2010 annual report -...

24
2010 Annual Report Production Operations Katnook & Ladbroke Grove Complex Petroleum Production Licences PPL62, PPL168 & PPL202 Pipeline Licence PL19 Onshore Otway Basin South Australia This report has been prepared in accordance with the requirements of the Petroleum and Geothermal Energy Act 2000 and the Petroleum and Geothermal Energy Regulations 2000 and covers all of the operations conducted for PPL 62, 168 & 202 during the period 1 January 2010 – December 31 2010 and PL19 during the period 20 November 2009 to 31 December 2010 by Adelaide Energy Limited. This report was provided to PIRSA February 2011

Upload: others

Post on 04-Aug-2020

8 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

2010 Annual Report

Production Operations Katnook & Ladbroke Grove Complex

Petroleum Production Licences PPL62, PPL168 & PPL202

Pipeline Licence

PL19

Onshore Otway Basin

South Australia

This report has been prepared in accordance with the requirements of the Petroleum and Geothermal Energy Act 2000 and the Petroleum and Geothermal Energy Regulations 2000 and covers all of the operations conducted for PPL 62, 168 & 202 during the period 1 January 2010 – December 31 2010 and PL19 during the period 20 November 2009 to 31 December 2010 by Adelaide Energy Limited. This report was provided to PIRSA February 2011

Page 2: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

2 | P a g e

CONTENTS

1  INTRODUCTION ........................................................................................................................ 4 

2  PERMIT SUMMARY ................................................................................................................... 5 

3  REGULATED ACTIVITIES .......................................................................................................... 6 

3.1  Reservoir And Down Hole Work ........................................................................................ 6 3.1.1  Reservoir Management ....................................................................................................... 6 

3.1.2  Well Schedule ...................................................................................................................... 6 

3.1.3  Wellbore Activities ................................................................................................................ 7 

3.2  Production and Processing ................................................................................................ 8 3.2.1  Reserves & Deliverability ..................................................................................................... 8 

3.2.2  2010 Production ................................................................................................................... 8 

3.2.3  2011 Production Forecasts .................................................................................................. 9 

3.2.4  Maintenance Activities ......................................................................................................... 9 

3.2.5  Emergency Response Exercises ....................................................................................... 10 

3.2.6  Infrastructure Construction ................................................................................................ 10 

3.2.7  Production Testing ............................................................................................................. 10 

3.2.8  Equipment upgrades .......................................................................................................... 10 

3.2.9  Produced Formation Water Disposal ................................................................................. 11 

3.3  Pipeline / Flowline Construction & Operation .................................................................. 11 3.3.1  Risk Management Review ................................................................................................. 11 

3.3.2  Construction ....................................................................................................................... 11 

3.3.3  Operations & Maintenance Activities ................................................................................. 11 

3.3.4  Emergency Response Exercises ....................................................................................... 12 

3.3.5  Land Management ............................................................................................................. 13 

3.3.6  Environmental Management .............................................................................................. 13 

4  COMPLIANCE ISSUES ............................................................................................................ 14 

4.1  Licence and Regulatory Compliance ............................................................................... 14 4.1.1  Licence Non-Compliance ................................................................................................... 14 

4.1.2  Regulatory Non-Compliance .............................................................................................. 14 

4.1.3  Compliance with Statement of Environmental Objectives (SEO) ...................................... 14 

4.2  Management Systems ..................................................................................................... 21 4.2.1  Health, Safety & Environment Management System (HSEMS) ........................................ 21 

Page 3: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

3 | P a g e

4.3  Reports and Data Submissions ....................................................................................... 21 

4.4  Incidents .......................................................................................................................... 23 

4.5  Threat Prevention ............................................................................................................ 23 

4.6  Future Work Program ...................................................................................................... 23 

5  2010 Expenditure ...................................................................................................................... 25 

Figures

Figure 1: Location of the Katnook and Ladbroke Grove Gas Plants ................................................. 4

Tables

Table 1: Pipeline Licences PL19 Design and Operating Parameters ............................................... 5 

Table 2: Total Gas Production To 31 December 2010 ........................................................................ 7 

Table 3: Estimated Katnook Gas Field Reserves @ 31 December 2010 .......................................... 8 

Table 4: 2010 Katnook Gas Plant Production Figures ....................................................................... 8 

Table 5: 2010 Well Production ........................................................................................................... 9 

Table 6: Katnook Gas Plant Production Forecast For 2011 ............................................................... 9 

Table 7: Product transported through PL19, during 2010 ................................................................ 11 

Table 8: List of Licence Non-Compliances for Current Reporting Year ............................................ 14 

Table 9: List of Regulatory Non-Compliances for Current Reporting Year ....................................... 14 

Table 10: Assessment of PL19 Construction vs SESA Pipeline Statement of Environmental Objectives (Construction) ......................................................................................... 15 

Table 11: Compliance with the Statement of Environmental Objectives for the Production and processing of Petroleum Products and Associated Activities at the Katnook and Ladbroke Grove Gas Plants ..................................................................................... 20 

Table 12: List of Report and Data Submissions During the Current Licence Reporting Year ......... 21

Page 4: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

4 | P a g e

1 INTRODUCTION This document describes the 2010 operational activities associated with the Katnook Gas Plant, Ladbroke Grove Gas Plant and the related gas fields located in the Otway Basin, in the South East of South Australian. The Katnook and Ladbroke Grove Gas Plants are located approximately 10 kilometres south of the township of Penola (Figure 1).

In accordance with requirements of Section 33 of the Petroleum and Geothermal Regulations 2000, this report covers:

1. The work conducted for the 12 months from 1 January to 31 December 2010 for:

• Petroleum Production Licence 62 (PPL62) – granted on 27 November 1990;

• Petroleum Production Licence 168 (PPL168) – granted on 26 June 1999;

• Petroleum Production Licence 202 (PPL202) – granted on 3 October 2003.

2. The construction, operations and maintenance activities conducted for the period from 20 November 2009 to 31 December 2010 for:

• Pipeline Licence 19 (PL19) – granted to Adelaide Energy Limited on 20 November 2009.

Figure 1: Location of the Katnook and Ladbroke Grove Gas Plants

Page 5: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

5 | P a g e

2 PERMIT SUMMARY The Katnook, Ladbroke Grove, Haselgrove and Haselgrove South fields are located within PPL62 and PPL202 while the Redman Field is within PPL168 (Figure 1).

