FITNESS FOR PURPOSE REPORT Pipeline Licence No 1 MOOMBA TO ADELAIDE GAS PIPELINE SYSTEM Document No S-1-101-FFP-G-001 February 2008 EXECUTIVE SUMMARY The Moomba to Adelaide Gas Pipeline (MAP) is owned, operated and maintained by Epic Energy. The pipeline is licensed under Pipeline Licence 1 (PL 1) and was designed to the American Standard Code for Pressure Piping-Gas Transmission & Distribution Piping Systems ASA B31.8 – 1968. The pipeline was constructed in 1967/68, commissioned in 1969 to supply natural gas from the Cooper Basin to South Australia. The Pipeline is 781 km long and 559 mm in diameter, constructed of welded steel, wrapped in a protective coating and is buried to depths in excess of 800mm. The pipeline is designed to operate at a Maximum Allowable Operating Pressure (MAOP) of 7.322MPa. Epic Energy operates and controls the MAPS from the Transportation Services Centre (TSCC) in Melbourne, Victoria using the Epic Energy Telvent SCADA System. The pipeline can also be monitored and controlled by a back up system located at Epic Energy’s emergency control centre at Dry Creek, South Australia. In accordance with the South Australian Petroleum Act 2000 and the Petroleum Regulations Part 6 Division 4 this Fitness for Purpose Report assesses the risks imposed by the pipeline on: • The environment • Public health and safety • Security of production of supply of natural gas This report specifically addresses: • The physical condition of the pipeline • The effectiveness of management systems for the operation and maintenance of the facility • The potential for the environment to effect the safe and effective operation of the pipeline • The potential for serious incidents to occur along the pipeline including the potential for hazardous materials or substances stored at or near the pipeline to affect the safe or effective operation of the pipeline • The adequacy of and reliability of the utilities in order to enable the effective operation of the pipeline The Fitness for Purpose Report is completed every five years with the last report submitted in February 2003 for the period 1998 to 2002. Based on the following assessments of the pipeline: • Internal and external defect assessment using inline inspection tools • Inspection processes of equipment • Coating defect survey and dig up inspection programmes • A risk review performed in accordance with the AS2885 in 2007 • Audits & improvements of the management systems governing the manner in which the pipeline is operated and maintained • Corrosion and protection system surveys and other relevant information • Maintenance records The Moomba to Adelaide Pipeline is assessed, as at February 2008, as being in sound condition and is considered “Fit for Purpose” for the current and future use, for the next five years. TABLE OF CONTENTS EXECUTIVE SUMMARY..................................................................................................2 1 OVERVIEW OF FACILITIES ..........................................................................5 2 MANAGEMENT SYSTEMS............................................................................8 3 RISK MANAGEMENT...................................................................................12 4 PHYSICAL ASSESSMENT OF FACILITIES................................................17 5 EFFECTIVENESS OF MANAGEMENT SYSTEMS......................................25 6 ASSUMPTIONS AND SENSITIVITIES.........................................................27 7 IMPACT OF THE ENVIRONMENT ON THE PIPELINE...............................27 8 POTENTIAL FOR SERIOUS INCIDENTS....................................................29 9 PIPELINE UTILITIES....................................................................................29 10 FITNESS FOR PURPOSE............................................................................29 11 CONCLUSIONS............................................................................................31 12 APPENDICES...............................................................................................31 LIST OF ABBREVIATIONS ALARP - As Low As Reasonably Practicable AS2885 - Australian Standard 2885 – Pipelines- Gas and Liquid Petroleum ASME - American Society of Mechanical Engineers CAR - Corrective Action Request CFS - Country Fire Service COP - Code of Environmental Practice CMMS - Computerised Maintenance Management System COPS - Closed Order Potential Survey CP - Cathodic Protection DCVG - Direct Current Voltage Gradient EMS - Environmental Management System ERC - Emergency Response Centre ERF - Estimated Repair Factor ERP – Emergency Response Plan FBE - Fusion Bonded Epoxy GPS - Geographical