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2004 ANNUAL REPORT On Pipeline Licence 1 MOOMBA TO ADELAIDE PIPELINE Document Number S-1-101-AR-G002 February 2005

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2004 ANNUAL REPORT

On

Pipeline Licence 1 MOOMBA TO ADELAIDE PIPELINE

Document Number S-1-101-AR-G002

February 2005

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE PIPELINE

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TABLE OF CONTENTS

1.0 PURPOSE........................................................................................................5

2.0 SCOPE.............................................................................................................5

3.0 PIPELINE INTEGRITY MANAGEMENT..........................................................6

3.1 PIPELINE INSPECTIONS AND ASSESSMENT .............................................6

3.1.1 LEAKAGE SURVEYS & DETECTION.........................................................7

3.1.2 PIPE WALL DEFECT ASSESSMENT .........................................................8

3.2 STRESS CORROSION CRACKING INVESTIGATIONS............................... 10

3.3 EXTERNAL SURFACES ............................................................................... 10

3.4 COATINGS .................................................................................................... 10

3.5 PIPELINE CATHODIC PROTECTION........................................................... 11

3.5.1 PIPELINE POTENTIAL PROFILES ........................................................... 11

3.5.2 CP REPAIR WORK.................................................................................... 12

3.6 ELECTRICAL AND INSTRUMENTATION .................................................... 12

3.6.1 SIGNAGE ................................................................................................... 13

3.6.2 PRESSURE CONTROL AND PROTECTIVE EQUIPMENT....................... 14

3.6.3 SITE SECURITY......................................................................................... 14

3.6.4 STRUCTURES ........................................................................................... 14

3.7 COMMUNICATIONS...................................................................................... 14

3.8 MECHANICAL ............................................................................................... 16

3.9 ANCILLARY EQUIPMENT ............................................................................ 17

3.10 RESULTS, ANALYSIS AND REMEDIAL ACTION TAKEN .......................... 17

4.0 THREAT MITIGATION................................................................................... 18

4.1 SURVEILLANCE ........................................................................................... 18

4.2 MAINTENANCE PROGRAMS....................................................................... 19

4.3 MARKING ...................................................................................................... 19

4.4 EXTERNAL INTERFERENCE PREVENTION ............................................... 20

4.5 LANDHOLDER CONTACTS. ........................................................................ 20

4.6 COMMUNITY AWARENESS ......................................................................... 21

4.7 RISK ASSESSMENTS................................................................................... 21

4.8 OTHER........................................................................................................... 23

5.0 MANAGEMENT ............................................................................................. 23

5.1 REPORTS GENERATED IN 2004 ................................................................. 23

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5.2 2004 ONE-OFF ACTIVITIES.......................................................................... 23

5.3 2005 ONE-OFF ACTIVITIES.......................................................................... 24

5.4 2006 ONE-OFF ACTIVITIES.......................................................................... 24

5.5 VOLUME OF PRODUCT TRANSPORTED ................................................... 24

5.6 STATEMENT OF EXPENDITURE ................................................................. 24

6.0 EMERGENCY RESPONSE ........................................................................... 24

6.1 EMERGENCY RESPONSE INCIDENTS. ...................................................... 25

6.2 EMERGENCY RESPONSE EXERCISES...................................................... 25

7.0 SAFETY AND ENVIRONMENTAL MANAGEMENT ..................................... 26

7.1 INCIDENT AND CORRECTIVE / PREVENTATIVE ACTIONS...................... 26

7.1.1 INCIDENTS ................................................................................................ 26

7.1.2 REPORTED HAZARDS/ INCIDENTS ........................................................ 27

7.2 INCIDENT TREND ANALYSIS ...................................................................... 28

7.3 AUDITS.......................................................................................................... 28

7.3.1 OPERATIONAL AUDITS ........................................................................... 29

7.3.2 ENVIRONMENTAL AUDITS ...................................................................... 29

7.3.3 SAFETY AUDITS ....................................................................................... 29

7.4 PERFORMANCE MEASUREMENT AND ANALYSIS OF RESULTS........... 30

7.4.1 MAINTENANCE PERFORMANCE ............................................................ 30

7.4.2 KEY PERFORMANCE INDICATORS ........................................................ 30

7.5 REVIEW AND IMPROVEMENT..................................................................... 31

7.5.1 COMPLIANCE ISSUES.............................................................................. 31

7.5.2 ACTIONS TO RECTIFY NON-COMPLIANCE ........................................... 31

7.5.3 TRAINING .................................................................................................. 32

8.0 CONCLUSIONS............................................................................................. 32

ANNEX A - ASSESSMENT OF DECLARED OBJECTIVES.................................... 33

ANNEX B - PIPELINE CATHODIC PROTECTION DATA AND ON/OFF POTENTIALS PROFILES......................................................................................... 45

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LIST OF ABBREVIATIONS AS2885 Australian Standard 2885 – Pipelines-Gas and Liquid Petroleum CCVT Closed Cycle Vapour Turbine CS Compressor Station DOLA Department of Land Administration EML External Metal Loss EMS Environmental Management System FBE Fusion Bonded Epoxy GEA Gas Engine Alternator HAZOP Hazard Operability HSE Health, Safety and Environment HV Hand Valve KP Kilometre Point LTI Lost Time Injury MAP Moomba to Adelaide Pipeline MAOP Maximum Allowable Operating Pressure MFG Manufacturing Defect MLV Mainline Valve MPR Minerals and Petroleum Resources MTI Medical Treatment Injury PAV Polled Access Value PII Pipeline Integrity International PIRSA Primary Industry and Resources SA PL Pipeline Licence SA South Australia SCADA Supervisory Control and Data Acquisition SCC Stress Corrosion Cracking SES State Emergency Service SMS Safety Management System TJ Terra Joule

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1.0 PURPOSE

This report is submitted in accordance with the requirements of Pipeline Licence 1 and the South Australian Petroleum Regulations 2000. The Moomba to Adelaide Pipeline is owned, operated and maintained by Epic Energy. The report reviews operations carried out during 2004 and intended operations for 2005 and 2006. In accordance with the Petroleum Regulations, a performance assessment is also provided with regard to the Statement of Environmental Objectives for the Moomba to Adelaide Pipeline.

2.0 SCOPE

The Moomba to Adelaide Pipeline is 781km long and 559mm in diameter, constructed of welded steel, wrapped in a protective coating and is buried to depths in excess of 800 mm. There are seven gas turbine driven compressor stations located about 100 kms apart and mainline valves are installed approximately every 32kms. After-coolers are provided at the compressor stations to reduce the risk of stress fracture or over-temperature of the pipeline coating. The pipeline was designed for the express purpose of transporting Natural Gas and operates at a Maximum Operating Pressure of 7.3MPa. The MAP has been progressively upgraded to boost capacity and increase security of gas supplies. This includes a 43km loop line of 510mm diameter between Wasleys the Torrens Island Power Station, where pressure limiting is installed to comply with a voluntary lower design factor of 0.6. In 1998, the MAP Compressor Stations underwent a major upgrade of their compression equipment. This included the replacement of the Solar Centaur packages at stations 1, 2, 3, 5 & 6 with Solar Taurus units and the upgrade of 3 of the Ingersoll Rand packages from a horsepower capacity of 4,250 to 5,400. This raised the Indicative Daily Winter Capacity of the pipeline from 353 TJ/Day to 393 TJ/day. At the same time, the station control system was upgraded from an antiquated electro– mechanical system to an Allen Bradley PLC. The pipeline was further enhanced in 2000 by the construction of 34kms of 24” loops south of stations 1, 2, 3 & 4 and the remaining 4 Ingersoll Rand packages being upgraded to the higher horsepower specifications. This further raised the Indicative Daily Winter Capacity of the pipeline from 393 TJ/Day to 418 TJ/day.

