2011 annual report pl2 moomba port bonython liquids

2011 Annual Report

MOOMBA TO PORT BONYTHON LIQUIDS

PIPELINE

Pipeline Licence 2

Document Number S-34-102-AR-G-012

2011 PL2 Annual Report

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

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

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

4 OPERATIONAL & MAINTENANCE ACTIVITIES - 2011 ...................................... 6

4.1 Risk Assessment Review .......................................................................................... 6

4.2 Training ................................................................................................................... 6

4.3 Operations & Maintenance Activities ....................................................................... 9

5 INCIDENT REPORTING .................................................................................... 14

6 LAND MANAGEMENT ....................................................................................... 17

6.1 Land Owner Liaisons ............................................................................................. 17

6.2 Pipeline Safety Awareness ..................................................................................... 17

6.3 Pipeline Location and Referral Services ................................................................. 17

7 ENVIRONMENTAL MANAGEMENT .................................................................. 17

8 EMERGENCY RESPONSE ................................................................................ 18

9 REGULATORY COMPLIANCE .......................................................................... 19

10 RISK MANAGEMENT ..................................................................................... 20

11 MANAGEMENT SYSTEM AUDITS ................................................................. 20

11.1 Environmental Audits ......................................................................................... 20

11.2 Health and Safety Audits .................................................................................... 20

11.3 Management Audit ............................................................................................. 21

12 REPORTS ISSUED DURING THE 2011 LICENCE YEAR ............................. 21

13 VOLUME OF PRODUCT TRANSPORTED .................................................... 22

14 PROPOSED OPERATIONAL ACTIVITIES FOR 2012 .................................... 22

15 STATEMENT OF EXPENDITURE .................................................................. 22

16 KEY PERFORMANCE INDICATORS ............................................................. 23

17 CONCLUSION ................................................................................................ 24

Appendix A – Assessment of Declared Environmental Objectives............................ 25

Appendix B – Pipeline Cathodic Protection Data ...................................................... 37


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LIST OF ABBREVIATIONS

AFD Axial Flaw Detection Tool 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 Cu/CuSO4 Copper/Copper Sulphate DCGV Direct Current Voltage Gradient DMITRE Department for Manufacturing, Innovation, Trade, Resources and Energy DNV Det Norske Veritas EGP Electronic Geometry Pig EMS Environmental Management System ERE Emergency Response Exercise ESD Emergency Shut Down FFS Fitness For Service GPS Geographical Positioning System HAZOP Hazard Operability HELM Heritage, Environment and Land Management HSE Health, Safety and Environment LMS Land Management System MAOP Maximum Allowable Operating Pressure MAPS Moomba to Adelaide Pipeline System MFS Metropolitan Fire Service MLV Mainline Valve NDT Non Destructive Testing PL2 Pipeline Licence 2 PS 1-4 Pump stations 1, 2, 3 & 4 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 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 2 and the South Australian Petroleum and Geothermal Energy Regulations 2000.

2 SCOPE

The Moomba to Port Bonython Liquids Pipeline is owned by the South Australian Cooper Basin Producers Joint Venture and is monitored and maintained under contract by Epic Energy. This report reviews operations carried out during 2011 and intended operations for 2012. In accordance with the Petroleum and Geothermal Regulations a performance assessment is also provided with regard to the Statement of Environmental Objectives for PL2.

3 TECHNICAL INFORMATION

Table 1 summarizes the technical aspects of the PL2 and Figure 1 shows diagrammatically the pipeline system.

Table 1 - Moomba to Port Bonython Technical Data

Date Constructed 1983 Date Commissioned 1984

Length 659km External Diameter 355.6mm Wall Thickness: - Normal - Special Crossings (rivers, roads etc.)

7.14 mm 8.74mm

Pipe Grade API 5LX 52 MAOP 10,340kPa Coating Double layer polyethylene tape reinforced with

adhesive butyl rubber Depth of cover Nominal 900 mm

1200mm at road, rail and creek crossings

Main Line Valves Adamson & Chronsiter Gate valves (25 in total)

Actuators Shafer (17 in total)

Actuators 8 Manual gear type operators Fluid Liquid Hydrocarbon

Pump Stations 1 Active (Moomba) 1 Decommissioned (PS3 – 370kms south Moomba)

Meter Stations 1 with 3 runs (Moomba) Corrosion Protection Secondary protection provided by an impressed

current CP system 14 transformer rectifier units installed

SCADA system Digital microwave link from Moomba to Port Bonython with VHF radio coverage for voice communication and

UHF from a number of valve sites.


