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Elly’s Mac:Santos_AnnPipeRep.doc 1 Santos Ltd ABN 80 007 550 923 ANNUAL ENVIRONMENT REPORT FOR SA COOPER BASIN OPERATIONS PART 2: FLOWLINES, PIPELINES AND TRUNKLINES 1 JULY 1999 — 30 JUNE 2000

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Elly's Mac:Santos_AnnPipeRep.doc 1

Santos LtdABN 80 007 550 923

ANNUAL ENVIRONMENT REPORT

FOR

SA COOPER BASIN OPERATIONS

PART 2: FLOWLINES, PIPELINES

AND TRUNKLINES

1 JULY 1999 Ð 30 JUNE 2000

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Table of Contents

IntroductionÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ 4

Section 1: Oil and Gas Pipeline, Trunkline or Flowline ConstructionActivitiesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ... 4

1.1 Summary of ActivitiesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ. 41.2 ScoutingÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ. 41.3 Risk AssessmentÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ... 51.4 Non-conformances detected against SABU EMS and Environmental

ObjectivesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ. 51.4.1 Audit of recently constructed flowlines in PELs 5 and 6ÉÉÉÉÉÉÉÉÉ.. 51.4.2 Second Environmental Audit: Cuttapirrie to Moorari PipelineÉÉÉÉÉÉ..5

1.5 Major Environmental Incidents and Spill SiteAnalysisÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ. 6

1.6 Statement for Design and Construction in Accordance with RecognisedStandardsÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ.. 6

1.6.1 Gas PipelinesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ 61.6.2 Oil PipelinesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ.. 6

Section 2: Pipeline, Trunkline and Flowline Operations ÉÉÉÉÉÉÉÉÉ. 6

2.1 Summary of ActivitiesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ 62.1.1 Gas PipelinesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ... 62.1.2 Oil PipelinesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ. 7

2.2 Risk AssessmentÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ.. 72.3 Statement in Accordance with Relevant StandardsÉÉÉÉÉÉÉÉÉ 7

2.3.1 Gas PipelinesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ... 72.3.2 Oil PipelinesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ. 7

2.4 Non-conformances detected against SABU EMS and EnvironmentalObjectivesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ. 7

2.5 Gas Pipeline Management ActivityÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ... 72.5.1 Buried Gas FlowlinesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ. 72.5.3 Buried Gas Pipelines and TrunklinesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ. 8

2.6 Oil Pipeline Management ActivityÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ 82.6.1 Visual Inspections for Operational Monitoring and LeakageÉÉÉÉÉÉÉ 82.6.2 Pipeline Maintenance Inspections and AssessmentsÉÉÉÉÉÉÉÉÉÉÉ 92.6.3 Batch Treatments (Pigging)ÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ.. 92.6.4 Pipe SupportsÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ... 92.6.5 RepairsÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ.. 92.6.6 HydrotestsÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ.10

2.7 Environmental Incidents and Spill Site AnalysisÉÉÉÉÉÉÉÉÉÉ.102.8 Quarterly Meeting to Discuss Compliance IssuesÉÉÉÉÉÉÉÉÉÉ11

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Section 3: Right-of-Way Construction and RestorationÉÉÉÉÉÉÉÉÉ.. 11

3.1 Summary of ActivitiesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ113.2 Scouting and Risk AssessmentÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ...113.3 Non-conformances Detected against SABU EMS and Environmental

ObjectivesÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ.113.4 Assessment of RestorationÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉÉ..113.5 Quarterly Meeting to Discuss Compliance IssuesÉÉÉÉÉÉÉÉÉÉ12

References

Appendix 1: Gas Flowline ConstructionAppendix 2: Environmental Audit Corrective ActionsAppendix 3: Operations Support Guides and Specifications ListingAppendix 4: Oil Pipeline Design, Construction and Operation GuidesAppendix 5: Reportable Environmental Incident SummaryAppendix 6: Oil spill monitoring results (SA Cooper Basin pipelines)Appendix 7: Actions Arising from PIRSA Quarterly Environmental

Management MeetingsAppendix 8: Right-of-way Environmental Bulletin

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IntroductionThis Annual Environment Report for SA Cooper Basin Operations has been producedas required under Alternative Arrangement 4 as described in correspondence receivedfrom the Director of the Petroleum Group of PIRSA of 8 June 2000 (Ref No.SR28/1/3). This, the second part of the report, addresses activities associated with theconstruction and operation of oil and gas pipelines. Part 1 of the report, submitted toPIRSA on 15 September 2000, deals with other exploration and production activitiesundertaken by Santos. The correspondence of 8 June granted Santos Ltd approval toundertake its South Australian Cooper and Eromanga Basin operations subject tocomplying with the six stated alternative operating arrangements. This approval tooperate under these alternative arrangements was granted pursuant to Regulation 16(2) of the Petroleum Regulations, 1989, until the 30 June 2001 or until such time asthe proposed new Petroleum Act comes into effect.

Section 1: Oil and Gas Pipeline, Trunkline or FlowlineConstruction Activities

1.1 Summary of Activities

A total of 38 gas flowline installations were made during the reporting period. Thedetails of these flowlines are presented in Appendix 1 to this report.

There was 1 oil flowline constructed during the reporting period.

· The Moomba #104 to Moomba #102 flowline is 4km in length and constructed of3 _Ó EUE tubing. This flowline ties Moomba #104 in to the existing Moomba#102 to Moomba Oil facility flowline and was commissioned on the 19/5/2000.

1.2 Scouting

Prior to construction, all pipelines routes are scouted with reference to the Field Guideto the Common Plants of the Cooper Basin (Santos Ltd 1997a) to determine plantclearance priorities, and the Environmental Procedures for the Management ofAboriginal Heritage Sites (Santos Ltd 1998) for the identification of sites of possibleAboriginal heritage significance. The Environmental Procedures for the Location,Construction and Abandonment of Pipelines in the Cooper Basin (Santos Ltd 2000)have recently been developed to ensure that the objectives of minimisingenvironmental disturbance and protecting sites of Aboriginal heritage significance, asdescribed in the PIRSA approved Code of Environmental Practice Ð Production andProcessing Operations (Santos Ltd 1999a), are achieved.

When preliminary identification of a site of possible Aboriginal heritage significanceis made during scouting activities, the site is flagged and documented in accordancewith the Environmental Procedures for the Management of Aboriginal Heritage Sites(Santos Ltd 1998). Personnel who have undertaken Aboriginal heritage and siteidentification training provided by a consultant Archaeologist perform scoutingactivities. Deviations or alternative flowline routes are selected to ensure adequateclearance and protection if a site is identified. If field personnel identify a site ofpossible heritage significance and verification is required, then a consultantArchaeologist is commissioned to undertake an inspection of the area.

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1.3 Risk Assessment

At the design stage, a risk assessment is undertaken for all new gas and oil pipelinesas required by AS2885-1997: Pipelines Ð Gas and liquid petroleum Ð Design andConstruction (Standards Australia, 1997) and more specifically HB105 Ð 1998 Guideto Pipeline Risk Assessment (Standards Australia, 1998). The methodology used isdescribed in Santos Internal Work Practice WP 1500 Ð10 - W001 Pro-forma RiskAssessment for SA Cooper Basin Gas Flowlines (Santos Ltd undated). This workpractice, which was specifically prepared for gas pipelines, is also applied to oilpipelines. In these circumstances, the pro-forma work sheets contained in theprocedure for gas lines are adapted for oil line risk factors.

