annual report of south australian cooper basin joint...

Santos Ltd ABN 80 007 550 923 SACBJV Operations

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Annual Report of South Australian Cooper

Basin Joint Venture Operations

Commercially Sensitive Information For PIRSA Internal Use Only

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 the SA Cooper Basin Joint Venture by Santos Ltd during the period January 1 – December 31 2010.


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ANNUAL REPORT - 2010 INDEX

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

2. EXECUTIVE SUMMARY ....................................................................................................................................... 4

3. SUMMARY OF REGULATED ACTIVITIES ........................................................................................................ 5

4. PERFORMANCE ..................................................................................................................................................... 5

4.1 PROVISION OF DATA .......................................................................................................................................... 5

4.2 PIPELINE MANAGEMENT................................................................................................................................... 5

4.3 QUARTERLY PERFORMANCE MEETINGS ...................................................................................................... 6

5. INCIDENTS .............................................................................................................................................................. 6

5.1 REPORTABLE INCIDENTS .................................................................................................................................. 6

5.2 REPORTABLE ENVIRONMENTAL INCIDENTS .............................................................................................. 7

5.2.1 SUMMARY OF ACTIONS TO PREVENT RECURRENCE ............................................................................. 7

5.3 NOTIFIABLE WORK RELATED INJURY OR DANGEROUS OCCURRENCE ............................................... 8

6. MONITORING/STUDIES........................................................................................................................................ 8

6.1 MONITORING ........................................................................................................................................................ 8

6.1.1 SEO Compliance .............................................................................................................................................. 8 6.1.2 SEO Review ..................................................................................................................................................... 9 6.1.3 Environmental Monitoring Database ............................................................................................................... 9

6.2 STUDIES ................................................................................................................................................................. 9

6.2.1 Soil Health Index Study ................................................................................................................................... 9 6.2.2 Produced Formation Water Management Strategy .......................................................................................... 9 6.2.3 Sludge Management ....................................................................................................................................... 10 6.2.4 Waste Management ........................................................................................................................................ 10

7. MANAGEMENT SYSTEM ................................................................................................................................... 11

7.1 ENVIRONMENT, HEALTH & SAFETY MANAGEMENT SYSTEM (EHSMS) ............................................. 11

7.1.1 Management Standards .................................................................................................................................. 11 7.1.2 Hazard Standards ........................................................................................................................................... 11 7.1.3 Training and Awareness ................................................................................................................................. 12

7.2 AUDITS, ASSESSMENTS AND REVIEW PROCESSES .................................................................................. 12

7.2.1 Performance Based Audits ............................................................................................................................. 13 7.2.3 Pipelines ......................................................................................................................................................... 13 7.2.4 Training .......................................................................................................................................................... 13 7.2.5 Sustainability Report ...................................................................................................................................... 13

8. REASONABLY FORESEEABLE THREATS ...................................................................................................... 14

8.1 RISK ASSESSMENT ............................................................................................................................................. 14

8.1.1 WHOLE OF PLANT RISK ASSESSMENT (WOPRA) AND FORMAL SAFETY ASSESSMENT .............. 15

8.1.2 PIPELINES ......................................................................................................................................................... 15

8.1.3 SIGNIFICANT HAZARD RISK REGISTERS .................................................................................................. 16

8.1.4 NEW PIPELINES ............................................................................................................................................... 16

8.1.5 SECURITY ......................................................................................................................................................... 16

8.1.6 HAZOP ............................................................................................................................................................... 16

9. EMERGENCY RESPONSE ................................................................................................................................... 16

9.1 EMERGENCY RESPONSE CAPABILITY ......................................................................................................... 16

9.2 EMERGENCY RESPONSE PROCEDURES ....................................................................................................... 17


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9.3 EMERGENCY RESPONSE DRILLS ................................................................................................................... 17

9.3.1 Overview of Significant Response Drills ....................................................................................................... 18

9.4 EMERGENCY RESPONSE .................................................................................................................................. 20

10. GENERAL .............................................................................................................................................................. 21

10.1 LOCAL COMMUNITY INVOLVEMENT ........................................................................................................ 21

11. SEISMIC EXPLORATION .................................................................................................................................... 21

11.1 Significant Operations Proposed for 2011 ........................................................................................................... 21

12. DRILLING AND WELL OPERATIONS............................................................................................................... 21

12.1 WELLSITE, CAMPSITE, BORROW PIT and ACCESS TRACK CONSTRUCTION & RESTORATION ..... 21

12.2 DRILLING OPERATIONS ................................................................................................................................. 22

12.3 DRILLING ACTIVITY – 2011 ........................................................................................................................... 22

12.4 WELL COMPLETION, WORKOVER, PRODUCTION, SUSPENSION and ABANDONMENT .................. 22

12.4.1 Monitoring of Wells ..................................................................................................................................... 22

12.5 WELL TESTING, COMPLETION and WORKOVER ACTIVITY – 2011 .................................................... 23

12.6 WELL/LEASE ABANDONMENT ..................................................................................................................... 23

12.7 DOWNHOLE WELL ABANDONMENT – 2010 .............................................................................................. 23

12.8 DOWNHOLE WELL ABANDONMENT – 2011 .............................................................................................. 23

Environmental Objectives and Performance – Drilling and Well Operations SEO ................................................ 24 13. PRODUCTION & PROCESSING FACILITY OPERATIONS ............................................................................. 36

13.1 PRODUCTION FACILITY PROJECTS ............................................................................................................. 36

13.1.1 MOOMBA PLANT...................................................................................................................................... 36

13.2 PRODUCTION FORECAST – 2011 ................................................................................................................... 37

13.3 PIPELINE CONSTRUCTION, OPERATION AND MONITORING ................................................................ 37

13.4 LICENSED PIPELINES ...................................................................................................................................... 38

13.4.1 PL 5 – Ballera to Moomba Pipeline ............................................................................................................. 39 13.4.2 PL 9 – Stokes to Mettika Pipeline ................................................................................................................ 39 13.4.2 PL 15 – Moon to Kerna Pipeline .................................................................................................................. 39

13.5 ROAD AND WELLSITE LEASE AND ACCESS CONSTRUCTION AND RESTORATION ....................... 40

13.6 WATER EXTRACTION FROPM COOPER CREEK ........................................................................................ 40

Environmental Objectives and Performance – Production and Processing SEO .................................................... 41 14 REPORTS ISSUED DURING THE 2010 LICENCE YEAR ................................................................................. 58

15. STATEMENT OF ACTUAL AND PROPOSED EXPENDITURE 2010/2010 ..................................................... 58

16. GLOSSARY OF TERMS ....................................................................................................................................... 59

17. APPENDICES ........................................................................................................................................................ 60

Appendix 1 PIRSA Meetings – 2010 ................................................................................................................... 61 Appendix 2 Environmental Incidents Summary - 2010 ....................................................................................... 62 Appendix 3 Emergency Drills - 2010 .................................................................................................................. 64 Appendix 4 Well Drilling Lease Scout, Construct, Backfill and Restoration Activity – 2010 ............................ 75 Appendix 5 Well Workover Summary ................................................................................................................. 79 Appendix 6 Well Summary – Producing & Suspended Wells ............................................................................. 82 Appendix 7 Flowlines Constructed – 2010 .......................................................................................................... 83 Appendix 8 Pipeline Inspection, Testing & Repair – 2010 ................................................................................ 84 Appendix 9 Details of Seismic Activity ............................................................................................................. 86 Appendix 10a 2010 Production Facility Projects .................................................................................................. 87 Appendix 10b 2011 Production Facility Projects - Proposed ................................................................................ 88 Appendix 11 Wells Drilled – 2010........................................................................................................................ 89 Appendix 12 2010 Reports, including Geological and Reserves Reports ............................................................. 90


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ANNUAL REPORT – 2010 SA Cooper Basin Joint Venture Operations

1. INTRODUCTION This report covers the activities conducted in the South Australian section of the Cooper Basin (SACB) by Santos Ltd as Operator for the South Australian Cooper Basin Joint Venture (SACBJV). This report covers the period 1 January 2010 – 31 December 2010. This report covers the following facilities: - SACBJV exploration, production and processing operations

- Pipelines operated under Pipeline Licenses #5 (Ballera to Moomba), #9 (Stokes to Mettika) and #15 (Moon to Kerna)

- Emergency response exercises conducted during 2010 - The hydrocarbon liquids pumping station at the head of the Moomba – Port

Bonython pipeline This report does not cover but the systems and procedures are applied equally to:

- PPL 206, 208 & 215 which are located in the SACB where Santos Ltd is the operator for a JV other than the SACBJV

- PL 17, the SA section of the Jackson to Moomba Oil Pipeline - PEL 114 and associated PPLs 225, 226 and 227 which are located in the SACB

and are held 100% by and operated by Santos Ltd This report does not cover:

- the pipeline from Moomba to Port Bonython - any facilities owned or operated by other third parties

This Annual Report for all activity was prepared considering the relevant Statements of Environmental Objectives (SEO).

2. EXECUTIVE SUMMARY During this reporting period, there were no reports of incidents which resulted in illness or injury to any member of the public or third parties. There were two “Serious Incidents” as defined in the Petroleum and Geothermal Energy Act 2000 related to SACBJV activity during 2010. During 2010, there were,

- 90.4 petajoules (PJ) of sales gas produced into the Moomba to Adelaide and Moomba to Sydney gas pipelines.

- 10.8 PJs of ethane produced into the Moomba – Sydney ethane pipeline. - 238 mL of gas condensate produced to Port Bonython. - 5.409 mm Barrels (BBLS) of crude oil exported to Port Bonython. - 207.6 Kt of LPG produced to Port Bonython

During 2010 there was no seismic activity carried out. A total of 11 wells were drilled by the SACBJV. All were cased and suspended for later completion. None were plugged and abandoned after failing to intercept hydrocarbons.


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There were 73 well workover operations conducted and 10 fracture stimulation operations. There were no wells plugged and abandoned during the period. This resulted in a total of 1264 operational wells, consisting of 772 producing and 488 inactive (suspension plug run or in-active greater than 1yr), there are also 64 cased and suspended wells. During this period, there were 12.94 km of flowline constructed, made up of 14 individual flowlines. Of the 12.94 km constructed, 7.896 km was Glass Reinforced Epoxy (GRE) line and 5.044 km of steel line. Close cooperation and liaison was maintained with landholders and third party exploration companies in the SACB. Santos continued to actively support local community activities across the areas where hydrocarbon exploration and production activities take place.

3. SUMMARY OF REGULATED ACTIVITIES The following Regulated Activities were conducted by the SACBJV under the various petroleum licenses during 2010,

- Exploration and appraisal of petroleum. - Road, track, Borrow Pit and well lease construction. - Seismic line construction. - Seismic Survey. - Well drilling operations. - Water injection / water flood operations to enhance production. - Operations associated with the production of petroleum, including construction, maintenance, repair and operation of pipelines, plant and facilities, camps, airstrips and associated infrastructure. - Gas and oil processing operations. - Storage of natural gas in underground reservoirs. - Disposal of Produced Formation Water. - Operation of licensed transmission pipelines.

4. PERFORMANCE The activities covered by this report are administered in accordance with the Petroleum and Geothermal Energy Act (2000), Petroleum and Geothermal Energy Regulations (2000) and the relevant SEO’s.

Work continued on the development of an Abandonment EIR and SEO. These activities will be included in an amendment to the Production and Processing SEO. This amendment will address the abandonment of facilities, including wells, leases, roads and tracks, pipelines and production facilities and water injection.

4.1 PROVISION OF DATA As a result of the previous increased focus on the provision of timely and accurate data to PIRSA, there were very few occasions where data was incomplete or late.

4.2 PIPELINE MANAGEMENT Santos field pipelines are designed in accordance with AS2885 and engineering standards. Operation and Maintenance of pipelines is managed by the Santos


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Pipeline Asset Management System which sets standards for integrity management and design life review to ensure EHS risks are ALARP. Individual Integrity Management Plans (IMP) are in place for each pipeline in the Santos operated network. These IMP’s indicate the activities and frequencies of inspections required to manage integrity of each asset, based on estimated risk analysis .

4.3 QUARTERLY PERFORMANCE MEETINGS Quarterly performance meetings between Santos and PIRSA continued during 2010. The dates of these meetings are listed in Appendix 1.

5. INCIDENTS During 2010, there were no incidents or accidents reported associated with Santos activities which involved any member of the public or third parties. In 2010 there were two Serious Incidents (as defined by the Petroleum Act, Regulations and SEO) and which were reported to PIRSA in accordance with the requirements of the legislation related to SACBJV activity. PIRSA issued one notice of non-compliance. Reportable Incidents have been reported to PIRSA during 2010. Some of these incidents were also reported to other regulatory agencies, such as the SA EPA and SafeWork SA. In the interest of sharing safety information and developing uniform safety approaches, Santos issued invitations to third party exploration and production operators to participate in the regular Santos/Contractor safety meetings.

5.1 REPORTABLE INCIDENTS (1) On March 23rd 2010 a vehicle fatality occurred in the Cooper Basin. The incident involved a 3rd party contractor and a Santos contractor. The vehicles were traveling in opposite directions on the Daralingie road, and met at the crest of a dune. Tragically the Santos contractor was killed, whereas the Beach Energy contractor sustained only minor injuries. The nature of the incident being an OH&S and road incident meant that it was investigated by the South Australian Police. Internal investigations conducted by Santos into the incident found that the main cause was excessive speed brought about by the root cause failure of the Santos contractor to follow both speed limits and road rules applied across the Cooper Basin.

(2) On the 29th of April 2010 at approximately 5.30 pm, supply of sales gas into the Moomba to Adelaide Pipeline ceased up to 7am on the 1st of May 2010. This incident was as a result of a need for the operator to carry out urgent welding repairs on a 4” sample point off take pipe situated on the 24 inch Moomba Sales Gas header (the common header from the Moomba gas plant leading into both the Moomba to Sydney and Moomba to Adelaide Pipelines). During this period of 37 1/2 hours, from when gas supply ceased, at no stage was there any significant threat to the security of gas supply to either Adelaide or Sydney. Subsequent investigation into the incident revealed that a greater pressure differential across the flow control valve (FCV) into the Sydney pipeline led to increased vibration and subsequent deterioration of small bore piping welds. In


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response, the operator implemented a number of corrective actions including initiating replacement of the Sydney pipeline FCV with one suitable for likely future conditions that would eliminate the cause of piping vibration. PIRSA is satisfied that, with the corrective actions and measures implemented by the operator, the risk of a recurrence of such an incident has been reduced to as low as reasonably practicable. (3) In November 2010 PIRSA issued Santos with a formal notice of non-compliance in relation to compliance with the requirements of the Cooper Basin Drilling and Well Operations, SEO, for sewage disposal and requested Santos take necessary action to remedy this breach. During a routine inspection by PIRSA disposal of black water via a means not approved by the Department of Health was discovered at a drilling contractor’s Tirrawarra #79 drill site camp in the Cooper Basin. In addition to PIRSA’s letter of non-compliance, the Department of Health after corresponding with PIRSA on these findings also issued a formal request for the company to take corrective actions on this matter. The company proceeded with a range of measures to address the issue, in consultation with the drilling contractor.

5.2 REPORTABLE ENVIRONMENTAL INCIDENTS Environmental incidents are reported to PIRSA in accordance with the Petroleum legislation.

A Negligible incident is an incident with minimal impact to the environment, typically with an uncontained hydrocarbon volume less than 200 litres to land. These are reported to PIRSA at the Quarterly Performance meetings listed in Appendix 1. These incidents are subsequently listed on the PIRSA Web-site. Minor incidents, typically with an uncontained hydrocarbon volume of greater than 200 litres to land, and Serious incidents are reported promptly to PIRSA and for Serious incidents followed up by written reports within a 3 month period. There were no serious environmental incidents and 8 Minor incidents recorded during the period. At the Quarterly performance meetings environmental incidents are reported. Appendix 2 provides an analysis of those reports. The consequence of these incidents ranged from Negligible (88%), Minor (12%) and Moderate (0%). There was a decrease in the number of reported incidents, from 106 to 67, reported for 2010. The volume of uncontained hydrocarbon reported was 4.75 m3, down from 7.5 m3 in 2009, from a total fluid volume of 98.5 m3, down from 118.6 m3. Of the total incidents 60% were for total volumes of less than 100 litres. Root causes included Design (7%), Monitoring and Maintenance (81%), Work Practices (10%) and other - environmental due rain/flood (2%).

5.2.1 SUMMARY OF ACTIONS TO PREVENT RECURRENCE The focus on reporting of minor events and those not involving hydrocarbon has continued.

A range of corrective actions, from investigations have been implemented including:


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• The continued reporting of human factor related events has allowed issues to be addressed at Toolbox meetings, development of procedures and training.

• Continued reduction of some recurring issues (such as diesel/fuel spills) through a number of initiatives such as: o Plastic bunding under fuel storage and chemicals and Upgrades to

lines and drain points • Actions taken in recent years and continuing related to corrosion of pipelines and flowlines, include:

o Replacement of the Tirrawarra pipeline with Glass Reinforced Epoxy (GRE)

o Replacement of the Merrimelia Oil satellite to Tirrawarra pipeline with Glass Reinforced Epoxy (GRE)

o Removal of lines or positive isolation and removal of oil from flowlines from wells no longer in production

o Increased use of GRE for oil flowlines o Programs of intelligent pigging of lines o Development of the pipeline relifing assessment process

5.3 NOTIFIABLE WORK RELATED INJURY OR DANGEROUS OCCURRENCE

Notifiable Work related Injuries or Dangerous Occurrences required to be reported to SafeWork SA are also reported to PIRSA. There was no Immediately Notifiable Work Related Injury reported during 2010, there were 8 events classified as Reportable to PIRSA and 5 Notifiable Dangerous Occurrences reported Safe Work SA. All 13 were reported to PIRSA

At the Quarterly performance meetings these incidents are also reported. Appendix 2 provides an analysis of those reports. Root causes included Design (8%), Monitoring and Maintenance (77%) and Work Practices (15%).

6. MONITORING/STUDIES

6.1 MONITORING

6.1.1 SEO Compliance The following programs monitor compliance of Santos operations with the SEOs: • Drilling and Petroleum Engineering (D&PE) have developed and implemented a

GAS procedure for assessing conformance of wellsite staff and contractors to remain on areas of authorised disturbance only. D&PE will expand the above to assess rehabilitation outcomes on Cooper Basin flowlines utilising GAS methodology

• There is an ongoing focus on the prevention of hydrocarbon spills through the implementation of integrity management plans. In 2010 this program was expanded to include key equipment as well as pipelines and tanks. These plans include audit and monitoring programs to assess conformance against procedures and the effectiveness of the standards and programs in place in the field.


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6.1.2 SEO Review The Production and Processing Operations Statement of Environmental Objectives and supporting Addendum to Environmental Impact Review were gazetted in June 2010. A comprehensive rollout program occurred during 2010. Review of the 2006 Geophysical Operations Statement of Environmental Objectives and associated Environmental Impact Review commenced in late 2010.

6.1.3 Environmental Monitoring Database A corporate environmental monitoring database was implemented in 2007 and further established throughout the company during 2010. The system, EnviroSys from SRA Environmental, is an award winning South Australian product in use by companies such as BHP Iron Ore and BMA Coal, as well as Government Agencies Zero Waste and Meteorological Centre Singapore.

The system manages qualitative and quantitative environmental monitoring data such as contaminated soil, produced water, waste management streams and dust analyses. It generates automated or scheduled reports and charts, as well as notifications when guidelines have been exceeded. All environmental advisers have been trained in the usage of the system and training materials are available on the Santos intranet.

EnviroSys was upgraded in 2009 and rolled out more broadly within Santos. The GLNG project has adopted the system to manage EIS and operational environmental monitoring data. It is integrated with existing systems for reporting and GIS display of data.

6.2 STUDIES

6.2.1 Soil Health Index Study The aim of the SHI study was to develop site specific acceptance criteria for contaminated soil/sediment within PFW evaporation ponds based on key biological indicators to the total load of contaminants within the soil. Following trials at Mudlalee in 2009, a Soil Health Index Decision Matrix has been developed for use for the planning and execution of rehabilitation strategies for decommissioned water disposal facilities across the Cooper Basin. The matrix is a flowchart of steps that will need to be taken to ensure groundwater and soil contamination risks (e.g. heavy metals) are managed to be as low as reasonably practicable (ALARP).

The matrix is now in use and was used during the investigation of the decommissioned Toolachee burn pit to identify potential impacts to soil and groundwater.