Positioning System GIS - Graphical Information System HAZOP - Hazard Operability ILI - Inline Inspection IMP - Integrity Management Plan KP - Kilometre Point KPI - Key Performance Indicator LMS - Land Management System LPG - Liquid Petroleum Gas MAOP - Maximum Allowable Operating Pressure MAP - Moomba to Adelaide Pipeline MAPS - Moomba to Adelaide Pipeline System MFS - Metropolitan Fire Service MLV -Mainline Valve MIC - Microbiologically Influenced Corrosion NB - Nominal Bore NDT - Non Destructive Testing NGL - Natural Gas Liquid P&ID - Piping and Instrumentation Drawing PIRSA - Primary Industries and Resources of South Australia PS - Pump Station PSV - Pressure Safety Valve RBI - Risked Based Inspection ROC - Remote Operation Controller ROW - Right of Way SCADA - Supervisory Control and Data Acquisition SCC - Stress Corrosion Cracking SEO - Statement of Environmental Objectives SES - State Emergency Service SMS - Safety Management System SRB - Sulphate Reducing Bacteria SWER - Single Wire Earth Return TRU - Transformer Rectifier Unit TSCC - Transportation Services Control Centre TI - Torrens Island UHF - Ultra High Frequency VHF - Very High Frequency 1 OVERVIEW OF FACILITIES The design parameters and description of the facilities for the Moomba to Adelaide Pipeline are summarised in table 1 below. A detailed description of facilities is given in Appendix 1. Table 1 – Moomba to Adelaide Gas Pipeline Technical Data Date Constructed 1967/68 Date Commissioned 1969 Length, km 781 Diameter (OD), mm 559 Fluid Natural Gas Wall Thickness, mm: -Normal 7.92 -Special Crossings (eg: rivers, 9.50 roads, railways) - MLV 9.50 Pipe Grade API 5L X52 MAOP, kPa - North KP 731 7322 KPa - South KP 731 to TI Voluntary reduction of 6100 KPa Coating Plicoflex Tape Nominal 750 mm Depth of cover 1200 mm at road, rail and creek crossings Main Line Valves Cameron Ball Valves ( 30 in total) Actuators ( Remote activation) Shafer gas over oil valve actuators (13 in total) Actuators ( Local activation) 17 Manual gear type operators Four operating compressor stations are installed on the mainline. Each site has two gas turbine powered Mainline Compressor and centrifugal compressor packages. During 2006 three of scraper stations the original compressor stations (CS2, 5 and 7) were isolated from the pipeline and mothballed. One reciprocating engine & compressor package Loop Line Compressor Stations installed at Wasleys One reciprocating compressor units installed on the Lateral Compressor Stations lateral pipelines located at Whyte Yarcowie Meter Stations 31 Impressed current cathodic protection system, 116 Cathodic Protection cathodic protection units installed. Digital microwave link from Moomba to Adelaide with SCADA system VHF radio coverage for voice communication Table 2 summarises the technical aspects of laterals and looping systems on the mainline pipeline system: Table 2 – Laterals and Looping on Mainline (Refer to key below) Item A B C D E F G H I Date Constructed 2000 1986 1972 1975-1976 1974 1984 1969 2000 2001 Date Commissioned 2000 1986 1972 1976 1974 1984 1969 2000 2002 Length (Kms) CS1 5.2 km , CS2 River – 0.855 Km 10 km, CS3 13.3 42 1.9 77.8 15 5.5 38.7 , Land – 1.007 114.3 km, CS 4 6 km Km ( Total 34.4 km) External Diameter (mm) 600 508 88.9 168.3 88.9 219.1 219 356 219 Fluid Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Wall Thickness (mm) Loops 1 to 3 – 7.14, Loop 4 – 9.0 4.78 4.37 4.78 4.77 4.78 7.1 4.00 & 4.78 8.74 Pipe Grade API 5L X65 API 5L X60 ASTM A53 Gr B ASTM A53 Gr B ASTM A53 Gr B API 5L X42 API 5L X42 API 5L X52 API 5L X42 MAOP ( Kpa) Loops 1 to 3 7322 7322 690 8240 7322 7322 7322 9600 9930 , Loop 4 8740 Coating River – 400 micron, FBE plus FBE FBE Armathene Pilcoflex PVC Yellow Jacket FBE Pilcoflex PVC Yellow jacket powercrete, land – 400 micron Main Line Valves 6 3 1 1 Actuators 4 (Remote activation) Actuators Two manual (Local activation) gear type actuators Compressor stations 1 (Wasley) 1 ( Whyte Yarcowie) Meter Stations 5 1 1 1 1 3 1 1 Key: A – Main pipeline loop sections E- Burra Lateral B – Wasleys to Adelaide Loop Line F – Mintaro Lateral C - Peterborough Lateral G - Angaston Lateral D - Port Pirie Lateral H- Pelican Point Lateral I – Amcor lateral Item J K L M N O P Q R S Date Constructed 1998 1970-71 1969 1988-1989 1988-1989 1972 1988-1989 2001 1972 2001 Date Commissioned 1998 1971 1969 1989 1989 1972 1989 2002 1972 2001 Length (Kms) River – 0.852 , Land 1- 0.35 1.3 1.2 5.5 87.8 1.6 11.5 0.14 0.74 1.31, Land 2 – 0.188 External Diameter River – 273.1 (mm) , Land 1- 323.9 323.9 114.3 219.1 114.3 114.3 219 89 219 273.1, Land 2 – 219.1 Fluid Natural Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Natural