Katnook Field came on line from February 1991. Gas is processed via low temperature separation to achieve pipeline hydrocarbon and water specifications. The plant ran free flow from wellhead pressures until mid 2003, when compression was added to provide adequate pressure drop for low temperature separation. Condensate recovered from the process is trucked to the Shell Refinery in Geelong, Victoria. Total cumulative production from the Katnook complex at the end of December 2010 was 37.1 PJ.

The Ladbroke Grove facilities were completed in December 1999 with production from the Ladbroke Grove gas field commencing in January 2000. After processing to remove liquid content, produced gas was delivered to the neighbouring Ladbroke Grove Power Station. Production from the Ladbroke Grove field ceased in December 2006, when gas supply could no longer meet power station demand.

Origin Energy (Origin) operated the plant and associated gas fields within PPL 62, 168 and 202 from the 1990s to 2008. In late 2008, Origin completed a transaction transferring these assets (100% interest) to Adelaide Energy Limited (ADE), subject to Ministerial approval, which was ultimately granted in June 2009.

PL19 was granted to ADE in November 2009 to connect existing wells within Petroleum Exploration Licence 255 (PEL255), Petroleum Retention Licence 1 (PRL1), Petroleum Retention Licence 2 (PRL2) and PPL202 to existing operational flow line infrastructure which is connected to Katnook Gas Plant (Figure 1). PL19 construction was completed in March 2010 and commissioned in April 2010. The design parameters for these four pipelines are shown in Table1.

Table 1: Pipeline Licences PL19 Design and Operating Parameters

Pipeline Jacaranda

Ridge2 (PEL255)

Limestone Ridge1 (PRL2)

Wynn2 (PRL1)

Haselgrove South 2

(PPL202)

Date Constructed Jan-Mar 2010 Jan-Mar 2010 Jan-Mar 2010 Jan-Mar 2010

Date commission April 2010 April 2010 April 2010 April 2010

Length 10.0km 4.8km 4.8km 4.0km

Diameter DN100 DN80 DN80 DN80

Wall Thickness, mm 4.8mm 4.8mm 4.8mm 4.8mm

Pipe Grade API 5L Grade B API 5L Grade B API 5L Grade B API 5L Grade B

MAOP, kPa 10,200 10,200 14,180 14,180

Coating Yellow Jacket Yellow Jacket Yellow Jacket Yellow Jacket

Cathodic Protection Sacrificial anodes

Sacrificial anodes

Sacrificial anodes

Sacrificial anodes

Mainline Valves 1 1 1 1

Compressor Stations none none none none

Meter Stations none none none none

For the duration of the licence year, the licensee for PPL62, 168, 202 and PL19 was 100% Adelaide Energy Limited.

Page 6: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

6 | P a g e

3 REGULATED ACTIVITIES

3.1 RESERVOIR AND DOWN HOLE WORK

3.1.1 Reservoir Management

Management of each field’s gas production has been planned based on the following considerations:

• Safety and environmental considerations;

• Maximising gas recovery from the field;

• Reservoir considerations;

• Wellbore considerations;

• Plant constraints and operational considerations;

• Field deliverability and production optimisation;

• Data acquisition and field monitoring;

• Maximising condensate revenue.

Acquiring production information and monitoring the wellhead shut-in and flowing pressures on a routine basis are essential for updating the field gas deliverability forecast and ongoing reservoir evaluation.

3.1.2 Well Schedule

The following well schedules have been programmed to meet all the reservoir and operating considerations.

There are 6 low-inerts gas producers in PPL 62 & 168 and 202: Katnook 2, Katnook 3, Redman 1, Haselgrove 1, Haselgrove 2 and Haselgrove South 1 and Haselgrove South 2. The Katnook Field came on production from February 1991 to supply gas to the southeast market. Katnook was the only producing field in this area until end of May 1997 when the Haselgrove Field commenced production. Katnook 3 was shut in during 2003 due to water handling difficulties in the gas plant. Several unsuccessful attempts were made to put the well back on online and the well remains shut in. In 2010, attempts to flow Haselgrove South 2 were unsuccessful.

Only Katnook 2, Redman 1, Haselgrove 1 and Haselgrove South 1 from within PPL62, PPL168 and PPL 202were produced in 2010.

The Ladbroke Grove Field is high CO2 Gas filed and came on production from January 2000 to supply gas to the Ladbroke Grove power generation station. Ladbroke Grove 2 and 3 were both high CO2 gas producers. In late 2004, water production began increasing in Ladbroke Grove 3, and the well ceased contributing to sales in April 2005. Ladbroke Grove 2 continued to supply gas to the Ladbroke Grove power station until December 2006, when the well was shut in.

Gas from other licence areas was also processed through the Katnook Gas Plant. This included gas/condensate from:

• Limestone Ridge well, within PRL1 produced from April 2010 onwards;

• Jacaranda Ridge 2 well within PEL255 produced under Extended Production Testing from June 2010;

• Patrick 1 and Hollick 1 wells within PEL255 produced under Extended Production Testing from December 2010.

Page 7: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

7 | P a g e

Table 2: Total Gas Production To 31 December 2010

Well Gas Production

(Million scm)

Low Inert Gas Wells Katnook 2 Katnook 3 Haselgrove1 Haselgrove 2 Haselgrove South 1 Haselgrove South 2 Redman 1

173 301 114 16 176 0

162 High CO2 Gas Wells

Ladbroke Grove 2 Ladbroke Grove 2

906 472

Other Permit Wells Limestone Ridge 1 (PRL2) Jacaranda Ridge 2 (PEL 255) Patrick 1 (PEL 255) Hollick 1 (PEL 255)

10 3 0 0

3.1.3 Wellbore Activities

3.1.3.1 Monitoring of Wells

All wells were subject to tubing and casing annuli pressure testing on a routine basis to ensure well integrity.

3.1.3.2 Static Gradient Surveys

Static gradient surveys and drift runs were conducted during October and November 2010 in two wells: Katnook 1 and Haselgrove South 2.

3.1.3.3 Kinley Calliper Surveys

No Calliper surveys were conducted in 2010.

3.1.3.4 Liquid Evaluation Tests

No wellsite separator tests were conducted in 2010. Liquid production from some individual wells was measured at Katnook Plant when only one well was producing, using tank dips to calibrate the liquid flow meter readings, and this enabled allocation of overall liquid production to individual wells in each monthly report.

3.1.3.5 Water Shutoff Operation

No water shutoff operations were conducted in 2010.

3.1.3.6 Production Logging Testing

No production logging testing was conducted in 2010.

3.1.3.7 Re-perforation

No well re-perforation operations were conducted in 2010.