The risk assessment determines threats of external interference such as road crossings,fence crossings, creek / wash away crossings, dune crossings, third party or Santosmade structures and facilities, ground movement and flooding and environmentalsensitivity.

1.4 Non-conformances detected against SABU EMS and EnvironmentalObjectives

1.4.1 Audit of recently constructed flowlines in PELs 5 and 6

An audit of a random selection of recently constructed flowlines is undertakenannually in accordance with SantosÕ South Australia Business Unit audit schedule.The Environmental Audit of Recently Constructed Flowlines in PELs 5 and 6 (Socialand Ecological Assessment Pty Ltd 2000a) was conducted in November 1999 with 21flowlines inspected. The basis for determining the environmental standards for thisaudit was the Code of Environmental PracticeÐProduction (Santos Ltd 1991). Thereport concluded that on the basis of the flowlines inspected, the standard of flowlineinstallation has been very good with few instances of shortfalls from the expectedenvironmental goals. The major issues identified during the audit included:

· excess width of the right-of-way;

· absence of plastic stands for an above ground flowline installation; and

· windrows in dune swales.

Following this audit a Corrective Action Request (CAR) was raised containing a totalof 26 issues. Details of these issues are presented in Appendix 2 (Table A) to thisreport.

1.4.2 Second Environmental Audit: Cuttapirrie to Moorari Pipeline

In accordance with the PIRSA conditions of approval for the construction of theCuttapirrie to Moorari pipeline, the 2nd Environmental Audit: Cuttapirrie to MoorariPipeline (Social and Ecological Assessment Pty Ltd, 2000b) was undertaken inNovember 1999 within two years of completion of construction. The audit focussedon the stability and the extent of revegetation of the right-of-way. The basis fordetermining the environmental standards for this audit was the then draft Code ofEnvironmental Practice Ð Production and Processing Operations (Santos Ltd 1999a)and the Goal Attainment Scaling (GAS) system developed by PIRSA (Malavazos andDobrinski 1995).

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The audit report concluded that rehabilitation and revegetation of the right-of-way isas expected. Minor gullying was noted in two locations, requiring corrective actions.As a result of this audit a CAR was raised identifying six actions. Details of theserequired actions are presented in Appendix 2 (Table B) to this report.

1.5 Major Environmental Incidents and Spill Site Analysis

There were no major or reportable environmental incidents resulting from gas or oilpipeline construction activities and consequently no total petroleum hydrocarbon(TPH) analysis have been undertaken or included in this section of the report.

1.6 Statement for Design and Construction in Accordance with RecognisedStandards

1.6.1 Gas Pipelines

All buried sections of gas pipelines are constructed of API 5LX line pipe andA1066VB line pipe is used for any above ground sections. All pipelines are designedin accordance with AS 2885.1-1997: Pipelines Ð Gas and liquid petroleum Ð Designand Construction (Standards Australia 1997). A detailed list of all OperationsSupport guides and specifications, including those relevant to pipeline design andconstruction are provided in Appendix 3 to this report.

In addition, gas well connections are carried out according to Santos Guide 1500-106005 and the following standards.

· ANSI B31.3 Chemical Plant and Refinery Piping

· ANSI B16.5 Pipe Flanges and Flanged Fittings

· AS 1271-1997 Safety Valves, Other Valves, Liquid Level Gauges and otherfittings for Boilers and Unfired Pressure Vessels.

1.6.2 Oil Pipelines

All oil pipelines are designed in accordance with AS 2885 Pipelines Ð Gas andLiquid Petroleum (Standards Australia 1997). In addition a number of other Santosinternal guides are used in the design, construction and operation of oil pipelines.These specific guides are presented in Appendix 4 to this report.

Section 2: Pipeline, Trunkline and Flowline Operation

2.1 Summary of Activities

2.1.1 Gas Pipelines

SantosÕ gas pipelines in the Cooper Basin are managed according to the requirementsof AS 2885-1997: Pipelines Ð Gas and liquid petroleum ÐDesign and Construction(Standards Australia 1997). Ongoing management activities include:

· cathodic protection surveys;· corrosion inhibitor pump monitoring; and· visual inspections.

The details of these activities are presented in Section 2.5 of this report.

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2.1.2 Oil Pipelines

SantosÕ oil pipelines in South Australia are managed according to SantosManagement Procedure 3.4.1. Oil Pipeline Management Procedure (Santos Ltd1999b). This is based on the requirements of AS 2885 Pipelines Ð Gas and LiquidPetroleum (Standards Australia 1997). Ongoing management activities include:· visual inspections;· maintenance inspections and assessments;· chemical batch treatments;· pipe support installation; and· other repairs.

The details of these activities are presented in Section 2.6 of this report.

2.2 Risk Assessment

Some recent work has assessed the relative risk factors of operational pipelines. Thishas been based on the NSCA Risk Score Calculator (NSCA 1997) issued by theNational Safety Council of Australia (NSCA) and adapted for environmental risk bySantos QNTBU personnel. The South Australia Business Unit is currently reviewingthis approach to determine is applicability and accuracy.

2.3 Statement in Accordance with Relevant Standards

2.3.1 Gas Pipelines

All gas pipelines in South Australia are managed in accordance with the requirementsof AS 2885-1997: Pipelines Ð Gas and liquid petroleum Ð Design and Construction(Standards Australia 1997).

2.3.2 Oil Pipelines

SantosÕ oil pipelines in South Australia are managed according to SantosManagement procedure 3.4.1 (Santos Ltd 1999b). This procedure is based on therequirements of AS2885Ð1997: Pipelines Ð Gas and liquid petroleum Ð Design andConstruction (Standards Australia 1997).

A number of other Santos Internal Guides exist and are used for various general andspecific issues associated with the operation of pipelines. These are listed inAppendix 4 and are also included in section 5.2.2 of the abovementioned Oil PipelineManagement Procedure (Santos Ltd 1999b).

2.4 Non-conformances detected against SABU EMS and EnvironmentalObjectives

With the exception of the audits and inspections discussed in Section 1.4 of thisreport, there have been no environmental audits of operational pipelines in the SACooper Basin performed during this reporting period.

2.5 Gas Pipeline Management Activity

There were no gas pipelines mothballed or abandoned during the reporting period.

2.5.1 Buried Gas Flowlines

Cathodic protection surveys are carried out approximately every 12 to 16 weeks on alloperating gas flowlines in the SA Cooper Basin. These surveys are carried out lessfrequently than the 8 weeks stated in AS 2885-1997: Pipelines Ð Gas and liquidpetroleum Ð Design and Construction (Standards Australia 1997).

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Corrosion inhibitor pumps at each wellhead are monitored and maintained at the samefrequency as employed for cathodic protection surveys.

