2011 annual report pl1 moomba - adelaide pipeline final copy

2011 Annual Report

MOOMBA TO ADELAIDE NATURAL GAS

PIPELINE

DMITRE Confidential Internal use only

Pipeline Licence 1

Document Number S-1-101-AR-G-012

2011 PL1 Annual Report

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TABLE OF CONTENTS 1 PURPOSE ............................................................................................................ 4

2 SCOPE ................................................................................................................. 4

3 TECHNICAL INFORMATION ............................................................................... 4

4 OPERATIONAL & MAINTENANCE ACTIVITIES - 2011 ...................................... 8

5 INCIDENT REPORTING .................................................................................... 20

6 LAND MANAGEMENT ....................................................................................... 24

7 ENVIRONMENTAL MANAGEMENT .................................................................. 24

8 EMERGENCY RESPONSE ................................................................................ 26

9 REGULATORY COMPLIANCE .......................................................................... 26

10 RISK MANAGEMENT ..................................................................................... 27

11 MANAGEMENT SYSTEM AUDITS ................................................................. 27

12 REPORTS ISSUED DURING THE 2011 LICENCE YEAR ............................. 28

13 VOLUME OF PRODUCT TRANSPORTED .................................................... 29

14 PROPOSED OPERATIONAL ACTIVITIES FOR 2012 .................................... 29

15 STATEMENT OF EXPENDITURE .................................................................. 30

16 KEY PERFORMANCE INDICATORS ............................................................. 30

17 CONCLUSION ................................................................................................ 31

Appendix A – SEO Assessment of Declared Objectives ........................................... 32


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LIST OF ABBREVIATIONS

ALARP As Low As Reasonably Practical

AS2885 Australian Standard 2885 Pipelines - Gas and Liquid Petroleum AVT Accuracy Verification Test CDP Corrosion Detection Pig CFS Country Fire Service CMMS Computerized Maintenance Management System (MAXIMO) CP Cathodic Protection CPU Cathodic Protection Unit CS 1-7 Compressor stations 1, 2, 3, 5, 6 & 7 Cu/CuSO4 Copper/Copper Sulphate DCGV Direct Current Voltage Gradient DNV Det Norske Veritas EGP Electronic Geometry Pig EMS Environmental Management System ERE Emergency Response Exercise ESD Emergency Shut Down GEA Gas Engine Alternator GPS Geographical Positioning System GUF Gas unaccounted for HAZOP Hazard Operability HELM Heritage, Environment and Land Management HSE Health, Safety and Environment ILI In line Inspection LMS Land Management System MAPS Moomba to Adelaide Pipeline System MFS Metropolitan Fire Service MLV Mainline Valve PIRSA Primary Industries and Resources of South Australia PL1 Pipeline Licence 1 POMS Pipeline Operating Management System ROW Right of Way RTU Remote Terminal Unit SCADA Supervisory Control and Data Acquisition SEO Statement of Environmental Objectives SES State Emergency Service SMS Safety Management System SRB Sulphate Reducing Bacteria SWER Single Wire Earth Return TI Torrens Island Power Station TJ Tera Joule UHF Ultra High Frequency VHF Very High Frequency


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1 PURPOSE

This report is submitted in accordance with the requirements of Pipeline Licence 1 and the South Australian Petroleum and Geothermal Energy Regulations 2000.

2 SCOPE

The Moomba to Adelaide natural gas transmission pipeline system is owned, operated and maintained by Epic Energy. This report reviews operations carried out during 2011 and the intended operations for 2012. In accordance with the Petroleum and Geothermal Energy Regulations a performance assessment is also provided with regard to the Statement of Environmental Objectives PL 1.

3 TECHNICAL INFORMATION

Table 1 summarizes the technical aspects of the Moomba to Adelaide natural gas transportation pipeline and Figure 1 shows the pipeline location and layout

Table 1 - Moomba to Adelaide pipeline technical data [PL 1]

Date Constructed 1967 / 68

Date Commissioned 1969

Length 781km

External Diameter 559mm

Wall Thickness:- - Normal - Special Crossings (rivers, roads etc.) - MLV

7.92 mm 9.50mm 9.50mm

Pipe Grade API 5L X52

MAOP Moomba - KP731 KP731 – Torrens Island

Voluntary reduction to 6500 kPa Voluntary reduction to 6100 kPa

Coating Plicoflex Tape

Depth of cover Nominal 750 mm 1200mm at road, rail and creek crossings

Main Line Valves Cameron Ball valves (30 in total)

Actuators (Remote activation) Shafer gas over oil valve actuators(11 in total)

Actuators (Local activation) 19 Manual gear type operators

Fluid Natural Gas

Mainline Compressor & scraper stations 7 compressor stations installed on mainline. Each site has two gas turbine powered centrifugal compressor packages.

Lateral compressor stations 2 compressor units installed on the lateral pipelines located at Whyte Yarcowie and Wasleys

Meter Stations 29

Corrosion Protection Impressed current CP system 116 transformer rectifier units installed

SCADA system Digital microwave link from Moomba to Adelaide with VHF radio coverage for voice communication

Table 2 summarizes the technical aspects of the laterals and looping systems on the mainline pipeline system.


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Table 2 – Laterals and Looping on Mainline

(Refer to key below)

Item A B C D E F G H I

Date Constructed 2000 1986 1972 1975-1976 1974 1984 1969 2000 2001

Date Commissioned

2000 1986 1972 1976 1974 1984 1969 2000 2002

Length (Kms) CS1 5.2 km , CS2 10 km, CS3 13.3 km, CS

4 6 km ( Total 34.4 km)

42 1.9 77.8 15 5.5 38.7 River – 0.855 Km , Land –

1.007 Km 114.3

External Diameter (mm)

600 508 88.9 168.3 88.9 219.1 219 356 219

Fluid Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas

Wall Thickness (mm)

Loops 1 to 3 – 7.14, Loop 4 – 8.74

9.0 4.78 4.37 4.78 4.77 4.78 7.1 4.00 & 4.78

Pipe Grade API 5L X65 API 5L X60 ASTM A53 Gr B ASTM A53 Gr B ASTM A53 Gr B API 5L X42 API 5L X42 API 5L X52 API 5L X42

MAOP ( Kpa) Loops 1 to 3 7322 , Loop 4 8740

7322 690 8240 7322 7322 7322 9600 9930

Coating

FBE FBE Armathene Pilcoflex PVC Yellow Jacket FBE Pilcoflex PVC

River – 400 micron, FBE

plus powercrete, land – 400

micron

Yellow jacket

Main Line Valves 6 3 1 1

Actuators (Remote activation)

4

Actuators (Local activation)

Two manual gear

type actuators

Compressor stations

1 (Wasley) 1 (Whyte Yarcowie)

Meter Stations 5 1 1 1 1 3 1 1

Key: A – Main pipeline loop sections F- Mintaro Lateral B – Wasley to Adelaide Loop Line G – Angaston Lateral C - Peterborough Lateral H – Pelican Point Lateral D - Port Pirie Lateral I – Amcor lateral E – Burra lateral


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Table 2 – Laterals and Looping on Mainline

(Refer to key below)

Item J K L M N O P Q R S

Date Constructed 1998 1970-71 1969 1988-1989 1988-1989 1972 1988-1989 2001 1972 2001

Date Commissioned 1998 1971 1969 1989 1989 1972 1989 2002 1972 2001

Length (Kms) River – 0.852 , Land 1-

1.31, Land 2 – 0.188

1.3 1.2 5.5 87.8 1.6 11.5 0.14 0.35

0.74

External Diameter (mm)

River – 273.1 , Land 1-

273.1, Land 2 – 219.1

323.9 323.9 114.3 219.1 114.3 114.3 219 89 219

Fluid Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas

Natural Gas

Wall Thickness (mm) River – 6.4 , Land 1- 9.2, Land 2 – 4.0

9.53 9.53

4.1 to KP 5.43, 4.8 KP 5.43 to Port Bonython

4.3 4.78 4.3 8.2 4.78 8.2

Pipe Grade API 5L X42 API 5L X42 API 5L X42 API 5L X42 API 5L X52

ASTM A53 Gr B

API 5L X52 API 5L X42 ASTM A53

Gr B API 5L

X42

MAOP (Kpa) 10000 2067 7322 7322 10130 1379 10130 7322 1379 7322

Coating River FBE concrete

coated, Land Yellow Jacket

Yellow Jacket

Double wrap coal tar epoxy

concrete coated

Polyken 2 layer tape

Polyken 2 layer tape

Armathene

Polyken 2 layer tape 25 mm concrete

coating at crossings

Yellow jacket

Armahene Yellow jacket

Main Line Valves 4 1 1

Actuators (Remote activation)

Actuators (Local activation)

Compressor stations

Meter Stations 1 2 1 1 3 1 1 1

Key: J – Osborne Lateral O- Nuroppta Lateral K- Dry Creek Lateral P – Whyalla Lateral Loop L – Taperoo Lateral Q- Quarantine Lateral M - Port Bonython Lateral R- Tarac Lateral N - Whyalla Lateral S – Hallett Lateral


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Figure 1 - Moomba to Adelaide Pipeline System


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4 OPERATIONAL & MAINTENANCE ACTIVITIES - 2011

4.1 Risk Management Review

A review of the AS 2885 Risk Assessment was carried out and a final report developed in 2007. As part of this risk assessment review, additional requirements of the Draft AS 2885.1 DR 04561] rev

3 was taken into consideration. The review of the risk assessment found that in most cases the workshop team considered that the protection measures in place reduced the risks of the identified threats to acceptable levels. Where there was doubt, or further investigation was deemed necessary, an action was raised. A total of 715 recommended actions were made by the workshop team. All risks ranked as a high in priority or as significant have been closed out with the remaining outstanding actions continuing to be addressed. A total of 656 actions, representing 92% of all actions have been completed, with a program in place to continue working towards completing the remaining actions. The next AS 2885 Safety Management System review is due for completion in the 2nd quarter 2012.

