Petroleum and Gas (Safety) Regulation 2018 (Qld)

Petroleum and Gas (Safety) Regulation 2018

Chapter 1    Preliminary

Part 1    Introduction

1   Short title

This regulation may be cited as the Petroleum and Gas (Safety) Regulation 2018.

2   Commencement

This regulation commences on 1 September 2018.

Part 2    Interpretation

3   Dictionary

The dictionary in schedule 7 defines particular words used in this regulation.

4   Safety requirements

(1)For section 669 of the Act, a requirement of this regulation, or a standard, code or other document mentioned in this regulation, is a safety requirement if a provision of this regulation prescribes it as a safety requirement.

(2)Otherwise, a requirement of this regulation is not a safety requirement for section 669 of the Act.

5   References to particular terms in this regulation

Unless a contrary intention appears, in this regulation a reference to—

(a)the Act is a reference to the 2004 Act; and

(b)a petroleum tenure includes a reference to a 1923 Act petroleum tenure; and

(c)a petroleum well includes a reference to a well under the 1923 Act.

6   References to standards

(1)In this regulation, unless otherwise stated, a reference to a standard is a reference to—

(a)if the reference states an edition of the standard—the edition of the standard as in force from time to time, including any amendments to the edition; or

(b)otherwise—

(i)for the transition period for a new edition—the edition of the standard as in force immediately before the new edition is published; or

(ii)otherwise—the standard as in force from time to time, regardless of the edition or any changes to the title of the standard.

Example—

‘AS/NZS 1425’ is a reference to the edition of the standard that is currently in force under that designation as amended from time to time, and as remade from time to time with any title.

(2)For a reference mentioned in subsection (1)(b), the title of a standard appearing after a standard’s designation in this regulation is included for information purposes only.

(3)In this section—

transition period, for a new edition of a standard, means the period of 6 months starting on the day the new edition of the standard is published.

Part 3    Preliminary matters prescribed for the Act

7   Meaning of serious injury or illness

A serious injury or illness of a person is an injury or illness that requires the person to have—

(a)immediate treatment as an inpatient in a hospital; or

(b)immediate treatment for any of the following—

(i)the amputation of any part of the person’s body;

(ii)a serious head injury;

(iii)a serious eye injury;

(iv)a serious burn;

(v)the separation of the person’s skin from underlying tissue (for example, degloving or scalping);

(vi)a spinal injury;

(vii)the loss of a bodily function;

(viii)a serious laceration; or

(c)treatment by a doctor within 48 hours of exposure to a substance.

8   Meaning of dangerous incident

A dangerous incident is an incident that puts a person’s health or safety at serious risk because the person is immediately, or may imminently be, exposed to any of the following—

(a)an uncontrolled gas leak;

(b)an uncontrolled escape, spill or leak of another substance;

(c)an uncontrolled implosion, explosion or fire;

(d)an uncontrolled release of pressure;

(e)electric shock;

(f)the fall or release from a height of a substance, plant or other thing;

(g)the collapse, overturning, failure or malfunction of, or damage to, plant;

(h)the collapse or partial collapse of a structure;

(i)the collapse or failure of an excavation or of any shoring supporting an excavation;

(j)the inrush of water, mud or gas in workings;

(k)an uncontrolled movement of plant or another thing.

9   Meaning of critical loss of fuel gas supply

A critical loss of fuel gas supply is a loss of fuel gas supply to consumers if the loss causes a significant disruption to the community, including, for example—

(a)a loss of fuel gas supply to 50 or more residences or places of business; or

(b)a loss of fuel gas supply to a hospital, power station or major event.

10   Prescribed incidents—Act, s 706

For section 706 of the Act, each of the following types of incident is a prescribed incident—

(a)the death of a person;

(b)the serious injury or illness of a person;

(c)a dangerous incident;

(d)an incident at an operating plant that is a fuel gas network that—

(i)causes a critical loss of fuel gas supply; or

(ii)involves serious property damage if the damage could result in a critical loss of fuel gas supply.

11   Activities prescribed for definition of operating plant—Act, s 670

(1)For section 670(5)(a) of the Act, the following fuel gas delivery networks are prescribed for fuel gas other than hydrogen—

(a)a network that includes filling a fuel gas container that has a water capacity of more than 30L with fuel gas;

(b)a network that includes the delivery or supply of fuel gas in a tanker;

(c)a network with a combined water capacity of fuel gas containers of more than 5,000L;

(d)a network that includes dispensing fuel gas to a vehicle.

(2)For section 670(5)(a) of the Act, the following fuel gas delivery networks are prescribed for hydrogen—

(a)a network that includes filling a fuel gas container with hydrogen;

(b)a network that includes the delivery or supply of hydrogen in a fuel gas container;

(c)a network that includes the delivery or supply of hydrogen in a tanker;

(d)a network that includes dispensing hydrogen to a vehicle.

(3)For section 670(5)(d) of the Act, the following activities are prescribed—

(a)the use, at a place, of gas devices if the total gas capacity of the devices at the place is 50GJ/h or more at any time;

(b)the use of fuel gas to produce theatrical or other special effects;

(c)the collection, transportation or use of a gas prescribed under the Petroleum and Gas (General Provisions) Regulation 2017, section 5(1) as petroleum;

Example—

the collection of gas from landfill and its use in power generation

(d)the blending of fuel gases;

(e)the production of hydrogen as a fuel gas.

(4)Subsection (3)(c) does not apply to the use of a biogas produced from a limited capacity biogas system within the meaning of section 724 of the Act.

(5)Subsection (3)(e) does not apply to the production of hydrogen as a fuel gas if the production is an integral part of a fuel cell gas device or fuel cell gas system.

(6)In this section—

fuel cell gas device has the meaning given by the hydrogen safety code.

fuel cell gas system has the meaning given by the hydrogen safety code.

12   Gas device (type A)—Act, s 724

For section 724(1) of the Act, the following devices are prescribed—

(a)each device mentioned in schedule 1;

(b)a small gas engine driven appliance that complies with AS/NZS 5263.1.11 Part 1.11 ‘Small gas engine driven appliances’.

12A   Prescribed gas flares—Act, s 724

For section 724(5) of the Act, definition gas flare, paragraph (b), a device is prescribed if the fuel gas disposed of by the device is biogas or biomethane.

12B    Limited capacity biogas system—Act, s 724

For section 724(5) of the Act, definition limited capacity biogas system, the amount prescribed is 50Kw.

13   Mandatory and preferred standards for particular safety requirements

(1)A standard or other document listed in schedule 2, column 1 is prescribed as a safety requirement for the activity or thing stated opposite the document in column 2.

(2)A standard or other document is a mandatory standard for an activity or thing if column 3 of the schedule, opposite the document and activity or thing, states it is a mandatory standard.

(3)A standard or other document is a preferred standard for an activity or thing if column 3 of the schedule, opposite the document and activity or thing, states it is a preferred standard.

(4)If a mandatory standard or preferred standard allows a competent person, or another person, to grant an exemption from, or change to, the requirements stated in the standard, the exemption or change must be granted or made by the chief inspector.

Example—

An Australian Standard mentioned in schedule 2 allows a competent person to grant an exemption from provisions of the standard. For the purpose of this regulation, the exemption can only be granted by the chief inspector.

(5)If a safety requirement prescribed under this section is inconsistent with a safety requirement prescribed under another provision of this regulation, the safety requirement prescribed under the other provision prevails to the extent of the inconsistency.

14   Complying with mandatory standards for particular safety requirements

If a document is a mandatory standard for a safety requirement, a person must comply with the document to comply with the safety requirement for the activity or thing.

15   Complying with preferred standards for particular safety requirements

(1)If a document is a preferred standard for a safety requirement, a person may comply with the safety requirement in the way stated in subsection (2) or (3).

(2)Subject to subsection (5), the person complies with the safety requirement if the person complies with the document for the activity or thing.

(3)The person complies with the safety requirement if the person—

(a)gives the chief inspector a notice that states the person is not complying with the document for the activity or thing; and

(b)has written evidence showing the level of risk for the activity or thing to which the safety requirement applies is equal to or less than the level of risk that would be achieved for the activity or thing by complying with the document.

Example of written evidence—

a report setting out a risk assessment performed by a competent person

(4)Subsection (5) applies if—

(a)the document allows a person to comply with it by either—

(i)requiring the person to achieve a standard stated in the document, without requiring the person to meet the standard in a particular way (an outcome-based approach); or

Example of outcome-based approach—

The approach outlined in AS/NZS 5601 ‘Gas installations’, Part 1 ‘General installations’, section 2.

(ii)requiring the person to take the steps stated in the document to achieve a standard (a recommended approach); and

Example of recommended approach—

The approach outlined in AS/NZS 5601 ‘Gas installations’, Part 1 ‘General installations’, sections 3 to 6.

(b)the person chooses the outcome-based approach to comply with the document.

(5)The person complies with the safety requirement for the activity or thing if the person—

(a)gives the chief inspector a notice that states the person is using the outcome-based approach for the activity or thing; and

(b)has written evidence showing the level of risk for the activity or thing is equal to or less than the level of risk for the activity or thing that would be achieved by complying with the recommended approach.

Example of written evidence—

a report setting out a risk assessment performed by a competent person

16   Person must give inspector evidence of risk level for preferred standard or outcome-based approach

(1)This section applies if an inspector gives a person mentioned in section 15(3) or (4) a notice that requires the person to give the inspector a copy of the evidence mentioned in section 15(3)(b) or (5)(b) for an activity or thing stated in the notice.

(2)The person must give a copy of the evidence to the inspector within the reasonable period stated in the notice.

Maximum penalty—20 penalty units.

(3)Subsections (4) and (5) apply if the chief inspector reasonably believes the evidence does not show the level of risk for the activity or thing is equal to or less than the level of risk (the required level of risk) that would be achieved by complying with—

(a)for evidence mentioned in section 15(3)(b)—the preferred standard for the activity or thing under section 15(2); or

(b)for evidence mentioned in section 15(5)(b)—the recommended approach for the activity or thing mentioned in section 15(4)(a)(ii).

(4)The chief inspector may give the person a notice that requires the person to, within a stated reasonable period—

(a)give the chief inspector further evidence showing the level of risk for the activity or thing is equal to or less than the required level of risk; or

(b)take steps to achieve a level of risk for the activity or thing that is equal to or less than the required level of risk.

(5)If the person does not comply with the requirement under the notice, the person is taken to have not complied with the safety requirement to which the preferred standard relates.

17   Matters for safety management system for all operating plants

(1)For section 675(1)(u) of the Act, a safety management system for an operating plant must include—

(a)the name of each relevant gas that could be released from the operating plant; and

(b)the lower flammable limit alarm level for an unplanned or uncontrolled release of each relevant gas.

(2)In this section—

lower flammable limit alarm level, for an unplanned or uncontrolled release of a relevant gas, means the concentration, expressed as a percentage, of the released gas in air at which a control system for the plant detailed in the safety management system for the plant is to be activated.

relevant gas means—

(a)a fuel gas; or

(b)a gas that is petroleum; or

(c)a prescribed storage gas.

18   Prescription of generic SMS

For section 675A(3) of the Act, definition generic SMS, the document called ‘Safety management system for gas supply and cylinder distribution business’ published on a Queensland Government website is prescribed for each stage of the following operating plant—

(a)a fuel gas delivery network if—

(i)the combined water capacity of fuel gas containers in the network is not more than 5,000L; and

(ii)the network includes filling a fuel gas container that has a water capacity of more than 30L with fuel gas;

(b)a fuel gas delivery network if the combined water capacity of fuel gas containers in the network is more than 5,000L but not more than 12,000L.

