Regulatory Issues and Safety Challenges

Presentation to CSG Safety Forum Stephen Matheson Chief Inspector

January 2009

Overview

Inspectorate update Statutory positions and their obligations Other obligations eg SMP availability Incident Reporting Investigations – follow up and implementation Drilling issues

Wells and more wellsTraining CompetenciesStilsons Safety Alert

Future Issues

Petroleum and Gas Inspectorate

New Chief Inspector New Inspectors in Cairns, Mackay and

Woolloongabba New Regional Inspector in Woolloongabba Need to advertise Deputy Chief and Principal

Inspector position Brisbane Look to get additional Inspector positions to deal

with expansion

Petroleum and Gas Inspectorate

Head OfficeChief Inspector, 2 Deputy Chiefs & Principal Inspector A&IManager Licensing & Systems, Executive Assistant

Southern (Woolloongabba)Regional Inspector - 4 Senior Inspectors, OP Support Officer

CentralRockhampton - Regional Inspector, Senior Inspector, OP Support OfficerMackay - Senior Inspector

NorthernTownsville - Regional Inspector, Senior Inspector, OP Support OfficerCairns - Inspector

5 Industries and the communitynever a dull moment

Statutory Obligations - ESM

Executive Safety Manager (s688)Appoints operatorEnsures operator makes SMPApproves planEnsures plan is implementedGives annual safety report

Statutory Obligations - Operator

Operator(s673)Must be identified in SMP (s675)Entity or individualMakes and revises SMP(s674, s678)Ensures compliance with plan (s677)Appoints SSM (s692)

Statutory Obligations - SSM

Site Safety Manager (s692)InductionEnsures people comply with SOPs and emergency response proceduresEnsures people follow SOPs and perform functions safelyFirst aid & other equipment available on siteStaff trained in first aid and emergency procedures

Other Obligations

Notice to Chief Inspector of new plant commissioning/operating (s 673A)20 Business days

Ensure SMP are accessible (s676)At the plant (where practical)

Incident reporting

Obligation to report prescribed incidents (see s706 of P&G Act, S11 and schedule 2 of P&G Reg)

Lies with operator of operating plant to ensure incident is reported as required

Contractors/tenure operator systems break down P&G Inspectorate 24/7 emergency contact numbers

0419888575 (Southern) 0418 888575 (Central) Written reports Gassafe@dme.qld.gov.au

Incident investigation/follow up

Opportunity for improvement S11 of P&G Reg requires underlying cause to be

identified S675 requires SMP to have mechanisms to

investigate record and review incidents S675 SMP must have process for managing

change, mechanisms for review SMP. S678 SMP requires plan to be remade as a result

of event S699 acceptable level of risk S701 when acceptable level of risk is achieved

Incident investigation/follow upsummary

Conduct quality and thorough investigations Learn from incidents especially high potentials Ensure findings are implemented promptly Temporary or delayed fixes are not acceptable

Drilling – wells and more wells

Significant rise in CSG wells drilled in 07/08 (400 to 600)

Conventional wells decreased (gone back to 05/06 levels)

Meterage increasing Number of drilling companies operating in Qld

has risen from 14 in 2005 to over 20 in 2009 LNG will have dramatic impact on all these

numbers

Petroleum wells

Drilling Competencies

As of 1 January 2009 Competency Standard for drill rig workers is law (s54AA of P&G Reg)

Minimum standard only – s54A (P&G Reg) and s675 (P&G Act) skills assessment, training and supervision requirements apply

Different ways of demonstrating competencies Mapping with assistant of appropriate assessor

required Audits and inspections will review compliance

Drilling – Stilsons

Stilsons are hand tools designed to be used as hand tools.

No evidence that manufacturers endorse their products being cut, welded or attached to a device.

Any modification to a tool has to be reviewed, rigorously engineered and assessed.

Risk analysis must be done to ensure safety is not compromised.

Inspectors will want to see documentation

Future issues

More analysis of incident data New Inspectorate plans to be more visible Undertaking unannounced inspections

(implementation minor audits) of plant especially drill rigs for compliance with SMP

Mandated Rig Inspections (annual?) Requiring third party audits