4.2 Training

Epic Energy is committed to developing the skills of all employees and contractors to meet the operational and technical needs of its business. During 2011 staff training was conducted in-house using a number of techniques which included training courses developed specifically for Epic Energy and delivered using self paced modules or as a group presentation using either a training service provider or suitably skilled Epic Energy staff In addition to internal training, staff attended a range of external courses, conferences and seminars selected to further enhance their knowledge of the natural gas and liquid hydrocarbon pipeline transmission industry.

The range of training staff attended during 2011 included; "A" Grade Electrical Worker's Licence

"B" Grade Electrical Worker's Licence

2011/2012 Taxation & Payroll Seminar

2WD Defensive Driving

4WD Operate Light Vehicle PMASUP236A

ACCC 2011 Regulatory Conference

Administrative Assistants Conference

Advanced OHS Risk Management

Allison Turbine Controls - Operation & Maintenance Training course

APIA - Pipeline Operators Group Seminar

Apply First Aid

AS 2885.3 Pipelines Gas & Liquid Petroleum - O & M

AS2885 Introduction to AS2885 and the Australian Pipeline Industry

Basic Hazop Training

Bobcat Licence


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Business Communication Essentials

Business Writting Skills

C.A Business Forum 2011

Carbon Price Forum: Energy & Resources

Cathodic Protection Monitoring

Coal Seam Methane

Confined Space Awareness

CPR

Cultural Heritage & GMB Mobile Training.

DBP Induction

Defect Assessment in Pipeline

Drugs & Alcohol

Dry Creek Office Induction

Duties of Officers, Managers & other workers under the WHS Model Act

Earthing, Lighting and Surge Protection Forum

Emergency Pipeline Exercise – SA

Environmental Training 2010

Epic Field introduction and Familiarazation

Equal Employment Opportunity, Discrimination, Harassment & Bullying 2010

Equal Opportunity Act 2010: Briefing

Erosion & Sediment Control for Linear Easements & the Installation of Services

Excavation of Pipelines

Forklift Operator Certificate of Competency LF

Foundation of Directorship : Governance for New Directors

Fundamentals of the Oil & Gas Industry

Gas Detection - Santos (Epic SA & Qld)

GST Fundamental 2011

HAZOP Leader

Health & Safety Representative Level 1 - SA

Heat Stress - Santos (Epic SA & Qld)

HSE Committee Structure and Meeting Module

HSE New Starter Intro

ICam - Incident investigation

Introduction to Risk Management - AS/NZS ISO 31000:2009

Introduction to the Four Rooms of Change Forum

Job Hazard Analysis

Land Access Code – QLD

LMS Computer Training

Low Voltage Rescue

Lubrication

Make your Meetings a Highlight, Not a Chore Forum

Manual Handling

Maximo 7.1 – FMO

Melbourne Office Induction

Mercury Awareness

Model WHS Laws - what the whole package provides

Multiple Duty Holders under the WHS Model Law

NEBOSH International Technical Certificate in Oil & Gas Operational Safety

Nipping Problems in the bud and complaint handling

Operate a fork lift truck


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Operations Field Induction

Payroll News Conference

Penrice Induction Online

Permit To Work System / Refresher

Personnel Movement Tracking

Pipe Location - General Epic Module

Pipeline Locator - Metrotech Training

Pipeline Locator -Ditch Witch

Pipeline Risk Management

Pipeline Surveillance

Pipeline Voice Communications

Project Finance Modelling (A)

Project Finance Modelling (B)

Purchasing & Materials Management

Responsible Officer

Regulatory Compliance in QLD for Steel and PE Pipelines

Safety in Action Conference 2011

Safety Management System (SMS) Overview

Santos - EHS Toolbox

Santos - Hazard Management using Stepback & JHA

Santos ID

Santos Level 1 Induction - QLD and SA

Santos Level 2 - Moomba/Cooper Basin Induction

Santos Port Bonython Induction - SA

Santos Rev 7.3 - Permit to Work

Senior First Aid Full Certificate SA

Senior First Aid Refresher SA

Short Term Trading Market in Gas

STTM Induction – Basic

STTM Reporting Procedure

Third Party Works

Total Rewards Management

Trend in Debt Securities

Ultrasonic Flow Measurement

White Card - National OHS Common Industry Induction

Word – Intermediate

Word 2007 - Level 2

Working at Heights

Working in Remote Locations

XInfo – Administration

Xinfo Train the Trainer

4.3 Operations & Maintenance Activities

Epic Energy operates and maintains the Moomba to Adelaide natural gas transmission pipeline and its associated facilities in accordance with AS2885.3 and other relevant standards. All Preventative, Corrective and Reactive maintenance can be identified in Epic Energy’s CMMS and are scheduled by this system which generates work orders for maintenance staff to complete. Some of the key items in the maintenance schedule include:


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• Daily road patrols on the main line and the looped section of the line in the Adelaide metropolitan area from Two Wells to Torrens Island power station

• Fortnightly road patrols from Wasleys to Torrens Island power station and the Angaston lateral

• Monthly road patrols from CS5 to Wasleys as well as the Whyte Yarcowie to Port Pirie, Whyalla, Port Bonython, Burra, Peterborough, and Hallet lateral pipelines.

• Quarterly patrols of the mainline from Moomba to CS5

• Monthly aerial patrols in the metropolitan area

• Quarterly aerial patrols from Adelaide to CS4 including the loop line and the Whyte Yarcowie to Whyalla lateral

• Two monthly CP system transformer rectifier unit inspections

• Six monthly CP system full line surveys

• DCVG surveys

• Six monthly inspection and servicing of all portable fire extinguishers

• Six monthly mechanical inspections, operational checks & servicing of equipment at all MLV and scraper station sites

• Six monthly Pig vessel maintenance and checks

• Quarterly, six monthly and annual compressor and meter station servicing covering: - pressure reduction regulators - relief valves, - Isolation valves and their associated actuators, - Filter changes. (Generally based on condition) - SCADA system pressure, flow and temperature instrumentation calibration - un-interruptible power supply and battery maintenance - fire and natural gas detection equipment testing and calibration - Pressure vessel inspections (using suitably accredited external contractors) at all facilities

associated with the Moomba to Adelaide natural gas pipeline system including the Dry Creek maintenance depot.

- Compressor and meter station emergency shutdown system testing. - Calibration of all compressor station gas turbine or gas fueled reciprocating engine

powered process compressor package control systems including testing of all safety shutdown devices

- Compressor station power generation equipment engine control system calibrations and testing of all safety shutdowns

- Routine electrical hazardous area equipment inspections and maintenance. - Routine electrical appliance and equipment testing with timings as per the relevant

Australian standards - Routine hours based compressor station GEA servicing - Routine hours based compressor station process compressor package maintenance.

• Annual communications system mast maintenance.

• Annual communications system un-interruptible power supply and battery maintenance

• Annual communications system VHF and microwave bearer checks and tests

• Routine meter station custody transfer equipment AVT calibrations and checks with frequencies determined by the relevant contracts.

A description of the Operations and Maintenance activities for 2011 is provided below.

4.3.1 Patrol Activities

All road and aerial patrols scheduled by the CMMS were completed in 2011. The road and aerial patrols ensure that the following pipeline activities are addressed:

• Signage is clearly visible, in suitable condition and maintaining pipeline line of sight. Any issues not addressed during the patrol are fed back into the CMMS and repairs are affected as soon as is practically possible.


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• there are no unauthorized activities occurring along the pipeline route or at any of the facilities

• restoration of any soil erosion due to wind and water is reported, scheduled and addressed

• there are no leaks occurring at any of the pipeline facilities or along the pipeline route

• all sites are secure, kept clean, neat and tidy

• Items including above ground pipe coating condition, fences, gates, padlocks, signage, fire extinguishers, weeding and other housekeeping activities are addressed at all of the facilities associated with the pipeline system.