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Figure 1 - Moomba to Port Bonython Pipeline


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4 OPERATIONAL & MAINTENANCE ACTIVITIES - 2011

4.1 Risk Assessment Review

The last review of the AS 2885 Risk Assessment was carried out in late 2006, as part of this risk assessment review additional requirements of the Draft AS 2885.1 DR 04561] ref 3 was taken into consideration. The review of the risk assessment found that in most cases the workshop team considered there were sufficient and acceptable physical and procedural protection measures in place to protect the pipeline. Where there was any uncertainty to the suitability of the protection measures an action was raised and the risk left pending until the action was closed and the risk was then reassessed. Excepting for a small section of pipeline with low depth of cover north of Pump station No# 2, all other actions identified in the 2006 Risk assessment have been completed, the remaining section of low depth of cover has been budgeted and scheduled for completion in 2012. The next formal AS 2885 Safety Management Study of the Moomba – Port Bonython Liquids Pipeline is scheduled for completion in the first half of 2012.

4.2 Training

Epic Energy is committed to developing the skills of their employees and contractors to meet the operational 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 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 – VIC

AS 2885.3 Pipelines Gas & Liquid Petroleum - O & M

AS2885 Introduction to AS2885 and the Australian Pipeline Industry

Basic Hazop Training

Blue Card Course in General Safety Induction (Construction Industry) 30215 QLD

Bobcat Licence


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Business Communication Essentials

Business Writing Skills

C.A Business Forum 2011

Carbon Price Forum: Energy & Resources

Cathodic Protection Monitoring

Coal Seam Methane

Confined Space Awareness

CPR

CPR & Low Voltage Rescue QLD

Cultural Heritage & GMB Mobile Training.

DBP Induction

Defect Assessment in Pipeline

Drugs & Alcohol - Epic Energy 2009

Drugs & Alcohol - Epic Energy 2009 Supervisor Awareness

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

Environmental Training 2010

Epic Field introduction and Familiarization

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


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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

Operations Field Induction

Payroll News Conference

Penrice Induction Online

Permit to Work 2010

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

QSN 3 pipeline induction

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 Ballera Induction - QLD

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


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Working in Remote Locations

XInfo – Administration

Xinfo Train the Trainer

4.3 Operations & Maintenance Activities

Epic Energy have been engaged by the South Australian Cooper Basin Producers Joint Venture group (Santos) to operate and maintain the Moomba to Port Bonython liquids hydrocarbon pipeline in accordance with AS2885 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:

• Six monthly CP system full line surveys

• Two monthly CP system transformer rectifier unit inspections

• DCVG survey (3 yearly)

• Quarterly road & aerial patrols with all action items identified during the patrols rectified immediately by the patrolling officer or entered into the CMMS and scheduled for repair during other routine activities.

• Quarterly SCADA system MLV pressure & temperature transducer calibrations

• 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 and mainline valve bypass line relief valve checks

• Pressure vessel inspections (using suitably accredited external contractors) on all vessels on the Moomba to Port Bonython liquids hydrocarbon pipeline system.

• Annual cleaning pigging operations

• Communications system mast maintenance

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

• Annual communications system VHF, UHF and microwave bearer checks and tests

• 3 yearly mast maintenance programs.

• Excavation and repair of DCVG coating defects

• Excavation and pipeline integrity inspections

• Leak detection system testing

• Low depth of cover restoration.

• Creek erosion remediation.

• Painting above ground facilities.

• TRU switching unit replacements. A description of the Operations and Maintenance activities for 2011 is provided below.

4.3.1 Patrol Activities

Three monthly road and aerial patrols (aerial patrols are conducted between PS3 and the Port Bonython terminal only) scheduled to alternate at six weekly intervals were completed in 2011. The road and aerial patrols ensure that the following pipeline activities are addressed:


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• Signage is in suitable condition and if not, repairs are affected as soon as is practically possible. Any issues not addressed during the patrol are fed back into the CMMS in the form of a work order and scheduled for repair as resources permit.

• to ensure 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 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 the mainline valve and scraper station facilities associated with the pipeline system.