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The design parameters for the Moomba to Adelaide Pipeline are as follows:

Date Constructed 1967/68 Date Commissioned 1969 Length, km 781 Diameter (OD), mm 559 Wall Thickness, mm: Normal 7.92 Special Crossings (eg: rivers, roads, railways)

9.50

MLV’s 9.50 Pipe Grade API 5L X52 MAOP, kPa 7,300 Coating Plicoflex Tape Main Line Valves 34 Actuators 16 Compressor Stations 7 Meter Stations 28

The design parameters for the Wasleys Loopline are as follows:

Date Constructed Sep 1986 Date Commissioned Sep 1986 Length, km 43 Diameter (OD), mm 510 Wall Thickness, mm: Normal 9.00 Special Crossings (eg: rivers, roads, railways)

9.00

MLV’s 9.00 Pipe Grade API 5L X60 MAOP, kPa 7,322 Coating Fusion Bonded Epoxy Main Line Valves 6 Actuators 5 Scraper Stations 0 Meter Stations 6

3.0 PIPELINE INTEGRITY MANAGEMENT

3.1 PIPELINE INSPECTIONS AND ASSESSMENT

Visual inspections of all above ground facilities carried out during the scheduled monthly patrols with no significant pipeline corrosion issues found. DCVG Surveys were carried out:

• 30 km downstream of each Compressor Station on the MAP • The Pelical Point Lateral • The Osbourne Lateral

Following the assessment of the 2003 DCVG survey results, a program to excavate two sites on the Wasleys Loop Line was commenced. The details of the excavation sites were as follows:

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• Wasleys Loop Line at 749.9 Kilometres %IR Drop 29 • Wasleys Loop Line at 750.0 Kilometres %IR Drop 40

At both sites the epoxy coating showed blistering in several areas. Blisters up to 10 mm in diameter scattered particularly on the upper parts of the pipe. The blistered areas were stripped blasted and recoated using Araldite K138. No Corrosion or Stress Corrosion was discovered in the area. In addition to the DCVG work, excavations have been carried out at a number of other sites where there were third party crossings: The Santos Gathering Line 16 Crossing at Kp 6.8 and SA Water flood water culverts crossing at KP 764.7 were excavated. The pipeline protective coating was inspected at both of these excavation sites and found to be in good condition.

3.1.1 LEAKAGE SURVEYS & DETECTION

Epic Energy employs a number of methods of monitoring the pipeline system for leakage as follows;

• The Moomba to Adelaide pipeline operations group employ a computer model of the pipeline system that continuously monitors the gas balance providing a real-time leak detection capability, allowing the control staff to instantly identify any anomalies that may be occurring and notify maintenance staff who carry out onsite investigations. The control centre staff can if required operate the pipeline system “Mainline Break” facility isolating sections of the pipeline to minimize any leakage should the need arise.

• The Epic Energy technical services group routinely monitor the gas balance to ensure that all gas into the pipeline equals the quantities of gas out, taking into account usage in the transportation process. If the balance does not meet laid down criteria, an investigation is carried out to identify the source of the imbalance and possible leakage.

• As part of Epic Energy’s routine maintenance program, monthly pipeline facility inspections are conducted that incorporate manual leak detection by employee’s on all of the above ground facilities.

• In addition to the facility inspections, routine pipeline patrols are carried out during which the maintenance staff looks for tell tale signs that may indicate a leak along the pipeline. Telltale signs of a gas leak may be dust blown up from escaping gas, dead or dying vegetation, holes formed by escaping gas, bubbles in the water at underwater crossings, noise etc.

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3.1.2 PIPE WALL DEFECT ASSESSMENT

The final data from several sections of the Rosen Intelligent PIG inspection was analysed according to Epic Energy’s three-tier defect assessment policy. The following table denotes the defects not passing the RSTRENG LAPA criteria and therefore defects were assessed by excavating for assessment and verification.

Defect # on

RSTRENG List

KP O’Clock position

Type Predicted Max Depth

Measured Max

Depth

Predicted ERF

Measured ERF

Reinforced

Yes/No

CS1 to CS2 1 149.9 11:09 Gen. 63% 42% 1.27 0.90 Yes 2 103.2 00:36 Gen. 64% 33% 1.09 0.86 Yes 3 152.5 07:59 Gen. 54% 44% 1.05 0.93 Yes 4 136.8 08:30 Gen. 64% 30% 1.03 0.89 No 5 159.9 02:10 Gen. 47% 28% 1.03 0.91 No 6 98.4 11:31 Gen. 57% 44% 1.02 0.89 Yes 7 152.8 08:41 Gen. 54% 35% 1.01 0.91 No

CS2 to CS3 1 163.9 11:05 Cluster 59% 48% 1.13 0.96 Yes 2 211.3 10:07 Cluster 50% 37% 1.13 0.95 No

CS4 to CS5 1 346.9 1:39 Axial

Grooving 42% 34% 1.04 0.94 No

CS5 to CS6 1 456.9 5:09 Cluster 40% 35% 1.04 0.87 No

‘ The basis for reinforcement of defective pipe-work was the Depth/Length Characteristic of the defect being analysed. All defects analysed did not exceed an Emergency Repair Factor (ERF) of 1 when they were subjected to a RSTRENG (Tier 3) analysis and therefore no defect was inducing stresses into the pipe exceeding 72% SMYS. Defects that were reinforced were done so in prudence, rather than as a necessary measure for pressure

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containment. The method for Reinforcement utilised for all pipeline reinforcement was the Clock Spring pipeline repair technique. During August, 2004 a pipeline inspection was successfully carried out in the 8 inch, 38.7km Gas pipeline from Wasleys Offtake to Angaston Meter Station. The inspection activities included:

• Cleaning and Gauging • Geometry Inspections with an Electronic Geometry Pig (EGP) • Metal Loss Inspection with a Corrosion Detection Pig (CDP)

The following list shows the most severe features that were found. These features have been selected in accordance with the following priority rules and are listed in order of their severity: Rule 1 Features with ERF greater than or equal to 1. Rule 2 Features with peak depth greater than or equal to 80% wall loss. Rule 3 Features with ERF greater than or equal to 0.95 and less than 1.0. Rule 4 Features with peak depth greater than or equal to 20% and less than 80%.

KP Typeof Defect length [mm]

width [mm]

depth [%]

Avg wl [%]

ERF RSTRENG Internal

35.04 General 50 96 46 12 1.08 NO 32.74 Circ Grooving 13 31 46 32 0.93 NO 31.45 Pitting 12 29 35 26 0.92 NO 15.36 Circ Grooving 12 31 31 20 n/a 33.52 Circ Grooving 15 30 29 19 0.93 NO 8.23 Pitting 14 29 26 19 0.92 NO

34.07 General 57 65 26 8 n/a 8.23 Circ Grooving 13 30 24 16 0.92 NO 9.25 Pitting 12 14 24 18 0.92 NO

16.60 Circ Slotting 9 21 24 18 0.91 NO 32.63 Pitting 13 26 23 14 0.92 NO 30.59 Circ Grooving 13 44 22 14 0.92 NO 34.10 Axial Grooving 94 15 22 6 n/a 23.10 Pitting 26 24 21 9 0.94 NO 30.00 Circ Grooving 17 58 21 12 0.92 NO 30.02 Circ Grooving 11 38 21 15 0.92 NO 31.45 Pitting 11 21 21 16 0.92 NO 25.46 Pitting 25 23 21 11 n/a 7.72 Pitting 21 17 20 10 0.93 NO

11.45 Pitting 18 26 20 12 0.92 NO 22.29 Pitting 11 14 20 15 0.92 NO 34.08 General 49 68 20 7 n/a

In February, 2005 the top 5 defects listed above will be excavated and assessed. This process will enable Epic to verify the accuracy of the data gained during the pigging and data analysis process.

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3.2 STRESS CORROSION CRACKING INVESTIGATIONS

A program to investigate possible locations of stress corrosion cracking on the pipeline system downstream of compressor stations commenced in 2004:

• Archived discharge pressure and temperature data from each compressor station was located and plotted to establish the most likely locations for SCC to form due to operation of compressors.

• A DCVG program was initiated for the areas 30km downstream of each compressor station. The information gained will establish the areas of worst coating condition and help to highlight the areas most likely to contain SCC. To date

In early 2005, the station discharge temperature, station discharge fluctuating pressure, DCVG information and historical cp records will be overlaid to find the areas most suited to SCC growth. A dig up program will be initiated once these areas are identified. Random MPI inspections for the detection of SCC were completed during the Corrosion dig up program. For the locations of the defect dig ups on the MAP, Refer Section3.1.2 for locations. In all 11 cases no SCC was discovered.

3.3 EXTERNAL SURFACES

Compressor Station 3 and facilities at Douglas Point, Mambray Creek, Pt Pirie, Bungama, Elizabeth, Nuriootpa, Pelican Point and Pt Bonython underwent a re-coat of all above ground pipe work and equipment in 2004. This task consisted of blasting all painted surfaces and ensuring new coatings were applied to manufacturer’s specifications. The coating system used consisted of a three coat, two pack epoxy paint system.