In August 2011 Epic Energy pipeline surveillance officers discovered small bubbles over a concrete pit with the Epic Energy Wasleys – Torrens Island Loop Line easement at St Kiklda. Further investigations determined a small gas leak from the “O” ring seal on the TDW pig sig. (refer to section 5 – Incident Reporting) During the 2011 surveillance activities several areas of erosion caused by heavy rains and flooding affecting ROW access and pipeline depth of cover. While none of these items resulted in any damage to the pipeline, immediate action was required on each occasion to rectify the problems and retain the pipeline integrity. Extensive ROW grading and repairs were carried out including the installation of concrete culverts at KP161 to effect lasting permanent repairs. The pipeline was exposed at KP414 as a result of river flooding, immediate repairs were completed and an external consultant was engaged to provide permanent repair strategies and solutions for this site The report has been submitted and currently under review with permanent repairs to be budgeted and carried out in 2012/13. The pipeline was exposed at KP524 as a result of heavy rains and flooding, immediate action was taken to restore depth of cover until permanent gabion repairs were carried out later in the year to maintain future pipeline integrity. A section of pipeline at KP135 was identified as having reduced depth of cover due to continuous wind erosion. Depth of cover was reinstated over the non compliant area during 2011. Two unauthorised third party activities within the pipeline easement were detected by patrolling officer during routine surveillance in 2011. Refer to section 5: Incident Reporting

4.3.2 Pipeline Integrity 4.3.2.1 MAPS Defect Repair Program

Epic Energy engaged Rosen to run an intelligent Inline Inspection (ILI) program of the MAP mainline system including the Wasley’s Loop Line, starting in 2008 and completed in early 2011. The MAPS system is approximately 781km in length and Wasley’s Loop line 42km. As shown in the chart below, in 2008 a standard Corrosion Detection Pig (CDP) was run through all sections of the MAP mainline system including the Wasley’s loop line. By taking into consideration the pigging tool accuracy and the verification digs, a higher resolution Axial Flaw Detection (AFD) pig was run through all the sections of the pipe except for Wasleys loop line in 2009 to 2011 period.


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Table 1 – 2008 to 2011 Pigging History

Pipeline Section 2008 2009 2010 2011

Moomba to CS1 CDP AFD

CS1 to CS2 CDP AFD

CS2 to CS3 CDP AFD

CS3 to CS4 CDP AFD

CS4 to CS5 CDP AFD

CS5 to CS6 CDP AFD

CS6 to Wasleys CDP AFD

Wasleys to Torrens Island CDP AFD

Wasleys Loop Line CDP

During 2011 a total of 39 anomalies were inspected, repaired and refurbished as a result of the Rosen intelligent pigging data assessment. Moomba – CS1 = 2 CS1 – CS2 = 15 CS2 – CS3 = 3 CS3 – CS4 = 11 CS4 – CS5 = 3 CS5 – CS6 = 4 CS7 – Wasleys = 1 This equates to approximately 235m of pipeline excavated, inspected, repaired and coating refurbished. A total of 20 clock springs and 18 steel sleeves were used as type A repairs for the defects. All priority defects from the pigging reports have been assessed and repaired. Currently there are no anomalies with ERF>=0.99 and wall loss of 55% or more in the pipeline. Further assessments of the ILI data will be carried out in 2012 and the next set of verification digs will also include an allowance for estimated corrosion growth rate of the anomalies.

4.3.2.2 Meter Station\ Project Work As part of ongoing earthing and lightning protection system upgrades, meter stations at Gepps Cross/Dry Creek, Burra, Cotton Road (Peterborough), Peterborough (offtake) and Nuriootpa were reviewed. An in-house engineering design review led to the installation of zinc earth electrodes and an extensive system of buried cabling to ensure the earthing system, including step and touch protection, meets relevant Australian standards. Zinc earth electrodes have been chosen to ensure maximum compatibility with the sites’ CP systems. Lightning protection has been included as a part of the overall earthing system design. The existing Wasleys meter station Daniel C6 Gas chromatograph was upgraded to provide for C9+ analysis and hydrocarbon dew point calculation. These upgrades have now made the unit suitable for use for all billing applications in South Australia.

Existing Daniel flow computers at Elizabeth, Dry Creek and Taperoo meter stations were upgraded to new Fisher ROC models as part of an ongoing program to phase out the existing Daniel units that have reached the end of their manufacturer’s support life An additional new flow computer change-over cabinet for the Angaston meter station was also completed for installation during 2012.


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Non-conformances encountered during ongoing hazardous area equipment review led to the replacement of electric actuators on flow control valves at Gepps Cross and Taperoo meter stations, and upgrade of a pnuematic actuated valve at Dry Creek meter station. Several equipment upgrades were also made at Wasleys, including solenoids, instruments, new stands, junction boxes and accessories. A failed bypass valve V3 at the Osborne regulator station was replaced. This involved isolation of the station, cut out of the existing failed valve, welding in a new flanged connection and installing a new class 600 DN200 ball valve. 4.3.2.3 Compressor Station Project Work As part of ongoing earthing and lightning protection system upgrades, Wasleys and Whyte-Yarcowie compressor stations were reviewed. An in-house engineering design review led to the installation of zinc earth electrodes and an extensive system of buried cabling to ensure the earthing system, including step and touch protection, meets relevant Australian standards. Zinc earth electrodes have been chosen to ensure maximum compatibility with the sites’ CP systems. Lightning protection has been included as a part of the overall earthing system design. Epic Energy continued upgrading electrical equipment contained within the Compressor Station electrical hazardous areas with the focus on the compressor station hazardous area dossier at Compressor Station 1 and Equipment replacement on the scrubber and Unit A flow metering at compressor station 6. Epic Energy engaged the services of USA based company Petrotech to replace the Compressor Station 3 Unit B GT22 gas turbine package control system with a modern PLC based control system. This included replacing all of the package pressure sensing devices with pressure transmitters which along with the PLC control system provides increased site visibility, historical trending and troubleshooting capabilities. In addition to the control system and instrumentation upgrade, a new engine fuel valve was installed as the original equipment is no longer supported by the valve manufacturer.

Electrical upgrades to compressor station systems and facilities have seen the upgrade and installation of various distribution boards and equipment such as the HMI software at compressor station 3, replacement of the main distribution board at compressor station 6, and the battery charging systems at compressor stations 4 and 6. Epic Energy continued with the rolling upgrade and replacement program of the gas powered power generation equipment with the order of a new Caterpillar G3306 placed in 2011, expected for installation in early 2012. Fire and gas system upgrades were carried out at compressor stations 1, 3, 4 and 6, including replacement of smoke detectors with thermal fire detectors (to remove previous spurious smoke detector alarms due to dust ingress), new control panels with improved user functionality and upgrades to the testing regime. Accommodation upgrades were carried out at compressor stations 1 and 4.


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4.3.3 Cathodic Protection The following routine planned maintenance tasks and projects were completed in 2011 for the MAPS mainline and the associated laterals on the pipeline system. A total of six (6) CP ground beds were scheduled for replacement with deep well ground beds on the MAP to increase the pipeline CP system’s performance. Due to weather and access five (5) were completed with the sixth rescheduled for 2012. As part of the ongoing TRU replacement program based on an audit of system performance across the period 2009 to 2011, a new modular TR design has been developed by the engineering team in conjunction with a manufacturer. The new design is intended to improve reliability and reduce maintenance requirements. There are currently 3 installed on MAPS on a trial basis. A further 21 modular TRs have been ordered for installation in 2012. For the Port Pirie lateral, the February 2011 survey reported low protection levels. Therefore attenuation surveys were carried out to identify the need for additional CP system capacity for the pipeline. Based on this assessment, a new 50W solar site was installed at KP 31.4 (Caltowie) and a ground bed was installed at KP 56.8 (Hughes Gap) to improve the protection level for the pipeline.

4.3.3.1 MAP Mainline Cathodic Protection pipe to soil ON/OFF potential surveys for the MAP mainline from Moomba to Torrens Island were carried out during May and October 2011, and the Wasleys Loop Line in February and August in 2011. Over these two surveys an average of 85% of test point readings complied with the required protection levels. This percentage represents the number of test points capable of being read as site access was restricted and prevented access to 12% of test points during the year. Extensive work has been undertaken in the CP area on the MAPS by undertaking a study to replace old underperforming TRs. Under this scheme a total of 24 units has been ordered with 3 units already installed and tested on the pipeline for functionality. The remaining 21 units are expected to be delivered from the manufacturer in January 2012. Further, under the ground bed replacement program 5 locations were refurbished in 2011. Under ongoing CP improvement initiatives for MAPS, a third party consultant has been engaged to assist with system improvements. Stage 1 of a full system survey was carried out in December 2011 and stage 2 is planned for January 2012. A full report with recommendations will be provided based on the field surveys, which will inform CP improvement priority actions. Further, Epic has appointed a new senior integrity engineer to have improved oversight of the existing integrity engineer and three CP technicians. This additional resource and change in structure is anticipated to provide more effective management of CP performance.

4.3.3.2 Wasleys Loop Line ON/OFF potential surveys for the Wasley Loop were carried out during February and August 2011. Survey results indicates that the pipeline is satisfactory protected.