An action resulting from a Santos risk assessment for an internal gouge defect at approximately KP 78 on the Moomba – Port Bonython Liquids Pipeline required Epic Energy to conduct additional weekly road patrols between Moomba and Pump Station No# 2. The purpose of these patrols was to inspect the integrity of the Moomba to Port Bonython liquids pipeline and the safe condition of the defect excavation site left exposed for future pipeline integrity monitoring activities. Based on the FFP and Fatigue desktop analysis carried out, these patrols were reduced from weekly to monthly intervals from September 2009 and have since been extended to a bi-monthly patrol in 2011 with additional NDT testing of the pipe work every 6 months. In 2011 routine patrols of the pipeline easement and Right of Way (ROW) have identified areas affected by water erosion after periods of heavy rains and localised flooding, however the pipeline has not been exposed at anytime during this reporting period. Damaged areas were repaired immediately to provide a protective depth of cover, these repairs were followed up with an extensive repair program to reinstate affected areas to their original state and provide more permanent repairs to eliminate future issues. In October 2011 during a routine road patrol, unauthorised activities on the Moomba –Port Bonython Liquids Pipeline and the Moomba – Adelaide Pipeline had been identified. Investigation into the activity confirmed Santos contractors had carried out pot holing of the pipelines for a future crossing without notifying the responsible parties. No other significant issues were identified during Pipeline Surveillance activities during 2011.

4.3.2 Leak Detection

The Epic Energy Transportation Services Control Centre (TSCC) located in Melbourne operates a SCADA system that continuously monitors the Liquids pipeline. Incorporated into the SCADA is the Pipeline Leak Detection System that provides real-time leak detection capability based on line pack inventory, flows in and out of the system, hydrocarbon type and pressure and temperature change rates. This provides alarms to allow the duty controller to respond to and action any anomalies that may be occurring and notify field maintenance personnel to investigate further onsite if and as required. The control centre staff can, if required, isolate the pipeline remotely using any one of 17 out of 24 valves, isolating sections of the pipeline to minimize any leakage should the need arise. The real-time leak detection system is augmented by maintenance activities along the pipeline which assists in the identification of any pipeline leakage ensuring the appropriate resources are mobilized to address the problem in a timely manner.


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During 2011 Epic Energy fully operated the Liquids Line SCADA integrated within Telvent DNA7.4 System. Both SCADA and the Liquids Line SSI Leak Detection and Modeling software were successfully ported from the existing Telvent OASyS 5.2.2 SCADA System to the new Telvent OASyS DNA 7.4 platform in 2008. The original Telvent OASyS 5.2.2 SCADA System was finally disconnected and fully decommissioned in the first quarter of 2010. PL2 SCADA system has been 100% operative within TSCC using DNA7.4 platforms during 2011. Remote site connectivity has varied due to the effects of the microwave system reliability, power management and field equipment faults. Overall connectivity was >99%, with Moomba the lowest at 85% that is effected mostly by ageing equipment faults. As such, Santos are reviewing the replacement of the original Sarasota Flow Computers and flow metering equipment. The Liquids Real-Time Leak Detection Model operated 98% of the time, with short term outages related directly to RTU communication problems at either Moomba or Port Bonython. A simulated test of the real-time leak detection system is carried out annually in December in accordance with the annual maintenance plan. The one for 2011 was completed as required and validated as passed to meet the requirement of leak detection rate of less than 11m3/hr.

4.3.3 Coating Integrity

All defects identified in the 2008 Gippsland Cathodic Protection Survey Report with a %IR >15 have been excavated, inspected and repaired as recommended in the report. A DCVG survey was completed in 2011 in accordance with the Santos Integrity Management Plan. A defect comparison report has been prepared, comparing data from 2008 and 2011 data, and the latest DCVG survey report has identified 7 defects with %IR > 15. The majority of these defects will be inspected in 2012 under the coating inspection program. The pipeline coating system has performed well; the defects repaired to date have been in areas affected by boulders in trenches, handling of pipes during construction stage and absence of padding causing mechanical damage on the coating. Further coating issues were found where pipe work enters the ground, especially at MLV sites. Further coating inspection work is planned during 2012 which will assist in maintaining good coating condition and avoid corrosion in the pipeline. No major corrosion, pitting or stress corrosion cracking was detectable on the pipeline. All corrosion defects were acceptable to the requirements of AS 2885.3.