The protocol has been summarised in a flowchart of steps that will need to be taken to ensure groundwater and soil contamination risks (e.g. heavy metals) are managed to be as low as reasonably practicable (ALARP).

6.2.2 Produced Formation Water Management Strategy The study incorporating a risk assessment of produced formation water disposal facilities across the Cooper Basin and Mereenie has been completed with


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inspections of all 113 active operational ponds finalised. The study provides a clear understanding of our performance against environmental licence requirements. Common matters identified for possible action include vegetation on bund walls, bund erosion, freeboard allowance and exposed or perforated liners. Environmental advisers and determining the appropriate to be taken to improve performance against licence conditions. Provided with this clear guidance on how to optimise expenditure, asset areas are coordinating a combined approach to address common risks across ponds, for example, such as the need for fencing in cattle areas. Individual ponds are being prioritised for remedial action, based on risk and funding is to be secured in upcoming budgets to undertake this work.

6.2.3 Sludge Management The Point of Source Sludge Reduction Action Plan continues to be implemented. During 2010 over 85% of sludge collected in the Cooper Basin was treated, recovering 51% of oil.

In 2010, the project scope was finalised to replace existing sludge plant with a new sludge treatment plant in Moomba. Expressions of interest were sought and evaluated from major waste handling suppliers to build, own and operate the plant. Tenders were sought from a shortlist of suppliers. In 2011, the tender will be awarded and the FEED finalised, with construction due for completion in early 2012.

6.2.4 Waste Management Waste management continues to be a focus in 2010, building on the progress in 2009. The waste management contract for onshore Australia operations covering the Cooper Basin, Port Bonython and Eastern Queensland was put out to tender in 2010 and will be finalised in the first half of 2011. The waste audit conducted in 2009 resulted in 124 actions being raised across all offices and operations in Australia. No actions addressing issues raised in South Australia remain open. The 2010 Site EHS Improvement Plans contained commitments to develop and implement initiatives to improve waste management performance. Initiatives include completing the paper cup reduction campaign, reviewing purchasing options to minimise packaging and recycling thread protectors from casing and tubulars. Work continues in the Cooper Basin to upgrade the landfill at the Moomba Waste Management Facility (WMF). Excavation and construction commenced in late 2010 and will be completed in the first half of 2011. To support the new facility and ensure historic sites continue to be well managed, a Landfill Environmental Management Plan and a Landfill Closure and Post Closure Plan have been prepared. Waste management plans for activities generating waste in the Moomba WMF catchment will be updated in 2011.


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7. MANAGEMENT SYSTEM

7.1 ENVIRONMENT, HEALTH & SAFETY MANAGEMENT SYSTEM (EHSMS) The implementation and review of the Santos Environment, Health and Safety Management System (EHSMS) continued as an organisational priority during 2010. Implementation was monitored and communicated to PIRSA at quarterly meetings. Management standards performance was further validated by the use of internal auditors to monitor improvement initiatives highlighted by the 2009 EHSMS audit and assessment program.

The EHSMS contains both management standards and hazard standards. The management standards provide a framework for the sustainable achievement of acceptable EHS outcomes, whilst the hazard standards provide a clear process for control of hazards that are specific to Santos’ business.

In 2009, the structure of EHSMS documents was reformatted to differentiate information between mandatory requirements, and guidance material. In 2010 this update continued. There are now 39 standards that have been updated to the new format.

7.1.1 Management Standards Further implementation of management standards continued throughout 2010. Process safety (the prevention of high consequence/low frequency events involving sudden loss process fluids/gasses) standards continue to be embedded into the business. Process Safety data continues to be collected and analysed. Trending information is fed back through the monthly Eastern Australia leadership committee. There were 4 management standards amended and updated in 2010 – Operating procedures, Management of Personnel Change, First Aid/ Medical and Management Review. A significant review was undertaken on Contractor Management. The top 10 contractors were audited and this resulted in a number of proposed changes to the existing standard, processes and procedures.

7.1.2 Hazard Standards Further development and implementation of hazard standards progressed in 2010. Air transportation and excavations standards were reviewed and updated. There also continues to be a strong focus on land transportation and heat stress. Implementation of the health and well-being hazard standard continued, with significant focus on workforce health awareness and education. A specific program was put in place for high risk individuals, staff with 5 health risks from previous health check were offered personal health coaching. Drug and alcohol testing continued in 2010 with employees and contractors at all field and office locations being subject to random, for cause and post incident testing. Results indicate a very low failure rate. A fatigue management program was implemented in 2009, including awareness programs, self-management tools and reporting protocols. This program continued in 2010 with awareness sessions in the office and specific work on reviewing rosters in the field.

In 2010, sites continued to identify and focus on their ‘top 5’ hazards standards. These standards were aligned with their Significant Hazard Risk Register, to ensure


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a constant site-based focus on the most significant hazards. During 2010 sites continued to review and update their Significant Hazard Risk Registers and there top 10 risks and controls were reported back through the monthly Eastern Australia leadership committee.

7.1.3 Training and Awareness A new program was launched in 2010 to raise the awareness of high risk safety activities. The Santos Lifesaver Program consisted of 10 topics – Working with Electricity, Excavation, Working with Hydrocarbons, Driving Vehicles, Working at Heights, Lifting, Confined Space Entry, Working in the Heat, Management of Change and Start-up process Safety. The program contained a toolbox talk, promotional material (displays, posters, table topper, and screen saver), quiz, workplace inspection and audit. This program was successful in raising the level of awareness and resulted in an increase in reporting on these topics. The Lifesaver program will also be rolled out in 2011- the same topics with a different presentation/focus. A “safety Intervention” training program was developed and rolled-out in 2010. This program was about learning intervention skills in a safety situation i.e. when you see an unsafe activity, being able to intervene and provide feedback. Over 700 staff participated in the training and this received positive feedback. Finally in 2010 an on-line risk management training program was developed. This program provides an understanding of risk management, basic principles and practical application. This on-line training will be rolled out during 2011.

7.2 AUDITS, ASSESSMENTS AND REVIEW PROCESSES The following summarises some of the Audit, Assessment and Review processes used to determine system conformance, effectiveness and fitness for purpose. The EHSMS Assessment process was developed to drive the effective implementation of the EHSMS. Detailed Assessment/Audit Guides were developed for each standard and these were used by internal and external certified auditors to determine the status of conformance across all management standards. Each site/area received an annual progress review, audit or assessment. Each site received a report which provided an overview of conformance against relevant requirements of each management standard. Where a requirement was not at full conformance the report detailed the corrective action required to achieve full conformance. In 2010, internal auditors were used to conduct audits and progress reviews.

Results of progress review, audit and assessment reports were tabled at Eastern Australia Leadership and Site Committee meetings for discussion and tracking of actions. The general findings were also presented at the Environment, Health, Safety and Sustainability Board meeting.

In 2008 we started to report, investigate and record any High Potential Incidents (HiPos) that occurred within the company. HiPos are defined as any incident that had potential to result in a fatality. Tracking and reporting HiPos has given the company another avenue to learn from incidents and improve our overall safety


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performance. The tracking of HiPo’s continued in 2010, and was reported to senior management on a regular basis.

7.2.1 Performance Based Audits In 2010, two Legislative and Regulatory Performance Audits were conducted, as shown below,

No Audit Title Act/Reg #

1 Work Permit – Various sites OHS&W Act

2 Chemical Management – Various sites OHS&W Act

7.2.3 Pipelines Management of pipeline integrity occurs by targeting pipeline systems and associated equipment which are high risk or near the end of design life (Risk Based Inspection - RBI - approach). Main targets of Pipeline Integrity Management are:

- Redirection of pipeline operating risks to ALARP - Address safety risks - Maintain integrity of ageing pipeline network - Standards compliance - AIMS (Integrity Management Plan) compliance

The Asset Integrity Management System (AIMS) is the framework used within Pipeline Integrity to provide effective through-life integrity management of pipeline assets to meet operational availability, as well as achieving Statutory and Corporate compliance with Safety, Health and Environment

7.2.4 Training Various training requirements identified from audits and assessments were addressed.

7.2.5 Sustainability Report Santos released its first annual sustainability publication in late 2004, making public its commitment to long- term sustainability as an energy company. At that time Santos adopted sustainability as a core value and committed to continually improving its performance in this area. Since then, Santos has implemented a framework in which the company can measure performance across a comprehensive suite of indicators in the environment, community, our people and economic domains. Santos will release its independently verified annual Sustainability Report in early 2011. This document will report against Santos’ latest targets and provide further detail on policy, procedures and performance across the four domains of sustainability.


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8. REASONABLY FORESEEABLE THREATS Reasonably foreseeable threats, those that reasonably present, or may present, a hazard to the facilities or activities, continued to be reviewed and reduced by a number of initiatives. These initiatives included:

• Close liaison continues with 3rd parties exploring and producing in the Cooper Basin to manage the risk of 3rd party impact on pipelines.

• Work to expand the EHS Management System’s focus on Process Safety, targeting potential low-frequency, high-consequence events such as loss of containment. Moomba Plant and Cooper Basin Production both underwent external audits against Santos EHSMS including the PSM standards during 2008. During 2009 and 2010, formal progress Reviews were undertaken against the audit recommendations. Progress reviews may also identify new improvement opportunities as part of continuous improvement. Most non-conformances have been completed and closed. Actions to address the remaining longer-term recommendations will progress through 2011.

• Replacement of the Moomba LRP B Train aluminium cold box with a stainless steel cold box.

• Completion of a Formal Safety Assessment (FSA) of Moomba Gas Plant. The FSA is a key source of process safety risk information for the Moomba Gas Plant and recommendations will be progressed during 2011 onwards. Information from the FSA will also be a significant input into a future safety report.

• Completion of a project in Moomba to review and rationalise control room alarms in line with good industry practice.

• Communications with other parties operating in the area are maintained to manage threats posed to the facilities, in particular to high pressure natural gas pipelines, to as low as reasonably practicable. This includes pastoralists, on whose properties the operational activities are conducted. Information on infrastructure, including pipeline maps and information, is provided and regularly updated.

• Security situation has continued to be monitored and close liaison continues to be maintained with State and Federal authorities responsible for managing this issue. Appropriate relationships have been established with key response agencies.

• Participating in the development of common drilling industry standards, practices and procedures. A key component of this is the Wellsite Permit to Work System that Santos continues to provide support for, including the chair of the group, with Revision 2 introduced in 2007.

The listing of Production Facility Projects for 2010 Appendix 10a, and proposed projects for 2011, Appendix 10b, provide a more comprehensive listing.

8.1 RISK ASSESSMENT Santos undertook a number of risk assessments during the period. These risk assessments are aimed at identification of risks and the development of actions designed to reduce the risk to as low as reasonably practicable (ALARP). Risk assessments are undertaken in line with EHSMS09 Hazard Identification, Risk Assessment and Control.

There were also a number of projects identified in previous risk assessments which continued to be progressed during 2010. These projects are addressed in this report


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8.1.1 WHOLE OF PLANT RISK ASSESSMENT (WOPRA) AND FORMAL SAFETY ASSESSMENT WOPRA was a systematic whole of plant risk assessment process with strong emphasis on work group participation. It is compatible with the proposed Major Hazard Facility requirements.

Assessments have been completed for the Moomba Gas Plant and Moomba South Central Gas Satellite.

Focus of the WOPRAs was on actions associated with the top 10 Hazards for the Moomba plant and the top 5 Hazards at the Moomba South Central Satellite. Priority action items were issued and stewarded. The WOPRA processes are complete.

In 2009, a Formal Safety Assessment (FSA) of Moomba Gas Plant commenced in line with the requirements of EHSMS09 Hazard Identification, Risk Assessment and Control and to build on the WOPRA study. Following a pilot study started in 2009, the remainder of the Moomba Plant was reviewed in 2010. The potential risk reduction opportunities identified will be further analysed in 2011 to determine actions required to maintain risk as low as reasonably practicable. Projects and implementation plans will be instigated as part of this process. The risk and control information will also be an important basis for the Safety Report which will be required under pending MHF regulations.

8.1.2 PIPELINES Detailed risk assessments are completed for new pipelines and an improved risk based design life review process has been implemented for pipelines in operation. A key risk mitigator is the effective completion of the activities required by the integrity management plans. Risk reviews throughout the operating life of the pipeline are determined through the pipeline risk based inspection process. Individual Integrity Management Plans (IMPs) are in place for each pipeline that forms part of the Santos network.

The performance of integrity management system is reported via monthly KPI, IMP compliance reports and discussed with individual asset owners and Management at quarterly forums such as AEGR (Asset Engineering Governance Review) and Operations Governance.

The KPI’s monitor performance of the chemical pump reliability, CP reliability, the batch and slug treatment program, CP and ROW surveys, barrel treatments, inspections (ILI’s and DA’s), preliminary and final abandonments, and pipeline threats. Compliance of IMP-related activities is also measured.

A number of risk assessments were undertaken on key pipelines, listed Appendix 8, as required under the Pipeline Management System.


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8.1.3 SIGNIFICANT HAZARD RISK REGISTERS A requirement of Santos EHSMS9 Hazard Identification, Risk Assessment and Control is for operating sites to develop and maintain a Significant Hazard Risk Register (SHRR). The SHRRs record risks with an inherent risk rating of 3 or higher (from Santos’ Risk Rating tool). Information is consolidated from various EHS and process safety risk assessment processes. SHRRs are used to: • Identify the major EHS hazards to be included in EHS inductions • Prioritise resources for the auditing/ monitoring of key controls • Assist with the development of site/ function EHS inspection, monitoring

and audit programs • Assist with the development of annual EHS Improvement Plans During 2010 the SHRRs for Moomba Gas Plant and Production Operations SA underwent further update and development to maintain currency and to improve their effectiveness for managing risks. The top items from SHRRs are reviewed in rotation by the EALT EHS Committee.

8.1.4 NEW PIPELINES A total of 14 new pipelines (oil & gas) were constructed in South Australia in 2010 with changes being made to commissioning and handover processes to capture the integrity management requirements.

8.1.5 SECURITY Security related activities within Cooper Basin continued effectively through 2010 with the following key activities:

• Integration of new security services provider for Cooper Basin. • Emergency response arrangements occurred at multiple sites across

Cooper Basin. Moomba hosted a SAPOL exercise involving the activation, movement and testing of specialised police capabilities in response to a simulated incident at Moomba.

• Liaison network with the various Federal and State agencies responsible for security related issues were maintained.

• Emergency Response plans for Cooper Basin were reviewed and updated in accordance with Santos internal guidelines.

• The single card access system was made operational in October 2010 as part of the ‘One Santos’ access card integration with other sites and corporate centres throughout Australia.

8.1.6 HAZOP There were 5 HAZOPs and 1 CHAZOP conducted for the Moomba Plant, production facilities and pipelines in 2010.

9. EMERGENCY RESPONSE

9.1 EMERGENCY RESPONSE CAPABILITY Santos maintains a dedicated emergency response crew at Moomba. This consists of fully trained Emergency Officers (Fire crew) and medical response personnel


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together with a large inventory of emergency response equipment, material and vehicles.

9.2 EMERGENCY RESPONSE PROCEDURES Detailed, scenario-based emergency response procedures have been developed and implemented under the Santos Incident Management Plan (SIMP) to guide personnel in emergency incident response. Emergency response drills are regularly held in order to continuously update plans and maintain a high degree of readiness among personnel.

In the event of the emergency response procedures being used in response to an actual event a debrief of all relevant parties is conducted in order to ensure learnings are incorporated into the plans.

9.3 EMERGENCY RESPONSE DRILLS A listing of drills held during 2010 is contained in Appendix 3 Emergency Services conducted a number of Drills, Exercises and Desktop Exercises in 2010 including Evacuation Drills, Muster Point Training, Operational Exercises, EOC Training and Exercises, SAR Exercises and CSE Training and Rescue Rehearsals etc. An agreement with PIRSA provides for a summary within this report with regard the requirements of Reg 31 (5) of the Petroleum Regulations 2000, the preparation and submission of a report after a drill. The drills held during 2010 have met the requirements of Reg 31 (6). They have demonstrated the adequacy of the emergency response procedures and the competency of personnel to execute the procedures. A summary of outcomes, and any identified deficiencies and the remedial action proposed or taken is provided in the listing in Appendix 3. The following provides some additional detail on the more significant response drill Santos conducted, or participated in, during 2010. A number of emergency response exercises were conducted during 2010 to test the adequacy of the emergency response procedures and the competency of personnel to execute the procedures. On 15 July 2010 a Moomba major plant emergency response exercise was conducted to test procedures for responding to a process emergency, and extending to consideration of crisis management arrangements in the event of a more serious incident arising. The size and scope of the exercise was designed to ensure that all resources immediately available were utilised and/or considered, and identified opportunities to improve emergency response training and radio communications during an emergency situation. On 7 December 2010, Santos conducted “Exercise MOOSPILL”, a desktop crisis management exercise that examined procedures and processes requiring


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consideration in the event of a major oil spill in the Moomba environs. This exercise identified a number of improvements to be made to the emergency response plan and associated processes and procedures, this included the availability and adequacy of spill response equipment.

9.3.1 Overview of Significant Response Drills Moomba Major Plant Emergency Response Exercise - 15th July 2010

The 2010 Major Plant Exercise for Moomba was an operational exercise (OPREX), designed to practice established emergency response procedures and individuals skills for a process emergency within the Moomba plant confines as required by EHSMS 13 emergency preparedness.

The size and scope of the emergency response ensured that all resources immediately available were utilised and/or considered. This in turn facilitated the practice and review of crisis management arrangements in the event of a more serious incident arising.

Incident Scenario: A flange on the V-280 Condensate Skimmer vessel had failed resulting in a loss of containment of liquid condensate product. The discharged product had ignited causing a serious ground fire around the vessel and surrounding open area. Two workers that were in the immediate area at the time of the leak had sustaining serious burns and another was deceased.

There were eight defined objectives for the exercise.

The exercise took sixty minutes to complete, from time of call to the sounding of the all clear siren. Tasks completed during the exercise included, but were not limited to:

• Full evacuation of the processing plant and surrounding environs to the muster points.

• Accounting for all affected personnel. • Activation of the Moomba Emergency Operations Centre (EOC) and

subsequent notification to the Santos duty incident manager (DIM). • Establishment of forward command post. • Initial treatment and evacuated of injured personnel. • Fire fighting operations carried out by the onsite process personnel and

responding emergency services officers. • Notional shutdown and de-pressuring of affected plant. • Appropriate actions (practical and notionally) required in relation to the

simulated deceased person.

Major Aerodrome Emergency Exercise – 22 October 2010

This exercise is to familiarise with our responsibilities and work through the process of dealing with Aerodrome Emergencies

CASA (Civil Aviation Safety Authority) regulations require us to conduct a Full Scale Aerodrome Emergency Exercise Bi annually not exceeding 24 months and a Desktop Exercise annually not exceeding 12 months.


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The exercise was designed to involve full mobilisation of the Moomba Aerodrome Emergency Plan including the EOC. The number of casualties and type injuries was increased from previous exercises to challenge the effectiveness of emergency casualty triage, treatment skills, transportation procedures, the requirement of outside agencies and recent Emergency Services training “Respond to an Aviation Incident”

Incident scenario: BAe146 200 inbound to Moomba with 61 passengers + Crew. Captain reports an engine fire on the port side inside engine some 15 minutes prior to landing and has no choice but to continue on to Moomba. The Captain attempts to quell the fire and shuts engine down. The aircraft makes a heavy landing bringing the aircraft to a halt on the airstrip approx half to two thirds way down the runway opposite the terminal. A fire is evident on the Starboard side of the aircraft in the vicinity of the inside engine and spreading through the wing impinging on cabin.

Escape slides are deployed (Improvise without deploying) leading to the evacuation of the passengers in the aircraft. There are multiple injuries ranging from serious suspected spinal injuries to minor cuts and abrasions and burns to be treated by on site emergency personnel and transported to hospitals. Not all passengers are able to make own way of the aircraft and require assistance. Approx.14 injured passengers, 5 of which are serious and require immediate attention and evacuation to hospitals.

There were seven defined objectives listed for the exercise

• To practise Incident management and resource coordination skills. • To practise and assess Emergency Response Procedures. • To measure the effectiveness of current procedures and resources in place

to facilitate the identification and response of auxiliary fire fighters and first aiders

• To practice emergency casualty triage, treatment skills and transportation procedures

• To identify and take steps to eradicate any procedural and functional weakness

• To practise the efficiency of communication between participants. • To practise command, control and co-ordination and liaison procedures

between participating organizations

COOPER BASIN OIL SPILL PREPAREDNESS - 7 December 2010

The planned Moomba Oil spill response exercise for the Cooper Creek has been modified to initially be a table top review of the preparedness levels and to identify all of the issues that currently exist. A full exercise will then be conducted.