Page 8: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

8 | P a g e

3.2 PRODUCTION AND PROCESSING

3.2.1 Reserves & Deliverability

Cumulative gas production from fields that drain the Pretty Hill Formation totalled 69.5 PJ as at 31 December 2010. Of this value, the Ladbroke Grove gas field accounts for 32.4 PJ and the Katnook Complex accounts for 37.1 PJ. Initial gas reserves for these areas were 32.4 PJ and 37.3 PJ, respectively.

The following table summarises the field’s initial and remaining gas reserves.

Table 3: Estimated Katnook Gas Field Reserves @ 31 December 2010

Fields Total Initial Gas Reserves (PJ)

Total Gas Production at 31

December 2010 (PJ)

Total Remaining Gas 2P Reserves at 31 December 2010

(PJ) Katnook 18.6 18.41 0.19

Haselgrove and Haselgrove South 12.2 11.83 0.37

Redman 6.48 6.35 0.13

Ladbroke Grove 32.37 32.37 0.00

Total 69.65 68.49 0.69

The Katnook, Haselgrove and Haselgrove South and Redman remaining gas reserves at 31 December 2009 were determined in late January 2010 using decline analysis incorporating:

• predicted production gains due to PL19 connection in 2010;

• Dyna-Coil installations (Aug 2009); and

• Gasjack wellsite compressors that were installed on Haselgrove wells in early January 2010.

3.2.2 2010 Production

Throughout 2010, production data spreadsheets for the Katnook, Haselgrove, Haselgrove South and Redman reservoirs were forwarded to PIRSA monthly. Total production for 2010 was 25.069 mscm (1,009 TJ) of gas and 2781 KL of condensate.

Katnook 2, Haselgrove South 1, Redman 1 and Haselgrove 1 were the main producing wells in 2010.

The following table shows the monthly production figures for 2010.

Table 4: 2010 Katnook Gas Plant Production Figures

Month Katnook Complex (TJ) Condensate (KL)

January 41.0 58 February 50.6 81 March 26.2 53 April 53.4 90 May 142.2 218 June 111.8 369 July 111.1 505 August 98.9 469 September 94.0 255 October 82.1 155 November 95.1 229 December 102.1 299

Total 1008.5 2781

Page 9: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

9 | P a g e

Table 5: 2010 Well Production

Gas Field 2010 Cumulative Production

Gas scm

Condensate kL

Water kL

Gas scm

Condensate kL

Water kL

Katnook 4,440,230 140 496 474,094,043 15,943 16,787 Haselgrove 2,225,576 145 345 129,709,656 10,891 4,175 Haselgrove South 1,354,908 112 154 175,760,246 15,490 6,282

Redman 3,755,193 432 319 161,860,249 17,497 6,259 Jacaranda Ridge/Patrick 3,495,265 1,399 138 3,408,558 1,386 132

Limestone Ridge 9,798,224 553 340 9,798,224 553 340

TOTAL 25,069,396 2781 1,792 954,717,684 61,775 33,981

3.2.3 2011 Production Forecasts

Pursuant to Regulations 33(2) (i) and (j) under the Act, an annual report must contain:

“In the case of a production licence – an estimate of the volume likely to be produced, wasted, stored or sold under the licence during the ensuing year, or such longer period as the Minister may require”; and

“In the case of a production licence – an assessment of the development activities proposed to be undertaken under the licence, including the number of completions that are expected to occur, during the ensuing year, or such longer period as the Minister may require”.

Table 6: Katnook Gas Plant Production Forecast For 2011

Month (2009)

Katnook Complex Gas (TJ)

Condensate (KL)

January 60 200 February 60 200 March 60 200 April 80 200 May 70 200 June 70 200 July 80 200 August 80 200 September 80 200 October 60 200 November 60 200 December 60 200 Total 884 2600

3.2.4 Maintenance Activities

On-going maintenance of the Katnook and Ladbroke Grove Plant Facilities undertaken during 2010 included:

• Servicing of hotwater circulation system components;

• Maintenance of cladding on pipework;

• Push button plant shut down and ESD inspections and tests;

• Instrumentation calibration (including calorimeter);

Page 10: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

10 | P a g e

• Overhaul of plant in let XSV’s and actuators;

• Routine 6 monthly fire extinguisher inspections;

• General service of gas compressor engines (750hrs);

• Compressor enclosure gas detection system inspection;

• Hydrotesting of Katnook #1 and Ladbroke Grove #2 flow lines;

• Routine Well head surveys;

• Air compressors maintenance;

• On-going Ground Maintenance including weed spraying and slashing at well sites and plant.

3.2.5 Emergency Response Exercises

In accordance with Regulation 31(3) of the Petroleum and Geothermal Energy Act 2000, an emergency response drill was conducted at the Katnook Gas Plant on 24 June 2010, with a report submitted to meet the requirements of Regulation 31(6) .

The Emergency response procedure was found to be effective during this emergency drill exercise with all personnel involved in the emergency able to clearly identify their roles and responsibilities and demonstrate their competency to execute the procedures.

In October 2010, the Emergency Response Plan was reviewed, updated and re-distributed as part of standard annual review process.

3.2.6 Infrastructure Construction

During 2010, a number of plant and field facility projects were undertaken and will continue to be progressed over 2011.

• Katnook 1 (PPL62) water injection project to dispose of produced formation water into the Windermere Sandstone and Katnook Sandstone continued with surface facilities being constructed and tested. The water injection project gained PIRSA and EPA approval in 2009.

• Downhole surfactant Injection continued to operate on the three (3) well where Dyna-Coils were installed in 2009: Haselgrove (PPL62), Haselgrove South 1 (PPL62) and Redman 1 (PPL168).

• New wellsite facilities were designed and constructed at Haselgrove South 2 (PPL202), while wellsite modifications and improvements were made at Haselgrove South1 (PPL62) and Redman 1 (PPL168) to enable connection of new flow lines (PL19) and gas jack compressors.

• Four wells were connected to Katnook Plant by new pipelines (PL19) in April 2010: Haselgrove South 2 (PPL202) and three wells from outside the immediate Katnook Complex Area called Wynn 2 (PRL1), Limestone Ridge 1 (PRL2) and Jacaranda Ridge 2 (PEL255).

• Gasjack wellsite compression was installed in January 2010 on Haselgrove wells (PPL62) and Redman 1 (PPL168). Connections will be added to other well sites in 2011 to enable Gas Jack compressors to be mobilised to other operating wells.

