2008 Annual Report MOOMBA TO PORT BONYTHON LIQUIDS PIPELINE Pipeline Licence 2minerals.statedevelopment.sa.gov.au/__data/assets/pdf... · 2015-04-30 · MOOMBA TO PORT BONYTHON LIQUIDS

2008 Annual Report

MOOMBA TO PORT BONYTHON LIQUIDS PIPELINE

Pipeline Licence 2

Document Number S-34-102-AR-009

2008 PL2 Annual Report

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TABLE OF CONTENTS 1 PURPOSE ........................................................................................................... 4 2 SCOPE ................................................................................................................ 4 3 TECHNICAL INFORMATION............................................................................... 4 4 OPERATIONAL & MAINTENANCE ACTIVITIES - 2008...................................... 6

4.1 Risk Assessment Review.............................................................................. 6 4.2 Training......................................................................................................... 6 4.3 Operations & Maintenance Activities ............................................................ 7

5 INCIDENT REPORTING.................................................................................... 12 6 LAND MANAGEMENT....................................................................................... 12

6.1 Land Owner Liaisons .................................................................................. 12 6.2 Pipeline Safety Awareness ......................................................................... 12 6.3 Pipeline Location and Referral Services ..................................................... 13

7 ENVIRONMENTAL MANAGEMENT ................................................................. 13 8 EMERGENCY RESPONSE ............................................................................... 13 9 REGULATORY COMPLIANCE.......................................................................... 14 10 RISK MANAGEMENT .................................................................................... 14 11 MANAGEMENT SYSTEM AUDITS................................................................ 15

11.1 Environmental Audits .................................................................................. 15 11.2 Health and Safety Audits ............................................................................ 15 11.3 Management Audit...................................................................................... 15

12 REPORTS ISSUED DURING THE 2008 LICENCE YEAR ............................ 15 13 VOLUME OF PRODUCT TRANSPORTED.................................................... 15 14 PROPOSED OPERATIONAL ACTIVITIES FOR 2009................................... 15 15 STATEMENT OF EXPENDITURE ................................................................. 16 16 KEY PERFORMANCE INDICATORS ............................................................ 16 17 CONCLUSION ............................................................................................... 17 Appendix A – Assessment of Declared Objectives ................................................... 18 Appendix B – Pipeline Cathodic Protection Data ...................................................... 19


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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 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 GPS Geographical Positioning System HAZOP Hazard Operability HELM Heritage, Environment and Land Management HSE Health, Safety and Environment 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 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 SA Petroleum Regulations 2000.

2 SCOPE The Moomba to Port Bonython Liquids Pipeline is owned by the South Australian Cooper Basin Joint Venture and is operated and maintained under contract by Epic Energy. This report reviews operations carried out during 2008 and intended operations for 2009. In accordance with the Petroleum 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 - 2008

4.1 Risk Assessment Review A review of the AS 2885 Risk Assessment was carried out in late 2006 with the final report issued in 2007. 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 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. As a result of the risk assessment a detailed depth of cover survey has been completed on the entire route of the pipeline recommending a three year plan to address areas of low cover. All landowners have been contacted to confirm their land use and activities within the proximity of the pipeline. An engineering review is underway and due for completion in 2009 to assess the adequacy of standard designs with respect to power line faults to ground and cooling effect on pipeline material due to vaporization of liquid if backpressure is not maintained with preliminary work completed in 2008.