4.3.4 Cathodic Protection

Results from the full line cathodic protection surveys conducted in 2011 are presented graphically in Appendix B. The Full Line on/off potential survey carried out in 2011, with the exception of the sections of the pipeline north of the pump station 2 due to restricted access to this area caused by heavy rain, provided 98.90% compliance for pipeline protection in accordance with levels indicated in AS 2885 – 1997. A 50km section was missed during the 1st survey in March, and a 150 km section was missed during the 2nd survey in September. The section not completed in the second catholic protection survey has been rescheduled to January 2012. Based on the 2011 available CP data analysis, the following action is required to further improve pipeline protection.


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a) Ground bed replacement inside the Moomba compound is required (15 meters downstream of the buried insulation joint). In addition, a faulty TR needs to be repaired. A project has been started to install a replacement ground bed and CPU to rectify this issue, work has commenced and will be completed in February 2012.

b) Interference near pump station 3 requires investigation in 2012. c) The Whyalla lateral and Port Bonython tank farm area requires testing for interference. A

program will be initiated to investigate these locations. d) Approximately 15 test posts need replacement to improve the ON/OFF readings of the

pipeline. e) Data logging is to be carried out at pump station 3 to monitor telluric activity along the

pipeline. A transformer rectifier at KP 402 (Martins Well) was replaced with a 30A/30V Corrosion Electronics CPU in 2011 to improve the cathodic protection within this area. Santos in conjunction with an external consultant will audit Epic Energy in early 2012 to verify compliance of Epic MPBLL CP System management procedures against Santos EHSMS System and Australian standards AS 2832.1, AS 2885.1 and AS/NZS 4853. The audit scope shall include :

o Review CP system description o Review CP system drawings o Review CP survey procedures o Review CP system records o Review pipeline potential compliance o Review CP system reliability o Review electrical isolation procedures o Review interference testing records o Review maintenance records o Review electrical hazards safety records o Review field CP survey execution

4.3.5 Electrical and Instrumentation Routine quarterly pressure and temperature transmitter calibrations were completed in 2011 to verify the accuracy of data being fed into the SCADA system, allowing accurate control of the liquids hydrocarbon transportation process to ensure it stays within the design parameters at all times. Six monthly mainline valve remote operational checks were carried out in conjunction with scheduled routine pressure and temperature transmitter calibrations. All sites were tested twice in the year as per the 6 monthly scheduling requirements.

4.3.6 Communications All process variables and valve control functions are communicated to the central control system located at the Transport Services Control Centre in Melbourne, Victoria via a microwave link that runs parallel to the buried pipeline system. In addition to the microwave link, a VHF radio link to allow voice communications between staff and the control centre plus a UHF link to transmit process data and commands to the main microwave link from remote sites are also supported by the communications system.


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This system is essential for the safe monitoring and control of the pipeline and the following range of routine maintenance activities were carried out in 2011 to ensure the communications system provided a constant level of availability and reliability:

• Routine Microwave bearer, UHF and VHF communications system maintenance tasks.

• Routine maintenance tasks associated with the SCADA RTU calibration.

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

• Routine maintenance tasks associated with the communications system solar generated power supply batteries.

• Six monthly communications equipment air conditioning unit maintenance. All communication outages were minor in nature and for short periods, there were no significant communications issued reported in 2011.

4.3.7 Mechanical

Routine six monthly mainline valve and scraper station maintenance tasks were carried out in 2011. All pipeline pressure regulator and over pressure protection devices were tested in compliance with the relevant Australian standard and the maintenance schedule. Ancillary equipment, such as pipe supports, pipe ground entry points, valves and pigging facilities, are routinely inspected as part of the facilities inspections and as a part of the mechanical maintenance routines. Pressure vessel Internal/ External inspections were scheduled to be carried out in mid December 2011, this work has been deferred to early 2012 due to Santos Moomba operational requriements and the inability to provide a dead crude slug. There were no non conformances identified, nor any issues requiring follow up actions reported in 2011. 4.3.8 Pipeline Integrity A section of pipeline approx 78 kilometres south of Moomba has been identified with internal metal loss defect discovered during the Rosen AFD inline inspection run between Moomba and Pump Station No#2 in 2009. Metal shavings detected in the pig receiver vessel after a pigging operation to remove a flow enhancer nozzle and a hot tap drill was the driver for running the inline inspection tool. The final report from the AFD inline inspection tool reported minor spirally orientated gouging anomalies with between 5%-9% wall loss. During 2011 additional bimonthly road patrols between Moomba and PS2 have been carried out to monitor the buried pipeline with special emphasis on the defected section and the excavated section at KP78. NDT inspection performed (phased array scan ultrasonic) on the excavated section in March and September have shown no deterioration of the defect. Approximately two (2) kilometres of pipeline has been identified for replacement in October 2012.