18A    Matters for information notice—Act, s 694A

(1)For section 694A(2) of the Act, the information is—

(a)if the operating plant is being commissioned—that the plant is being commissioned; or

(b)if the operating plant is being decommissioned—that the plant is being decommissioned.

(2)For section 694A(4)(b) of the Act, the notice is to be given by using the online system made available on a Queensland Government website for the purpose.

(3)For section 694A(4)(c)(ii) of the Act, the day is—

(a)for a notice under subsection (1)(a)—at least 20 business days before the operating plant mentioned in the notice is commissioned; or

(b)for a notice under subsection (1)(b)—within 20 business days after the operating plant mentioned in the notice is decommissioned.

Chapter 2    Petroleum

Part 1    Safety requirements

19   Purpose of part

This part prescribes safety requirements in relation to exploring for, and producing, petroleum.

20   Operating plant used for drilling

The operator of a drilling operating plant must ensure the plant is—

(a)fit for all purposes for which it is designed to be used; and

(b)equipped to carry out reasonable remedial measures if unplanned events happen in connection with the operation of the plant.

Example of remedial measures—

recovering lost drill string

21   Operator to ensure competency requirements are met

(1)The operator of a drilling operating plant must ensure each person who works at the plant drilling or servicing a petroleum well or bore meets the competencies for drilling or servicing a petroleum well identified for the person’s position under the drilling and servicing competency standard.

(2)However, a requirement to meet particular competencies under subsection (1) does not apply to a person who is—

(a)undergoing training for the competencies; and

(b)acting under the direct supervision of a person who meets the competencies.

(3)In this section—

drilling and servicing competency standard means the document titled ‘Competency standard for petroleum and gas well drilling and well servicing’ published on a Queensland Government website.

servicing, of a petroleum well or bore, includes—

(a)completing, maintaining or working on the petroleum well or bore; and

(b)plugging and abandoning the petroleum well or bore.

22   General requirements for training and supervision

(1)The petroleum tenure holder for a tenure on which a drilling operating plant is located must ensure the holder’s employees, agents and contractors who are supervising or involved in an activity at the plant are trained in how to assess risk and perform a job safety analysis for carrying out the activity.

(2)The operator of the drilling operating plant must ensure each person involved in the activity who is supervised by, or working under the direction of, the operator is trained in how to assess risk and perform a job safety analysis for carrying out the activity.

(3)The site safety manager for the activity, or the place at the plant where the activity is carried out, must assess the skills, knowledge, competency and experience of each person carrying out the activity and decide—

(a)the appropriate supervision required for the activity; and

(b)whether it is necessary to check the tasks completed by any of the persons, including whether the person followed standard operating procedures for the activity.

23   Training for persons using well completion equipment

(1)The operator of a drilling operating plant must ensure each person installing well completion equipment—

(a)is trained in the standard operating procedure, or the part of the procedure, that applies to the activities the person carries out; and

(b)is made aware of the risks from the production tubing hanger not being landed and secured correctly.

(2)If a person involved in landing the production tubing hanger or securing the tie down bolts for the production tubing hanger is not appropriately qualified for the activity, the operator of the plant must ensure—

(a)a job safety analysis for the activity is carried out; and

(b)the activity is directly supervised by a person who is appropriately qualified for installing well completion equipment.

24   Requirements for job safety analysis in particular circumstances

(1)This section applies if—

(a)there is no standard operating procedure for carrying out an activity at the drilling operating plant; or

Example of an activity for which there is no standard operating procedure—

an activity that is not routinely carried out at the plant

(b)because of a change of circumstances, a standard operating procedure for carrying out an activity at the drilling operating plant is no longer suitable.

Examples of a change in circumstances—

•new equipment is used

•unexpected geological conditions in the petroleum well are experienced

(2)Before the activity is carried out, a job safety analysis must be carried out to assess—

(a)for subsection (1)(a)—the potential risks of the activity; or

(b)for subsection (1)(b)—additional risks because of the change in circumstances.

25   Emergency shutdown system for devices that are sources of ignition

(1)The operator of a drilling operating plant must supply an emergency shutdown system for a device if the device—

(a)may be a source of ignition; and

(b)is located in an area where ignition caused by the device may create a hazard.

(2)The emergency shutdown system must be located far enough away from the drilling operating plant to ensure a person using the system in an emergency is not exposed to more than an acceptable level of risk.

(3)The emergency shutdown system mentioned in this section is in addition to another emergency shutdown system for the device that is located at the plant.

26   Requirement to keep petroleum well pressure low when using well completion equipment

(1)The operator of a drilling operating plant must ensure a flare line is used during the live completion of a petroleum well to keep the pressure in the well as low as reasonably practical until the production tubing hanger is secured and all wellhead equipment for the well is installed.

Example of a way to keep the pressure as low as reasonably practical—

using a flare line off the tubing spool

(2)However, if the operator complies with subsection (3), the operator may allow the live completion of a petroleum well to be carried out—

(a)without using a flare line (an alternative method); or

(b)without keeping the pressure as low as reasonably practical (also an alternative method).

(3)The operator must ensure—

(a)the risks of using the alternative method are assessed in consultation with the persons supervising or involved in the live completion of the well; and

(b)the assessment shows the alternative method has a level of risk that is equal to or less than the level of risk from complying with subsection (1); and

(c)the following persons give the operator written approval for using the alternative method—

(i)the site safety manager for the drilling operating plant;

(ii)the site safety manager for the petroleum well.

(4)In this section—

flare line means a line connected to the rotating head of a drilling operating plant through which gas entering the annulus of the petroleum well is vented to the atmosphere and flared.

live completion, of a petroleum well, means the insertion of well completion equipment into the petroleum well when petroleum is flowing or has the potential to flow from the petroleum well.

27   Detecting and managing leaks at petroleum operating plant

(1)The operator of a petroleum operating plant must ensure the following activities are carried out in a way that complies with the leak management code—

(a)an assessment of the risks from petroleum leaks at the plant;

(b)inspections to detect petroleum leaks at the plant;

(c)remedial work to manage or repair petroleum leaks found at the plant.

(2)The operator must also ensure that petroleum leaks found at the plant are reported in a way that complies with the leak management code.

(3)In this section—

leak management code means the document called ‘Code of practice for leak management, detection and reporting for petroleum operating plant’, published on a Queensland Government website.

petroleum operating plant means an operating plant on the area of a petroleum tenure that consists of 1 or more of the following—

(a)a facility for the distillation, processing, refinement or storage of petroleum (commonly called ‘a processing plant’);

(b)a well site comprised of a petroleum well and the infrastructure above the ground that is joined to the well;

(c)a system of pipelines that connects a well site to a processing plant (commonly called ‘a gathering system’).

28   Requirement to survey the surface location and elevation of a petroleum well or bore

(1)The holder of a petroleum tenure under which a petroleum well or bore is drilled must ensure the surface location and elevation of the well are surveyed—

(a)before, or as soon as practicable after, drilling of the well starts; but

(b)not later than 6 months after the drilling starts.

(2)The survey must be carried out by a person—

(a)who is registered as a surveyor, surveying graduate or surveying associate under the Surveyors Act 2003; or

(b)who holds a corresponding registration as a surveyor in another State.

(3)The survey must be tied to—

(a)the State control survey under the Survey and Mapping Infrastructure Act 2003; and

(b)a survey mark related to the AHD.

(4)The location and elevation of the petroleum well or bore must be surveyed to the level of accuracy required under—

(a)a survey standard that applies to the type of survey and the area in which the survey is being carried out; and

(b)the Survey and Mapping Infrastructure Act 2003.

(5)In this section—

AHD means the Australian height datum adopted by the National Mapping Council of Australia for referencing a level or height back to a standard base level.

survey standard means a survey standard under the Survey and Mapping Infrastructure Act 2003.

29   Survey plan to be submitted to chief executive

(1)If a survey of a petroleum well required under section 28 is completed, the holder of the petroleum tenure must lodge a survey plan for the survey with the chief executive.

(2)The plan must be lodged as soon as practicable, but not later than 3 months, after the survey is completed.

(3)The plan must—

(a)accurately represent the survey carried out; and

(b)be accompanied by a certificate, signed by the person who carried out the survey, that states—

(i)the name of the person; and

(ii)that the survey was carried out as required under the Act; and

(iii)that the plan accurately represents the survey carried out.

(4)If the chief executive considers a lodged survey plan or certificate does not comply with subsection (3), the chief executive may—

(a)require the survey plan or certificate to be amended to comply within a stated period; or

(b)reject the survey plan.

30   Additional downhole survey required for relevant horizontal well or petroleum well or bore intersecting coal seam

(1)This section applies in relation to—

(a)a petroleum well that is a relevant horizontal well; or

(b)a petroleum well, or bore, that intersects a coal seam more than 1m in thickness.

(2)The holder of the petroleum tenure under which the well or bore is drilled must ensure a downhole survey of the well or bore is carried out—

(a)as soon as practicable after drilling of the well or bore starts; but

(b)not later than 3 months after the rig release day for the well or bore.

(3)For a relevant horizontal well, the downhole survey must achieve a level of accuracy that is within—

(a)for inclination, plus or minus 0.5º; and

(b)for azimuth—

(i)plus or minus 1.0º; or

(ii)for each 1,000m of the drilled hole—plus or minus 6m vertically and plus or minus 20m laterally.

(4)However, if the relevant horizontal well intersects another well that is not a relevant horizontal well, the level of accuracy achieved by the downhole survey of the relevant horizontal well must be at least as good as the level of accuracy achieved by a downhole survey required to be carried out of the other well.

(5)For a well (other than a relevant horizontal well) or bore that intersects a coal seam more than 1m in thickness, the downhole survey must achieve a level of accuracy that is within—

(a)for inclination, plus or minus 0.5º; and

(b)for azimuth—

(i)for a well or bore drilled with an inclination of less than 6.0º (taking into account the tolerance of plus or minus 0.5º mentioned in paragraph (a))—

(A)plus or minus 2.0º; or

(B)for each 1,000m of the drilled hole—plus or minus 6m vertically and plus or minus 40m laterally; or

(ii)otherwise—

(A)plus or minus 1.0º; or

(B)for each 1,000m of the drilled hole—plus or minus 6m vertically and plus or minus 20m laterally.

(6)In this section—

rig release day, for a petroleum well or bore, means the day, after the holder of the petroleum tenure decides no further drilling of the well or bore will occur, that the drilling rig is moved so it is no longer above the well or bore.

Part 2    Other requirements

Division 1 Additional requirements for safety management systems for drilling operating plant

31   Purpose of division

This division prescribes the additional matters that must be included in a safety management system for a drilling operating plant under section 675(1)(u) of the Act.

32   Identification of ignition source risks and controls

The safety management system for the drilling operating plant must—

(a)identify and assess the risks from sources, or potential sources, of ignition at the plant; and

Examples of sources, or potential sources, of ignition—

•electrical equipment and wiring

•static electricity or lightning

•frictional sources or hot surfaces

(b)state controls to manage the risks; and

(c)include a program to test the emergency shutdown system mentioned in section 25 at regular intervals.