Exercise ”MOOSPILL” was a crisis management discussion exercise, designed to examine procedures and processes that require consideration in the event of a major oil spill in the Moomba environs

Objectives

• Determine initial scene requirements and incident management arrangements

• Review activation, response, coordination requirements


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• Review preparedness levels. • Examine information reporting procedures and communications • Identify issues and opportunities for further development of training,

equipment deployment techniques and site logistics. DULLINGARI MAJOR EXERCISE - 25th September 2010 Alternate EOC OPREX as per the 2010 Cooper Basin Emergency Exercise Schedule which is a requirement under EHSMS13 Emergency Preparedness. The exercise was designed to practice established emergency response procedures and individual’s skills in relation to a medical emergency in the Dullingari satellite and to provide a skills maintenance training opportunity for Spotless OFA personnel. TIRRAWARRA MAJOR EXERCISE - 25th September 2010 This exercise was designated as an OPREX as per the 2010 Cooper Basin Emergency Exercise Schedule which is a requirement under EHSMS13 Emergency Preparedness. The exercise was designed to practice established emergency response procedures and individual’s skills in relation to a medical emergency in the Tirrawarra satellite and to provide a skills maintenance training opportunity for Production Department personnel.

DARALINGIE MAJOR EXERCISE - 25th September 2010 This exercise was designated as an OPREX as per the 2010 Cooper Basin Emergency Exercise Schedule which is a requirement under EHSMS13 Emergency Preparedness. The exercise was designed to practice established emergency response procedures and individual’s skills in relation to a fire and medical emergency in the Daralingie satellite and to provide a skills maintenance training opportunity for Production Department personnel.

9.4 EMERGENCY RESPONSE In addition to planned drills, the Moomba emergency response resources were activated on a number of occasions in 2010. The majority of these were in response to Alarm Calls or as a precaution following a minor incident. The more significant response events that resulted in activation of the Moomba ERP included:

• Motor Vehicle Accident (Fatal) 23/03/ 2010 • Small Skip fire Moomba Plant 07/04/2010 • A minor gas release from a cold service pump seal failure in the LRP

10/08/2010 • Small Grass Fire near Gate 11 Moomba Plant 04/11/2010 • Circuit Board electrical arc Load in Load out office 19/11/2010

Nine Moomba environs incidents included Medical Assists, Tree Stump Fire, Minor Nitrogen Valve passing release on a Truck ISO tanker, Hazmat Moomba Stores, 3rd party Search & Rescue, Vehicle Accident and a Smouldering light fitting at the Comm’s workshop.

In all cases the response systems operated effectively.

Santos help within the general community by assisting with vehicle accidents, medivacs, search and rescues and response to activated Emergency Position


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Indicating Radio Beacons (EPIRB’s). Santos also provides emergency assistance at community events.

10. GENERAL

10.1 LOCAL COMMUNITY INVOLVEMENT During this reporting period, Santos continued to be actively involved with the local community associated with various events and issues which impact this community. This involvement ranged from facilitating and participating in local sporting and fund-raising events, to active involvement in various local Committees and groups, such as. - “Local” events - Innamincka races. - Cooper Cup - Emergency and other assistance to local community. - Cooper Creek Catchment Committees - South Australia Arid Lands Natural Resources Management Board - Active support of RFDS

11. SEISMIC EXPLORATION During 2010 no seismic activity was carried out in South Australia.

11.1 Significant Operations Proposed for 2011 The seismic programs proposed for 2011 are as follows:-

• Small section of the cross border Moon 3D. Approximately 18.6 sq km of this project lies in SA.

12. DRILLING AND WELL OPERATIONS

12.1 WELLSITE, CAMPSITE, BORROW PIT and ACCESS TRACK CONSTRUCTION & RESTORATION

During this reporting period, 11 wellsite leases were constructed which included 8.08 km of new tracks to provide access to these sites. A total of 13 borrow pits were necessary to provide fill for the tracks and leases.

At end of 2010 1 lease was being constructed and was completed 4/01/11 that required 2 borrow pits and 1.5 km of new track. A further 6 were pegged or scouted. The drilling sites scouted, constructed, backfilled and restored are listed in Appendix 4.

Partial restoration of drilling leases was not carried out due mostly to weather conditions during 2010. No borrow pits were sought by landholders.

Close consultation was maintained with pastoral lessees and National Parks rangers to ensure their interests and any issues raised remained high in consideration when conducting petroleum activities.


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Disturbance to sites of Aboriginal and European heritage was avoided. Santos trained staff is used to scout sites prior to work commencing on the construction of sites and access. Where necessary, a consultant archaeologist is engaged to ensure heritage sites are avoided.

12.2 DRILLING OPERATIONS The drilling operations conducted by Santos are undertaken in accordance with the Statement of Environmental Objectives for Drilling and Well Operations and the Santos Drilling Management System and Drilling Operations Manual. Well casing design is undertaken in accordance with Santos procedures and industry guidelines, which take account of the pressures, stresses, risks, loads and the environmental conditions which exist in each circumstance. A total of 11 wells were drilled by the SACBJV. All were cased and suspended for later completion. A list of wells drilled by the SACBJV in 2010 is provided in Appendix 11.

12.3 DRILLING ACTIVITY – 2011 The major activity planned for 2011 (number indicated are only approximate) includes the following,

- 35 wells to be drilled - construct flow lines to connect successful wells to the production system

- the construction of access tracks, borrow pits and campsites as necessary - completion or re-completion operations - fracture stimulations

12.4 WELL COMPLETION, WORKOVER, PRODUCTION, SUSPENSION and ABANDONMENT

There were 80 individual work-over operations conducted during 2010. Of these 7 were for PPL 206, 225 & 227. This involved 10 Fracture Stimulation operations. Work-over activities included casing repair, setting casing patches, down-hole pump installation/repair, well completion or re-completion, Integrity repairs, and perforation operations. These activities are listed in Appendix 5. At the end of this reporting period there were a total of 348 oil (184 producing) and 911 gas or gas/oil (588 producing) Santos operated wells. Of the gas or gas/oil wells, 236 wells (producing, inactive or suspended) were subject to casing annulus pressure testing. Completed and perforated gas or gas/oil wells (187wells) were also subject to corrosion monitoring by water sampling, giving 309 samples. Appendix 6 provides additional details 12.4.1 Monitoring of Wells

Monitoring of well casing annuli pressure continued. Available data was reviewed and risk assessments performed to determine the best means to effectively categorise these wells. There was one high risk well. The number of substantial and moderate risk wells is as follows: o 1 well was rated as high risk. This well will be worked over in 2011 to

reduce this risk.


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o 21 wells were rated at substantial risk. These wells have a remaining mild steel barrier. Workovers repaired 2 of the substantial risk wells in 2010.

o 71 wells were rated at moderate risk. These wells were able to be topped up and inhibit 1 of 2 remaining mild steel barriers.

Appendix 6 provides additional details.

12.5 WELL TESTING, COMPLETION and WORKOVER ACTIVITY – 2011 The corrosion monitoring and annulus pressure testing program will continue in 2011. 12 workover operations are planned to address and repair well integrity issues.

12.6 WELL/LEASE ABANDONMENT No lease abandonment was conducted during 2010.

12.7 DOWNHOLE WELL ABANDONMENT – 2010 No wells were plugged and abandoned post completion in 2010.

12.8 DOWNHOLE WELL ABANDONMENT – 2011 There are 2 well abandonments planned for in the 2011 work program.


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Environmental Objectives and Performance – Drilling and Well Operations SEO Environmental

Objectives Assessment Criteria Guide to How Objectives Can Be Achieved Performance

2010 Report Period

Objective 1Minimise the risk to public and other third parties.

:

• Reasonable measures

implemented to ensure no injuries to the public or third parties.

All employees and contractor personnel complete a safety induction

prior to commencement of work in the field. All employees and contractor personnel undertake a refresher

induction every 2 years. Signage in place to warn third parties of access restrictions to

operational areas, with particular warnings when potentially dangerous operations are being undertaken.

Necessary measures (e.g. signage/fencing) taken to prevent the public accessing the wellhead equipment or waste relating to a given well.

Demobilisation inspections undertaken at random to ensure that backfilling and waste removal requirements are met.

Permit to work systems in place for staff and contractors in dangerous situations.

All appropriate PPE (personnel protective equipment) is issued and available as required in accordance with company operating requirements and applicable standards.

Effective Emergency Response Plan (ERP) and procedures are in place in the event of a fire or explosion; Annual exercise of ERP.

Communication of rig moves and other potential hazards to safety associated with drilling and well operations to potentially affected parties prior to commencement of operations.

Compliance with relevant speed restrictions on access roads and tracks.

Reporting systems for recording injuries and accidents in place, and annual (at minimum) review of records to determine injury trends.

Implementation of appropriate corrective actions. Ensuring safety management plans are updated and reviewed. Wastewater disposal in accordance with Objective 11.

There were no injuries to the public or any third parties arising from Drilling and Well operations in 2010. All Santos and Santos Contract employees attend a compulsory safety induction prior to commencing work. Refresher training is provided at regular intervals. Signs are installed at strategic locations in the operating area to deter the public from accessing drilling and production areas and when potentially hazardous tasks are undertaken. A specific Wellsite Permit-to-Work system is used to manage workplace / worksite safety. Personnel are provided with the relevant, approved PPE when undertaking potentially hazardous tasks. Emergency Response Plans and procedures are in place. These procedures are regularly exercised with identified improvements included into the ERPs. Relevant parties are advised of potentially hazardous operations before they are undertaken. An electronic accident and incident recording system is used to report and monitor accidents, incidents and trends. Safety Management Plans, including KPIs, have been developed and introduced by Santos and its contractors. These are regularly reviewed and updated. Emergency Response procedures for well operations were reviewed and updated during this reporting period.


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Environmental Objectives

Assessment Criteria Guide to How Objectives Can Be Achieved Performance 2010 Report Period

Objective 2Minimise disturbance and avoid contamination to soil.

:

0, +1 or +2 GAS criteria are attained for “Minimise impacts on soil” objective as listed in Appendix 1 Table A1 and “To minimise the visual impact” as listed in Appendix 1 Table A2.

Well Site and Access Track Construction

No unauthorised off-road driving or creation of shortcuts.

No construction activities are carried out on salt lakes or steep tableland slopes (as defined in EIR).

0, +1 or +2 GAS criteria are attained for “Minimise visual impacts’, and “Minimise impact on soil” objectives as listed in Appendix 1 Table A3.

Borrow pit construction and restoration

No soil contamination as a result of production testing or well blowdown operations.

Production Testing/Well Blowdowns

.

Consider alternate routes during planning phase to minimise environmental impacts.

Well Site and Access Track Construction

Use existing routes / disturbed ground where practicable. Gibber mantle on access tracks and well sites (excluding sumps) is

not removed where possible, only rolled, in gibber and tableland land systems. Gibber mantle reinstated where appropriate during restoration.

Topsoil stockpiled (including gibber mantle) from sump construction and respread (and gibber recompacted) on abandonment.

The need to traverse sensitive land systems and the methods of managing the impacts must be justified in accordance with company procedures, recorded and available for auditing.

Existing borrow pits to be re-used where practicable. Borrow pit construction and restoration

Siting of new borrow pits to avoid sloped areas and gibber as far as practicable.

Topsoil stockpiled (including gibber mantle) and respread on abandonment (gibber to be recompacted).

If appropriate use: Production Testing / Well Blowdowns

- impermeable or clay lined flare pit to flare / contain hydrocarbons. - flare tanks.

Soil disturbance is minimised wherever possible. Rootstock is left intact and top soil is stockpiled for respreading. This is respread during site restoration. Off-road driving is actively discouraged. Alternate routes are considered in planning. Work is restricted to ROW. No construction activity is carried out on salt lakes, steep tablelands or wetland systems. Audits of construction activity are undertaken with high level of performance. Borrow pit construction is minimised by reuse of any suitable existing borrow pit/s. Borrow pits are restored on an ongoing basis to ensure the most time efficient restoration The post fracture stimulation clean up flow procedures to reduce the amount of gas flared which were refined through 2008 and 2009 remained largely unchanged in 2010. Consequently dry gas wells were typically only flowed 4 to 5 days to atmosphere (flaring were possible) to clean up frac fluids prior to the wells being shut in and connected. Liquids rich gas wells were flowed for similar durations, but were flowed through separators to capture the liquids with the gas going to flare.


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Environmental


2010 Report Period

Objective 2 contMinimise disturbance and avoid contamination to soil.

:

No spills/leaks outside of areas designed to contain them.

Fuel and Chemical Storage and Handling

Level of hydrocarbon continually decreasing for in situ remediation of spills.

Soils remediated to a level as determined by the SHI process.

Also refer to Objective 12.

All domestic wastes are disposed of in accordance with EPA licensing requirements.

Waste Disposal (domestic, sewage and sludges)

0, +1 or +2 GAS criteria are attained for “Site to be left in a clean and tidy condition” objective listed in Appendix 1 Table A2.

No spills or leaks from sewage treatment processing.

Refer to Assessment Criteria for Objective 11.

All fuel, oil and chemical storages bunded in accordance with the appropriate standards and guidelines e.g. EPA guideline 080/07 Bunding and Spill Management.


Records of spill events and corrective actions maintained in accordance with company procedures.

Spills or leaks are immediately reported and clean up actions initiated. Logged incidents are reviewed annually to determine areas that may

require corrective action in order to reduce spill volumes in subsequent years (and drive continual improvement).

Chemical and fuel storage procedures, including signage, are reviewed and monitored in audit process.

Results of emergency response procedures carried out in accordance with Regulation 31 show that an oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.

Spill Response / Contingency Planning

Oil spill contingency plan (reviewed annually) is up to date with specific scenarios relating to spills to creeks and floodplain areas.

Spill response equipment is audited annually. Annual spill response training exercise / rehearsal is undertaken. Spills or leaks are immediately reported and clean up actions initiated.

Covered bins are provided for the collection and storage of wastes. Waste Disposal (domestic, sewage and sludges)

All loads of rubbish are covered during transport to the central waste facility.

Approved transportable Aerated Wastewater Treatment Plants (AWTPs) used for rigs/camps (once approved AWTPs are available from a supplier suitable to Santos1). Interim controls for management of sewage effluent (developed in consultation with the Department of Health) implemented1.

Use of permanent septic systems with camps where possible Refer to Objective 11.

No spills occurred outside areas designed to contain them. SACBJV learnings from Incidents were reviewed to enable improvement strategies to be identified and are applied to PPL 206 and 215 activity. No oil spill is likely to have impacted ground water. Records of spills are maintained. Spills are reported in accordance with legislative and company requirements. Incident registers are reviewed to determine areas requiring improvement and to ensure ongoing improvement. Domestic wastes are disposed of in accordance with EPA License Requirements. Audits identified good performance. Waste bins and containers are covered during transport. Waste pits are located only at Authorised facilities and are fenced to exclude stock and wildlife. A waste management plan was developed and submitted to the EPA for approval.

In November 2010 PIRSA issued Santos with a formal notice of non-compliance in relation to compliance for sewage disposal and requested Santos take necessary action to remedy this breach. During a routine inspection by PIRSA disposal of black water via a means not approved by the Department of Health was discovered at a drilling contractor’s Tirrawarra#79 drill site camp in the Cooper Basin. The company proceeded with a range of measures to address the issue.


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Objective 3Avoid the introduction or spread of pest plants and animals and implement control measures as necessary.

: No weeds or feral animals

are introduced to, or spread in, operational areas as a consequence of activities.

Where appropriate a weed and feral animal management strategy is in

place (avoidance and control strategies). Rig and vehicle wash downs are initiated in accordance with the

management strategy.

Weed and feral animal strategies are in place. There is no evidence of the introduction of weeds or feral animals. Vehicles and rig equipment is washed in accordance with the management strategy.

Minimise disturbance to drainage patterns and avoid contamination of surface waters and shallow ground water resources.

Objective 4:

Well sites and access tracks are located and constructed to maintain pre-existing water flows (i.e. channel contours are maintained on floodplains and at creek crossings).

Well Lease and Access Track Construction

No overflow of drill cuttings, muds and other drilling fluids from mud sumps.

Drilling Mud Sumps and Flare Pits

No waste material disposal to sumps and flare pits.

No leaks/spills outside of areas designed to contain them.

Well Heads (Oil and Gas Systems)

Sensitive land systems (e.g. wetlands) avoided wherever possible. Where activities are undertaken in or near these areas, appropriate review, assessment and mitigation measures are in place to ensure that surface water flows are maintained and contamination of surface water and groundwater is avoided.

Well Lease and Access Track Construction

All drill cuttings, muds and non toxic drill fluids are contained within the designated mud sumps with adequate freeboard at the completion of operations to allow for a 1m cover of clean fill at remediation.

Drilling Mud Sumps and Flare Pits

Where appropriate, imperviously lined well cellars are installed on oil wells.

Well Heads (Oil and Gas Systems)

Bunds / containment devices are installed on gas well skids. Well heads shut in and chemicals removed prior to flood events. Jet pumps are installed within containment device with an adequately

sized containment sump.

Drainage channels and patterns are maintained or restored to minimise impeding or changing natural drainage patterns associated with well leases, access tracks and roads and at creek crossings.

Work programs are modified to avoid periods of flooding and other seasonal influences and variations.

No overflow of drilling mud sumps occurred. No waste material is disposed of in drilling mud sumps or flare pits. Investigated alternatives for impervious lining for well cellars. Automatic shutdown of wellhead pumps investigated and devices progressively fitted to all beam pumps to shutdown pump if Polished rod packer fails. Wells are shut-in and wellhead equipment is removed in areas to be impacted by flooding. Jet-pumps are installed with 9M3 sumps.


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Objective 4 cont


No water (surface or groundwater) contamination as a result of production testing or well blowdown operations.

Well Blowdown/Production Testing

No water (surface or groundwater) contamination as a result of fuel or chemical storage and handling.

Fuel/Chemical Storage and Handling

Activity is conducted in accordance with accepted industry standards / good oilfield practice.

Well Blowdown/Production Testing

If appropriate use: - impermeable / clay lined flare pit - flare tanks - separators - supervision.

All fuel, oil and chemical storages bunded in accordance with the appropriate standards (e.g. AS 1940 and EPA guideline 080/07 Bunding and Spill Management).


Records of spill events and corrective actions maintained in accordance with company procedures.

Spills or leaks are immediately reported and clean up actions initiated. Logged incidents are reviewed annually to determine areas that may

require corrective action in order to reduce spill volumes in subsequent years (and drive continual improvement).

Chemical and fuel storage procedures, including signage, are reviewed and monitored in audit process.

Refer to Objective 11. Waste Management

Results of emergency response procedures carried out in accord with Regulation 31 show that oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.



Spill response equipment is audited annually. Annual spill response training exercise / rehearsal is undertaken.

See Objective 2 above.

Records of spills are maintained Spills which occurred outside areas designed to contain them are reported at quarterly meetings. Spills are reported in accordance with legislative and company requirements. Incident registers are reviewed to determine areas requiring improvement and to ensure ongoing improvement. Soil removed to land farm in some instances to eliminate contamination. No spill is likely to have impacted ground water. Emergency response procedures for spill response are in place and regularly exercised. Learning from exercises and actual events are included in Plans. Oil Spill Plans are up-to-date and regularly drilled. Spill response equipment and procedures are regularly audited.

Regular drills are conducted.


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Avoid disturbance to sites of cultural and heritage significance.

Objective 5:

Proposed well sites and

access tracks have been surveyed and any sites of Aboriginal and non-Aboriginal heritage identified.

Any identified cultural and heritage sites have been avoided.

Consultation with stakeholders (i.e. government agencies, landholders

etc) in relation to the possible existence of heritage sites, as necessary.

Heritage report forms completed for any sites or artefacts identified, and report forms forwarded to the Aboriginal Heritage Branch, Aboriginal Affairs and Reconciliation Division (AARD).

Survey records are kept and are available for auditing. Areas requiring remediation which lie outside previously surveyed

sites should be surveyed in accordance with company heritage clearance procedures.

A procedure is in place for the appropriate response to any sites discovered during drilling activities.

Note clearance is in place, compliance with the negotiated agreement

: Where a negotiated agreement or determination for heritage

or determination takes precedence over the above criteria.

