annual report of south australian cooper basin joint venture...

Santos Ltd ABN 80 007 550 923 SACBJV Operations

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2011Annual Report of

South Australian Cooper Basin Joint Venture Operations

This report has been prepared in accordance with the requirements of the Petroleum and Geothermal Energy Act 2000 and the Petroleum and Geothermal Energy Regulations 2000 and covers all of the operations conducted for the SA Cooper Basin Joint Venture by Santos Ltd during the period January 1 – December 31 2011.


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ANNUAL REPORT - 2011 INDEX

1. INTRODUCTION..................................................................................................................................................... 5

2. EXECUTIVE SUMMARY ....................................................................................................................................... 5

3. SUMMARY OF REGULATED ACTIVITIES ........................................................................................................ 6

4. PERFORMANCE ..................................................................................................................................................... 6

4.1 PROVISION OF DATA .......................................................................................................................................... 6

4.2 PIPELINE MANAGEMENT................................................................................................................................... 6

4.3 QUARTERLY PERFORMANCE MEETINGS ...................................................................................................... 7

5. INCIDENTS .............................................................................................................................................................. 7

5.1 REPORTABLE INCIDENTS .................................................................................................................................. 7

5.2 REPORTABLE ENVIRONMENTAL INCIDENTS .............................................................................................. 8 5.2.1 SUMMARY OF ACTIONS TO PREVENT RECURRENCE ............................................................................. 9

5.3 NOTIFIABLE WORK RELATED INJURY OR DANGEROUS OCCURRENCE ............................................. 10

6. MONITORING/STUDIES...................................................................................................................................... 10

6.1 MONITORING ...................................................................................................................................................... 10

6.1.1 SEO Compliance ............................................................................................................................................ 10 6.1.2 SEO Review ................................................................................................................................................... 11 6.1.3 Environmental Monitoring Database ............................................................................................................. 11

6.2 STUDIES ............................................................................................................................................................... 11

6.2.1 Produced Formation Water Management Strategy ........................................................................................ 11 6.2.2 Sludge Management ....................................................................................................................................... 11 6.2.3 Waste Management ........................................................................................................................................ 12 6.2.4 Pipeline Fauna Management .......................................................................................................................... 12 6.2.5 Groundwater Risk Management Study .......................................................................................................... 12

7. MANAGEMENT SYSTEM ................................................................................................................................... 12

7.1 ENVIRONMENT, HEALTH & SAFETY MANAGEMENT SYSTEM (EHSMS) ............................................. 12

7.1.1 Management Standards .................................................................................................................................. 13 7.1.2 Hazard Standards ........................................................................................................................................... 13 7.1.3 Training and Awareness ................................................................................................................................. 13

7.2 AUDITS, ASSESSMENTS AND REVIEW PROCESSES .................................................................................. 14

7.2.1 Performance Based Audits ............................................................................................................................. 14 7.2.3 Pipelines ......................................................................................................................................................... 14 7.2.4 Training .......................................................................................................................................................... 15 7.2.5 Sustainability Report ...................................................................................................................................... 15

8. REASONABLY FORESEEABLE THREATS ...................................................................................................... 15

8.1 RISK ASSESSMENT ............................................................................................................................................. 16

8.1.1 WHOLE OF PLANT RISK ASSESSMENT (WOPRA) AND FORMAL SAFETY ASSESSMENT (FSA) ... 16

8.1.2 PIPELINES ......................................................................................................................................................... 17

8.1.3 SIGNIFICANT HAZARD RISK REGISTERS .................................................................................................. 17 8.1.4 NEW PIPELINES ............................................................................................................................................... 17

8.1.5 SECURITY ......................................................................................................................................................... 17

8.1.6 HAZOP ............................................................................................................................................................... 18

9. EMERGENCY RESPONSE ................................................................................................................................... 18

9.1 EMERGENCY RESPONSE CAPABILITY ......................................................................................................... 18


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9.2 EMERGENCY RESPONSE PROCEDURES ....................................................................................................... 18

9.3 EMERGENCY RESPONSE DRILLS ................................................................................................................... 18

9.3.1 Overview of Significant Response Drills ....................................................................................................... 19

9.4 EMERGENCY RESPONSE .................................................................................................................................. 20

9.4.1 Emergency Response Equipment ................................................................................................................... 21 10. GENERAL .............................................................................................................................................................. 21

10.1 LOCAL COMMUNITY INVOLVEMENT ........................................................................................................ 21

11. SEISMIC EXPLORATION .................................................................................................................................... 22

11.1 Summary of Activities ......................................................................................................................................... 22

11.2 Restoration ........................................................................................................................................................... 22

11.3 Significant Operations Proposed for 2012 ........................................................................................................... 22

11.4 Environmental Monitoring ................................................................................................................................... 22 11.4.1 Standards ...................................................................................................................................................... 22 11.4.2 Environmental Monitoring Points Set Up .................................................................................................... 23 11.4.3 Environmental Monitoring Points Revisits .................................................................................................. 23 11.4.3 Environmental Report Forms ....................................................................................................................... 23 Environmental Objectives and Performance – Geophysical Operations SEO ........................................................ 25

12. DRILLING AND WELL OPERATIONS............................................................................................................... 30

12.1 WELLSITE, CAMPSITE, BORROW PIT and ACCESS TRACK CONSTRUCTION & RESTORATION ..... 30

12.2 DRILLING OPERATIONS ................................................................................................................................. 30

12.3 DRILLING ACTIVITY – 2012 ........................................................................................................................... 30

12.4 WELL COMPLETION, WORKOVER, PRODUCTION, SUSPENSION and ABANDONMENT .................. 31

12.4.1 Monitoring of Wells ..................................................................................................................................... 31 12.5 WELL TESTING, COMPLETION and WORKOVER ACTIVITY – 2012 .................................................... 31

12.6 WELL/LEASE ABANDONMENT ..................................................................................................................... 31

12.7 DOWNHOLE WELL ABANDONMENT – 2011 .............................................................................................. 31

12.8 DOWNHOLE WELL ABANDONMENT – 2012 .............................................................................................. 31

Environmental Objectives and Performance – Drilling and Well Operations SEO ................................................ 32 13. PRODUCTION & PROCESSING FACILITY OPERATIONS ............................................................................. 44

13.1 PRODUCTION FACILITY PROJECTS ............................................................................................................. 44

13.1.1 MOOMBA PLANT...................................................................................................................................... 44

13.2 PRODUCTION FORECAST – 2012 ................................................................................................................... 45

13.3 PIPELINE CONSTRUCTION, OPERATION AND MONITORING ................................................................ 45

13.4 LICENSED PIPELINES ...................................................................................................................................... 46

13.4.1 PL 5 – Ballera to Moomba Pipeline ............................................................................................................. 46 13.4.2 PL 9 – Stokes to Mettika Pipeline ................................................................................................................ 47 13.4.2 PL 15 – Moon to Kerna Pipeline .................................................................................................................. 47

13.5 ROAD AND WELLSITE LEASE AND ACCESS CONSTRUCTION AND RESTORATION ....................... 48

13.5.1 WELLSITE LEASE AND ACCESS CONSTRUCTION AND RESTORATION...................................... 48 13.5.2 ROAD CONSTRUCTION ........................................................................................................................... 48

13.6 WATER EXTRACTION FROM COOPER CREEK .......................................................................................... 49 Environmental Objectives and Performance – Production and Processing SEO .................................................... 50

14 REPORTS ISSUED DURING THE 2011 LICENCE YEAR ................................................................................. 66

15. STATEMENT OF ACTUAL AND PROPOSED EXPENDITURE 2011/2012 ..................................................... 66

16. GLOSSARY OF TERMS ....................................................................................................................................... 67