3.4 COATINGS

Gippsland Cathodic Protection Services completed a DCVG survey on the Wasleys to Torrens Island Loop Line in June 2003. Epic Energy’s Senior Cathodic Protection Engineer has assessed the reports and as a result 2 defects have been excavated for investigation and repair. 40% IR Drop Lat: -34.633772o Long: 138.55662o Existing UHB, Vessy Vepox 720 coating was found to be blistered due to mechanical damage suffered during construction and loss of adhesion during the service life of the pipeline. The defective coating was removed and the pipe surface returned to bright metal through blasting. The coating was then reinstated by the application of Araldite K138 and the excavation backfilled 29% IR Drop Lat: -34.633772o Long: 138.55662o Existing UHB, Vessy Vepox 720 coating was found to be blistered due to mechanical damage suffered during construction and loss of adhesion during the service life of the pipeline. There was also blistering on a field joint coating to an adjacent girth weld – probably Araldite K139. The defective coating was removed and the pipe surface returned to bright metal through blasting. The coating was then reinstated by the application of Araldite K138 and the excavation backfilled

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3.5 PIPELINE CATHODIC PROTECTION

Epic Energy’s SAOP lays out how the Cathodic Protection system maintenance activities associated with the pipeline and its facilities will be managed throughout the year. All cathodic protection routine activities are specified in a computerised maintenance management system (Maximo) and scheduled by this system to the maintenance staff via work orders. To mitigate corrosion, all buried pipelines are covered with a protective coating, which serves to isolate the external pipeline surfaces from corrosive elements in the surrounding environment. Secondary protection at coating holidays and imperfections is achieved by applying cathodic protection.

3.5.1 PIPELINE POTENTIAL PROFILES

Pipeline instant OFF potential profiles of February and August 2004 are given in Appendix B. They indicate that while the OFF potentials showed lower potentials than -850 mV in the February 2004 survey, the profile improved significantly in the August 2003 survey. The trend can be attributed to dry and wet seasonal changes. The low OFF potentials at Kp67.7 9 (MLV 4) and 75.4 are transient as the pipe line showed satisfactory levels of protection in previous years. The February 2004 survey OFF potential profiles showed significant below criteria OFF potentials down stream of Kp77.1, 172.1, 352.8, 423.0 and 731.9 on the map also at Kp44.9 and 56.8 on the Pirie Lateral and at Kp7.5, 26.6 and 38.4 on the Angaston Lateral. The low levels were identified in the 2003 surveys and were found to be due to deterioration of ground beds. As a consequence, new ground beds were installed in 2004 at the following locations: Moomba Adelaide Pipeline Kp4.5 Moomba Kp77.1 Tinga North Kp172.1 Yerila Creek Kp352.8 CS4 Kp423.0 Willipa Kp731.9 Wasleys Pirie lateral Kp44.9 Gladstone Kp56.8 Hughes Gap

The effectiveness of the cathodic protection system is monitored by carrying out two full line potential surveys annually, once at the end of summer and then again at the end of winter. In addition, all cathodic protection units (CPU’s) are inspected for correct operation bi-monthly.

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Angaston Lateral Kp7.5 Wasleys East Kp26.6 Daveyston Kp38.4 Angaston The newly installed ground beds will be investigated in the 2005 surveys, it is expected that the pipe potentials in these areas will be increased to acceptable levels. At all sites deep well ground beds were installed, each 30 m deep with 6 high silicon iron, HSI anodes. The Moomba to Adelaide and associated laterals routine full line cathodic protection surveys were completed during 2004 as scheduled by Epic Energy’s computerized maintenance management system. (Results of these surveys are presented graphically in appendix B) On the Moomba to Adelaide Pipeline and the associated laterals protected with impressed current systems, routine bi monthly cathodic protection transformer rectifier unit maintenance was completed during 2004 as scheduled by Epic Energy’s computerized maintenance management system.

3.5.2 CP REPAIR WORK

Corrective maintenance identified during routine inspections of the transformer rectifier units or as a result of the analysis of the full line protection surveys data was entered into the maintenance management system, prioritised and scheduled into the work load of the maintenance teams. Interference testing and commissioning was carried out on 7 sites where the SeaGas Pipeline crossed the Moomba to Adelaide Pipeline System. Interference Test Posts installed as required.

3.6 ELECTRICAL AND INSTRUMENTATION

Epic Energy’s SAOP lays out how the Electrical and Instrumentation system maintenance activities associated with the pipeline and its facilities will be managed throughout the year. All Electrical and Instrumentation routine activities are specified in a computerized maintenance management system (Maximo) and scheduled by this system to the maintenance staff via work orders.

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The list below identifies all of the activities carried out by the maintenance teams in 2004. All routine custody transfer and fuel gas metering equipment accuracy verification testing was completed as per the maintenance schedule. All routine maintenance tasks associated with the pipeline compressor and meter station facility natural gas detection equipment was completed as per the maintenance schedule. All routine maintenance tasks associated with the pipeline compressor and meter station facility fire detection equipment was completed as per the maintenance schedule and in accordance with the relevant Australian standards. Routine annual compressor and meter station uninterruptible power supply battery maintenance was completed as per the maintenance schedule. Routine annual process compression equipment engine management system and safety shutdown controls completed at all compressor stations as per the maintenance schedule. Several Turbine meters were replaced with the in service meters sent for re-calibration and certification Routine annual power generation equipment engine management system and safety shutdown controls completed at all compressor stations as per the maintenance schedule. Routine compressor and meter station emergency shutdown and other safety system electrical tests carried out as per the maintenance schedule. Routine compressor and meter station pressure, temperature and flow transducers along with their associated transmitters calibrated and tested as per the maintenance schedule. These tests ensure that the SCADA system receives accurate information. Routine electrical equipment testing completed at all of Epic Energy’s pipeline facilities as laid down by Australian standards and scheduled by the Epic Energy computerized maintenance management system schedule. An ongoing program of developing detailed Instrumentation and Electrical service procedures which capture all tasks required to be carried out in accordance with the various statutory and license requirements was progressed during 2004. Tasks identified have been included into the routine maintenance work instructions for all sites. Several battery Chargers, servicing the un-interruptible power supplies on the Mainline and Loopline Main Line Valves, were replaced with the latest available technology system. In addition to the routine tasks or project type activities above, the maintenance staff have investigated and solved numerous corrective maintenance issues that have been identified as a result of the routine maintenance activities or from failures that occur in the day to day operation of the pipeline. “Maximo” is used to schedule all of the identified corrective maintenance tasks on a priority basis into the maintenance teams work load.

3.6.1 SIGNAGE

All signage is inspected and maintained during routine pipeline road patrols as per AS2885 and can be considered to be in good condition. Additional signage was added from the Mintaro meter Station to the Wasleys Compressor Station in 2004 to increase LOS Additional signage, if required due to changing land use conditions or the crossing of other services are identified during the routine patrols and entered into “Maximo” to allow for their installation to be scheduled into the maintenance teams work load.

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3.6.2 PRESSURE CONTROL AND PROTECTIVE EQUIPMENT

All pressure control devices located at compressor and meter stations along with their associated protection devices (pressure relief valves) are routinely calibrated as per the maintenance schedule and in accordance with the relevant Australian standard.

3.6.3 SITE SECURITY

All building and facility security systems such as motion detectors, door entry switches, window screens as well as the facility compound fences, critical valve and gate locks are checked as part of the routine pipeline patrol system and on a routine basis to ensure they are all serviceable and remain fit for purpose. During 2004 a number of security breaches occurred as follows; Osborne Meter Station was broken into and a printer and consumables were stolen. Access was gained by the removal of the compound gates hinge nuts being removed and louvers removed from a window to gain entry into the Meter Station control room. Gate hinges were replaced and secured against removal and a grille fitted to the window. On two occasions Dry Creek compound fence was infiltrated and equipment stolen. As a result of these the fence line was secured, security key pad controlled access gates installed, security screens fitted to all external windows and additional security cameras installed in compound. All staff required to remove tools and equipment from vehicles left parked overnight in the compound

3.6.4 STRUCTURES

All pipeline facility building structures are considered to be in sound condition and fit for purpose. No damage was reported, and only minor maintenance was required during 2004.

3.7 COMMUNICATIONS

Epic Energy’s SAOP lays out how the maintenance activities associated with the pipelines microwave communications system will be managed throughout the year. All communication system routine activities are specified in a computerised maintenance management system (Maximo) and scheduled by this system to the maintenance staff via work orders. The list below identifies a range of the activities carried out by the maintenance teams in 2004.

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The following routine planned maintenance tasks are scheduled throughout the year; All routine UHF and VHF communications system maintenance was completed as per the maintenance schedule. All routine maintenance tasks associated with the communications system uninterruptible power supply batteries was completed as per the maintenance schedule. All routine maintenance tasks associated with the communications system solar generated power supply batteries was completed as per the maintenance schedule. Solar powered site emergency generator repairs and maintenance tasks were completed as per the maintenance schedule. During 2004 a number of communications system outages occurred when inclement weather caused the site AC power supply to be interrupted for extended periods and the uninterruptible power supply batteries were then exhausted before a maintenance crew could get to site. The existing communications equipment at the Nuriootpa and Angaston Meter Stations were aging and no longer supported. New Maxxon radio systems installed at these sites in 2004. A new solar powered Communications site was installed at Freeling to further enhance the system

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Telstra land line connections have caused a number of communications system problems in 2004 with Epic Energy and Telstra maintenance staff on occasions needing to join forces to track down the faults. In addition to the routine tasks above the maintenance staff have responded to, investigated and solved numerous corrective maintenance issues that have been identified as a result of the routine maintenance activities or from failures that occur in the day to day operation of the pipeline communications system.