3.2.7 Production Testing

No wells within PPL 62, 168 or 202 undertook production testing. However Jacaranda Ridge#2 and Patrick#1 (PEL255) production testing was processed through Katnook Gas Plant.

3.2.8 Equipment upgrades

During 2010, the Katnook Gas Plant control system, Citect was upgraded. This included radio surveys and PLC upgrade.

Page 11: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

11 | P a g e

3.2.9 Produced Formation Water Disposal

During 2010, Adelaide Energy Limited continued to progress the K#1 water Re-injection Project with the aim to dispose well formation water. This project is still on-going with various pumps being tested. As such, continuous water disposal has not yet commenced.

Formation water produced during 2010 has been stored at existing ADE ponds. Water levels have been managed in compliance with the Statement of Environmental Objectives for the Production and Processing of Petroleum Products and Associated Activities at the Katnook and Ladbroke Grove Gas Plants (SEO)

3.3 PIPELINE / FLOWLINE CONSTRUCTION & OPERATION

3.3.1 Risk Management Review

PL19 is a new pipeline system that was constructed in 2010 to connect new ADE wells to existing pipe infrastructure and hence to the Katnook Gas Plant . Design was undertaken by GPA Engineering while construction was carried out by CDP/DTM.

Formal risk assessments, reviews and analysis were completed as part of the design, construction and commissioning process. The issues raised in these risk assessments were addressed as required under AS2885 and under the South Australian Petroleum Act 2000 approval process. The next formal risk assessment is due in 2015.

3.3.2 Construction

Construction of the 25 km underground pipeline (PL19) began in January 2010 and was completed in March 2010. Graders and bulldozers were used to clear the right-of-way prior to the laying and burying of the pipe. Vegetation and topsoil were stockpiled separately along the right-of-way. The spoil excavated by the trenching machine was also stockpiled on the right-of-way.

Excavators were used to lower pipe into the trench and trench spoil was returned in to the trench followed by top soil.

Flowline integrity was verified using hydrostatic testing in accordance with AS2885.5.

The easement has been re-contoured to match the surrounding landform and erosion controls were constructed where appropriate.

Warning signs were erected along the easement as per AS2885.1-1997.

3.3.3 Operations & Maintenance Activities

Pursuant to Regulation 33(2) (k) under the Act, an annual report must contain:

“In the case of a pipeline licence – the volume of any regulated substance transported during the relevant licence year”.

The pipeline was commissioned by Adelaide Energy Limited during April 2010. Since this time, W2 and HS2 pipeline have not been operational. Total product transported through PL19 in 2010 was:

Table 7: Product transported through PL19, during 2010

Pipeline Sales Gas (PJ) Condensate (BBL)

JR2 0.143 983.7

LR1 0.390 73.7

W2 0.000 0.0

HS2 0.000 0.0

Page 12: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

12 | P a g e

Operations and maintenance activities have been conducted in accordance with AS2885 and other relevant standards with work programmed at frequencies in accordance with theADE Pipeline Operations & Maintenance Manual.

3.3.3.1 Pipeline Patrol Activities

Regular road patrols were completed in accordance with AS2885.3 requirements ensuring the following:

• Signage is in suitable condition and if not, repairs are made as soon as is practically possible.

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

• Soil erosion due to wind and water is addressed and restored in accordance with the SEO.

• There was no loss of the pipeline depth of cover during the reporting period.

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

• All sites are secure and kept in a good, clean and tidy state.

• Maintenance activities including touching up above ground pipe coating condition, restoring fences, gates, padlocks, signage and fire extinguishers along with other housekeeping activities such as weeds are addressed as required.

During the reporting period no material issues occurred during the patrolling or other routine maintenance activities on the PL19 Pipeline.

3.3.3.2 Leakage Detection

Adelaide Energy monitors the pipelines and flowline for leakage:

1. Remotely from KGP control room, where operators monitor the system pressures, flows and alarms which have been set and fine tuned to indicate leaks in the system; and

2. during ground patrols as staff travel along the pipeline. Operations personnel look for signs of gas leakage such as dust plumes, the sound of escaping gas and dead or dying vegetation.

If a significant leak occurred on the ADE pipeline system personnel are able to isolate pipeline in a timely manner.

During 2010 there were no instances of any leaking valves or equipment on the ADE pipeline/flowline system.

3.3.3.3 Coatings

A DCVG coating condition survey of the pipeline was carried out following construction in March 2010 with no evidence to suggest significant coating deterioration given the pipeline was constructed and commissioned during 2010.

3.3.3.4 Cathodic Protection

The PL19 pipeline permanent cathodic protection system was commissioned during March 2010. The commissioning results show that the pipeline is adequately protected along the entire length with all instantaneous off potential readings being within the accepted AS 2832.1 criteria of greater than 0.85 volts with respect to a copper/copper sulphate reference electrode.

This pipeline is considered to be satisfactorily protected..

3.3.4 Emergency Response Exercises

Two desktop emergency response exercises were undertaken as required under the PL19 licence. A pre-commissioning exercise was undertaken in March 2010, where a scenario was created involving a pipeline rupture.

A post pipeline commissioning emergency response drill was conducted at the Katnook Gas Plant on 27 September 2010 in accordance with PL19 condition 6.4 and Regulation 31(3) of the Petroleum and

Page 13: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

13 | P a g e

Geothermal Energy Act 2000. This was a desktop exercise, specifically directed at testing the ERP and ability of staff to respond to a pipeline incident.

3.3.5 Land Management

3.3.5.1 Pipeline Location and Referral Services

During 2010 Adelaide Energy Limited received and attended two enquiries via the free call 1100 “Dial Before You Dig” asset referral service in relation to third party activity in the vicinity of the PL19 pipeline.

There were no third party encroachments or unauthorized activity on the pipeline easement in 2010.

3.3.5.2 Land Owner Liaisons

The relevant notices of entry were issued to all landholders and occupiers as required befire construction and commissioning activities. Landholders were also contacted and visited through-out all stages of the project and their input sought for the development of a landholder line list that included consultation on fences, gates, water and stock crossing issues.

Landholders were also provided with a project brochure containing a project overview, an explanation of survey and construction activities and how Adelaide Energy proposed to minimize environmental impacts.

Road authorities and local rangers were also contacted regularly and advised on the projects progress.

There were no landowner complaint during construction of PL19.

3.3.6 Environmental Management

A Construction Environmental Management Plan (CEMP) was developed that set out the environmental measures and procedures that were to be implemented during the construction and commissioning phase of the project.

During the reporting period these environmental requirements as detailed in the CEMP and Statement of Environmental Objectives were audited by RPS and found to be generally complied with.