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 2008 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 2008 included: • 4WD / Defensive Driving • AS 2885.3 Pipelines Gas & Liquid Petroleum - O & M • Basic Fire Prevention & Control (Extinguishers)/Refresher (Phase 3) • Beverley Uranium Mine Induction SA • Cathodic Protection Monitoring • Communications Vault System Administration • Communications Vault The New Manager • Concepts of Instrumentation - Instrumentation Modules • Confined Space Awareness & Entry • Corrosion Protection • Senior First Aid & CPR • Data Capture/Eddict • Earthing & Cad-weld Seminar • Elevated Work Platform WP • Emergency Equipment - Familiarization • Environmental Auditor Certification Workshop • Excavation of Pipelines


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• Fisher Control Valve Operation & Maintenance • Fisher Digital Valve Controllers Ops & Maintenance • Fisher Farris PSV Safety Relief Valves Ops & Maintenance • Fisher Regulator Operation & Maintenance • Fisher Wizard Controller Ops & Maintenance • Flow Measuring Instruments - Basics • Hazard Identification and Control • Hazardous Materials (MSDS) • Heat Stress • Install Trench Support • Instrumentation Drawings & Manuals - Instrumentation Modules • Introduction To Gas Pipelines • Introduction to Pigging • Job Hazard Analysis • Level/Density - Instrumentation Modules • Mercury Awareness • Parker Instrumentation - Tube Fabrication • Parker Instrumentation - Tube Fitting • Permit To Work System / Refresher • Pipeline Locator - Metrotech Training • Pipeline Locator -Ditch Witch • Pipeline Surveillance and Easement Activities • Pipeline System Components Introduction • Plans and Instrumentation Drawings P&IDs • Pressure - Instrumentation Modules • Principles of Flow Measurement • Quality Environmental & Management Systems Update Training - For Managers & Team

Leaders • SCADA and Control Systems Basics • SCADA Systems Forum • Swagelok Tube Bending • Swagelok Tube Fitting • Temperature - Instrumentation Modules • The Atmosphere & Working With Gases • Third Party Works • Transmitters & Converters - Instrumentation Modules • White Card - National OHS Common Industry Induction • Working at Heights • Work zone Traffic Management

4.3 Operations & Maintenance Activities Epic Energy have been engaged by the South Australian Cooper Basin 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 routine and corrective maintenance activities identified are specified 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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• Two monthly CP system transformer rectifier unit inspections • DCVG survey • Quarterly road & aerial patrols are been conducted 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 CP system full line 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 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 • Excavation and repair of coating defects • Excavation and repair to two ILI defects. • Pipeline cleaning pig run • UHF communications equipment upgraded. • Excavation and pipeline integrity inspections • Leak detection system tested A description of the Operations and Maintenance activities for 2008 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 2008. The road and aerial patrols ensure that the following pipeline activities are addressed: • 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. • 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.

In 2008 during routine patrol activities one unauthorized third party activity was reported and several areas affected by water erosion after heavy rains and flooding were identified for repair, no other significant issues were identified during any of the patrols.

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


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Pipeline Leak Monitoring 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 allows the duty controller to instantly identify any action anomalies that may be occurring and notify field maintenance personnel to investigate further onsite 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. 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 again mobilizing staff to inspect any sites that they may identify. During 2007-8 Epic Energy upgraded their SCADA Host System. The Liquids Line SSI Leak Detection and Modeling software was successfully ported from the existing Telvent OASyS 5.2.2 SCADA System to the new Telvent OASyS DNA 7.4 platform in 2008. Currently both systems are operating in parallel for final commissioning and acceptance of the new operating system. The original Telvent OASyS 5.2.2 SCADA System will be decommissioned in the first quarter of 2009. A simulated test of the leak detection system is carried out annually in December in accordance with the annual maintenance plan.

4.3.3 Coating Integrity The November 2005 coating (DCVG) survey detected fourteen medium size defects with IR>15%. A refurbishment program was completed in March 2007 to recoat ten of these coating defects, a further three defects were refurbished during 2008 at KP 409.7, 436.98, 455.11. A fourth defect at KP 407 was planned to be refurbished during 2008 but was put on hold and decided to include in a future program due to the discrepancy in length and location of the defect reported in the 2005 survey compared to a DCVG survey conducted in 2008. Coating defects at KP 588.0 and KP 630.0 detected during the 2005 Intelligent Pig Survey were also refurbished during 2008. The primary cause of the damage to the coating identified by both the DCVG and ILI surveys was poor back filling practice during the construction of the pipeline. A coating (DCVG) defect survey was conducted along the entire length of the 658 km pipeline during September and October 2008. The survey concluded that the pipeline is well protected from external corrosion by a good coating system and cathodic protection. The survey noted a trend of coating degradation north of Pump Station 3 with priority defects identified for repair at KP 130.176, 144.169, 210.625, 228.218, 288.256, 418.543 and 503.805 during 2009.