3.8 MECHANICAL

Epic Energy’s SAOP lays out how the pipeline and its associated facilities mechanical maintenance activities will be managed throughout the year. All Mechanical system routine activities are specified in a computerised maintenance management system (Maximo) and scheduled by this system to the maintenance staff via work orders. The list below summarizes the activities carried out by the maintenance teams in 2004.

The following routine planned maintenance tasks are scheduled throughout the year;

• All compressor and meter station routine filter inspections/changes were completed as per the maintenance schedule.

• All of the pipeline, compressor and meter station routine MLV and other major valve including the valve operator maintenance was completed as per the maintenance schedule.

All compressor and meter station routine emergency shutdown system checks were completed in accordance with the maintenance schedule. All compressor and meter station routine pressure regulator and over pressure protection devices tested in accordance with the relevant Australian standard as detailed in the maintenance schedule.

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All routine maintenance tasks associated with the compressor station power generation equipment was completed as per the maintenance schedule. These tasks were established based on the recommendations of the original equipment manufacturer and extended by Epic Energy’s technical services group.

• All routine maintenance tasks associated with compressor station process gas compressors and their associated drivers was completed as per the maintenance schedule. These tasks were established based on the recommendations of the original equipment manufacturer and extended by Epic Energy’s technical services group.

• All Routine maintenance activities associated with compressor and meter station ancillary equipment completed as per the maintenance schedule.

• All fixed and portable fire fighting equipment inspected as per the maintenance schedule and in accordance with the relevant Australian standards.

• End of service life (45,000hr) overhauls carried out on power generation equipment gas powered reciprocating engine alternators (GEA’s) at CS3 & 4,

• During 2004, both Centaur gas turbines at CS-7 were boroscoped to identify any gas turbine related problems. High Cycle Fatigue cracks were discovered on the power turbine section of unit A after only 500 hours of operation. The power turbine has been replaced by Solar.

• New pressure regulation equipment has been installed at Hallett power station to resolve the previous equipment failures (flow induced vibrations).

• Pelican Point Run #3 monitor regulator was replaced to enhance reliability • New pressure equipment has been installed at Osborne Cogeneration offtake and

delivery station to reduce delivery pressure fluctuations and to replace equipment that had reached the end of its service life.

• Routine maintenance inspections were carried out on pressure vessels associated with the pipeline and its associated facilities as per the maintenance schedule and in accordance with the relevant Australian standard AS3788.

In addition to the routine tasks and project work above, the maintenance staff have responded to, investigated and solved numerous corrective maintenance issues that have been identified as a result of the routine maintenance activities or from failures that occur in the day to day operation of the pipeline mechanical systems.

3.9 ANCILLARY EQUIPMENT

Ancillary equipment such as pipe supports, pipe ground entry points, valves and pigging facilities are routinely inspected as part of the facilities inspections or as a part of the mechanical maintenance as detailed above.

3.10 RESULTS, ANALYSIS AND REMEDIAL ACTION TAKEN

Results from routine inspections are reviewed by the field technical services group to ensure that any problems or issues that may have been overlooked are identified and addressed by the maintenance staff or forwarded onto engineering for further technical analysis. If a problem requires a system design change to be made, the maintenance staff, field technical services group or engineering will put forward the proposed modification using the

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design change process. This process is one of review and formal acceptance and sign off by the engineering group. On intervals that are random, administrative reviews by the Maintenance Superintendents occurred. There were minor administrative practices picked up during these reviews and personnel were addressed on non-conformance. Follow-up auditing will occur to ensure compliance to practices. As a result of the routine maintenance activities of the field staff or due to the day to day operation of the pipeline, numerous corrective action maintenance tasks are identified in the course of a year. All of the tasks identified are investigated, corrective actions specified, the task prioritised by the maintenance staff and entered into “Maximo” along with all equipment, parts and support equipment needed to complete the job. The planning group using “Maximo” information then schedule the corrective action maintenance tasks into the maintenance teams work load using a work order system. Corrective maintenance activities are prioritized using a three step process as follows,

• Priority three (3) faults will be addressed within twenty four (24) hours, • Priority two (2) faults will be addressed within ten (10) days • Priority one (1) faults will be addressed within six (6) weeks

3106 Corrective maintenance tasks were addressed in 2004 using the above criteria.

4.0 THREAT MITIGATION

4.1 SURVEILLANCE

Epic Energy’s SAOP lays out how the surveillance activities associated with the pipeline system will be managed throughout the year. All routine surveillance activities are specified in a computerized maintenance management system (Maximo) and scheduled by this system to the maintenance staff via work orders. The list below summaries the activities carried out by the maintenance teams in 2004.

• Aerial and road patrols ensure that the pipeline; • Signage is in a serviceable condition • There are no unauthorized activities occurring along the pipeline route or at any of the

numerous facilities • Soil erosion due to wind and water is addressed • There are no leaks occurring at any of the pipeline facilities or along the pipeline route • All sites are secure • General housekeeping tasks are addressed.

Routine monthly pipeline mainline valve sites, compressor station and meter station inspections were carried out in accordance with AS2885, Epic Energy procedures and the maintenance schedule. Underwater crossing inspections are carried out annually on the Whyalla Lateral crossing of the Spencer Gulf, the Wasleys to Adelaide Loop Line crossing of the Barker Inlet and the Taperoo, Pelican Point, Osborne Lateral crossings of the Port River

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Any corrective maintenance or necessary follow up actions that are identified as a result of the various routine patrols will be prioritized and entered in “Maximo”. The planning group then uses this information to schedule the tasks into the work load of the maintenance team in accordance with the priority system discussed in section 3.10. Epic Energy, as a requirement of AS2885, participates in a “One Call” system that generates numerous investigations and actual locations of the mainline and the laterals. During 2004, 442 “One Call” messages were assessed by Epic maintenance staff and 94 actual pipeline locations performed.

4.2 MAINTENANCE PROGRAMS

The maintenance program was carried out to completion in 2004. No significant issues were recorded to report on. The maintenance Plan underwent extensive reviews throughout the year. As a result of the review changes were made to Schedules, Work Instructions and Procedures The Planning department schedules both Planned and Corrective maintenance activities through the WorkPack system via Maximo with the appropriate allocation of personnel, spares, tooling and /or equipment. This system underwent a process of upgrading and refinement throughout 2004 and will continue as an ongoing process In addition to the changes to the work scheduling system, a continuous review process ensures that the maintenance plans and maintenance schedules will meet all of Epic Energy’s legal, contractual and compliance obligations.

4.3 MARKING

The pipeline markers were installed in accordance with AS2885. Epic Energy makes every endeavour to ensure the signage continues to meet the standard. The quality and quantity of the signage installed on the Moomba Adelaide Pipeline is continually monitored and reviewed for compliance during the scheduled aerial and road patrols

The following routine planned maintenance tasks are scheduled throughout the year; Monthly surveillance flights primarily to monitor third party activities in the metropolitan area were carried out in accordance with AS2885, Epic Energy procedures and the maintenance schedule. Three monthly surveillance flights to monitor soil erosion and third party activities were carried out in accordance with AS2885, Epic Energy procedures and the maintenance schedule. Routine road patrols with frequencies of daily in the metropolitan area, weekly in some rural areas, monthly in others and three monthly in the more remote areas of the pipeline were carried out in accordance with AS2885, Epic Energy procedures and the maintenance schedule.

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Routine patrols identify Line of Sight issues throughout the reporting year and these are addressed on an as needs basis with either contractors or in-house staff ensuring the LOS is maintained by installing new signs or replacing warning stickers as required.

4.4 EXTERNAL INTERFERENCE PREVENTION

Epic Energy provides a free service to locate pipelines for which they are responsible. This service is primarily used by other companies carrying out civil works in the vicinity of any of the pipelines administered by Epic Energy. There were 442 One Calls responded to in 2004, with approximately 94 actual pipeline locations performed. The majority of the pipeline locations requested was the result of the “One Call" system. They ranged from new installations crossing the pipeline, new fences as a result of subdivisions and general activities on the pipeline easement. All authorized activities within the pipeline easement were supervised by Epic Energy Field Officers to ensure the safety and integrity of the pipeline. During 2004, Epic Energy provided site supervision for a number of companies when their construction projects impacted on the Moomba to Adelaide pipeline systems. Epic Energy is required to supervise all activities within the pipeline easements and ensure the work is carried out under an Epic Energy “Permit to Work”

4.5 LANDHOLDER CONTACTS.

There are 470 landowners and occupiers along the MAP system.

