Variation of Pipeline Licence WA-19-PL (Jansz-Io to Barrow Island) (L8X44D)

Overview

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 was enacted by the Australian Parliament to address the need for a robust regulatory framework governing the exploration, production, and storage of offshore petroleum and greenhouse gas. This legislation was introduced to ensure that the exploitation of Australia's offshore natural resources is carried out in an environmentally sustainable manner, with appropriate consideration given to both economic and ecological impacts. The Act provides a comprehensive legal foundation for the management and oversight of offshore petroleum activities, including the granting and regulation of licences and approvals for activities such as drilling, production, and the construction of associated infrastructure like pipelines. The policy objective of the Act is to facilitate the responsible development of Australia's offshore petroleum resources while safeguarding the environment and ensuring equitable benefits for the nation. This legislative framework allows for the establishment of joint authorities between the Commonwealth and state governments, such as the Commonwealth-Western Australia Offshore Petroleum Joint Authority, which plays a critical role in the administration and enforcement of the Act. The Act empowers these joint authorities to issue and regulate pipeline licences, ensuring that pipeline operations are conducted in a manner that minimises environmental risks and adheres to stringent safety standards. The variation of pipeline licences, such as the one referenced for the JANSZ-IO to Barrow Island pipeline, exemplifies the Act's application in modifying operational parameters to align with evolving regulatory requirements and technological advancements.

Scope and Application

The Offshore Petroleum and Greenhouse Gas Storage Act 2006 governs the variation of pipeline licences in Australia, specifically within the Commonwealth-Western Australia Offshore Petroleum Joint Authority's jurisdiction. This Act applies to entities involved in offshore petroleum activities, 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. These entities are responsible for the pipeline system that connects various drill centres and structures, ultimately ending at the State Water Boundary. The Act mandates that the pipeline must adhere to specific design and construction standards, including compliance with industry standards such as DNV-ST-Fl01 and ASME B31.8, as well as API standards for compressors and pumps. Additionally, the pipeline must be protected from external corrosion and designed to convey wet natural gas over a specified design life of 50 years. The legislation allows for variations to pipeline licences through subordinate instruments, ensuring that the pipeline operations meet the necessary safety, environmental, and operational standards set forth by the Act.

Key Provisions

This variation of the pipeline licence WA-19-PL, as detailed in Sections 226 and 708 of the Offshore Petroleum and Greenhouse Gas Storage Act 2006, updates the pipeline route and design specifications for the gas transportation system from Jansz to Barrow Island. The new route description specifies the starting and ending points, as well as the tie-ins to various drill centres and manifold structures, providing precise coordinates based on the Geodetic Datum of Australia (GDA94). Furthermore, the variation mandates that the pipeline system must adhere to specific industry standards for design and construction, including DNV-ST-F101 for the submarine pipeline, ASME B31.8 for piping within structures, and API 617 and API 610 for compressors and pumps, respectively. The pipeline's design parameters such as diameter, wall thickness, material, design pressure, temperature, and length are also meticulously outlined. The variation imposes several obligations on the licence holders, 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. These entities must ensure the pipeline system is designed and constructed in accordance with the specified industry standards and design parameters. They are also responsible for implementing an external corrosion protection system, comprising both anti-corrosion coating and sacrificial anode cathodic protection. Additionally, the licence holders must adhere to the outlined pipeline route, which includes precise tie-in points and coordinates. Failure to comply with the provisions of this variation and the Offshore Petroleum and Greenhouse Gas Storage Act 2006 may result in various civil and criminal consequences. While the specific penalties are not detailed in the variation, breaches of the Act generally carry significant fines and potential imprisonment. Civil penalties may include substantial financial penalties for non-compliance with licence conditions or regulatory standards, while criminal penalties could involve fines and imprisonment for serious or repeated breaches, depending on the severity and intent of the violation. The exact penalties would be determined by the relevant authorities in accordance with the applicable laws.