4.3.4 Cathodic Protection Results from the full line six monthly cathodic protection surveys conducted in March and September 2008 are presented in appendix B graphical format. These results show that the pipeline potential is generally within acceptable limits of -0.850 V to -1.175 V OFF potential versus copper/copper sulphate half cell. High potentials were reported during the March survey at a number of locations due to the affects of tellurics which require further investigation. During the September survey readings between KP 416 and KP 525 were affected by power outages in the area. At Port Bonython the buried monolithic insulating joint was excavated and inspected during October and November. The work scope included the excavation and inspection of approximately 10 meters


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of pipeline coating between the Port Bonython Plant pig receiver and a buried monolithic joint and 6 meters of pipeline coating upstream on the northern side of the monolithic joint. The work scope also included the installation of six sacrificial magnesium anodes to improve cathodic protection potentials on the 10 meter section of pipeline between the pig receiver and monolithic joint. 4.3.5 Electrical and Instrumentation Routine quarterly pressure and temperature transmitter calibrations were completed verifying that accurate data was fed into the SCADA system allowing accurate control of the liquids hydrocarbon transportation process ensuring it stays within the design parameters at all times. Six monthly mainline valve operational checks were completed in conjunction with scheduled routine pressure and temperature transmitter calibration tasks. In 2008 a project was carried out to upgrade the transmitters at each MLV site. Work included relocating existing J boxes and removing all existing wiring to the local elements on the MLV sites. Remove the existing 2” conduits used as cable channels. Install new concrete anchor blocks and fit 150mm cable ladder from the Nitrogen cabinet to the MLV Shafer operator, fit new cabling to the Pressure TX, The Temperature TX, the Nitrogen Pressure Switch and the Shafer Operator itself. New Ex d glands to be fitted to all MLV cables and wire numbers manufactured and fitted to wire cores on site using Brady printing and carrier system. Fit new Pressure and temperature Transmitters and calibrate them to 0 - 100 OC and 0 - 12000 kPa respectively. Fit a new J box to facilitate this wiring and install sun covers to cable ladder to protect new cables from UV damage. Carry out an as left calibration on the new TXs after installation including point to point back to TSCC. A new power gas line was run to the Shafer operator and redundant cabling removed from sites. 4.3.6 Communications All process variables and valve control functions are communicated to the central control system located 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. 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 2008 to ensure the communications system provided a high 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. With the exception of several minor short period communication outages there were no significant communications issued reported in 2008.


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4.3.7 Mechanical Routine six monthly mainline valve and scraper station maintenance tasks completed. All pipeline pressure regulator and over pressure protection devices were tested in accordance 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 or as a part of mechanical maintenance routines. In addition to the routine activities above, the maintenance staff have investigated and solved a number of corrective maintenance issues that have been identified as a result of the routine activities or from failures that occur in the day to day operation of the pipeline system. All mechanical and ancillary equipment is considered to be in good condition and fit for purpose

4.3.8 Pigging operations In 2008 unforeseen issues at the Moomba plant required the Moomba to Port Bonython pipeline to be pigged on three occasions to remove water contaminates from the pipeline and monitor bacteria levels. The first exercise was carried out in August 2008 with the pig launched at Moomba and received at Port Bonython. The second exercise was carried out in September 2008 with the pig being launched at Pump Station No2 and received at Port Bonython. This exercise could not be carried out on the entire pipeline system due to a flow nozzle restricting access on the pipeline between Moomba and Pump Station N02. The third exercise was completed in December 2008 with the pig being launched at Moomba with an inhibitor slug and received at Port Bonython. Sludge samples taken during from each of the cleaning pig runs were analysed by Santos Port Bonython laboratory staff. The results of samples taken during the August and December cleaning pig runs in 2008 indicated an increase in bacterial activity >3. Chemical injection checked and confirmed as operational as required. Additional pig cleaning runs undertaken along with a chemical batch treatment. Increased pigging runs ongoing to confirm bacterial activity levels are with in acceptable limits.