33   Standard operating procedures for well completion equipment

(1)If the operator of the drilling operating plant installs well completion equipment for the plant, the safety management system for the plant must include the following standard operating procedures—

(a)the manufacturer’s instructions for installing, operating and maintaining the well completion equipment;

(b)a requirement that, before the B section is installed, a trial run of the installation of the production tubing hanger is conducted to confirm the length of each tie down bolt that protrudes from the flange when the bolts are secured correctly (commonly called ‘the tie down bolt extension lengths’);

(c)a requirement that a person who is appropriately qualified for installing well completion equipment verifies that the equipment has been installed correctly.

(2)In this section—

B section means the part of the wellhead equipment that supports the production tubing hanger and into which the production tubing hanger is inserted.

34   Particular risk assessment for drilling near coal mining areas

(1)This section applies to a drilling operating plant that is—

(a)in, or adjacent to, the area of a coal mining lease; or

(b)in an area that the operator of the plant knows, or ought reasonably to know, contains current or abandoned mine workings.

(2)The safety management system for the drilling operating plant must include—

(a)an assessment of the likelihood of a drilling incident happening at the plant; and

(b)the risks for the plant if a drilling incident happens; and

Example of a potential risk—

the risk of drilling using air and creating an explosive mixture

(c)the technical or other measures to control the risks.

(3)In this section—

drilling incident means a petroleum well drilled at an operating plant that intersects—

(a)current or abandoned mine workings; or

(b)broken strata created by mine workings.

mine workings means parts of a coal mine that have been or are being excavated.

Division 2 Other requirements for petroleum wells, bores and holes

35   Drilling petroleum well or bore and converting petroleum well to bore—Act, ss 281, 282 and 283 and 1923 Act, ss 75J, 75K and 75L

(1)The requirement mentioned in subsection (2) is prescribed for—

(a)section 281(1) of the Act and section 75J(1) of the 1923 Act for drilling a petroleum well; and

(b)section 282(2) of the Act and section 75K(2) of the 1923 Act for drilling a bore; and

(c)section 282(3) of the Act for drilling a water injection bore or water observation bore; and

(d)section 75K(3) of the 1923 Act for drilling a water observation bore; and

(e)section 283(1)(b) of the Act and section 75L(1)(b) of the 1923 Act for converting a petroleum well to a bore.

(2)The drilling or conversion must be carried out—

(a)in the way required by the construction and abandonment code; or

(b)in another way approved in writing by the chief inspector.

36   Requirements for plugging and abandoning petroleum well or bore—Act, s 292 and 1923 Act, s 75U

For section 292(4)(a) of the Actand section 75U(4)(a) of the 1923 Act, a petroleum well or bore must be plugged and abandoned—

(a)in the way required by the construction and abandonment code; or

(b)in another way approved in writing by the chief inspector.

37   Requirement to plug shot holes

(1)This section applies if a hole is drilled in the area of a petroleum tenure for use as a shot hole.

(2)The holder of the petroleum tenure must ensure—

(a)as soon as practicable after the hole is no longer required for use as a shot hole—

(i)the hole is plugged with solid material, including, for example, soil, rock or concrete; and

(ii)any area around the hole that has been disturbed by firing an explosive is restored as far as is practicable to its original state; and

(b)if the hole caves in or collapses after it is plugged as required under paragraph (a)—any area damaged because of the cave in or collapse is restored.

Maximum penalty—20 penalty units.

(3)To the extent a requirement under subsection (2) is inconsistent with a relevant environmental condition for the tenure, the relevant environmental condition prevails.

38   Manufacturer’s instructions for well completion equipment

(1)The manufacturer of well completion equipment must—

(a)prepare instructions about the installation, commissioning, use and maintenance of the equipment that comply with subsections (2) to (4); and

(b)ensure the instructions accompany the equipment when it is supplied to the operator of an operating plant.

Maximum penalty—20 penalty units.

(2)The information about each activity mentioned in subsection (1)(a) must be sufficient to ensure a person has the information necessary to carry out the activity correctly and use the equipment safely.

(3)Without limiting subsection (2), the instructions must state a physical method for identifying the position of the tie down bolts for the production tubing hanger relative to the fully secured position of the bolts.

Example of a physical method—

painting the engaged part of the tie down bolt

(4)The instructions relating to the use of the equipment must prominently state—

(a)any restrictions on the use of the equipment imposed by the manufacturer; and

(b)any special precautions that should be taken to ensure the equipment is used safely.

Chapter 3    Coal mining and overlapping areas

Part 1    Preliminary

39   Purpose of chapter

This chapter—

(a)prescribes requirements about exploring for or producing petroleum to ensure those activities do not adversely affect the safe and optimal mining, or future mining, of coal; and

(b)imposes obligations on an operator of an operating plant in an overlapping area.

40   Application of chapter

This chapter applies in relation to an operating plant in the area of a petroleum authority or 1923 Act petroleum tenure.

41   Definitions for chapter

In this chapter—

acceptable level, of risk to a person from coal mining operations, see the Coal Mining Safety and Health Act 1999, section 29.

authorised activities operating plant means an operating plant under section 670(6) of the Act.

joint interaction management plan see section 705B(1)(a) of the Act.

overlapping area see section 705(a) of the Act.

relevant coal mining area, for an operating plant in or adjacent to the area of a coal mining lease, means the area of the coal mining lease.

Part 2    Safety requirements

Division 1 Preliminary

42   Purpose of part

This part prescribes safety requirements for the operating plant.

Division 2 Requirements for all operating plants

43   Application of division

The safety requirements in this division apply subject to section 53.

Note—

Section 53 prescribes additional safety requirements, and provides for alternative safety requirements, for the drilling of particular petroleum wells, bore or voids.

44   [Repealed]

45   Requirement to remove particular equipment from coal seam

(1)The operator of the operating plant must use the operator’s best endeavours to ensure all prescribed equipment that is in, or immediately adjacent to, a coal seam in a petroleum well or bore at the plant is removed before the well or bore is plugged and abandoned.

(2)If the prescribed equipment can not be removed using the operator’s best endeavours, the operator must ensure—

(a)the location of the equipment is surveyed before the well or bore is plugged and abandoned; and

(b)details of the equipment and its location are included in—

(i)an end of tenure report under section 546 of the Actor section 76 of the 1923 Act; and

(ii)a petroleum well or bore abandonment report under the Petroleum and Gas (General Provisions) Regulation 2017.

(3)The survey must be carried out—

(a)by a person mentioned in section 28(2); and

(b)to the level of accuracy mentioned in section 28(4); and

(c)if section 30 applies to the petroleum well or bore—to the level of accuracy required for the well or bore under section 30(3), (4) or (5).

(4)In this section—

prescribed equipment means—

(a)metal equipment, other than casing; and

(b)other equipment that may create a hazard to coal mining operations.

Examples of metal equipment—

drilling equipment and geophysical logging tools

46   Requirement to cement particular voids in a petroleum well

(1)This section applies to plugging and abandoning a petroleum well at the operating plant if—

(a)a void is created by stimulating a coal seam in the well; and

(b)the void is large enough to adversely affect—

(i)the safe and optimal future mining of coal from the seam; or

(ii)the integrity of the natural underground reservoir in which the void is created.

(2)The operator must ensure that, in plugging and abandoning the well, the void is filled with as much cement as is reasonably practicable.

(3)The cement used to fill the void must not be so strong that it unduly prevents the future optimal mining of coal from the seam.

(4)This section applies in addition to the standard abandonment requirements for the well.

Division 3 Additional requirements for operating plants in or adjacent to the area of a coal mining lease

47   Application of division

This division applies if the operating plant is in, or adjacent to, the area of a coal mining lease.

48   Requirement to stop and not resume particular activities

(1)The operator of the operating plant must ensure an activity for which the operating plant is being used stops immediately if the operator becomes aware, or ought reasonably to be aware, that—

(a)the activity creates a risk to a person who is carrying out coal mining operations in the relevant coal mining area; and

(b)the risk is not at an acceptable level.

Note—

See also section 699A of the Act.

(2)The operator must ensure the activity does not resume until the operator has taken all reasonable and necessary steps to reduce the level of risk to an acceptable level.

Division 4 Additional requirements for operating plants in overlapping areas

49   Application of division

(1)This division applies if the operating plant is in an overlapping area.

(2)In this division, a reference to the site senior executive is a reference to the site senior executive for the coal mine in the overlapping area.

50   Additional information required for joint interaction management plan—coordination of obligations

(1)For section 705C(1)(i) of the Act, the joint interaction management plan must describe the way the operator of each operating plant in the overlapping area and the site senior executive for the coal mine intend to communicate about, and coordinate, each of the following obligations applying for the operating plant and the coal mine—

(a)emergency obligations;

(b)incident response obligations;

(c)induction training obligations;

(d)information exchange obligations;

(e)vehicle safety obligations.

(2)In this section—

emergency obligations means—

(a)for the coal mine—the obligations under the Coal Mining Safety and Health Regulation 2017, chapter 2, part 5; and

(b)for the operating plant—the obligations under—

(i)a safety management system about the matters mentioned in section 675(1)(l) of the Act; and

(ii)section 693(d) and (e) of the Act.

incident response obligations means—

(a)for the coal mine—the obligations under the Coal Mining Safety and Health Act 1999, part 11; and

(b)for the operating plant—the obligations under sections 705D, 706 and 707 of the Act.

induction training obligations means—

(a)for the coal mine—the obligations under the Coal Mining Safety and Health Regulation 2017, sections 82(2)(a) and 83; and

(b)for the operating plant—the obligations under section 693(a) of the Act.

information exchange obligations means—

(a)for the coal mine—the obligations under the Common Provisions Act, section 154; and

(b)for the operating plant—the obligations under section 51.

vehicle safety obligations means—

(a)for the coal mine—the obligations under the Coal Mining Safety and Health Regulation 2017, sections 66, 74, 76, 128 and 135; and

(b)for the operating plant—the obligations under section 52.

51   Requirement to provide notice and report to site senior executive about hydraulic fracturing

(1)This section applies if—

(a)the operating plant is an authorised activities operating plant; and

(b)underground coal mining operations are carried out, or are to be carried out, in the overlapping area.

(2)The operator of the operating plant must provide a copy of each of the following to the site senior executive—

(a)a notice lodged under the Petroleum and Gas (General Provisions) Regulation 2017, section 33 or 34;

(b)a report lodged under the Petroleum and Gas (General Provisions) Regulation 2017, section 45.

(3)The operator must provide a copy of the notice or report as soon as practicable after it is lodged.

52   Requirements for vehicle safety

(1)This section applies if coal mining operations take place in the overlapping area.

(2)The operator of the operating plant and the site senior executive must—

(a)assess the risks from the movement of vehicles in the overlapping area; and

(b)agree on the requirements that will apply to ensure the safe movement of vehicles in the overlapping area.

(3)In complying with subsection (2), the operator and site senior executive must consider whether the requirements should require the operator to comply with 1 or more vehicle safety provisions.

(4)The requirements agreed under subsection (2)(b) must be included in the joint interaction management plan for the overlapping area.

(5)In this section—

vehicle safety provision means the Coal Mining Safety and Health Regulation 2017, sections 66, 74, 76, 128 or 135.

52A   Steel casing not to be used in relevant horizontal wells in particular overlapping areas

(1)This section applies if the operating plant is in an overlapping area mentioned in section 705(a)(i) or (iii) of the Act.

(2)The operator of the operating plant must ensure steel casing is not used to drill or complete a relevant horizontal well.

(3)The safety requirement in this section applies subject to section 53.

Note—

Section 53 prescribes additional safety requirements, and provides for alternative safety requirements, for the drilling of particular petroleum wells, bores or voids.