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Bacteria activity on the Moomba to Port Bonython Liquids Pipeline continued to be monitored and controlled by several activities in accordance with Moomba - Port Bonython Liquids Line Integrity Management Plan in 2011. In 2011 the bacteria levels were significantly lower than in 2010 and within an acceptable level. Activities included biocide injection at Moomba at a rate of 15 minutes on and 60 minutes off, pigging program with a duel corrosion inhibitor (CORTON IR2449) treatment run in January 2011 and a single cleaning pigging operation in September 2011. Oil samples were taken at each pig vessel during the 2011 pigging program and forwarded to Santos laboratories for bacteria (SRB) analysis. In 2011 pipeline corrosion was monitored and controlled by carrying out 6 monthly full line on/off potential surveys, 2 monthly CPU surveys, painting programs for above ground facilities and DCVG survey. No ILI or DCVG defects were excavated or repaired during 2011, data from the last ILI and DCVG survey will be reviewed to determine the maintenance program for 2012. Pipeline and easement/ROW erosion from the heavy rains in late 2010 and the early part of 2011 caused substantial access issues to several sites and reduced the depth of cover over the pipeline at several locations, the liquids pipeline was not exposed during 2011. An extensive repair program in 2011 ensured the pipeline depth of cover was restored to comply with AS 2885, all ROW access was restored and permanent reprise were completed at Mulligan Springs Creek and Moopa Collina Channel. Minor stem seal leaks on Adamson Chronister Main Line Valves have developed at several along the pipeline. Santos has engaged an external consultant to design and develop a prototype assembly to carry out permanent repairs to these sites. Testing and preliminary site work has ensured this work can be scheduled for completion at priority sites in 2012. As part of this exercise, MLV sealing capacity was tested on all MLVs during 2012 using two different types of sealant, several valves could not achieve 100% sealing capacity when blowing down the valve cavities with the valves in a closed position and pressure on both sides of the valves. A true sealing capacity test can only be performed with pressure on one side of the slab, this cannot be achieved with the current pipeline operating conditions.

4.3.9 Pigging operations

In accordance with the Santos Moomba – Port Bonython liquids line “Pipeline Integrity Management Plan” the following pigging operations were carried out in 2011. A duel corrosion inhibitor (CORTON IR2449) treatment pigging program was carried out in January 2011 and a single cleaning pigging operation in September 2011. Sludge samples are collected for analysis to monitor Bacteria (SRB) levels during each pigging run.

5 INCIDENT REPORTING

There was one reportable incident associated with the Moomba – Port Bonython Liquids Pipeline in 2011. An encroachment by a contractor installing a flowline on behalf of Santos at KP13.2 on the 6th October 2011, resulted in contact of the pipeline during potholing activities. Santos contractor (WDS) mistakenly encroached upon the easement as part of the Moomba 190 pipeline project, without receiving the appropriate approvals. Work ceased until the correct supervision and controls could be implemented. An internal investigation has been completed by Santos and corrective


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measures implemented to prevent a re-occurrence.


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Table of Reportable Incidents for 2011

Description of incident Root Cause determined Corrective action Preventive action

A Santos contractor installing flowlines encroached upon the Liquids Pipeline without obtaining correct approval

Risk Management -Inadequacy of the risk review or assessment of the activity (e.g. JHA, PTW, HAZAN/HAZOP1) carried out

prior to the activity. An appropriate risk

assessment by the contractor would have identified the appropriate procedures require to perform this task, including notifying the owner of foreign crossings.

Work was halted and suitable work processes implemented including supervision of works by Epic Energy.

Epic Energy undertook repairs of the pipeline by abrasive blasting and MPI testing of the pipe, and refurbished the pipeline coating. reinforcement of the correct protocol when undertaking pipeline crossing works.