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17. APPENDICES ........................................................................................................................................................ 67

Appendix 1 DMITRE Meetings – 2011 ............................................................................................................... 69 Appendix 2 Environmental Incidents Summary - 2011 ....................................................................................... 70 Appendix 3 Emergency Drills - 2011 .................................................................................................................. 72 Appendix 4 Well Drilling Lease Scout, Construct, Backfill and Restoration Activity – 2011 ............................ 79 Appendix 5 Well Workover Summary ................................................................................................................. 84 Appendix 6 Well Summary – Producing & Suspended Wells ............................................................................. 89 Appendix 7 Flowlines Constructed – 2011 .......................................................................................................... 90 Appendix 8 Pipeline Inspection, Testing & Repair – 2011 ................................................................................ 91 Appendix 9 Details of Seismic Activity ............................................................................................................. 93 Appendix 10a 2011 Production Facility Projects .................................................................................................. 94 Appendix 10b 2012 Production Facility Projects - Proposed ................................................................................ 95 Appendix 11 Wells Drilled – 2011........................................................................................................................ 96 Appendix 12 2011 Reports, including Geological and Reserves Reports ............................................................. 98


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ANNUAL REPORT – 2011 SA Cooper Basin Joint Venture Operations

1. INTRODUCTION This report covers the activities conducted in the South Australian section of the Cooper Basin (SACB) by Santos Ltd as Operator for the South Australian Cooper Basin Joint Venture (SACBJV). This report covers the period 1 January 2011 – 31 December 2011. This report covers: - SACBJV exploration, production and processing operations

- Pipelines operated under Pipeline Licences #5 (Ballera to Moomba), #9 (Stokes to Mettika) and #15 (Moon to Kerna)

- Emergency response exercises conducted during 2011 - The hydrocarbon liquids pumping station at the head of the Moomba – Port

Bonython liquids pipeline This report does not cover but the systems and procedures are applied equally to:

- PPLs 206, 208 & 215 which are located in the SACB and where Santos Ltd is the Operator for a joint venture other than the SACBJV

- PL 17, the SA section of the Jackson to Moomba Oil Pipeline - PEL 114 and associated PPLs 225, 226 and 227 which are located in the SACB

and are held 100% and operated by Santos Ltd This report does not cover:

- the liquids pipeline from Moomba to Port Bonython - any facilities owned or operated by other third parties

This Annual Report for all activity was prepared considering the relevant Statements of Environmental Objectives (SEO).

2. EXECUTIVE SUMMARY During this reporting period, there were no reports of incidents which resulted in illness or injury to any member of the public or third parties. There were seven “Serious Incidents” as defined in the Petroleum and Geothermal Energy Act 2000 related to SACBJV activity during 2011. During 2011, there were:

- 84.4 petajoules (PJ) of sales gas produced into the Moomba to Adelaide and Moomba to Sydney gas pipelines.

- 10.6 PJs of ethane produced into the Moomba – Sydney ethane pipeline. - 254 mL of gas condensate produced to Port Bonython. - 5.968 mm Barrels (BBLS) of crude oil exported to Port Bonython. - 205.4 Kt of LPG produced to Port Bonython

During 2011 a 3D VSP and Microseismic Survey was recorded in Santos operated PPL-s 66, 95 & 140 and AAL 163 (covering multiple areas outside Santos acreage)


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A total of 20 wells were drilled by the SACBJV. All were cased and suspended for later completion. None were plugged and abandoned after failing to intercept hydrocarbons. During this period, 162 well workover operations and 29 fracture stimulation operations were conducted and 5 wells were plugged and abandoned during the period. This resulted in a total of 1,302 operational wells, consisting of 633 producing and 669 inactive (suspension plug run or in-active greater than 1yr). There are also 53 cased and suspended wells. During this period, there were 38.62 km of flowline constructed, made up of 36 individual flowlines. Of the 38.62 km constructed, 2.27 km was Glass Reinforced Epoxy (GRE) line, 35.7 km of steel line and 0.66 EUE tubing. Close cooperation and liaison was maintained with landholders and third party exploration companies in the SACB. Santos continued to actively support local community activities across the areas where hydrocarbon exploration and production activities take place.

3. SUMMARY OF REGULATED ACTIVITIES The following Regulated Activities were conducted by the SACBJV under the various petroleum licences during 2011,

- Exploration for and appraisal of petroleum. - Road, track, borrow pit and well lease construction. - Seismic line construction. - Seismic survey. - Well drilling operations. - Water injection / water flood operations to enhance production. - Operations associated with the production of petroleum, including

construction, maintenance, repair and operation of pipelines, plant and facilities, camps, airstrips and associated infrastructure.

- Gas and oil processing operations. - Storage of natural gas in underground reservoirs. - Disposal of produced formation water. - Operation of licensed transmission pipelines.

4. PERFORMANCE The activities covered by this report are administered in accordance with the Petroleum and Geothermal Energy Act 2000, the Petroleum and Geothermal Energy Regulations 2000 and relevant SEO’s.

4.1 PROVISION OF DATA As a result of the previous increased focus on the provision of timely and accurate data to DMITRE, there were very few occasions where data was incomplete or late.

4.2 PIPELINE MANAGEMENT Santos field pipelines are designed in accordance with AS2885 and engineering standards. Operation and Maintenance of pipelines is managed by the Santos Pipeline Asset Management System which sets standards for integrity management and design life review to ensure EHS risks are ALARP.


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Individual Integrity Management Plans (IMP) are in place for each pipeline in the Santos operated network. These IMPs indicate the activities and frequencies of inspections required to manage integrity of each asset, based on estimated risk analysis

4.3 QUARTERLY PERFORMANCE MEETINGS Quarterly performance meetings between Santos and DMITRE continued during 2011. The dates of these meetings are listed in Appendix 1.

5. INCIDENTS During 2011, there were no incidents or accidents reported associated with Santos activities which involved any member of the public or third parties. In 2011 there were seven Serious Incidents (as defined by the Act and the Regulations and relevant SEO) and which were reported to DMITRE in accordance with the requirements of the legislation applicable to SACBJV activity. DMITRE issued one show cause letter.

5.1 REPORTABLE INCIDENTS Reportable Incidents have been reported to DMITRE during 2011. Some of these incidents were also reported to other regulatory agencies, such as the SA EPA and SafeWork SA. In the interest of sharing safety information and developing uniform safety approaches, Santos issued invitations to third party exploration and production operators to participate in the regular Santos/Contractor safety meetings.

Potential Aquifer Contamination Incidents (1) On 12 January 2011, it was reported that Phase Separated Hydrocarbon (PSH)

on groundwater at approximately 22 meters below ground level and dissolved phase hydrocarbons in the groundwater was detected beneath a decommissioned burn pit adjacent to the Toolachee gas processing facility within production licence PPL 14 in the SACB. The contamination was detected from investigation work that was being carried out at the site as part of the rehabilitation process undertaken on all decommissioned facilities and sites. The primary root cause for the Toolachee incident was the absence of impermeable liner which had not been installed as this was not a design requirement at the time the pit was constructed in the early 1980s.

(2) On the 17th May 2011, it was reported detection of PSH on groundwater underneath another decommissioned pit, in this case the oily sludge storage pit adjacent to the northern perimeter fence at the Moomba plant facility. As with the Toolachee burn pit, this was detected from site contamination investigation work that Santos was carrying out at the site as part of its internal rehabilitation process of this decommissioned site.

(3) On the 18 February 2011, it was reported that Phase Separated Hydrocarbon was detected on groundwater at about 16 meters below ground level adjacent to fire water Tank 2900 in the Moomba Crude Oil Tank Farm area. The source of the contamination has been attributed to a failure, which occurred in November


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2009, of a Crude Return Line (CRL) which connects Tank 1000 in the tank farm area to the Crude Stabilisation Plant within the Moomba Plant.

