During the reporting period there were no operational requirements to dispose of any waste water.

6. To avoid land or water contamination

6.6 To ensure the safe and appropriate disposal of grey water (sullage, sewage)

Achieved All waste water at Epic Energy’s facilities is managed in accordance with statutory regulations and requirements.

7.1 To adequately protect public safety during normal operations

Achieved The use of approved work instructions, job hazard analysis, safe to work permits and experienced staff all contribute to Epic Energy meeting this objective.

7.2 To adequately protect public safety during maintenance

Achieved As for the comment in 7.1

7. To minimise the risk to public health and safety

7.3 To avoid fires associated with pipeline maintenance activities

Achieved No maintenance activities were performed during the reporting period that may have contributed to a fire situation.

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OBJECTIVE GOAL ACHIEVED/NOT ACHIEVED

COMMENTS

7.4 To prevent unauthorised activity on the easement that may adversely impact on the pipeline integrity

Achieved A Community awareness and landowner contact program along with routine patrols assists towards the goal of no authorised activities on the easement

8.1 To minimise the impact as a result of an emergency situation or incident

Achieved No emergency situations have been recorded or managed during the reporting period. .

8. Minimise impact of emergency situations

8.2 To restore any damage that may occur as a result of an emergency situation

Achieved No emergency situations have been recorded or managed during the reporting period

9. To minimise noise due to operations

9.1 To ensure operations comply with noise standards

Achieved While the operation of the pipeline compression equipment contributes to the overall background noise levels all sites meet laid down statutory requirements for noise pollution.

All maintenance tasks performed during the reporting period were of a nature that did not contribute to any increased levels of noise pollution.

10.1 To eliminate uncontrolled atmospheric emissions

Not Achieved Two uncontrolled gas emissions occurred during the reporting period. Both have been the subject of a system design review with changes implemented to prevent reoccurrences.

At CS1 a review of the station pressurization system control logic has been implemented to prevent the station pressurizing valve from remaining open under normal station operating conditions.

At CS7 a design review has recommended the installation of addition pressure regulation equipment to more positively control the station control gas two vent valve operator.

10. To minimise atmospheric emissions

10.2 To minimise the generation of dust.

Achieved No excavation work or other activities likely to generate dust have occurred during the reporting period.

11. To adequately protect cultural heritage sites and values during operations and maintenance

11.1 To ensure that identified cultural sites are not disturbed

Achieved An excavation of the Balcooracana creek crossing was required. Prior to this excavation commencing the traditional landowners were consulted and a site visit arranged whereby it was agreed that the site had minimal cultural significance and the excavation proceeded.

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

ANNEX B

2003 PL1 ANNUAL REPORT

DATED FEBRUARY 2004

PIPELINE CATHODIC PROTECTION DATA

AND ON/OFF POTENTIALS PROFILES

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Moomba to Adelaide GaslineFull Line "Off" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 1000.0

Kilometres

mV

Aug 03 Feb 03

% of potential greater than –850mv in winter (98.4 %) Length of pipe (781km)

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Bonython Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 1.5 3.2 4.1 4.6 5.2 5.4

Kilometres

mV

Mar 03 July 03

% of potential greater than –850mv in winter (100 %) Length of pipe (781km)

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Burra LateralFull Line "Off" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0

Kilometres

mV

Mar 03 Aug 03

% of potential greater than –850mv in winter (100 %) Length of pipe (14.9km)

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Port Pirie Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0 70.0 75.0 80.0Kilometres

mV

Mar 03 Aug 03

Whyalla Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

Kilometres

mV

Sep 03 Mar 03

% of potential greater than –850mv in winter (98.4 %) Length of pipe (87km)

% of potential greater than –850mv in winter (100 %) Length of pipe (77.8km)

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Hallet Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

0.00 0.72

Kilometres

mV

Aug 03 Mar 03

Peterborough Lateral Full Line "Off" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 1.8

Kilometres

mV

Aug 03 Mar 03

% of potential greater than –850mv in winter (100 %) Length of pipe (0.72km)

% of potential greater than –850mv in winter (100 %) Length of pipe (1.8km)

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Quarantine Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

0.00 0.14

Kilometres

mV

Aug 03 Feb 03

Amcor Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

0.0 2.3 4.6 7.0 9.7

Kilometres

mV

Aug 03 Feb 03

% of potential greater than –850mv in winter (100 %) Length of pipe (0.14km)

% of potential greater than –850mv in winter (100 %) Length of pipe (9.7km)

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Pelican Point Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 1.8 1.8

Kilometres

mV

Feb 03 Aug 03

Osborne LateralFull Line "On" Potential Surveys

500600700800900

100011001200130014001500

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

Kilometres

mV

Aug 03 Feb 03

% of potential greater than –850mv in winter (100 %) Length of pipe (1.1km)

% of potential greater than –850mv in winter (100 %) Length of pipe (1.8km)

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Dry Creek Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.00 0.32 0.50 0.72 0.80 0.96 1.12 1.23

Kilometres

mV

Aug 03 Feb 03

Taperoo LateralFull Line "Off" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00

Kilometres

mV

Aug 03 Feb 03

% of potential greater than –850mv in winter (100 %) Length of pipe (1.2km)

% of potential greater than –850mv in winter (100 %) Length of pipe (1.1km)

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Angaston Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0

Kilometres

mV

Aug 08 Feb 03

% of potential greater than –850mv in winter (93.9 %) Length of pipe (38.4km)

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Wasleys to Torrens Island loop lineFull Line "Off" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

730.0 735.0 740.0 745.0 750.0 755.0 760.0 765.0 770.0 775.0

Kilometres

mV

Aug 03 Feb 03

% of potential greater than –850mv in winter (97.7 %) Length of pipe (41.4km)