Please read this before using presentation

1. Please read this before using presentation • This presentation is based on content presented at the Industry Forum held in February 2010 • It is made available for non-commercial use (e.g. toolbox meetings) subject to the condition that the PowerPoint file is not altered without permission from Resources Safety • Supporting resources, such as brochures and posters, are available from Resources Safety • For resources, information or clarification, please contact: RSDComms@dmp.wa.gov.au or visit www.dmp.wa.gov.au/ResourcesSafety

2. Changes in Petroleum Safety Legislation Industry Forum - February 2010

3. Department of Mines and Petroleum Director General Corporate Support Resources Safety Mineral Titles Geological Survey Petroleum & Environment Strategic Policy

4. Resources Safety Executive Director Mines Safety Petroleum Safety Health Management Business Development Dangerous Goods Safety Business Services

5. Petroleum Safety Legislation and Policy Petroleum and Environment Director Admin Support Pipelines Operations Technical / Admin Support • Pipelines - safety case assessment for pipeline construction and operation • Operations - production facilities, exploration drilling and geothermal • Legislation / policy development, technical advice, internal / external liaison

6. What we do Societal Risk Occupational Safety and Health Structural Integrity SI has an incidental effect SR and BC Business Continuity • Primary focus - occupational safety and health • Secondary focus - structural integrity (also impacts on SR and BC)

7. WA Petroleum Legislation Administered by the Department of Mines and Petroleum Petroleum Pipelines Act 1969 (PPA) Petroleum Submerged Lands Act 1982 (PSLA) Petroleum and Geothermal Energy Resources Act 1967 (PAGERA) NOPSA defined as the safety authority Pipeline licences issued Production licences issued - 1991 / 1993 schedules apply Petroleum Legislation Amendment and Repeal Act 2005 (PLARA) General requirements for OSH as condition Applies to waters in the adjacent areas Part 1 Preliminary Safety Case applied by endorsed direction Does not extend above the MLWM Part 2 PAGERA Part 3 PPA Part 4 PSLA proclaimed Part 5 Consequentials

8. Proclamation of the PLARA • Parts 2 and 3 of the PLARA are attached to the PAGERA and PPA respectively but are provisions that have not come into operation • Part 4 was proclaimed in 2005 to allow NOPSA to regulate safety in adjacent areas offshore under the PSLA • Part 1 is already in operation, Part 5 consists of consequential amendments to other legislation • The consequential amendment of interest is to S4(2) of the OSHA • Excludes the OSHA from applying to a pipeline or petroleum operation • The intention is to proclaim Parts 2, 3 and 5 of the PLARA, to do this the subsidiary legislation needs to be completed

9. Regulations to support • To support the PLARA regulations have been drafted • Petroleum Pipelines (Occupational Safety and Health) Regulations 2010 • Petroleum Pipelines (Management of Safety of Pipeline Operations) • Regulations 2010 • Petroleum Pipelines Amendment Regulations 2010 • Petroleum and Geothermal Energy Resources (Occupational Safety and Health) Regulations 2010 • Petroleum and Geothermal Energy Resources (Management of Safety) Regulations 2010 • To support the regulations guidelines will be produced for • Developing, implementing and maintaining a pipeline safety case • A SMS approach to exploration drilling / production facilities • A SMS approach to geothermal energy installations

10. Effect of proclamation of the PLARA Duty of care of operator / licensee Duty of care of persons in control SHRs, committees and work groups Duty of care of employers / employees Accidents and dangerous occurrences Proclaim the PLARA parts 2, 3 and 5 Duty of care of supplier/constructor Powers / functions of inspectors Duty of care of manufacturers Reports on inspections / investigations Codes of practice / listed OSH laws Reviews, appeals and referrals PINs, INs, PNs, DNDNs

11. General duty of care • Duties of care relating to occupational safety and health can be found in the PLARA at Part 2 and Part 3, Schedule 1, Division 2, Subdivision 1, S7 - S13 • The overall general duty of care provisions are quite wide ranging • They apply to the operator, persons in control and employers, the penalties for dereliction are significant • In addition, specific duty of care requirements are placed on manufacturers, suppliers, erectors, installers and persons engaged in an operation, again appropriate penalties apply

