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

Overview  Incident data  Three areas of concern 1.Safety Management Systems 2.SMS Implementation 3.Reporting of Incidents  Incident Reporting Guideline  Application of Legislation Guideline

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

Reported Incident data

Monthly upstream reported incidents

Current significant drilling related investigations 1.Crushing/impact incident involved a length of steel casing falling near Wandoan on 28 November Crushing/amputation incident involving set of power tongs near Roma on 11 January Crushing/impact incident resulted from a falling drill collar near Wallumbilla on 16 January Crushing/impact incident involving a forklift loader arm at Fairview on the 16 May Amputation incident involving a fold up work platform on a drill rig at Moranbah on 28 May Lost tip of finger servicing BOP 7.Broken arm after use of stilsons to break out drill string on a drill rig on 31 July 2009.

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?

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

End result two amputated toes

Not fit for purpose and half engaged lifting nubbin

Not fit for purpose stilsons

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

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

Incident Reporting Guideline - 1  Outlines prescribed incident reporting requirements  Provides contact information (24/7)  Southern  Central  Northern   Identifies key information needed by Inspectorate at first report of significant incidents – critical you report quickly and with detail

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

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  submissions close on 4 September 2009  make comment by that process and to me

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

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

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

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

More Information  Website  Application form  Links to legislation  Drilling Information  Safety Alerts, Information sheets  Chief Inspector, Petroleum and Gas, Stephen Matheson  Ph  Enquiries  Regional Inspector, Southern Region - Ray Watt  Ph  Regional Inspector, Central Region - John Wright  Ph  Regional Inspector, Northern Region - John Wright  Ph