4.3.9 Operating Restrictions The flow nozzle restricting access on the pipeline, between Moomba and Pump Station No. 2, was successfully removed, however the integrity of the pipeline may have been compromised during the recovery of the nozzle and associated items. Santos conducted risk and engineering assessments, which led to Santos reducing the maximum allowable operating pressure until the integrity of the pipeline is confirmed by means of an ILI.


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5 INCIDENT REPORTING There was one incident reported to PIRSA in 2008 resulting from an unauthorized encroachment on the pipeline easement when a contractor carried out deep ripping of rabbit burrows on the easement and within 13 metres of the pipeline without prior approval.

6 LAND MANAGEMENT

6.1 Land Owner Liaisons There are 44 landholders along the Moomba to Port Bonython Liquids Line system. All available landowners on the pipeline were contacted during the year and a questionnaire was completed as part of each visit. The questions were centered on people’s contact details, current and proposed land use, awareness of the pipeline location and 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 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 2009 calendar reminding the landowner of pipeline safety was also forwarded in December 2008. The Department of Defence is proposing to purchase land with the Moomba to Port Bonython Liquids Pipeline easement for the purpose of extending the Cultana Army Range north of Whyalla. The custodian of the pipeline easement is the Natural Gas Authority of South Australia, Santos own the pipeline and Epic Energy are contracted to operate and maintain the pipeline. Epic Energy are providing information to support Santos with negotiations with the Department of the Premier and Cabinet to ensure future army training activities are restricted or controlled within the vicinity of the pipeline to ensure a safe environment for the pipeline and general public. Epic Energy are providing Santos with support to liaise with engineering consultants engaged to carry out investigations to assess engineering works necessary to develop a proposed Port Bonython Fuels Terminal and refinery site, to be located near the existing Santos Facilities at Port Bonython

6.2 Pipeline Safety Awareness Epic Energy implements a Community Awareness Program, which entails holding awareness meetings with communities along the pipeline route. To cover the various pipeline infrastructure that Epic Energy operates and maintains in South Australia Epic Energy have set a target of 45 meetings annually with CFS, MFS, Police, Ambulance, SES, councils, earth moving contractors, irrigation and fencing installation contractors Several of these meeting 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:-This presentation will be tailored to the specific audience and where appropriate Epic Energy will discuss the differences between Liquids Hydrocarbon and natural gas transportation as both pipeline systems exist in a number of areas within South Australia.) A total of seven Pipeline Safety Awareness Presentations were carried out to Utilities, Emergency Services and Councils in areas associated with the Moomba – Port Bonython Liquids Line in 2008.


