1. Please read this before using presentation This presentation is based on content presented at the Drillsafe Forum held in September 2009 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. Toolbox presentation: Changes in petroleum safety regulation

3. Departmental changes 3

4. Department of Mines and Petroleum 4

5. Resources Safety 5

6. Petroleum Safety Pipelines - safety case assessment for pipeline construction and operation Operations - production facilities, exploration drilling and geothermal Legislation and policy development, technical advice, internal divisional liaison 6 Director PipelinesOperations Technical / Admin Support Admin Support Legislation and Policy Petroleum and Environment

7. What we do Primary focus - occupational safety and health Secondary focus - structural integrity (also impacts on Societal Risk and Business Continuity) 7 Societal Risk Occupational Safety and Health Structural Integrity Structural Integrity has an incidental effect Societal Risk and Business Continuity Business Continuity

8. WA petroleum legislation 8

9. 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 5 consists of consequential amendments to other legislation The consequential amendment of interest is to S4(2) of the OSHA The intention is to proclaim Parts 2, 3 and 5 of the PLARA, to do this the subsidiary legislation needs to be completed 9

10. Regulations to support To support the PLARA regulations are being drafted Petroleum Pipelines (Occupational Safety and Health) Regulations 2009 Petroleum Pipelines (Management of Safety Pipeline Operations) Regulations 2009 Petroleum Pipelines Amendment Regulations 2009 Petroleum and Geothermal Energy Resources (Occupational Safety and Health) Regulations 2009 Petroleum and Geothermal Energy Resources (Management of Safety ) Regulations 2009 To support the regulations guidelines will be produced for Developing and implementing a pipeline safety case A SMS approach to exploration drilling / production facilities A SMS approach to geothermal energy extraction 10

11. Effect of proclamation of the PLARA 11 Proclaim the PLARA parts 2, 3 and 5 Duty of care of persons in control Duty of care of manufacturers Duty of care of supplier/constructor Duty of care of employers / employees SHRs, committees and work groups Accidents and dangerous occurrences Reports on inspections / investigations Codes of practice / listed OSH laws Reviews, appeals and referrals PINs, INs, PNs, DNDNs Duty of care of operator / licensee Powers / functions of inspectors

12. 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, constructors and persons engaged in an operation, again appropriate penalties apply 12

13. Subject matter of regulations 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

14. Subject matter of regulations (continued) Petroleum and Geothermal Energy Resources (Management of Safety) 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 14

15. The 1991 schedule Currently the Schedule of Onshore Petroleum Exploration and Production Requirements 1991 applies Once the legislation is proclaimed the prescriptive safety requirements will be superseded by duty of care obligations and the regulations Most safety content and reference to standards will be moved into comprehensive guidelines and placed on the internet Some non-safety requirements will remain in the schedule Previously accepted and current safety manual and emergency response manual deemed to satisfy during transitional period 15

16. Long term solution Development of stand-alone petroleum safety legislation Advantages in having stand-alone legislation: Provides clarity and reduce complexity Best long term solution and aligns with other OSH legislation 16

17. Tentative timeframe for introduction Exposure drafts of the regulations should be completed by end September 2009 Public consultation will run end September to end October 2009 Response to comment and final drafts completed by end November 2009 Proclamation before the end of first quarter 2010 Powers and functions to delegate before the end of first quarter 2010 Transition period commences (currently 2 years) Comment sought on practical application during 2010 Consideration for amendment if required end 2010 17