Construction sites are inspected for cultural heritage sites. Identified sites are avoided. Significant sites are fenced. Identified sites are avoided.

Minimise loss of aquifer pressures and avoid aquifer contamination.

Objective 6:

There is no uncontrolled flow to surface (blow out).

Drilling & Completion Activities

Sufficient barriers exist in casing annulus to prevent crossflow between separate aquifers or hydrocarbon reservoirs.

Relevant government approval obtained for abandonment of any radioactive tool left downhole.

Drilling & Completion Activities

A competent cement bond between aquifer and hydrocarbon reservoirs is demonstrated.

For cases where isolation of these formations is not established, a risk assessment incorporating the use of pressure / permeability / salinity data is undertaken in consultation with DLWBC & SAALNRM Board to determine if lack of cement or poor bond will cause or has caused damaging crossflow which needs to be remediated.

There were no well bore failures reported


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Minimise loss of aquifer pressures and avoid aquifer contamination

Objective 6 Cont:

• No cross-flow behind casing between aquifers, and between aquifers and hydrocarbon reservoirs unless approved by DFW.

Producing, Injection, Inactive and Abandoned Wells

Producing, Injection and Inactive Wells

Monitoring programs implemented (e.g. through well logs, pressure measurements, casing integrity measurements and corrosion monitoring programs) to assess condition of casing and cross-flow behind casing.

Casing annulus pressures are monitored every 2 years. The condition of the primary casing barrier is adequate. For cases where crossflow is detected, a risk assessment

incorporating the use of pressure / permeability / salinity data is undertaken in consultation with DFW & SAALNRM Board to determine if lack of cement or poor bond will cause or has caused damaging crossflow which needs to be remediated.

Well Abandonment Activities

Isolation barriers are set in place to ensure that crossflow, contamination or pressure reduction will not occur.

Barriers will be set to meet or exceed the requirements of applicable standards for the decommissioning and abandonment of water bores and abandonment of petroleum wells. The placement of isolation barriers will in general be to isolate the groups of formations as listed under comments. The number and placement of barriers may be varied from this standard approach on a case-by-case basis by Santos personnel using relevant available data and the SA Cooper Basin Water Pressure and Salinity Module Report (2002), and in consultation with DFW.

Corrosion monitoring, pressure measurements and casing integrity monitoring programs undertaken on a regular basis. Wells prioritised for remedial action based on condition of casing barriers. Cement bond logs conducted on new wells for baseline indication of cement bond.


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Objective 7Minimise disturbance to native vegetation and native fauna.

:

Any sites with rare, vulnerable and endangered flora and fauna have been identified and avoided.

Well Lease and Access Track Construction and Restoration

0, +1 or +2 GAS criteria are attained for “Minimise impact on vegetation” objective as listed in Appendix 1 Table A1 and “The revegetation of indigenous species” objective as listed in Appendix 1 Table A2, during well lease and access track site selection and construction and restoration.

0, +1 or +2 GAS criteria are attained for “Minimise impacts on vegetation” objectives as listed in Appendix 1 Table A3 during borrow pit site selection, construction, and restoration.

Borrow Pit Construction and Restoration

Refer to assessment criteria for Objective 11.

Waste Management

• Refer to assessment criteria


for Objectives 2 and 4.

Proposed well sites, camp sites, access tracks and borrow pit sites have been assessed for rare, vulnerable and endangered flora and fauna species before the commencement of construction.

Well Lease and Access Track Construction and Restoration

Consider alternate routes during planning phase to minimise environmental impacts

Sensitive land systems (e.g. wetlands) avoided wherever possible. Where activities are undertaken in these areas (i.e. no practicable alternative), appropriate review, assessment and mitigation measures are in place.

Facilities (e.g. borrow pits, well cellars) are designed and constructed as far as practicable to minimise fauna entrapment.

Sumps and mud pits are fenced as appropriate to minimise wildlife access

Assessment records are kept and are available for auditing. In recognised conservation reserves (i.e. Innamincka Regional

Reserve) excavations are left in a state as agreed with the responsible statutory body

Borrow pits are restored to minimise water holding capacity, where agreements are not in place with stakeholders.

Covered bins are provided for the collection and storage of putrescible wastes.

Waste Management


Refer to Objective 11.

Refer to Objectives 2 & 4. Fuel and Chemical Storage and Handling

No domestic pets allowed at camps or worksites. Fauna Management

Feeding of wildlife (e.g. dingoes) is not permitted.

Study undertaken to determine habitats for rare, vulnerable and endangered species. Areas identified are avoided. Vegetation impacts are minimised during well lease access and construction by scouting surveys prior to the entry of construction machinery. Wherever possible, significant vegetation is avoided. Borrow pit site selection provides for the avoidance of vegetation impacts. Borrow pits are restored on an ongoing basis to allow natural vegetation regrowth to recommence. Where necessary, borrow pits are reopened to minimise vegetation impacts.


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Assessment Criteria Guide to Objectives Achievement Performance 2010 Report Period

Objective 8Minimise air pollution and greenhouse gas emissions.

: Performance to EPA

requirements.

Conduct well testing in accordance with appropriate industry accepted standards.

Well Testing

Continually review and improve operations. Appropriate emergency response procedures are in place for the case

of a gas leak.

Blowdown carried out in accordance with industry accepted standards / good production practice.

Well Blowdown

Any well that is consistently blown down is identified for a small ID tubing or plunger lift installation to minimise blow downs on that well.

Petroleum engineering activities are continuously reviewed for opportunities to minimise air pollution and greenhouse gas emissions. Emergency response procedures are in place, are regularly tested and improvements identified are included in the plans.

Objective 9Maintain and enhance partnerships with the Cooper Basin community.

: No unresolved reasonable

complaints from the community.

Relevant affected parties are notified and consulted on proposed

activities. Forward development plans are presented to the local community. Local community projects and events are sponsored and supported

where appropriate. Industry membership of appropriate regional land management

committees and boards

Relevant parties are notified and consulted on proposed activities. There were no complaints, concerns or issues left unresolved. Local community events and activities are actively supported. Membership and active participation is made to regional management committees and Boards.


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Objective 10Avoid or minimise disturbance to stakeholders and/or associated infrastructure

: No reasonable

stakeholder complaints left unresolved.

Induction for all employees and contractors covers pastoral,

conservation, tourism, legislation and infrastructure issues. Relevant stakeholders are notified prior to survey and construction of

well sites, camp sites and access tracks and undertaking of operations (pursuant to Regulations). Borrow pits left open (unrestored) if requested by landholder and upon receipt of letter of transfer of responsibility to landholder.

Gates or cattle grids are installed to a standard, consistent with pastoral infrastructure in fences where crossings are required for access.

All gates left in the condition in which they were found (i.e. open/closed).

Potential sources of contamination are fenced as appropriate to prevent stock access.

Excavations are located and managed so as not to pose an unacceptable hazard to stock or wildlife.

System is in place for logging landholder complaints to ensure that issues are addressed as appropriate.

Requirements of the Cattle Care and Organic Beef accreditation programs are complied with.

In recognised conservation reserves (e.g. Innamincka Regional Reserve) excavations are left in a state as agreed with the responsible statutory body (e.g. DEH).

The importance of developing and maintaining good relationships with landholders is stressed to all employees and contractors. Relevant stakeholders are notified of and consulted about projects and are provided with information, maps etc. No Borrow pits were formally transferred to landholders. Grids, fences, gates installed are to a standard acceptable to the landholder. All gates are left “as found”. In response to concerns regarding potential for contamination of cattle an extensive fencing of facilities program was completed in 2005 Landholder complaints and requests are logged to ensure closeout. There were no complaints lodged. Cattle management systems (cattle care) are recognised and complied with.


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Optimise waste reduction and recovery.

Objective 11: All wastes to be disposed

of at an EPA licensed facility in accordance with EPA Licence conditions, with the exception of drilling fluids, drill cuttings, other fluids disposed during well clean-up and wastewater (see below).

Wastewater (sewage and grey water) disposed of in accordance with the Public and Environmental Health (Waste Control) Regulations 1995 or to the Department of Health’s satisfaction.

Attainment of GAS criteria for “Site to be left in clean, tidy and safe condition” objective during well site restoration.

Attainment of GAS criteria for “Site left in clean and tidy condition” objective during borrow pit restoration

Chemicals and oil are purchased in bulk. “Bulki bins” or other storage

tanks are in place for large volume items. Covered bins are provided for the collection and storage of putrescible

wastes. All loads of rubbish are covered during transport to a licensed waste facility.

Waste streams are segregated on site to maximise opportunities for waste recovery, reuse and recycling.

Coordinate covered waste transportation on backload. Production of waste is minimised by purchasing specifying reusable,

biodegradable or recyclable materials in procurement, where practical. Drilling fluids, drill cuttings and other fluids are disposed of to sump on

the Act licence area. Waste water (sewage) disposal is where possible in accordance with

the Public and Environmental Health (Waste Control) Regulations 1995 (which require that the waste water disposal system must either comply with the Standard for the Construction, Installation and Operation of Septic Tank Systems in SA or be operated to the satisfaction of the Department of Health) and the Environment Protection (Water Quality) Policy 2003.

Grey water is disposed of to the sewage treatment system. Secondary treated sewage wastewater is disposed of onto land well

away from any place from which it is reasonably likely to enter any waters, and to minimise spray drift and ponding, in accordance with clause 11 of the Environment Protection (Water Quality) Policy 2003.

Chemicals, cement & inhibitors are purchased in bulk containers. Waste material is disposed of at EPA Approved facilities. During a routine inspection by PIRSA disposal of black water via a means not approved by the Department of Health was discovered at a drilling contractor’s Tirrawarra#79 drill site camp in the Cooper Basin. The company proceeded with a range of measures to address the issue.


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Objective 12Remediate and rehabilitate operational areas to agreed standards.

: No unresolved reasonable

stakeholder complaints.

Contaminated sites are remediated in accordance with criteria developed with the principles of the National Environment Protection Measure for Contaminated sites and in consultation with the EPA.

Contaminated Site Remediation

The attainment of 0, +1 or +2 GAS criteria for:

Well Site and Access Track Restoration

- “minimise visual impact of abandoned well sites”

- “minimise visual impact of abandoned access tracks”

- “re-establish natural vegetation on abandoned well sites and access tracks”

The attainment of 0, +1 or +2 GAS criteria for:

Borrow Pit Restoration

- “minimise impact on vegetation”

- “minimise impact on soil”

- “Minimise visual impacts”

Note:

Well abandonment issues addressed under objective 6.

Rehabilitation/ abandonment plans for surface activities will be developed in consultation with relevant stakeholders

Compacted soil areas have been ripped (except on gibber and tablelands) and soil profile and contours are reinstated following completion of operations.

Well Site and Access Track Restoration

No complaints raised by stakeholders.


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13. PRODUCTION & PROCESSING FACILITY OPERATIONS This section of the Annual Report addresses the operation, performance and performance achievement in the operation of gas and oil wells, gathering systems, water disposal facilities, pipeline systems and the Moomba process plant. During 2010, the pipeline, flowline and trunkline network delivered natural gas, Ethane, Condensate and Crude Oil to the Moomba Plant resulting in the export volumes listed in the Table below,

Sales Gas Ethane LPG Condensate Crude Oil

(PJ) (PJ) (Kt) (Ml) (mm BBLS)

90.4 10.8 207.6 238 5.409

The above Crude Oil includes the following:

(mm BBLS)

PEL114 (Stimpee, Hoek, Stimpson Jay and Teringie) 0.186

PPL 225, 226 & 227 (Stimpee, Hoek, Stimpson Jay and Teringie) (16/10/08 – 31/12/09) – 14.5 months (does not include Frostillicus/Shazlick)

0.182

PPL 206 (Derrilyn & Toparoa) 0.053

Reg Sprigg West 0.003

13.1 PRODUCTION FACILITY PROJECTS During 2010 a number of plant and field facility projects were completed and a listing of these is provided in Appendix 10a. There are a number of projects that have continued to be progressed or were commenced previously, these are listed in Appendix 10b, as are those that are planned to commence in 2010.

13.1.1 MOOMBA PLANT In the Moomba Plant, the major activities included,

- Inspection of processing facilities - Utilities Reliability Projects to increase equipment reliability & availability across all Moomba Utilities

- Replacement of the Moomba LRP B Train aluminium cold box with a stainless steel cold box - Installation of a rated Blast Resistant Building for the Plant Operators - Replacement of Salt Bath Heater - Upgrade projects to Cold Service pump seal systems in LRP


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13.2 PRODUCTION FORECAST – 2011 The estimated gas and liquids production and export volumes from the Moomba Plant for 2011 are as listed below,

Sales Gas (PJ) 107.4

Ethane (PJ) 15.0

LPG (Kt) 218.8

Condensate (Kbbls) 1520

Crude Oil (Kbbls) 4.349

The above Crude Oil includes the following:

mm BBL(S)

PEL114 (Stimpee, Hoek, Stimpson Jay & Teringie) 0.169

PPL 225, 226 & 227 (Stimpee, Hoek, Stimpson Jay and Teringie)(does not include Frostillicus/Shazlick)

0.162

Derrilyn & Toparoa 0.040

Reg Sprigg West 0.006

Estimated Third Party Deliveries from Moomba 1.846

2010 Gas Storage Estimates

Opening Storage (PJ) Sales Gas + ethane 46.50

Net Storage Injection / (Withdrawal) (PJ) (1.96)

Total Closing Sales Gas and Ethane Storage (PJ) 44.54

13.3 PIPELINE CONSTRUCTION, OPERATION AND MONITORING During the reporting period the Cathodic Protection (CP) units and pipeline voltage potentials in the Cooper Basin were monitored bi-monthly for protected pipelines. Performance survey along protected pipelines is normally completed on an annual basis, however due to severe floods most of these surveys were deferred to 2011 by means of Risk Assessment.

Most batch treatment of gas and oil trunklines and gathering lines, normally carried out in an annual basis, were completed in accordance with Santos’ Integrity Management Plans. However a portion of these had to be deferred to 2011 due to access restrictions cause by severe floods. Pipeline right of ways, normally inspected during the annual Cathodic Protection surveys of protected pipelines were also affected by lack of access due to severe floods. Most surveys were deferred to 2011 by means of Risk Assessment


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Corrosion inhibitor was injected into raw gas pipelines at wells and satellite stations. Inhibitor pumps were monitored and maintained at intervals ranging from monthly to three monthly as prescribed by Santos’ Integrity Management Plan. The biocide injection facilities on the major oil transmission lines, to manage microbiological corrosion, have been upgrade to pulse injection systems.

Water samples were obtained from flowlines for residual amine and dissolved iron analysis, with the results used to optimise the corrosion inhibitor injection rates on gas pipelines. In addition samples were taken to determine the source of microbiological induced corrosion (MIC).

MIC continuous improvement program continues to be implemented and improved, driven by a steering committee made up of personnel from integrity, laboratories and production. The program has identified activities which include pigging, pipeline suspension, and source of bacteria, 3rd party contamination, biocide, design, and procedures. During 2010, pipelines and flow lines were constructed to connect new wells to the production system, as listed in Appendix 7. Various inspections, repairs and testing was undertaken on pipelines as listed in Appendix 8, a program covering in line inspection of key pipelines was initiated.

The Pipeline Management System was further enhanced during 2010 by improving the standard of integrity management plans, rationalising the risk distribution in all fields and completing annual Pipeline Integrity Reviews (PIR) and detailed risk reviews. This process has been supported by further development of the Pipeline Integrity Database, KPI reporting and IMP compliance tracking to support the Management System and provide the heart of the pipeline task management and records management system.

13.4 LICENSED PIPELINES This report also covers the Licensed Pipelines covered by Pipeline Licenses Numbers 5 (Ballera to Moomba), 9 (Stokes to Mettika) and License No. 15 (Moon to Kerna) flowline. The activities carried out in relation to PL 5, PL 9 and PL 15 are administered in accordance with the Petroleum Act (2000), Petroleum Regulations (2000) and the relevant SEO’s. There were no incidents recorded on any of the Licensed Pipelines. The reporting of Environmental Objectives and Performance – Production and Processing SEO, are covered in detail in this report and are considered to also address the performance in respect to the pipeline SEOs.

Various inspections, repairs and testing were undertaken on the Licensed Pipelines, details specific to each pipeline are as follows:


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13.4.1 PL 5 – Ballera to Moomba Pipeline Continuous inhibitor injection of 5.0ltrs per day (IRN341A target rate, the system was monitored bi-monthly by the Pipeline Asset Management contractor.

• Pig Launcher was treated on 19th October 2010; the Pig Receiver was not

treated in 2010 and has been deferred to 2011. • A Cup/Brush pig was run through the pipeline on the 29th December 2010. • The operation of Cathodic protection units on the pipeline were checked bi-

monthly. • The 100% “on”/“off” CP survey was not carried out in 2010 due to access

problems (ROW flooded). This activity has been deferred to 2011 by means of a Risk Assessment.

• The ROW patrol was not carried out in 2010 due to access problems (ROW flooded). This activity has been deferred to 2011 by means of a Risk Assessment.

13.4.2 PL 9 – Stokes to Mettika Pipeline • Pig launcher/receiver were not treated in 2010 due to access restrictions caused

by floods. These activities have been deferred to 2011. • Continuous inhibitor injection was monitored bi- monthly by the Pipeline Asset

Management contractor. • Routine cleaning pig runs were carried out as the Integrity Management Plan. • The 100% “on”/“off” CP survey was not carried out in 2010 due to access

problems (ROW flooded). This activity has been deferred to 2011 by means of a Risk Assessment.

• The ROW patrol was not carried out in 2010 due to access problems (ROW flooded). This activity has been deferred to 2011 by means of a Risk Assessment.

13.4.2 PL 15 – Moon to Kerna Pipeline • Continuous inhibitor injection was monitored bi- monthly by Pipeline Asset

Management contractor. • The operation of Cathodic protection units on the pipeline were checked bi-

monthly. • 100% “on” / “off CP survey was completed in July 2010, potentials taken showed

that the system complies with Australian Standards. • The ROW was driven at the same time with no reported issues Product transported through Licensed pipelines in 2010 was: Sales Gas (PJ) Ethane (PJ) LPG (Kt) Cond (Ml)

Ballera to Moomba 31.6 3.5 53.8 69.7 Stokes to Mettika 1.6 0.3 4.6 7.2

Moon to Kerna 0.00064 0.00009 0.00073 0.00086


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13.5 ROAD AND WELLSITE LEASE AND ACCESS CONSTRUCTION AND RESTORATION

A large network of roads is maintained in order to provide access to production sites and to drilling locations. Roads are maintained to agreed standards, dependent upon application and the frequency of use. Access to drilling locations and the wellsite area is constructed following the scouting of individual locations to identify a route which has the least environmental impact. A total of 28.3 Km of access road was constructed during 2010 and 17.8 Km of road was restored. The drilling sites scouted, constructed, backfilled and restored are listed in Appendix 4.

There were 46 borrow pits constructed during 2010, to provide fill for well lease and road construction, and 40 borrow pits were restored. No borrow pits were transferred to the land holder.

Performance against the Production and Processing SEO is described in the following table.

13.6 WATER EXTRACTION FROPM COOPER CREEK In accordance with the Production and Processing SEO water extraction from the Cooper Creek is allowed under specific criteria related to flow in the Cooper Creek, refer objective 4. During 2010 Santos took no water under this allocation. Due to flooding and access issues, unable to cross Cooper Ck at Innamincka to access other water source, approval was given to Beach Energy to take water per this for drilling activity at Holdfast 1. Water was only taken in compliance with conditions in SEO. During Dec 2010 0.063 ML were taken, the total for 2010.

Santos Ltd ABN 80 007 550 923 PPL 225, 226 and 227 Santos Operations

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Environmental Objectives and Performance – Production and Processing SEO Environmental


2010 Report Period

Objective 1Minimise any safety risk to public and other third parties.

:

• Reasonable measures

implemented to ensure no injuries to the public or third parties.

All employees and contractor personnel complete a safety induction prior to

commencement of work in the field. All employees and contractor personnel undertake a refresher induction

every 2 years. Signage in place to warn third parties of access restrictions to operational

areas, with particular warnings when potentially dangerous operations are being undertaken.

Necessary measures (e.g. signage/fencing) taken to prevent the public accessing the wellhead equipment or waste relating to a given well.

Demobilisation inspections undertaken at random to ensure that backfilling and waste removal requirements are met.

Permit to work systems in place for staff and contractors in dangerous situations.