2.5.2 Buried Gas Pipelines and Trunklines

Trunkline cathodic protection surveys are carried out annually. Trunkline inhibitorpump surveys are carried out weekly on all major trunklines. Trunklines, flowlinesand gathering line cathodic protection potential surveys are carried out annuallyduring routine 100% cathodic protection test point surveys. In addition, a full visualinspection of the pipeline and right-of-way is performed at this time.

Pigging and chemical batch inhibition treatment is undertaken annually on all majorgas trunklines.

2.6 Oil Pipeline Management Activity

There was one oil trunkline mothballed during the reporting period.

· The Wancoocha to Moomba Oil trunkline was mothballed. This trunkline is58.6km in length and constructed of 100 mm NB line pipe. Santos intends toutilise 6.5km of this line for oil production from a new facility at Moomba #104.

2.6.1 Visual Inspections for Operational Monitoring and Leakage

The following inspections were performed as required by section 5.4.3.1 of SantosProcedure 3.4.1 Oil Pipeline Management System (Santos Ltd 1999b).

a) Aerial (helicopter)Table 1: Oil pipeline aerial survey frequency

Description ManagementPlan Target

Actual

Jena to Alwyn/Jena/Ulandi 2 9Alwyn/Jena/Ulandi to Limestone Creek 2 9Limestone Creek to Strzelecki 2 9Tantanna to Gidgealpa Oil 2 9Spencer to Muteroo 2 9Muteroo to Gidgealpa Oil 2 9Gidgealpa Oil to Moomba 2 9Keleary to Merrimelia 12 10

b) Road patrolTable 2: Oil pipeline road patrol frequency

Pipeline Description ManagementPlan Target

Actual

Jena to Alwyn/Jena/Ulandi 1 2Alwyn/Jena/Ulandi to Limestone Creek 1 2Limestone Creek to Strzelecki 1 2Tantanna to Gidgealpa Oil 1 2Spencer to Muteroo 1 2Muteroo to Gidgealpa Oil 1 2Gidgealpa Oil to Moomba 1 0Keleary to Merrimelia 2 1*

* A second inspection of the Keleary pipeline was performed by Helicopter on 14/6/2000 asaccess to the ROW was limited by flooding.

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2.6.2 Pipeline Maintenance Inspections and Assessments

The following is a summary of the inspections performed as required under section5.5.2 of Santos Procedure 3.4.1 Oil Pipeline Management System (Santos Ltd 1999b).

· Ultrasonic thickness surveys on welded pipe sleeves used for leak repairs on theKeleary to Merrimelia pipeline in July 1999. Checks in November 1999 and June2000 revealed that no corrosion was present at these sleeves.

· Cathodic Protection (CP) checks are carried out annually on the following buriedpipelines.

Table 3: Pipelines undergoing annual cathodic protection checks

Pipeline Name / LocationGidgealpa to MoombaWancoocha to MoombaGidgealpa buried flowlinesLimestone creek buried flowlinesKeleary to Merrimelia buried sectionsTirrawarra to MoombaMeranji to tie in Tirrawarra-Moomba lineDullingari to MoombaStrzelecki to Dullingari Tie In

2.6.3 Batch Treatments (Pigging)

Batch Treatment with biocide for control of internal corrosion as required by Section5.4.3.3 of Santos Procedure 3.4.1 Oil Pipeline Management System (Santos 1999b)has been performed on the following lines.

Table 4: Biocide batch treatment of SA Cooper Basin oil pipelines

Description ManagementPlan Target

Actual

Jena #2 to Alwyn/Jena/Ulandi Tie in 2 0Alwyn/Jena/Ulandi Tie In to Limestone Creek 2 0LSC to Strzelecki Oil 2 0Lake Hope to Gidgealpa 2 1Spencer/Muteroo to Gidgealpa 2 1Gidgealpa to Moomba 2 1Wancoocha to Moomba 1 1Keleary to Merrimelia 2 2Tirrawarra to Moomba 4 4Merrimelia to Tirrawarra Trunkline 2 2Meranji to Tirrawarra Trunkline 2 2Dullingari to Dullingari/Strzelecki Junction 2 1Strzelecki to Dullingari/Strzelecki Junction 2 1Dullingari/Strzelecki Junction to Moomba 2 1

2.6.4 Pipe Supports

Pipe support checks were made during those inspections listed in section 5.1 of thisreport. All fallen or broken pipe supports were replaced with type 3 (barrel or donut)supports.

2.6.5 Repairs

Repairs to the Keleary to Merrimelia pipeline were performed in July and August1999 as summarised below.

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· Buried sections at three road crossings that failed under hydrotest were repaired.These repairs were performed with welded sleeves.

· Pipe coating at buried sections was upgraded to ensure that coating extended 2metres beyond buried entry points.

· Fallen pipe supports were replaced with type 3 supports.

Repairs to the Lake Hope to Gidgealpa pipeline were instigated in July and August1999 as summarised below.· Replacement pipe spools were inserted at approximately six locations where

minor leaks were detected during hydrotest.· Fallen pipe supports were replaced with type 3 supports.

2.6.6 Hydrotests

Above ground oil trunklines that have leaked fluid are hydrotested at specified regularintervals to reaffirm their operating integrity. The following table identifies suchpipelines. Three of these lines have been hydrotested during the reporting period.

Table 5: Oil pipeline hydrotest frequencies

Description ManagementPlan Target

Interval

Last Tested

Keleary Line 1.5 years August 1999Lake Hope Line 3 years August 1999Limestone Creek ÐStrzelecki

2 years April 2000

Alwyn/Jena/Ulandi ÐLimestone Creek

3 years August 1997

2.7 Environmental Incidents and Spill Site Analysis

Of the 30 environmental incidents reported to regulatory authorities during thereporting period, only seven were either directly associated or related to operatingpipelines. The details of these incidents including location, cause, immediateresponse and corrective actions are presented in Appendix 5 to this report.

There are 12 significant oil spill sites associated with operating pipelines which aresubject to ongoing monitoring of TPH levels in affected soils. The monitoring resultsfor these sites, which are listed below, are presented in Appendix 6 to this report.

· Jena #1· Jena #4· Keleary 19km· Keleary 66km· Lake Hope Trunkline 3.9km· Lake Hope Trunkline 13.1km· Lake Hope Trunkline 24.4km· Limestone Creek to Strzelecki Trunkline 3.8km· Limestone Creek to Strzelecki Trunkline 15km· Tirrawarra Trunkline· Ulandi 1 (1-98)· Ulandi 1 (2-99)

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2.8 Quarterly Meeting to Discuss Compliance Issues

Quarterly meetings were held with PIRSA to discuss a range of issues associated withthe environmental management of SantosÕ SA Cooper Basin operations. Actionsarising from these meetings are presented in Appendix 7 to this report.

The major issue raised in association with pipelines was the completion of theAssessment of Potential Impacts of a Crude or Condensate Spill Ð North West BranchCooper Creek (Stages 1 and 2) (Sinclair Knight Merz 1999). In addition, the scope ofsubsequent stages of the project to be carried out during the 2000-2001 reportingperiod were developed.