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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 2008 Epic Energy received and attended seven 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. 7 ENVIRONMENTAL MANAGEMENT The 2007 Statement of Environmental Objectives (SEO) for the Moomba to Port Bonython Liquids Line (PL2) came into force when notice of approval was published in the South Australian Government Gazette in January 2008. In the Environmental Audit report conducted by an independent consultant (RPS ECOS) during 2007, several minor recommendations for improvement were addressed in 2008. Epic Energy is currently establishing a new Environmental Management System (EMS) and this would enhance the awareness and knowledge of Epic personnel and contractors on the general requirements of the specific environmental issues that relate to the day-to-day activities. Following on the major erosion of water ways on Moomba to Port Bonython Liquids Line due to heavy rains and flooding in 2007, Epic Energy restored the depth of cover at the five critical locations between Pump Station 3 and Port Bonython early 2008. To ensure the compliance of the environmental requirements [2.1] in the Statement of Environmental Objectives, the action report for low depth of cover on the Moomba to Port Bonython Liquid Line was prepared to continue addressing the erosion problem in 2009. The report covers low depth of cover at watercourse crossings, railway crossings, road crossings and pipeline in general which were captured in the 2007-2008 Risk Assessment Action project. All the low depth of cover data was categorized in to three priorities based on the risk profile. The first priority will attract the immediate attention which some of them were addressed in 2008 and the remaining will be continued early 2009. The second priority will be scheduled once the critical ones are completed. The third priority areas will be monitored over time and taken into consideration for any restoration. During 2008 heavy rains and flooding again caused low depth of cover issues with the pipeline exposed at one location. Repairs were carried out immediately to restore the depth of cover however this repair can only be classified as a temporary repair as the expectation and history shows the soils will again erode with heavy flooding. An engineering review is to be carried out in first quarter of 2009 to determine permanent design repair strategy to eliminate further reoccurrences. Appendix A contains the “Assessment of Declared 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”. During 2008 a new Emergency Response Manual was developed, tested and approved. An emergency exercise training drills was carried out specifically on the Moomba to Port Bonython


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Liquids Line in 2008, The objectives of the emergency exercise drill was to test procedures and personnel in several areas, including : • The new Draft Emergency Response Plan • The Incident Commander and his team working out of the Melbourne Office • New roles and responsibilities in an emergency • Communication processes. • First on site preparedness • Temporary and permanent repair procedures Epic Energy continued to test its Emergency Response Plan and personnel throughout the year with two additional emergency response scenarios on other pipeline systems. These included a desktop exercise and a full mobilization exercise. 9 REGULATORY COMPLIANCE Every endeavor is made to ensure that design, manufacture, construction, operation, maintenance and testing of all appropriate facilities, is carried out in accordance with AS2885. There are no known outstanding non compliances for the Liquids Line pipeline that Epic Energy is aware of against: • The Petroleum Act & Regulations 2000 • The Pipeline Licence (PL2) • The Statement of Environmental Objectives Any non-compliance identified is logged in the CMMS where it is tracked to conclusion. Significant items are reported through Santos to PIRSA. All other issues are raised at the quarterly meetings between Santos and Epic Energy and if required at the quarterly Santos/Epic Energy and PIRSA meeting. 10 RISK MANAGEMENT

Epic Energy continually reviews operational risks with assessments including inputs from experienced gas industry personnel and emergency services representatives providing an insight into potential new risks and assisting in the development of appropriate management strategies. Epic Energy utilizes the following risk management strategies to minimize risks to ALARP. • Aerial and ground monitoring of the pipeline easement activities • Safe Work Systems, including Permit to Work • Routine 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 change control • In accordance with AS2885 five yearly metre by metre risk assessment reviews • Pipeline & Safety awareness program • Land ownership and use notification system • Landholder and stakeholder contact program • Participation in state forums for external risk management • Free “1100” Dial before You Dig information system


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11 MANAGEMENT SYSTEM AUDITS

11.1 Environmental Audits No environmental audit is conducted in 2008. An Environmental audit on operations of the Moomba to Port Bonython Liquids Pipeline (PL2) was carried out by an independent consultant (RPS ECOS) in 2007. The audit found the environmental impact of on-ground pipeline operations was minimal with several minor recommendations for improvement to consider. A number of minor recommendations were followed and addressed in 2008. Appendix A contains the “Assessment of Declared Objectives” completed for the Liquids Line. 11.2 Health and Safety Audits During 2008 Epic Energy continued with its program of conducting health and safety audits of its pipeline facilities. There were no issues identified relating specifically to the Liquids line system requiring follow up action. Operational safety information is regularly forwarded to the field maintenance staff via safety alerts and safety bulletins. 11.3 Management Audit Epic Energy has a Management Audit Plan to review policies, procedures and safe work systems to ensure compliance with the various acts, regulations, standards and pipeline licenece requirements. The audit program for 2008 targeted 39 audits for completion in the areas of engineering, maintenance, OH&S, land and environment, control centre and finance. In 2008 work progressed in developing an new Safe Work System (Permit to Work, Working at Heights, Excavation, Confined Space, Job Hazard Analysis, Isolation and tagging procedures, check Lists and Permit Forms), the new system has been scheduled to be introduced into the work force in the first quarter of 2009. 12 REPORTS ISSUED DURING THE 2008 LICENCE YEAR The following reports were generated and forwarded for the Liquids Line pipeline in 2008: • PL 2 Annual Report for 2007 (forwarded early 2008) • Emergency Response Exercise Report