53   Requirements for petroleum wells, bores and voids

(1)This section applies if the overlapping area is subject to—

(a)either—

(i)an authority to prospect granted before or after the relevant day; or

(ii)a petroleum lease granted after the relevant day, other than a replacement tenure under section 908(2) of the Act; and

(b)a coal mining lease granted, or an application for a coal mining lease made, after the relevant day.

(2)If the coal mining lease is for an underground coal mine, the additional safety requirements mentioned in sections 54, 55 and 56 apply to a petroleum well, bore or void drilled in the overlapping area after the relevant day.

(3)If the coal mining lease is for a surface coal mine, the additional safety requirements mentioned in section 55 apply to a petroleum well, bore or void drilled in the overlapping area after the relevant day.

(4)If the standard safety requirements for the petroleum well, bore or void are inconsistent with the additional safety requirements, the standard safety requirements do not apply to the well, bore or void to the extent of the inconsistency.

(5)Despite subsections (2) and (3), the resource authority holders for the overlapping area may agree on a method or procedure for an activity carried out in relation to the petroleum well, bore or void (an alternative safety requirement) that—

(a)does not comply with the additional safety requirements for the activity; and

(b)achieves a level of risk equal to or less than the level of risk that would be achieved by complying with the additional safety requirements for the activity.

(6)If the resource authority holders agree on an alternative safety requirement for a petroleum well, bore or void—

(a)the standard safety requirements do not apply to the activity to the extent the standard safety requirements are inconsistent with the alternative safety requirement; and

(b)the alternative safety requirement for the activity must be included in the joint interaction management plan for the overlapping area.

Note—

See section 705B(1)(c) of the Actfor the requirement to comply with the joint interaction management plan.

(7)In this section—

additional safety requirements, for a petroleum well, bore or void, means the requirements applying to the well, bore or void under section 54, 55 or 56.

relevant day means 27 September 2016.

standard safety requirements, for a petroleum well, bore or void, means the requirements applying to the well, bore or void under section 45, 46 or 52A.

54   Additional safety requirements—casing for petroleum wells and bores

(1)If the operating plant is being used to drill a petroleum well or bore in the overlapping area, the operator of the operating plant must ensure an approved casing is used to drill or complete the well or bore.

(2)If steel casing is used to drill or complete the petroleum well or bore, the operator must ensure—

(a)the resource authority holders for the overlapping area agree to the spacing and layout of the steel casing; and

(b)the steel casing is removed when the petroleum well or bore is abandoned unless the site senior executive agrees to the steel casing remaining in the well or bore.

(3)The resource authority holders must ensure an agreement under subsection (2)(b) is included in the joint development plan or the joint interaction management plan for the overlapping area.

(4)In this section—

approved casing means a type of casing agreed to by the resource authority holders for the overlapping area.

joint development plan see the Common Provisions Act, section 103.

55   Additional safety requirements—removal from and loss of prescribed equipment in petroleum wells and bores

(1)If the operating plant is being used to drill a petroleum well or bore in the overlapping area, the operator of the operating plant must—

(a)ensure adequate equipment for the following purposes is available for use when drilling operations are being carried out—

(i)to prevent or mitigate the loss of prescribed equipment in the well or bore;

(ii)to recover prescribed equipment lost in the well or bore; and

(b)use the operator’s best endeavours to ensure all prescribed equipment that is in, or immediately adjacent to, a coal seam in the well or bore at the plant is removed before the well or bore is plugged and abandoned.

(2)If prescribed equipment is lost in the petroleum well or bore, the operator must—

(a)within 24 hours after the equipment is lost—notify the site senior executive about the loss; and

(b)within 3 days after the equipment is lost—consult with the chief inspector about the period for which efforts to recover the lost equipment must be made; and

(c)ensure efforts are made to recover the lost equipment; and

(d)abandon the efforts under paragraph (c) only if the chief inspector consents to the efforts being abandoned.

(3)In this section—

prescribed equipment means—

(a)metal equipment, other than casing; and

(b)other equipment or material that may create a hazard to coal mining operations.

56   Additional safety requirements—requirement to fill wells, bores and voids etc.

(1)This section applies—

(a)if a petroleum well, bore or void is being plugged and abandoned at the operating plant; and

(b)in addition to the standard abandonment requirements for a petroleum well or bore.

(2)The operator of the operating plant must ensure—

(a)the petroleum well, bore or void is filled with cement from the bottom of the well, bore or void to the surface of the well, bore or void, unless the site senior executive otherwise agrees; and

(b)packers and fluids are not left in the well, bore or void.

Part 3    Other requirements

57   Additional matters relating to coal mining for safety management system

(1)For section 675(1)(u) of the Act, a safety management system for the operating plant must—

(a)for an operating plant used to drill or complete a petroleum well—identify and assess the potential risks to the safe and optimal mining, or future mining, of coal that may be created by the proposed stimulation of a coal seam in the well, having regard to each of the following—

(i)the proposed method of stimulation;

(ii)the predicted characteristics of the strata immediately above and below the coal seam;

(iii)the stress regime of the coal seam and surrounding strata;

(iv)information reasonably available to the operator of the plant about similar stimulation cases; and

(b)for an operating plant in, or adjacent to, the area of a coal mining lease—

(i)identify and assess the potential risks to the safe and optimal mining, or future mining, of coal in the relevant coal mining area from the operation of the operating plant; and

(ii)state measures to minimise the risk.

Example—

a buffer zone or area adjacent to the boundary of the relevant coal mining area in which a particular activity must not be carried out at the operating plant

(2)In this section—

similar stimulation cases, for the stimulation of a coal seam in a petroleum well, means previous instances involving stimulation of a coal seam in a petroleum well using similar methods and in similar geological and geotechnical conditions.

58   [Repealed]

59   Coal seam gas potential hazard guide

(1)The coal seam gas potential hazard guide in schedule 3 is a list of potential hazards to the current or future mining of coal that may be created by an operating plant used to explore for, or produce, petroleum.

(2)The purpose of the guide is to help the operator of the operating plant identify the activities that, if carried out at the plant, may affect the safe and optimal mining, or future mining, of coal as required under the Act.

Note—

See, for example, sections 675 and 705C of the Act.

60   Additional requirement to stop activities in particular circumstances

(1)If the operating plant is in, or adjacent to, the area of a coal mining lease, the operator of the operating plant must ensure an activity the operating plant is being used for stops immediately if—

(a)the operator becomes aware, or ought reasonably to be aware, that the activity creates an adverse effect on the optimal way of carrying out coal mining operations in the relevant coal mining area; and

(b)the holder of the coal mining lease has not consented in writing to the activity being carried out.

Maximum penalty—20 penalty units.

(2)The operator must ensure the activity does not resume until—

(a)the activity is modified to not adversely affect the optimal way of carrying out coal mining operations; or

(b)the holder of the coal mining lease consents in writing to the activity being carried out.

Maximum penalty—20 penalty units.

Part 4    Exemptions

61   Definitions for part

In this part—

alternative safety measure, in relation to a relevant requirement, means a system, method or procedure that—

(a)does not comply with the relevant requirement that is the subject of an application for exemption under section 63; and

(b)achieves a level of risk equal to or less than the level of risk that would be achieved by complying with the requirement.

applicant, for an exemption, see section 63(1).

chief inspector of coal mines means the chief inspector of coal mines under the Coal Mining Safety and Health Act 1999.

operating plant requirement means a relevant requirement other than the requirement under section 30.

relevant coal or oil shale mining tenement holder, in relation to an operating plant for which an application is made under section 63, means the holder of a coal or oil shale mining tenement if—

(a)the operating plant is located in the area of the tenement; or

(b)all of the following apply—

(i)the tenement is a coal or oil shale mining lease;

(ii)the application is for an exemption from complying with a relevant requirement other than the requirement under section 52A;

(iii)the operating plant is located adjacent to the area of the tenement.

relevant requirement means—

(a)a requirement under section 30, 45, 46, 52A, 54, 55, 56 or 57; or

(b)a standard abandonment requirement.

requirement includes part of a requirement.

62   Chief inspector may give exemption

The chief inspector may, with the consent of the chief inspector of coal mines—

(a)give the operator, or proposed operator, of the operating plant an exemption from complying with a stated operating plant requirement in relation to any of the following—

(i)a petroleum well drilled or to be drilled under a stated petroleum tenure;

(ii)a stated petroleum well;

(iii)a stated coal seam; or

(b)give the holder of a petroleum tenure an exemption from complying with a requirement under section 30 in relation to the tenure.

63   Application for exemption

(1)Either of the following (the applicant) may apply to the chief inspector for an exemption under this part—

(a)the operator or proposed operator of the operating plant;

(b)the holder of a petroleum tenure.

(2)The application must—

(a)be in the approved form; and

(b)contain the information necessary to enable the chief inspector to decide the application; and

(c)if the applicant proposes to implement an alternative safety measure—contain details of the proposed measure; and

(d)be lodged at the office of the chief inspector.

64   Notice of application to be given to relevant coal or oil shale mining tenement holder

(1)After receiving an application for an exemption under this part, the chief inspector must give a relevant coal or oil shale mining tenement holder—

(a)a copy of the application; and

(b)a notice that states the holder may lodge submissions about the application at the office of the chief inspector within 20 business days after receiving the notice (the submission period).

(2)The holder must give a copy of any submissions lodged by the holder to the applicant within the submission period.

(3)The holder may give notice that the holder does not intend to lodge a submission to the chief inspector before the submission period ends.

(4)If the holder lodges submissions within the submission period, the chief inspector must give the applicant at least 15 business days after the lodging of the holder’s submissions to respond to the submissions in writing.

65   Consideration of application by chief inspector

(1)The chief inspector must consider—

(a)the application for exemption; and

(b)any submissions lodged by a relevant coal or oil shale mining tenement holder under section 64 within the submission period; and

(c)any response made by the applicant under section 64(4) within the stated period.

(2)The application must not be decided unless—

(a)section 64(2) has been complied with; or

(b)the holder has given a notice to the chief inspector under section 64(3).

(3)The chief inspector—

(a)in deciding the application, may seek advice or recommendations from a technical advisory committee for coal seam gas established under section 732B of the Act; and

(b)is not required to give the exemption merely because a relevant coal or oil shale mining tenement holder agrees to the exemption.

(4)If advice or recommendations obtained by the chief inspector under subsection (3)(a) are adverse to the applicant, before making a decision about whether to grant the exemption the chief inspector must give the applicant—

(a)a copy of the advice or recommendations; and

(b)at least 15 business days to lodge submissions to the chief inspector about the advice or recommendations.

66   Chief inspector to decide application

(1)The chief inspector may—

(a)with the consent of the chief inspector of coal mines, give the exemption, with or without conditions; or

(b)refuse the application.

(2)The chief inspector may give the exemption if the chief inspector is reasonably satisfied—

(a)for an exemption from complying with section 30—a coal seam intersected by the petroleum well under the exemption is not likely to be mined; and

(b)for an exemption from complying with an operating plant requirement—

(i)the likely impact on the future safe and optimal mining of coal is low; and

(ii)the likely level of risk to a person or property associated with the mining or future mining of coal is an acceptable level; and

(iii)the likely impact and level of risk are easily and reliably quantifiable.

(3)Subsection (2) does not apply if—

(a)the applicant is the holder of a 1923 Act lease, or the operator or proposed operator of a well under the 1923 Act in the area of a 1923 Act lease, that was in effect immediately before 31 December 2004; and

(b)the area of the lease does not include land that is in the area of a coal or oil shale mining tenement.