Pipeline oil spill incidents were also discussed, along with a review of the oil spillmonitoring results associated with pipelines as listed in Section 2.7 of this report.

Section 3: Right-of-Way Construction and Restoration

3.1 Summary of Activities

Right-of-ways are constructed for all pipelines constructed in the South AustralianSector of the Cooper and Eromanga Basins.

3.2 Scouting and Risk Assessment

Right-of-ways are scouted in accordance with the procedures detailed in Section 1.2of this report. All right-of-ways are restored upon completion of pipelineconstruction. A maintenance track is maintained for 4WD access for pipeline visualinspections and maintenance activities. Due to concerns over the level ofmaintenance that is acceptable on right-of-ways (to ensure that environmentaldisturbance is minimised and third party access is discouraged) an EnvironmentalBulletin was prepared. A copy of the Bulletin is presented in Appendix 8 to thisreport.

3.3 Non-conformances Detected against SABU EMS and EnvironmentalObjectives

Inspections of pipeline right-of-ways were undertaken in conjunction with thoseaudits described in Section 1.4 of this report. The major concern noted was the excesswidth of the right-of-way in some locations. Right-of-way width requirements forvarious land systems and situations have been clearly defined in the EnvironmentalProcedures for the Construction, Operation and Abandonment of Pipelines in theCooper Basin (Santos Ltd 2000).

3.4 Assessment of Restoration

Right-of-way restoration was assessed for a number of recently constructed flowlinesas described in Section 1.4 of this report. Right-of-way restoration was generally of ahigh standard. A Corrective Action Request (CAR) was raised to address the mainissues summarised below and detailed in Appendix 2 to this report.· windrows in dune swales· slight gullying· rubbish left on right-of-way· failure to respread stockpiled vegetation.

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3.5 Quarterly Meeting to Discuss Compliance Issues

Quarterly meetings were held with PIRSA to discuss a range of issues associated withthe environmental management of SantosÕ SA Cooper Basin operations. Actionsarising from these meetings are presented in Appendix 7 to this report. No majorissues were raised in relation to the restoration of pipeline right-of-ways.

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References

Malavazos, M and Dobrinski, I. 1995Goal Attainment Scaling Applied to Assessing Environmental Impacts of PetroleumProduction Operations in the Cooper Basin. Mines and Energy South Australia.

NSCA. 1997NSCA Risk Score Calculator. (NSCA).

Santos Ltd. 1991Code of Environmental PracticeÐProduction. Santos Ltd.

Santos Ltd. 1997Field Guide to the Common Plants of the Cooper Basin. Santos Ltd.

Santos Ltd. 1998Environmental Procedures for the Management of Aboriginal Heritage Sites.Santos Ltd.

Santos Ltd. 1999aCode of Environmental Practice Ð Production and Processing Operations.Santos Ltd.

Santos Ltd. 1999bSantos Procedure 3.4.1. Oil Pipeline Management System. Santos Ltd.

Santos Ltd. 2000Environmental Procedures for the Construction, Operation and Abandonment ofPipelines in the Cooper Basin. Santos Ltd.

Santos Ltd. undatedWP 1500 Ð10 - W001 Pro-forma Risks Assessment for SA Cooper Basin GasFlowlines. Santos Ltd.

Sinclair Knight Merz. 1999Assessment of Potential Impacts of a Crude or Condensate Spill Ð North West BranchCooper Creek (Stages 1 and 2). Sinclair Knight Merz.

Social and Ecological Assessment Pty Ltd. 2000aAudit of Recently Constructed Flowlines in PELs 5 and 6. SEA Pty Ltd.

Social and Ecological Assessment Pty Ltd. 2000b2nd Environmental Audit: Cuttapirrie to Moorari Pipeline. SEA Pty Ltd.

Standards Australia. 1997AS 2885.1-1997. Pipelines Ð Gas and liquid petroleum Ð Design and Construction.Standards Australia.

Standards Australia. 1998HB 105-1998 Guide to Pipeline Risk Assessment in accordance with AS 2885.1, 1997.Standards Australia.

Appendix 1: Gas Flowline Construction

Location Description Time ofConstruction

Pipe Diameter(mm)

Length(m)

Meranji #18 2nd half 1999 100 702Big Lake #63 2nd half 1999 100 212Pondrinie Jumpover 2nd half 1999 100 10

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Beckler free flowline 2nd half 1999 150 8372Tirrawarra #41 2nd half 1999Tirrawarra #13 2nd half 1999Tirrawarra #17 2nd half 1999Pondrinie North #1 2nd half 1999 100 3396Moomba LDB Ethanecrossover

2nd half 1999 150 2700

Nephrite South #2 Jan 2000 100 650Bungee #1 Jan 2000 100 60Della #19 Jan 2000 100 150Moomba North #2 Jan 2000 100 3502Moomba LDB Jan 2000 2820Barina #4 Feb 2000 100 950Moomba #105 Feb 2000 150 1300Moomba #106 -#110 Feb 2000 100 3710Barina #5 Feb 2000 100 1300Massy #1 Feb 2000 100 600Big Lake #64 Mar 2000 1400Pelican #5 Mar 2000 100 800Bindah #1 Mar 2000 100 1600Cuttapirrie #6 Mar 2000 150 1600Meranji Spine Apr 2000 150 1750Meranji East #1 Apr 2000 100 500Meranji #19 Apr 2000 100 650Momba #108 Apr 2000 100 200Moomba #111 May 2000 100 1650Moomba #72 May 2000 100 1700Pira #1 May 2000 100 2050Big Lake #30 May 2000 100 300Moomba #112 June 2000 100 280Della #20 June 2000 100 200Della #21 June 2000 100 200Della #22 June 2000 100 200Moomba #73 June 2000 150 3400Moomba #113 June 2000 100 600Meranji #21 June 2000 100 50

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Appendix 2: Environmental Audit Corrective Actions

A) Issues identified during the Annual Audit of Recently Constructed Flowlines

No. Issue Action Required

1. Balcaminga #1: ROW greater then 15m. Greater enforcement of requirement.

2. Balcaminga #1: trim trees rather than clear. Liaison with contractor.

3. Barina #3: ROW subsidence. Remedial earthworks required.

4. Big Lake #62: ROW greater than 15m. Greater enforcement of requirement.

5. Big Lake #62: windrows left in one place. Remedial earthworks required.

6. Big Lake #63: ROW greater than 15m. Greater enforcement of requirement.

7. Big Lake #63: Respread vegetation. Remedial earthworks required.

8. Cabernet #1: slight gully in swale. Remedial earthworks required.

9. Cabernet #2: rubbish on ROW. Collect rubbish.

10. Dullingari #50: rubbish on ROW. Collect rubbish.

11. Dullingari #50: no pipe supports. Install pipe supports.

12. Gudi #1: one pipeline marker has fallen over. Repair marker.

13. Moolion North #1: windrows left in dune swales. Remedial earthworks required.

14. Moolion North #1: crown in swale has no breaks. Remedial earthworks required.

15. Moolion North #1: several pipeline markers havefallen over.

Re-instate markers.