(4) On the 12th September 2011, Santos Ltd reported another buried line leak adjacent to Crude Oil Storage Tank 1000 on a separate crude line to that which failed in November 2009. As a result of this line failure, on the 17th October Santos reported that 1.2 meters of Phase Separated Hydrocarbon was detected on ground water in the vicinity beneath the location of this leak.

At the time of writing, the assessment of extent of contamination for each of the above incidents has not been completed. Updates of the status of these assessments are provided at quarterly and monthly meetings between Santos and DMITRE.

Pipeline Integrity Incidents (5) On the 19th March 2011, it was reported that a corrosion leak had been detected

on the Tantanna to Gidgealpa oil trunkline at a location 3 km from the Gidgealpa oil satellite. In response to this incident, DMITRE issued a show cause letter to Santos Ltd requesting the company demonstrate why it should not be directed to permanently cease operating this pipeline.

Facility Buried Piping Integrity Incidents (6) On the 12th September 2011, it was reported a buried line leak had been

detected adjacent to Crude Oil Storage Tank 1000 on a separate crude line to that which failed in November 2009.

(7) On the 9th December 2011, it was reported that a failure had been detected on its 10” buried crude run-down line from the Crude Stabilisation Plant to Tank 3000.

Persuasive Measures Following the report of a corrosion leak on its Tantanna to Gidgealpa oil trunkline, notwithstanding that the material harm in terms of environmental consequence of the spill was negligible, DMITRE concerns with the integrity management of this pipeline prompted a letter being issued requesting a demonstration of the pipeline’s fitness for purpose. In response it was demonstrated to DMITRE’s satisfaction that this trunkline was fit to return to service for a period of at least 3 months to allow an in-line inspection to be undertaken. This demonstration included the passing of a hydrotest in accordance with AS2885.5 and the lifting and supporting of the line to prevent the growth of corrosion.

5.2 REPORTABLE ENVIRONMENTAL INCIDENTS Environmental incidents are reported to DMITRE in accordance with legislative requirements.

Reportable incidents are reported to DMITRE at the Quarterly Performance meetings listed in Appendix 1. A reportable incident is an incident (other than a serious incident) arising from activities conducted under a licence classified under


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the regulations as a reportable incident. In accordance with Regulation 32(1), the following are classified as reportable incidents:

• an escape of petroleum, a processed substance, a chemical or a fuel that affects an area that has not been specifically designed to contain such an escape; and

• an incident identified as a reportable incident under the relevant statement of environmental objectives.

A serious environmental incident is an incident arising from activities conducted under the licence in which:

• serious environmental damage occurs or an imminent risk of serious environmental damage arises; or

• Some other event or circumstance occurs or arises that results in the incident falling within a classification of serious incidents under the regulations or a relevant statement of environmental objectives.

Appendix 2 provides an analysis of reports issued at the Quarterly Performance meetings. The consequence of these incidents, according to the classification guide developed by Santos, ranged from Negligible (84%), Minor (16%) and Moderate (0%). There was an increase in the number of reportable incidents, from 67 in 2010 to 82 in 2011. Fifteen events did not result in hydrocarbon or chemical product to grade. Six events were directly attributed to the rain event in 1st quarter 2011. The volume of uncontained hydrocarbon reported in 2011 was 25.05m3, up from 4.75 m3 in 2010, from a total fluid volume of 600m3, up from 98.5m3 in 2010. Approximately 520m3 of this was a result of two water-only spill events; water seepage from a final evaporation pond bund wall of 200m3, and 320m3 from a flow-back pit. Of the total incidents 57% were for total volumes of less than 100 litres. Root causes included Design (12%), Monitoring and Maintenance (71%), Work Practices (17%).

5.2.1 SUMMARY OF ACTIONS TO PREVENT RECURRENCE The focus on reporting of minor events and those not involving hydrocarbon has continued.

A range of corrective actions, from investigations have been implemented including:

• The continued reporting of human factor related events has allowed issues to be addressed at Toolbox meetings, development of procedures and training.

• Continued reduction of some recurring issues (such as diesel/fuel spills and lube oil spills) through a number of initiatives such as:


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o Plastic bunding under fuel storage and chemicals and upgrades to lines and drain points.

• Actions taken in recent years and continuing related to corrosion of pipelines and flowlines, include:

o Removal of lines or positive isolation and removal of oil from flowlines from wells no longer in production.

o Increased use of GRE for oil flowlines. o Programs of intelligent pigging of lines. o Development of the pipeline relifing assessment process.

5.3 NOTIFIABLE WORK RELATED INJURY OR DANGEROUS OCCURRENCE

Notifiable Work-related Injuries or Dangerous Occurrences required to be reported to SafeWork SA are also reported to DMITRE. There was no Immediately Notifiable Work-related Injury reported during 2011, there were 21 events classified as Reportable to DMITRE and 7 Notifiable Dangerous Occurrences reported Safe Work SA. All 28 were reported to DMITRE.

At the Quarterly performance meetings these incidents are also reported. Appendix 2 provides an analysis of those reports. Root causes included Design (4%), Monitoring and Maintenance (85%) and Supervision (11%). A pleasing trend was that none were attributable to Work practices

6. MONITORING/STUDIES

6.1 MONITORING

6.1.1 SEO Compliance The following programs monitor compliance of Santos operations with the SEOs: • There continues an ongoing focus on the prevention of hydrocarbon spills

through the implementation of integrity management plans. In 2011 this program continued a focus on key equipment as well as pipelines and tanks. These plans include audit and monitoring programs to assess conformance against procedures and the effectiveness of the standards and programs in place in the field.

• In 2011, Santos engaged the State Herbarium of South Australia to conduct a comprehensive weed survey across Santos-operated tenements. The aim of the survey was to identify the presence, distribution and abundance of weed species, with a view to understanding whether Santos activities are contributing to weed introduction or spread. Following the completion of the report, Santos will develop weed management plans as appropriate.

• A total of 49 abandoned production facilities (including produced formation water ponds, flare pits, well-heads and sumps) were visited in 2011 to assess compliance with decommissioning, abandonment and rehabilitation objectives. Site contamination assessments were conducted at 37 sites using the SHI procedure, and individual rehabilitation plans were prepared for 26 sites where further work was required.


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6.1.2 SEO Review The scheduled review of the Geophysical Operations Statement of Environmental Objectives (SEO) commenced in May 2011, with the SEO and related Environmental Impact Report (EIR) being updated to reflect current technological and environmental practices. The documents were further refined following stakeholder review and consultation, and will be submitted to DMITRE in early 2012 after final internal review by Santos.

6.1.3 Environmental Monitoring Database A corporate environmental monitoring database was implemented in 2007 and further established throughout the company during 2010. The system, EnviroSys from SRA Environmental, is an award winning South Australian product in use by companies such as BHP Iron Ore and BMA Coal, as well as Government Agencies Zero Waste and Meteorological Centre Singapore. The system manages qualitative and quantitative environmental monitoring data such as contaminated soil, produced water, waste management streams and dust analyses. It generates automated or scheduled reports and charts, as well as notifications when guidelines have been exceeded. All environmental advisers have been trained in the usage of the system and training materials are available on the Santos intranet. EnviroSys was upgraded in 2011 and rolled out more broadly within Santos. The GLNG project has adopted the system to manage EIS and operational environmental monitoring data. It is integrated with existing systems for reporting and GIS display of data.