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6 LAND MANAGEMENT

6.1 Land Owner Liaisons

There are 44 landholders along the Moomba to Port Bonython Liquids Pipeline system. Every landowner on the pipeline was visited during 2011 and a questionnaire was completed as part of each visit. The questionnaire is centred on confirming contact details, current and proposed land use, awareness of the pipeline location and reminding landowners of their responsibilities with respect to works in the pipeline vicinity. As part of Epic Energy’s continuous improvement program for pipeline awareness, the landowners were posted a letter and a postcard 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 implements a Community Awareness Program, which entails holding awareness meetings with communities, government departments, utilities, emergency services and contractors along the pipeline route. Three (3) of these meetings were held in the mid north with services in close proximity or associated directly with the Moomba – Port Bonython Liquids Line. The presentations focus on the general properties of the liquid hydrocarbons transported, the process of liquids hydrocarbon transmission by pipeline, location of the high pressure liquids pipeline in the regions concerned, correct procedures when working within pipeline easements, pipeline threats and dealing with emergency situations. (Note:-The presentations are tailored to the specific audience and where appropriate Epic Energy discusses the differences 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 six 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 Port Bonython Liquids Line. Three of these required on-site attendance by Field Maintenance Officers (rabbit ripping by a landowner, soil sampling along Stuart Hwy and Santos flow line Crossing at KP13) with the other three being requests for service information for ‘planning and design’.

7 ENVIRONMENTAL MANAGEMENT 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


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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 is used as induction into the Environment Management System. All Epic Energy employees and contractors are required to complete the training. African Rue Epic Energy closely monitors African Rue and has an effective mitigation and 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 conducted 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 has been 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:

• In 2010, Epic Energy identified that Mulligan Spring Creek required permanent erosion repairs. In late 2011 a concrete culvert and Reno Mattress was installed.

• Remediation work commenced on the sand dune area between Moomba and CS2 experience low depth of cover from heavy rainfall and flooding in 2010. 14 out of 18 sites have been reinstated. The remaining sites will be addressed in 2012.

Appendix A contains the “Assessment of Declared Environmental Objectives” completed for the Liquids Line.

8 EMERGENCY RESPONSE

Pipeline Licence 2 states that an Emergency Exercise is to be conducted on the Moomba – Port Bonython Liquids Pipeline once every two years, and in addition to this exercise a set of Emergency Response procedures is to be developed and maintained. These procedures are detailed in Epic Energy’s “Emergency Response Manual”.

The last emergency response exercise was conducted on the 14th April 2010 with the next due in 2012.

Epic Energy carried out an Emergency Response Exercise in 2011, although the drill was not directly related to the Moomba – Port Bonython Liquids Pipeline, the training enhances and preparation of the same personnel working on the Moomba – Adelaide Gas Pipeline. 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.


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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.

In 2011 a DRAFT copy of the revised Emergency Management Plan for the Moomba – Port Bonython Liquids Pipeline was forwarded to Santos for review and approval. The ERP includes emergency response and emergency equipment procedures.

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 fulfilling its obligations in relation to the following requirements:

• The Petroleum & Geothermal Energy Act & Regulations 2000

• Pipeline Licence (PL2)

• 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.


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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 Environmental Audits

An environmental audit of the Moomba – Port Bonython Liquids Pipeline (PL2) was completed during February 2011 to assess compliance with the Statement of Environmental Objectives for this pipeline. Operation of the Pipeline system was found to be compliant with the objectives of the SEO. There were no instances of soil erosion and inversion observed during the audit. There was no weeds observed and no rubbish or waste was present along the pipeline route or within the above ground facilities. The line of sight for signage was maintained in most sections, except two locations where vegetation clearing was required. An assessment of compliance with the objectives of the SEO is included within appendix A of this report.

11.2 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.


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

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.

11.3 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

• 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 Liquids Line pipeline in 2011:

• PL 2 Annual Report for 2010 (forwarded early 2011)

• Monthly Maintenance Reports

• 2012 Annual Maintenance Plan (for approval by Santos)

• DCVG Survey Report

• Moomba Microwave System Inspection Report


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• Emergency Management Plan –DRAFT copy.

• Pipeline Integrity KPI Reports (monthly)

• Epic Energy Performance Report (monthly)

• Santos/Epic Energy Contractor Management Presentations (quarterly)

• Incident Report – MLV Oil Spill (non –reportable)

• Incident Report - Damaged Pressure Gauge (non-reportable)

13 VOLUME OF PRODUCT TRANSPORTED

1,142,368 tonnes of product was transported through the Liquids Pipeline in 2011, this equates to a gross volume of 1,607,725 m3 and a net volume of 1,583,468 m3

14 PROPOSED OPERATIONAL ACTIVITIES FOR 2012

During 2012 the following activities are proposed for the Liquids Line pipeline:

• Complete all scheduled routine maintenance activities and corrective maintenance activities.