16. Moomba #96: ROW greater than 15m. Greater enforcement of requirement.

17. Moomba #96: two mounds left on ROW atAdelaide pipeline crossing.

Remedial earthworks required.

18. Moomba #96: minor gullying. Remedial earthworks required.

19. Moomba #101: ROW greater than 15m. Greater enforcement of requirement.

20. Moomba #101: vegetation not respread. Remedial earthworks required.

21. Moomba #102: dune not reprofiled after accesscut.

Remedial earthworks required.

22. Moomba #102: rubbish on ROW. Collect rubbish.

23. Nulla/Welcome Lake East #1: ROW greater than15m.

Greater enforcement of requirement.

24. Pondrinie #13: rubbish on ROW. Collect rubbish.

25. Pondrinie #13: minor rills along ROW. Remedial earthworks required.

26. Swan Lake #1: minor rills on dune side. Remedial earthworks required.

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B) Issues identified during the Second Environmental Audit of the Cuttapirrieto Moorari Pipeline

No. Issue Priority Action Required1. A large gully has formed on the right-

of-way 4.4km north east of Moorari.High Remedial earthworks required.

2. A large gully has formed on the right-of-way 3.4km north east of Moorari.

High Remedial earthworks required.

3. Windrows remaining near Moorari(outstanding from first audit).

High Remedial earthworks required.

4. Rip access track (section of oldseismic line 76-JGU) (outstandingfrom first audit).

High Remedial earthworks required.

5. Improve standard of MitchieCrossing of the Cooper Creek(outstanding from first audit).

High Remedial earthworks required.

6. Improve Òbush-gateÓ where ROWcrosses (17km east of the Mitchiecamp) (outstanding from firstaudit).

High Initiate repairs to gate.

Elly's Mac:Santos_AnnPipeRep.doc 17

Appendix 3: Operations Support Guides and Specifications Listing

Document Rev

Title UnderReview

1500-00-S001 PREPARATION OF ENGINEERING DRAWINGS

1500-10-G002 HAZARDOUS AREA CLASSIFICATION

1500-10-G003 VENTS TO ATMOSPHERE

1500-10-G004 GAS SATELLITE EMERGENCY SHUTDOWN SYSTEMS

1500-10-G005 GAS WELLHEAD CONNECTION DESIGN

1500-10-G007 FLUID FLOW CALCULATIONS

1500-10-G008 WATER DISPOSAL SYSTEM DESIGN

1500-10-G010 TWO AND THREE PHASE SEPARATORS

1500-10-G012 GAS SATELLITE DESIGN

1500-10-G014 RELIEF DEVICE SIZING

1500-10-G015 DEPRESSURISING

1500-10-G016 GAS BREAKTHROUGH AND RO SIZING

1500-10-G017 RELIEF SYSTEM DESIGN

1500-10-G018 FLARE DESIGN

1500-10-G019 MOOMBA AREA DESIGN CONDITIONS

1500-10-G020 PORT BONYTHON DESIGN CONDITIONS

1500-10-G022 FIREPROOFING OF STEELWORK

1500-10-S001 PACKAGED RECIPROCATING COMPRESSOR - PROCESS SPEC

1500-10-W001 PRO-FORMA RISK ASSESSMENT FOR SA COOPER BASIN GAS FLOWLINES

_ Attachment 9.3 Worksheet for Performing the Location and Threat Analysis andDetermination of Design Mitigations