6.2 STUDIES

6.2.1 Produced Formation Water Management Strategy In 2011, an investigative drilling program was proposed to identify any impacts to soil and groundwater from the operation of 12 interceptor ponds. These ponds were identified as posing a high risk due to potential seepage of hydrocarbon liquids, following the 2009 produced formation water management study. The project was scoped and approved in late 2011 and drilling is scheduled to commence in Q1, 2012. Study work also commenced in 2011 to understand a technically feasible and economic alternative to interceptor ponds. The study focuses on an improvement project at Gidgealpa Gas satellite and the historic pattern of sand ingress due to inherent desert conditions. Input has been sought from industry experts with a view to focusing higher on the control hierarchy ladder, i.e., preventing sand ingress through usage of alternative technology as opposed to mitigation once in the pond. Further to this, the project will aspire to become an example for future Santos opportunities in the Cooper Basin.

6.2.2 Sludge Management The Point of Source Sludge Reduction Action Plan continues to be implemented. During 2011, 7.63 ML of sludge was sent to the Moomba sludge processing facility for treatment, recovering 63% of oil.


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The contract to build, own and operate a new fully contained sludge processing plant in Moomba was finalised and awarded in 2011. The new sludge plant will be commissioned in Q3 2012.

6.2.3 Waste Management New waste management contracts for onshore Australia operations covering the Cooper Basin, Port Bonython and Eastern Queensland were awarded in 2011. One contractor now manages Santos’s waste in Moomba while another contractor manages waste in the Cooper Basin, Port Bonython and Eastern Queensland. In 2011, the extension to the landfill at the Moomba Waste Management Facility (WMF) was completed. The new cell is due commence operation in February 2012 following EPA approval. To support the new facility and ensure historic sites continue to be well managed, a Landfill Environmental Management Plan and a Landfill Closure and Post Closure Plan are being developed. Waste management plans for activities generating waste in the Moomba WMF catchment will be completed in 2012.

6.2.4 Pipeline Fauna Management The issue of minimising fauna impacts associated with pipeline trenching operations while maximising worker safety received considerable focus during 2011. Collaboration between Santos and the Australian Reptile Breeding and Research Centre culminated in the development of the “Fauna Refuge and Release System”. Field trials planned for late 2011 were deferred due to flooding impacts However the trial is planned for early 2012 with results to be presented at the 2012 SPE / APPEA conference in Perth in September 2012.

6.2.5 Groundwater Risk Management Study In late 2011, Santos undertook a groundwater risk management study which looked at the potential for groundwater contamination resulting from existing operations and infrastructure. The study involved development of a screening model and a risk ranking formula to identify, assess and prioritise contamination risks. The study identified 11 mechanisms of groundwater contamination prioritised from over 180 scenarios. Results of the study will be used to guide continuous improvement in these areas and will assist in developing a pragmatic approach to groundwater assessment and remediation.

7. MANAGEMENT SYSTEM

7.1 ENVIRONMENT, HEALTH & SAFETY MANAGEMENT SYSTEM (EHSMS) The implementation, monitoring and review of the Santos Environment, Health and Safety Management System (EHSMS) continued as an organisational priority during 2011. Implementation was monitored and communicated to DMITRE at quarterly meetings. Management standards performance was further validated by the use of internal auditors to monitor improvement initiatives highlighted by the EHSMS audit and assessment program.

The EHSMS contains both management standards and hazard standards. The management standards provide a framework for the sustainable achievement of


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acceptable EHS outcomes, whilst the hazard standards provide a clear process for control of hazards that are specific to Santos’ business.

The new Work Health Safety Act and Regulations have been reviewed and a gap analysis completed on the EHSMS in preparation of the introduction in SA.

7.1.1 Management Standards Further implementation of management standards continued throughout 2011. Process safety (the prevention of high consequence/low frequency events involving sudden loss process fluids/gasses) standards continue to be embedded into the business. Process Safety data continues to be collected and analysed. Trending information is fed back through the monthly Eastern Australia leadership committee. There were 10 management standards amended and updated in 2011– Objectives and Targets; EHS Improvement Plans; Mechanical Integrity; Management System Audit and Review. A significant review was undertaken on Contractor Management and the standard is being updated to improve processes and procedures.

7.1.2 Hazard Standards Further development and implementation of hazard standards progressed in 2011. The following standards were updated: Land Transportation; Working in Hot Environments; Chemical Management and Dangerous Goods; Asbestos Implementation of the health and well-being hazard standard continued, with significant focus on workforce health awareness and education. A specific program was put in place for high risk individuals, staff with 5 health risks from previous health check were offered personal health coaching (this commenced in 2010). Drug and alcohol testing continued in 2011 with employees and contractors at all field and office locations being subject to random, for cause and post incident testing. Results indicate a very low failure rate. A fatigue management program was implemented in 2009, including awareness programs, self-management tools and reporting protocols. This program continued in 2011 with refresher awareness sessions in the office, field and specific work on reviewing rosters in the field.

In 2011, sites continued to identify and focus on their ‘top 5’ hazards standards. These standards were aligned with their Significant Hazard Risk Register, to ensure a constant site-based focus on the most significant hazards. During 2011, sites continued to review and update their Significant Hazard Risk Registers and their ‘top 10’ risks and controls were reported back through the monthly Eastern Australia leadership committee.

7.1.3 Training and Awareness A new program was launched in 2010 to raise the awareness of high risk safety activities. The Santos Lifesaver Program consisted of 10 topics – Working with Electricity, Excavation, Working with Hydrocarbons, Driving Vehicles, Working at Heights, Lifting, Confined Space Entry, Working in the Heat, Management of Change and Start-up Process Safety. This program continued in 2011 with a different approach to raising awareness. Santos developed a number of Santos DVD-s to educate the workforce on the lifesaver topic. The program also contained a toolbox talk, promotional material (displays, posters, sticker, and screen saver), quiz, workplace inspection and audit. This program continues to be successful in


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raising the level of awareness and resulted in an increase in hazard reporting on these topics. In 2010, an on-line risk management training program was developed. This program provides an understanding of risk management, basic principles and practical application. This on-line training was rolled out during 2011.

7.2 AUDITS, ASSESSMENTS AND REVIEW PROCESSES The following summarises some of the Audit and Review processes used to determine system conformance, effectiveness and fitness for purpose. The EHSMS Audit and Review process was developed to drive the effective implementation of the EHSMS. Detailed Audit Guides were developed for each standard and these were used by internal and external certified auditors to determine the status of conformance across all management standards. Each site/area received an audit or progress review and received a report which provided an overview of conformance against relevant requirements of each management standard and implementation of key hazard standard indicators. Where a requirement was not at full conformance the report detailed the corrective action required to achieve full conformance. In 2011, internal auditors were primarily used to conduct audits and progress reviews.

Results of audits and progress review reports were tabled at Eastern Australia Leadership and Site Committee meetings for discussion and tracking of actions. The audit findings were also presented at the Environment, Health, Safety and Sustainability Board meeting. In 2008, we started to report, investigate and record any High Potential Incidents (HiPos) that occurred within the company. A HiPo is defined as any incident that had potential to result in a fatality. Tracking and reporting HiPos has given the company another avenue to learn from incidents and improve our overall safety performance. The tracking of HiPos continued in 2011, and was reported to senior management on a regular basis.