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4.3.3.3 MAP Loops ON potential surveys only are possible on the loop pipelines because they are protected by magnesium anodes. The surveys conducted during June and Sept 2011 indicated that protection levels on the CS1, CS2, CS3 and CS4 loops are satisfactory protected.

4.3.3.4 Peterborough Lateral ON/OFF potential surveys for the Peterborough Lateral were carried out in February and August 2011. Survey results indicate that the pipeline is satisfactory protected.

4.3.3.5 Port Pirie Lateral The February 2011 CP survey reported low protection levels in the Port Pirie pipeline. Therefore attenuation surveys were carried out to identify the need for additional CP system capacity for the pipeline. As a result of the survey, a new 50W solar site was installed at KP 31.4 (Caltowie) and a ground bed at KP 56.8 (Hughes Gap) installed to improve the protection level for the pipeline.

4.3.3.6 Burra Lateral ON/OFF potential surveys for the Burra Lateral were carried out in February and August 2011. The surveys reported low protection levels. Survey data analysis showed that ground bed at KP 1.4 has failed and the recorded potential drop towards the Burra meter station (KP 14.92) was exacerbated by high resistance in the station’s earthing system. Both issues have been addressed by replacing the ground bed and upgrading the station earthing.

4.3.3.7 Mintaro Lateral ON potential surveys only are possible on this pipeline because the pipeline is protected by magnesium anodes. The surveys conducted during February and July 2011 indicated that the pipeline is satisfactorily protected.

4.3.3.8 Angaston Lateral ON/OFF potential surveys for the Angaston Lateral were carried out in January and July 2011. Two TRs were performing at maximum output, with a resultant 80% compliance level along the pipeline (minimum -850mV). Therefore new TRs will be installed in 2012 as part of ongoing asset replacement programs.

4.3.3.9 Pelican Point Lateral ON potential surveys was carried out in January and July 2011. ON potential surveys only are possible on this pipeline because the pipeline is protected by zinc anodes. These surveys indicated that the pipeline is satisfactorily protected

4.3.3.10 Osborne Lateral ON potential surveys were carried out in February and July 2011. ON potential surveys only are possible on this pipeline because the pipeline is protected by zinc anodes. These surveys indicated

that the pipeline is satisfactorily protected. 4.3.3.11 Dry Creek Lateral ON/OFF potential surveys were carried out in February and July 2011. The surveys indicated that the pipeline is satisfactorily protected


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4.3.3.12 Taperoo Lateral ON/OFF potential surveys were carried out in January and July 2011. The surveys indicated that the pipeline is satisfactorily protected

4.3.3.13 Port Bonython Lateral ON/OFF potential surveys were carried out in May and November 2011. The survey indicated that pipeline is satisfactorily protected

4.3.3.14 Whyalla Lateral ON/OFF potential surveys were carried out in May and November 2011. The May survey indicated that the pipeline is 100% protected. The November survey showed that potential of the first 9 km of the pipeline is less than -850mV, which is to be rectified in early 2012 as part of Epic’s ongoing asset replacement programs.

4.3.3.15 Nurioopta Lateral ON/OFF potential surveys were carried out in January and July 2011. These surveys indicated that pipeline is satisfactorily protected.

4.3.3.16 Quarantine Lateral ON potential surveys were carried out in March and October 2011. ON potential surveys only are possible on this pipeline because the pipeline is protected by zinc anodes. These surveys indicated that the pipeline is satisfactorily protected

4.3.3.17 Hallett Lateral ON potential surveys were carried out in February and July 2011. ON potential surveys only are possible on this pipeline because the pipeline is protected by zinc anodes. These surveys indicated that the pipeline is satisfactorily protected

4.3.3.18 Tarac Lateral ON/OFF potential surveys were carried out in January and July 2011. These surveys indicated that pipeline is satisfactorily protected.

4.3.3.19 Summary In conclusion, the “Off” and “On” potentials from the surveys indicate that the MAPS Lateral pipelines are satisfactorily protected. Epic is working towards improving the reliability of power supply and performance of the cathodic protection units for the main pipeline system. Further a number of new cathodic protection systems and ground beds will be installed in 2012 as part of Epic’s ongoing asset replacement programs.

4.3.4 Electrical and Instrumentation Routine mainline valve, meter and compressor station pressure and temperature transmitter calibrations were completed at all pipeline facilities verifying that the inputs to the SCADA system were within the specified tolerances for the installed devices, thus ensuring that the control of the natural gas transportation process was within the design parameters at all times.


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Routine meter and compressor station emergency and safety shutdown checks were conducted as per the maintenance schedule to ensure these functions are operational and fit for purpose. Generally these systems are failsafe, and any malfunctions trigger the shutdowns. Testing ensures the mechanical devices that perform the valve closures and other functions are operational. Maintaining these systems as part of a regular testing regime guarantees their operation in the event of an emergency.

Routine process compressor package control system instrumentation and emergency shutdown checks were carried out, verifying that the machinery control stays within the original equipment manufacturers design parameters at all times, and that the information supplied to the pipeline SCADA system is accurate and within the measuring devices tolerance range.

All process compressor emergency shutdown functions were tested to ensure that in the event they are needed to operate, the correct action occurs and the machinery is brought to a safe condition as per the original equipment manufacturers design. Routine meter and compressor station fire and gas detection equipment maintenance and tests were conducted to meet statutory requirements and allow the identification of faulty components ensuring the system operates correctly.

Routine maintenance of the power generation equipment and distribution system, including the testing and calibration of instruments associated with this equipment, were completed as per the maintenance schedule to ensure a reliable supply of AC power at compressor stations. Generation of AC power at remote compressor stations is a key element in the process of transporting natural gas through the pipeline system, given it must be available twenty four hours a day, three hundred and sixty five days a year, equipment reliability is of key concern to the maintenance effort.

Routine maintenance of the uninterruptible power supply system has been completed to ensure that compressor and meter station batteries, and their associated chargers, are in a serviceable condition. Battery cells are assessed annually, with a charge and discharge regime, identifying

remaining service life to prevent unexpected failures. Programmed routine maintenance of SWER and HT reticulation systems was completed to ensue operability and reliability. Maintenance includes the inspection of pole top insulators, high and low voltage earthing grids, pole footings, removal, cleaning and greasing of all line taps and take offs etc

All meter and compressor station site electrical equipment was routinely inspected and maintained in accordance with Australian Standards to ensure any defective items are identified and reported via the CMMS and repaired in a timely manner.

Meter station process gas custody transfer metering equipment is tested and calibrated as per the contracts between Epic Energy and their customers. All AVT’s were completed during 2011 with no significant anomalies being identified. Electrical faults and a fire & gas alarm fault resulted in four compressor station ESDs during 2011, all issues were addressed with only minor delays in unit and station operability and no restriction to supply.

4.3.5 Communications All pipeline facilities control and monitoring functions are communicated to the central control system located in Melbourne Victoria via a microwave link that runs parallel to the buried pipeline system from Moomba to Peterborough and then via the Telstra Next G system network.


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In addition to the microwave equipment, a VHF radio link to allow voice communications between staff and the control centre is also supported by the communications system. The communications link is essential for the safe monitoring and control of the pipeline and the following range of maintenance activities were carried out to ensure the system provides a high level of availability and reliability:

• Three and six monthly maintenance tasks associated with the communications system uninterruptible power supply batteries and their associated charging system.

• Three monthly radio shack electrical equipment and appliance maintenance

• Six monthly routine air conditioning equipment maintenance

• Twelve monthly Microwave bearer and VHF communications system maintenance. Several SWER power line failures resulting from storm damage required repairs to be carried out Cowell Electric, on occasions these repairs were hampered by restrictions to access site due to heavy rains and flooding of the area. Maintenance staff was requested to respond to, investigated and solved numerous minor corrective maintenance issues throughout 2011 having no impact on operability and supply demands. 4.3.6 Mechanical Routine mainline valve and scraper station maintenance was completed, including valve sealing integrity checks, stem and ball seal greasing, valve operational checks and valve actuator serviceability checks. Scraper trap door seals were inspected and traps were assessed for leakage.

All pipeline, meter station and compressor station routine pressure regulator and over pressure protection devices were tested in accordance with the relevant Australian Standard and the Preventative Maintenance schedule.

All compressor station power generation equipment is serviced at 1000 hourly intervals to ensure high reliability and availability levels, achieving original equipment supplier recommended major

overhauls timeframes without any premature failures being experienced. All compressor station process compressor package equipment has varying service requirement levels, dependent upon operating hours. Typically filter changes and package walk-around type inspections occur at 1000 hour intervals with major strip downs and boroscope inspections occurring at 4000 hour intervals. Service intervals at these levels ensure maximum availability and reliability levels are achieved. All scheduled servicing for the process compressor package equipment occurred within the specified timeframes during 2011.