Pastoral landowners on the northern section of the MAP were contacted during the reporting period Landowners on the Pirie Lateral, Whyalla Lateral, Angaston Lateral and Moomba to Adelaide pipeline were contacted during the year. The Wasleys Loop landowners will be visited during early 2005 The total number of landowners who are contacted annually in SA is approximately 750.

A property owner contact scheme is operated by Epic Energy. The Land Management Officer visits each owner or occupier along the pipeline system annually. Other contacts made by the Land Management Officer, Field Maintenance Officers or the maintenance Superintendents during the course of daily business, or other land related issues that arise occasionally are recorded in Epic Energy’s Land Management System (LMS). Land Management is supported by dedicated LMS software. It provides a powerful database and MapInfo facilities. All property details and notes relating to discussions or issues with the property owners are recorded in LMS. Through the MapInfo facility, an image of the cadastral boundaries of each property, relative to the pipeline route, can be displayed for any property. If personal contact cannot be made, the occupier or owner is telephoned and mailed a letter informing the landowner of pipeline safety requirements for working within the pipeline

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easement, contact details, as well as a copy of Epic Energy’s “Pipeline Safety and You” brochure.

4.6 COMMUNITY AWARENESS

Epic Energy implements a Community Awareness Program, which entails holding awareness meetings with communities along the pipeline route. The target is to hold meetings annually with CFS, MFS, Police, Ambulance, SES, Councils, earth moving contractors, irrigation installation contractors. Other community members are invited to attend. A number of community awareness presentations were made during January and February 2004. These were held in Peterborough, Pt Augusta, Port Pirie, Gawler, CFS State Headquarters, Adelaide, and at our Dry Creek Depot. Invitees included members of the Police Force, Local Government, Emergency Services and Utilities. The presentations focused on the general properties of natural gas, the process of gas transmission by pipeline, location of Epic Energy’s high pressure gas pipelines in the regions concerned, correct procedures when working within gas pipeline easements, pipeline threats and dealing with emergency situations. Attendees were given information packs including "Pipeline Safety and You" videos.

4.7 RISK ASSESSMENTS

The risk management system is utilised to ensure that hazards are identified and risks evaluated and managed at all facilities. The process for identifying, assessing and managing risks is documented and includes:

• Hazard identification • Hazard analysis • Risk assessment • Risk control • Reporting and close out

Hazards are identified using the following tools – HAZOP, HAZID, safety reviews, job hazard analysis, incident reports and investigations, audits and inspections together with the risk assessment process from AS2885.3-2001 Pipelines - Gas and liquid petroleum - Operation and maintenance Hazard analysis is conducted using HAZAN and job hazard analysis. Risk assessments are conducted to assess risk against set criteria, to demonstrate that risk reduction measures are as low as reasonably practicable (ALARP). This is done using the following tools: risk matrix, previously conducted risk assessments, AS2885 pipeline risk assessment and comparison against standards, codes and legislation. Risk control methods include the following – elimination, substitution, engineering controls, administrative (procedural controls) and personal protective equipment (PPE). Reports are then prepared with tasks allocated to appropriate people for action. Tools used in this area include the hazard register, critical tasks list and close out reports.

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During 2004, the following HAZOPS and risk assessments were conducted or completed for internal reviewed or for operational requirements due to third party activities along the pipeline systems;

• A HAZOP was conducted into the Fire & Gas Upgrade Project prior to the first installation commencing at Station 5

• Actions arising out of the Metropolitan Meter Station HAZOPS were addressed throughout the year

• Actions arising out of the Compressor Station 2002 / 2003 HAZOPS were addressed throughout the year

Risk assessments and HAZOP actions -

• Data collected from the AS2885 Risk Assessments and HAZOPS of the South Australian Pipeline systems has been formatted into location specific and non specific data bases to easily identify the actions. The actions have been prioritized and will be included into the 2004 capital project works program and the SA maintenance plan.

4.8 AS2885 RISK ASSESSMENT

A full AS2885 “Risk Assessment” was completed on the MAP and laterals in 2002 and a “Close out Report” forwarded to PIRSA in January 2003. The next “Risk Assessment is due in 2006 The list of credible threats identified in this work shop were : Intermediate

• External corrosion [ SCC ] all laterals • General corrosion [ CP shielding ], Dry Creek, Taperoo, Burra, Peterborough, Port

Bonython, Whyalla and Angaston Laterals. • Trenching operations, MAP, Peterborough, Burra, Whyalla and Angaston laterals. • Power pole boring, MAP, all laterals except Osborne and quarantine Laterals. • Dam building, Angaston Lateral

Low

• Internal corrosion [ CO2 ] all laterals • General corrosion, all laterals • Bore drilling, Angaston lateral. • Change in land use [ vineyard development ] Angaston lateral. • Excavation of Telstra cable which crosses the MAP at Kp 680.7 • Fault current power line breakage from parallel power lines, MAP and laterals. • Casing shielding pipe from adequate CP at rail crossings. • Washout at Balcoracana Creek on the MAP • Wilpena Creek crossing, MAP • Creek crossings on MAP at Kp 413 and Kp 547 • Drain crossing on MAP at Kp 646.3 • Failure of Origin Energy 18” pipeline on the Dry Creek lateral. • Failure on Moomba to Port Bonython liquids line at Kp 68.1, Whyalla and Port Pirie

lateral. • Failure of Epic Energy’s 20” loopline at Kp 0.02, Osborne lateral. • Failure on Moomba to Port Bonython liquids line at Kp 4.4, Port Bonython lateral. • Emergency anchor drops from passing ships in Port River, Taperoo lateral.

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• Anchorage damage to both the 4” and lateral in the Spenser Gulf underwater crossing, Whyalla lateral. Negligible

• Mulligans Springs Creek crossing • Failure of Santos buried gathering lines crossing the MAP • Failure of above ground Santos gathering lines crossing the MAP • Fault currents/ power line breakage.

4.9 OTHER

During the risk assessment process third party activity has been identified as being the most likely cause of damage to the Moomba to Adelaide Pipeline. Unauthorized activity on the pipeline easement is the greatest concern. The risks identified are predominately from landowners carrying out activities that involve excavations, post hole boring, or changing the land use without advising Epic Energy or from utilities and councils, whenever they are installing new services or conducting activities that may impact on the pipeline corridor In addition to the above risks, the unauthorized use of heavy machinery and earth moving equipment on the easement poses a further risk to the safety of the pipeline system. Natural events such as erosion, flooding of the pipeline and impact from floating objects, have the potential to cause pipeline and coating damage. Epic Energy ensures the pipeline safety through regular road and aerial patrols, installation and maintenance of pipeline system warning signs as well as conducting a community and landowner awareness program. Epic Energy routinely reviews patrol frequencies to ensure they adequately meet the changing requirements of the community and the landowners who impact on the pipeline thereby ensuring the risks that these groups impose are adequately managed.

5.0 MANAGEMENT

5.1 REPORTS GENERATED IN 2004

The following reports were generated and forwarded to PIRSA during 2004 Emergency Exercise “Operation Blue lake” Report Quarterly Incident Reports Emergency exercise Operation ”Hawker” Report 88 Emergency PL1 Annual Report for 2003

5.2 2004 ONE-OFF ACTIVITIES

The painting of all above ground pipework and structural steelwork at the following meter stations Nuriootpa, Angaston, Elizabeth, Bungama, Douglas Point, Mambray Creek, Port Pirie & Port Bonython The painting of all above ground pipework and structural steel at compressor stations 3 Compressor station control room facilities upgrade Whyte Yarcowie compressor station human machine interface upgrade Compressor station power generation equipment building upgrade The Osborne Co-generation facility underwent a regulator change-out when new Gorter regulators were installed

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The Hallet Power Station underwent a regulator change-out when a new Gorter regulator was installed Subsidence issues concerning the MAP Compressor Station pipework underwent investigation in 2004 prior to a remedial action plan being developed, if necessary, for implementation in 2005 Remedial work generated as a result of the 2002/3 Compressor & Meter station HAZOP’s or Audits Battery charger upgrades at Torrens Island and Gepps Cross meter stations Removal, inspection and recertification of the Dry Creek meter station filter separator Excavations as a result of the recently completed Intelligent pigging program Regulator temperature investigation into downstream of station regulated pipework SCC investigation downstream of compressor stations Amcor meter station upgrade as a result of load increase Completion of Intelligent Pigging Inspection on the Angaston lateral.