Page 14: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

14 | P a g e

4 COMPLIANCE ISSUES

4.1 LICENCE AND REGULATORY COMPLIANCE Petroleum and Geothermal Regulations, Section 33 (2) (b) and (c) requires:

“a report for the year on compliance with the Act, these regulations, the licence and any relevant statement of environmental objectives, and

a statement concerning any action to rectify non-compliance with obligations imposed by the Act, these regulations or the licence, and to minimize the likelihood of the recurrence of any such non-compliance”.

In 2010, the Katnook Gas Plant was operated by Adelaide Energy in general accordance with the Petroleum and Geothermal Energy Act 2000 and its regulations.

Compliance with the Katnook and Ladbroke Grove SEO has been good with all objectives being met by Adelaide Energy as the Operator. See below for further details.

During 2010, Adelaide Energy commenced a review of the Environmental Impact Statement (EIR) and Statement of Environmental Objectives for the Katnook and Ladbroke Grove Gas Plants (SEO). This has incorporated innovations since 2008 including Dyna-Coil downhole surfactant injection in 3 wells, Gasjack wellsite compression, new pipelines and underground water disposal via Katnook 1. The SEO was submitted to PIRSA for review on 23/12/2010.

4.1.1 Licence Non-Compliance

Table 8: List of Licence Non-Compliances for Current Reporting Year

No. Stated Commitment Reason for Non-Compliance Rectification of Non-compliance

1

Public and products liability Insurance of $100,000,000 to cover regulated activities covered by Pipeline Licence PL19.

Misinterpretation of licence conditions.

ADE is in the process of having an independent assessment for appropriate level of 3rd party insurance.

4.1.2 Regulatory Non-Compliance

Table 9: List of Regulatory Non-Compliances for Current Reporting Year

No. Date Activity Details of Non-Compliance Rectification of Non-compliance

1 April Q1, Cased hole report Report submitted late. ADE has delegated responsibility for all report submissions to Engineering Manager – Otway

4.1.3 Compliance with Statement of Environmental Objectives (SEO)

4.1.3.1 Pipeline Construction Activities

Construction of PL19 was conducted under the SESA Pipeline Statement of Environmental Objectives (Origin Energy 2005). An independent audit of compliance with this and the CEMP was undertaken by RPS during the reporting year. Results found that Adelaide Energy was generally complaint.

Page 15: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

15 | P a g e

Measure/How guidelines which are provided in the SEO below are an indication of how the objectives are met but are not the criteria on which regulatory compliance is determined.

Objective & Goal are the assessment criteria on which regulatory compliance is determined as per Section 100(1)(b & c) of the Petroleum and Geothermal Energy Act 2000.

Table 10: Assessment of PL19 Construction vs SESA Pipeline Statement of Environmental Objectives (Construction)

Objective & Goal

SEO Criteria Compliant Comments

1. To avoid or minimise adverse impacts on soils and terrain

1.1 To minimise soil erosion and sedimentation as a result of pipeline construction

Measure/How Construction Environmental Management Plan (CEMP) contains environmental work procedures (EWP) that specify soil management and reinstatement requirements Preventative measures implemented and monitored in susceptible areas Erosion and sedimentation control structures installed and maintained in susceptible areas Records of induction/training regarding CEMP/EWP requirements Regular inspections of construction areas undertaken to look for evidence of erosion

Yes

Sediment fencing installed along ROW at a number of locations to assist with erosion control. Induction checklist included basic environmental issues associated with pipeline construction. Environmental Inspection Checklists, completed during construction. No evidence of soil erosion on construction easement and easement is consistent with surrounding land

1.2 To prevent soil inversion

Measure/How CEMP/EWP requirements include separate stockpiling of topsoil and sub-surface material during excavation Records of induction/training regarding CEMP/EWP requirements Reinstatement of stockpiles in appropriate order during backfill

No

There was some evidence of some limited mixing of topsoil and subsoil on the LR-1 pipeline and evidence of soil inversion on the W-2 pipeline, which was found during the RPS audit. The issue has been discussed with relevant landowners and no action required by them.

1.3 To mitigate soil compaction if necessary by remedial action

Measure/How Ripping of identified compacted areas Regular inspections undertaken of easement and construction areas to look for evidence of soil compaction

Yes

No evidence of ripping being undertaken on the ROWs. No visual evidence of soil compaction following remediation of pipeline easement (e.g. hard soil, local water pooling) Environmental Inspection Checklists, completed during construction.

1.4 To mitigate impacts of exposing potential acid sulphate soils (ASS)

Measure/How Identification of areas of potential acid sulphate soils Implementing CEMP management procedures for potential acid sulphate soils

Yes

No acid sulphate soils identified on the Penola pipelines

1.5 To reinstate soil and terrain as near as practicable to pre-construction contours and conditions

Measure/How Implement reinstatement requirements specified in CEMP and EWP Records of induction/training regarding CEMP/EWP requirements Regular inspections undertaken of easement and construction areas Installation and monitoring of photo points (environmental monitoring points)

Yes

No specific environmental monitoring locations (Photo points) were established prior to the commencement of construction activities or maintained during construction activities. A significant number of photos were taken and these will be used to monitor ROW. Surface contours on ROW are consistent with adjacent land.

2. To minimise and manage impacts to water resources

2.1 To minimise short term, and prevent long-term,

Measure/How Management requirements specified in CEMP/EWP Records of induction/training regarding

Yes Open cut watercourse on LR-1 pipeline was reinstated to original profile. Watercourse on JR-2 pipeline was bored to avoid impacts.

Page 16: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

16 | P a g e

Objective & Goal

SEO Criteria Compliant Comments

interruption or modification to surface drainage patterns

CEMP/EWP requirements Installation and subsequent removal of appropriate temporary watercourse crossing measures Regular inspections undertaken of easement and construction areas specifically to look at watercourse crossings Installation and monitoring of photo points (environmental monitoring points)

No adverse impacts resulting from watercourse flow reductions or diversions as a result of pipeline construction activities No evidence of altered watercourse flows following reinstatement No evidence of project related erosion of watercourses intersecting or adjacent to the pipeline easement Surface drainage profiles restored Drainage is maintained to pre-existing conditions or better

2.2 To minimise the amount of sediment entering surface water features

Measure/How CEMP/EWP specify management requirements including: No stockpiling of materials in

watercourses/flowlines Use of appropriate sediment and silt

capturing devices Installation of permanent berms on

slopes Minimising period between clearing and

reinstatement at or near watercourses Stabilisation, reinstatement and

revegetation of watercourses and drainage lines

Records of induction/training regarding CEMP/EWP requirements

Yes

Sediment fencing has been installed at various locations in association with watercourses and drains. Temporary sediment fencing on the ROWs was removed once vegetation cover has been re-established on the ROW. Compliance with EPA Environment Protection (Water Quality) Policy 2003

2.3 To minimise disruption to third party use of surface waters

Measure/How Liaison with third party users regarding potential disruptions Minimising period of disturbance and prompt reinstatement in sections of easement intersecting or adjacent to water bodies Installation and subsequent removal of appropriate temporary watercourse/water body protection measures to prevent flow interruptions

Yes

No complaints have been received from landholders or third party users in relation to the construction of the pipelines and use of surface waters.