All appropriate PPE (personnel protective equipment) is issued and available as required in accordance with company operating requirements and applicable standards.

Effective Emergency Response Plan (ERP) and procedures are in place in the event of a fire or explosion; Annual exercise of ERP.

Communication of rig moves and other potential hazards to safety associated with drilling and well operations to potentially affected parties prior to commencement of operations.

Compliance with relevant speed restrictions on access roads and tracks. Reporting systems for recording injuries and accidents in place, and annual

(at minimum) review of records to determine injury trends. Implementation of appropriate corrective actions. Ensuring safety management plans are updated and reviewed. Wastewater disposal in accordance with Objective 11.

There were no injuries to the public or any third parties Induction training is provided to all Santos and contractor Employees Refresher training is provided. Signs are placed to warn the public about the hazards associated with accessing production areas. A Work Permit System, which is regularly audited, is in place. Santos and Contractor personnel are provided the appropriate PPE. Effective emergency response plans exist, which are regularly exercised. Regular emergency exercises are conducted. Communication of potentially hazardous or unusual tasks is made to affected parties prior to being undertaken. Injury and incident recording and reporting systems are maintained.

Safety management plans are reviewed and updated regularly.


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Objective 2Minimise disturbance and avoid contamination to soil.

:

No evidence of significant subsoil on surface (colour) on the pipeline ROW following construction.

Construction Activities (e.g. pipelines and roads)

No subsidence is evident over pipeline trench.

At pipeline dune crossings, dune profiles have been restored consistent with surrounding dune profiles.

No visual evidence of soil compaction following remediation of the pipeline easement (e.g. hard soil, local water pooling).

The extent of erosion on the ROW is consistent with surrounding land.

No unauthorised off-road driving or creation of shortcuts.

No construction activities are carried out on salt lakes or steep tableland slopes (as defined in EIR).

0, +1 or +2 GAS criteria are attained for goals related to this objective

Santos operational procedures and guidelines are in place and will be followed for construction activities, for example to conserve soil resources:


topsoil is stockpiled separately from subsoil and respread during reinstatement

no windrows remain after pipeline construction (except on dunes where some windrows are inevitable after reprofiling but will quickly disappear

if a crown over the pipeline trench is left to alleviate subsidence, periodic breaches are left to avoid channelling water flows down the ROW

areas of compacted soil are ripped Consider alternate routes during planning phase to minimise environmental

impacts. Works are restricted to construction ROW. The need to traverse sensitive land systems and the method of managing

the impacts must be justified in accordance with company procedures, recorded and available for auditing.

Annual audit of construction practices.

Results of emergency response procedures carried out in accordance with Regulation 31 show that an oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.



Spill response equipment is audited annually. Annual spill response training exercise is undertaken. Refer to Section 3 “Reporting” for clarification of incident reporting

requirements

Soil disturbance is minimised wherever possible. Rootstock is left intact and top soil is stockpiled for respreading. This is respread during site restoration. Off-road driving is actively discouraged. Alternate routes are considered in planning. Work is restricted to ROW.

No construction activity is carried out on salt lakes, steep tablelands or wetland systems.

Audits of construction activity are undertaken with high level of performance.

Borrow pit construction is minimised by reuse of any suitable existing borrow pit/s. Borrow pits are restored on an ongoing basis to

ensure the most time efficient restoration


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Objective 2 contMinimise disturbance and avoid contamination to soil

:


Fuel and Chemical Storage, Handling and Transportation

Soils remediated to a level as determined by the SHI Decision Framework.

Also refer to Objective 12.


Oil/Condensate Spills (Pipeline/Road Transport)



• 0, +1 or +2 GAS criteria

Produced Formation Water (PFW)

are attained for goals related to produced formation water impacts on soil. • PFW EMP developed

and objectives achieved.

All fuel, oil and chemicals are stored, handled and transported in accordance with appropriate standards and guidelines e.g. Australian Standard AS 1940, Australian Dangerous Goods (ADG) Code, EPA guidelines 080/07 Bunding and Spill Management.


Fuel and chemical storage, handling and transport procedures are reviewed and monitored in audit process.

Records of spill events and corrective actions are maintained in accordance with company procedures.

Spills or leaks are immediately reported and clean up actions initiated. Logged incidents are reviewed annually to determine areas that may require

corrective action to reduce spill volumes in subsequent years (and drive continual improvement).

Audit against EHSMS standards for underground storage tanks and bunds on a four yearly minimum frequency.

Pipelines are compliant with AS2885 pipeline standards Oil/Condensate Spills (Pipeline/Road Transport)

Pipeline Management System is reviewed annually. Pipelines are inspected and maintained in accordance with Pipeline Integrity

Management System Spills or leaks are immediately reported and clean up actions initiated. Records of spill events and corrective actions are maintained in accordance

with company procedures.

Develop (in consultation with PIRSA and the EPA) and implement Environmental Management Plan (EMP) following the PFW facility status review that has been conducted.


Spills that occurred outside areas designed to contain them are reported at quarterly meetings.

Records of spills are maintained.

Spills are reported in accordance with legislative and company requirements.

Incident registers are reviewed to

determine areas requiring improvement and to ensure ongoing improvement.


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Objective 2 contMinimise disturbance and avoid contamination to soil

:

All domestic wastes are disposed of in accordance with EPA licensing requirements.


No evidence of rubbish or litter on ROW or at campsites / facilities.

No spills or leaks from sludge treatment process and sludge pits.

No increase in contamination at LTUs designated treatment area. Refer to assessment criteria for Objective 11.

Site activities to be audited against EPA licence for Waste Depot on a minimum two years schedule.


EHS04 Waste Management is adhered to. Audit against EHS04 Waste Management – 4 yearly minimum. Covered bins are provided for the collection and storage of wastes. All loads of rubbish are covered during transport to the central waste facility. Disposal areas are not established in locations, which pose an unacceptable

hazard to stock or wildlife. Sewage treatment facilities to be operated in accordance with design

criteria. Refer to Objective 11.Refer to Objective 11.

Domestic wastes are disposed of in accordance with EPA License Requirements. Audits identified good performance.

Waste bins and containers are covered during transport.

Waste pits are located only at Authorised facilities and are fenced to exclude stock and wildlife.

A waste management plan was developed and submitted to the EPA for approval.

There were no incidents at installed sewage disposal facilities.

Objective 3Avoid the introduction or spread of pest plants and animals and implement control measures as necessary.

: No weeds or feral

animals are introduced to, or spread in, operational areas as a consequence of activities.

Weed management plans are implemented where priority weed species are identified.

Where appropriate, weed and feral animal management strategy is in place

(avoidance and control strategies). Vehicle and equipment wash downs to be initiated in accordance with the

management strategy.

Weed and feral animal strategies are in

place. There is no evidence of the introduction of weeds or feral animals.

Vehicles and rig equipment is washed in

accordance with the management strategy.


45


Assessment Criteria

Guide to How Objectives Can Be Achieved Performance 2010 Report Period


Objective 4:

0, +1 or +2 GAS criteria are attained for goals related to this objective as listed in Appendix 1 and 2.


Construction activities (e.g. access tracks or pipelines) are located and constructed to maintain pre-existing water flows (i.e. channel contours are maintained on floodplains and at creek crossings).

No water (surface or groundwater) contamination as a result of construction activities.



No unlicensed discharge of water to a creek, river or lake..

No significant change in surface or groundwater contamination as a result of waterflood activities..

PFW Waterflood

• Constructed activities undertaken are designed and managed to avoid diversion of water flows.


• Sensitive land systems (e.g. wetlands) avoided wherever possible. Where activities are undertaken in or near these areas, appropriate review, assessment and mitigation measures are in place to ensure that surface water flows are maintained and contamination of surface water and groundwater is avoided.

Refer to Objective 2. Produced Formation Water (PFW)

Water disposal ponds are located away from areas which are inundated during floods where possible (preferably above the 100-year flood level).

Interceptor pits are not located in areas prone to inundation by flooding.

Pumps and associated equipment installed within containment device with an adequately sized containment sump (e.g. at least 9m3).

PFW Waterflood


Drainage channels and patterns are maintained or

restored to minimise impeding or changing natural drainage patterns associated with well leases, access tracks and roads and at creek crossings.

Work programs are modified to avoid periods of

flooding and other seasonal influences and variations.


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Objective 4 cont


Soils remediated to a level as determined by the SHI Decision Framework. Also refer to Objective 12.


No water (surface or groundwater) contamination as a result of these activities.

No significant change in flow or contamination as a result of extraction activities.

Cooper Creek Water Extraction

All fuel, oil and chemicals are stored, handled and transported in accordance with appropriate standards e.g. Australian Standard AS 1940, Australian Dangerous Goods (ADG) Code, EPA guideline 080/07 Bunding and Spill Management.


Fuel and chemical storage, handling and transport procedures are reviewed and monitored in an audit process.

Records of spill events and corrective actions are maintained in accordance with company procedures.

Spills or leaks are immediately reported and clean up actions initiated.

Logged incidents are reviewed annually to determine areas that may require corrective action to reduce spill volumes in subsequent years (and drive continual improvement).

Implementation of the SHI Decision Making Framework approved in January 2010.

Approval to conduct surfacewater extraction from Cooper Creek is subject to the following conditions:


An approvals request for any proposed extraction is raised internally. This request will include estimated total volume required.

The above request must demonstrate that PFW and Borewater of an acceptable quality cannot be sourced within an economically viable haulage distance (maximum 2 hour return journey).

Any approved extraction occurs where water flow at Callamurra is >= 2.15m (>= 0.1m flow at Innamincka Causeway) and rising, and never at permanent water refuges (e.g Callamurra). Maps of approved surfacewater extraction points at Innamincka, Kudrieke and Mitchie Crossings are included in Appendix 2 of the EIR Addendum (Santos, 2010).

Cumulative extraction volume to be capped at 15 ML per year. Cumulative extraction volumes to be recorded in monitoring

database and included in annual PIRSA reporting. Non-conformance with the above is a reportable incident - see

Section 3 “Reporting” for incident definitions.

Records of spills are maintained Spills are reported in accordance with legislative

and company requirements. Incident registers are reviewed to determine areas

requiring improvement and to ensure ongoing improvement.

Santos took no water from the Cooper Creek under this allocation. Due to flooding and access issues, unable to cross Cooper Ck at Innamincka to access other water source, approval was given to Beach Energy to take water per this for the drilling activity at Holdfast 1. Water was only taken in compliance with conditions in SEO. During Dec 2010 0.063 ML were taken, the total for 2010.


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Objective 4 cont

Refer to assessment criteria for Waste Disposal for Objective 2.



Site activities to be audited against EPA licence for waste depot on a minimum of every two years.


Audit against EHS04 Waste Management – 4 yearly minimum. Covered bins are provided for the collection and storage of

wastes. All loads of rubbish are covered during transport to the central

Soil removed to land farm in some instances to eliminate contamination. No spill is likely to have impacted ground water.


48


Oil/Condensate Spills (Pipeline/Road Transport)



waste facility. Pits are not established in locations which pose an

unacceptable hazard to stock or wildlife. Sewage treatment facilities to be operated in accordance with

design criteria.

Pipelines are compliant with AS2885 pipeline standards. Oil/Condensate Spills (Pipeline/Road Transport)

Pipeline Management System is reviewed annually. Pipelines are inspected and maintained in accordance with

Pipeline Integrity Management System. Spills or leaks are immediately reported and clean up actions

initiated. Records of spill events and corrective actions are maintained in

accordance with company procedures. Refer to Section 3 “Reporting” for clarification of incident

reporting requirements

Results of emergency response procedures, carried out in accord with Regulation 31, show that the oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.



Spill response equipment is audited annually. Annual spill response training exercise is undertaken.

Emergency response procedures for spill response

are in place and regularly exercised. Learning from exercises and actual events are included in Plans.

Oil Spill Plans are up-to-date and regularly drilled. Spill response equipment and procedures are

regularly audited. Regular drills are conducted.


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Avoid disturbance to sites of cultural and heritage significance.

Objective 5:

Proposed well sites and

access tracks have been surveyed and any sites of Aboriginal and non-Aboriginal heritage identified.

Any identified cultural and heritage sites have been avoided.

Consultation with stakeholders (i.e. government agencies,

landholders etc) in relation to the possible existence of heritage sites, as necessary.

Heritage report forms completed for any sites or artefacts identified, and report forms forwarded to the Aboriginal Heritage Branch, Aboriginal Affairs and Reconciliation Division (AARD).

Survey records are kept and are available for auditing. Areas requiring remediation which lie outside previously

surveyed sites should be surveyed in accordance with company heritage clearance procedures.

A procedure is in place for the appropriate response to any sites discovered during drilling activities.

Note clearance is in place, compliance with the negotiated agreement

: Where a negotiated agreement or determination for heritage

or determination takes precedence over the above criteria.

Construction sites are inspected for cultural

heritage sites. Identified sites are avoided. Significant sites are fenced.

Identified sites are avoided.

Minimise loss of aquifer pressure and avoid aquifer contamination.

Objective 6

There is no uncontrolled

flow to the surface (i.e. no free flowing bores).

No significant change in water quality from the injection aquifer

Produced Formation Water (PFW) Waterflood Injection Wells

The volume/flow of water used by the Moomba Plant is

continuously monitored to ensure appropriate management. Water usage is monitored, reviewed and management

strategies implemented to minimise wastage. Review water licensing requirements and allocation plans.

Aquifer water quality monitored where appropriate through testing carried out during Waterflood activities.

Produced Formation Water (PFW) Waterflood Injection Wells

There were no well bore failures reported


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Assessment Criteria


Objective 7Minimise disturbance to native vegetation and native fauna.

:

Any sites of rare, vulnerable and endangered flora and fauna have been identified, flagged and subsequently avoided.

Construction Activities

No removal of trees / vegetation of priority 1, 2 or 3 in Field Guide1

No removal of trees at campsites.

in areas where removal could have been avoided.

No evidence of tree removal where trimming appropriate.

The type and density of vegetation on the rehabilitated ROW is consistent with the surrounding landscape, but less mature. Note: assessment will take into account that regrowth is a time and rainfall dependent process.

0, +1 or +2 GAS criteria are attained for goals related to this objective as listed in Appendix 1 and 2.

Proposed construction areas have been assessed for rare, vulnerable and endangered flora and fauna species before the commencement of construction.

Construction Activities

Consider alternate routes during planning phase to minimise environmental impacts.


Assessment records are kept and are available for auditing. Optimised ROW widths are identified and implemented. Trees are trimmed rather than cleared where possible. Root stock is not removed beyond 3m of trenchline and ROW is

either only lightly graded or not graded. Where vegetation is removed, it is respread over the full width of the ROW (excluding the access track).

Study undertaken to determine habitats for rare,

vulnerable and endangered species. Areas identified are avoided.

Vegetation impacts are minimised during well

lease access and construction by scouting surveys prior to the entry of construction machinery. Wherever possible, significant vegetation is avoided.

1 Field Guide refers to the Field Guide to the Common Plants of the Cooper Basin – South Australia and Queensland (Wiltshire and Schmidt 2003)


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Assessment Criteria


Objective 7 Cont

0, +1 or +2 GAS criteria for goals related to this objective, as listed in Appendix 1 are attained during site selection and construction.

Borrow Pits

Refer to assessment criteria for objectives 2 and 4.

Fuel and Chemical Storage and Management

Refer to assessment criteria for Objective 2, 4 and 11.

Waste Management

Pits are not established in locations which pose an unacceptable hazard to stock or wildlife (i.e. not within 50m of any roads or access tracks, well leases or other plant and equipment).

Borrow Pits


Borrow pits are restored as soon as practicable after material extraction is complete to a standard consistent with the surrounding land use.

Borrow pits are restored to minimise water holding capacity, where agreements are not in place with stakeholders

In recognised conservation reserves (i.e. Innamincka Regional Reserve) excavations are left in a state as agreed with the responsible statutory body.

Refer to Objectives 2 & 4. Fuel and Chemical Storage and Management

Covered bins are provided for the collection and storage of putrescible wastes.

Waste Management


Pits are not established in locations which pose an unacceptable hazard to stock or wildlife.

Sewage treatment facilities to be operated in accordance with design criteria.

PFW pits are fenced as appropriate to minimise wildlife access.

Borrow pit site selection provides for the

avoidance of vegetation impacts. Borrow pits are restored on an ongoing basis to allow natural vegetation regrowth to recommence. Where necessary, borrow pits are reopened to minimise vegetation impacts.


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Assessment Criteria


Objective 7 Cont

Significant Environmental Benefit (SEB) for native vegetation clearance approved by PIRSA (where delegated authority applies) or Native Vegetation Council (NVC).

Native Vegetation Act SEB

Significant environmental benefit obligation is ultimately satisfied / implemented.

Native fauna Fauna Management

casualties associated with construction activities restricted to as low as reasonably practical (ALARP).

Work (or payment to Native Vegetation Fund) undertaken to achieve an SEB for native vegetation clearance.

Native Vegetation Act SEB

SEB requirement either: - determined using the Guidelines (DWLBC 2005) or - negotiated with PIRSA or the Native Vegetation Council

where SEB calculation differs from the standard methodology in the Guidelines.

No domestic pets allowed at camps or worksites. Fauna Management

Feeding of wildlife (e.g. dingoes) is not permitted. Where possible, provision of fauna exit ramps every 500m in

open trenches, with other mechanisms for fauna exit (branches, mesh etc.) at more regular intervals in between.

Inspection of trenches and removal of trapped fauna, where appropriate.

Minimise length of time trench is open where practicable.


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Assessment Criteria Guide to Objectives Achievement Performance 2010 Report Period

Objective 8Minimise air pollution and greenhouse gas emissions.

:

Compliance with EPA requirements.

Gathering Systems/Satellite Facilities/Moomba Plant

Conduct production operations in accordance with appropriate industry accepted standards.

Gathering Systems/Satellite Facilities/Moomba Plant

Continually review and improve operations. Appropriate Emergency Response Procedures are in place

in case of a gas leak.

Dark smoke emissions are monitored and reported to the SA EPA. Improvement activities associated with the Moomba Flare continued. “Sun Pumper”, a solar power chemical pumps to inject the surfactant for the micro strings have been installed, this replaces the gas venting typically caused by chemical pneumatic driven pumps. Emergency response procedures are maintained. The post fracture stimulation clean up flow procedures to reduce the amount of gas flared which were refined through 2008 and 2009 remained largely unchanged in 2010. Consequently dry gas wells were typically only flowed 4 to 5 days to atmosphere (flaring were possible) to clean up frac fluids prior to the wells being shut in and connected. Liquids rich gas wells were flowed for similar durations, but were flowed through separators to capture the liquids with the gas going to flare.

Objective 9Maintain and enhance partnerships with the Cooper Basin community.

: No reasonable stakeholder

complaints left unresolved.

Relevant affected parties are notified and consulted on

proposed activities. Forward development plans are presented to the local

community. Local community projects and events are sponsored and

supported where appropriate. Industry membership of appropriate regional land

management committees and boards

Relevant parties are notified and consulted

on proposed activities. There were no complaints, concerns or issues left unresolved.

Local community events and activities are

actively supported. Membership and active participation is made

to regional management committees and Boards.


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Objective 10Avoid or minimise disturbance to stakeholders and/or associated infrastructure

: No reasonable stakeholder

complaints left unresolved.

No impacts on local stakeholders from the extraction of water from the creek system.



Induction for all employees and contractors covers pastoral,

conservation, tourism, legislation and infrastructure issues. Relevant stakeholders are notified prior to survey and

construction of well sites, camp sites and access tracks and undertaking of operations (pursuant to the Regulations). Borrow pits left open (unrestored) if requested by stakeholder and upon receipt of letter of transfer of responsibility to stakeholder.

Gates or cattle grids are installed to a standard, consistent with pastoral infrastructure instead of fences where crossings are required for access.

All gates left in the condition in which they were found (i.e. open/closed).

Fences repaired to ‘as before’ standard following pipeline construction.

Potential sources of contamination (e.g. formation water ponds) are fenced as appropriate to prevent stock access.

Written evidence that stakeholder is satisfied with water disposal arrangements.

System is in place for logging stakeholder complaints to ensure that issues are addressed as appropriate.

Requirements of the Cattle Care and Organic Beef accreditation programs are complied with.

In recognised conservation reserves (i.e. Innamincka Regional Reserve) excavations are left in a state as agreed

Refer to Objective 4. Cooper Creek Water Extraction

The importance of developing and

maintaining good relationships with landholders is stressed to all employees and contractors.