5.3 2005 ONE-OFF ACTIVITIES

Intelligent Pigging of the Bungama and Whyalla laterals and the South East System MAP subsidence remediation based on final modelling to reduce stress levels in pipework as required Continuation of borescope inspection on gas turbines Remediation of known troublesome Creeks Hydrostatically test fire system CO2 pressure vessels at Whyte Yarcowie Compressor Station Five pipework painting Excavations arising from the 2002 intelligent pigging and SCC investigations Whyte Yarcowie engine major overhaul Earthing and Lightning Protection project of metro Meter Stations

5.4 2006 ONE-OFF ACTIVITIES

AS 2885 Risk Assessment

5.5 VOLUME OF PRODUCT TRANSPORTED

Approximately 67,493TJ of natural gas was transported through the Moomba to Adelaide Pipeline in 2004.

5.6 STATEMENT OF EXPENDITURE

Commercial in confidence

6.0 EMERGENCY RESPONSE

Pipeline Licence 1 states that an emergency exercise is to be conducted on the Moomba to Adelaide pipeline system every two years. Epic Energy satisfies this requirement by conducting two emergency exercises annually in South Australia. Conducting two exercises a year allows Epic Energy to refine our emergency response preparedness and to gain a broader understanding of response

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requirements, roles and responsibilities within the Epic Energy team when dealing with a variety of emergency situation scenarios. Emergency Response procedures are detailed in the Epic Energy’s “Emergency Response Manual” which was updated in 2004.

6.1 EMERGENCY RESPONSE INCIDENTS.

During the reporting period, there were no recorded pipeline incidents that required Epic Energy to initiate an Emergency Response.

6.2 EMERGENCY RESPONSE EXERCISES

Pipeline Licence 1 requires emergency drills be held on the pipeline system at least every two years. For PL1, a full mobilization exercise “Exercise EPIGAS” was conducted on the MAP at Peterborough In 2003 During 2004 two emergency exercises were carried out by Epic Energy on pipelines other than PL1. Both exercises were carried out in conjunction with other emergency services [SES, CFS, MFS, Police, and Ambulance], to test the communication between all parties and prepare Epic Energy personnel in the event of a real emergency situation. The first exercise (“Exercise Blue Lake”) was conducted on the South East Pipeline System on 22nd June. This was conducted in accordance with “Regulations under the Petroleum Act 2000” and the requirements of Pipeline Licences 3 and 4. In this incident, a simulated gas release and subsequent fire was used to test emergency services responses. The second exercise (Exercise Hawker) was conducted on the Moomba to Point Bonython Liquids Line on 18th November 2004. This was conducted in accordance with “Regulations under the Petroleum Act 2000” and the requirements of Pipeline Licence 2. The scenario was a backhoe working adjacent to pipe work has hit the pipe work causing damage and the release of hydrocarbon vapour. Reports have has been sent to PIRSA summarizing the findings of both of these exercises. Objectives of the emergency exercise To test the ability of the South Australian Emergency Response Team and the Emergency Management Team to respond to an emergency situation to a standard which meets regulatory requirements, including the mobilisation of personnel and equipment to the incident site. To test the Emergency Response room layout facilities and time to set up at Epic Energy’s Dry Creek and Perth locations. To test the callout system of the Epic Energy Crisis Management Team, the Head Office supporting teams and the South Australian technical and sales teams, as appropriate to the scenario.

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7.0 SAFETY AND ENVIRONMENTAL MANAGEMENT

The Safety Management System (SMS) has been developed and implemented at Epic Energy to provide all Epic Energy personnel with a framework for the management of Safety issues. The Safety Management System provides guidance to personnel at all levels of the organization to ensure that all activities on site are undertaken in accordance with Epic Energy’s Safety Policy and all regulatory requirements. The Safety Management System is an integral part of the overall management system at Epic Energy.

7.1 INCIDENT AND CORRECTIVE / PREVENTATIVE ACTIONS

7.1.1 INCIDENTS

Vehicle incidents There were 6 Avoidable and 3 Unavoidable vehicle incidents on the MAP during the reporting period. Injuries reported There was 1 Lost Time (LTI), 1 Medical Treatment (MTI) and 4 First Aid (FAI) safety incidents during the reporting period. Other Safety incidents There was 1 safety incident, 2 near misses, no safety damage and 4 safety hazards on the MAP during the reporting period. Environmental incidents There were 2 reportable environmental incidents, 5 environmental encroachments (Type B), no environmental near miss and 1 non-reportable environmental accident. As well, seven (7) hazards relating to Environmental aspects were identified and reported Security incidents There were 3 security incidents on MAP facilities. A Total of 40 Hazard/ Incident Reports received for the MAP/ MAP facilities for 2004

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7.1.2 REPORTED HAZARDS/ INCIDENTS

Every quarter, Epic Energy submits a summary of reportable hazards/ incidents to PIRSA. The PIRSA hazards/ incident summary report provides a summary of all reportable incidents for the quarter, incident analysis information, action details and action status. A total of 40 safety and environmental hazards/ incidents were reported on the Moomba to Adelaide Pipeline including: Unauthorized Activity in the Easement There were 4 unauthorised encroachments on the MAP during 2004 Excavation contractors commenced digging hole on the easement without prior approval. Reflective markers installed on easement by local council Gate posts installed on easement by local landowner Excavation conducted on easement without authority Gas Releases There was one incident related to the opening of relief valves in 2004. Elizabeth Meter Station regulator failure resulted in the over pressure relief system operating and venting methane to atmosphere. Oil Spills CS4 Unit B Metal fatigue caused a mechanical failure in a drainer pot assembly resulting in an oil spill to ground of approximately 500 litres. Reportable Injuries There was one (1) Lost Time Injury and one (1) Medical Treatment Injury on the MAP during 2004.

South Road , Bolivar An excavation collapsed during a CAD welding procedure trapping the operator in the trench. The operator sustained only superficial injuries from the Incident. Incident reported to “ Work Place Services “

Yunta Road An employee driving a truck received a foreign body in eye due to wind gusts when he stopped to check his load.

Vehicle Incidents An engine sustained damage when it overheated after radiator cap was not secured correctly An employee reversed into a truck’s tray in a suburban shopping centre car park A vehicle was damaged when it struck cow approaching an accommodation gate A vehicle sustained minor damage when it was attempted to be driven through partly opened gates A vehicle was damaged when the driver lost control on a wet dirt road and it tipped onto its side. A vehicle sustained damage when it reversed into stationery vehicle in a hotel car park.

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7.2 INCIDENT TREND ANALYSIS

0

2

4

6

8

10

12

14

16

No. of Incidents

2002 2003 2004Year

LTIMTIEnvironmental ReportableEncroachmentsVehicle (Avoidable)Total No. of Incidents

MAP Incidents - 2002 / 2003 / 2004

The number of incidents reported decreased by 1 during 2004 to 15 (compared to 16 recorded during 2003) There was 1 MTI and 1 LTI reported on the MAP during 2004 compared to 1 MTI and 0 LTI reported on the MAP during 2003. During 2002, there was 1 LTI and MTI. The number of avoidable vehicle increased to 6 during 2004 (from 4 in 2003). The number of reportable environmental incidents remained at 7 in 2004 (same as in 2003).

7.3 AUDITS

Epic Energy is committed to providing an accident free and healthy workplace for all employees, contractors and the public by implementing an integrated safety management system and maintaining the highest standards possible. To achieve this goal, Epic Energy has systems in place that require staff to routinely inspect the work place no matter where that may be and carry out a number of audit functions that ensure a safe and healthy work environment is maintained. The list below is a summary of the audits carried out in 2004. During the reporting period, monthly safety and housekeeping audits have been completed at all of the pipelines facilities as per the maintenance schedule. During the reporting period, an asbestos audit was conducted al all of the pipeline meter and compressor stations.

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During the reporting period, audits were carried out on Dry Creek Workshop, Zone 3 Meter Station and metropolitan Meter station facility drawings to ensure they comply with the latest revisions as supplied by Epic Energy’s engineering consultants drafting office. The results of these audit functions are filed and any actions arising from them are entered in Epic Energy’s computerized maintenance management system which automatically raises work orders based on the level of prioritization given to the individual action items.

7.3.1 OPERATIONAL AUDITS

No Operational Audits were conducted during the reporting period

7.3.2 ENVIRONMENTAL AUDITS

The Environmental Management System (EMS) has been developed and implemented at Epic Energy to provide all Epic Energy personnel with a framework for the management of environmental issues. The Environmental Management System provides guidance to personnel at all levels of the organization to ensure that all activities on site are undertaken in accordance with Epic Energy’s Environmental Policy and all regulatory requirements. The Environmental Management System is an integral part of the overall management system at Epic Energy. The Environmental Management System was scheduled for an audit review in 2004 – this was not completed and has been re-scheduled for March 2005 The SEO and EIR for the Moomba to Adelaide Pipeline was completed and gazetted by the SA Government during 2003. Epic Energy has reached an agreement with the local landholder of “Baratta Station” whereby the management of existing “African Rue” plants, an exotic Declared Pest Plant, will be monitored and sprayed at appropriate intervals by a contractor with local knowledge to provide a more effective eradication program. It was noted during the year that exceptionally heavy rain during November/December 2004 has resulted in visibly increased numbers of African Rue in areas adjacent to the pipeline south of Baratta. Two Pastoral Properties south of Baratta are heavily infested with African Rue. The MAP traverses these. Outbreaks of African Rue on the right of way are a threat to the eradication program at Baratta. Funds will be allocated during the 2005 budget to control African Rue on the ROW on these properties.