3. To avoid land or water contamination

3.1 To prevent spills occurring

Measure/How Regular inspections for evidence of soil or water discolouration, vegetation or fauna death Incident / Spill reports Use of spill protection methods where work is completed within or adjacent to environmentally sensitive areas Spill response/cleanup procedures, requiring spills to be: Reported Contained Cleaned-up Cause investigated and corrective

and/or preventative action implemented Ensuring personnel are trained in spill response procedures Containment of all hazardous substances and liquid waste in appropriate vessels/containment areas Compliance with fuel and hazardous waste standards

Yes

An Emergency Response Plan was developed for the construction of the pipelines. There were no reported incidents involving spills during the construction of the pipelines. Hazardous substances were stored in the temporary construction yard at the Katnook Gas Plant site.

Page 17: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

17 | P a g e

Objective & Goal

SEO Criteria Compliant Comments

3.2 To ensure that rubbish and waste material are disposed of in an appropriate manner

Measure/How Waste management requirements including removal of all waste specified in CEMP/EWP Regular inspection 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

Yes

Local waste contractor was employed to supply and remove waste skips and portable toilets during construction. Waste material is contained and disposed of in accordance with Environment Protection Act No Rubbish or litter on easement.

3.3 To prevent adverse impacts as a result of hydrotest water, trench water and waste water (e.g. washdown water) disposal

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

Yes

Hydrostatic testing water was obtained from pre-existing water wells located at the Jacaranda Ridge-2 and Wynn-2 well leases. No chemicals were added to the water and the water was disposed of into pre-exiting lined pits (flare pits, drilling sumps) at the Limestone Ridge-1, Jacaranda Ridge-2 and Wynn-2 well sites. No evidence of impacts to soil, water and vegetation as a result of water disposal (e.g. soil erosion, soil salinity, dead vegetation, water discoloration)

4. To minimise adverse impacts to vegetation and fauna

4.1 To minimise and where practicable avoid clearing of remnant vegetation

Measure/How Utilise previously disturbed areas to avoid remnant vegetation CEMP and alignment sheets identify remnant vegetation requiring management/avoidance Flagging/marking of remnant vegetation requiring management/avoidance Retain trees on ROW where possible Trim vegetation in lieu of removal where possible Restrict disturbance the ROW and approved access and work areas Reduction of ROW width during construction in identified significant areas Obtain any permits / clearance consent required Objective Achieved All areas of remnant vegetation avoided, or where clearance required, significant environmental benefit approved by the Native Vegetation Council

Yes

The pipeline routes have been designed to utilise previously disturbed areas such as fire breaks. Native vegetation has been identified on alignment sheets. A reduced ROW was observed on the W-2 pipeline at KP3.56 where the ROW was narrowed to avoid disturbance to native vegetation. Trimming of overhanging branches on ROW, in lieu of clearing observed. ROW width generally minimised to required width. ROW width cleared to 25-30m wide on fire break sections of Haselgrove South-2 Pipeline. This was following a request from Forestry SA to maintain the fire break during the construction of the pipeline which occurred during the fire danger season. A SEB obligation associated with the construction of the pipelines has been identified by NVC along the firetracks.

4.2 To minimise disturbance to fauna

Measure/How Implement previous measures to minimise impacts to native vegetation Identification and flagging of significant fauna habitats that require management/avoidance during construction and implementation of management requirements Alignment selection to minimise/avoid impacts to important nesting/breeding habitats

Yes

The length of open trench was short and checked daily for fauna. A number of snakes and an echidna were removed from the trenches during construction. No native fauna casualties.

Page 18: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

18 | P a g e

Objective & Goal

SEO Criteria Compliant Comments

Provision of fauna ramps at regular intervals in open trench Daily inspection of open trenches in areas adjacent to remnant vegetation Prompt reinstatement and revegetation of cleared native vegetation

4.3 To appropriately rehabilitate the easement to pre-construction condition, as reasonably practical

Measure/How Revegetation of areas on the easement where remnant vegetation has been cleared during construction with appropriate local native species Installation and monitoring of photo points (environmental monitoring points)

Yes

Species abundance and distribution on the easement is consistent with the pre-construction conditions Disturbances to native vegetation were largely avoided during the construction of the pipelines. Species abundance and distribution on the easement is consistent or better with the pre-construction conditions No complaints received from landholders in relation to regrowth of vegetation on the easement

5. To avoid the introduction or dispersal of weeds and pathogens

5.1 To avoid the spread of environmental/ proclaimed weeds and animal or plant pathogens and undertake control where required

Measure/How Vehicles and machinery cleaned and inspected before entry to project area Vehicle cleaning/washdown register Identification of weeds and pathogens on easement and adjacent land Implementation of control measures of weeds and pathogens on easement Records of outbreaks found, weed control activities and photo-monitoring of significant outbreaks

Yes

The presence of weeds and pathogens on the easement is consistent with or better than adjacent land No new outbreak or spread of pathogens Operations personnel to remain vigilant for any suspected weed outbreaks on the ROW

6. To minimise and manage impacts to heritage sites and values during construction

6.1 To ensure that identified heritage sites are not disturbed, including archaeological heritage, built heritage and culturally significant vegetation

Measure/How Identification of known heritage sites on easement Surveys / cultural heritage monitoring during clear and grade in sensitive areas Implement appropriate protocols for dealing with accidental discovery of cultural heritage material during construction Obtain all necessary approvals in the event of an accidental/unavoidable site disturbance Seek advice from relevant authorities for remediation of site, if required Incident reports

Yes

No heritage sites were identified during the pre-construction survey and no sites were discovered during the construction of the pipelines.