(4)If subsection (2) does not apply, in deciding the application, the chief inspector must consider optimising the development and use of the State’s coal, oil shale and petroleum resources to maximise the benefits for all Queenslanders.

(5)Without limiting subsection (1), a condition may require the applicant to comply with a stated alternative safety measure.

(6)The chief inspector must give notice of the decision to—

(a)the applicant; and

(b)if a relevant coal or oil shale mining tenement holder lodged a submission about the application—the holder.

Chapter 4    Pipelines

Part 1    Safety requirements

67   Pipelines

(1)This section prescribes a safety requirement for a pipeline other than a distribution pipeline that is part of a distribution system.

(2)The operator of the pipeline must ensure the design, construction, operation, maintenance and abandonment of the pipeline complies with 1 of the following (each a pipeline code or standard)—

(a)‘APGA code of practice upstream polyethylene gathering networks - CSG industry’ published by the Australian Pipelines and Gas Association Limited ACN 098 754 324;

(b)AS/NZS 4645;

(c)AS 2885.

68   Processed natural gas transported through a pipeline

(1)This section prescribes a safety requirement for processed natural gas that—

(a)contains oil; and

(b)is supplied for transport through a pipeline.

Note—

See section 626(2) of the Act.

(2)The supplier of the gas must ensure that it does not contain more than 20mL of oil for each terajoule of gas.

69   Stated pipeline licence incidental activities

(1)This section prescribes a safety requirement for a stated pipeline licence incidental activity carried out in the area of a pipeline licence.

(2)A relevant person must not carry out the stated pipeline licence incidental activity if, because of the activity, a relevant pipeline will, or is likely to, stop complying with the pipeline code or standard used by the operator for the design, construction, operation, maintenance or abandonment of the pipeline.

(3)In this section—

relevant person means—

(a)the holder of the pipeline licence; or

(b)a person acting for the holder of the pipeline licence.

relevant pipeline, for a pipeline licence, means either of the following—

(a)an existing pipeline in the area of the licence;

(b)a pipeline in the area of the licence for which construction has started, but is not complete.

Part 2    Other requirements

70   Requirement for strategic pipeline to be inspected

(1)The holder of a pipeline licence for a strategic pipeline must ensure the pipeline is inspected—

(a)if a system for pipeline integrity is in place for the pipeline under AS 2885—at the times required under the system, but at least—

(i)within 7 years after the pipeline first becomes operational; and

(ii)once in every subsequent 10-year period; or

(b)otherwise—at least once in every 5-year period.

(2)In this section—

inspected, for a pipeline, means the inside of the pipeline is inspected to identify whether the pipeline is fit for the purpose for which it is used.

strategic pipeline means a pipeline listed in schedule 4.

71   Prescribed way for decommissioning pipelines—Act, s 559

For section 559(1) of the Act, a pipeline that is subject to a pipeline licence must be decommissioned in a way that complies with the pipeline code or standard used for its operation.

Chapter 5    Fuel gas networks

Part 1    Preliminary matters

72   Prescribed quality for fuel gas

(1)For section 620(1) of the Act, the prescribed quality is—

(a)for LPG used for heating—the quality required to comply with—

(i)the requirement that the average mole content of propylene in the fuel gas at the point of odourisation, calculated each day, must not be more than 50%; and

(ii)AS 4670 ‘Commercial propane and commercial butane for heating purposes’; and

(b)for processed natural gas—the quality required to comply with AS 4564 ‘Specification for general purpose natural gas’; and

(c)for hydrogen—the quality required to comply with—

(i)AS ISO 19880.8 ‘Gaseous hydrogen, Fuelling stations, Part 8: Fuel quality control’; or

(ii)SAE J2719 ‘Hydrogen fuel quality for fuel cell vehicles’.

(2)In this section—

average mole content, of propylene in fuel gas, means the sum of the daily percentage measurements of the mole content of propylene in the fuel gas made for each day in the 90-day period ending on the day the calculation is made, divided by 90.

73   Prescribed odour for fuel gas

(1)For section 627 of the Act, the prescribed odour is an odour that—

(a)is distinct, unpleasant and non-persistent; and

(b)is of an intensity indicating the presence of gas down to one-fifth of the lower flammability limit; and

(c)for LPG—exists throughout the LPG’s vaporisation range from its liquid state.

(2)LPG is taken to have the prescribed odour if it contains 25g of ethyl mercaptan for each tonne of liquid LPG.

(3)Subsection (1) does not apply in relation to hydrogen if—

(a)the hydrogen is supplied to a hydrogen fuel gas system; and

(b)the person who supplies the hydrogen complies with part 7.1 of the hydrogen safety code in relation to the hydrogen.

(4)In this section—

lower flammability limit means the lowest concentration of the fuel gas in air that will ignite.

74   Who is the operator of certain fuel gas delivery networks

The operator of a fuel gas delivery network that is not an operating plant is the person who is responsible for managing and ensuring the safe operation of the network.

Part 2    Safety requirements for fuel gas networks

75   Purpose of part

This part prescribes safety requirements for fuel gas networks.

76   Operator must minimise leakages of fuel gas

The operator of a fuel gas network must take all reasonable and necessary steps to ensure fuel gas does not leak from—

(a)if the network is a distribution system—any part of the network; or

(b)if the network is a fuel gas delivery network—a fuel gas container or gas fitting that is part of the network.

77   Required gauge pressure

(1)This section applies to a person who—

(a)connects a consumer’s gas system to a fuel gas network for the first time; or

(b)starts to supply fuel gas to a consumer’s gas system through a fuel gas network for the first time.

(2)The person must ensure the fuel gas is supplied, at the relevant point, at a gauge pressure of at least—

(a)for LPG in a vaporous state—3.0kPa; or

(b)for processed natural gas—1.25kPa; or

(c)for hydrogen—2.0kPa.

(3)Fuel gas may be supplied at a higher pressure if the higher pressure does not adversely affect the performance of the gas system.

(4)In this section—

relevant point means the outlet of—

(a)if there is a meter for the consumer’s gas system—the meter; or

(b)otherwise—the regulator nearest to the consumer’s gas system.

78   When operator must not supply fuel gas to gas system

The operator of a fuel gas network, other than a network that dispenses fuel gas to a vehicle, must not supply fuel gas to a gas system if the operator knows, or ought reasonably to know, the gas system does not comply with—

(a)a safety requirement under this part, other than this section; or

(b)a safety requirement mentioned in schedule 2, part 2, 3 or 4.

79   Testing, inspection and maintenance of fuel gas containers

(1)The owner of a fuel gas container must ensure the container is tested, inspected and maintained in accordance with the safety requirements that apply to the container under schedule 2, part 4.

(2)This section applies whether or not the owner of the container sold, or otherwise supplied on a commercial basis, the fuel gas in the container to another person.

80   Operator of fuel gas delivery network must ensure only particular persons supply fuel gas through the network

The operator of a fuel gas delivery network must ensure another person does not supply fuel gas through the network to a consumer’s gas system unless—

(a)there is a safety management system for the network; and

(b)the other person is recorded as a fuel gas supplier for the network in the system; and

(c)the operator is reasonably satisfied the other person has the skills, knowledge and experience required under the system to supply fuel gas through the network.

81   Design etc. of distribution system

(1)The operator of a distribution system must ensure the design, construction, operation, maintenance and abandonment of the distribution system complies with—

(a)to the extent the distribution system transports hydrogen, or a blend of hydrogen and another fuel gas with a hydrogen content that is more than 15% by volume—part 5.4.1 of the hydrogen safety code; or

(b)otherwise—AS/NZS 4645.

(2)Despite subsection (1)(b)—

(a)if AS/NZS 4645 does not apply to a particular distribution pipeline that is part of the distribution system, the operator must ensure the design, construction, operation, maintenance and abandonment of the pipeline complies with AS 2885; and

(b)if AS 2885 and AS/NZS 4645 both apply to a particular distribution pipeline that is part of the distribution system, the operator must ensure the design, construction, operation, maintenance and abandonment of the pipeline complies with either AS 2885 or AS/NZS 4645.

Part 3    Other requirements for fuel gas networks

82   Requirements to be complied with before supplying fuel gas to a gas system

(1)This section applies to the operator of a fuel gas network, other than a network that dispenses fuel gas to a vehicle, who proposes to start supplying fuel gas through the network to a gas system if—

(a)the gas system has not previously been supplied with fuel gas by a fuel gas network; or

(b)for a fuel gas network that is a fuel gas delivery network and to the extent that paragraph (a) does not apply—

(i)the fuel gas is LPG or hydrogen; and

(ii)the gas system is no longer pressurised because the connection of LPG or hydrogen supplied through the network has been interrupted.

Example for paragraph (b)—

a cylinder of LPG or hydrogen is removed from a gas system other than to exchange the cylinder

(2)Before starting to supply fuel gas to the gas system, the operator of the network must ensure—

(a)a test point is installed on, or immediately downstream of, the regulator for the gas system that supplies fuel gas at the pressure mentioned in section 77(2); and

(b)the pressure at which fuel gas will be supplied to the gas system complies with section 77; and

(c)the gas system is checked in accordance with a relevant method and the check confirms there is no significant leakage of fuel gas from the gas system.

Maximum penalty—20 penalty units.

(3)If subsection (1)(a) applies and the gas system is not installed at an operating plant, the operator of the fuel gas network must ensure that, within 30 days after the operator becomes aware that gas has been used by the gas system, the installer of the gas system—

(a)issues a gas compliance certificate; and

(b)gives a copy of the certificate to the operator.

Maximum penalty—20 penalty units.

(4)An operator is taken to be aware that gas has been used by the gas system if—

(a)the operator has read or received data from a meter for the gas system that shows gas has been used; or

(b)the operator has supplied LPG or hydrogen for the system.

(5)In a proceeding for an offence against subsection (3), it is a defence for the operator to prove that the operator—

(a)obtained the licence number of the installer of the gas system before a meter or fuel gas container for the gas system was installed; and

(b)took reasonable steps to obtain a gas compliance certificate; and

(c)gave the chief inspector a written report, for each quarterly period, that states—

(i)the licence number of the installer of each gas system the operator supplied fuel gas to during the quarterly period for which the installer has not given the operator a gas compliance certificate; and

(ii)the addresses of the premises where each gas system was installed.

(6)In this section—

quarterly period means each of the following periods in a year—

(a)1 January to 31 March;

(b)1 April to 30 June;

(c)1 July to 30 September;

(d)1 October to 31 December.

relevant method, for checking a gas system, means—

(a)a method for checking a gas system detailed in a fuel gas network’s safety management system if the method under the system is capable of—

(i)checking the pressure of the gas system; and

(ii)identifying a significant leakage of fuel gas from the gas system; or

(b)otherwise—the gas system pressure test under AS/NZS 5601.1 ‘Gas installations’, Part 1 ‘General installations’.

significant leakage, of fuel gas from a gas system, means, a leakage of the fuel gas that, if the system was locked up for 10 minutes, would result in a discernible drop in pressure in the gas system as shown on a calibrated and appropriately scaled gauge.

83   Operator must arrange attendance for particular incidents

(1)This section applies if—

(a)an incident involving, or that may involve, fuel gas supplied through a fuel gas network is reported to the operator of the network; and

(b)the location of the incident is reported to the operator, whether or not the location is in, or part of, the fuel gas network; and

(c)the operator reasonably believes the incident is happening when it is reported.

(2)The operator must ensure the number of competent persons and the equipment sufficient to deal with the incident go to the reported location of the incident as quickly as possible.