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 mechanical maintenance routines. Routine and on condition meter and compressor station process gas filter changes were completed as required. Minor mechanical maintenance tasks identified during routine site work along the pipeline are prioritized, entered into the CMMS with work orders issued for the rectification of these faults. During 2011 the active Fischer control valve on the Osborne regulating station failed, flow was maintained via the monitor valve. Field Maintenance Officers attending the site and determined the bypass valve around the faulty control valve was inoperable, the actuator was confirmed


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serviceable and the fault located within the valve. A shipper shutdown was scheduled and the control valve overhauled and the bypass valve was replaced with a new welded valve. The AL5000 diaphragm type meters at Angaston and Virginia meter stations were replaced during 2011 with rotary piston type meters to ensure better accuracy and reliability. The custody turbine meter to One Steel in the Whyalla meter station was also replaced due to a mechanical fault.

In addition the above breakdown faults and routine activities above, maintenance staff have investigated and solved numerous corrective maintenance issues identified as a result of the routine activities that arise during day to day operation of the pipeline system. These issues are considered minor in nature and resulted pose no problem to daily operation and supply.

4.3.7 Pigging Operations

There were no intelligent or cleaning pigging programs scheduled or completed on the pipelines and laterals associated with PL1 during 2011 except for the section from Moomba to CS1.

4.3.8 Leak Detection Epic Energy operated all of its pipeline assets using the Telvent OASyS DNA 7.4 SCADA system The communications paths from field to SCADA host have been upgraded and improved by using Next-G and UltraG I.P. with the Telstra DDPL and PAPL systems being decommissioned. Improvements in the communications fault reporting on SCADA have been achieved with the development of a new communications monitoring system. The system is able to display the specific link or equipment failure, this also includes the ability to “ping” sites to determine whether the cause is through Epic Energy or external party service devices. Incorporated into the SCADA is the Pipeline Leak Monitoring System (PLMS) that provides real time leak detection capability based on line-pack inventory, flows in and out of the system, gas quality and pressure and temperature rate changes. This allows the pipeline duty controller to instantly identify any anomalies that may be occurring and take appropriate actions.

The control centre staff can, if required, isolate the pipeline remotely using any one of 15 out of 36 mainline valves (including the Wasleys to Adelaide loop line) isolating sections of the pipeline to minimize any leakage should the need arise. These valves are routinely tested to ensure operability. The PLMS is augmented by maintenance activities along the pipeline which would assist identification of pipeline leakage, and ensuring the appropriate resources are mobilized to address any issue in a timely manner. In addition to the field maintenance staff activities, the pipeline operations group and senior maintenance staff carry out a daily check of the hourly line balance to ensure no significant leakage is occurring on the pipeline system, with the ability to mobilize staff to inspect any site where issues are encountered. The control centre staff also perform daily gas balancing of all accountable gas sources and have a procedure to follow if gas unaccounted for (GUF) falls outside accepted limits.

5 INCIDENT REPORTING

During 2011 there were 8 reportable incidents on the pipeline system pursuant to Regulation 32 of the “South Australian Petroleum and Geothermal Energy Regulations 2000”. All incidents have been investigated to identify the root cause and possible improvement opportunities to Epic Energy procedures. All actions that are raised following the investigation are


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tracked to ensure their timely completion before the incident is considered to be closed out. A summary of the incidents raised in 2011 is provided in Table 3.


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Table 3 Reportable Incidents for 2011

Description of incident Root Cause Preventive measures

Pipeline encroachment.

Epic Energy pipeline surveillance officers discovered a pipeline crossing being undertaken by contractors on the Moomba – Adelaide Pipeline (MAP) without notification and authorization be the pipeline owner/operator

Risk management – inadequacy of the risk review or assessment of the activity. An appropriate risk assessment by the contractor would have identified the appropriate procedures required to perform this task, including notifying the pipeline owner.

Epic Energy undertook repairs of the pipeline by abrasive blasting, MPI and refurbished pipeline coating. Offending pipeline owner and contractor have been reminded of the correct protocols when undertaking pipeline crossing works.

Pipeline encroachment.

Epic Energy pipeline surveillance officers discovered a fencing contractor drilling holes within the pipeline easement and close proximity to the pipeline without notification and authorization be the pipeline owner/operator.

Risk management – inadequacy of the risk review or assessment of the activity. An appropriate risk assessment by the contractor would have identified the appropriate procedures required to perform this task, including notifying the pipeline owner.

Epic Energy insisted the fence location be relocated outside the pipeline easement. The landowner, fencing contractor and sub-contractor have all be reminded of the restriction within the pipeline easement and the requirements to lodge a DBYD request prior to any excavation/ground breaking activity.

Pipeline defect repairs.

In December 2010 and January 2011 Epic Energy investigated and repaired 3 defects ERF >1 between Moomba & CS1 as identified in the Intelligent pigging program.

Monitoring / maintenance The MAP was constructed in 1969, the defect were indentified during intelligent pigging as part of Epic’s preventative maintenance program. Geometry and metal loss defects can be attributed to a number of factors including susceptibility of the steel, moisture of the soil, soil chemistry, quality of coating and variable stress and age of the pipeline

Three (3) clock spring repair sleeves were fitted and considered a suitable repair method to ensure the integrity at these locations for the remaining life of the pipeline


In March & April 2011 Epic Energy investigated and repaired 6 defects ERF >1 between Moomba & CS5 as identified in the Intelligent pigging program


Six (6) clock spring repair sleeves were fitted and considered a suitable repair method to ensure the integrity at these locations for the remaining life of the pipeline


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In June 2011 Epic Energy investigated and repaired as required a total of 31 defects anomalies with an ERF <1 between Moomba & CS4 as identified in the Intelligent pigging program


Seventeen (17) clock spring repair sleeves were fitted and considered a suitable repair method to ensure the integrity at these locations for the remaining life of the pipeline. The remaining sites were assessed, blasted, recoated and an ongoing monitoring program in line with the Epic Energy IMP.


In August 2011 Epic Energy investigated and repaired as required a total of 5 defects anomalies with an ERF <1 between CS4 & Torrens Island as identified in the Intelligent pigging program


Seven (7) clock spring repair sleeves were fitted and considered a suitable repair method to ensure the integrity at these locations for the remaining life of the pipeline.

Gas leak.

In August 2011 Epic Energy pipeline surveillance officers discovered small bubbles over a concrete pit with the Epic Energy Wasleys – Torrens Island Loop Line easement at St Kiklda. Further investigations determined a small gas leak from the “O” ring seal on the TDW pig sig.

Monitoring / maintenance The leak was a minor gas leak from a buried pig sig, no gas could be detected above ground using gas detection monitoring devices and would have not been detected without the water pooling on the ground.

Epic Energy undertook repairs by excavating to the top of the buried pipeline and removing the pig locator riser, capping and sealing the pipe fitting.

Gas leak

In May 2011 Epic Energy TSCC received a report of a smell of odorant and a suspected gas leak by a Country Fire Services respondent in the vicinity of the Nuriootpa meter station.

Monitoring / maintenance The initial investigation, although the smell of odorant was evident, gas detection and visual means could not determine any gas leak. further inspections determined a very small gas escape from a valve stem seal

Epic Energy undertook repairs by injecting sealant into the valve stem seal to eliminate the leak.


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6 LAND MANAGEMENT

6.1 Land Owner Liaisons There are 562 landholders along the Moomba to Adelaide Pipeline system. Every landowner on the pipeline was visited during 2011 and a questionnaire was completed as part of each visit. The questionnaire is centered on confirming contact details, current and proposed land use, awareness of the pipeline location and landowner responsibilities with respect to works in the pipeline vicinity. As part of Epic Energy’s continuous improvement program for pipeline awareness, landowners were posted two letters and safety brochures during the year containing information covering pipeline and easement safety and the responsibilities landowners have to ensure no safety breaches occur on their properties. An Epic Energy year 2012 calendar reminding the landowner of pipeline safety was also forwarded in December 2011.

6.2 Pipeline Safety Awareness Epic Energy conducts a Community Awareness Program, which entails holding awareness meetings with communities, Councils, government departments, utilities, emergency services and contractors along the pipeline route. Twenty-four (24) of these meeting were held with services in close proximity or associated directly with the Moomba – Adelaide Pipeline. The presentations focus on the general properties of the high pressure gas transported, the process of gas transmission by pipeline, location of the high pressure gas pipeline in the regions concerned, correct procedures when working within pipeline easements, pipeline threats and dealing with emergency situations. (Note:-This presentation is tailored to the specific audience and where appropriate Epic Energy will discuss the difference between Liquids Hydrocarbon and natural gas transportation as both pipeline systems exist in a number of areas within South Australia.)

6.3 Pipeline Location and Referral Services Epic Energy provides a free service to locate any pipeline that they own or operate on behalf of third parties. This service is primarily used by other companies and third parties carrying out civil works in the vicinity of the pipelines. During 2011 Epic Energy received and attended four hundred and sixty-nine (469) enquiries via the free call 1100 “Dial Before You Dig” asset referral service in relation to third party activity in the vicinity of the Moomba to Adelaide Pipeline. During 2011 there were two identified third party unauthorised activities/encroachments within the pipeline

7 ENVIRONMENTAL MANAGEMENT Monitoring In June an environmental monitoring program commenced on the MAP to measure the impact of excavation activities and monitor rehabilitation over time. A number of sites in different environmental locations along the pipeline were randomly selected for inclusion in the program. The sites will be visited on an annual basis to track change over time.