7. To minimise noise due to construction

7.1 To minimise noise impacts associated with the movement and operation of construction vehicles and equipment

Measure/How Schedule normal construction activities near residences in accordance with EPA guidelines Consult with local residents when unavoidable out-of-hours work is required Regular maintenance of construction vehicles and equipment Objective Achieved

Yes No complaints were received in relation to construction noise during the construction of the pipelines. Construction was limited to day time hours. Compliance with EPA guidelines when constructing near residences (South Australia EPA Information Sheet 425/04)

8. To minimise atmospheric emissions

8.1 To minimise the generation of

Measure/How Management requirements specified in CEMP/EWP including use of water trucks

Yes

No complaints were received in relation to dust generation during the construction of the pipelines.

Page 19: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

19 | P a g e

Objective & Goal

SEO Criteria Compliant Comments

dust and sprayers if necessary Records of induction/training regarding CEMP/EWP requirements

9. To minimise disturbance to third party infrastructure, landholders and land use

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

Measure/How Formal easement agreements outlining the legal responsibilities of Origin and landowners Implement CEMP requirements Restrict disturbance the ROW and approved access and work areas Identification of utilities present on or near the easement on alignment sheets Records of communications with landholders / 3rd party prior to and during construction activities Incident reports

Yes

All land/infrastructure restored to satisfaction of the landholder/owner or to undisturbed condition or better. No disturbance outside the ROW and approved access and work areas No complaints received Duration of disturbance did not exceed agreed timeframe

9.2 To minimise disturbance to landholders

Measure/How Restrict disturbance the ROW and approved access and work areas Records of communications with landholders prior to and during construction activities

Yes

No complaints were received from landholders during the construction of the pipelines. Landholder activities not restricted or disturbed as a result of pipeline activities.

9.3 To appropriately reinstate and rehabilitate the easement to allow continuation of current land use activities post-construction

Measure/How Management requirements specified in CEMP and property line list Re-seeding of easement with appropriate pasture or crops Records of communications with landholders prior to and during construction activities Installation and monitoring of photo points (environmental monitoring points)

Yes

Vegetation cover on the easement consistent with the surrounding area or as agreed with landholder

10. To minimise the risk to public health and safety

10.1 To adequately protect public safety during construction

Measure/How Job Hazard Analysis Records of communications with adjacent landholder and 3rd Parties prior to and during construction work including advice of the nature and schedule of activities Use of signage or bunting to identify all potentially hazardous areas Site induction program for all personnel / visitors Adequate implementation of traffic management practices Records of Fitness for Purpose Reports, Risk Assessment and inspections Records demonstrating compliance with AS2885 Records of emergency response plan induction/training for construction personnel Incident Reports

Yes

No injuries or incidents involving the public during construction activities

Page 20: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

20 | P a g e

Objective & Goal

SEO Criteria Compliant Comments

10.2 To avoid fires associated with pipeline construction activities

Measure/How Records of regular fire safety and emergency response training for construction personnel Appropriate fire prevention/control equipment on site Records of relevant permits from local CFA/CFS Incident Reports

Yes

There were no reported incidents of fires occurring during the construction of the pipelines. A permit to conduct welding activities during fire ban conditions was obtained from the Wattle Range Council prior to the commencement of construction activities. There were no reported incidents involving fires during the construction of the pipeline.

4.1.3.2 Operation & Maintenance Activities

Operation and maintenance activities for all flow lines (including PL19), and activities within PPL62, PPL168, PPL202 were governed by the Statement of Environmental Objectives for the Production and Processing of Petroleum Products and Associated Activities at the Katnook and Ladbroke Grove Gas Plants.

Table 11: Compliance with the Statement of Environmental Objectives for the Production and processing of Petroleum Products and Associated Activities at the Katnook and Ladbroke Grove

Gas Plants

Objectives Assessment Criteria Compliant

/ Non-Compliant

Comments

1. Avoid surface water, groundwater and soil contamination

• No contamination of surface water, groundwater or soil as a result of operation activities

• No spills outside areas designed to contain them

• No cross flow behind casing in production wells • Sufficient barriers demonstrated in production

wells to prevent likelihood of cross flow

Compliant • No incidents occurred involving contamination to groundwater.

• No spills or leaks occurred. • Wellhead pressure surveys

indicate no casing failures. • Wells constructed with

appropriate barriers in place.

2. Minimise disturbance to native vegetation and native flora

• No injuries to native fauna due to facility processes

• Removal of native vegetation in accordance with requirements of Native Vegetation Council

Compliant • No native fauna injured. • No development resulted in

the removal or damage to native vegetation.

3. Maintenance of facilities to prevent failure

• No unplanned interruptions of supply resulting in gas restrictions being applied to commercial and domestic customers

Compliant • No unplanned supply interruptions to commercial and domestic customers occurred due to plant failures.

4. Avoid disturbance to sites of Aboriginal and European heritage significance

• No unauthorised disturbance to Aboriginal or European heritage areas

Compliant • No activities conducted outside current operating areas.

• No disturbance to Aboriginal and non-indigenous heritage sites.

5. Minimise the Risk to the public and other third parties

• No injuries to the public as a result of facility processes

Compliant • No injuries to the public as a result of facility processes.

Page 21: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

21 | P a g e

6. Avoid disturbance to stakeholders and their associated infrastructure

• No reasonable complaints from stakeholders • Noise emissions comply with EPA requirements • No new weed or pest infestations due to site

activities

Compliant • No complaints received from land users or stakeholders.

• Noise emissions from site falls within EPA noise emissions requirements.

• No introduced exotic weed species as a consequence of activities. Presence of weeds and pathogens consistent with or better than adjacent land.

4.2 MANAGEMENT SYSTEMS Petroleum and Geothermal Regulations, Section 33 (2) (d) requires

“a summary of any management system audits undertaken during the relevant licence year, including information on any failure or deficiency identified by the audit and any corrective action that has, or will be, taken”

4.2.1 Health, Safety & Environment Management System (HSEMS)

Adelaide Energy Limited’s commitment to ongoing improvements to the Health, Safety & Environment Management System (HSEMS) continued during 2010.

During the reporting period, reviews and updates were made to the following documentation:

• ADE HSEMS Manual, approved by Board and Senior Management;

• Various standard operating procedures;

• Pipeline Operations and Maintenance Manual (POMM) to comply with AS2885;

• Emergency Response Plans including emergency phone numbers;

• Review & Permit to Work system

• Training modules for HSEMS, inductions, incident reporting.

4.2.1.1 Environmental Audits

An dinternal and 3rd party audit of the construction of PL19 were undertaken during 2010. Compliance with the Construction Environmental Management Plan (CEMP) and SEO was generally achieved.