13 VOLUME OF PRODUCT TRANSPORTED 1,128,534 tonnes of product was transported through the Liquids Pipeline in 2008, this equates to a gross volume of 1630624 m3 and a net volume of 1601714 m3 14 PROPOSED OPERATIONAL ACTIVITIES FOR 2009 During 2009 the following activities are proposed for the Liquids Line pipeline: • Complete all scheduled routine maintenance activities and corrective maintenance identified • Submission of a 2008 Annual Report in early 2009 • Conduct a Cleaning Pigging Run(s) and continue monitor bacteria activity


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• Install Cathodic protecting corrosion monitoring probes. • Excavate and repair coating defects identified in the 2008 DCVG survey. • Carry out long term restoration work on low depth of cover areas identified in 2008 • Conduct ILI between Moomba and Pump Station No. 2 and assess integrity. 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 Liquids Line. Outlined below are the KPI results for 2008.

2008 Target 2008 Actual 2008 Comment Cathodic Protection Percentage of the pipeline protected to AS2832.1 level

100% 99% This represents a satisfactory level of protection over the length of the pipeline

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

3 or less positive

>3 Positive

During the 2008 cleaning pig runs monitoring for bacterial activity found that levels had increased.

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 0 No activities of this nature that involved Epic Energy the owner or a third party were identified during the reporting period

Exposure of pipeline due to washout and wind erosion

0 1 Water erosion from heavy rains and flooding during 2008 caused low depth of cover in several areas and the pipeline to be exposed at one location.

SCADA and Leak Detection Reliability of SCADA and Leak Detection System

100% 97.9% During the reporting period a number of communications outages were caused as a result of inclement weather or equipment failures and these were rectified in a timely manner.

Environmental Number of uncontrolled hydrocarbon releases

0 0 There were no uncontrolled releases of hydrocarbons reported in 2008

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

100% 100% Patrols had to schedule in 2008 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 2008 indicated the pipeline is in sound condition and is capable of operating at set parameters with no restrictions. The CP Survey results supplied in Appendix B indicate the protection level meets the targeted performance levels for this system. The pipeline is considered to be in good working condition and well maintained.


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Appendix A – Assessment of Declared Objectives


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Objectives and Assessment Criteria OOBJECTIVE GOAL BJECTIVE ACHIEVED OBJECTIVE ACHIEVED

YES / NO

COMMENTS

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

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 the reporting period disruption to any landowner was considered minimal and compliant with this objective.

1. To avoid unnecessary disturbance to 3rd party infrastructure, landholders or land use 1.2 To minimise

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

Yes No landowner complaints or negative feedback for any landowner was received during this reporting period.

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

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

No Heavy rains and flooding caused areas of erosion and reduced depth of cover to the easement and existing waterways. Immediate temporary repairs have been carried out with a full engineering review scheduled for 2009.

2.2 To prevent soil inversion

Vegetation cover is consistent with surrounding land.

No evidence of subsoil on surface (colour).

Landholder signoff.

Yes Policies and procedures in place to ensure any activities carried out prevent soil inversion

2. To maintain soil stability / integrity

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.

No Heavy rains and flooding caused areas of erosion and reduced depth of cover to the easement and existing waterways. Immediate temporary repairs have been carried out with a full engineering review scheduled for 2009.