Gas Gas Wall Thickness (mm) 4.1 to KP River – 6.4 , 5.43, 4.8 KP Land 1- 9.2, 9.53 9.53 4.3 4.78 4.3 8.2 4.78 8.2 5.43 to Port Land 2 – 4.0 Bonython Pipe Grade ASTM A53 Gr ASTM A53 API 5L API 5L X42 API 5L X42 API 5L X42 API 5L X42 API 5L X52 API 5L X52 API 5L X42 B Gr B X42 MAOP (Kpa) 10000 2067 7322 7322 10130 1379 10130 7322 1379 7322 Coating River FBE Double wrap Polyken 2 concrete coal tar layer tape 25 Yellow Polyken 2 Polyken 2 Yellow Yellow coated, Land epoxy Armathene mm concrete Armahene Jacket layer tape layer tape jacket jacket Yellow concrete coating at Jacket coated crossings Main Line Valves 4 1 1 Actuators (Remote activation) Actuators (Local activation) Compressor stations Meter Stations 1 2 1 1 3 1 1 1 Key: J – Osborne Lateral N- Whyalla Lateral K- Dry Creek Lateral O – Nurioopta Lateral L – Taperoo Lateral P- Whyalla Lateral Loop M - Port Bonython Lateral Q- Quarantine Lateral R - Tarac Lateral S – Hallett Lateral 2 MANAGEMENT SYSTEMS 2.1 SAFETY MANAGEMENT SYSTEMS Epic Energy demonstrates effective management of health and safety risks through the development and implementation of Safe Operational Procedures and Work Instructions. Epic Energy’s Health and Safety Policy is shown in Appendix 2. The Safety Management System (SMS) developed and implemented at Epic Energy provides all Epic Energy personnel with a framework for the Management of health and safety related risks on facilities operated by Epic Energy, including the Moomba to Adelaide Pipeline (MAP) System. The Safety Management System provides guidance to personnel at all levels of the organisation, to ensure that all activities on site are undertaken safely. It is an integral part of the overall management system at Epic Energy, designed to complement other systems in order to facilitate the management of safety and risk at each facility. The Safety Management System also provides a means for review of individual performance and a mechanism for continuous improvement of operational performance. The Safety Management System is periodically reviewed and updated as a result of operational, personnel, legislative and/ or management changes. A revised Safety and Operating Plan was issued in March 2007. Epic Energy also audit and monitor compliance with the safety management system at regular intervals. 2.2 ENVIRONMENTAL MANAGEMENT SYSTEMS The definition of environment is all encompassing and includes the air, water, land, natural resources, flora, fauna and social, heritage and economic aspects, so the area of expected responsibility, behavior and compliance with laws and regulations is quite diverse and is always changing as business and community knowledge and expectations develop. Epic’s Environmental Management System (EMS), underpins, facilitates and enhances the company’s environmental programmes. Epic's EMS consists of a number of levels of documentation (including plans and procedures) that together form the framework that is the tool for the management of the environment Epic works in. The EMS is based on Australian Standard/New Zealand Standard ISO14001:1996. In short, the EMS should be viewed as tool to manage environmental responsibilities, issues and the risks associated with Epic's operational activities such as: • Pipeline construction (including route selection, design, land access and construction activities) • Pipeline operations • Operation of ancillary facilities Currently Epic’s EMS is being refreshed and the following key aspects are being reviewed: • Planning for continuous improvement • Implementation and operation • Checking and corrective action • Performance Review Epic Energy has a corporate culture which stresses environmental, health and safety excellence and makes this the responsibility of every employee and contractor The South Australian Petroleum Act 2000 and Regulations require that all regulated activities carried out under the Act must be covered by an approved Statement of Environmental Objectives (SEO) and an Environmental Impact Report (EIR). In March 2003 an Environmental Impact Report (EIR) and a draft SEO were prepared to meet the regulatory requirements for the operation of the pipeline. The EIR provided: • A description of the pipeline and facilities • Described the specific features of the environment that can reasonably be expected to be affected by pipeline operational activities • Proposes measures to mitigate potential environmental impacts and consequences • Summarises stakeholder consultation • Identified potential environmental impacts and consequences The SEO was developed in conjunction with the EIR to outline the environmental objectives that Epic Energy is required to