Maximum penalty—20 penalty units.

84   Operator must keep records

(1)The operator of a fuel gas network, other than a network that dispenses fuel gas to a vehicle, must keep the following records for a gas system supplied with fuel gas by the network for the required period—

(a)if the holder of a gas work licence or gas work authorisation installs the gas system—a record of the number of the holder’s licence or authorisation;

Note—

The number of the holder’s gas work licence or gas work authorisation is stated in the gas compliance certificate for the gas system.

(b)a record of the number of the gas compliance certificate, or certificate under section 697(3) of the Act, for the installation of the gas system;

(c)a record of the day fuel gas is first made available to the gas system;

(d)for a check of a gas system carried out under section 82(2)(c)—a record of the relevant method used to check the gas system and the result of the check.

Maximum penalty—20 penalty units.

(2)In this section—

required period means the period for which fuel gas is supplied to the gas system through the fuel gas network.

85   Fuel gas delivery network operator must give chief inspector contact details

The operator of a fuel gas delivery network (the supplying operator) must, at least once each year or when otherwise requested by an inspector, give the chief inspector the name, business address, email address and telephone number of each operator of a fuel gas delivery network that the supplying operator has supplied fuel gas to in the previous 1-year period.

86   [Repealed]

87   [Repealed]

88   [Repealed]

89   [Repealed]

90   [Repealed]

Chapter 6    Gas systems

Part 1    Preliminary

91   Who is the relevant network operator for gas systems

The relevant network operator for a gas system to which fuel gas is supplied by a fuel gas network is—

(a)if the fuel gas network is an operating plant—the operator of the plant; or

(b)otherwise—the person who is responsible for managing and ensuring the safe operation of the network.

Part 2    Gas systems supplied with fuel gas by particular fuel gas networks

92   Application of part

This part applies in relation to a gas system supplied, or to be supplied, with fuel gas through a fuel gas network other than a network that dispenses fuel gas to a vehicle.

93   Requirements to be complied with before carrying out particular gas work

(1)This section applies to gas work involving—

(a)the installation of a gas system that—

(i)is to be supplied with fuel gas through a fuel gas network that is a distribution system; and

(ii)has not previously been supplied with fuel gas through a distribution system; or

(b)the connection of 1 or more additional major use gas devices to an existing gas system that is supplied with fuel gas through a fuel gas network that is a distribution system.

(2)Before a person carries out the gas work, the person must notify the relevant network operator for the gas system about—

(a)the nature of the work to be carried out; and

(b)the anticipated demands of the gas system or major use gas device on the network’s supply of fuel gas.

Maximum penalty—10 penalty units.

(3)In this section—

major use gas device means a gas device (type A), or gas device (type B), with the capacity to consume more than 100MJ in an hour.

94   Persons to be given copy of relevant certificate for installation at operating plant

(1)This section applies if either of the following (each the installer) installs plant or equipment for a gas system at an operating plant or proposed operating plant—

(a)the holder of a gas work licence or gas work authorisation;

(b)a person who installs the plant or equipment under a safety management system, other than a generic SMS, and has been assessed under the system as competent to perform the installation.

(2)Before making the plant or equipment operational, the installer must give a copy of the relevant certificate for the installation to—

(a)the owner or operator of the operating plant or proposed operating plant when the installer completes the installation; and

(b)the relevant network operator for the gas system within 5 business days after the installer completes the installation.

Maximum penalty—20 penalty units.

(3)In this section—

operator, of a proposed operating plant, means the person who will be the operator of the plant when it becomes operational.

relevant certificate means the certificate under section 697(3) of the Act.

95   Prescribed matters for giving gas compliance certificate for installation not at operating plant—Act, s 734

(1)This section applies if the holder of a gas work licence or gas work authorisation installs all or part of a gas system other than at an operating plant or proposed operating plant.

(2)For section 734(3) of the Act, the holder must give the gas compliance certificate to—

(a)the owner, operator or proposed operator of the gas system when the holder completes the installation; and

(b)the relevant network operator for the gas system within 5 business days after the holder completes the installation.

96   [Repealed]

97   General obligations of owner of a gas system

(1)The owner of a gas system must take all reasonable steps to ensure—

(a)a suitably qualified person carries out the installation, servicing, repair, decommissioning and disposal of all or part of the gas system; and

(b)if a suitably qualified person or an inspector notifies the owner that the gas system is unsafe, the gas system is not used until it is safe.

Maximum penalty—20 penalty units.

(2)For this section and section 98, owner includes a person in possession of a gas system under—

(a)an agreement for sale; or

(b)a hire purchase agreement; or

(c)a lease; or

(d)any other similar arrangement.

(3)In this section—

suitably qualified person, to carry out gas work for a gas device, means—

(a)for a gas system that includes a gas device (type A)—the holder of a gas work licence that authorises the person to carry out the gas work for the device; or

(b)for a gas system that includes a gas device (type B)—the holder of, or a person acting under, a gas work authorisation for the device.

98   Owner of gas system must address user’s safety concern

(1)This section applies if an owner of a gas system is given a notice by a user of the gas system that states the user knows or suspects the gas system is unsafe for a reason stated in the notice.

(2)The owner must take reasonable steps to address the user’s safety concern as soon as practicable after receiving the notice.

Maximum penalty—20 penalty units.

(3)In this section—

user, of a gas system, means a person who uses the gas system, other than an owner of the gas system.

Part 3    Gas systems in vehicles and vessels and for stationary engines

Division 1 Preliminary

99   Definitions for part

In this part—

alter, a gas system, means—

(a)relocate a component of the system; or

(b)replace the system, or a component of the system, with a different make or model that changes the design or performance characteristics of the system.

authorised certifier, for inspecting or altering a gas fuel system, means the holder of a gas work authorisation (motor fuel) if the authorisation states the holder may inspect or alter, and certify the gas fuel system.

authorised installer, for inspecting or altering a gas system, means the holder of a gas work licence or gas work authorisation (industrial appliances) if the licence or authorisation states the holder may inspect or alter, and certify the gas system.

commercial vehicle or vessel—

(a)means a vehicle or vessel, other than a road tank vehicle, that is used—

(i)for carrying passengers or goods for hire or reward; or

(ii)in a business, if the vehicle or vessel uses fuel gas other than to propel the vehicle or vessel; and

(b)includes a forklift.

corresponding law means a law of another State that provides for the same or similar matters as the Act.

currently registered vehicle means a used vehicle that is licensed or registered, whether under a law of this State or another State.

currently registered vessel means—

(a)a used vessel that is licensed or registered, whether under a law of this State or another State; or

(b)a used vessel that has a current certificate of operation under the domestic commercial vessel national law.

dealer—

(a)for a vehicle—means the holder of a motor dealer licence under the Motor Dealers and Chattel Auctioneers Act 2014; and

(b)for a vessel—means a person who is in the business of buying and selling vessels.

domestic commercial vessel national law see the Transport Operations (Marine Safety—Domestic Commercial Vessel National Law Application) Act 2016, section 20.

gas inspection certificate—

(a)for the installation of all or part of a gas fuel system—means the certificate given under section 734(3) of the Actby the person who installs the system or part of the system; or

(b)for the inspection or alteration of a gas fuel system—means a certificate, in the approved form, issued under section 102 or 103 by the authorised certifier who inspects or alters the system.

gas work authorisation (industrial appliances) means a gas work authorisation of that type.

gas work authorisation (motor fuel) means a gas work authorisation of that type.

interstate gas compliance certificate means a certificate for the gas system, other than the gas fuel system, in a vehicle or vessel if the certificate is issued under a corresponding law and states the system complies with the relevant safety requirements under schedule 2, parts 2 and 3, or equivalent requirements, under the corresponding law.

interstate gas inspection certificate means a certificate for the gas fuel system in a vehicle or vessel if the certificate is issued under a corresponding law and states the system complies with the relevant safety requirements under schedule 2, part 1, or equivalent requirements, under the corresponding law.

owner means—

(a)for a vehicle that is registered—the registered operator of the vehicle under the Transport Operations (Road Use Management) Act 1995, or the registered operator or a similar person under a corresponding law; or

(b)for a vessel that has a current certificate of operation under the domestic commercial vessel national law— the person who holds the certificate of operation; or

(c)for a vessel that is registered—the registered owner of the vessel under the Transport Operations (Marine Safety) Regulation 2016, or the registered owner or a similar person under a corresponding law; or

(d)for a stationary engine, a vehicle that is unregistered or a vessel that is not mentioned in paragraph (b) or (c)—the person in lawful possession of the engine, vehicle or vessel.

road tank vehicle means a road tank vehicle within the meaning of AS 2809.1 ‘Road tank vehicles for dangerous goods’, Part 1 ‘General requirements for all road tank vehicles’.

third-party certification means an approval granted for a gas fuel system in accordance with the United Nations Economic Commission for Europe Regulation No 134.

used vehicle or vessel means—

(a)a vehicle or vessel that has been licensed or registered at any time, whether under a law of this State or another State; or

(b)a vessel that has had a certificate of operation under the domestic commercial vessel national law at any time; or

Schedule 5A Gas device approval authorities

section 138B(5)(a)

Column 1	Column 2
Gas device	Qualifications and experience
eligible gas device (type A)	(a)  a current gas work licence; and (b)  either— (i)  a current gas work authorisation; or (ii)  the required unit of competency for a gas device approval authority for an eligible gas device (type A); and (c)  at least 5 years experience in gas work in relation to gas devices (type A)
gas device (type B) that is not a fuel gas refrigeration device	(a)  1 of the following— (i)  a current gas work licence; (ii)  a current gas work authorisation; (iii)  a tertiary degree in engineering; and (b)  at least 5 years experience in the fuel gas industry
gas device (type B) that is a fuel gas refrigeration device	(a)  a tertiary qualification in mechanical engineering, electrical engineering, refrigeration engineering or air conditioning engineering; and (b)  the required unit of competency for a gas device approval authority for a gas device (type B) that is a fuel gas refrigeration device; and (c)  at least 10 years experience in the refrigeration gas industry

Schedule 6 Fees

sections 126, 152, 155, 159 and 162

Part 1    Gas work licence and gas work authorisation fees

Fee units
1	Application for gas work licence (Act, s 728A(b))	48.75
2	Annual fee for gas work licence (s 126(2))	32.45
3	Application for gas work authorisation (Act, s 728A(b))—
(a)  for a gas work authorisation (industrial appliances)	81.40
(b)  for a gas work authorisation (major project)	2,454.00
(c)  for a gas work authorisation (motor fuel)	81.40
(d)  for a gas work authorisation (servicing)	81.40
4	Annual fee for gas work authorisation (s 126(2))—
(a)  for a gas work authorisation (industrial appliances)	48.75
(b)  for a gas work authorisation (major project)	2,454.00
(c)  for a gas work authorisation (motor fuel)	48.75
(d)  for a gas work authorisation (servicing)	48.75
5	Replacement of gas work licence or gas work authorisation	48.75

Part 2    Other fees mentioned in 2004 Act

Fee units
1	Application for gas quality approval (Act, s 622(2)(b))	398.80
2	Copy of a document or information held in the register of gas work licences and authorisations (Act, s 734AC(1)(b))	15.55

Part 3    Safety and health fees

1   Purpose of part

The purpose of this part is to prescribe—

(a)the safety and health fee payable by a liable person for a financial year; and

(b)the late return fee for section 159(3) and the late payment fee for section 162(3).