7.2.1 Performance Based Audits In 2011, three Legislative and Regulatory Performance Audits were conducted, as shown below,

No Audit Title Act/Reg #

1 Work Permit – Various sites OHS&W Act

2 Excavation – Various sites OHS&W Act

3 Lifting – Various sites OHS&W Act

7.2.3 Pipelines Management of pipeline integrity occurs by targeting pipeline systems and associated equipment which are high risk or near the end of design life (Risk Based Inspection - RBI - approach). Main targets of Pipeline Integrity Management are:

- Redirection of pipeline operating risks to ALARP


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- Address safety risks - Maintain integrity of ageing pipeline network - Standards compliance - AIMS (Asset Integrity Management System) compliance

AIMS is the framework used within Pipeline Integrity to provide effective through-life integrity management of pipeline assets to meet operational availability, as well as achieving statutory and corporate compliance with Safety, Health and Environment

7.2.4 Training Various training requirements identified from audits and assessments were addressed.

7.2.5 Sustainability Report Santos released its first annual sustainability publication in late 2004, making public its commitment to long- term sustainability as an energy company. At that time, Santos adopted sustainability as a core value and committed to continually improving its performance in this area. Since then, Santos has implemented a framework in which the company measures performance across a comprehensive suite of indicators in the environment, community, our people and economic domains. Santos publishes its annual verified Sustainability Report in March each year. This document reports against Santos’ sustainability targets and provides further detail on policy, procedures and performance across the four domains of sustainability.

8. REASONABLY FORESEEABLE THREATS Reasonably foreseeable threats, those that reasonably present, or may present, a hazard to the facilities or activities, continued to be reviewed and reduced by a number of initiatives. These initiatives included:

• Close liaison continues with 3rd parties exploring and producing in the Cooper Basin to manage the risk of 3rd party impact on pipelines.

• Work to expand the EHS Management System’s focus on Process Safety, targeting potential low-frequency, high-consequence events such as loss of containment. The Moomba Plant and Cooper Basin Production both underwent external audits against Santos EHSMS including the PSM standards during 2008. During 2009 and 2010, formal progress reviews were undertaken against the audit recommendations. Progress reviews may also identify new improvement opportunities as part of continuous improvement. Most non-conformances have been completed and closed. A full re-audit of plant is scheduled for 2012.

• Completion of a Formal Safety Assessment (FSA) of the Moomba Gas Plant. The FSA is a key source of process safety risk information for the Moomba Gas Plant and recommendations were commenced in 2011 with actions to be ongoing for 3-5 years. Information from the FSA will also be a significant input into a future safety case.

• Communications with other parties operating in the area are maintained to manage threats posed to the facilities, in particular to high pressure natural gas pipelines, to


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as low as reasonably practicable (ALARP). This includes pastoralists, on whose properties the operational activities are conducted. Information on infrastructure, including pipeline maps and information, is provided and regularly updated.

• Security situation has continued to be monitored and close liaison continues to be maintained with State and Federal authorities responsible for managing this issue. Appropriate relationships have been established with key response agencies.

• Participating in the development of common drilling industry standards, practices and procedures. A key component of this is the Wellsite Permit to Work System that Santos continues to provide leadership for, including providing the chair for the newly formed industry association structured to manage the System going forward.

The listing of Production Facility Projects for 2011 Appendix 10a, and proposed projects for 2012, Appendix 10b, provide a more comprehensive listing.

8.1 RISK ASSESSMENT Santos undertook a number of risk assessments during the period. These risk assessments are aimed at identification of risks and the development of actions designed to reduce the risk to as low as reasonably practicable (ALARP). Risk assessments are undertaken in line with EHSMS09 Hazard Identification, Risk Assessment and Control.

There were also a number of projects identified in previous risk assessments which continued to be progressed during 2011. These projects are addressed in this report

8.1.1 WHOLE OF PLANT RISK ASSESSMENT (WOPRA) AND FORMAL SAFETY ASSESSMENT (FSA) WOPRA was a systematic whole of plant risk assessment process with strong emphasis on work group participation. It is compatible with the proposed Major Hazard Facility requirements.

Assessments have been completed for the Moomba Gas Plant and the Moomba South Central Gas Satellite.

Focus of the WOPRAs was on actions associated with the top 10 Hazards for the Moomba plant and the top 5 Hazards at the Moomba South Central Satellite. Priority action items were issued and stewarded. The WOPRA processes are complete.

In 2009, a Formal Safety Assessment (FSA) of Moomba Gas Plant commenced in line with the requirements of EHSMS09 Hazard Identification, Risk Assessment and Control and to build on the WOPRA study. Following a pilot study started in 2009, the remainder of the Moomba Plant was reviewed in 2010. The potential risk reduction opportunities identified are in the process of further analysis and commencement of actions in order to maintain risk as low as reasonably practicable (ALARP). Projects and implementation plans will be instigated as part of this process. The risk and control information will also be an important basis for the Safety Case which will be required under pending MHF regulations.


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8.1.2 PIPELINES Detailed risk assessments are completed for new pipelines and an improved risk based design life review process has been implemented for pipelines in operation. A key risk mitigator is the effective completion of the activities required by the IMPs. Risk reviews throughout the operating life of the pipeline are determined through the pipeline risk based inspection process. Individual Integrity Management Plans are in place for each pipeline that forms part of the Santos network.

The performance of integrity management system is reported via monthly KPIs, IMP compliance reports and is discussed with individual asset owners and management at quarterly forums such as AEGR (Asset Engineering Governance Review) and Operations Governance.

The KPI-s monitor performance of the chemical pump reliability, CP reliability, the batch and slug treatment program, CP and ROW surveys, barrel treatments, inspections (ILI-s and DA-s), preliminary and final abandonments and pipeline threats. Compliance of IMP-related activities is also measured.

A number of risk assessments were undertaken on key pipelines, listed Appendix 8, as required under the Pipeline Management System.

8.1.3 SIGNIFICANT HAZARD RISK REGISTERS A requirement of Santos EHSMS9 Hazard Identification, Risk Assessment and Control is for operating sites to develop and maintain a Significant Hazard Risk Register (SHRR). The SHRRs record risks with an inherent risk rating of 3 or higher (from Santos’ Risk Rating tool). Information is consolidated from various EHS and process safety risk assessment processes. SHRRs are used to: • Identify the major EHS hazards to be included in EHS inductions • Prioritise resources for the auditing/ monitoring of key controls • Assist with the development of site/ function EHS inspection, monitoring

and audit programs • Assist with the development of annual EHS Improvement Plans During 2011, the SHRRs for the Moomba Gas Plant and Production Operations SA underwent further update and development to maintain currency and to improve their effectiveness for managing risks. The top items from SHRRs are reviewed in rotation by the EALT EHS Committee.

8.1.4 NEW PIPELINES A total of 36 new pipelines (oil & gas) were constructed in South Australia in 2011, with changes being made to commissioning and handover processes to capture the integrity management requirements.

8.1.5 SECURITY Security related activities within the SACB continued effectively through 2011 with the following key activities:

• Conduct of Security Risk Assessment for the Moomba site as part of the

implementation of the new Hazard Standard for Security Management


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• Emergency response arrangements occurred at multiple sites across the SACB. Moomba hosted a SAPOL desktop exercise involving the response to an aviation mass casualty event at Moomba.

• Procedures for the management of a protest at sites has been developed by the Principal Security Adviser.

• Liaison network with the various Federal and State agencies responsible for security related issues were maintained.

• SA Police Commissioner toured Moomba with the new Regional Police Commander.

8.1.6 HAZOP There were 4 HAZOPs conducted for the Moomba Plant, production facilities and pipelines in 2011.

9. EMERGENCY RESPONSE

9.1 EMERGENCY RESPONSE CAPABILITY Santos maintains a dedicated emergency response crew at Moomba. This consists of fully trained Emergency Officers (fire crew) and medical response personnel together with a large inventory of emergency response equipment, material and vehicles.

9.2 EMERGENCY RESPONSE PROCEDURES Santos has developed a Crisis Management Plan that will replace the current Santos Incident Management Plan (SIMP) when the revised EHSMS13 is released as part of the EHSMS Improvement Plan. The SCMP has been developed to reflect the national and international growth of Santos. Detailed, scenario-based emergency response procedures have been developed and implemented under the Santos Incident Management Plan to guide personnel in emergency incident response. Emergency response drills are regularly held in order to continuously update plans and maintain a high degree of readiness among personnel.