4.2.1.2 Training

All staff undertook refresher courses for inductions and incident reporting.

4.3 REPORTS AND DATA SUBMISSIONS Petroleum and Geothermal Regulations, Section 33 (3) (e) requires

“a list of all reports and data relevant to the operation of the Act generated by the licensee during the relevant licence year”.

The following reports were provided to PIRSA for the 2010 Reporting Year.

Table 12: List of Report and Data Submissions During the Current Licence Reporting Year

Description of Report / Data Due Date Date Submitted Compliant /

Non-compliance

ANNUAL REPORT 1/03/2010 24/02/2010 Compliant

Page 22: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

22 | P a g e

Description of Report / Data Due Date Date Submitted Compliant /

Non-compliance

MONTHLY PRODUCTION REPORTS

January 31/03/2010 25/02/2010 Compliant

February 30/04/2010 04/03/2010 Compliant

March 31/05/2010 22/04/2010 Compliant

April 30/06/2010 19/05/2010 Compliant

May 31/07/2010 16/06/2010 Compliant

June 31/08/2010 1/07/2010 Complaint

July 30/09/2010 10/08/2010 Compliant

August 31/10/2010 09/09/2010 Compliant

September 30/11/2010 0710/2010 Compliant

October 31/12/2010 11/11/2010 Compliant

November 31/01/2010 08/12/2010 Compliant

December 28/02/2010 06/01/2010 Compliant

QUARTERLY CASED HOLE REPORTS

Q1_2009 30/04/2009 17/06/2009 Non-compliant

Q2_2009 31/07/2010 30/07/2009 Compliant

Q3_2009 31/10/2009 08/10/2009 Compliant

Q4_2009 31/01/2010 27/01/2011 Compliant

ROYALTY RETURN REPORTS

January 02/03/2010 25/02/2010 Compliant

February 31/03/2010 31/03/2010 Compliant

March 30/04/2010 28/04/2010 Compliant

April 31/05/2010 27/05/2010 Compliant

May 30/06/2010 2906/2010 Compliant

June 31/07/2010 26/07/2010 Compliant

July 30/08/2010 26/08/2010 Compliant

August 30/09/2010 30/09/2010 Compliant

September 31/10/2010 28/10/2010 Compliant

October 30/11/2010 30/11/2010 Compliant

November 31/12/2010 22/12/2010 Compliant

December 30/01/2011 27/01/2011 Compliant

DOWNHOLE DIAGRAMS (DHD) SUBMITTED

No DHD submitted

OTHER REPORTS / DATA

Haselgrove Sth2 Slickline Report – October 2010 30/01/2011 27/01/2011 Compliant

Haselgrove Sth2 Slickline Report – November 2010 30/01/2011 27/01/2011 Compliant

Katnook 1 Slickline Report 01/02/2011 27/01/2011 Compliant

Emergency Response Report PL19 pre-commission 26/05/2010 26/03/2010 Compliant

Emergency Response Report PL19 post-commission 28/11/2010 16/11/2010 Compliant

Emergency Response Report _ Katnook Complex 24/08/2010 01/07/2010 Compliant

Page 23: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

23 | P a g e

4.4 INCIDENTS Petroleum and Geothermal Regulations, Section 33 (2) (f) requires:

"in relation to any incidents reported to the Minister under the Act and these regulations during the relevant licensing year—

(i) an overall assessment and analysis of the incidents, including the identification and analysis of any trends that have emerged; and

(ii) an overall assessment of the effectiveness of any action taken to rectify non-compliance with obligations imposed by the Act, these regulations or the licence, or to minimise the risk of recurrence of any such non-compliance”.

During 2010, there were no incidents resulting in any injury to any member of the public and no reportable incidents in relation to PPL62, PPL168 and PPL 202.

Reportable incidents during construction of PL19 included some non compliance with CEMP and SEO (construction). These related to the following:

• Specific Environmental Monitoring stations were not established prior to commencement of construction activities. However a significant number of photos were taken before, during and after pipeline construction and the ROW will continue to be monitored.

• Written correspondence with landowners not formally recorded.

• Soil Inversion and mixing of subsoil/topsoil. This occurred in one small section. The landowner was consulted and not action necessary.

• No vehicle washdown register maintained.

• Evidence not kept on sourcing and disposal of hydrotesting water. Hydrotesting water for JR#2 / LR#1 pipeline was sourced from the bore at JR#2 and “disposed” of into existing (lined) pit at LR#1. For W#2 / HS#2, water was sourced from bore at Wynn#2 and disposed of in existing (lined) pit at Wynn#2.

4.5 THREAT PREVENTION Petroleum and Geothermal Regulations, Section 33 (2) (g) requires

“a report on any reasonably foreseeable threats (other than threats previously reported on) that reasonably present, or may present, a hazard to facilities or activities under the licence, and a report on any corrective action that has, or will be, taken”.

No new foreseeable threats or hazards to be reported by Adelaide Energy in 2010.

4.6 FUTURE WORK PROGRAM

Pursuant to Regulation 33(2) (h) under the Act, an annual report must include: “unless the relevant licence year is the last year in which the licence is to remain in force – a statement outlining operations proposed for the ensuing year”. <A brief description of each of the regulated activities planned for the following reporting year should be detailed individually. Information to be included with this may include (but not limited to):

• planned operation or activity (with depth or line length/area etc as applicable),

• approximate commencement date of operations or activity,

• approximate duration,

Page 24: 2010 Annual Report - energymining.sa.gov.auenergymining.sa.gov.au/__data/assets/pdf_file/0016/250045/2010_P… · 5 2010 Expenditure ... Pipe Grade API 5L Grade B API 5L Grade B API

Petroleum Production Licence No. 62, 168 & 202

2010 Annual Report – Rev 0

24 | P a g e

• when a pipeline licence is being reported, an assessment of the development activities proposed to be undertaken under the licence during the following year, including the number of completions that are expected to occur, needs to be included>

Work planned for 2011

• Feed study on Katnook Power Plant to use gas from Ladbroke Grove Gas Plant

• Installation of further Gas Jack connection points for operational wells

• ON-going EPT for wells at PEL255 with flow through PL19 and production through KGP.

• Kantook #1 water re-injection project continuing.

• Complete all scheduled routine maintenance activities and corrective maintenance identified in accordance with AS2885 and POMM for PL19.

• No planned well bore activities for wireline work or other wellbore activities during 2011 in PPL62, PPL168 or PPL 202. ADE will gather well information and/or perform remedial well work and /or perform capital well projects as those project become necessary / economically viable.