Relevant stakeholders are notified of and consulted about projects and are provided with information, maps etc.

No Borrow pits were formally transferred to landholders.

Grids, fences, gates installed are to a standard acceptable to the landholder.

All gates are left “as found”. In response to concerns regarding potential

for contamination of cattle an extensive fencing of facilities program was completed in 2005

Landholder complaints and requests are logged to ensure closeout. There were no complaints lodged.

Cattle management systems (cattle care) are recognised and complied with.


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Optimise (in order of most to least preferable) waste avoidance, reduction, reuse, recycling, treatment and disposal

Objective 11:

Domestic wastes are disposed

of in accordance with EPA licensing requirements.

Wastewater (sewage and grey water) disposed of in accordance with the Public and Environmental Health (Waste Control) Regulations 1995 or to the Department of Health’s satisfaction.

No spills or leaks from sludge treatment process and sludge pits.

No increase in contamination at LTUs designated treatment area

Chemicals and oil are purchased in bulk. ‘Bulki bins’ or

other storage tanks are in place for large volume items. Fencing around waste disposal facility is regularly inspected

and maintained. Waste streams are segregated on site to maximise

opportunities for waste recovery, reuse and recycling. Evidence/records are maintained showing that recyclable

material has been returned to Moomba Waste Management Depot.

Production of waste is minimised by specifying reusable, biodegradable or recyclable materials in procurement, where practical.

Waste audit conducted at 5 year minimum interval. Waste water (sewage) disposal is where possible in

accordance with the Public and Environmental Health (Waste Control) Regulations 1995 (which require that the waste water disposal system must either comply with the Standard for the Construction, Installation and Operation of Septic Tank Systems in SA or be operated to the satisfaction of the Department of Health) and the Environment Protection (Water Quality) Policy 2003.

Evidence/records maintained to show that appropriately designed sewage facilities have been constructed.

Chemicals, cement & inhibitors are

purchased in bulk containers. Waste material is disposed of at EPA

Approved facilities.


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Objective 12Remediate and rehabilitate operational areas to agreed standards.

: Contaminated sites are

remediated to a level as determined by the approved SHI Decision Framework.

Contaminated Site Remediation

Refer to assessment criteria for Objectives 2, 4, 7 and 11.

Construction Site and Access Track Restoration

0, +1 or +2 GAS criteria are attained for ‘minimise the visual impact’ and ‘revegetation of indigenous species’ as listed in Appendix 4.

The attainment of 0, +1 or +2 GAS criteria as in Appendix 1.

Borrow Pit Restoration

Surface structures are removed and the ground surface re-contoured to approximate pre-existing contours unless alternative agreement is reached with the regulator and stakeholders.

Production Facility Abandonment

0, +1 or +2 GAS criteria are attained for ‘minimise the visual impact’ and ‘revegetation of indigenous species’ as listed in Appendix 4, unless alternative agreement is reached with the regulator and stakeholders.

Refer to criteria for contaminated site remediation under this objective (above).

Refer to the assessment criteria for Objective 11.

Rehabilitation/abandonment plans for regulated activities will

be developed in consultation with relevant stakeholders.

Compacted soil areas have been ripped (except on gibber and tablelands) and soil profile and contours are reinstated following completion of operations.

Construction Site and Access Track Restoration

The following steps will typically be undertaken unless otherwise agreed with the regulator and stakeholders:

Production Facility Abandonment

hydrocarbon and contaminants will be reduced to an acceptable level in buried structures (e.g. pipelines, tanks, pits) as determined by the approved SHI Decision Framework.

hazardous materials will be stabilised or removed including ground decontamination.

hazardous material dumps will be clearly marked and a monitoring plan developed and implemented.

surface structures will be removed and re-used / recycled where appropriate

waste will be removed and recycled where appropriate (refer to Objective 11).

foundations will be levelled and covered (the standard to which they will be restored will be defined as a result of stakeholder consultations).

disturbed areas will be re-contoured to approximate pre-existing contours, natural drainage restored and compaction relieved (e.g. by scarification or ripping where appropriate) to promote rainwater infiltration and enhance seed capture and germination.

contour banks and energy dissipating structures will be constructed where necessary to protect disturbed areas from erosion prior to stabilisation

No stakeholder complaints are unresolved. No contaminated sites Access tracks are restored in accordance with restoration guidelines. No Activity


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Objective 12 Cont: Attainment of the following (unless otherwise agreed with stakeholders and approved by the regulatory authority):

Pipeline Abandonment

No evidence of waste, redundant equipment / infrastructure or signs and markers on abandoned pipelines.

Refer to criteria for contaminated site remediation under this objective (above).

Refer to the assessment criteria for Objective 11.

The following steps will typically be undertaken unless otherwise agreed with the regulator and stakeholders:

Pipeline Abandonment

all aboveground pipes and supports will be assessed for the condition of the pipe for either salvage or for dismantling and re-use.

all underground pipe work will be cut-off (at a minimum depth of 750mm below the natural surface or at pipeline depth, removed and blinded below the surface.

all aboveground signs and markers will be removed. all pipeline protection systems will be removed to allow the

pipeline to degrade in-situ. monitoring and auditing of abandoned pipelines will be

undertaken. all pipelines which are partially or wholly left in-situ will be

accurately mapped and recorded. Records will be prepared and submitted to the appropriate authority.

No Activity

Minimise as far as reasonably practicable interruptions to natural gas supply.

Objective 13: No interruptions to natural gas supply that cause significant social disruption.

Adequate contingencies are in place which seek to address a prudent level of security of supply in the case of short and unforseen interruption events (e.g. adequate gas storage).

Pipelines are designed, operated and maintained in accordance with AS 2885.

Plant and equipment are designed, operated and maintained in accordance with appropriate industry accepted standards.

Emergency Response Plan (ERP) and associated procedures are in place and exercised.

Results and recommendations of plant and facility hazard reviews, including the five (5) yearly Fitness for Purpose assessment, are appropriately addressed.

Significant operations-specific hazards and risks are summarised in the Significant Hazard Risk Register (SHRR).

There was one gas supply reduction event from the Moomba Plant during 2010. Supply of sales gas into the Moomba to Adelaide Pipeline ceased up to 7am on the 1st of May 2010. During this period of 37½ hours, from when gas supply ceased, at no stage was there any significant threat to the security of gas supply to either Adelaide or Sydney.


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14 REPORTS ISSUED DURING THE 2010 LICENCE YEAR The following reports were generated for Santos purposes or forwarded to PIRSA in 2010.

• Moomba South Central Gas Satellite Flare Incident • Glass Reinforced Epoxy Pipeline Risk Report • Significant Environmental Benefits Summary July 2009 to June 2010 • EHSMS Assessment results 2009 • Cold Service Seal Failure Investigation • Moomba Plant Train 4 Pump set PSV Exhaust pipe incident • Disruption to Gas supply April 29 2010 • Instrument tube failure LRP Train B • Valve body leak Gidgealpa Trunkline • Crack on Sockolet Moomba 60 A Residue compressor Annubar • Nephrite 1 Flowline failure • Big Lake fuel gas leak

15. STATEMENT OF ACTUAL AND PROPOSED EXPENDITURE 2010/2011

Confidential


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16. GLOSSARY OF TERMS AEGR Asset Engineering Governance Review AFL Associated Facility Licence AIMS Asset Integrity Management System ALARP As Low As Reasonably Practicable APB Anaerobic acid-Producing Bacteria APPEA Australian Petroleum Production and Exploration Association BBLS Barrels CP Cathodic Protection DA Direct Assessment DCVG Direct Current Voltage Gradient DISCEX Discussion Exercise DPCU Dew Point Control Unit DFW Department for Water (previously DWLBC) ECS Explosives Coordination Section EHS Environment, Health and Safety EHSMS Environment, Health and Safety Management System EIR Environmental Impact report EPA Environment Protection Authority EPIRB Emergency Position Indicating Radio Beacon EOC Emergency Operations Centre EMP Environmental Monitoring Point ERF Environmental Report Forms ERP Emergency Response Plan ESP Electric Submersible Pump FAIR Fixed Asset Integrity Review FSA Formal Safety Assessment GAS Goal Attainment Scaling GLNG Gladstone Liquefied Natural Gas GRE Glass Reinforced Epoxy HAZOP Hazard and Operability ILI In Line Inspection IMP Integrity Management Plan KPI Key Performance Indicator Kbbls Kilo barrels (1,000 barrels) Kt Kilo tonne (1,000 tonnes) LRP Liquids Recovery Plant LTU Land Treatment Unit MIC Microbiological Induced Corrosion MOC Management of Change mL mega litre (1,000,000 litres) mm BBLS Million barrels OPEREX Operational Exercise PAMS Pipeline Asset Management System PEL Petroleum Exploration License PJ Peta-joule (a unit of heat) PL Pipeline Licence PFW Produced Formation Water PIRSA Primary Industries & Resources SA PCP Progressive Cavity Pump PPL Petroleum Production License PPE Personal Protective Equipment PSM Process Safety Management RFDS Royal Flying Doctor Service ROW Right of Way (for pipelines) SACB South Australian Cooper Basin SACBJV South Australian Cooper Basin Joint Venture SEO Statement of Environmental Objectives SHRR Significant Hazard Risk Register SHI Soil Health Index SIMP Santos Incident Management Plan SOP Standard Operating Procedure SRB Sulphate Reducing Bacteria SWSA Safe Work SA TEWT Tactical Exercise Without Troops WAC Work Area Clearance WOPRA Whole of Plant Risk Assessment


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17. APPENDICES Appendix 1 PIRSA Meetings - 2010 Appendix 2 Environmental Incidents Summary - 2010

Appendix 3 Emergency Drills - 2010

Appendix 4 Well Drilling Lease Scout, Construct, Backfill and Restoration - 2010

Appendix 5 Well Workover Summary - 2010

Appendix 6 Well Summary – Producing and Suspended Wells

Appendix 7 Flowlines Constructed – 2010

Appendix 8 Pipeline Inspection, Testing and Repair - 2010

Appendix 9 Details of Seismic Activity Appendix 10a 2010 Production Facility Projects

Appendix 10b 2011 Production Facility Projects – Proposed Appendix 11 Wells Drilled - 2010 Appendix 12 2010 Reports, including Geological and Reserves Reports


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Appendix 1 PIRSA Meetings – 2010 Over and above the significant reporting requirement to PIRSA associated with the conduct of operations in the Cooper Basin under the Petroleum and Geothermal Energy Act (2000) and Petroleum and Geothermal Energy Regulations (2000), a series of regular meeting are held with PIRSA at quarterly intervals, to review performance. These meetings included the following: Quarterly Santos / PIRSA Performance Meeting

4th Quarter, 2009 - 5 February 2010 1st Quarter, 2010 - 14 May 2010 2nd Quarter, 2010 - 6 August 2010 3rd Quarter, 2010 - 5 November 2010 2010 Development Plan & Operational Review - 10 May 2010


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Appendix 2 Environmental Incidents Summary - 2010 Total Incidents

57 % of Total Incidents Comments

Location Plant Field -Satellite/Facility -Wells -Pipelines -Other

14

28 54 3 1

Spills Oil Condensate PFW Chemical Lube Oil Hydraulic Oil Diesel Saline Water

57 12 9 4 4 6 6 2

1 Grey Water event

Volume >100 m3 21 – 99 m3 6 - 20 1 - 5 500lt – 1m3 100lt – 499lt 50lt – 99lt 10lt – 49lt 5lt – 10lt <5lt

- 3 3 12 2 20 10 30 10 10

Root Cause – PIRSA Design Monitoring & Maintenance Work Practices Communication Supervision Risk Management Induction/Training

7 81 10 - - 2 -

1 Environmental, rain event

Consequence Moderate Minor Negligible

- 12 88

Risk Low Moderate Substantial

100 - -


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REPORTABLE to PIRSA 2010 – Includes NOTIFIABLE WORK RELATED INJURY OR DANGEROUS OCCURRENCE

Total Incidents 13

% of Total Incidents Comments

Report Type Injury Dangerous Occurrence Reportable to PIRSA

- 33 67

Location Plant Field -Satellite/Facility -Wells -Pipelines -Other Camp

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8 31 8 - -

Root Cause – PIRSA Design Monitoring & Maintenance Work Practices Communication Supervision Risk Management Induction/Training Other

8 77 15 - - - - -


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Appendix 3 Emergency Drills - 2010 Date Drill Type Description of Scenarios Comment Actions

Multiple Other Muster Point Controller Training. The muster point training delivered on area of responsibility i.e. Airport, Training Room, Operations Camp or Main Gate Muster Points.

Muster Point Controller Training is delivered on a regular basis to capture new employees and new position holders with Muster Point Controller responsibilities.

In addition Muster point controllers are now included in exercises to enable practise of their roles.

A copy of training records kept in the Moomba EOC Muster Point Controller training record folder.

Multiple Other Individual EOC Roles and Responsibilities Training.

EOC training is delivered on a regular basis on an as needs basis to cover new employees with EOC position responsibilities, Also covered off by the high number of EOC exercises 2010

A list of EOC position holders is kept in the EOC

A copy of training records kept in the Moomba EOC and recorded on AIMS

Multiple Drill Rope Rescue and Confined Spaced Rescue Training. Training also was conducted on vessels and real type scenario’s prior to higher risk activities in the plant e.g. DPCU 1, Waste Heat Boiler and Boiler 10

Moomba ESO's conducted multiple Rope Rescue and Confined Space Rescue Training drills incorporating the following skills – Knot passing which incorporates a number of skills, high directional anchor points, mechanical advantage pulley systems, structural anchors, Knots, safe operation of the rescue air cart and ancillary equipment, hazard awareness and control, casualty handling, and inch-worming techniques.

All participants agreed that the session was educational, providing a good opportunity to refresh Confined Space Rescue, Heights Rescue skills and extend their knowledge of Rope Haulage Systems for technical rescue applications.

Carry out regular knot tying refresher sessions after toolbox meetings.

Further Rope Rescue exercises to be scheduled providing for skills maintenance in Knots, Haulage Systems including mechanical advantage ratios for Pulley systems etc.


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Date Drill Type Description of Scenarios Comment Actions

Multiple Exercises EOC Roles and Responsibilities Training. A series of exercises developed to deliver real time scenarios occurring in the plant to help familiarise the relevant position holders with their roles and responsibilities. 2 x primary & 5 x Alternate EOC exercises were conducted to capture personnel from all shifts. Note: the Alternate EOC exercises started in the primary EOC and relocated as part of the exercise to the Alternate EOC in the Moomba Comm’s Techs workshop.

The exercises are designed around Moomba Plant Pre Plan Contingencies to as close as practical reflect possible incidents with-in the plant, realistic information being fed into the EOC to prompt relevant response and notifications from the responsible positions in the EOC.

Ensure the Admin Gas Detector is in calibration and if being serviced a replacement detector is available.

Investigate and ensure all required pagers are on call out lists and operating correctly.

Develop role description and list of responsibilities for the Cooper basin Field Services Team leaders in the Moomba EP during next update

Include the location of spare fuel for the generator and spare radios / batteries on the Alt EOC lay out drawing in the Moomba EP during next update

Source 2 x emergency torches and place in a prominent position in the Alt EOC

Update page 6.7 Section 4 from channel 9 to the incident channel in the Moomba EP during the next update

Programme ES direct 1 into the alt EOC radio

Place copies of Moomba environs and plant maps in all MPC resource

Investigate suitability of current phones in use for mobile communications between EOCs during EOC transfer operation

Ensure muster point print out system works as it is supposed to, that it will run off the back-up power generator in the advent of a power failure and that the log-on is available to all communications officers and is included in the instructions

Provide Emergency Services Team Leader with step by step instructions on how to generate a muster point print out at the alternate EOC

Update the folders in the EOC to reflect what’s in the current Emergency Plan.


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Multiple Drill Road Crash Rescue Vehicle Stabilisation Training.

Emergency Services Officers conducted several training drills at the Moomba Fire Training Ground. Incorporating various evolutions of RCR e.g. Stabilisation, Primary Entry, Hydraulic Tool utilisation, Rapid intervention hand operated Combi Tool (Helicopter Kit)

Scenario’s were designed to practise a wide range of skills and incident type likely to be encountered in the Cooper Basin)

Note: Hydraulic Rescue Tools and techniques have a wide range of applications and are not limited only to Road Crash Rescue.

The session was conducted safely without any injuries or incidents.

Investigate upgrading Hydraulic Rescue Equipment suitable for NCT (New Car Technology)

(Upgraded equipment has been purchased to be commissioned early 2011)

19–20/1/10 A&B Shift

2-4/2/10 C&D Shift

Course and multiple Drill

Arial Appliance Training Emergency Service officers conducted sky jet appliance operation drills at the Moomba FTG. The drills involved positioning the appliance, raising, slewing and extending the areal boom, delivering water and foam from master stream nozzle onto a designated target from tank and hydrant supply.

ESO's positioned sky jet fire appliance and raised ladder ready for use as a static anchor point. Rope rescue techniques were used to rescue fallen worker from rescue tower prop at the fire training ground.

skills used included harness waring, knots, 3-1 systems, 6-1 systems, anchor points, main line and belay line handling, Sky jet training, casualty handling and rescue.

A step back was conducted prior to the commencement of the exercises to identify any possible hazards, and any mitigation measures. The exercise was conducted safely without incident or injury, and no damage to any equipment occurred.

Some mechanical issues were identified during the training, these have been captured on a separate IMS report and the appliance has been taken to North Point for repairs


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27-29/8/10 D&A shift 6-8/10/10 B&C shift

Course + Final Drill

Respond to Aviation Incident Cooper Basin Emergency Services team completed a nationally accredited training course - Respond to Aviation Incident (General) PUAFIR305B.

The course included theory and practical

Components covering aircraft design & materials, airport layout, general hazards, specialist hazards, fire fighting & rescue strategies, incident control and other considerations.

The final practical assessment involved a mock aircraft incident with live fire (wheels, engine, fuselage and running fuel) with 15 passengers on board. Participants had to extinguish all fires and then carry out an internal search and rescue to locate and remove the 15 passengers from the aircraft.

All objectives were achieved safely.

01/10/10 Drill Incident Arrival and SAR SANTOS Emergency Services were called out to a building fire in the rear yard of O&G. On arrival, it was communicated that two employees had entered the burning building and had not reappeared. O&G personnel mustered accordingly and E/S carried out successful rescue and fire fighting techniques, commenced first aid including CPR and administration of Oxygen. Sky Jet crew extinguished fire and conducted secondary search, then commenced to assist First Attack crew with first aid until arrival of RFDS.

Second security person required for Emergency Exercises

With prior notice from Emergency Services, an extra security guard is needed during Emergency response exercises. The extra guard can assist with the communications broadcast during the exercise whilst the other guard carries on with "journey management" aspect of Cooper Basin communications

Training session conducted safely without any incidents or equipment damage


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21/03/10 Drill Confined Space Entry Rescue

Emergency Services - Moomba conducted an exercise at the Moomba Fire Training Ground, utilising the training tower with the scenario of an injured person at the bottom of a vessel.

This involved stabilising and then extracting the injured person from the confined space and raising them to the top with the use of a 6:1 confined space haulage system, tripod, harnesses, spreader bar and breathing apparatus escape sets supplied by a supplied air breathing apparatus system.

After the injured person was extracted to the top surface he was transferred to a basket stretcher and then lowered to grade with an Emergency Services Officer tending the stretcher.

This exercise was conducted with the aid of the on-site health and safety advisor.

This exercise is to directly practice/ rehearse retrieving personnel from heights such as the CSE work being conducted on the Waste Heat Boiler B and Boiler 10.

All training was achieved without injury or incident.

Command and Communication

Line of sight communication Radio communication Channel 6 Safety Officer ESO 1

Standard PPE including chin straps on helmets, Manual Handling Hydration


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09/12/10 DISCEX Moomba FC47 Operations Camp Muster Point/ Camp evacuation training.

Muster point exercise to practice ESS evacuation procedures.

FC47 Camp main muster Point cannot be safely used because of fire in the kitchen area and/or administration area. Smoke and flames are impacting on the muster area and Emergency Service vehicles and personnel will need to combat the incident from the same location.

Mission

To identify suitable areas within the camp to muster safely in the event the current muster point cannot be used

Execution To be executed as a desktop involving the key stakeholders for Spotless.

Administration & logistics

Notes to be taken during discussion with final outcomes to be written up and entered into the IMS.

Command and communication

Discussion will be stimulated by the ESO. Input and ideas will be discussed by Spotless staff.