12. Subject matter of regulations • Pipeline / Petroleum and Geothermal Energy Resources (OSH) Regulations • Reviewing authority • Exemption orders • Elections of safety and health representatives • Training of safety and health representatives • Avoiding fatigue • Possession or control of drugs or intoxicants • Persons must leave when required • Prohibition on use of, and limitation on exposure to, certain hazardous substances • Exposure to noise • Taking of samples for testing • Form of certain notices • Service of Schedule 1 notices (INs, PNs, DNDNs etc)

13. Subject matter of regulations • Petroleum Pipeline (MOSPO) Regulations • Duties as to safety cases • Contents of safety cases • General provisions (description, FSA, SMS) • Safety measures • Emergencies • Record keeping • Submission and acceptance of safety cases • Revision of safety cases • Withdrawal of acceptance of a safety case • Validation • Accidents and dangerous occurrences • Miscellaneous requirements • Transitional provisions

14. Dial before you dig…..

15. Subject matter of regulations • Petroleum and Geothermal Energy Resources (MOS) Regulations • Duties as to safety management systems • Contents of safety management systems • General provisions • Safety measures • Emergencies • Record keeping • Submission and acceptance of safety management systems • Revision of safety managements systems • Withdrawal of acceptance of a safety management system • Validation • Accidents and dangerous occurrences • Transitional provisions

16. Subject matter of regulations • Petroleum Pipelines Amendment Regulations • Amends the existing Petroleum Pipeline Regulations 1970 • Deletes • Regulations 2, 4BA, 4E - 17, 19, 24, 25 and 27 • These are primarily safety related and covered in new regulations • Retains • Licence fees, prescribed forms (4, 4B, 4C, 4D, S3, S4) • Inspectors powers during construction / modification (21, 22) • Plan of operational procedure for commencement (26) • Amends and retains • Pipeline routeing surveys and signposting (18, 20, S2) • Licensee duty - pipeline failure (23) • Introduces transitional provisions for bringing proceedings (24)

17. The 1991 and 1993 schedules • Currently the Schedule of Onshore Petroleum Exploration and Production Requirements 1991 and the Schedule of General Requirements for OSH 1993 apply to all petroleum operations • Once the legislation is proclaimed the highly prescriptive safety requirements in the schedules will be superseded by duty of care obligations and the new regulations • The new legislative arrangement will be supported by comprehensive guidance material placed on the internet • A number non-safety requirements will remain in the schedules • Previously accepted and current safety manual and emergency response manual deemed to satisfy until review anniversary

18. Will the national reform process impact on this legislative change • The Productivity Commission report into the regulatory burden on the upstream petroleum (oil and gas) sector • Certain recommendations call for the: • establishment of a new national offshore petroleum regulator • option of conferring State/Territory powers in adjacent areas including islands • option of conferral of powers relating to onshore inter-jurisdictional pipelines • These specific recommendations are not supported by the State Government • Findings and recommendations still to be fully endorsed by the Ministerial Council on Mineral and Petroleum Resources and agreed by the Council of Australian Governments • The safety aspects of the WA proposed legislative change generally align with current Federal requirements • As the final outcome has yet to be decided the actual impact is unclear

19. Will the national reform process impact on this legislative change • The harmonisation of OSH, introduction of national model legislation • The WRMC have endorsed an agreed model Act • While the State Government agrees with the principle, certain aspects are not supported: • The introduction of a conciliation concept for resolution of issues • Safety and Health Representatives having the power to stop work • Reverse onus of proof for discrimination issues • The proposed level of penalties for non compliance • Right of entry of union officials on OSH matters • As the final outcome has yet to be decided the actual impact is unclear

20. Long term solution • The development of stand alone petroleum safety legislation has been approved • There are a number of advantages in having stand alone legislation • It will provide clarity and reduce complexity • It is the best long term solution as it separates safety regulation from management of resource

21. Tentative timeframe for introduction • Exposure drafts of the regulations are now out for consultation • Public consultation period will end mid February • Response to comment and final drafts completed by end February • Proclamation before end March • Powers and functions to delegate in the 2Q • Transition period commences on proclamation • Comment sought on practical application during 2010 • Consideration for amendment if required end 2010

22. End of presentation Thanks for listening so attentively……… and now, any questions?