1500-20-S001 UNFIRED PRESSURE VESSELS

1500-30-G001 PUMPS - CENTRIFUGAL

1500-30-G002 PACKAGED RECIPROCATING COMPRESSORS

1500-30-G003 RECIPROCATING PUMPS

1500-30-S002 PACKAGED RECIPROCATING COMPRESSORS - MECHANICAL ANDGENERAL

1500-40-G001 ROADWORKS DESIGN STANDARDS

1500-50-G001 DESIGN GUIDE FOR PIPING

1500-50-G002 DESIGN GUIDE FOR VALVES

1500-50-G006 HOT TAPPING

1500-50-G007 PIPELINE GATHERING SYSTEM

1500-50-P001 ASME 150# CARBON STEEL PIPING

1500-50-P003 ASME 300# CARBON STEEL PIPING

1500-50-P006 ASME 600# CARBON STEEL PIPING

1500-50-P009 11.4 MPAG CARBON STEEL PIPING

1500-50-P010 ASME 900# CARBON STEEL PIPING

Elly's Mac:Santos_AnnPipeRep.doc 18

Document Rev

Title UnderReview

1500-50-P015 ASME 1500# CARBON STEEL PIPING

1500-50-P025 ASME 2500# CARBON STEEL PIPING

1500-50-P101 ASME 150# LOW TEMP CARBON STEEL PIPING

1500-50-P106 ASME 600# LOW TEMP CARBON STEEL PIPING

1500-50-P109 ASME 900# LOW TEMP CARBON STEEL PIPING

1500-50-P201 ASME 150# STAINLESS STEEL PIPING

1500-50-P203 ASME 300# STAINLESS STEEL PIPING

1500-50-P206 ASME 600# STAINLESS STEEL PIPING

1500-50-P301 ASME 150# LINEPIPE CARBON STEEL PIPING

1500-50-P303 ASME 300# LINEPIPE CARBON STEEL PIPING

1500-50-P306 ASME 600# LINEPIPE CARBON STEEL PIPING

1500-50-P309 11.4 MPAG LINEPIPE CARBON STEEL PIPING

1500-50-P310 ASME 900# LINEPIPE CARBON STEEL PIPING

1500-50-P315 ASME 1500# LINEPIPE CARBON STEEL PIPING

1500-50-P325 ASME 2500# LINEPIPE CARBON STEEL PIPING

1500-50-S003 HOT BENDS

1500-50-S004 HIGH PRESSURE STEEL LINE PIPE

1500-50-S008 PIG LAUNCHER AND RECEIVER BARRELS

1500-50-V300 GATE VALVES

1500-50-V400 GLOBE VALVES

1500-50-V500 CHECK VALVES

1500-50-V600 BALL VALVES

1500-50-V700 PLUG VALVES

1500-50-V800 BUTTERFLY VALVES

1500-50-V900 NEEDLE VALVES

1500-50-W001 HOT TAPPING

1500-60-G001 ELECTRICAL DESIGN

1500-70-S019 PACKAGING OF FIELD COMPRESSION CONTROL SYSTEMS

1500-70-S020 PROGRAMMABLE/CONFIGURABLE SYSTEMS

1500-90-S001 SKIDS AND SKID MOUNTED ASSEMBLIES

1500-120-S001 BULK EARTH WORKS

1500-120-S002 EXCAVATION AND BACK FILLING

1500-120-S003 CONCRETE CONSTRUCTION

1500-120-S004 FABRICATION OF STEELWORK

1500-120-S005 ERECTION OF STEELWORK

1500-120-S006 ROADWORKS

1500-120-S007 EVAPORATION/STORAGE PONDS

1500-120-S009 INSTALLATION OF EQUIPMENT

1500-120-S011 GROUTING PLANT AND EQUIPMENT AND STRUCTURAL STEELWORK

1500-120-S012 ABOVE GROUND PROTECTIVE COATING

1500-120-S015 FABRICATION AND INSTALLATION OF PROCESS AND UTILITY PIPING

Elly's Mac:Santos_AnnPipeRep.doc 19

Document Rev

Title UnderReview

1500-120-S018 PRESSURE TESTING OF PROCESS AND UTILITY PIPING

1500-120-S020 BURIED FIELD PIPELINE SYSTEMS

1500-120-S021 FIELD JOINT COATING

1500-120-S023 COATING REPAIR TO OPERATING PIPELINES

1500-120-S025 SHOP APPLICATION OF LIQUID APPLIED HIGH BUILD EPOXY

1500-120-S027 ABOVE GROUND PIPELINE SYSTEMS

1500-120-S028 LABORATORY TESTING OF LIQUID APPLIED POLYMERIC COATINGS

1500-120-S029 CONSTRUCTION OF IMPRESSED CURRENT CATHODIC PROTECTIONSYSTEM

1500-120-S030 INSTALLATION OF CATHODIC PROTECTION TEST POINTS ON BURIEDPIPELINE

Appendix 4: Oil Pipeline Design, Construction and OperationGuides

Guide/Spec No. Rev Santos Guide/Spec Title Responsible Person

1500-10-G006 Oil flowline sizing and specification Ops Support

1500-50-G001 1 Design Guide for Piping Ops Support

1500-50-S001 0 Piping & Valves Ð Spec Ops Support

1500-50-S004 0 High Pressure Steel Line Pipe Ops Support

1500-50-G007 2 Pipeline Gathering Systems Ops Support

1500-69-G001 Cathodic Protection System Design Ops Support

1500-120-S020 0 Buried Field Pipeline Systems Ops Support

1500-120-S027 0 Above Ground Pipeline Systems Ops Support

S/002 0 Environmental aspects for design of oilpipelines and gathering systems

Team Leader, Block Oil

South Australia Business Unit Santos Ltd

Elly's Mac:Santos_AnnPipeRep.doc 1

Appendix 5: Reportable Environmental Incident Summary(NB Contains only those incidents associated with pipeline operations)

DateOccurred

Time(24

hours)

Report # Location Approx.volume (m3)

Approx. areaaffected (m2)

Cause Rehabilitation actions Actions to prevent recurrence

30/05/2000 09:30 SSTA-4KT2WC(yes)

KP66 Kelearytrunk line

5.0 100 Unknown/Undetermined Hose isolated. Clean up cannotstart until access is available, asthe area is currently surroundedby flood water.

Field Services to inspect the area andrecommend adequate area to be fenced tokeep cattle away from the trunklineequipment.

29/05/2000 PSSM-4KT9C5(yes)

Sturt Fieldmanifold

4.0 125 Corrosion Suck truck to be on site 31/5/00at 11:00, Insitu bioremediation.

Operators to continue with routine checks.

11/05/2000 IEWT-4K86TJ(yes)

KP66 Kelearytrunk line

2.0 60 Unknown/Undetermined Insitu bioremediation. The area around the equipment is to befenced to prevent access by cattle. Hosereplaced with higher rated flexible line CajonTH6.

24/04/2000 PSMA-4JNV39(yes)

Spool u/streamof tie into theGidgealpa oil

t/line

0.25 80 Mechanical/ElectricalFailure

Clean up will consist of removingstained bushes and remediatingfilmed area.

Line shut down and depressured. Sectionremoved and repaired. Block Oil Eng toinclude an expansion joint to eliminate stresspoint in the F.I.C.

07/04/2000 PSSM-4J6B5K(yes)

2 kms fromLSC

5.0 5 Mechanical/ElectricalFailure, Corrosion

Shut shipping pumps down,isolated leak and fitted clamp,Insitu bioremediation.

Ensure regular pressure testing of the linecontinues.

23/01/2000 OSTA-4FTALE(yes)

Tirrawarra #49 0.5 10 Corrosion - external Insitu bioremediation. Well and flow line have been isolated.

14/08/1999 PSSD-4AS5S5(yes)

Strzelecki Tee 7.0 Human/ mechanical failure Highly contaminated soil wasremoved from the site and thesite remediated.

Operator counselled on correct procedure.

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 1

Appendix 6: Oil spill monitoring results (SA Cooper Basin pipelines)

Ulandi 1 (2-99) Trunkline Oil Spill

0.00

1.00

2.00

3.00

4.00

5.00

6.00

AR0296a-l15-Mar-99

AR0936F13-Sep-99

AR 1619a-f25-Mar-00

Reference/Sample Date

Oil a

nd G

reas

e (%

w/w) Sample Point 1

Sample Point 2

Sample Point 3

Sample Point 4

Sample Point 5

Sample Point 6

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 2

Jena 4 Trunkline Oil Spill

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

NR018326-Feb-96

NR084703-Oct-96

NR032116-May-97

NR0953-815-Dec-97

NR035010-Mar-98

AR0124a-d10-Feb-99

AR0933A-D13-Sep-99

AR 1615a-c25-Mar-00

Reference/Sample Date

Oil

and

Gre

ase

(%w

/w)

Sample Point 1

Sample Point 2

Sample Point 3

Sample Point 4

Sample Point 5

Sample Point 6

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 3

Keleary Trunkline Oil Spill (19km)

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Apr-99

May-99

Jun-99

Jul-99 Aug-99

Sep-99

Oct-99

Nov-99

Dec-99

Jan-00

Feb-00

Mar-00

Apr-00

May-00

Jun-00

Jul-00 Aug-00

Sample Date

TP

H (

%w

/w d

ry) Sample Point 1

Sample Point 2

Sample Point 3

Sample Point 4

Sample Point 5

Sample Point 6

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 4

Keleary Trunkline Oil Spill (66km)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

AR215413-Aug-00

Sample Reference / Date

TP

H (

%w

/w d

ry)

Sample Point 3

Sample Point 2

Sample Point 1

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 5

Lake Hope Trunkline Oil Spill (3.9 km from Tantanna)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

NR042513-Jun-97

NR729-3712-May-98

AR0297a-h27-Mar-99

AR1179a-e02-Nov-99

AR197506-Jun-00

Reference/Sample Date

Oil

an

d G

rea

se

(%

w/w

)

Sample Point 1

Sample Point 2

Sample Point 3

Sample Point 4

Sample Point 5

Sample Point 6

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 6

Lake Hope Trunkline Oil Spill (13.1km from Tantanna)

0

0.5

1

1.5

2

2.5

3

NR0424*12-Jun-97

NR663-70**12-May-98

AR0298a-e27-Mar-99

AR1180a-e02-Nov-99

AR1974***06-Jun-00

Reference/Sample Date

Oil a

nd

Gre

ase (

%w

/w)

