2005 annual report to primary industries and...

2005 ANNUAL REPORT

TO

PRIMARY INDUSTRIES AND

Pipeline License 6

Document Number NPSG-008-06-AR05

March 2006

RESOURCES SA (Petroleum)

On

Riverland Pipeline

TABLE OF CONTENTS

1.0 PURPOSE................................................................................................... 6

2.0 SCOPE ....................................................................................................... 6

3.0 PIPELINE INTEGRITY MANAGEMENT ........................................................ 8 3.1 Pipeline Inspections and Assessment.........................................................................................8

3.1.1 Leakage Surveys & Detection ....................................................................................................8 3.1.2 Pipe Wall Defect Assessment .....................................................................................................8 3.1.3 External Surfaces ........................................................................................................................8

3.2 Verification of Intelligent Pig Features: ...................................................................................8 3.3 Coatings ..........................................................................................................................................9 3.4 Pipeline Cathodic Protection ......................................................................................................9

3.4.1 Pipeline Potential Profiles...........................................................................................................9 3.4.2 CP Corrective Maintenance Work ............................................................................................10

3.5 Electrical and Instrumentation.................................................................................................10 3.5.1 Pressure Control and Protective Equipment .............................................................................10 3.5.2 Site Security..............................................................................................................................10 3.5.3 Structures ..................................................................................................................................10

3.6 Communications..........................................................................................................................10 3.7 Mechanical ...................................................................................................................................11 3.8 Ancillary Equipment ...................................................................................................................11 3.9 Pipeline Patrol and Audit Results, Analysis and Remedial Action Taken ..........................12

4.0 THREAT MITIGATION .............................................................................. 14 4.1 Surveillance .................................................................................................................................14 4.2 Maintenance Programs...............................................................................................................14 4.3 Marking .........................................................................................................................................14

4.3.1 Signage .....................................................................................................................................14 4.4 External Interference Prevention ............................................................................................15 4.5 Landholder Contacts ..................................................................................................................15

5.0 MANAGEMENT......................................................................................... 16 5.1 Risk Assessments .........................................................................................................................16

5.1.1 Risk Assessment .......................................................................................................................16 5.1.2 AS2885 Risk Assessment .........................................................................................................17

5.2 Management Systems .................................................................................................................17 5.2.1 Reports Generated in 2005 .......................................................................................................17 5.2.2 2005 One-off Activities ............................................................................................................17 5.2.3 2006 One-off Activities ............................................................................................................18 5.2.4 Volume of Product Transported................................................................................................18 5.2.5 Statement of Expenditure..........................................................................................................18 5.2.6 Contractual Issues .....................................................................................................................18

5.3 Emergency Response ..................................................................................................................18 5.3.1 Emergency Response Incidents ................................................................................................18 5.3.2 Emergency Response Exercises................................................................................................18

5.4 Reported Incidents .....................................................................................................................19 5.5 Audits ............................................................................................................................................19

5.5.1 Operational Audits ..........................................................................................................................19 5.5.2 Environmental Audits .....................................................................................................................20

5.6 Performance Measurement and Analysis of Results..............................................................21 5.6.1 Key Performance Indicators .....................................................................................................21

5.7 Review and Improvement..........................................................................................................22 5.7.1 Conformance Issues..................................................................................................................22

5.8 Integration Project .....................................................................................................................22

6.0 CONCLUSIONS......................................................................................... 23

7.0 ANNEX A : PIPELINE CATHODIC PROTECTION POTENTIALS PROFILES 24

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

FRCT Full Retail Contestability Telemetry

GEA Gas Engine Alternator

GSM Mobile Phone Protocol

GPRS Mobile Phone Protocol for Data Transmission

HAZOP Hazard Operability

HELM Heritage, Environment and Land Management

HSE Health, Safety and Environment

HV Hand Valve

KP Kilometer Point

LTI Lost Time Injury

MAOP Maximum Allowable Operating Pressure

MFG Manufacturing Defect

MLV Mainline Valve

MPR Minerals and Petroleum Resources

MTI Medical Treatment Injury

O&M Operations and Maintenance

OEAM Origin Energy Asset Management

PAV Polled Access Value

PII Pipeline Integrity International

PIRSA Primary Industry Resources of South Australia

PL Pipeline License

ROW Right Of Way

RTU Remote Telemetry Unit

SA South Australia

SCADA Supervisory Control and Data Acquisition

SCC Stress Corrosion Cracking

SES State Emergency Service

SMS Safety Management System

TJ Tera Joule

1.0 PURPOSE

This report is submitted in accordance with the requirements of South Australian Pipeline License 6 and regulatory requirements of the South Australian Petroleum Act 2000. OEAM operates and manages the Riverland Pipeline on behalf of Envestra in accordance with the legislative requirements in South Australia, all relevant Codes, standards and Pipeline Licence 6. As required by Pipeline License 6 an annual review of pipeline operations for the 2005 calendar year is provided herein.