2   Drilling wells

(1)The safety and health fee payable by the operator (the relevant drilling plant operator) of an operating plant used to drill a petroleum well, geothermal well (other than a well drilled for wet geothermal production), GHG well or UCG well (relevant drilling plant) during the year is 1,606 fee units for each kilometre drilled.

(2)However, if the amount of the safety and health fees calculated under subsection (1) for all operators of relevant drilling plant during the year is more than the costs estimate for the category of liable person mentioned in section 155(2)(a) for the year, the fee payable by the relevant drilling operator is the amount worked out using the formula—

where—

C means the costs estimate.

W means the number of kilometres the relevant drilling plant operator drills using the relevant drilling plant during the year.

T means the number of kilometres all operators of relevant drilling plant drill using the plant during the year.

3   Well completion or maintenance work

(1)The safety and health fee payable by the operator (the relevant workover rig operator) of a workover rig that performs well completion or maintenance work for a petroleum well, geothermal well, GHG well or UCG well (a relevant workover rig) is 302.30 fee units for each well for which completion or maintenance work was done during the year.

(2)However, if the amount of the safety and health fees calculated under subsection (1) for all operators of relevant workover rigs during the year is more than the costs estimate for the category of liable person mentioned in section 155(2)(b) for the year, the fee payable by the relevant workover rig operator is the amount worked out using the formula—

where—

C means the costs estimate.

W means the number of petroleum wells, geothermal wells, GHG wells and UCG wells for which completion or maintenance work was done by the relevant workover rig operator during the year.

T means the number of petroleum wells, geothermal wells, GHG wells and UCG wells for which completion or maintenance work was done by all operators of relevant workover rigs during the year.

4   Exploration

(1)The safety and health fee payable by the holder (the relevant authority or permit holder) of an authority to prospect, a geothermal permit or a GHG permit is 2.60 fee units for each sub-block within the area of the authority or permit.

(2)However, if the amount of the safety and health fees calculated under subsection (1) for all holders of an authority to prospect, a geothermal permit or a GHG permit during the year is more than the total of the costs estimates for the categories of liable person mentioned in section 155(2)(c), (d) and (e) for the year, the safety and health fee payable by the relevant authority or permit holder is the amount worked out using the formula—

where—

C means the total of the costs estimates.

N means the number of sub-blocks within the area of the authorities to prospect, geothermal permits or GHG permits held by the relevant authority or permit holder during the year.

T means the number of sub-blocks within the areas of all authorities to prospect, geothermal permits or GHG permits held during the year.

5   Producing petroleum under a petroleum lease

(1)The safety and health fee payable by the holder (the relevant lease holder) of a petroleum lease is 1,656 fee units for each petroleum well within the area of the lease that has produced petroleum during the year.

(2)However, if the amount of the safety and health fees calculated under subsection (1) for all holders of petroleum leases during the year is more than the costs estimate for the category of liable person mentioned in section 155(2)(f) for the year, the fee payable by the relevant lease holder is the amount worked out using the formula—

where—

C means the costs estimate.

P means the number of petroleum wells within the area of the petroleum lease that produced petroleum during the year.

T means the total number of petroleum wells within the areas of petroleum leases that produced petroleum during the year.

6   Petroleum facilities

(1)The safety and health fee payable by the operator of a petroleum facility is as follows—

(a)for the operation of a major processing facility—13,870 fee units;

(b)for the operation of a facility that produces syngas—6,933 fee units;

(c)for the operation of a facility that produces a gasification or retorting product, other than mineral (f), produced by an underground gasification activity—6,933 fee units;

(d)for the operation of a facility that produces LPG from petroleum—10,401 fee units;

(e)for the operation of a facility that produces LNG, is not a major hazard facility under the Work Health and Safety Regulation 2011 and must operate under a safety management system—10,401 fee units;

(f)for the operation of a facility that produces CNG, is not a major hazard facility under the Work Health and Safety Regulation 2011 and must operate under a safety management system—4,852 fee units;

(g)for the operation of a facility that produces mineral (f) under an underground gasification activity—13,870 fee units;

(h)for the operation of a facility on an area to which a petroleum facility licence applies that is not included in any of paragraphs (a) to (g)—13,870 fee units.

(2)However—

(a)if there is more than 1 facility mentioned in subsection (1)(a) to (h) operated at a single site under a single safety management system, the operator of the petroleum facility is only required to pay—

(i)if the fee under subsection (1) for any of the facilities is higher than the fee for any of the other facilities—the highest of the fees; or

Example for subparagraph (i)—

If there is a facility that produces syngas and a facility that produces mineral (f) under an underground gasification activity and both facilities are operated at a single site under a single safety management system, the operator of the facilities is only required to pay a fee of 13,870 fee units rather than fees totalling 20,803 fee units.

(ii)otherwise—the fee for 1 of the facilities; and

(b)if a facility is a facility of more than 1 facility type—

(i)if the fee under subsection (1) for any of the facility types is higher than the fee for any of the other facility types—the highest of the fees; or

Example for subparagraph (i)—

If there is a major processing facility that produces LPG from petroleum, the operator of the facility is only required to pay a fee of 13,870 fee units rather than fees totalling 24,271 fee units.

(ii)otherwise—the fee for 1 of the facility types.

(3)In this section—

facility type means a type of facility mentioned in subsection (1)(a) to (h).

7   Facility used to carry out a GHG storage activity

(1)The safety and health fee payable by the operator (the relevant GHG storage facility operator) of a facility, including a GHG well, or a series of GHG wells, and associated storage and injection equipment used to carry out injection of a GHG stream into the same or associated reservoirs that are part of the 1 GHG project (a relevant GHG storage facility) is 13,870 fee units for each GHG project for which any work was started by the operator during the year.

(2)However, if the amount of the safety and health fees calculated under subsection (1) for all operators of relevant GHG storage facilities during the year is more than the costs estimate for the category of liable person mentioned in section 155(2)(h) for the year, the fee payable by the relevant GHG storage facility operator is the amount worked out using the formula—

where—

C means the costs estimate.

F means the number of relevant GHG storage facilities operated by the relevant GHG storage facility operator during the year.

T means the number of relevant GHG storage facilities operated by all operators during the year.

8   Pipelines

(1)The safety and health fee payable by the operator (the relevant pipeline operator) of a pipeline under a pipeline licence, a distribution pipeline that is not part of a distribution system or a GHG stream pipeline (each a relevant pipeline) is 0.0004020 fee units for each pipeline index for the pipeline.

(2)The pipeline index for a pipeline means the amount calculated using the formula—

where—

L means the length in kilometres of the pipeline.

D means the outside diameter in millimetres of the pipeline.

(3)However, if the amount of the safety and health fees calculated under subsection (1) for all operators of relevant pipelines during the year is more than the total of the costs estimates for the categories of liable person mentioned in section 155(2)(i), (j) and (k) for the year, the fee payable by the relevant pipeline operator is the amount worked out using the formula—

where—

C means the total of the costs estimates.

P means the total of the pipeline indexes for all relevant pipelines operated by the relevant pipeline operator during the year.

T means the total of the pipeline indexes for all relevant pipelines operated by all operators during the year.

9   Operating a distribution system

The safety and health fee payable by the operator of a distribution system is 210.50 fee units for each kilometre of pipeline in the distribution system that was in use for any period during the year.

10   Non-automotive LPG delivery network

(1)The safety and health fee payable by the operator of a non-automotive LPG delivery network mentioned in section 155(2)(m) is—

(a)if the container index for the operator for the year is 10,000 or less—3,142 fee units; or

(b)if the container index for the operator for the year is more than 10,000 but not more than 50,000—7,542 fee units; or

(c)otherwise—0.94 fee units multiplied by the container index for the operator for the year.

(2)However, the maximum fee payable by the operator under subsection (1)(c) for a financial year is 693,616 fee units.

(3)The container index of the operator for the year must be worked out using the formula—

where—

D is the number of fuel gas containers in the non-automotive LPG delivery network at any time during the year with a water capacity of less than 50L.

E is the number of fuel gas containers in the network at any time during the year with a water capacity of 50L or more but less than 1kL.

G is the number of fuel gas containers in the network at any time during the year with a water capacity of 1kL or more but less than 8kL.

H is the number of fuel gas containers in the network at any time during the year with a water capacity of 8kL or more.

11   Product supplier of automotive LPG

The safety and health fee payable by a product supplier of automotive LPG is 4.65 fee units for each time the supplier supplied automotive LPG to an automotive LPG site during the year.

12   [Repealed]

13   Major consumer

The safety and health fee payable by a major consumer, for each site operated by the consumer, is as follows—

(a)if the gas devices installed at the site have a total gas capacity of not more than 150GJ/hr—7,542 fee units;

(b)if the gas devices installed at the site have a total gas capacity of more than 150GJ/hr but not more than 500GJ/hr—11,945 fee units;

(c)if the gas devices installed at the site have a total gas capacity of more than 500GJ/hr—14,457 fee units.

14   Facility that produces or processes biogas or biomethane

The safety and health fee payable by the operator of a facility mentioned in section 155(2)(q), for each site operated by the operator during the year, is as follows—

(a)if the actual gas usage, or nameplate capacity, of the facility is less than 50kW—nil fee units;

(b)if the actual gas usage, or nameplate capacity, of the facility is at least 50kW and not more than 2MW—2,326.99 fee units;

(c)if the actual gas usage, or nameplate capacity, of the facility is more than 2MW and not more than 5MW—4,653.98 fee units.

15   Special effects gas system

The safety and health fee payable by the operator of a special effects gas system is 1,384 fee units for each special effects gas system operated by the person during the year.

16   Late fees

(1)For section 159(3), the late return fee is 691 fee units.

(2)For section 162(3), the late payment fee is the lesser of the following—

(a)691 fee units;

(b)the safety and health fee.

Schedule 7 Dictionary

section 3

acceptable level, for chapter 3, see section 41.

alter, for chapter 6, part 3, see section 99.

alternative safety measure, for chapter 3, part 4, see section 61.

applicant, for chapter 3, part 4, see section 61.

approval person for chapter 7, part 3, see section 134.

AQF means the Australian Qualifications Framework within the meaning of the Higher Education Support Act 2003 (Cwlth).

AS 2885 means the following standards that are part of the series AS and AS/NZS 2885 ‘Pipelines—gas and liquid petroleum’—

(a)AS 2885.0 Part 0 ‘General requirements’;

(b)AS 2885.1 Part 1 ‘Design and construction’;

(c)AS/NZS 2885.2 Part 2 ‘Welding’;

(d)AS 2885.3 Part 3 ‘Operation and maintenance’;

(e)AS/NZS 2885.4 Part 4 ‘Submarine pipeline systems’;

(f)AS/NZS 2885.5 Part 5 ‘Field pressure testing’;

(g)AS/NZS 2885.6 Part 6 ‘Pipeline safety management’.

AS/IEC means a standard published jointly by Standards Australia and the International Electrotechnical Commission.

AS/NZS means a standard published jointly by Standards Australia and Standards New Zealand.

AS/NZS 4645 means the following standards that are part of the series AS/NZS 4645 ‘Gas distribution networks’—

(a)AS/NZS 4645.1 Part 1 ‘Network management’;

(b)AS/NZS 4645.2 Part 2 ‘Steel pipe systems’;

(c)AS/NZS 4645.3 Part 3 ‘Plastics pipe systems’.

authorised activities operating plant, for chapter 3, see section 41.

authorised certifier, for chapter 6, part 3, see section 99.

authorised installer, for chapter 6, part 3, see section 99.

authority to prospect includes a 1923 Act ATP.

automotive LPG means LPG that is intended for fuelling motor vehicles.

automotive LPG site means a site that supplies automotive LPG.

