Application for Variation of a Pipeline Licence - Pipeline Licence WA-19-PL (L8X44D)

Overview

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 was enacted to address the need for a comprehensive legal framework governing the exploration, production, storage, and transportation of offshore petroleum and greenhouse gas in Australian waters. The Act was introduced to ensure that these activities are carried out in a safe, environmentally responsible, and economically efficient manner. The enactment of this Act was overseen by the Australian Parliament, which sought to establish a regulatory system that balances the interests of industry, the environment, and the public. The policy objective of the Act is to facilitate the sustainable development of Australia's offshore petroleum resources while mitigating potential risks and environmental impacts. This legislation provides the legal basis for the regulation of offshore petroleum activities, including the issuance of licenses, the imposition of conditions, and the enforcement of compliance with safety and environmental standards. The Act also addresses the storage of greenhouse gases, recognising the importance of reducing greenhouse gas emissions and promoting carbon capture and storage technologies. By providing a clear and robust legislative framework, the Offshore Petroleum and Greenhouse Gas Storage Act 2006 aims to encourage investment in Australia's offshore petroleum sector while safeguarding public and environmental interests.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 applies to the regulation of offshore petroleum and greenhouse gas storage activities in Australian waters. This Act governs the licensing and operation of offshore activities, including the laying and maintenance of pipelines for the transportation of petroleum and greenhouse gas. The application for the variation of Pipeline Licence WA-19-PL, made by several entities including Chevron Australia Pty Ltd, Mobil Australia Resources Company Pty Limited, Shell Australia Pty Ltd, Osaka Gas Gorgon Pty Ltd, MidOcean Gorgon Pty Ltd, and JERA Gorgon Pty Ltd, falls within the scope of this Act. The amendment pertains to the 'Authorised Route' and 'Annexure A', which details the design and construction standards for the pipeline. This legislation operates on a Commonwealth level, with specific application in the offshore area of Western Australia. There are no stated exclusions or exemptions in this particular application notice, but the Act generally provides for certain exclusions and exemptions in its various sections. The application process and the specific conditions of the licence variation may be further defined or restricted through subordinate instruments issued under the authority of the Act.

Key Provisions

The application for variation of Pipeline Licence WA-19-PL, under sections 226 and 708 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006, proposes specific amendments to the existing pipeline route and design parameters. Firstly, the authorised route of the pipeline is revised to detail the commencement and termination points, including specific tie-ins to the Jansz drill centre manifolds (DC-1, DC-2, and DC-3) and the Midline Pipeline Termination Structure (Midline PTS), and it ends at the State Water Boundary. The application also specifies the design and construction standards for the pipeline, mandating compliance with the Industry Standard DNV-ST-F101 for submarine pipeline systems, ASME B31.8 for piping within manifold and PTS structures, and API 617 and API 610 for the compressors and pumps within the Subsea Compression Station (SCSt), respectively. Additionally, the basis of design for the pipeline includes detailed parameters such as nominal diameter, wall thickness, material, design pressure, design temperature, and flowline length for each segment of the pipeline. The obligations imposed on the parties involved in this application include ensuring that the pipeline's design and construction adhere to the specified industry standards and parameters. This encompasses the offshore pipeline, manifold and PTS structures, and the SCSt, as well as the implementation of external corrosion protection measures. The parties must also ensure that the pipeline system is designed to transport wet natural gas, predominantly methane with approximately 0.07% CO2, and that the design life of all pipes is 50 years. Failure to comply with the provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 can lead to various civil and criminal consequences. Violations of the Act may result in penalties, including fines and imprisonment. Specifically, under section 812 of the Act, a person who contravenes a provision of the Act that is expressed to be a criminal offence is liable to a fine not exceeding the greater of 500,000 penalty units or five times the benefit obtained from the contravention. In addition to fines, imprisonment for up to 10 years may be imposed for serious offences. For non-compliance with safety and operational standards, penalties may include fines of up to 10,000,000 penalty units and, in the case of corporations, additional penalties based on the corporation's turnover.