7.3.3 SAFETY AUDITS

Epic Energy has developed and implemented a Safety Management System (SMS) for all operations and pipeline systems Housekeeping inspections, safety audits, vehicle inspections, RFDS Medical chest audits are conducted on planned frequencies at all facilities, in accordance with our SMS requirements. These continued during 2004 with an average of more than 90% being achieved. Any issues that require remedial actions found during the routine inspections are wherever possible addressed immediately or if this is impractical they will be prioritized and entered into “Maximo” which will allocate the tasks into the relevant groups work load and track the resulting action to completion.

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The safety audit process was taken into consideration in the internal audit framework review referred to above. Audits of safety management will continue to be undertaken in line with the Safety Management System (SMS).

7.4 PERFORMANCE MEASUREMENT AND ANALYSIS OF RESULTS

7.4.1 MAINTENANCE PERFORMANCE

In 2004, 6007 Maintenance Work Orders were produced from Epic Energy’s Computerised Maintenance Management System (Maximo), made up as follows: 48 % Preventative Maintenance tasks; and 52 % Corrective Maintenance tasks.

7.4.2 KEY PERFORMANCE INDICATORS

The following key performance indicators have previously been established to monitor performance of operations and maintenance activities on the Moomba to Adelaide Pipeline.

2004 Target

2004 Actual Comment

Cathodic Protection % of pipeline that has an off pipe to soil potential greater than – 850Mv (WINTER)

97% 95% This result indicates that the target has not been met, however, since 11 new anode beds were installed in October, this figure should improve significantly.

% of pipeline that has an off pipe to soil potential greater than – 850Mv (Summer)

75% 89% This result indicates that the target has been met

Third Party Incident Number of times pipeline is damaged

0 0 Target achieved

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

1 0 Target achieved

Unauthorised activity on easement

6

4

Third parties involved in these encroachments were contacted and advised of the correct procedures before operating on the gas pipeline easement. Refer Section 5.1.1.for details

Exposure of pipeline due to washout and wind erosion

6 1 There was one occurrence of wind erosion during 2004. Cover increases over the pipeline to ensure adequate depth of cover

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Unplanned Gas Release Number of Relief valve/vent discharges

5 1 Elizabeth meter station where the regulator failed and gas vented to atmosphere. This event was reported to the EPA

Number of pipeline leaks (more than 200 m3/hr)

0 0 Target achieved

SCADA and Leak Detection Reliability of SCADA 99.5% 99.37% Target not achieved . Environmental Number of oil or other hydrocarbon spills

2 2 At CS4 approximately 500 litres of oil vented from oil reservoir vent on a compressor unit. Second incident was a minor incident with minimal oil to ground resulting

Gas unaccounted for 0 -0.0207% Target not achieved

Total methane discharged 34.5 TJ 48.9 TJ

7.5 REVIEW AND IMPROVEMENT

7.5.1 COMPLIANCE ISSUES

Every endeavour is made to ensure that design; manufacture, construction, operation, maintenance and testing of all appropriate facilities are carried out in accordance with AS 2885. Any non-compliance identified is logged in Epic Energy’s Computerized Maintenance Management System (MAXIMO), where they are tracked to conclusion. Significant items are reported to PIRSA, there was one Reportable Incident of gas venting to atmosphere in 2004 A Statement of Environmental Objectives (SEO’s) for PL1 has been gazetted. The specific objectives declared in the SEO have been assessed in accordance with the Goal Attainment Scaling. The results of that assessment are provided in Annex A.

7.5.2 ACTIONS TO RECTIFY NON-COMPLIANCE

During 2004 as the result of heavy rains and subsequent flooding there was significant work required to rehabilitate the pipeline as the result of washouts In all cases, the pipeline cover was replaced as soon as was practical to do so after the landscape had dried out.

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7.5.3 TRAINING

Epic Energy is committed to developing the skills of the employees to meet current and strategic needs. To meet this need, Epic Energy has engaged the services of a consulting company to develop a nationally accredited training program and maintain each individuals training records as required by AS2885. Individual’s success will encourage employees to want to learn. It is Epic Energy’s leadership team’s responsibility to encourage people to seek the balance of individual requirements against business requirements to meet Epic Energy’s duty of care to the employees. The focus needs to be setting individual training goals to develop skills in the frequently performed tasks, to enhance Epic Energy’s position in maintenance efficiency. To meet the objectives above the following training has been completed during the reporting period; OHS/ HELM Induction for new employees, contractors and visitors On-site training was conducted on the operation of the Hallet Meter Station Training was carried out for selected staff in the Clock Spring repair technique for pipelines Driver “Collision Avoidance Training” carried out Selected staff attended a course on Centrifugal Compressor Surge Control AS2885 Awareness Handling Liquids Hydrocarbons Safely Lifting and Carrying Safely Excavation Training Baseline Training”– selected roster/day crew personnel. Fatigue and Stress Management training delivered to Field Maintenance Officers and Superintendents. Senior First Aid re-certification training OH&S Induction Refresher and Planning presentation undertaken for all SA FMO’s. Confined Space and Raised Platform training conducted for all FMO’s. Vehicle/ 4WD training carried out for field roster personnel. Effective Communication Course “Office Ergonomics” training held at Dry Creek. POMS/ LMS awareness training. “Gas Chromatograph” training “First 5 Minutes” – Fire Training. SA Gas Quality Upgrade Meeting/Workshop.

8.0 CONCLUSIONS

The maintenance and inspection programs carried out on the Moomba to Adelaide pipeline system in 2004, including a full line Intelligent Pig Survey of 2003, have indicated that the pipeline is in a sound condition and is capable of operating at the design parameters with no restrictions.

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ANNEX A - ASSESSMENT OF DECLARED OBJECTIVES

ANNEX A

2004 PL1 ANNUAL REPORT

DATED FEBRUARY 2005

ASSESSMENT OF DECLARED OBJECTIVES

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Assessment of Declared Objectives MAP Objectives and Assessment Criteria1 Objective Goal Measure/how ACHIEVED/NOT

ACHIEVED COMMENTS

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

Incident report. Records of communications with adjacent landholders / 3rd party prior to and during maintenance work. Landholder contact records database. Photo points or inspection reports, specifically to look at: removal of waste products, re-instatement of soil profiles, adequate re-contouring of surface profile, return of land use.

Achieved Several excavations were carried out by third parties on the right of way to accommodate foreign crossings during 2004. All excavations were completed within compliance of current Procedures

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

1.2 To minimise disturbance to landholders

Records of communications with adjacent landholders / 3rd party prior to and during maintenance work. Landholder contact records database. Landholder activities not restricted as a result of pipeline activities. Completed disturbance checklist

Achieved See comment above

Assessment criteria have been developed to be “black and white”. Professional judgement is required to assess whether non-compliance is minor or major. It is necessary to

ensure that adequate information is available to enable this judgment to be made.

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Objective Goal Measure/how ACHIEVED/NOT ACHIEVED

COMMENTS

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

Timed photo points or annual land survey, specifically to look at evidence of erosion, subsidence, vegetation loss on easement & compare to adjacent land. Inspections undertaken as part of regular patrols, following specific works, following significant storm events. Preventative measures implemented and monitored in susceptible areas.

Achieved The pipeline is patrolled routinely and immediately after any significant amounts of rainfall have occurred and any erosion noted is repaired in a timely manner.

2. To maintain soil stability / integrity

2.2 To prevent soil inversion

Annual land survey to look for soil discolouration, success of vegetation return as an indicator. Disturbance checklist signed off to indicate top soil/subsoil are stockpiled separately and soil profiles appropriately reinstated following the re-instatement of works/excavations.

Achieved The Work Instruction WM 02-134 “Excavation of Liquid & Gas Pipeline Systems” ensures all excavations are re-instated to their original soil configuration.

3. To maintain native vegetation cover on the easement

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

Annual land survey to look for evidence of disturbance to vegetation on easement (apart from access tracks). Disturbance checklist (including timed photos) signed off to indicate adequate steps undertaken to facilitate regrowth. Follow-up rehabilitation work was undertaken where natural regeneration was inadequate.

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

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

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Objective Goal Measure/how ACHIEVED/NOT ACHIEVED

COMMENTS

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

Annual land survey to look for evidence of disturbance to vegetation on easement (apart from access tracks). Use of Disturbance checklist and photo points before, during & after any excavation or land disturbance activity. Vegetation trimmed rather than cleared where possible. Consideration of sensitive vegetation during vegetation trimming and / or clearing activities.