2.0 SCOPE

The Riverland Pipeline System owned by Envestra Limited is contracted to Origin Energy Asset Management Limited (OEAM), National Pipelines Group to operate and maintain the assets. This report reviews operations carried out during 2005 and intended operations for 2006 and 2007. In accordance with the Petroleum Regulations 2000, a performance assessment is also provided with regard to the Statement of Environmental Objectives for the Riverland Pipeline. The design parameters for the Riverland Pipeline System are detailed in Table 1:

Table 1 - Riverland Pipeline System – Design Parameters

Pipeline Section

Angaston to Berri Sedan Junction to

Murray Bridge

Date Commissioned October 1994 December 1994

Length 167.0km 64.1km

Outside Diameter (OD) 114.3mm 114.3mm

Pipe Wall Thickness:

Normal:

Special crossings:

(e.g. – rivers, roads, etc)

Main Line Valves:

3.0mm

4.8mm

4.8mm

3.0mm

4.8mm

4.8mm

Steel Pipe Grade API 5L x 42 API 5L x 42

Pipe Jointing Method Mechanical Joints

(“Zaplock”)

Mechanical Joints

(“Zaplock”)

Maximum Allowable Operating Pressure (MAOP)

10,000 kPa 10,000 kPa

Main Pipe Co-extruded mastic and polyethylene system

(Yellow Jacket)

Field Joints Polyethylene/butylmastic tape system

Protective

Pipeline

Coating Special Crossings

Fusion Bonded Epoxy

(including 5km downstream of Angaston compressor station)

Mainline Valves 8 2

Scraper Stations Provision made Provision made

Meter Stations (major) 2 1

Corrosion protection Sacrificial Anodes

3.0 PIPELINE INTEGRITY MANAGEMENT

3.1 Pipeline Inspections and Assessment

All routine pipeline patrols and site inspections of above ground facilities were completed on the Riverland Pipeline System, in accordance with the Operations and Maintenance contract and AS2885.3.

3.1.1 Leakage Surveys & Detection

A dedicated leak detection survey was carried out on the Riverland Pipeline System during October 2005 and identified some minor valve leaks. These leaks have been investigated by OEAM maintenance crews and will be addressed during the next scheduled valve maintenance. Origin Energy has scheduled the next annual leak detection survey in the second half of 2006.

3.1.2 Pipe Wall Defect Assessment

OEAM conducted a DCVG survey on the pipeline system in July 2005 to determine if there are any coating defects on the external surface of the pipe. The results of this survey show that Riverland Pipeline is well protected from external corrosion by a good coating system, supplemented by cathodic protection.

3.1.3 External Surfaces

The pipeline system operating parameters are monitored and are relatively stable. OEAM has conducted an investigation on stress corrosion cracking immediately downstream of the Angaston compressor station. The level of susceptibility to Stress Corrosion Cracking for the Riverland Pipeline was identified as a “moderate” risk. However, the DCVG survey conducted in July 2005 did not detect any significant defect on the pipeline around the Angaston compressor station.

3.2 Verification of Intelligent Pig Features:

No intelligent pigging program was carried out during 2005. Cathodic Protection results, coating and pipe surface integrity checks and DCVG and survey have all shown positive results. There is however, a framework in place to accommodate pig launchers and receivers at dedicated locations for future pigging programs.

3.3 Coatings

OEAM has conducted a DCVG survey on the pipeline system in July 2005 to determine if there are any coating defects on the external surface of the pipe. It was found the pipeline has a high pipe to soil resistance with coating defects not considered significant when assessed in terms of the percentage reduction of applied cathodic protection.

OEAM will carryout approximately 5 dig-ups around the Swan Reach area where minor defects were found. Next scheduled DCVG survey will be carried out around July 2010.

3.4 Pipeline Cathodic Protection

To mitigate corrosion, the Riverland Pipeline is coated with a protective extruded butyl mastic and polyethylene coating system, which serves to isolate the external pipeline surfaces from corrosive elements in the surrounding environment. Field joints are coated with a polyethylene backed butyl mastic tape system. Secondary protection at coating holidays and imperfections is achieved by applying cathodic protection.

3.4.1 Pipeline Potential Profiles

The effectiveness of the cathodic protection system is monitored, by carrying out two full line potential surveys annually. A summary of the results of the most recent surveys is provided in the following paragraphs, with actual data provided in Annex A. It should be noted that in the dry season, some test points on the lateral show lower potentials than –850mV. As the system is galvanic, this is expected to happen, however, if the locations show low potentials in the wet season and the trend had occurred in the past, further investigations would be required, including inspection programs on the pipeline in the affected area. OEAM's Cathodic Protection Engineer has conducted an in-depth study to pinpoint the root cause of this problem. One of the recommended solutions was to install additional anodes in the areas where lower potentials are recorded. The anodes will be installed in the early part of 2006. The effect

of the additional anodes will be monitored during the half yearly CP surveys.

3.4.2 CP Corrective Maintenance Work

No Cathodic Protection corrective maintenance work was carried out during 2005.

3.5 Electrical and Instrumentation

Non-billing electrical/instrumentation equipment, such as pressure switches, battery systems, station pressure and temperature transmitters were maintained as part of the 6 monthly routine maintenance tasks.

3.5.1 Pressure Control and Protective Equipment

Routine 6 monthly maintenance inspections are carried out at all meter/gate stations on the Riverland Pipeline System. Tasks performed involve instrument/pilot gas maintenance, over-pressure isolation valve checks, remote valve operations, active/monitor pressure regulation maintenance and station pressure relief valve operational tests.

3.5.2 Site Security

Site security conforms with standard OEAM policies and is inspected in conjunction with routine patrols and maintenance activities. Minor acts of vandalism related to theft of chains on the old railway easement in Berri were recorded during routine patrols however, there were no major security breaches at facilities during 2005.

3.5.3 Structures

The Riverland Pipeline System incorporates minimal structures, however all were reported to be in sound condition.

3.6 Communications

The Riverland Pipeline communications system consists of King Fisher RTU with GPS/GPRS modem attached to the Fisher ROC RTU. The new RTUs on the Riverland sites are communicating to the Master Telemetry Unit at Brompton Gas control over GSM/GPRS. In March 2005 the Telstra private lines previously managed by Epic Energy were disconnected from all the sites except for Berri Gate and Murray Bridge gate stations since the compressor station will still be operated by EPIC and is dependant on the pressure levels from these sites.