Sample Point 1

Sample Point 2

Sample Point 3

Sample Point 4

Sample Point 5

Sample Point 6

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 7

Lake Hope Trunkline Oil Spill (24.4 km from Tantanna)

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

NR0421*12-Jun-97

NR677-88**12-May-98

AR0299a-f27-Mar-99

AR1181a-d02-Nov-99

AR 1973***06-Jun-00

Reference/Sample Date

Oil a

nd

Gre

ase (

%w

/w)

Sample Point 1

Sample Point 2

Sample Point 3

Sample Point 4

Sample Point 5

Sample Point 6

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 8

Limestone Creek - Strzelecki Trunkline Oil Spill (3.8 km from LSC)

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

NR0414*02-Jun-97

NR0281**03-Mar-98

NR115713-Nov-98

AR0122A-B10-Feb-99

AR0934B13-Sep-99

AR 1616a-b25-Mar-00

Reference/Sample Date

Oil

an

d G

rea

se

(%

w/w

)

Sample Point 1

Sample Point 2

Sample Point 3

Sample Point 4

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 9

Limestone Creek - Strzelecki Trunkline Oil Spill (15 km from LSC)

0

0.5

1

1.5

2

2.5

3

NR0414*02-Jun-97

NR0281**03-Mar-98

AR0123A-C10-Feb-99

AR0935C13-Sep-99

AR 1617a-c25-Mar-00

Reference/Sample Date

Oil

and

Gre

ase

(%w

/w)

Sample Point 1

Sample Point 2

Sample Point 3

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 10

Tirrawarra Trunkline Oil Spill

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

Aug-95 Nov-95 NR036412-Apr-96

NR072626-Sep-96

NR033318-May-97

NR063216-May-98

NR100002-Sep-98

AR0400a-c26-Apr-99

AR1143a-c26-Oct-00

AR1830a-c15-May-00

Reference/Sample Date

Oil

and

Gre

ase

(%w

/w)

Sample Point 1

Sample Point 2

Sample Point 3

Sample Point 4

Sample Point 5

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 1

Ulandi 1 (1-98) Trunkline Oil Spill

0.00

0.50

1.00

1.50

2.00

2.50

3.00

NR106-13*27-Jan-98

AR0125A-D10-Feb-99

AR0937D13-Sep-99

AR 1618a-d25-Mar-00

Reference/Sample Date

Oil

and

Gre

ase

(%w

/w)

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 2

Ulandi 1 (2-99) Trunkline Oil Spill

0.00

1.00

2.00

3.00

4.00

5.00

6.00

AR0296a-l15-Mar-99

AR0936F13-Sep-99

AR 1619a-f25-Mar-00

Reference/Sample Date

Oil a

nd G

rease

(%w/

w) Sample Point 1

Sample Point 2

Sample Point 3

Sample Point 4

Sample Point 5

Sample Point 6

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 1

Appendix 7: Actions Arising from PIRSA Quarterly EnvironmentalManagement Meetings

PIRSA Meetings: 1 November 199914 February 20003 April 200010 July 2000

Meeting between PIRSA and SABUEnvironmental Management in the SA Cooper Basin.

Actions arising from Meeting of Monday, 1 November 199991 King William Street, Level 9, Strzelecki Meeting Room

Meeting commenced at 2.30 pm

Present

WJ Hudson, S Tunstill, A Lahne, C McTaggart, E Dyer (Santos)T Aust, M Malavazos, R McDonough (PIRSA)

Actions Arising

Action Responsibility Due Date

Provide T Aust with a copy of the EPALicence Conditions for the Landfarm andWaste Depot.

S Tunstill 12/11/99

T Aust to contact E Dyer to arrange onlinepresentation of Santos IMS.

T Aust Whenconvenient

Santos to provide graphical summaries of oilspill volume and number of incidents.

S Tunstill Nextmeeting

PIRSA to provide S Tunstill with details of theEnvironment Protection Officers trainingcourse.

T Aust Whenavailable

PIRSA to formalise comments on Oil SpillProject and provide to Santos.

T Aust 23/12/99

PIRSA to provide report on inspection ofevaporation pond facilities.

M Malavazos 23/12/99

Next Meeting: Monday 14th February 2000, Santos HouseLevel 9, 91 King William Street, AdelaideRoom 9.1 (Strzelecki)at 2.30pm.

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 2

Meeting between PIRSA and SantosEnvironmental Management in the SA Cooper Basin.

Actions arising from Meeting of Monday, 14 February 200091 King William Street, Level 9, Strzelecki Meeting Room

Meeting commenced at 2.30 pm

Present

WJ Hudson, S Tunstill, A Lahne, C McTaggart, E Dyer (Santos)T Aust, M Malavazos, D Cockshell (part) (PIRSA)

Apologies

R McDonough (PIRSA)

Actions Arising

Action Responsibility Due Date

Santos to present analysis of crude andcondensate streams for non-hydrocarboncontaminants at next meeting (agendaitem).

E Dyer 3/4/2000

Santos to review report on bio-remediationstudy undertaken at Big Lake and plots tobe re-sampled.

S Tunstill Prior to3/4/2000

Santos to review GAS criteria forremediation of oil spill sites and submit toPIRSA for approval.

S Tunstill Prior to3/4/2000

Santos to provide results of recent analysisof Keleary pipeline spill as soon asavailable.

E Dyer Prior to3/4/2000

Santos to ensure that field personnel areadvised of spill reporting requirements forPFW disposal facilities.

E Dyer 3/4/2000

Abandoned Jena #2 facility to be restored. A Lahne TBA

Santos to provide PIRSA with definitions ofcompliance and conformance for reportingconsistency.

E Dyer Prior to3/4/2000

PIRSA to provide S Tunstill with details ofnext Environment Protection Officerstraining course.

T Aust As soon asavailable.

Santos to respond to PIRSAcorrespondence commenting on CooperCreek Oil Spill Study and provide outline offuture direction.

C McTaggart Prior to3/4/2000

Santos to provide PIRSA with a list of sitesand scope of analysis for pond sedimentsampling program.

S Tunstill Prior to3/4/2000.

PIRSA to provide copy of reporting M Malavazos As soon as

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 3

Action Responsibility Due Date

timeframes and format to Santos as agreedwith SACOME.

practical.

Santos to finalise generic abandonmentprocedure/guideline for wells and submit toPIRSA for approval.

WJ Hudson(A DeGaris and

S Dorigo tofinalise).

Urgent.

PIRSA to provide Santos with formalcorrespondence clarifying comments madein the PIRSA Annual Report Ð1998/99.

T Aust As soon aspossible.

Santos to provide PIRSA with summary ofenvironmental incidents at quarterlymeetings (agenda item).

E Dyer 3/4/2000

Next Meeting: Monday 3rd April 2000, Santos HouseLevel 9, 91 King William Street, AdelaideRoom 9.1 (Strzelecki)at 2.30pm.

Meeting between PIRSA and SantosEnvironmental Management in the SA Cooper Basin.