Achieved No Operational activities were conducted during the reporting period which would impact on the native vegetation

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

Use of Disturbance checklist and photo points before, during & after any excavation or land disturbance activity. In event of pipeline repair, open trenches are monitored daily and not left open for more than 72 hours.

Achieved Maintenance activities during 2004 had no impact on native fauna

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

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Objective Goal Measure/how ACHIEVED/NOT ACHIEVED

COMMENTS

3.4 To minimise disturbance of marine habitats

Only undertake non-interference maintenance activities in the marine habitat. Obtain regulatory approval prior to undertaking disturbance in marine habitat (contact should be initially made with PIRSA during the planning process). Use of Disturbance checklist and photo points before, during & after any excavation or marine disturbance activity.

Achieved No leakages or spillage was reported or recorded in any area where a marine environment exists.

4. To prevent the spread of weeds and pathogens

4.1 To ensure that weeds and pathogens are controlled at a level that is at least consistent with adjacent land

Regular patrols undertaken to look for evidence of weeds on easement and adjacent land (if weeds on easement but not adjacent land must implement control to prevent spread). Records of outbreaks found, weed control activities and photo monitoring of significant outbreaks. Vehicle wash down register. Where appropriate, closure of ROW access road.

Achieved The presence of weeds and pathogens on the easement was consistent with adjacent land. There is a programme of eradication in place on sections of the MAP. The ROW has been closed through properties affected by noxious weed.

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

5.1 To maintain current surface drainage patterns

Regular patrols and annual survey undertaken to look for evidence of erosion, abnormal vegetation growth or death. Observations also to be undertaken following significant storm events.

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

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G0 02 38

Objective Goal Measure/how ACHIEVED/NOT ACHIEVED

COMMENTS

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

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

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

Achieved While there were a number of minor hydrocarbon spills recorded at a number of the pipeline facilities during the reporting period all were quickly addressed and had no impact on the water resources in the area.

6. To avoid land or water contamination

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

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

Achieved Epic have employed Parsons Brinckerhoff to monitor a number of known areas of contamination and recommend remedial actions. All sites have been reviewed in 2004 and the recommended actions from the consultants have been implemented.

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G0 02 39

Objective Goal Measure/how ACHIEVED/NOT ACHIEVED

COMMENTS

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

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

Achieved To the best of Epic Energy’s knowledge there are no known contaminated sites that the easement passes through

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

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

Achieved All rubbish and waste material is removed from all of the pipelines facilities and the easement. This material is transported back to an approved refuse collection and disposal facility.

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G0 02 40

Objective Goal Measure/how ACHIEVED/NOT ACHIEVED

COMMENTS

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

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

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

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

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

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

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G0 02 41

Objective Goal Measure/how ACHIEVED/NOT ACHIEVED

COMMENTS

7.1 To adequately protect public safety during normal operations

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

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

7. To minimise the risk to public health and safety

7.2 To adequately protect public safety during maintenance

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

Achieved As for the comment in 7.1

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G0 02 42

Objective Goal Measure/how ACHIEVED/NOT ACHIEVED

COMMENTS

7.3 To avoid fires associated with pipeline maintenance activities

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

Achieved There was an Incident report raised on a minor fire as the result of maintenance activity in Zone 4 on the pipeline. The resultant grass fire was quickly maintained due to procedures being followed and the fire doused quickly.

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

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

Achieved No impact on pipeline integrity by third party interference. There was 4 unauthorised encroachments on the easement reported in 2004

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G0 02 43

Objective Goal Measure/how ACHIEVED/NOT ACHIEVED

COMMENTS

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

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

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

8. Minimise impact of emergency situations

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

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

Achieved No emergency situations have been recorded or managed during the reporting period

9. To minimise noise due to operations

9.1 To ensure operations comply with noise standards

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

Achieved While the operation of the pipeline compression equipment contributes to the overall background noise levels all sites meet laid down statutory requirements for noise pollution. All maintenance tasks performed during the reporting period were of a nature that did not contribute to any increased levels of noise pollution.

10. To minimise atmospheric emissions

10.1 To eliminate uncontrolled atmospheric emissions

Incident reports.

Not Achieved One uncontrolled gas emission occurred during the reporting period. A station regulator failed at Elizabeth meter station

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

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Objective Goal Measure/how ACHIEVED/NOT ACHIEVED

COMMENTS

10.2 To minimise the generation of dust.

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

Achieved No excavation work or other activities likely to generate dust have occurred during the reporting period.

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

11.1 To ensure that identified cultural sites are not disturbed

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

Achieved No activities occurred in this area in 2004.

2003 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE PIPELINE

S-1-101-AR-G-101 PAGE |145

ANNEX B - PIPELINE CATHODIC PROTECTION DATA AND ON/OFF POTENTIALS PROFILES

ANNEX B

2004 PL1 ANNUAL REPORT

DATED FEBRUARY 2005

PIPELINE CATHODIC PROTECTION DATA AND

ON/OFF POTENTIALS PROFILES

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE PIPELINE

S-1-101-AR-G002 46

Moomba to Adelaide GaslineFull Line "Off" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 1000.0Kilometres

mV

Aug 04 Feb 04

% of potential greater than –850mv in winter (95%) Length of pipe (781km)

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE PIPELINE

S-1-101-AR-G002 47

% of potential greater than –850mv in winter (100 %) Length of pipe (5.5 km)

Bonython Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 1.5 3.2 4.1 4.6 5.2 5.4

Kilometres

mV

Mar 04 Aug 04

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G002

% of potential greater than –850mv in winter (100 %) Length of pipe (14.9km)

Burra LateralFull Line "Off" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0

Kilometres

mV

Mar 04 Aug 04

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G002

% of potential greater than –850mv in winter (98.4 %) Length of pipe (87km)

% of potential greater than –850mv in winter (100 %) Length of pipe (77.8km)

Whyalla Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

Kilometres

mV

Aug 04 Mar 04

Port Pirie Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0 70.0 75.0 80.0Kilometres

mV

Aug 04 Mar 04

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G002

% of potential greater than –850mv in winter (100 %) Length of pipe (0.72km)

% of potential greater than –850mv in winter (100 %) Length of pipe (1.8km)

Hallet Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

0.00 0.72

Kilometres

mV

Mar 04 Aug 04

Peterborough Lateral Full Line "Off" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 1.8

Kilometres

mV

Mar 04 Aug 04

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G002

% of potential greater than –850mv in winter (100 %) Length of pipe (0.14km)

% of potential greater than –850mv in winter (100 %) Length of pipe (9.7km)

Quarantine Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

0.00 0.14

Kilometres

mV

Jul 04 Feb 04

Amcor Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

0.0 5.0 10.0

Kilometres

m V

Jul 04 Feb 04

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G002

% of potential greater than –850mv in winter (100 %) Length of pipe (1.1km)

Osborne LateralFull Line "On" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

Kilometres

mV

Jul 04 Feb 04

Pelican Point Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.0 1.8 1.8

Kilometres

mV

Feb 04 Jul 04

% of potential greater than –850mv in winter (100 %) Length of pipe (1.8km)

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE P IPELINE

S-1-101-AR-G002

% of potential greater than –850mv in winter (100 %) Length of pipe (1.2km)

% of potential greater than –850mv in winter (100 %) Length of pipe (1.1km)

Dry Creek Lateral Full Line Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.00 0.32 0.32 0.50 0.50 0.72 0.72 0.80 0.80 0.96 1.12 1.23

Kilometres

mV

Jul 04 Feb 04

Taperoo LateralFull Line "Off" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00

Kilometres

mV

Aug 04 Feb 04

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE PIPELINE

S-1-101-AR-G002 54

% of potential greater than –850mv in winter (93.9 %) Length of pipe (38.4km)

Angaston IC survey

4.3

7.511.2 15.4

18.2 21.1

26.6

28.8

31.4

33.9

37.3

38.4

500

600

700

800

900

1000

1100

1200

1300

1400

1500

4.3 7.5 11.2 15.4 18.2 21.1 26.6 28.8 31.4 33.9 37.3 38.4

Kilometres

mV

Dec 04 Dec 04

2004 PL1 ANNUAL REPORT – MOOMBA TO ADELAIDE PIPELINE

S-1-101-AR-G002 55

Wasleys to Torrens Island loop lineFull Line "Off" Potential Surveys

500

600

700

800

900

1000

1100

1200

1300

1400

1500

730.0 735.0 740.0 745.0 750.0 755.0 760.0 765.0 770.0 775.0

Kilometres

mV

Jul 04 Mar 04

% of potential greater than –850mv in winter (97.7 %) Length of pipe (41.4km)