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

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 regrowth is a time and rainfall dependent process.

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

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

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 this reporting period excavation activities carried out in accordance with Epic Energy policies and procedures to ensure compliance with this objective.

3. To maintain native vegetation cover on the easement

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

Impacts to native fauna as a result of excavation work will be restricted to as low as reasonably practicable

Yes During this reporting period excavation activities carried out in accordance with Epic Energy policies and procedures to ensure compliance with this objective.

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

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 was consistent with adjacent land.

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

5.1 To maintain current surface drainage patterns

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.


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6.1 To prevent spills occurring, and if they occur minimise their impact (refer also Objective 7)

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 1993.

Yes There were no incidents or reported spills on the Moomba to Port Bonython Liquids Line during 2008

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

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

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 and therefore this is not an issue. The only decommissioned burn pit remains at Pump Station 3 and is continually monitored .

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

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 hydrotest water and waste water (water bath heaters and washdown water) disposal

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

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

6. To avoid land or water contamination

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

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.


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

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

Yes During the reporting period three pigging operation were completed with the liquid waste being captured in purpose built oil collection tanks.

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

Intelligent pigging occurs on an as condition basis.

Corrective and/or preventative action implemented in a timely manner.

Yes Ongoing pipeline exaction, inspection and repair program has been implemented as a result of the ILI pigging data and the DCVG survey results.

The results of samples taken during the cleaning pigging runs are tested to ensure acceptable bacteria levels

7. To minimise the risk of oil spills from the pipeline or pipeline infrastructure

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

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

No There was one reportable unauthorized third party activity on the Moomba – Port Bonython pipeline easement during 2008

8.1 To adequately protect public safety during normal operations

No injuries or incidents involving the public.

Demonstrated compliance with AS 2885.

Emergency procedures implemented and personnel trained.

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

8.2 To adequately protect public safety during maintenance

No injuries or incidents involving the public.


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. To minimise the risk to public health and safety

8.3 To avoid fires associated with pipeline maintenance activities

No pipeline related fires.


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


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

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 An emergency response exercise was completed on the Moomba – Port Bonython Pipeline during 2008 in accordance with the licence obligations.

Epic Energy carry out a minimum of two emergency exercise training drills annually.

9. Minimise impact of emergency situations

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).

Yes No emergency situations have occurred on the Moomba – Port Bonython Pipeline during this reporting period.

10. To minimise noise due to operations

10.1 To ensure operations comply with noise standards

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. The operation of the pipeline does not require any pumping equipment or the release of high pressure product and therefore no noise is generated from this source.

11.1 To eliminate uncontrolled atmospheric emissions

No uncontrolled atmospheric emission. Yes No spills or uncontrolled hydrocarbon releases recorded in 2008

11. To minimise atmospheric emissions

11.2 To minimise the generation of dust.

No complaints received.

No dust related injuries recorded.

Yes During the reporting period three excavations occurred on the pipeline system. These excavations were carried out in a remote area of the state and they in no way caused any noticeable increase in the level of dust emissions near the excavation site.

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

12.1 To ensure that identified cultural sites are not disturbed

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 2008 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 2008 Surveys Protection On/Off potentials taken in March and September survey indicated that the pipeline was generally protected for the whole of 2008 and all potentials are compliant with AS 2885 and AS 2832.1. The information presented below in Table 1 is the cathodic protection potentials that were taken during both March and September

Moomba to Port Bonython Liquids PipelineOFF Potential vs. KP (Full Line Surveys)

Date Between 1/1/08 To 31/12/08

500

700

900

1100

1300

1500

1700

1900

0 100 200 300 400 500 600Kilometres

mV

Sep 08 Mar 08

Documents

2008 Annual Report MOOMBA TO PORT BONYTHON LIQUIDS PIPELINE Pipeline Licence 2minerals.statedevelopment.sa.gov.au/__data/assets/pdf... · 2015-04-30 · MOOMBA TO PORT BONYTHON LIQUIDS