• Submission of a 2011 Annual Report in early 2012

• Conduct a Pipeline Cleaning/Biocide injection pigging program.

• Replacement of approx 2 kilometres of pipeline identified with internal gouge defect.

• Mast Inspection/Monitoring program

• Excavate and verify ILI pigging defect data ( repairs as necessary)

• Excavate and repair coating defects identified in the 2011 DCVG survey.

• Paint one above ground facility (site to be determined)

• Low depth of cover restoration north of PS2

• River/Creek crossing & low depth of cover repairs.

• MLV stem seal repair program

• Install corrosion monitoring probes

• Install CP ground bed and reinstate TRU at KP 0.2.

15 STATEMENT OF EXPENDITURE

Confidential


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

2011 Target 2011 Actual 2011 Comment Cathodic Protection Percentage of the pipeline protected to AS2832.1 level

100%

98%

Low potentials inside the Moomba compound, Interference issues near pump station 3, Port Bonython tank farm and near Whyalla lateral are scheduled to be addressed in first quarter of 2012.

Internal Corrosion SRB count from 100 ml sludge sample using serial dilution method

3 or less positive

<3 Positive

The analysis of the samples taken during the September 2011 pigging process showed a marked improvement with positive levels bacteria in two (2) samples, these levels are considered not to be of any concern.

Third Party Incident

Number of times pipeline is damaged

0 0 No damaged occurred to the pipeline during the reporting period

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

0

1

There was one incident of a third party using a water lance to pot hole the Moomba – Port Bonython Liquids Pipeline without prior approval and making contact with the pipe.

Exposure of pipeline due to washout and wind erosion

0

0

Heavy rains and flooding in the early part of 2011 caused water erosion in several areas over the pipeline route, however the pipeline was not exposed at any location.

SCADA and Leak Detection Reliability of SCADA and Leak Detection System

100%

98%

SWER line faults and Santos plant faults accounted for the communication outages during 2011.

Environmental Number of uncontrolled hydrocarbon releases

0 0 There were no uncontrolled releases of hydrocarbons reported in 2011

Earth Tremor Surveillance Vehicular surveillance immediately after an earth tremor or flood

100%

100%

Patrols were rescheduled in 2011 on several occasions immediately after heavy rain and flooding in areas associated with the liquids pipeline.


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17 CONCLUSION The maintenance and inspection programs carried out on the Moomba – Port Bonython Liquids in 2011 have ensured the pipeline is fit for service and capable of operating within the set parameters. The CP Survey results supplied in Appendix B indicate the protection levels are adequate to provide suitable protection for the pipeline. .


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Appendix A – Assessment of Declared Environmental Objectives


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ASSESSMENT OF DECLARED ENVIRONMENTAL OBJECTIVES

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 minimise 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

There has been no disturbance to third party infrastructure during 2011.

1.2 To minimise 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.

Yes

There has been no disturbance to third party infrastructure during 2011.


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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.

N0

Heavy rains and flooding caused areas of erosion and reduced depth of cover over sections of the pipeline. Immediate temporary repairs have been carried out with ongoing restoration work scheduled to continue into 2012.

2.2 To prevent soil inversion

Annual land survey to look for soil discolouration, 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

During the reporting period only minor excavation work was completed in accordance with the Epic Energy excavation and environmental procedures.

2.3 To minimise disturbance to erosive soils to prevent on-going risk of soil erosion

Extent of soil erosion on the easement consistent with surrounding land.

N0

Heavy rains and flooding caused areas of erosion and reduced depth of cover over the pipeline. Immediate temporary repairs have been carried out with ongoing restoration work scheduled for 2012

3. To maintain native vegetation cover on the easement

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

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

Species abundance and distribution on the easement was consistent with the surrounding area.

Yes

The condition of the native vegetation within the pipeline easement is consistent with the surrounding vegetation. Heavy rains experienced in


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ACHIEVED

YES / NO

SUPPORTING COMMENTS

surrounding area steps undertaken to facilitate re-growth.

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

Note: assessment of the consistency with surrounding areas will take into account that re-growth is a time and rainfall dependent process.

2010 and early 2011 have increased the vegetation growth along the pipeline route.

3.2 To minimise 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

During the reporting period several minor excavation activities were carried out, however care was taken to ensure damage to the local vegetation was minimal.

3.3 To ensure maintenance activities are planned and conducted in a manner that minimises 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

No maintenance activities during 2011 had identified any impact on the native fauna.