In the event of the emergency response procedures being used in response to an actual event, a debrief of all relevant parties is conducted in order to ensure learnings are incorporated into the plans. A Business Impact Assessment (IA) has been conducted for Moomba and Adelaide-based infrastructure in accordance with new Business Continuity Planning arrangements for Santos.

9.3 EMERGENCY RESPONSE DRILLS A listing of drills held during 2010 is contained in Appendix 3 Emergency Services conducted a number of Drills, Exercises and Desktop Exercises in 2011 including Evacuation Drills, Muster Point Training, Operational Exercises, EOC Training and Exercises, SAR Exercises and CSE Training and Rescue Rehearsals etc.


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An agreement with DMITRE provides for a summary within this report with regard to the requirements of Reg 31 (5) of the Petroleum and Geothermal Energy Regulations 2000, the preparation and submission of a report after a drill. The drills held during 2011 have met the requirements of Reg 31-(6). They have demonstrated the adequacy of the emergency response procedures and the competency of personnel to execute the procedures. A summary of outcomes, and any identified deficiencies and the remedial action proposed or taken is provided in the listing in Appendix 3. The following provides some additional detail on the more significant response drill Santos conducted, or participated in, during 2011. A number of emergency response exercises were conducted during 2011 to test the adequacy of the emergency response procedures and the competency of personnel to execute the procedures. On 22 September 2011, a Moomba major plant emergency response exercise was conducted to test procedures for responding to a process emergency, and extended to a consideration of crisis management arrangements in the event of a more serious incident arising. The size and scope of the exercise was designed to ensure that all resources immediately available were utilised and/or considered, and it identified opportunities to improve emergency response training and radio communications during an emergency situation.

9.3.1 Overview of Significant Response Drills Moomba Major Plant Emergency Response Exercise – 22nd Sep 2011

The 2011 Major Plant Exercise for Moomba was an operational exercise (OPREX), designed to practice established emergency response procedures and individuals‘ skills for a process emergency within the Moomba plant confines as required by EHSMS 13 emergency preparedness.

The size and scope of the emergency response ensured that all resources immediately available were utilised and/or considered. This, in turn, facilitated the practice and review of crisis management arrangements in the event of a more serious incident arising.

Incident Scenario: A flange on pipe-work connected to the Inlet Trunkline Sample Point of the Sales Gas Meter Station has failed and has commenced leaking. The discharged product has ignited causing a serious fire around the Sales Gas Meter Station. Two workers that were in the immediate area at the time of the leak have sustaining serious burns and another is missing. There were eight defined objectives for the exercise.

The exercise took 60 minutes to complete, from time of call to the sounding of the all clear siren. Tasks completed during the exercise included, but were not limited to:


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• Full evacuation of the processing plant and surrounding environs to the muster points.

• Accounting for all affected personnel. • Activation of the Moomba Emergency Operations Centre (EOC) and

subsequent notification to the Santos duty incident manager (DIM). • Establishment of forward command post. • Initial treatment and evacuated of injured personnel. • Fire fighting operations carried out by the onsite process personnel and

responding emergency services officers. • Notional shutdown and de-pressuring of affected plant. • Appropriate actions (practical and notionally) required in relation to the

simulated deceased person.

Emergency Operations Centre Exercises A number of EOC exercises were conducted throughout 2011 covering both the primary EOC and the alternate EOC. These exercises were designed to practise established emergency response procedures and individual roles and responsibilities within the Emergency Operations Centre during the time of an incident. There were a number of objectives detailed for each individual exercise which was reported directly against in the associated exercise debriefs and reports.

Limestone Creek Exercise - 14th April 2011 The aim of this exercise was to practice and refine emergency management arrangements in the event of a fire emergency occurring in the Limestone Creek satellite and to provide a skills maintenance training opportunity for Production Department personnel at that site. The operators were required to investigate the report of the fire. Upon their arrival oil tanks were involved in fire (notionally) and the operators were then to enact the site emergency response plan. Tirrawarra Major Exercise - 8th October 2011 Due to an unusually wet season and abnormally high growth of vegetation there is now a significant risk of bushfire throughout the Cooper Basin. This exercise was conducted as an operational exercise (OPREX) and it was been designed to practice defensive fire fighting techniques in the Tirrawarra Operations Camp and test EHS-ES-ERP-31(B), Moomba Emergency Plan Bushfire Supplement and its effectiveness.

Daralingie Major Exercise – 21st June 2011 This exercise was designated as an OPREX as per the 2011 Cooper Basin Emergency Exercise Schedule which is a requirement under EHSMS13 Emergency Preparedness. The exercise was designed to practice established emergency response procedures and individual’s skills in relation to a fire and medical emergency in the Daralingie Gas Satellite and to provide a skills maintenance training opportunity for Production Department personnel.

9.4 EMERGENCY RESPONSE In addition to planned drills, the Moomba emergency response resources were activated on a number of occasions in 2010. The majority of these were in response


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to Alarm Calls or as a precaution following a minor incident. The more significant response events that resulted in activation of the Moomba ERP included:

• A gas release from SWQ BMP Pig Receiver (Moomba Plant) 02/01/ 2011 • A minor gas release from #6 CO2 Train 16/03/2011 • Gas release from LRP De-methaniser valve failure 12/04/2011 • Small vent fire, Yanda compressor 30/09/2011 • Small grass fire in the Moomba plant flare radiation zone 22/10/2011 • Numerous bushfires throughout Cooper basin fields caused by lightning

during Sep/Oct 2011

Nine Moomba environs incidents included Medical Assists, Truck Fire, Hazmat- external roads and 3rd party Search & Rescue. Unusually high levels of native vegetation resulting from two consecutive wet seasons with above average rainfall have lead to a number of large bushfires throughout the Cooper Basin. Santos emergency resources were deployed for these fires to protect Santos assets and assist pastoralists as requested. Over 1million hectares have been burnt so far this spring and summer. No Santos assets have been damaged during these fire emergencies.

In all cases, the response systems operated effectively.

Santos helps within the general community by assisting with vehicle accidents, medivacs, search and rescues and response to activated Emergency Position Indicating Radio Beacons (EPIRB’s). Santos also provides emergency assistance at community events.

9.4.1 Emergency Response Equipment The equipment for a well-site incident was reviewed and evaluated. Cudd Well Control were involved in this process and recommended an increase in the standby equipment held in the Cooper Basin. This recommendation was accepted and the equipment sourced and is stored in Jackson.

10. GENERAL

10.1 LOCAL COMMUNITY INVOLVEMENT During this reporting period, Santos continued to be actively involved with the local community associated with various events and issues which impact this community. This involvement ranged from facilitating and participating in local sporting and fund-raising events, to active involvement in various local Committees and groups, such as. - “Local” events - Innamincka races. - Cooper Cup - Emergency and other assistance to local community. - Cooper Creek Catchment Committees - South Australia Arid Lands Natural Resources Management Board - Active support of RFDS


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11. SEISMIC EXPLORATION

During 2011, the following seismic activity was carried out:

• CESAN11B 3D VSP and Microseismic Survey (Nephrite 3D VSP) recorded in Santos PPL’s 66, 95 & 140 and AAL 163 (covering multiple areas outside Santos acreage)

11.1 Summary of Activities Only the above seismic project, CESAN11B 3D VSP (Nephrite 3D VSP), was undertaken during the reporting period.