Examples—

•service station

•depot where automotive LPG is used to refuel taxis

biogas means a gas derived or recovered from organic matter other than fossilised organic matter.

biomethane means a substance—

(a)that is in a gaseous state at standard temperature and pressure; and

(b)the principal constituent of which is methane; and

(c)that is produced by refining biogas; and

(d)that is suitable for consumption.

bore means a water injection bore, water observation bore or water supply bore.

caravan—

(a)means a structure—

(i)that is designed or adapted for human habitation or use as a workshop or kitchen; and

(ii)that can be moved from 1 place to another, whether by being towed by, or transported on, a vehicle or trailer; and

(b)includes a vehicle designed or adapted for use as a structure mentioned in paragraph (a).

category of liable person means each type of liable person mentioned in section 155(2).

certificate II means a qualification by that name under the AQF.

certificate III means a qualification by that name under the AQF.

certificate IV means a qualification by that name under the AQF.

chief inspector of coal mines, for chapter 3, part 4, see section 61.

CNG means compressed natural gas.

coal mining operations see the Coal Mining Safety and Health Act 1999, schedule 3.

commercial vehicle or vessel, for chapter 6, part 3, see section 99.

construction and abandonment code means the document called ‘Code of practice for the construction and abandonment of petroleum wells and associated bores in Queensland’, published on a Queensland Government website.

corresponding law, for chapter 6, part 3, see section 99.

costs estimate, of safety and health operating costs for a relevant category of liable person for a financial year, see section 154(1).

critical loss, of fuel gas supply, see section 9.

currently registered vehicle, for chapter 6, part 3, see section 99.

currently registered vessel, for chapter 6, part 3, see section 99.

cylinder means a cylinder to which AS 2030.1 ‘Gas cylinders’, Part 1 ‘General requirements’ applies.

dangerous incident see section 8.

dealer, for chapter 6, part 3, see section 99.

domestic commercial vessel national law, for chapter 6, part 3, see section 99.

drilling operating plant means an operating plant used for any of the following—

(a)to drill a petroleum well;

(b)to complete, maintain or work on a petroleum well for the production of petroleum;

(c)to plug and abandon a petroleum well.

edition, of a standard, means a version of the standard identified by the year the version was published.

Example of edition of a standard—

AS/NZS 4645.1 ‘Gas distribution networks’, Part 1 ‘Network management’ (2018) is the 2018 edition of standard AS/NZS 4645.1.

eligible gas device (type A) see section 138A.

enclosed vehicle, for chapter 8, part 1, see section 140.

explosive has the meaning given under the Explosives Act 1999.

flammable hydrocarbon gas means a gas consisting predominantly of hydrocarbons that forms an explosive gas atmosphere when mixed with air in certain proportions.

fuel gas container means a cylinder or tank.

fuel gas network means—

(a)a distribution system, including meters and meter regulators whether or not the meters or meter regulators are owned by the operator of the distribution system; and

(b)a fuel gas delivery network, including a gas pressure regulator through which fuel gas is delivered to a consumer’s gas system, whether or not the regulator is owned by the operator of the network.

gas compliance certificate means—

(a)for the installation of a gas system—the certificate given under section 734(3) of the Actby the person who installs the system; or

(b)for the inspection or alteration of a gas system, other than a gas fuel system—the certificate, in the approved form, given under section 113 or 114 by the authorised installer who inspects or alters the system.

gas fuel system means a gas system that supplies—

(a)gas as a fuel to an engine; or

(b)hydrogen fuel gas as a fuel to a hydrogen fuel cell that powers a vehicle or vessel.

gas inspection certificate, for chapter 6, part 3, see section 99.

gas work see section 725 of the Act.

gas work authorisation (industrial appliances), for chapter 6, part 3, see section 99.

gas work authorisation (motor fuel), for chapter 6, part 3, see section 99.

gas work requirements see section 123.

GDAA code, for chapter 7A, see section 138A.

GDAA requirements means the document called ‘Gas device approval authorities requirements’, published on a Queensland Government website.

geothermal well see the Geothermal Act, schedule 2.

GHG project means a group of facilities—

(a)located in the same geographic area; and

(b)used to carry out GHG stream storage, or GHG storage injection testing, under a single safety management system.

GHG stream pipeline see the GHG storage Act, section 17.

GHG storage injection testing see the GHG storage Act, section 16.

GHG well see the GHG storage Act, schedule 2.

hazard means a thing or situation with potential to cause harm to any of the following—

(a)a person, including, for example, financial losses or increased liabilities;

(b)property;

(c)the environment.

horizontal well ...

hydraulic fracturing activities means a form of stimulation that involves hydraulic fracturing fluid being pumped at a high pressure and rate into a reservoir for the purpose of opening fractures.

hydraulic fracturing fluid means a fluid that is—

(a)a mixture of water, liquid chemicals and other additives, including, for example, proppants; and

(b)commonly known as slurry.

hydrogen fuel gas system means a gas system that is used with, or designed or intended to be used with, hydrogen.

hydrogen safety code means the document called ‘Hydrogen Safety Code of Practice’, published by RSHQ on its website.

industrial appliance means a gas device (type B) designed for using fuel gas as a fuel or feedstock in an industrial process.

interstate gas compliance certificate, for chapter 6, part 3, see section 99.

interstate gas inspection certificate, for chapter 6, part 3, see section 99.

interstate or New Zealand authority, for chapter 7A, see section 138A.

JAS-ANZ accreditation, for chapter 7A, see section 138A.

job safety analysis means a method to identify existing and potential hazards associated with each step in an activity and to establish safe work practices for controlling or avoiding the hazards.

joint interaction management plan, for chapter 3, see section 41.

late payment fee means the fee mentioned in schedule 6, part 3, section 16(2).

late return fee means the fee mentioned in schedule 6, part 3, section 16(1).

liable person see section 155(1).

LNG means liquefied natural gas.

major consumer see section 155(2)(p).

major processing facility means a petroleum processing facility that processes more than 2,000,000,000 cubic metres of petroleum during a financial year.

mandatory standard see section 13(2).

motor vehicle see the Transport Operations (Road Use Management) Act 1995, schedule 4.

non-automotive LPG means LPG other than automotive LPG.

non-automotive LPG delivery network means a fuel gas delivery network—

(a)for non-automotive LPG; and

(b)that is an operating plant.

operating plant requirement, for chapter 3, part 4, see section 61.

operator, of a fuel gas delivery network that is not an operating plant, for chapter 5, see section 74.

overlapping area, for chapter 3, see section 41.

owner, for chapter 6, part 3, see section 99.

payment date—

(a)for an invoice given under section 160(1)—

(i)if the invoice is not given on or before the invoice date for the financial year—means the day that is 30 days after the day the invoice is given; or

(ii)otherwise—means the 10 December that occurs after the end of the financial year to which the invoice relates; or

(b)for an invoice given under section 160(2) or a reissued invoice—means the day that is 30 days after the day the invoice is given.

petroleum lease includes a 1923 Act lease.

petroleum processing facility means—

(a)a petroleum facility used for processing petroleum and operated under a petroleum facility licence; or

(b)a facility for processing petroleum operated under a petroleum lease.

pipeline code or standard see section 67(2).

preferred standard see section 13(3).

production tubing hanger means a device screwed to the top of tubing used to produce petroleum from a petroleum well.

product supplier, of automotive LPG, means a person who sells, or otherwise supplies on a commercial basis, automotive LPG to the owner or operator of an automotive LPG site.

Example of supplies on a commercial basis—

P provides automotive LPG to the operator of an automotive LPG site. The operator sells the automotive LPG to the owner of a motor vehicle for refuelling the vehicle. The operator receives commission on the sale and gives the remainder of the proceeds of the sale to P.

proppant means well-sorted and consistently sized sand or manufactured materials that are mixed into a hydraulic fracturing fluid to hold the fracture faces apart after the fluid used for hydraulic fracturing activities has been pumped under pressure into a petroleum well and the pressure has been released.

Queensland Government website means a website with a URL that contains ‘qld.gov.au’, other than the website of a local government.

refrigerant handling licence, for schedule 5, see schedule 5, section 1.

reissued invoice see section 161(2).

relevant category of liable person means each type of liable person mentioned in section 155(2)(a) to (f) and (h) to (k).

relevant coal mining area, for chapter 3, see section 41.

relevant coal or oil shale mining tenement holder, for chapter 3, part 4, see section 61.

relevant gas device for chapter 7, part 3, see section 134.

relevant horizontal well means a petroleum well, any part of which travels in a generally horizontal direction within or adjacent to a coal seam.

relevant network operator, for a gas system, for chapter 6, see section 91.

relevant requirement, for chapter 3, part 4, see section 61.

required information see section 158(2).

required unit of competency means—

(a)for a type of gas work licence or gas work authorisation—a unit of competency, under a certificate II, III or IV, that is listed in the gas work requirements as required for the type of licence or authorisation; or

(b)for a gas device approval authority—a unit of competency, under a certificate II, III or IV, that is listed in the GDAA requirements as required for the gas device to which the authority relates.

requirement, for chapter 3, part 4, see section 61.

road tank vehicle, for chapter 6, part 3, see section 99.

safety and health fee means a fee payable under section 155.

safety and health fee return see section 157(1).

safety and health operating costs see section 153.

serious injury or illness see section 7.

seismic survey means a survey carried out to determine the subsurface features by transmitting sound waves into the ground and measuring the time they take to return to the surface.

shot hole means a hole that has been drilled for the purpose of firing an explosive in connection with carrying out a seismic survey.

site occupier ...

small gas engine driven appliance means a device for fixed installation that consists of—

(a)a gas fuelled reciprocating internal combustion engine with the capacity to consume no more than 1,000MJ in an hour; and

(b)an air conditioner, heat pump, electricity generator or gas compressor powered by the engine.

special effects gas system means a gas system used for special effects for entertainment or amusement purposes.

standard means a standard using a designation made up of ‘AS’, ‘AS/NZS’ or ‘AS/IEC’ and a number.

Example of a standard—

AS/NZS 4645.1 ‘Gas distribution networks’, Part 1 ‘Network management’

standard abandonment requirements, for a petroleum well or bore, means the requirements mentioned in section 36.

standard temperature and pressure see the 2004 Act, section 11(4).

stimulation means a technique used to increase the permeability of a natural underground reservoir, including, for example, hydraulic fracturing, cavitations, fracture acidising, and the use of proppant treatments.

syngas means a mixture of gases that includes hydrogen and carbon monoxide.

tanker delivery carrier ...

third-party certification, for chapter 6, part 3, see section 99.

total gas capacity, for gas devices at an operating plant, place or site, means the total of the maximum gas consumption capacities of the gas devices at the plant, place or site.

type, of gas work licence or gas work authorisation, means a licence or authorisation of a type stated in schedule 5, part 2 or 3, column 1 to carry out the gas work stated in schedule 5, part 2 or 3, column 3 opposite the type.

UCG well means a hole in the ground made or being made by drilling, boring or any other means as part of an underground gasification activity.

used vehicle or vessel, for chapter 6, part 3, see section 99.

vehicle means a caravan or a motor vehicle.

vessel see the Transport Operations (Road Use Management) Act 1995, schedule 4.

well completion equipment means equipment used to prepare a petroleum well for the production of oil and gas and includes a system of hangers, packers, tubulars and other tools installed below the wellhead in the production casing.