It was stated there is no right or wrong answer. A lot of factors need to be considered when opening an alternate muster point and these were discussed below:

Numerous locations were considered for this scenario. Factors which were taken into consideration were wind direction, time of day/night of the incident, amount of people mustering, How to identify the alternate Muster Point, manpower and communication.

It was decided the probable safest alternate mustering area would be the car park area outside the medical centre.

Communication was also discussed and will rely on staff members directing occupants to the right area safely being identified by wearing a vest or tabard.

Discussion was also focussed on identifying the alternate muster point. Was there a need to sign the area or install a green rotating beacon and does there need to be another muster point bag stored at this location. It was agreed for the frequency of use that the operation of the muster point can be managed without formally identifying the area. Also identifying this area may add confusion with the current muster point.

All spotless staff will be briefed on this discussion and made aware of the alternate muster point and highlighting the individual rolls of each staff in the event the alternate muster point is need


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09/08/2010 DRILL Moomba FC 47 Operations Camp Evacuation

FC47 Camp main muster alarm (siren) will be sounded to simulate an incident where the camp may need to muster. The siren will be sounded at 08.00 Saturday 09 October 2010.

Mission

To assess the performance from staff and occupants off their roles and responsibilities during the mustering process. To ensure all Santos policy and procedures are followed and to ensure the training incident is preformed in a correct and safe manner.

Execution

At 08.00 the main siren for the FC47 Camp will be sounded by security. (They will be notified prior to commencement by the training facilitator.) Once siren has been sounded normal roles and responsibilities will be performed by those involved with the training exercise.

Note: it is a good idea to ensure people are performing the roles they are likely to be performing during a reel life mustering to maximise exposure and to get value from the training exercise.

Exercise to be executed as a real life incident and all procedures are to be followed.

Check Camp evacuation plans in rooms to ensure current plans are on display

During Camp evacuation drill it was noted the

Evacuation siren near the swimming pool was quiet.


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15/07/10 Major Plant Exercise for Moomba (OPREX)

A flange on the V-280 Condensate Skimmer vessel had failed resulting in a loss of containment of liquid condensate product. The discharged product had ignited causing a serious ground fire around the vessel and surrounding open area. Two workers that were in the immediate area at the time of the leak had sustaining serious burns and another was deceased.

The exercise took sixty minutes to complete, from time of call to the sounding of the all clear siren. Tasks completed during the exercise included, but were not limited to –

• Full evacuation of the processing plant and surrounding environs to the muster points.

• Accounting for all affected personnel. • Activation of the Moomba Emergency

Operations Centre (EOC) and subsequent notification to the Santos duty incident manager (DIM).

• Establishment of forward command post. • Initial treatment and evacuated of injured

personnel. • Fire fighting operations carried out by the

onsite process personnel and responding emergency services officers.

• Notional shutdown and de-pressuring of affected plant.

• Appropriate actions (practical and notionally) required in relation to the simulated deceased person.

Ensure that notification to the asset manager is captured in the ERP’s or Moomba EP.

Review the Incident Co-ordinators role in the plan in relation to notifications and inclusion of the DIM.

Review Moomba Plant Pre-Plan Contingency Manual to ensure all areas/facilities are covered.

Re-affirm via communication to Spotless camp management the need for camp muster point to be established during all plant evacuations.

Develop a muster point control training schedule for remainder of 2010 to capture any untrained personnel and refresh previously trained personnel (relevant to responsible position holders and back-ups).

Include monitoring muster point control activities in the objectives of all future EOC exercises (OPREX or TEWT).

Review current numbers of advanced fire trained personnel and senior first aiders, per shift, currently on record in Moomba. Ensure compliance to EHSMS13 requirements.

Review prompt in Moomba EP for security officer to carry out a perimeter check of the plant to pick up any stragglers during emergency evacuations.

Inspect and repair (if required) the security gate muster point intercom.


72


22/10/2010 CASA (Civil Aviation Safety Authority) regulations require us to conduct a Full Scale Aerodrome Emergency Exercise

BAe146 200 inbound to Moomba with No 61 of passengers + Crew

Captain reports an engine fire on the port side inside engine some 15 minutes prior to landing and has no choice but to continue on to Moomba.

The aircraft makes a heavy landing bringing the aircraft to a halt on the airstrip approx half to two thirds way down the runway opposite the terminal. A fire evident on the Starboard side of the aircraft in the vicinity of the inside engine and spreading through the wing impinging on cabin.

Escape slides are deployed (Improvise without) leading to the evacuation of the passengers in the aircraft.

Approx.14 injured passengers 5 of which are serious and require immediate attention and evacuation to hospitals.

There were seven defined objectives listed for the exercise.

Practise Incident management and resource coordination skills.

Practise and assess Emergency Response Procedures.

Measure the effectiveness of current procedures and resources in place to facilitate the identification and response of auxiliary fire fighters and first aiders

Practice emergency casualty triage, treatment skills and transportation procedures

Identify and take steps to eradicate any procedural and functional weakness

Practise the efficiency of communication between participants.

Practise command, control and co-ordination and liaison procedures between participating organizations

Information sheets/diagrams be developed for the EOC of where back up equipment is located egg. where the second Ambulance and keys are located, Disaster equipment and all relevant equipment that may be required etc.

Clarify preferred communication frequencies for communications between FCP and Aircraft – amend the Moomba AEP in the next review as required.

Review the lists of skilled personnel kept in the EOC. Re: additional information to include phone numbers, where they work, their supervisor etc.

Consider increasing the number of Reporting Officers provide appropriate training

Investigate group multi paging delays

Road cones required for Moomba Security vehicles for road closures etc.

RFDS consider including training for Ambulance familiarisation and stretcher operation in Santos Senior First Aid courses.

Disaster Assistance desktop exercise be scheduled for Moomba in the CB Emergency Exercise Schedule for 2011


73


25/10/10 Dullingari Major Exercise (OPREX)

The exercise was designed to practice established emergency response procedures and individual’s skills in relation to a medical emergency in the Dullingari satellite and to provide a skills maintenance training opportunity for Spotless OFA personnel.

The operator was notified verbally at 1300hrs that a passer-by had witnessed a worker falling from the top platform at the LP Inlet Separators and had not got up again. Camp OFA staff was notified.

Objective Outcomes:

Practice and assess initial emergency response arrangements for the Dullingari site.

Measure the time it takes for the OFA personnel to arrive at the injured person’s location from the initial alarm being raised.

Practice and assess the appropriate notifications and information transfer from the Dullingari site back to the Moomba Communications Centre.

Provide a skills maintenance opportunity for Dullingari site OFA’s.

Measure the effectiveness of skill levels and available resources to assess, treat and transport an injured person prior to the arrival of RFDS medical personnel.

Have all operator vehicle mobile radios programmed with the local operations channel 13

Investigate opportunities and possibilities for further ongoing skills maintenance opportunities for Spotless OFA’s

Source PPE requirements for OFA’s and ensure they are stored in a prominent location with other ‘first response’ equipment in the first aid room. OFA’s to discuss suggested first strike equipment required.

07/12/2010 Cooper Basin Oil Spill Preparedness Discussion Exercise

Exercise ”MOOSPILL” is a crisis management discussion exercise, designed to examine procedures and processes that require consideration in the event of a major oil spill in the Moomba environs

OBJECTIVES

Determine initial scene requirements and incident management arrangements

Review activation, response, coordination requirements

Review preparedness levels.

Examine information reporting procedures and communications

Identify issues and opportunities for further development of training, equipment deployment techniques and site logistics.

Some equipment be stored and transported on trailers to allow a quicker response.

Adequate training be provided to responders and Operation Officers (Forward Commanders)

Review the adequacy of equipment.

Review the condition of the equipment.

Develop procedures for the operation and inspection of the equipment

Revise the Moomba ERP to reflect changes that may be made.

An operational exercise will be arranged when some of these issues have been completed


74


25/10/10 Tirrawarra major exercise OPREX

The Satellite operator was walking through the Tirrawarra Satellite and discovered a worker who had fallen from a ladder.

The emergency response was effected in a timely and efficient manner and done in accordance with the:

Moomba Emergency Plan Version 6.0

Cooper Basin Emergency Response Procedures

Cooper Basin Field Emergency Contingency Pre-Plan

Santos Wellsite Emergency Plan Version 4.0

The Incident Controller displayed a sound knowledge and application of Incident Management Techniques, deploying personnel and logistics in a logical and systematic sequence. A detailed and accurate incident log was also kept.

Investigate the inclusion of spinal board training into First Aid courses conducted in the Cooper Basin

Investigate the conducting of scheduled first aid skills maintenance training sessions for personnel

Investigate changing the wall mounted first aid kit in the Tirrawarra Control room to a “tackle box” style portable one

25/09/10 Daralingie Major Exercise OPREX

The Satellite operator was notified at 0900hrs via Field Control that the fusible loop on the Condensate Pumps had activated causing a total ESD of the Daralingie Satellite.

The Satellite operators were required to investigate the cause. On arrival they found that the Condensate pump sets were involved in fire (simulated) and a contractor who was working in the facility (under a hot work permit) was unaccounted for.

Practice and assess initial emergency response arrangements for the Daralingie site.

Measure the time it takes for additional personnel to arrive at the satellite to assist on site personnel.

Practice and assess the appropriate notifications and information transfer from the Daralingie site back to the Moomba Communications Centre.

Provide a first aid skills maintenance opportunity for Daralingie site Production Operators.

Measure the effectiveness of skill levels and available resources to assess, treat and transport an injured person prior to the arrival of RFDS medical personnel.

Investigate the supply of a copy of the Wellsite Emergency Response Plan to the Daralingie site

Satellite telephone to be recommissioned and returned to designated Production Department forward command vehicle

Investigate the replacement of the wall mounted first aid kit or the addition of a tool box type portable unit to the site for emergency response

Investigate the purchase of a burns gel blanket for inclusion at the site’s first aid equipment for the treatment of major burns coinciding with the loss of power to the site


75

Appendix 4 Well Drilling Lease Scout, Construct, Backfill and Restoration Activity – 2010

# Well Name Well No.

Scout Date

Construct Commence Well Status

Borrow Pits

Number Restored

Lease Restored

Photos Taken

Road Km

Road Restored

Lease Backfill

1 Moolion 4 1/11/2005 14/02/2006 Gas 1 0 no no 0.4 No No 2 Moorari 12 1/11/05 22/02/06 Gas 1 0 no no 0.5 No No 3 Moomba 176 20/07/2006 11/08/2006 Gas 4 0 no no 1 no no 4 Golah Sing 1 24/08/2006 16/01/2007 Oil 1 0 no no 0.4 no no 5 Wheels 1 24/08/2006 16/01/2007 Oil 1 0 no no 0.4 no no 6 Burke 9 25/08/2006 16/01/2007 Oil 1 0 no no 0.5 no no 7 Burke 10 25/08/2006 16/01/2007 Oil 2 0 no no 0.5 no no 8 Tirrawarra 73 12/10/2006 10/11/2006 Gas 2 0 no no 1.2 no no 9 Ragno 1 19/10/2006 3/07/2007 Oil 1 0 No No 2.3 No No 10 Seccante 1 19/10/2008 21/06/2007 Oil 3 0 No No 1.1 No No 11 Alwyn 7 13/11/2006 26/01/2007 Oil 1 0 no no 0.8 no no 12 Fly Lake 25 8/01/2007 1/02/2008 Gas 1 1 Yes Yes 0.45 0.43 30/05/09 13 Barina 8 9/01/2007 17/02/2007 Gas 4 0 no no 0.6 no no 14 Cooba 2 9/01/2007 16/01/2007 Gas 3 3 Yes Yes 0.6 0.2 14/06/09 15 Thurakinna 6 9/01/2007 21/03/2007 Gas 1 0 no no 0.9 no no 16 Jena 28 23/02/2007 5/05/2007 C&S 1 0 No No 0.45 No No 17 Jena 22 23/02/2007 5/05/2007 Oil 1 0 No No 0.9 No No 18 Big Lake 86 19/04/2007 14/07/2007 Oil 1 1 No No 0.15 No No 19 Calvin 1 30/04/2007 8/06/2007 Oil 1 0 No No 0.5 No No 20 Gambero 1 30/04/2007 6/06/2007 Oil 1 0 No No 0.3 No No 21 Granchio 1 30/04/2007 22/06/2007 Oil 1 0 No No 0.05 No No 22 McKinlay 5 30/04/2007 22/06/2007 Oil 1 0 No No 0.1 No No 23 McKinlay 6 30/04/2007 13/06/2007 Oil 1 0 No No 0.6 No No 24 Moomba 182 22/06/2007 10/09/2007 Oil 1 1 Yes Yes 0.2 No No 25 Coonatie 8 26/06/2007 8/07/2007 Gas 2 0 No No 1.25 No No 26 Coonatie 9 26/06/2007 6/08/2007 Gas 1 0 No No 1.3 No No 27 Merrimelia 59 17/07/2007 21/08/2007 Oil 1 0 No No 1 No No 28 Merrimelia 60 17/07/2007 21/08/2007 Oil 1 0 No No 0.3 No No 29 Merrimelia 61 17/07/2007 21/08/2007 Oil 1 0 No No 0.2 No No 30 Mudera 15 19/07/2007 23/01/2008 Gas 1 0 No No 0.5 No No 31 Mudera 14 19/07/2007 20/01/2008 Gas 1 0 No No 1.2 No No 32 Mudera 13 19/07/2007 4/01/2008 Not Drilled 1 0 No No 1.4 No No


76


Scout Date


Borrow Pits

Number Restored

Lease Restored

Photos Taken

Road Km

Road Restored

Lease Backfill

33 Coonatie 10 23/07/2007 27/07/2007 Gas 1 0 No No 0.4 No No 34 Mudlalee 6 24/07/2007 21/01/2008 Not Drilled 1 0 No No 0.05 No No 35 Charo 2 31/07/2007 11/10/2007 Oil 1 1 No No 0.5 No No 36 Charo 3 31/07/2007 19/10/2007 Oil 3 3 No No 1.7 No No 37 Merrimelia 58 1/08/2007 19/09/2007 P&A 1 0 No No 0.4 No No 38 Ikarumba 1 14/09/2007 6/11/2007 P&A 1 0 No No 0.4 No No 39 Tirrawarra 74 18/09/2007 3/01/2008 Gas 3 0 No No 3.2 No No 40 Tirrawarra 75 18/09/2007 3/01/2008 Gas 1 0 No No 0.8 No No 41 Jena 25 4/10/2007 27/10/2007 Oil 2 0 No No 1.5 No No 42 Coonatie 11 10/10/2007 17/11/2007 Not Drilled 1 0 No No 1.1 No Not drilled 43 Marabooka 13 11/10/2007 4/04/2008 Gas 3 0 No No 3.8 No No 44 Marabooka 14 11/10/2007 4/02/2008 Gas 2 0 No No 1 No No 45 Marabooka 15 11/10/2007 4/02/2008 Gas 1 0 No No 0.9 No No 46 Mudera 16 11/10/2007 28/01/2007 Not Drilled 1 0 No No 1.25 No Not drilled 47 Mudera North 1 11/10/2007 3/01/2008 SGC 1 0 No No 0.05 No No 48 Squalo 1 14/11/2007 28/01/2008 Oil 1 0 No No 0.8 No No 49 McKinlay 9 3/12/2007 13/02/2008 Oil 4 0 No No 1.8 No No 50 McKinlay 7 3/12/2007 11/02/2008 Oil 1 0 No No 0.3 No No 51 McKinlay 10 3/12/2007 11/02/2008 Not Drilled 1 0 No No 0.1 No Not drilled 52 Coonatie 12 10/12/2007 30/01/2008 Gas 1 0 No No 0.7 No No 53 Coonatie 13 10/12/2007 3/02/2008 Gas 1 0 No No 0.9 No No 54 Granchio 2 2/02/2008 10/03/2008 Oil 1 0 No No 0.2 No No 55 Narcoonowie 7 2/02/2008 17/03/2008 Oil 1 1 No No 0.2 No No 56 Big Lake 89 21/03/2008 4/07/2008 Gas 1 0 No No 1 No No 57 Big Lake 91 21/03/2008 4/07/2008 Gas 1 0 No No 1 No No 55 Big Lake 90 21/03/2008 4/07/2008 Gas 1 0 No No 1 No No 59 Mitchie 2 21/03/2008 20/04/2008 Gas 1 0 No No 1 No No 60 Deparanie 2 24/04/2008 15/05/2008 Oil 9 0 No No 1.6 No No 61 Granchio 3 30/04/2008 19/05/2008 Oil 1 0 No No 0.6 No No 62 Mudera 12 19/07/2008 12/01/2008 Gas 1 0 No No 0.9 No No 63 Tirrawarra 76 7/08/2008 10/10/2008 Gas 1 0 No No 0.5 No No 64 Tirrawarra 77 17/09/2008 8/12/2008 P&A 0 0 No No 1.4 No No 65 Moomba 183 14/10/2008 4/12/2008 Oil 3 0 No No 1.45 No No


77


Scout Date


Borrow Pits

Number Restored

Lease Restored

Photos Taken

Road Km

Road Restored

Lease Backfill

66 Muteroo 6 14/10/2008 8/11/2008 Drilling 1 0 No No 0.45 No No 67 Spencer West 3 14/10/2008 8/11/2008 Oil 1 0 No No 0.45 No No 68 Spencer 13 17/10/2008 8/11/2008 Oil 2 0 No No 0 No No 69 Fly Lake 26 3/12/2008 3/01/2010 Oil 1 0 No No 0.8 No No 70 Fly Lake 27 3/12/2008 3/01/2010 Oil 5 0 No No 0.9 No No 71 Kudrieke A 3 4/12/2008 Scouted 72 Kanowana 7 16/12/2008 22/12/2008 Oil 1 0 No No 0.3 No No 73 Mudrangie S 1 16/12/2008 20/01/2010 Built 1 0 No No 1.2 No No 74 Nephrite Sth 5 12/01/2010 7/02/2010 Gas 2 0 No No 0.62 No No 75 Tindilpie 7 12/01/2010 22/02/2010 Gas 1 0 No No 0.94 No No 76 Nephrite 2 30/01/2010 3/03/2010 Gas 4 0 No No 3.52 No No 77 Cowralli 10 21/02/2010 9/03/2010 Gas 1 0 No No 0.92 No No 78 Cowralli 12 21/02/2010 9/03/2010 Gas 1 0 No No 0.65 No No 79 Cowralli 13 21/02/2010 16/03/2010 Gas 1 0 No No 0.95 No No 80 Cowralli 11 21/02/2010 24/04/2010 Gas 1 0 No No 1.05 No No 81 Tindilpie 8 27/02/09 16/04/09 Gas 1 0 No No 0.65 No No 82 Tindilpie 10 27/02/09 27/03/09 Gas 4 0 No No 3.75 No No 83 Tindilpie 9 27/02/09 18/04/09 Gas 1 0 No No 1.9 No No 84 Bobs Well 2 1/05/09 26/05/09 Gas 4 0 No No 1.18 No No 85 Daralingie 27 1/05/09 18/06/09 Gas 2 0 No No 0.5 No No 86 Dullingari 36 25/05/09 27/09/09 Gas 2 0 No No 0.32 No No 87 Dullingari 40 25/05/09 22/09/09 Gas 1 0 No No 0.32 No No 88 Charo 6 28/05/09 6/07/09 Oil 1 0 No No 1.85 No No 89 Charo 5 28/05/09 4/07/09 Oil 1 0 No No 0.38 No No 90 Charo 4 28/05/09 23/06/09 P&A 2 0 No No 1.65 No No 91 Charo 7 19/06/09 9/07/09 Oil 1 0 No No 0.49 No No 92 Narcoonowie 8 17/08/09 23/10/09 Oil 1 0 No No 0.25 No No 93 Narcoonowie 9 17/08/09 20/10/09 Oil 1 0 No No 0.55 No No 94 Narcoonowie 10 17/08/09 26/10/09 Oil 1 0 No No 0.62 No No 95 Burke East 11 31/08/09 3/10/09 Built 1 0 No No 0.5 No No 96 Mettika 6 31/08/09 10/10/09 Gas 1 0 No No 1 No No 97 Moomba Nth B Rev 1 31/08/09 16/12/10 Built 1 0 No No 1 No No 98 Moomba Nth C Rev 4 31/08/09 Scouted 1 0 No No 0.6 No No