The programme totalled 63.60 sq km of which 40.63 sq km was acquired in the SACBJV PPLs. The breakdown of square kilometres in each Licence is provided in Appendix 9. The CESAN11B survey was conducted over dune fields around the Nephrite field of wells, approximately 40km north west of Moomba. It should be noted that apart from 6 access lines prepared across the dunes, no line preparation was conducted for the source or receiver lines. Cultural heritage clearance was conducted by 4 representatives of the Dieri people working in a pre-clearance mode, that is, the entire survey area was inspected prior to the commencement of any Santos operations.

Cultural Heritage clearance: 30th Sep. – 6th Oct. 2011 Line preparation (dozers): 11th Oct. – 16th Oct. 2011 Surveying/Pegging: 12th Oct. – 26th Oct. 2011 Recording period: 2nd Nov. – 12th Nov. 2011

11.2 Restoration No restoration was required of the seismic lines. The six access lines prepared where also deemed not to require any access as the dunes will blow in relatively quickly. Post-restoration, there were no assessment or GAS audits undertaken due to personnel unavailability as a consequence of the follow-up microseismic programme being aborted. A GAS audit is scheduled for early 2012 to comply with the objectives of the SEO.

11.3 Significant Operations Proposed for 2012 The seismic programs proposed for 2012 are as follows:-

• Acquisition of the Greater Leleptian 3D. This is a 237sq km survey located west of Tirrawarra over the Leleptian field.

• Small section of the cross-border Moon 3D of which approximately 18.6 sq km of this lies in SA.

11.4 Environmental Monitoring The following is a brief summary of the standards followed and Environmental Monitoring Points set up and revisited. 11.4.1 Standards SEO for Geophysical Operations South Australian Cooper


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Basin Operators June 2006 Environmental Impact Report: Geophysical operations June 2006 Dozer Manual - Environmental Procedures for Seismic Line Preparation Nov 1998 Goal Attainment System (GAS) – included in the SEO June 2006 Environmental Procedures for the Management of Aboriginal Heritage Sites 1998 11.4.2 Environmental Monitoring Points Set Up Proposed Nephrite environmental monitoring point (EMP) locations were located from the aerial map / programme overlay. The final location of each EMP however was determined by the Santos site representatives upon a ground inspection and accessibility. The locations are governed by the objective of monitoring terrain and vegetation impact. All nine EMPs are located near roads to provide current and future access without any detrimental impact upon the landscape. In addition, 35 additional photo points were established to monitor the environmental impact of the project in the short term (0 – 3 months).

CESAN11B (Nephrite 3D VSP) Seven of the nine EMPs were established and recorded within the 3D VSP survey, the remaining two were located outside of the VSP source area. The remaining two EMPs (#1 and #2) are located outside this area but within the area of the surface receiver array designed for the aborted microseismic programme.

EMP # Surveyed East

Surveyed North Location Comments

EMP #1 389281 6914484 On access line 1363 located at base of dune

EMP #2 391246 6914762 On access line 1363 and source 5066 located at base of dune

EMP #3 389439 6913140 Intersection of access 1308 and R5154 Sandy Swale

EMP #4 390978 6911972 Intersection of Access 1253 & S61 (1027.2) Sandy Swale

EMP #5 389032 6910103 Source line S35 Stn 1052 Sandy swale adjacent borrow pit

EMP #6 390084 6910445 on Access 1198 Base of Dune/ Swale EMP #7 391269 6910581 Source line S65 stn 1045.5 Base of Dune/ Swale EMP #8 388715 6912338 Source line S31 stn 1022.2 Base of Dune/ Swale

EMP #9 390252 6912429 Rec line 5121 stn 1276.5 Sandy flat not far from dune

11.4.3 Environmental Monitoring Points Revisits Santos has the practice of revisiting EMP locations at irregular intervals until the sites have recovered to a level that is not discernible from the surrounding terrain. During 2011, there were no EMPs revisited within SA. 11.4.3 Environmental Report Forms Environmental Report Forms (ERFs) are produced by the field crew members to highlight field practices, whether they are good or bad. Reports are forwarded through the Santos Environment Department.


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No ERFs were produced for the Nephrite survey.


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Environmental Objectives and Performance – Geophysical Operations SEO Environmental

Objective Assessment Criteria Guide to How Objectives can be Achieved Performance

2011 Report Period Objective 1: Minimise the visual impact of operations.

Campsite and survey line preparation • Proposed survey lines and campsites have been

appropriately located and prepared to minimise the visual impact.

• The attainment of 0, +1 or +2 GAS criteria for ‘visual impact’ objective listed in Appendix 3.

• Pre-survey planning has been undertaken to

minimise visibility of operations and records are available for audit.

• Maximise use of vegetation or land forms to disguise operations

• Offset sand dune crest cuts along the length of the survey line to minimise visibility.

• Avoid extensive side cuts on dune flanks. • Lessen visual impact of uphole cuttings, where they

contrast with the surface, e.g. by use of appropriate colouring agents.

• Avoid cutting sand dunes facing tourist access tracks.

• All litter is to be disposed of correctly.

• 29 photo points, additional to the EMPs

(Objective 3 & Section 11) were recorded and will be included in the final EMP report.

• Campsite utilised was an existing campsite off the main Jack Lake road.

• Only line prep conducted was access lines into prospect. All source and receiver lines were un-prepared.

• Some unavoidable side cuts were made on the eastern flanks of the dunes. No dune cuts visible from public roads. Whilst dune cuts were deeper than desired in places, Line prep was conducted in November which is the beginning of the windy months in the Cooper Basin, The dune cuts were blowing in by the end of recording and no rehabilitation is expected although ongoing monitoring will be undertaken.

• No uphole drilling conducted. • All rubbish removed from lines.


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Environmental Objective

Assessment Criteria Guide to How Objectives can be Achieved Performance 2011 Report Period

Objective 2: Minimise disturbance to and contamination of soil resources.

Campsite & survey line preparation • Attainment of 0, +1 or +2 GAS criteria for

‘Minimise impacts to land surface’ objective, as listed in Appendix 3.

• Proposed survey lines and campsites have been appropriately located and prepared to minimise the disturbance to soil resources.

Fuel Storage and Handling No refuelling occurs outside designated

refuelling/servicing areas. Spills or leaks are immediately reported and clean

up actions initiated. Records of spill events and corrective actions are

maintained in accordance with company procedures.

Appropriate spill response equipment is available on site.

• Pre-survey planning has been undertaken to minimise

impacts of operations and records are available for audit.

• Survey line preparation techniques are monitored and documented to minimise soil disturbance, particularly in gibber and floodplain/wetland terrains.

• Gibber mantle has not been removed in gibber and tableland land systems.

• Gibber surface is not ripped at campsites. • Any requirement to traverse sensitive land systems and

the method of managing the impacts should be justified in accordance with company procedures. Any records should be available for audit.

• There is no evidence of off-road driving or creation of shortcuts.

• No survey line or access track preparation is carried out on salt lakes.

• Areas subject to inundation have been assessed for conduciveness to support vehicles.

• Oil spills areas have been ripped to an appropriate depth.

• No cases of soil contamination reported. • Camp site area on the existing Tindilpie

5 campsite was utilised by the recording crew. Line prep and survey were accommodated in Santos Tirrawarra facility.

• No rehab was required on completion- no drainage pits had been dug, no wheel ruts visible.

• As no line prep was conducted apart from the 6 access lines, all driving was off road. Minimal impact.

• No fuel spills reported. • Bulk fuel storage kept away from camp

and limited to well pad storage.


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Objective 3: Minimise disturbance to native vegetation and fauna.

Campsite and survey line preparation • The attainment of 0, +1 or +2 GAS criteria for

‘Impact on native vegetation’ objective listed in Appendix 3.