Actions arising from Meeting of Monday, 3 April 200091 King William Street, Level 9, Strzelecki Meeting Room

Meeting commenced at 2.30 pm

Present Santos: WJ Hudson, S Tunstill, A Lahne, C McTaggart, E DyerS Dorigo (part), A De Daris (part), P Mackey (part)

PIRSA: T Aust, M Malavazos, R McDonough

Apologies

There were no apologies.

Actions Arising

Action Responsibility Due Date

Santos to finalise procedure for wellabandonment risk assessment andmanagement. PIRSA to be advised oncompletion of interim stages.

P Mackey Asappropriateand before3/7/2000

Santos to review EGIS report onremediation of oil spills commissioned byQNTBU.

S Tunstill Prior to3/7/2000

Santos to review report on bio-remediationstudy undertaken at Big Lake and arrange

S Tunstill Prior to3/7/2000

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 4

Action Responsibility Due Date

for plots to be re-sampled.

Based on review of reports and results,Santos to amend GAS criteria forremediation of oil spill sites and submit toPIRSA for approval.

S Tunstill Subject tocompletionof above 2

actions.

Santos to provide PIRSA with results ofrecent analysis of Jena #1, #4, LimestoneCreek pipeline (2 sites) and Ulandi #1 (2sites) oil spills.

E Dyer As soon asavailable.

Tanks at Jena #2 facility to be removed andsurface rehabilitated.

A Lahne Whenpractical.

PIRSA to provide S Tunstill with details ofnext Environment Protection Officerstraining course.

T Aust As soon asavailable.

PIRSA to provide formal response toSantosÕ earlier correspondence on proposeddirection of Cooper Creek Oil Spill Study.

R McDonough As soon aspractical.

Santos to advise PIRSA of outcomes offuture discussions and resultant direction ofCooper Creek Oil Spill Study.

C McTaggart Asappropriate.

Santos to undertake analysis of sedimentsamples collected from produced formationwater holding and evaporation ponds for gasand oil satellites.

E Dyer Whenaccess

conditionspermit.

Santos to consider draft letter on alternativearrangement approval and schedulemeeting with PIRSA to address issues.

S Tunstill 20/4/2000

Santos to review revised draft of Drilling andWorkover Statement of EnvironmentalObjectives and provide comments to PIRSA.

S Tunstill As soon aspractical.

Meeting closed at 4.20 pm

Next Meeting: Monday 3 July 2000 Santos HouseLevel 9, 91 King William Street, AdelaideRoom 9.1 (Strzelecki)at 2.30pm.

Meeting between PIRSA and SantosEnvironmental Management in the SA Cooper Basin.

Actions arising from Meeting of Monday, 10 July 200091 King William Street, Level 9, Strzelecki Meeting Room

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 5

Meeting commenced at 2.00 pm

Present Santos: WJ Hudson, S Tunstill, J YoungS Dorigo (part), P Mackey (part)S Smith (Ecos Consulting)

PIRSA: M Malavazos, J Morton

Apologies Santos: A De Garis, A Lahne, C McTaggart

PIRSA: T Aust, R McDonough

Actions Arising

Action Responsibility Due Date

Santos to consider and incorporatecomments on draft well abandonmentprocedure raised by PIRSA during meeting.Santos to finalise procedure for wellabandonment risk assessment andmanagement. PIRSA to be advised oncompletion of interim stages.

P Mackey Asappropriateand before3/7/2000

Santos to review EGIS report onremediation of oil spills commissioned byQNTBU.

S Tunstill Prior to3/7/2000

Santos to review report on bio-remediationstudy undertaken at Big Lake and arrangefor plots to be re-sampled.

S Tunstill Prior to3/7/2000

Based on review of reports and results,Santos to amend GAS criteria forremediation of oil spill sites and submit toPIRSA for approval.

S Tunstill Subject tocompletionof above 2

actions.

Santos to provide PIRSA with results ofrecent analysis of Jena #1, #4, LimestoneCreek pipeline (2 sites) and Ulandi #1 (2sites) oil spills.

E Dyer As soon asavailable.

Tanks at Jena #2 facility to be removed andsurface rehabilitated.

A Lahne Whenpractical.

PIRSA to provide S Tunstill with details ofnext Environment Protection Officerstraining course.

T Aust As soon asavailable.

PIRSA to provide formal response toSantosÕ earlier correspondence on proposeddirection of Cooper Creek Oil Spill Study.

R McDonough As soon aspractical.

Santos to advise PIRSA of outcomes offuture discussions and resultant direction ofCooper Creek Oil Spill Study.

C McTaggart Asappropriate.

Santos to undertake analysis of sedimentsamples collected from produced formationwater holding and evaporation ponds for gas

E Dyer Whenaccess

conditions

South Australia Business Unit Ltd Santos

Elly's Mac:Santos_AnnPipeRep.doc 6

Action Responsibility Due Date

and oil satellites. permit.

Santos to consider draft letter on alternativearrangement approval and schedulemeeting with PIRSA to address issues.

S Tunstill 20/4/2000

Santos to review revised draft of Drilling andWorkover Statement of EnvironmentalObjectives and provide comments to PIRSA.

S Tunstill As soon aspractical.

Meeting closed at 3.50 pm

Next Meeting: Monday 9 July 2000 Santos HouseLevel 9, 91 King William Street, AdelaideRoom 9.1 (Strzelecki)at 2.00pm.

South Australia Business Unit Santos Ltd

Appendix 8: Right-of-way Environmental Bulletin

Elly's Mac:Santos AnnPipeRep.doc 1

En

viro

nm

enta

l Bul

leti

n������

Access Tracks on Pipeline

Right-of-WaysGrading of access tracks along pipeline right-of-ways must only beundertaken where the surface is not trafficable and damage to vehicles orinjury to personnel is likely to occur.

· Grading facilitates erosion by disturbing vegetation and soil. Erosion willcreate a rougher surface, which will require ongoing maintenance andincrease costs.

· Grading can destabilise dunes and generally results in minimalimprovement to the trafficability of the access track. Mobile sand duneshave the potential to bury above ground pipelines or expose buried sectionsof pipe resulting in corrosion and safety issues.

· Grading increases the visibility of the right-of-way and therefore increasesthe potential for third party use especially adjacent to public access routes,or within fields where pipeline routes may provide shortcuts. Third partyuse should be discouraged to minimise environmental disturbance andpossible damage to pipelines.

· A common condition of approval by PIRSA for pipeline construction andoperation is that access tracks along pipeline right-of-ways are maintainedas single 4WD tracks only.

· Grading and right-of-way maintenance must be undertaken following consultationwith the Field Services Senior Supervisor using appropriate earthmovingequipment.

Grading should typically only be required in swamp and Òcrab-holeÓareas and should be minimised in all landsystems. Windrows should notbe created under any circumstances.

THIS ACTS AS A REMINDER THAT SABU AIMS TOCONTINUALLY IMPROVE ENVIRONMENTALPERFORMANCE BY REDUCING OPERATIONALIMPACTS

Issued by: Field Services Senior SupervisorApproved by: SABU Environmental Services

Date of Issue: 3 December 1999