achieve and the criteria upon which the objectives are assessed. The objectives stated in the SEO were: • To minimise the environmental damage from the activities involved in the construction or operation of transmission pipelines in transporting hydrocarbon products. • To establish appropriate consultative processes involving people directly affected by regulated activities and the public generally • To promote adherence to AS2885 as a primary means of achieving public, environmental and safety objectives • To protect the public from risks inherent in regulated activities. Both the EIR and SEO have been approved. All operational activities on the MAPS are conducted in accordance with the SEO. Epic Energy’s Environmental Policy is provided in Appendix 3. 2.3 LANDOWNER LIAISON An integral part of Epic Energy’s Environmental Management System and to ensure compliance is landowner liaison. There are a total of 643 landowners crossed by the Moomba to Adelaide Pipeline System. A property owner contact scheme is operated where each owner or occupier along the MAPS pipeline is visited annually and in addition contacted at least twice annually by mail. Other contacts, made by Field Maintenance Officers and Superintendents during the course of daily business, are recorded in the Land Management System (LMS). Land Management is supported by dedicated LMS software which is linked to a GIS system. All property details and notes relating to discussions or issues with the property owners are recorded in the LMS. All property owners are provided with pipeline safety awareness information brochures, which contain the "Dial before You Dig" contact phone number and strongly reinforce safe working practices near high pressure pipelines. Public pipeline Safety Awareness Presentations for the MAPS are held throughout the year. These presentations are provided to local Councils, utilities, contractors and emergency service providers. The focus of these presentations are on the specific nature and characteristics of the products carried by the MAPS, the route of the pipeline, basic information about the pipeline and its monitoring, control and emergency procedures and what notifications are required to be adhered to when working in the vicinity of the pipeline easement. 2.4 EMERGENCY RESPONSE MANAGEMENT Epic Energy maintains an emergency response capability designed to ensure that Epic Energy: • minimises or eliminates any danger or risk to individuals, • minimises or eliminate any risk to the business, and • ensure that the pipeline system is returned efficiently to a safe, operational state, with minimum customer and environmental impact. 2.4.1 EMERGENCY RESPONSE To ensure that the pipeline system is returned efficiently to a safe, operational state with minimum customer and environmental impact Epic Energy maintain a comprehensive team structure, equipment and services, that is available and tested regularly to fine tune it’s responsiveness to emergency events. To enable this, the Emergency Response Manual and the mapped business process of responding to breakdown and emergency are utilised. The Emergency response manual is reviewed and audited regularly with the last review and updated version released in November 2006 The Emergency Response Plans provide an Emergency Management Overview detailing the Epic Response Notification and the Emergency Management Team supplemented by the State response recovery plans. Epic Energy's Emergency Response process is based on an Incident Command System that work towards the establishment and maintenance of a uniform, fully integrated, well coordinated, response effort. Its aim is to move the response from a reactive to a proactive mode of operation as quickly and efficiently as possible. By addressing the needs of an emergency as a project, the techniques and benefits of project management are utilised in achieving this aim. Epic review and test its preparedness to respond to an emergency as follows: • Two exercises will be conducted annually on pipelines including those other than PL1. • A full emergency exercise will be conducted once every two years on PL1 exclusively. • Routine inspection/testing of pipeline emergency response equipment 2.4.2 EMERGENCY RESPONSE DRILLS Emergency response procedures, equipment and materials are maintained to allow a prompt and effective response to any emergency situation, which may develop on the MAPS. The procedures are regularly tested to provide training for involved personnel and as a check that the response plans and procedures ensure an effective response. The following emergency response exercises have been conducted on the MAP over the past five years: