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

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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 Systems2. 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

Notifications / Incidents 2006 -2009 - P&G

8

27

6

42

80

62

20

30

10

20

30

40

50

60

70

80

90

2005 - 2006 2006 - 2007 2007 - 2008 2008 - 2009

Nu

mb

ers

#

Drilling Non - Drilling Trend Line

Monthly upstream reported incidents

Petroleum Exploration and Production Reported Incidents

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101214161820

Jul-

08

Au

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8

Se

p-0

8

Oct

-08

No

v-0

8

De

c-0

8

Jan

-09

Fe

b-0

9

Ma

r-0

9

Ap

r-0

9

Ma

y-0

9

Jun

-09

Jul-

09

Month

Re

po

rte

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cid

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ts

Current significant drilling related investigations

1. Crushing/impact incident involved a length of steel casing falling near Wandoan on 28 November 2008

2. Crushing/amputation incident involving set of power tongs near Roma on 11 January 2009

3. Crushing/impact incident resulted from a falling drill collar near Wallumbilla on 16 January 2009

4. Crushing/impact incident involving a forklift loader arm at Fairview on the 16 May 2009

5. Amputation incident involving a fold up work platform on a drill rig at Moranbah on 28 May 2009

6. 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 0419 888575Central 0418 888575Northern 0409 896861 [email protected]

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

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

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:CampsVehicles that are not part of operating plant Land access clearingWorkshops not directly at a operating plantWater 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 http://www.dme.qld.gov.au/mines/petroleum___gas_safety.cfmApplication formLinks to legislationDrilling InformationSafety Alerts, Information sheets

Chief Inspector, Petroleum and Gas, Stephen Matheson Ph 3237 1389 [email protected] Email: [email protected]

Regional Inspector, Southern Region - Ray Watt Ph 3238 83784 [email protected]

Regional Inspector, Central Region - John Wright Ph 4938 4682 [email protected]

Regional Inspector, Northern Region - John Wright Ph 4760 7411 tony.o’[email protected]