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Control documentation and training Environmental procedures and work instructions continue to be reviewed, updated and developed for all significant environmental aspects such as oil spill, weed management, soil erosion and waste management. Environmental training continued in 2011, with the rollout of environmental procedures and work instructions to Epic Energy field personnel. An online training package has been prepared and is expected to go live in late 2011 and early 2012. All Epic Energy employees are required to complete the training. African Rue Epic Energy closely monitors African Rue and has an effective control strategy in place including:

• Restriction of vehicle and machinery access into infested areas;

• Signage to allow for easy identification of infested areas;

• A herbicide spray program along the easement conduced annually, and

• A new initiative involving the use of a portable wash-down unit following access into infested areas owned by Epic Energy. A portable unit was procured earlier in the year and a makeshift wash-down pad constructed from rocks and geotextiles is being installed within the easement near CS5.

An African Rue Management Plan detailing the above has been prepared and was reviewed by the South Australia Arid Lands Natural Resource Management Board. Environmental protection Soil erosion and subsidence management:

• Low depth of cover was identified at ~KP170 and coating was found to be damaged. The pipeline was exposed and refurbished and cover restored to 750mm.

• The pipe was exposed due to washout at KP525. An external engineering consultant was engaged to inspect the site and determine a permanent repair solution. A concrete culvert with a combination of reno mattress was installed as an erosion control measure.

• The ROW was heavily eroded from flooding in 2010 and early 2011. Extensive grading was carried out on the ROW and concrete culverts installed at KP161.

Soil and groundwater contamination prevention:

• A soil and groundwater survey is currently being conducted on the MAP. The program is extensive, covering all sites from Compressor Station 1 to Compressor Station 7. The soil and groundwater surrounding scrubber tanks and sewage facilities is being sampled to ensure no contamination or leakage from Epic Energy operations. Please note there is no current issue with leaking – Epic Energy is proactively demonstrating compliance to the SEO and the Environmental Protection Act through ensuring activities are not causing environmental harm.

• A wash-down bay has been designed and is soon to be installed at Compressor Station 1. This is to prevent the wash down of oily water and weed seeds/spores to ground.

Reporting The National Greenhouse and Energy Report has been prepared for Epic Energy. This includes all energy consumption, production and greenhouse emissions from activities. Cultural Heritage All new cathodic protection and dig-up locations are surveyed for cultural heritage significance. No cultural heritage has been identified in these works areas in 2011.

Appendix A contains the “Assessment of Declared Objectives” completed for the Moomba – Adelaide Pipeline system.


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8 EMERGENCY RESPONSE

The Petroleum and Geothermal Energy Regulations require that an Emergency Response Exercise is to be conducted on the Moomba – Adelaide Pipeline (MAP) once every two years, and that a set of Emergency Response procedures is to be developed and maintained. These procedures are detailed in Epic Energy’s “Emergency Response Manual”.

Exercise “Compressor Station No7 Gas Leak” was carried out on the 23rd June 2011 in accordance with “The Regulations Under the Petroleum & Geothermal Energy Act 2000 “ and the requirements of Pipeline License No1. An emergency drill is required every two years to test emergency procedures and a report is to be submitted to the regulator (PIRSA.) within 60 days of the drill. The scenario for this exercise started with a call from a property owner on the emergency 24 hour telephone number (1800 625 665) as identified on all the pipeline warning signage. The duty controller was told the property owner had identified a gas leak on his property. The leak was identified while driving past, he could hear the gas and dust could be seen coming from the ground, a closer inspection confirmed the gas was directly over the pipeline as per the pipeline warning signs and a hole approximately 150 mm had been formed where the gas was leaking. There was no fire and the leak was approx 20 metres from Leighton Road near Booborowie.

The objective of the emergency exercise was to comply with the obligations of the Pipeline Licence (PL1) and reinforce understandings of the Epic Energy procedures and roles in an emergency situation. Specific objectives included:

• Nominate an Incident Commander, Emergency Support Team Coordinator and a Field

Response Team Coordinator.

• Set up an Incident Command Centre and an Emergency Support Team.

• Mobilise Epic Energy personnel and equipment to site.

• Confirm qualified support services/personnel were available.

• Make the site safe to minimise the impact public and the environment using Epic Energy

and Emergency Services personnel.

• Develop a repair plan to minimise the restriction of gas supply.

• Review equipment/tooling taken to MLV sites, fit and operate a “Lamb Air Mover”

• Review equipment/tooling taken to site to carry out a temporary repair, fit “Split Repair

Clamp” to pipeline.

9 REGULATORY COMPLIANCE Epic Energy ensures that design, manufacture, construction, operation, maintenance and testing of all appropriate facilities is carried out in accordance with the relevant Acts of Parliament, licence conditions and the requirements of AS2885. Epic Energy attends quarterly compliance meetings with DMITRE, where operational regulatory compliance is discussed in an open manner. Changes in legislation are tracked and communicated through a legal compliance committee which meets on a monthly basis. Epic Energy maintains a compliance database, Safety Wise, which tracks legislative compliance throughout the organisation. Obligations are assigned to responsible staff, who must supply evidence that the obligation has been satisfied within a specified time period. Epic Energy is not aware of any regulatory non compliance for this pipeline, and believes it is


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fulfilling its obligations in relation to the following requirements:

• The Petroleum & Geothermal Energy Act & Regulations 2000

• Pipeline Licence (PL1)

• The Statement of Environmental Objectives Epic Energy maintains an action tracking system for improvements to its systems, which is fully traceable through to close out of individual items. Significant items are reported through to DMITRE, and would be raised at the quarterly compliance meetings held between DMITRE and Epic Energy. There have not been any significant regulatory compliance issues during this reporting period.

10 RISK MANAGEMENT

Epic Energy incorporates risk management into operational processes and strategies in accordance with AS/NZS ISO 31000.

An Enterprise Wide Risk Management approach is taken with the framework for risk management overseen by the Enterprise Wide Risk Management Committee.

Epic Energy undertakes a variety of risk assessments from a high level corporate approach through to operational level technical assessments.

Epic Energy utilizes the following risk management strategies to minimize pipeline risks to ALARP.

• Aerial and ground surveillance of the pipeline system

• Induction processes and Safe Work Systems, including Permit to Work

• Programmed preventative maintenance activities to ensure all of the pipeline facilities are maintained in accordance with best industry practices and the relevant codes and standards that apply

• Design system change control procedures

• In accordance with AS 2885 Epic Energy conducts 5 yearly metre by metre risk assessment reviews

• Pipeline & Safety awareness program

• Land ownership use notification system

• Landholder and stakeholder contact program

• Participation in industry forums on risk management

• Provides a free “1100” Dial before You Dig information system

11 MANAGEMENT SYSTEM AUDITS

11.1 Health and Safety Audits

The Safety Management System was reviewed and the 16 standards have been updated during 2011. This was completed following a review conducted by an external consultant in 2010 resulting in 94 recommendations for improvement with all actions closed out. Site Hazard Registers were developed for all the Compressor and Meter Stations across the Moomba to Adelaide Pipeline.

The Health and Well Being program continued, including personal health assessments, workshops and health information notice boards.


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In addition, internal audits of Epic Energy’s Safety Management System (SMS) continue on annual basis, with 6 of the 16 SMS Standards audited during the year. These included the following topics;

• SMS 1 Policy & Leadership

• SMS 2 Organisation & Responsibility

• SMS 3 Objectives Plans & Procedures

• SMS 4 Risk Assessment & Management

• SMS 6 Employee Selection Competency & Training

• SMS 8 Design Construction & Commissioning

The internal audits assisted in identifying areas for improvement, which have been programmed into the action tracking system.

11.2 Management Audit

Epic Energy completed a number of management audits during the year. These were a combination of Epic’s internal audit program and external audits by industry experts initiated by Epic Energy. The following topic areas were subject to audit during 2011;

• Compressor Station Subsidence Audit

• AS 2885.3 Maintenance Review

• South East Pipeline SAOP Compliance Audit

• Overpressure & Safety Critical Maintenance Audit

• Short Term Trading Market Process Review

• SCADA Display Review

• Gas Unaccounted For Review

• Third Party Awareness Program Review

• Personnel Tracking System Review

• Readiness for National OHS Harmonisation Laws Review

• Compliance with NGERS Reporting

• Management of Change System Audit

• Vendor Management Audit

The auditing program offers the opportunity to identify and promote continual improvement within Epic Energy and completion of these audits is recognized as a key performance indicator by the board of directors.

12 REPORTS ISSUED DURING THE 2011 LICENCE YEAR

The following reports were generated for the PL1 in 2011:

• National Pollutant Inventory Report

• National greenhouse and Energy Report

• Annual Report (PL1) for 2010 (forwarded to DMITRE Feb 2011).

