Petroleum and Gas Inspectorate Issues

1. Petroleum and Gas Inspectorate Issues Stephen Matheson Chief Inspector Petroleum and Gas Presentation to CSG Forum August 2009

2. Overview Incident data Three areas of concern Safety Management Systems SMS Implementation Reporting of Incidents Incident Reporting Guideline Application of Legislation Guideline

3. Drilling – wells and more wells Significant rise in CSG wells drilled in 07/08 (400 to 600) Meterage increasing Number of drilling companies operating in Qld has risen from 14 in 2005 to over 20 in 2009 Companies new to CSG Numbers of incidents reported has risen significantly

4. Reported Incident data

5. Monthly upstream reported incidents

6. Current significant drilling related investigations • Crushing/impact incident involved a length of steel casing falling near Wandoan on 28 November 2008 • Crushing/amputation incident involving set of power tongs near Roma on 11 January 2009 • Crushing/impact incident resulted from a falling drill collar near Wallumbilla on 16 January 2009 • Crushing/impact incident involving a forklift loader arm at Fairview on the 16 May 2009 • Amputation incident involving a fold up work platform on a drill rig at Moranbah on 28 May 2009 • Lost tip of finger servicing BOP • Broken arm after use of stilsons to break out drill string on a drill rig on 31 July 2009.

7. Inspections/Investigations Findings Investigations/Audits: We uncover a lot - equipment/systems and implementation issues Issuing formal validation notices and directions Inspections In a 15 minute or 1 hr inspection we are finding a lot of non compliances Every inspection finds multiple issues If we can simply find these why aren’t they being picked up? Why are we seeming the same things time and time again?

8. Areas of concern 1 Safety Management System itself SMPs generally good Risk assessment/Hazard Identification poor and not integrated Lack of controls and use of hierarchy of controls (design it out) Not fit for purpose

11. End result two amputated toes

12. Not fit for purpose and half engaged lifting nubbin

13. Not fit for purpose stilsons

14. Areas of concern 2 SMS Implementation General lack of training and experience within drill crews Need for more direct supervision by competent persons Lack of SOPs and over emphasis on JSAs Behaviour/culture

15. Areas of concern 3 Incident reporting All prescribed incidents must be reported Non reporting/late reporting or down playing of incidents(to reduce down time?) will not be tolerated Guidelines developed Implementation of investigation findings Findings not implemented or delays in implementing Legislation to be amended to formally require Inspectorate to follow up Need for better analysis and use of data

16. Incident Reporting Guideline - 1 Outlines prescribed incident reporting requirements Provides contact information (24/7) Southern 0419 888575 Central 0418 888575 Northern 0409 896861 gassafe@dme.qld.gov.au Identifies key information needed by Inspectorate at first report of significant incidents – critical you report quickly and with detail

17. Incident Reporting Guideline - 2 Clarifies “medical treatment” – follow APPEA safety guidelines “High Potential” - incident which could have caused a serious adverse effect on safety and health of persons or damage to property, if as part of operations or activities at the site a person could have been in the vicinity at the time or property damage could have occurred How is a fire in a hut or a pressure release spraying debris not a high potential???? These near misses are free lessons – use them

18. Application of P&G Act Guideline - 1 Number of operators confused as to application of WH&S Act and P&G Act What is operating plant and what is not? Clarification to be made by: changes to definitions of operating plant in P&G Act consist language in related Acts (ESA, DGSM etc) achieved via Geothermal Energy Bill http://www.dme.qld.gov.au/Energy/geothermal_energy_bill_2009_consultation_paper.cfm submissions close on 4 September 2009  make comment by that process and to me

19. Application of P&G Act Guideline - 2 Operating Plant definition to include: facilities used for explore for, produce or process petroleum pipelines geophysical surveys the tenure itself but only to extent of operating plant in it Operating Plant definition to exclude: Camps Vehicles that are not part of operating plant Land access clearing Workshops not directly at a operating plant Water gathering/storage/use/processing including osmosis plants Environmental activities

20. Application of P&G Act Guideline - 3 Construction of operating plant - WH&S Act Commissioned /operating of operating plant - P&G Act Organisation Safety Management Plan can cover both Draft guideline on website soon Will cover geothermal/GHG activities/legislation as well Revised legislation in place February 2010

21. P&G Inspectorate Gas Priorities More visible, more active Structured inspections, less audits Investigation follow up/ close out What to see issues quickly and thoroughly addressed across the organisation (not a band aid!) Guidelines on website Update SafeOP Revise legislation – minor amendments Work with Industry on any initiatives

22. What we want Less incidents Reduced severity of incidents NO SERIOUS INCIDENTS! A safe work place Its up to all of you Its your industry, your employees

23. More Information Websitehttp://www.dme.qld.gov.au/mines/petroleum___gas_safety.cfm Application form Links to legislation Drilling Information Safety Alerts, Information sheets Chief Inspector, Petroleum and Gas, Stephen Matheson Ph 3237 1389 stephen.matheson@deedi.qld.gov.au Enquiries Email: gassafe@dme.qld.gov.au Regional Inspector, Southern Region - Ray Watt Ph 3238 83784 raymond.watt@deedi.qld.gov.au Regional Inspector, Central Region - John Wright Ph 4938 4682 john.wright@deedi.qld.gov.au Regional Inspector, Northern Region - John Wright Ph 4760 7411 tony.o’connor@deedi.qld.gov.au