Service level agreements (SLA) provide response and restoration times to attend site to resolve problems.

The communications system associated with the Riverland Pipeline proved reliable throughout 2005, with minimal maintenance requirements.

3.7 Mechanical

All scheduled routine maintenance tasks where completed on the Riverland Pipeline System during 2005. Maintenance tasks included; • Mainline Valve servicing, station dust filter inspections/replacement,

isolation valve operational tests and station Y-Strainer inspections and cleaning.

Examples of corrective mechanical maintenance conducted during 2005 involved : • Dust issues within the meter station pipe work which continued to cause

problems, such as strainer blockages at Murray Bridge and Metro Meats meter stations. The problem was eliminated with regular changes to filter elements.

• Active regulator faults were rectified at Murray Bridge, Metro Meats and Tarac meter stations

• Pressure vessel inspection and testing was carried out on filter vessels in accordance with AS/NZS 3788.

• Fire extinguisher inspection and maintenance, in accordance with

Australian Standards, is due to be carried out by a licensed contractor by February 2006.

3.8 Ancillary Equipment

The Angaston compressor unit is owned by Envestra and operated by Epic Energy. This equipment is directly associated with the Riverland Pipeline and it has an important bearing on maintaining pressures and supply to the system. Maintenance activities carried out on the Angaston Compressor unit during 2005 are detailed as follows.

• Routine 6 monthly instrumentation/electrical calibrations and inspections, covering pressure and temperature transmitters, station battery systems, compressor unit safety shutdown circuits, compressor unit ESD tests, station “Mainline Break” tests and hazardous area electrical inspections.

• Routine 6 monthly mechanical maintenance included oil analysis,

oil/filter changes, drive belt inspections, pressure relief valve testing, compressor unit/drive motor and aftercooler maintenance.

• All electrical solenoids installed on the isolation valves associated with the Angaston compressor unit were replaced. This task was carried out to increase the reliability of the compressor package, as the original solenoids were prone to failure on occasions.

• The compressor unit relief valve was replaced with an equivalent

unit. The replacement valve incorporates a remote mounted pilot assembly, to reduce the effects associated with vibration, as a result of reciprocating compressors. The original pilot was subject to internal wear, which resulted in a reduction on the specified set pressure and shutdown of the compressor unit.

Epic Energy will continue to operate and maintain the Angaston Compressor station under the Service Level Agreement with OEAM for a further 3 years.

Due to a rationalisation of operations by the “Berrivale Fruit Juice” group, the Berrivale Cannery meter station was isolated. The manual inlet and outlet isolation valves were closed and locked during June 2003. Site instrumentation and SCADA systems are no longer operational.

Skid Removed from Berri Cannery

All SCADA equipment and the skid has been removed from site by OEAM.

3.9 Pipeline Patrol and Audit Results, Analysis and Remedial Action Taken

As a result of routine patrol and audit activities, three areas of minor soil erosion on the pipeline easement were detected due to heavy rains. Erosion along the pipeline approximately 15 km from MLV1 was detected during aerial patrol in October 2005. This section is due for repair by March 2006 to prevent further erosion along the pipeline.

Minor erosion was detected during landowner consultations through property BER012. The damaged section was reported by the patrol officer and is due to be repaired by March 2006. Erosion was also detected at KP14 on the Murray Bridge lateral (near Cambray Creek) due to sediment run off caused by heavy rains. Remediation work is scheduled to occur during 2006. There has been only two issues relating to pipeline safety and pipeline depth of cover. Routine patrol identified a bogged tractor on property MB022 which had caused a deep trench over the pipeline. The Land owner has been contacted and repair work has been planned on this property. Unauthorised excavation near the pipeline was discovered during the monthly patrol near Berri Ltd meter station. Site was visited by Origin Energy personnel to carry out a damage assessment. Two dig-ups were made at the excavation site to asses the damage on the pipe.

No damage was found to the pipe or the coating. Depth of the pipe was measured to asses the reduction in depth of cover. It was found that soil was reinstated after the excavation, thus no reduction in depth of cover was found.

Issues relating to subdivided land at Swan Reach have been resolved. Land owner has been compensated for the grant of pipeline easement on the property. Land titles office has now registered Envestra’s under lease on this property. As mentioned in Section 4.5, no community awareness program was held in 2005. However, OEAM maintain regular landowner liaison and have in place an advertising program using local newspapers to generate awareness of the pipeline’s existence and communicate emergency contact information. In addition, regular pipeline surveillance and patrols are carried out by both OEAM staff and local contract representatives who live and work in these regional communities.

4.0 THREAT MITIGATION

4.1 Surveillance

All routine patrols were completed as scheduled on the Riverland Pipeline System throughout 2005, in accordance with AS2885, by Brompton based field maintenance officers and contractors based in the Berri and Murray Bridge regions. Additional patrols are carried out in conjunction with regular maintenance activities. Examples of items identified as part of routine patrols and site inspections included minor leaks from process compression fittings at above ground facilities and the re-instatement and continued monitoring of wombat holes within the pipeline easement. Ongoing signage replacements and the monitoring of third party activities in the pipeline vicinity assist to maintain pipeline safety and integrity.

4.2 Maintenance Programs

The maintenance program outlines the maintenance requirements to ensure the integrity and reliability of the pipeline and associated infrastructure.

The facility manager and maintenance supervisor schedules both preventative and corrective maintenance activities with appropriate allocation of personnel, spares, tooling and equipment.

Origin Energy's Pipelines group reviewed the Riverland Pipeline Systems maintenance plan and maintenance schedules in 2005 to ensure compliance with all regulatory obligations.

4.3 Marking

4.3.1 Signage

All signage on the Riverland Pipeline System is installed in accordance with AS2885 and maintains “Line of Sight”. The pipeline signage is monitored and replaced as required, as part of the routine patrol duties by National Pipelines Group Field Maintenance Officers or the permanent contractor based in the Berri and Murray Bridge regions. Actions arising from an Environmental Audit in April 2005 identified the need for weed clearance around the signage to improve “Line of Sight”. Weed poisoning plans will commence in early part of 2006.

Compound signage, providing contact details, emergency “Toll Free” numbers, site location and “HAZCHEM” details are installed at all facilities on the Riverland Pipeline System. This signage is maintained in conjunction with routine activities.

4.4 External Interference Prevention

4.4.1 Pipeline Location Service OEAM provides a free service to locate pipelines for which they are responsible. This service is primarily used by landowners / occupiers or contractors carrying out civil works in the vicinity of any of the pipelines administered by Origin Energy

Pipe location near Angaston.

All works carried out within the pipeline easement were conducted under OEAM’s "Permit to Work" System and constantly supervised to ensure the safety and integrity of the pipeline system and personnel.

4.5 Landholder Contacts

There are 83 landowners and occupiers along the Riverland Pipeline and laterals. A property owner contact scheme is in place to visit each owner or occupier annually. The Pipeline Patrol Officer visits each owner or occupier along the pipeline. Personal contact was made with all property owners from the Riverland Pipeline (including the Murray Bridge and Berri Laterals). The property owners are given a landowner pack containing pipeline safety awareness brochures, an Origin Energy pen and hat, a drinks holder, stickers and a Dial Before You brochure, pen, fridge magnet together with the Patrol Officer’s business card.

OEAM runs a Community Awareness Program by holding meetings with communities along the pipeline route. The target is to hold annual meetings with CFS, MFS, police, ambulance, SES, councils, contractors and various community members. In 2005, OEAM held no Community Awareness Program however the next program will be held in 2006. The focus of the presentation will provide background information on Origin Energy Asset Management, the properties of natural gas, information about underground pipelines, identifying hazards, what to do in the event of an emergency and conducting works on or near the easement.

5.0 MANAGEMENT

5.1 Risk Assessments

5.1.1 Risk Assessment

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, safety reviews, job hazard analysis, incident reports and investigations, audits and inspections together with the AS2885 risk assessment. Risk assessments are conducted to assess risk against set criteria, to demonstrate that risk reduction measures are as low as reasonably practicable. 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.

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.

5.1.2 AS2885 Risk Assessment

OEAM in conjunction with Epic Energy conducted a 5 yearly AS 2885.3 Risk Assessment Review of the Riverland Natural Gas Transmission Pipeline in August 2004. Next risk assessment is due in 2009. The risk assessment incorporated a location class review, which identified any changes to the land use and activities along the pipeline. It also included a review of the threats to the pipeline and the protective measures in place to mitigate any risks arising from these threats. If it was deemed there were not adequate safeguards for any particular threat, then the threat was subject to failure analysis to reduce the risk to ALARP. Majority of the actions identified have been closed out. OEAM is aiming to close out all remaining action items by the end of 2006

5.2 Management Systems

5.2.1 Reports Generated in 2005

The following reports were generated during 2005; • PL6 Annual Report for 2004 in March 2005, prepared by

OEAM and Epic Energy; • Environmental Audit report in September 2005, prepared

by OEAM; • Cathodic Protection Survey Report in August 2005,

prepared by OEAM. • DCVG Survey Report in July 2005, prepared by Gippsland

Cathodic Protection Services for OEAM. • Pipeline Leakage Survey Report in October 2005 by OEAM. • Emergency Exercise Report “Abyss”

5.2.2 2005 One-off Activities

• A Pipeline Coating and Protection Assessment Survey [DCVG] was completed in July 2005;

• Issues related to the hand-over of the Operations and Maintenance contract to OEAM for the Riverland Pipeline – commencing on 1 March 2005. An outstanding issue is the land division of Angaston compressor station. Envestra is working with Epic Energy to finalise the asset transfer.

5.2.3 2006 One-off Activities

• An Operations audit has been scheduled for April-May of 2006. This purpose of the audit is to ensure technical compliance with standards and codes and OEAM’s procedures and work instructions. The frequency of the Riverland Operational audit will be conducted in accordance with OEAM’s Transmission Pipelines manual (ie 3 yearly).

• 5 yearly maximum allowable operating pressure overpressure

review of all above ground facilities to be conducted in early 2006.

5.2.4 Volume of Product Transported

Approximately 690 TJ of natural gas was transported through the Riverland Pipeline System in 2005.

5.2.5 Statement of Expenditure

Commercial in confidence.

5.2.6 Contractual Issues

There were no contractual issues associated with the Riverland Pipeline System during 2005. Operation and Maintenance Agreement with Epic Energy has been terminated on the 1 March 2005

5.3 Emergency Response

Pipeline License 6 requires a practice drill to be conducted every two years on the Riverland Pipeline System. Recommendations and issues arising as a result of these exercises apply equally to the Riverland Pipeline System.

5.3.1 Emergency Response Incidents

There were no emergency response incidents to report for the Riverland Pipeline System during 2005.

5.3.2 Emergency Response Exercises

• Origin Energy carried out one Emergency response exercise on the Riverland Pipeline System. This was an exercise which involve mobilisation as detailed below in 2005.

Exercise “ABYSS”

An emergency response exercise was held on Friday 17th of June 2005; The Exercise involved mobilising personnel to a mock emergency site near Swan Reach SA. The exercise scenario was designed to assess the operational

difficulties associated with mobilising personnel and coordinating activities on a remote site. The exercise involved the emergency response team as outlined in the Emergency Response Plan for the Riverland Gas Pipeline. The emergency exercise was completed with positive outcomes for the given scenario. The adequacy of the emergency response plan was confirmed along with the competency of most personnel. The defect location was easily identified and response crews were swiftly mobilized. An engineering assessment of the defect was successfully performed on site and the resultant recommendations communicated to the emergency response team.

Some important areas for improvement and possible amendments to the emergency response plan were highlighted. Of particular note is the need to reinforce first on site training to OEAM personnel and to develop load shedding tables to indicate the magnitude and seasonality of significant customer loads. Both the load shedding tables and first on site training for OEAM personnel were completed in August 2005.

The functionality of the National Response Centre was highlighted for review as was the availability of road maps with sufficient detail for personnel to navigate to remote pipeline locations. Emergency response road maps have been made available to all OEAM personnel and National response centre functionality review was carried out in November 2005.

A report was prepared by OEAM summarizing the exercise outcomes and submitted to PIRSA during 2005.

5.4 Reported Incidents

There were no Health and Safety incidents reported on the Riverland Pipeline during 2005.

During 2005, there were no reports received relating to gas venting, low station sales pressures or customer complaints for the Riverland Pipeline System.

5.5 Audits

5.5.1 Operational Audits

While no operational audits were carried out on the Riverland Pipeline system during 2005 a management systems audit was undertaken by GPA of OEAM’s operation and maintenance of transmission pressure pipelines. The audit

found that generally, OEAM maintains adequate systems to ensure compliance and the safe and effective management of transmission pressure pipelines. A number of recommendations were made which are now being undertaken and completed.

5.5.2 Environmental Audits

During the year, monthly surveillance patrols were carried out along the Riverland Pipeline System and environmental issues were monitored as part of this activity.

An environmental audit was commissioned by the National Pipelines Group to assess the performance of Riverland Pipeline activities in accordance with the requirements of the Riverland Pipeline Licence (PL6) and environmental objectives specified in the Statement of Environmental Objectives (SEO) for the Riverland Pipeline (Dec 2003).

The environmental audit program comprised of an inspection of the Riverland pipeline and review of operational systems and programs associated with the ongoing monitoring and measurement of environmental objectives for the Riverland pipeline. Representatives from Origin Energy participated in both phases of the environmental audit on the 7 April 2005 and 19 to 21 April 2005, respectively.

Activities associated with the operation and maintenance of the Riverland pipeline comprising of the Angaston to Berri natural gas transmission pipeline and Murray Bridge natural gas lateral pipeline are generally being performed in accordance with the environmental objectives specified in the Statement of Environmental Objectives (SEO).

Recommendations for improvement in environmental performance of pipeline activities and environmental conditions were identified during the course of the audit. These relate to the management of overgrown vegetation affecting line of site, monitoring of sections prone to erosion and potential loss of cover and fauna activity along the easement. Environmental training and induction programs have also been identified to ensure that pipeline personnel and contractors are aware of environmental compliance requirements and environmental management procedures associated with managing pipelines easements.

The next annual environmental audit of the pipeline will be conducted during April 2006.

5.6 Performance Measurement and Analysis of Results

5.6.1 Key Performance Indicators

The following key performance indicators have previously been established to monitor performance of operations and maintenance activities on the Riverland Pipeline. Outlined below are the KPI results for 2005.

2005 target

2005 actual

2005 Comment

Cathodic Protection

1. Percentage of Pipeline that has an off pipe to soil potential greater than –850 mV (Winter)

95% 95% Met Target

2. Length of the pipeline protected to the AS 2885 level

95% 95% Met Target

Third Party Incident

1. Number of times pipeline is damaged

0 0 Met Target

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

0 2 Target not met Two reported incidents where a landowner bogged a tractor over the pipeline and an excavation on McKay Road behind Berri Ltd factory building.

3. Exposure of pipeline due to washout and wind erosion

0 0 Met Target

Unplanned Gas Releases

Number of Relief valve/vent discharges

0 0 Met Target

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

0 0 Met Target

Amount of gas discharged (m3)

500 0 Target achieved

SCADA

2005 target

2005 actual

2005 Comment

Reliability of SCADA 99.5%

85.0% Target not achieved. Losses of communications relate to Telstra faults, power & RTU failures and isolations during routine maintenance work.

5.7 Review and Improvement

Training that was undertaken by field maintenance officers directly responsible for maintaining the Riverland Pipeline System during 2005 is outlined below:

• Routine first Aid re-certification training; • Senior First aid re-certification training; • 4WD vehicle handling training; • Training targeted at Origin Energy's ‘First on site’ response Procedure;

5.7.1 Conformance Issues

There was no non conformance issues identified in the assessment criteria for the SEO other then the 2 stated in the quarterly SEO reports:

The first involved un-authorised earthworks in the vicinity of the Visy Board Lateral. OEAM subsequently advised the contractor of the appropriate procedures required prior to working near transmission pipelines. The second involved a landowner who whilst undertaking approved activities on the right of way, bogged his tractor over the pipeline. OEAM subsequently excavated the pipeline and confirmed that it had not been damaged.

5.8 Integration Project

The Operation and Maintenance agreement with Epic Energy was terminated on the 1 March 2005.

A site visit was conducted in mid January 2005 to finalise some outstanding issues with the Angaston Compressor Station. This was not a critical issue as Epic

Energy agreed to operate the compressor under a service level agreement. The SCADA information from the compressor station is set up for viewing only for OEAM as Epic Energy has the operational responsibility.

By the End of January 2005 OEAM was able to receive alarms, and monitor and operate Meter stations from the Brompton Gas Control Room. However Epic Energy agreed to keep the data lines from the meter stations live until the 1 March 2005.

6.0 CONCLUSIONS

Pipeline coating inspections, cathodic protection monitoring, along with routine maintenance and inspection programs carried out on the Riverland Pipeline System during 2005, indicate that the pipeline is in sound condition and is capable of operating at set parameters with no restrictions.

7.0 ANNEX A : PIPELINE CATHODIC PROTECTION POTENTIALS PROFILES

Potential Summary For Berri Lateral August 2005

Potential August 2005

Date Test Point

Number Location

On Potential

Under Value

Measurment Type

August-05 1 Angaston M/S outlet (D/S) - Berri Lateral -1690

-850 Spot

August-05 2 Zn -1028

-850 Spot

August-05 3 Crennis Mines Rd -1028

-850 Spot

August-05 4 Mg anode (Long Gully Rd) -908

-850 Spot

August-05 5 -904

-850 Spot

August-05 6 Mg anode -956

-850 Spot

August-05 7 -901

-850 Spot

August-05 8 Lindsay Park Stud (In driveway) -1012

-850 Spot

August-05 9 Mg anode Collingrove Rd -991

-850 Spot

August-05 10 Bitumen Rd -991

-850 Spot

August-05 11 Mitchells Paddock -959

-850 Spot

August-05 12 Mg anode Mt Eagle Rd -1023

-850 Spot

August-05 13 Henshke Rd -969

-850 Spot

August-05 14 White Gates Rd -933

-850 Spot

August-05 15 Mg anode - Do not enter this property -934

-850 Spot

August-05 16 without first contacting owner -918

-850 Spot

August-05 17 Joe Keynes, phone 085648235 -939

-850 Spot

August-05 18 Check if tracks are not too wet

-850 Spot

August-05 19 Joe Keynes house is located at -965

-850 Spot

August-05 20 farm property at Keyneton, off -893

-850 Spot

August-05 21 main Keyneton to Sedan Rd -941

-850 Spot

August-05 22 SA water pipe -1032

-850 Spot

August-05 23 MLV 2 Sedan Junction - Murray Bridge -936

-850 Spot

August-05 24 Mg anode Old house -905

-850 Spot

August-05 25 Exits paddock -914 -850 Spot

August-05 26 -915

-850 Spot

August-05 27 -925

-850 Spot

August-05 28 Bitumen Rd -949

-850 Spot

August-05 29 Red tape on tree -937

-850 Spot

August-05 30 Cross Rd -914

-850 Spot

August-05 31 -933

-850 Spot


-850 Spot

August-05 33 -919

-850 Spot

August-05 34 -917

-850 Spot

August-05 35 -934

-850 Spot

August-05 36 -969

-850 Spot

August-05 37 -946

-850 Spot

August-05 38 -923

-850 Spot

August-05 39 -945

-850 Spot

August-05 40 -880

-850 Spot

August-05 41 -893

-850 Spot

August-05 42 -874

-850 Spot

August-05 43 -921

-850 Spot

August-05 44 -871

-850 Spot

August-05 45 -931

-850 Spot

August-05 46 -954

-850 Spot

August-05 47 MLV 3 -972

-850 Spot

August-05 48 Zn earthing -967

-850 Spot

August-05 49 -884

-850 Spot

August-05 50 -937

-850 Spot

August-05 51 River bank - D/S side -915

-850 Spot

August-05 52 MLV 4 -962

-850 Spot


-850 Spot

August-05 54 -885

-850 Spot

August-05 55 -923

-850 Spot

August-05 56 -892

-850 Spot

August-05 57 -904

-850 Spot

August-05 58 -913 -850 Spot

August-05 59 -937

-850 Spot

August-05 60 -927

-850 Spot

August-05 61 -957

-850 Spot

August-05 62 -906

-850 Spot

August-05 63 -885

-850 Spot

August-05 64 -916

-850 Spot

August-05 65 -906

-850 Spot

August-05 66 -903

-850 Spot

August-05 67 -939

-850 Spot

August-05 68 -848

-850 Spot

August-05 69 -832

-850 Spot

August-05 70

-850 Spot

August-05 71

-850 Spot

August-05 72 -936

-850 Spot

August-05 73 -938

-850 Spot

August-05 74 -924

-850 Spot

August-05 75 -941

-850 Spot

August-05 76 -912

-850 Spot


-850 Spot

August-05 78 -909

-850 Spot

August-05 79 -927

-850 Spot

August-05 80 -919

-850 Spot

August-05 81 -913

-850 Spot

August-05 82 -929

-850 Spot

August-05 83 -926

-850 Spot

August-05 84 -970

-850 Spot

August-05 85 MLV 5 Mg anode -995

-850 Spot

August-05 86 Zn earthing (near MLV) -1015

-850 Spot

August-05 87 -988

-850 Spot

August-05 88 -1004

-850 Spot

August-05 89 -1049

-850 Spot

August-05 90 -956

-850 Spot

August-05 91 -965 -850 Spot

August-05 92 -1012

-850 Spot

August-05 93 -1038

-850 Spot

August-05 94 -993

-850 Spot

August-05 95 -1000

-850 Spot

August-05 96

-850 Spot

August-05 97 -963

-850 Spot

August-05 98 -961

-850 Spot

August-05 99 -985

-850 Spot

August-05 100 -891

-850 Spot

August-05 101

-850 Spot

August-05 102 -902

-850 Spot

August-05 103 -991

-850 Spot

August-05 104 -989

-850 Spot

August-05 105 MLV 6 -977

-850 Spot


-850 Spot

August-05 107 River bank - U/S -1004

-850 Spot


-850 Spot

August-05 109 -1011

-850 Spot

August-05 110 MLV 7 - track to rubbish dump -997

-850 Spot

August-05 111 -993

-850 Spot

August-05 112 -967

-850 Spot

August-05 113 -989

-850 Spot


-850 Spot

August-05 115 -948

-850 Spot

August-05 116 -945

-850 Spot

August-05 117 Cnr Rumball & Puddletown Rd -954

-850 Spot


-850 Spot

August-05 119 Cnr Dalziell & Mander Rd - Zn earthing -930

-850 Spot

August-05 120 Old TP -910

-850 Spot

August-05 121 Spendiff Rd - Zn earthing -949

-850 Spot

August-05 122 Spendiff Rd - Zn earthing -934

-850 Spot


-850 Spot

August-05 124 Mg anode - Dalziell Rd -952 -850 Spot

August-05 125 Berri M/S - MLV 8 -898

-850 Spot

August-05 126 Berri M/S - Inlet U/S -893

-850 Spot

Potential Summary and Graph for Berri LateralAugust 2005

-2000

-1900

-1800

-1700

-1600

-1500

-1400

-1300

-1200

-1100

-1000

-900

-800

-700

-600

-500

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 103 106 109 112 115 118 121 124

Testing Location

mV

nega

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to C

u/C

uSO

4 re

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Potential August 2005 -850

Potential Summary For Murray Bridge Lateral August 2005 Potential August 2005

Date

Test Point

Number Location

On Potential

Under Value

Measurment Type

August-05 1 MLV 1 Sedan Junction -936

-850 Spot


-850 Spot

August-05 3 -890

-850 Spot

August-05 4 -872

-850 Spot

August-05 5 -912

-850 Spot

August-05 6 -927

-850 Spot

August-05 7 -910

-850 Spot

August-05 8 -922

-850 Spot

August-05 9 -951

-850 Spot

August-05 10 Enter & exit gate (east) -981

-850 Spot

August-05 11 pipe leaves paddock -985

-850 Spot

August-05 12 -957

-850 Spot


-850 Spot

August-05 14 -915

-850 Spot

August-05 15 -964

-850 Spot

August-05 16 -951

-850 Spot

August-05 17 -987

-850 Spot

August-05 18 -993

-850 Spot

August-05 19 Enter & exit gate -993

-850 Spot

August-05 20 Enter & exit gate by KP 23.3 -1010

-850 Spot

August-05 21 Mg anode- NO ENTRY (owner request)

-850 Spot

August-05 22 -1010

-850 Spot

August-05 23 -1000

-850 Spot

August-05 24 -1020

-850 Spot


-850 Spot

August-05 26 -1010

-850 Spot

August-05 27 -1010

-850 Spot

August-05 28 -1020

-850 Spot


-850 Spot

August-05 30 Adjacent Mannum - Whyalla pipeline -1111

-850 Spot

August-05 31 Pfeiffer Rd - Zn earthing -988 -850 Spot


-850 Spot

August-05 33 -988

-850 Spot

August-05 34 Pfeiffer Rd - Zn earthing -988

-850 Spot


-850 Spot

August-05 36 -1000

-850 Spot

August-05 37 Mg anode: Reedy Creek -980

-850 Spot

August-05 38 Mannum Murray Bridge Rd -985

-850 Spot

August-05 39 -988

-850 Spot

August-05 40 -974

-850 Spot


-850 Spot


-850 Spot

August-05 43 -978

-850 Spot

August-05 44 2 gates, 2nd fence line -978

-850 Spot

August-05 45 gate opposite KP 53 Ring Grant for -983

-850 Spot

August-05 46 ride into his property phone no.