• URS Corrosion Control Report – KP414

• Cultural Heritage Clearance Reports (MAP; Burra lateral; Port Pirie Lateral.)Various

locations on the MAP ]

• NGERS Report

• Moomba-Adelaide gas pipeline corrosion growth rate study 2011 [Stork] (S-1-101-TR-P-

007)


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• Emergency exercise report [internal] (E-00-000-EER-G-003)

• Revised SAOP [internal] (TEB-006-0112-01 rev 2)

• HAZOP refresh reports for CS3 and Gepps Cross/Dry Creek Meter Stations [GPA] (doc

numbers S-1-510-HOP-G-002, S-23-327B-HOP-G-001 and S-1-327C-HOP-G-002

• Pressure vessel reports

• MAPS CP report [GCPS]

• SWER high voltage reticulation & transmission system safety, reliability, maintenance &

technical management plan [GPA/DPD] (S-1-101-TR-E-010)

• Investigation into low frequency induction in Moomba – Adelaide gas pipeline (The Bluff

Wind Farm) [Philip Cheeseman and Associates]

• Investigation of electrical risks at Angaston Meter Station [Philip Cheeseman and

Associates]

• St Kilda pig sig NDT report [Bureau Veritas]

• Borescope inspection report of Taurus 60 engine [Solar] (S-1-520-TR-G-008)

• Internal borescope inspection reports for CS2, 5, 6, 7

• Moomba-Adelaide Gas Pipeline - watercourse erosion at KP524 & KP414 [URS] (S-1-101-

TR-G-015)

• MAP ground subsidence – technical investigations – summary report [Worley Parsons] (S-

1-101-TR-G-014rC)

• Quarterly Incident reports.

In addition to this quarterly meetings were held with DMITRE and Epic Energy management throughout 2011.

13 VOLUME OF PRODUCT TRANSPORTED

Approximately 46,756 TJ of product was transported through the MAPS in 2011. 14 PROPOSED OPERATIONAL ACTIVITIES FOR 2012 During 2012 the following activities are proposed for the MAPS pipeline:

• Complete all scheduled routine maintenance activities and corrective maintenance identified

• CP ground bed and transformer CPU replacement program.

• Continue with MAP Defect Excavation/Repair Program.

• DCVG survey on selected laterals

• Cleaning pigging program – Port Pirie and Whyalla laterals

• Whyte Yarcowie compressor engine overhaul

• SWER power line upgrade

• Earthing & Lightning protection upgrade (selected meter stations.)

• Scraper station subsidence investigation

• Compressor Station #4 GEA upgrade

• Electrical equipment (Hazardous Area) replacement (selected compressor stations)

• Electrical equipment (Hazardous Area) replacement (selected meter stations)

• Meter station - Daniel flow computer replacement program

• Compressor station #1 - Ingersol Rand GT-22 control system upgrade

• Compressor station distribution board upgrade.

• MAP communications upgrades

• CS4 accommodation upgrade

• Compressor Station #6 replacement vibration probes

• AS 2885 Safety Management Study


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15 STATEMENT OF EXPENDITURE Commercial in confidence.

16 KEY PERFORMANCE INDICATORS The following key performance indicators have previously been established to monitor performance of operations and maintenance activities on the MAPS. Outlined below are the KPI results for 2011. 2011

Target 2011

Actual 2011 Comment

Cathodic Protection

Percentage of the pipeline protected to the AS2885-1997 level

100% 91.5%

average

Whilst not meeting the target, this result is based upon the available test points (88%) that could be accessed and read during the year. As discussed in the report extensive work has been undertaken in the CP area specially on the MAPS to improve the overall

achievements in 2012.

Third Party Incident

Number of times pipeline is damaged

0 0 No damage occurred to the pipeline during the reporting period. Target achieved

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

0 1

There were one near misses identified during the reporting period. Target achieved Refer to section 5 – Incident reporting

Unauthorized activity on the pipeline easement

4 2

There were two reported unauthorized easement activities during the reporting period. Refer to section 5 – Incident reporting

Exposure of pipeline due to washout and wind erosion

0 2

The pipeline cover was eroded exposing the pipeline at two separate locations due to extensive rains and flooding. Refer to section 4.3.1 Patrol Activities

Unplanned gas release

Number of relief valve / vent discharges

<3 5

Five uncontrolled gas emissions occurred during 2011, all releases were considered minor with volumes considered not a reportable incident.

• Modulating relief valve operating at Angaston meter station.

• CS4 ESD due to electrical fault.

• CS4 ESD due to control panel fault.

• Whyte Yarcowie ESD due to electrical fault.

• Whyte Yarcowie ESD fault unknown.

Number of pipeline leaks greater than 200m

3 / Hr

0 0 Target achieved


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SCADA and Leak Detection

Reliability of SCADA and Leak Detection System

99.% 99.95% Target achieved in 2011.

Environmental

Number of oil or other uncontrolled hydrocarbon releases

<2 0 No reported oil/hydrocarbon spills were recorded during this reporting period.

Earth Tremor Surveillance

Vehicular surveillance immediately after an earth tremor or flood

100% 100%

Additional patrols were required on several occasions after heavy rains and flooding to access the pipeline and easement. The patrols were conducted as soon as vehicle access was available to each area.

17 CONCLUSION The maintenance and inspection program carried out on the MAPS in 2011 confirms the pipeline is in sound condition and is capable of operating safely within the current operating parameters.


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Appendix A – SEO Assessment of Declared Objectives


ASSESSMENT OF DECLARED OBJECTIVES Objectives and Assessment Criteria1

OBJECTIVE GOAL Measure/how OBJECTIVE ACHIEVED

OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

1. To avoid unnecessary disturbance to 3

rd

party infrastructure, landholders or land use

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

Incident report.

Records of communications with adjacent landholders / 3rd party prior to and during maintenance work.

Landholder contact records database.

Photo points or inspection reports, specifically to look at: removal of waste products, re-instatement of soil profiles, adequate re-contouring of surface profile, return of land use.

Where disturbance is unavoidable or accidental, infrastructure or land use is restored to the satisfaction of the landholder or to undisturbed condition. Duration of disturbance does not exceed agreed timeframe.

Yes

During 2011 a number of excavations were carried out to support the Epic Energy maintenance program. All excavations were carried out with prior approvals and clearances with all works performed in accordance with Epic Energy’s approved work procedures.

1.2 To minimize disturbance to landholders

Records of communications with adjacent landholders / 3rd party prior to and during maintenance work.

Landholder contact records database.

Landholder activities not restricted as a result of pipeline activities.

Completed land disturbance checklist.

No reasonable landholder complaints. Landholder activities not restricted or disturbed as a result of pipeline activities unless by prior arrangement.

Yes

There were no reported landowner complaints during 2011, minimal disturbance to landholders and all prior approval and clearances obtained.

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

ACHIEVED YES / NO

SUPPORTING COMMENTS

2. To maintain soil stability / integrity

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

Timed photo points or annual land survey, specifically to look at evidence of erosion, subsidence, vegetation loss on easement & compare to adjacent land.

Inspections undertaken as part of regular patrols, following specific works, following significant storm events.

Preventative measures implemented and monitored in susceptible areas.

The extent of soil erosion on the easement was consistent with surrounding land

No

During 2011 there several occasions of the pipeline cover being reduced and two reported incidents of the pipeline being exposed due to erosion. Refer to section 4.3.1 Pipeline Patrol Activities.

2.2 To prevent soil inversion

Annual land survey to look for soil discoloration, success of vegetation return as an indicator.

Disturbance checklist signed off to indicate top soil/subsoil is stockpiled separately and soil profiles appropriately reinstated following the re-instatement of works/excavations.

Vegetation cover is consistent with surrounding land. No evidence of subsoil on surface (colour). Landholder signoff.

Yes

Epic Energy work procedures ensure minimal ground disturbance and soil inversion, top soil is moved and replaced to restore the same environment.



OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

3. To maintain native vegetation cover on the easement

3.1 To maintain re-growth of native vegetation on the easement to be consistent with surrounding area

Annual land survey to look for evidence of disturbance to vegetation on easement (apart from access tracks).

Disturbance checklist (including timed photos) signed off to indicate adequate steps undertaken to facilitate re-growth.

Follow-up rehabilitation work was undertaken where natural regeneration was inadequate.

Species abundance and distribution on the easement was consistent with the surrounding area. Note: assessment of the consistency with surrounding areas will take into account that re-growth is a time and rainfall dependent process.

Yes

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

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

Annual land survey to look for evidence of disturbance to vegetation on easement (apart from access tracks).

Use of Disturbance checklist and photo points before, during & after any excavation or land disturbance activity.

Vegetation trimmed rather than cleared where possible.

Consideration of sensitive vegetation during vegetation trimming and / or clearing activities.

Vegetation clearing within the easement or on land adjacent to the easement is limited to previously disturbed areas or areas assessed to be of low sensitivity, unless prior regulatory approval obtained.