4. To prevent the spread of weeds and pathogens

4.1 To ensure that weeds and pathogens are controlled at a level

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

The presence of weeds and pathogens on the easement was consistent with or better than adjacent land.

Yes

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


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ACHIEVED

YES / NO

SUPPORTING COMMENTS

that is at least consistent with adjacent land

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.

No new outbreak or spread of weeds reported.

5. To minimise 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 traverses and therefore current drainage patterns have been maintained.

6. To avoid land or water contamination

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

Evidence of soil discolouration, 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.

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.

No

One minor oil spill resulted from a faulty seating non return ball in MLV sealant injection line, this spill was evaluated as minor and non reportable.


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ACHIEVED

YES / NO

SUPPORTING COMMENTS

Prevention program including pigging, intelligent pigging and pipe maintenance.

Compliance with relevant sections of the Environment Protection Act.

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 areas of contamination occurring as a result of the pipeline operations.

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

The Pipeline does not traverse any contaminated sites .


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ACHIEVED

YES / NO

SUPPORTING COMMENTS

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 discolouration). 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 all of the pipelines facilities and the easement. This material is transported back to an approved refuse collection and disposal facility.

6.5 To prevent impacts as a result of 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.

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

Yes

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


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ACHIEVED

YES / NO

SUPPORTING COMMENTS

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.

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 of oil spills from the pipeline or pipeline infrastructure

7.1 To minimise oil losses during pigging and other routine pipeline operations

Spill protection methods are used during routine operations. All liquid wastes are contained within impermeable containers or containment.

No evidence of spills from pigging or other routine pipeline operations.

No spill s has been reported during pigging activities during this reporting period.

7.2 To monitor the condition of the pipeline to ensure that potential pipeline leaks are identified and appropriate action implemented.

Results of pigging and intelligent pigging programmes. Record of analysis of pigging waste for evidence of pipeline corrosion. Records of bactericide use following pigging to kill and prevent any bacteria growth. Action plans for remediation of any issues identified.

Intelligent pigging occurs on an as condition basis. Corrective and/or preventative action implemented in a timely manner.

The bacteria analysis completed after pigging operations in 2011 indicated positive vials <3 in two pig trap vessels.

Chemical injection and pig cleaning run programs have been completed to confirm bacterial activity levels are within acceptable limits.


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ACHIEVED

YES / NO

SUPPORTING COMMENTS

Condition of pipeline demonstrated by monitoring in accordance with requirements of AS2885

7.3 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 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.

Yes There was one reportable unauthorized third party activity on the Moomba – Port Bonython pipeline easement during 2011

Signage compliant with AS 2885 is in place and maintained.

8. To minimise the risk to public health and safety

8.1 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

The use of approved work procedures and an intensive Pipeline Awareness program contributes to Epic Energy meeting this objective.


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ACHIEVED

YES / NO

SUPPORTING COMMENTS

8.2 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.

Emergency procedures implemented and personnel trained

Yes

All landowners and relevant authorities are advised whenever any work is scheduled on their property or land under their control.

All potentially hazardous work sites are marked

During the reporting period no activities were undertaken that required specific traffic management procedures to be in place. Epic staff are trained in traffic management practices and do employ these techniques whenever required.

In addition to the comments above the comments for 7.1 apply.

8.3 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

No pipeline related fires.

Emergency procedures implemented and personnel trained

Yes

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


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ACHIEVED

YES / NO

SUPPORTING COMMENTS

fire risk during maintenance.

9. Minimise impact of emergency situations

9.1 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

Epic Energy personnel were engaged in an emergency response exercise during 2011.

9.2 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

10. To minimise noise due to operations

10.1 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

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

11. To minimise atmospheric emissions

11.1 To eliminate uncontrolled atmospheric

Incident reports.

No uncontrolled atmospheric emission.

Yes

There were no uncontrolled atmospheric emissions during the year


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ACHIEVED

YES / NO

SUPPORTING COMMENTS

emissions

11.2 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

Dust controlled measures are incorporated into work procedures during the excavation programs.

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

12.1 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

No operations or maintenance activities occurred during 2011 that had any impact on cultural heritage sites.

All excavations have cultural and heritage clearance prior to commencing.


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Appendix B – Pipeline Cathodic Protection Data


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Liquids Line Corrosion Protection On/Off Potentials 2011 Surveys

2011 annual report pl2 moomba port bonython liquids

Documents