-850 Spot

August-05 47 08 8532 3325 -935

-850 Spot

August-05 48 Wilkin Rd - Zn earthing -921

-850 Spot


-850 Spot

August-05 50 Stone fence road -958

-850 Spot

August-05 51 -988

-850 Spot

August-05 52 Via gate on Bigmore Rd -952

-850 Spot

August-05 53 Bigmore Rd - Zn earthing -979

-850 Spot


-850 Spot

August-05 55 Nilpeena Rd - Zn earthing -978

-850 Spot

August-05 56 Old TP - Mg anode -977

-850 Spot

August-05 57 Murray Bridge M/S Inlet (U/S) -893

-850 Spot

Potential Summary and Graph for Murray Bridge LateralAugust 2005

-2000

-1900

-1800

-1700

-1600

-1500

-1400

-1300

-1200

-1100

-1000

-900

-800

-700

-600

-500

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

Testing Location

mV

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tive

to C

u/C

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4 re

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cell


Potential Summary For Tooravale - Visy Lateral August 2005

Potential August 2005

Date

Test Point

Number Location

On Potential

Under Value

Measurment Type

August-05 1 Berrivale Orchards M/S Outlet D/S -1037

-850 Spot

August-05 2 VisyBoard M/S - Inlet U/S -967

-850 Spot

August-05 3 Test post along Tooravale Rd -917

-850 Spot

August-05 4 Tooravale M/S- Inlet U/S -996

-850 Spot

Potential Summary and Graph for Tooravale & Visy LateralAugust 2005

-2000

-1900

-1800

-1700

-1600

-1500

-1400

-1300

-1200

-1100

-1000

-900

-800

-700

-600

-500

1 2 3 4

Testing Location

mV

nega

tive

to C

u/C

uSO

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cell


Potential Summary For National Dairies Lateral August 2005 Potential August 2005

Date

Test Point

Number Location

On Potential

Under Value

Measurment Type

August-05 1 Murray Bridge M/S Outlet (D/S) -995 -850 Spot

August-05 2 Zn earthing -999 -850 Spot

August-05 3 Zn earthing -928 -850 Spot

August-05 4 National Dairies M/S Inlet (U/S) -886 -850 Spot

Potential Summary and Graph for National Dairies LateralAugust 2005

-2000

-1900

-1800

-1700

-1600

-1500

-1400

-1300

-1200

-1100

-1000

-900

-800

-700

-600

-500

1 2 3 4

Testing Location

mV

nega

tive

to C

u/C

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cell


8.0 ANNEX B : ASSESSMENT OF DECLARED OBJECTIVES

ANNEX B

2005 PL6 ANNUAL REPORT

DATED MARCH 2006

ASSESSMENT OF DECLARED OBJECTIVES

Riverland Objectives and Assessment Criteria1

OBJECTIVE GOALS ACHIEVED/NOT ACHIEVED COMMENT 1. To promote and maintain vegetation in accordance with surroundings.

To encourage regrowth of native grasses and shrubs along the right-of-way, (i.e. – not in farmland used for cropping or pasture).

To ensure environmental weeds and pathogens along the right-of-way are managed in a manner consistent with adjoining land.

To manage vegetation regrowth along the right-of-way, so as not to restrict access (our access not third party access) or to incur damage to the pipeline infrastructure.

To monitor and manage Branched Broomrape (Orobanche ramose) within defined containment area along Murray Bridge lateral pipeline. To ensure that pipeline operations do not impinge upon existing native fauna habitats.

Achieved

Achieved

Achieved

Achieved

Achieved

Native vegetation regrowth (grasses, shrubs & trees) along easement is typical of adjoining areas.

No new weed infestations as a result of pipeline operations. Minimal spread of weeds along the pipeline easement.

Vegetation trimmed rather than cleared where possible.

No identified spread along pipeline easement as a result of operations & maintenance activities. No landholder complaints or non-compliances with Code of Control for Broomrape in the course of pipeline operations.

Native fauna habitats along easement are typical of adjoining areas.

1 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 judgement to be made.

OBJECTIVE GOALS ACHIEVED/NOT ACHIEVED COMMENT 2. To conserve the original state of the soil.

To minimise the likelihood of erosion or subsidence occurring along the right-of-way.

To manage soil rehabilitation areas in an appropriate manner.

Achieved

Achieved

Soil level and/or subsidence are consistent with the surrounding area.

Rehabilitation areas support regrowth consistent with the surrounding area.

3. To promote and maintain water drainage patterns where it is not detrimental to the pipeline.

To ensure that operation and maintenance activities do not give rise to pollution of watercourses

To ensure that there is no evidence of altered drainage patterns, unless required to protect the pipeline from wash away

Achieved

Achieved

OEAM activities have not resulted in pollution to natural watercourses.

No evidence of altered drainage patterns.

4. To minimise uncontrolled atmospheric emissions.

To limit uncontrolled emissions to atmosphere.

To minimise dust generation.

Achieved

Achieved

No unintentional or uncontrolled gas emissions ocurred.

No uncontrolled dust emissions.

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

To minimise disturbance to land use and damage to infrastructure.

To inform landholders of likely land use disturbance as a direct result of operations.

Achieved

Achieved

No disturbance to land use during the period

Landholders are notified of any pipeline activities likely to impinge on landholders. No activities of this nature during 2005.

6. To minimise risks to public and third party health and

No occupational health, safety and welfare incident or accidents involving public and other third

Achieved

No incidents or accidents as a result of failure of OEAM’s procedures and practices.

OBJECTIVE GOALS ACHIEVED/NOT ACHIEVED COMMENT safety.

parties occur during pipeline operations.

To prevent third party access on the pipeline easement.

To adequately protect the public during routine maintenance operations. To avoid fires during routine operations.

Not Achieved

Achieved

Achieved

2 incidents were reported which were not strictly considered third party access. The first involved un-authorised earthworks in the vicinity of the Visy Board Lateral. The second involved a landowner whilst undertaking approved activities on the right of way, bogged his tractor over the pipeline. OEAM subsequently excavated the pipeline and confirmed there had been no damage to the pipeline

No issues occurred during routine maintenance No fire outbreaks arising from pipeline operations.

7. To minimise noise due to operations.

To ensure that operations comply with noise standards and where possible ensure landowners are not disturbed.

Achieved No unreasonable/unresolved noise related complaints from landholders or third parties

8. To manage all operational wastes in an appropriate manner.

To ensure that all wastes are removed from the site and, reused, recycled or appropriately disposed.

Achieved Wastes are managed appropriately

OBJECTIVE GOALS ACHIEVED/NOT ACHIEVED COMMENT 9. To appropriately manage cultural heritage sites during pipeline operations and maintenance activities.

To manage Aboriginal and European heritage sites in accordance with prescribed procedures so they are not disturbed.

Achieved No impacts to known heritage sites.

10. To minimize the risk of loss of supply to consumers.

To minimise the potential for significant disruption of gas supply to customers where possible.

Achieved No interruption to supply as a result of activities within OEAM’s control.

2005 annual report to primary industries and...

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