Yes

Excavations during 2011 were carried out in areas of the pipeline where there is little or no vegetation and therefore it is considered the impact had by these excavations was minimal.



OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

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

Use of Disturbance checklist and photo points before, during & after any excavation or land disturbance activity.

In event of pipeline repair, open trenches are monitored daily and not left open for more than 72 hours.

Vegetation clearing within the easement or on land adjacent to the easement is limited to previously disturbed areas or areas assessed to be of low sensitivity, unless prior regulatory approval obtained.

Yes

Routine maintenance activities during 2011 had no impact on native fauna.

3.4 To minimize disturbance of marine habitats

Only undertake non-interference maintenance activities in the marine habitat.

Obtain regulatory approval prior to undertaking disturbance in marine habitat (contact should be initially made with DMITRE during the planning process).

Use of Disturbance checklist and photo points before, during & after any excavation or marine disturbance activity.

No ‘interference’ activities undertaken in the marine habitat unless prior regulatory approval obtained.

Yes

No interference activities were undertaken in the marine environments through which the pipeline transits.



OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

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 land

Regular patrols undertaken to look for evidence of weeds on easement and adjacent land (if weeds on easement but not adjacent land must implement control to prevent spread).

Records of outbreaks found, weed control activities and photo monitoring of significant outbreaks.

Vehicle wash down register.

Where appropriate, closure of ROW access road.

The presence of weeds and pathogens on the easement was consistent with or better than adjacent land. No new outbreak or spread of weeds reported.

Yes

The presence of weeds and pathogens on the easement are consistent with the adjacent land. Epic Energy has initiated a program of weed eradication in place on sections of the MAP easement to monitor and contain African Rue.

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

5.1 To maintain current surface drainage patterns

Regular patrols and annual survey undertaken to look for evidence of erosion, abnormal vegetation growth or death.

Observations also to be undertaken following significant storm events.

Use of Disturbance checklist and photo points before, during & after excavations, CP installation, construction activities, etc.

For excavations, surface drainage profiles restored. For existing easement, drainage is maintained to pre-existing conditions or better.

Yes

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



OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

6. To avoid land or water contamination

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

Evidence of soil discoloration, vegetation or fauna death during patrols. Incident / Spill reports. Use of spill protection methods where work is completed within or adjacent to environmentally sensitive areas. Containment of all hazardous substances and liquid waste in appropriate vessels. Prevention program including pigging, intelligent pigging and pipe maintenance.

No evidence of any spills or leaks to areas not designated to contain spills.

In the event of a spill, the spill was:

• Reported • Contained • Cleaned-up, and • Cause investigated and

corrective and/or preventative action implemented.

Compliance with relevant sections of the Environment Protection Act.

Yes

No spills were recorded in 2011

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

Incident / Spill reports. Active remediation methods implemented where it is determined that contamination is spreading or level of contamination is not decreasing. Use of groundwater monitoring bores. Use of soil farms for remediation.

Contamination confined to known area.

Level of contamination continually decreasing, ultimately to meet EPA guidelines.

Yes

There are no known areas of ground contamination along the pipeline system.



OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

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

Use of Disturbance checklist and photo points before, during & after excavations, CP installation, construction activities, etc. Identification of contaminated sites along easement and establishment of monitoring points.

No evidence of movement of contaminated material along easement (i.e. vegetation death, soil discolouration, subsidence).

Yes

As there are no contaminated sites and therefore the potential to spread contamination is negligible.

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

Regular patrols or annual survey undertaken to look for evidence of rubbish, spills (soil discoloration). Waste disposal records, chemical manifests. Appropriately licensed contractors used for any hazardous waste disposal and records are maintained for all hazardous waste disposal. Use of Disturbance checklist and photo points before, during & after excavations, CP installation, construction activities, etc.

No evidence of rubbish or litter on easement or at facilities.

No evidence that waste material is not contained and disposed of in accordance with Epic approved procedures.

Yes

All rubbish and waste material is removed from pipeline facilities and the easement. This material is transported back to an approved refuse collection and disposal facility at Peterborough.



OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

6.5 To prevent impacts as a result of hydro test water and waste water (water bath heaters and wash down water) disposal

Water disposed of in a manner that prevented discharge or runoff to watercourses or environmentally sensitive areas. Water discharged onto stable ground, with no evidence of erosion as a result of discharge. Records on source of water and discharge method/location. Testing of water quality prior to release/disposal of waste water. Inspection of water disposal sites for evidence of water entering a watercourse or environmentally sensitive area.

No evidence of impacts to soil, water and vegetation as a result of water disposal (i.e. soil erosion, dead vegetation, water discoloration).

Yes

There were no operational requirements to dispose of waste water during the reporting period.

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

Compliance with the relevant local government regulations or relevant health and sanitation regulations.

No evidence of non-compliance with local or state government regulations.

Yes

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

7. To minimise the risk to public health and safety

7.1 To adequately protect public safety during normal operations

Job Hazard Analysis. Records of Annual Reports, Fitness for Purpose Reports, Risk Assessments and inspections. Records (including above) demonstrating compliance to AS2885.

No injuries or incidents involving the public.

Demonstrated compliance with AS 2885.

Emergency procedures implemented and personnel trained.

Yes

Established safe systems of work including the use of approved work instructions and procedures, job hazard analysis, permit to work and experienced staff all contributes to Epic Energy meeting this objective



OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

7.2 To adequately protect public safety during maintenance

Job Hazard Analysis’. Records of communications with adjacent landholder prior to & during maintenance work including advice of the nature and schedule of maintenance activities. Use of signage or bunting to identify all potentially hazardous areas. Adequate implementation of traffic management practices. Records of regular emergency response training for employees and review of procedures. Incident Reports.

No injuries or incidents involving the public.


Yes

As per comments in 7.1

7.3 To avoid fires associated with pipeline maintenance activities

Incident reports. Records of regular fire safety and emergency response training for all operations personnel and review of procedures. Established procedures for minimizing fire risk during maintenance.

No pipeline related fires.


Yes

There were no fires along the pipeline system during the reporting period.



OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

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

Inspection / Patrol reports and records. Comprehensive landholder liaison program and records of communications with landholders. Community education program implemented in Regional areas. ‘Dial before you dig’ number available and widely advertised. Clear identification of the pipeline by signs installed in accordance with AS2885. All reports of unauthorized activity are reported and investigated.

No unauthorised activity on the easement that has the potential to impact on the pipeline integrity.

No

During 2011 there were 2 unauthorised/unsupervised third party activities on the pipeline easement,

Refer to section 5 : Incident Reporting

8. Minimise impact of emergency situations

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

Incident reports. Emergency response trials (carried out at least annually) and associated documentation. Records of regular emergency response training for all personnel and review of procedures. Link between ER exercises and Risk assessment.

Emergency response procedures are effectively implemented in the event of an emergency.

Emergency response exercises are aligned with credible threats and consequences identified in the risk assessment.

Yes

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

Emergency response is practiced on a regular basis.



OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

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

Refer to previous criteria (Objective 1, 2, 3 & 6).

Refer to previous criteria (Objective 1, 2, 3 & 6).

Yes

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

9. To minimise noise due to operations

9.1 To ensure operations comply with noise standards

Incident reports. Monitoring results, where deemed necessary (e.g. frequent complaints).

Operational activities comply with noise regulations, under the Environment Protection Act 1993.

No complaints received.

Yes

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

Maintenance activities performed during the reporting period did not contribute to any increased noise levels.

10. To minimise atmospheric emissions

10.1 To eliminate uncontrolled atmospheric emissions

Incident reports.

No uncontrolled atmospheric emission.

No

A total of seven uncontrolled gas vents occurred during 2011.

Four resulted from compressor station ESDs and one due to a meter station modulating relief valve venting.

An additional two uncontrolled emissions resulting from pipeline fittings were deemed reportable to DMITRE.

Ref to section 5 – Incident reporting.

10.2 To minimise the generation of dust.

Incident reports. Compliance with EMS Procedures (vehicle movement, dust suppression, etc).

No complaints received.

No dust related injuries recorded.

Yes

Epic Energy undertakes measures to minimize the generation of dust as part of the standard toolbox meeting discussions prior to work being undertaken.



OBJECTIVE

ACHIEVED YES / NO

SUPPORTING COMMENTS

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

11.1 To ensure that identified cultural sites are not disturbed

Consultation with relevant heritage groups if operations occurring outside known surveyed areas. Surveys / Cultural heritage monitoring before / during excavations. Records of site locations on operations GIS. Use of Disturbance checklist prior to undertaking maintenance works. Site examined for cultural heritage material prior to work involving off-easement disturbance or in an area of archaeological potential or in an area identified as being of known medium to high archaeological sensitivity.

No impact to known sites.

Any new sites identified are recorded in Land Management System and reported to appropriate authority.

Yes

Epic Energy’s Environmental Management procedures and work instructions have clear guidelines for identifying and protecting cultural heritage sites.

2011 annual report pl1 moomba - adelaide pipeline final copy

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