78


Scout Date


Borrow Pits

Number Restored

Lease Restored

Photos Taken

Road Km

Road Restored

Lease Backfill

99 Moomba Nth D Rev 1 31/08/09 Scouted 1 0 No No 1 No No 100 Moomba Nth E Rev 1 31/08/09 16/12/10 Built 1 0 No No 0.4 No No 101 Coonatie Rev 1 18/09/09 Pegged 1 102 Coonatie 14 18/09/09 Gas 1 0 No No 0.4 No No 103 Coonatie 15 18/09/09 Drilling 1 0 No No 0.3 No No 104 Coonatie 16 18/09/09 19/12/09 Gas 2 0 No No 1 No No 105 Coonatie 17 18/09/09 9/12/09 Gas 1 0 No No 0.5 No No 106 Coonatie 18 18/09/09 Gas 2 0 No No 0.4 No No 107 Coonatie 19 18/09/09 Gas 1 0 No No 1.7 No No 108 Coonatie 20 18/09/09 Gas 1 0 No No 1.2 No No 109 Cooba Dev C 8/01/10 Not Built Scouted 1 0 No No 0.36 No No 110 Kanowana D Rev 1 28/01/10 Pegged 111 Kanowana C Rev 1 29/01/10 Pegged 112 Tirrawarra 79 18/06/10 6/10/10 Gas 1 0 No No 0.52 No No 113 Tirrawarra 78 18/06/10 13/10/10 Gas 1 0 No No 1.33 No No 114 Tirrawarra 80 18/06/10 13/10/10 Drilling 1 0 No No 0.39 No No 115 Strzelecki NE 1 23/06/10 12/08/10 Gas 2 0 No No 0.24 No No 116 Kidman Nth A Rev 1 2/11/10 4/01/11 Scouted 2 0 No No 1.5 No No

PEL 114

1 Shazlick 1 30/01/2007 28/02/2007 Oil 5 0 no no 0.3 No No 2 Hoek 2 30/03/2007 5/05/2007 Oil 2 0 No No 1.3 No No 3 Hobbes 1 3/12/2007 10/04/2008 Oil 1 0 No No 0.6 No No 4 Hoek 3 4/04/2008 27/04/2008 Oil 1 0 No No 0.3 No No 5 Hobbes 2 30/11/2008 10/01/2010 Oil 1 0 No No 0.5 No No 6 Cartman 1 18/12/2008 16/02/2010 Oil 8 0 No No 1.3 No No 7 Kyle 1 19/12/2008 24/02/2010 P&A 4 0 No No 2.1 No No

PPL 225 1 Stimpee 3 22/06/2007 28/06/2007 Oil 1 0 No No 0.05 No No 2 Stimpee 5 18/12/2008 29/01/2010 Built 1 0 No No 0.9 No No 3 Stimpee 4 22/12/2008 29/01/2010 Oil 1 0 No No 0.14 No No


79

Appendix 5 Well Workover Summary

# WELL WELL

# START DATE

END DATE WORKOVER ACTIVITY

FRACTURE STIMULATION

1 GIDGEALPA 59 05/01/2010 07/01/2010 Perforation NO 2 TINDILPIE 9 09/01/2010 13/01/2010 Perforation YES 3 DERRILYN 4 1/01/2010 5/01/2010 PCP Repair NO 4 ODONATA 1 5/01/2010 8/01/2010 PCP to LRP Conv Stage 1 NO 5 JENA 22 8/01/2010 12/01/2010 PCP to LRP Conv Stage 1 NO 6 STIMPSON JAY 1 12/01/2010 15/01/2010 PCP to LRP Conv Stage 1 NO 7 DULLINGARI 36DW1 16/01/2010 18/01/2010 Perforation NO 8 NARCOONOWIE 8 20/01/2010 20/01/2010 Perforation NO 9 DULLINGARI 36DW1 26/01/2010 27/01/2010 Perforation NO 10 BIG LAKE 30 30/01/2010 30/01/2010 Re-perforation NO 11 DULLINGARI 40DW1 30/01/2010 30/01/2010 Re-perforation NO 12 NARCOONOWIE 10 19/05/2010 22/05/2010 Perforation NO 13 DARALINGIE 27 22/05/2010 22/05/2010 Perforation NO 14 HOEK 1 27/05/2010 02/06/2010 PCP Repair NO 15 BURKE 11 02/06/2010 03/06/2010 Perforation NO 16 BURKE 4 02/06/2010 24/06/2010 Integrity Repair NO 17 MCKINLAY 9 3/06/2010 9/06/2010 PCP Repair NO 18 MOOMBA 40 10/06/2010 10/06/2010 Perforation NO 19 MUDLALEE 6 10/06/2010 12/06/2010 ESP Repair NO 20 MOOMBA 149 13/06/2010 16/06/2010 Perforation NO 21 HOEK 3 13/06/2010 19/06/2010 PCP Repair NO 22 MCKINLAY 5 19/06/2010 23/06/2010 PCP Repair NO 23 ULANDI 12 23/06/2010 6/07/2010 BP Repair NO 24 DULLINGARI 40DW1 24/06/2010 24/06/2010 Perforation YES 25 TINDILPIE 9 24/06/2010 26/06/2010 Perforation NO 26 DULLINGARI 17 27/06/2010 28/06/2010 Re-perforation NO 27 BECKLER 1 29/06/2010 30/06/2010 Re-perforation NO 28 MOOMBA 163 30/06/2010 01/07/2010 Re-perforation NO 29 MOOMBA 103 06/07/2010 07/07/2010 Re-perforation NO 30 BOBS WELL 2 07/07/2010 12/07/2010 Gas Completion NO 31 RAGNO 1 7/07/2010 11/07/2010 PCP Repair NO 32 MOOMBA 121 09/07/2010 12/07/2010 Re-perforation NO 33 KEENA 2 25/07/2010 26/07/2010 Perforation NO 34 TIRRAWARRA 14 6/08/2010 18/08/2010 Gas Workover NO 35 DARALINGIE 1 07/08/2010 08/08/2010 Re-perforation NO 36 TIRRAWARRA 29 11/08/2010 12/08/2010 Perforation NO 37 DULLINGARI 16 19/08/2010 20/08/2010 Re-perforation NO 38 BIG LAKE 78 19/08/2010 5/09/2010 Gas Workover YES 39 DULLINGARI 58 30/08/2010 7/09/2010 Oil Recompletion NO 40 STRZELECKI 27 7/09/2010 23/09/2010 BP Repair NO 41 BIG LAKE 78 23/09/2010 30/09/2010 Perforation YES 42 DULLINGARI 40DW1 28/09/2010 29/09/2010 Perforation NO 43 DERRILYN 4 1/10/2010 5/10/2010 PCP Repair NO 44 TINDILPIE 9 01/10/2010 07/10/2010 Gas Completion YES 45 BIG LAKE 78 04/10/2010 04/10/2010 Perforation NO 46 GAMBERO 1 5/10/2010 10/10/2010 PCP Repair NO 47 MOOMBA 55 8/10/2010 15/10/2010 Gas Workover NO 48 TIRRAWARRA 67 09/10/2010 10/10/2010 Perforation NO


80

Well Workover Summary

# WELL WELL

# START DATE



49 MCKINLAY 5 10/10/2010 17/10/2010 Oil Workover NO 50 HOBBES 1 18/10/2010 21/10/2010 PCP Repair NO 51 HOEK 3 21/10/2010 24/10/2010 PCP Repair NO 52 DULLINGARI 16 22/10/2010 22/10/2010 Perforation NO 53 MOOMBA 55 22/10/2010 18/11/2010 Gas Workover NO 54 GRANCHIO 1 24/10/2010 27/10/2010 PCP Repair NO 55 JENA 25 27/10/2010 30/10/2010 PCP Repair NO 56 DERRILYN 3 30/10/2010 2/11/2010 PCP Repair NO 57 COONATIE 16 01/11/2010 01/11/2010 Perforation NO 58 COONATIE 17 03/11/2010 04/11/2010 Perforation NO 59 DULLINGARI 40DW1 05/11/2010 06/11/2010 Perforation NO 60 PONDRINIE 13 06/11/2010 06/11/2010 Reperforation NO 61 TOOLACHEE 1 19/11/2010 1/12/2010 Integrity Repair NO 62 TIRRAWARRA 48 25/11/2010 04/12/1010 Reperforation NO 63 DULLINGARI 39 02/12/2010 23/12/2010 Gas Workover NO 64 MOOMBA 157 12/12/2010 15/12/2010 Reperforation NO 65 BOBS WELL 1 16/12/2010 21/12/2010 Reperforation NO 66 BURKE 11 20/12/2010 20/12/2010 Perforation NO 67 MOOMBA 103 22/12/2010 22/12/2010 Reperforation NO 68 MOOMBA 93 23/12/2010 24/12/2010 Reperforation NO 69 MCKINLAY 7 23/12/2010 26/12/2010 PCP to LRP Conversion NO 70 DULLINGARI 36DW1 23/12/2010 15/01/2011 Gas Workover NO 71 MOOMBA 139 27/12/2010 29/12/2010 Reperforation NO 72 HOBBES 1 27/12/2010 29/12/2010 PCP Repair NO 73 PASTICCIO 1 29/12/2010 31/12/2010 PCP Repair NO

Well Workover Summary – PPL 206

# WELL WELL

# START DATE

END DATE

WORKOVER ACTIVITY


1 DERRILYN 4 1/01/2010 5/01/2010 PCP Repair NO 2 DERRILYN 4 1/10/2010 5/10/2010 PCP Repair NO 3 DERRILYN 3 30/10/2010 2/11/2010 PCP Repair NO


# WELL WELL

# START DATE

END DATE

WORKOVER ACTIVITY


1 HOEK 1 27/05/2010 2/06/2010 PCP Repair NO 2 HOEK 3 13/06/2010 19/06/2010 PCP Repair NO 3 HOEK 3 21/10/2010 24/10/2010 PCP Repair NO


# WELL WELL

# START DATE

END DATE

WORKOVER ACTIVITY


1 STIMPSON JAY 1 12/01/2010 15/01/2010 PCP to LRP Conv Stage 1 NO


81

Abandonment

# WELL WELL # START DATE



Fracture Stimulation Summary

# WELL WELL # START DATE END DATE WORKOVER ACTIVITY 1 TINDILPIE 9 01/01/2010 16/01/2010 Fracture Stimulation 2 DARALINGIE 11 16/01/2010 19/01/2010 Fracture Stimulation 3 DULLINGARI 36DW1 21/01/2010 05/02/2010 Fracture Stimulation 4 BURKE 11 13/06/2010 16/06/2010 Fracture Stimulation 5 DULLINGARI 40DW1 16/06/2010 25/06/2010 Fracture Stimulation 6 DARALINGIE 27 24/07/2010 21/08/2010 Fracture Stimulation 7 BIG LAKE 78 21/09/2010 06/10/2010 Fracture Stimulation 8 COONATIE 16 02/11/2010 11/11/2010 Fracture Stimulation 9 COONATIE 20 11/11/2010 25/11/2010 Fracture Stimulation 10 COONATIE 17 19/11/2010 07/01/2011 Fracture Stimulation


- 82 -

Appendix 6 Well Summary – Producing & Suspended Wells

As at 31/12/2010 Gas Oil Gas/Oil 1 Number of Wells in Production (Operating) 531 184 57

2 Number of Wells Suspended (Suspension plug run or In-active >1yr) 303 164 21

3 Number of Wells Completed/Not on line 4 0 0

4 Number of Wells - Cased & Suspended 49 7 6

5 Number of Wells - Casing Annuli Tested 236 0 11

6 EHS Risk Analysis of Wells Tested

- High Risk 1 0 1

- Substantial Risk 21 0 0

- Moderate Risk 71 0 0

- Low Risk 144 0 10

7 Number of Wells - Repairs Undertaken 3 0 0

8 Number of Wells - Plugged & Abandoned (post Completion and/or Production) 0 0 0

9 Number of Wells - Plugged & Abandoned (Post Drilling) 0 0 0

10 Number of Wells - Plugged and Suspended (post Drilling) 0 0 0

11 Planned 2011 - Plug & Abandonment’s (post Completion and/or Production) 2 0 0

Note: 1) Gas/Oil wells are those that have perforations planned or completed in separate oil and gas bearing reservoirs e.g. Tirrawarra, Moorari or Fly Lake fields - Gas wells with natural gas liquids or Oil wells with associated gas remain listed as either Gas wells or Oil wells.


- 83 -

Appendix 7 Flowlines Constructed – 2010

# From Diameter

(mm) Steel / GRE On line

Length (metres)

Total metres (mth)

1 Stimpee 4 Oil 65 GRE 26-Jan 895 895 2 Mettika 1 - Flowline Replacement 100 Steel 1-Feb 213 3 Mettika 2 - Flowline Replacement 100 Steel 1-Feb 637 850 4 Hobbes 2 Oil 100 GRE 10-Jun 1997 5 Daralingie 11 100 Steel 23-Jun 759 2756 6 Narcoonowie 8 Oil 65 GRE 3-Jul 474 7 Narcoonowie 10 Oil 65 GRE 24-Jul 302 8 Koree Sth 1 100 Steel 26-Jul 4764 5540 9 Bobs Well 2 100 Steel 19-Aug 50

10 Dullingari 36 100 Steel Aug 462 11 Dullingari 40 100 Steel 31-Aug 500 1012 12 Narcoonowie 9 65 GRE 3-Oct 1376 13 Mettika 6 100 Steel 26-Oct 417 1793 14 Tirrawarra 14 100 Steel 13-Nov 94 94

Total Km 12.940 Total Steel Line 7.896 Total GRE 5.044


- 84 -

Appendix 8 Pipeline Inspection, Testing & Repair – 2010 Integrity Testing

High Velocity Wellhead Spooling / Swing Wells - Ultrasonic Inspection & Radiography of the Choke Welds Barina #1 Big Lake #6 Big Lake #7 Daralingie #9 Moomba #6 Moomba #7 Moomba #22 Moomba #31 Moomba #40 Munkarie #8 Toolachee #18 Narie #1 Pondrinie #8 Mothballed Pipelines - 2010 Kidman to Kidman Junction Gas Trunkline Dullingari #5 Dullingari #13 Dullingari #15 Dullingari #27 Dullingari #28 Dullingari #31 Dullingari #38 Dullingari #43 Final Abandonment - 2010 Spencer Muteroo Oil Trunkline Pipeline Risk Assessments Field-wide Pipeline Integrity Reviews (PIRs) of: Gidgealpa field Big Lake field Moomba field Moomba South Central field Limestone Creek field Toolachee field Kidman field Tirrawarra field


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Pipeline Integrity / Risk Workshops – 2010

Big Lake to Moomba Gas Trunkline Tantanna to Gidgealpa Oil Trunkline Big Lake East Spineline (G4) Wancoocha to Moomba Oil Trunkline Moomba Sth Oil to Wancoocha Oil Trunkline Tie-in Gidgealpa to Moomba Oil Trunkline Gidgealpa to Moomba Gas Trunkline Big Lake West Gas Spineline (G5) Raven Gas Bypass Moomba #48 Gas Flowline Toolachee Crossover Gas Trunkline Della Southern Gas Spineline (10”) Marabooka Gas Gathering Line (8”) Dullingari to Della Gas Trunkline Toolachee Gas Trunkline Kidman to Kidman Junction Gas Trunkline Burke to Dullingari Gas Trunkline Mettika Gas Gathering Flowline Thoar to Epsilon Gas Trunkline Strzelecki to Strzelecki Junction Oil Trunkline Epsilon to Burke Gas Trunkline Mudlalee Oil Gathering Line Strzelecki to Moomba Oil Trunkline Dullingari to Strzelecki Oil Trunkline Stokes to Mettika Gas Spineline Tirrawarra to Moomba Gas Trunkline (activity sandblasting prior to NDT) Fly Lake/Brolga to Tirrawarra Gas Trunkline Tirrawarra to Merrimelia Oil Trunkline Bookabourdie to Tirrawarra Gas Trunkline Brolga gas Spineline Merrimelia to Moomba GRE Oil Trunkline Cuttapirrie to Moorari Gas Gathering Line Pipeline ILI (Inline Inspection) Surveys – 2010 Big Lake to Moomba Gas trunkline section 2 (14”, 10.3Km)


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Appendix 9 Details of Seismic Activity

There was no seismic Activity during 2010.


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Appendix 10a 2010 Production Facility Projects

# Project Project Description Location

1 Moomba CO2 Train Shutdown for major inspection Moomba Plant

2 Moomba Tank 1000 & 3000 Full internal inspection Moomba Plant

3 Boiler #10 Shutdown Inspection, repair and install new superheater Moomba Plant

4 Cold Box (LRP B Cold Box Replacement) Removal and replacement of LRP B Cold Box. Moomba Plant

5 Moomba Evacuation Siren Upgrade Install a new evacuation siren system in the Moomba plant Moomba Plant

6 MSC Fire & Gas Detection System Upgrade Moomba South

Central Satellite

7 Plant planned shutdowns LRP A, CO2 Trains, Boilers Moomba Plant

8 Moomba COPS Upgrade (Critical Operating Procedures)

Calculate the LRP pressure and temp limits. Operating procedures to be developed for when these limits are triggered. DCS modifications to suit. Moomba Plant

9 Salt Bath Heater Replacement Replacement of Salt Bath Heater to ensure drying capability for withdrawal gas Moomba Plant

10 MSC 33kv upgrade Install power line upgrade to Moomba South Central Moomba South Central

11 Dullingari Gas - Power Generation Upgrade power generation at Dullingari Gas Satellite Dullingari


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Appendix 10b 2011 Production Facility Projects - Proposed # Project Project Description Location Finish

1 Boiler Load Optimisation MPC Optimise Boiler loading Moomba Plant 2011

2 Toolachee & Strzelecki Interceptor Pond Upgrade and re-instatement of ponds Toolachee On-going

3 Moomba Plant Water and Sludge Handling Upgrade

Review of sludge treatment and water disposal at the Moomba facility to debottleneck or upgrade existing systems.

Moomba Plant On-going

4 LRP seal study and upgrades Fit improved seal system and study for extension of project to other units

Moomba Plant On-going

5 Big Lake Fire & Gas Detection System System upgrade Big lake 2011

6 Study - MBA Boiler #10 Shutdown Opportunities to improve reliability of #10 Boiler Moomba Plant 2011

7 Plant planned shutdowns LRP A, CO2 Trains, Boilers Moomba Plant 2011

8 Gidgealpa gas sat water interceptor pond de-silting & walls rebuild Repair at Gidgealpa Gas Satellite to full capacity Gidgealpa 2011

9 MSC and BL Compressor Controls Upgrade Upgrade Compressor controls Moomba Big Lake 2011

10 Fire Suppression System on 60 & 65 compressors Replace obsolete Fire suppression systems Moomba Plant 2011


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Appendix 11 Wells Drilled – 2010

# WELL NAME LICENSE WELL TYPE TARGET SPUD

DATE RIG

RELEASE TD (M) STATUS COMMENT

1 Narcoonowie 10 PPL 25 Explt (App) Oil 09/01/10 20/01/10 1668 C&S Oil

2 Coonatie 17 PPL 131 Dev Gas 19/01/10 23/06/10 3105 C&S Gas





7 Strzelecki NE 1 PPL 22 Dev Gas 11/10/10 23/10/10 2058 C&S Gas

8 Tirrawarra 79 PPL 20 Dev Gas 31/10/10 18/11/10 3057 C&S Gas


10 Tirrawarra 78 PPL 20 Dev Gas 12/12/10 02/01/11 3065 C&S Gas


Wells Drilled 2010– Not SACBJV projects

# WELL NAME LICENSE WELL TYPE TARGET SPUD

DATE RIG

RELEASE TD (M) STATUS COMMENT


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Appendix 12 2010 Reports, including Geological and Reserves Reports Reg # Routine Report Title Comment Yes / No 33 Yes Annual Report - 2009 33 (2) e Yes Proved + Probable Reserves Data, YE 2009. 34 Yes Geophysical Progress Report (Weekly Progress Reports Submitted) 38 Yes Daily Drilling Reports 39 Yes Wireline Logs – Drilling Yes Wireline Logs – completions 40 Yes Well Completion Reports 41 Yes Quarterly Cased Hole report 42 Yes Well Test Analysis Report 43 Yes Petroleum Reservoir Fluid Analysis Report 44 Yes Downhole Diagrams 45 Yes Production Reports

2010 Reports In Accordance With Reg 33 (2) (e)

Reg # Routine Report Title Comment Yes / No 33 (2) e Yes Proved + Probable Reserves Data, YE 2009.

annual report of south australian cooper basin joint...

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