• No mature trees are removed. • Vehicle access to survey lines is to be via existing

access tracks or pre-existing survey lines, except where they have rehabilitated. Other temporary access tracks may be utilised where such use is likely to result in less environmental impact than other options.

Fuel and Chemical Storage and Management Refer to assessment criteria for objective. Fire Danger Season restrictions & education All personnel are fully informed on the fire danger season and associated restrictions.

• Terrain and vegetation is considered in planning stage when designing layout of the survey.

• Records of vegetation clearance/habitat disturbance are kept and available for auditing.

• Appropriately trained and experienced personnel have scouted proposed survey lines access tracks and campsites.

• Native vegetation clearance has been minimised and the conservation needs of particular species have been considered.

• Campsites are established in locations where the preparation of a new access track is not necessary.

Waste Management • Covered bins are provided for the collection and

storage of wastes. • All loads of rubbish are covered during transport to the

central waste facility. Fire Danger Season restrictions & education • Include Fire Season education as part of the induction.

• Camp site area on the existing Tindilpie 5 campsite was utilised by the recording crew. Line prep and survey were accommodated in Santos Tirrawarra facility.

• No rehab was required on completion- no drainage pits had been dug, no wheel ruts visible.

• As no line prep was conducted apart from the 6 access lines, all driving was off road. Minimal impact.

• Waste stored in covered bins on camp and transported to Moomba for disposal.

• Fire risk was extreme on prospect. Numerous fires burning in Cooper Basin from lightning strikes. Fire risk addressed during planning and daily at toolbox meetings. No fire incidents occurred as a result of survey.

Nine EMPs established. Final report to be compiled. No GAS undertaken to date. See Section 11.

Objective 4: Avoid disturbance to sites of cultural and heritage significance

The following is one possible procedure to achieve the objective. • Appropriately trained and experienced

cultural/heritage advisors have scouted proposed survey line locations and access tracks.

• The operator has a mechanism in place to appropriately report and respond to any sites discovered during survey operations.

• Any sites identified have been flagged and subsequently avoided.

Note: Where a negotiated agreement or determination for heritage is in place, compliance with the negotiated agreement or determination takes precedence over the above criteria. The EIR details this possible procedure.

The possible procedure may well be achieved by the following; • Documents and/or reports of scouting for

cultural/heritage are available for audit • Environmental Report Forms (ERF) to be completed for

any sites or artefacts identified. • The ERFs relating to Aboriginal sites are forwarded to

Department for Aboriginal Affairs and Reconciliation (DAARE).

Note: Where a negotiated agreement or determination for heritage is in place, provisions may include that appropriately trained and experienced cultural/heritage advisors will carry out a Work Area Clearance (WAC) and produce a report for sites of cultural and heritage significance before commencement of line preparation. This provision will take precedence over the above guideline. The EIR details these criteria for the possible procedure.

• Cultural Heritage clearance was completed by the Dieri people. The entire survey area was pre-cleared. All swales were cleared for use and the only dune crossings were on the 6 prepared and cleared access lines.

• A 20m corridor (10m either side of the programmed line) was cleared on the design access line location. An experienced dozer operator was used - all well versed in spotting sites as a backup.

• 4 Sites were recorded and flagged off Detour routes were made around the sites.

• No non conformance occurred.


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Objective 5: Minimise disturbance to livestock, pastoral infrastructure and landholders.

• The attainment of 0, +1 or +2 GAS criteria for

‘Impact on infrastructure’ objective listed in Appendix 3.

• No reasonable concerns raised by stakeholders are left unresolved.

• The extent to which the relevant sections of the Petroleum Act and Regulations have been followed and implemented and in particular in relation to landowner liaison and notification.

• Relevant landowners and occupiers are notified prior to

survey of preparation of campsites, preparation of survey lines and undertaking of operations (pursuant to the Petroleum Regulations).

• Compliance with requirements of the Cattle Care and Organic Beef accreditation programmes.

• System is in place for logging landholder complaints to ensure that issues are addressed as appropriate.

• Seismic sources are not to operate within 20 m of any pipeline, utility, installation or building. This distance may need to be larger for explosive-sources, pending size of explosive used.

• Damage to station tracks is avoided. • Operations in wet weather are not allowed. • All gates are left in the condition in which they were

found (i.e. open/closed). • When necessary, all fences are restored to satisfaction

of landowner/managers • Induction for all employees and contractors covers

pastoral, conservation, legislation and infrastructure issues.

Gidgealpa and Mungerannie were officially permitted and then contacted prior to survey commencement. Main concern was high fire risk. Many fires burning in area from lightning strikes. No fire incidents as result of survey operations resulted. No problems for landholders. Non operational zone around infrastructure set at 50m. Only one fence on prospect. Was not damaged in anyway. All access via existing gate/grid on Jack Lake road. Gates / Grid left as found and no restoration of fence lines required

Objective 6: Avoid the introduction or spread of exotic species and implement control measures as necessary.

• Weeds or feral animals are not introduced into,

or spread, in operational areas

• All vehicles and equipment appropriately cleaned prior

to entering the Cooper Basin. • Vehicles and equipment are to be cleaned when

moving from areas within the Cooper Basin where weeds are present.

• Cleaning carried out in accordance with specified company procedures and accepted practices.

• Records of vehicle and equipment cleaning are kept and available for auditing.

• Records of detection, monitoring or eradication of exotic weed or other pest or noxious species introduced by industry activities are kept and are available for audit.

Crew mobilised from Challum in SWQ for the Nephrite start up. No exotic weeds in previous survey


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Environmental Objective Assessment Criteria Guide to How Objectives can be Achieved

Performance 2011 Report Period

Objective 7: Minimise disturbance to drainage patterns and avoid contamination of surface waters and shallow groundwater resources.

Campsite and survey line preparation • Campsites and survey lines/traverses are located

and constructed to avoid diversion of water flows. • The attainment of 0, +1 or +2 GAS criteria for

‘disturbance to land surface’ objective listed in Appendix 3.

• No uncontrolled flows to surface from aquifers intersected in upholes/shallow boreholes.

• There is no unnecessary interference with natural drainage features.

Fuel Storage and Handling • No spills occur outside of areas designed to

contain them. • Refuelling occurs at least 1km from watercourses

or sensitive ecological environments (wetlands). • Appropriate spill response equipment is available

on site. • Spills or leaks are immediately reported and clean

up actions initiated promptly.

• All access through watercourses area carefully

assessed to determine the locations of least impact to channels and creek banks.

• Any artesian flows are to be immediately plugged and monitored to ensure effectiveness of plug(s).

• Any required remediation work carried out as soon as possible after completion of all activities

• If any contamination from spillage of oils or fuel occurs during vehicular operations, immediate effective clean-up procedures must be employed.

Line preparation and survey crews camped in Santos’ Tirrawarra facility. Recording crew camped at Tindilpie 5 existing campsite. Prospect was large dune field. No water courses impacted. No soil contamination was reported to have occurred.

Objective 8: Optimise waste reduction and recovery.

• Wastes are segregated, burnt or transported to an

Environment Protection Authority (EPA) approved waste disposal facility for recycling or burial in accordance with approved procedures.

• 0, +1 or +2 GAS criteria are attained for ‘Negligible survey markers and rubbish in situ’ objective listed in Appendix 3.

• Production of waste is minimised by purchasing

biodegradable or recyclable materials where practical.

Waste transported to Moomba. GAS Audits yet to be completed.


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12. DRILLING AND WELL OPERATIONS

12.1 WELLSITE, CAMPSITE, BORROW PIT and ACCESS TRACK CONSTRUCTION & RESTORATION

During this reporting period, 18 wellsite leases were constructed which included 20.1 km of new tracks to provide access to these sites. A total of 41 borrow pits were necessary to provide fill for the tracks and leases.

At end of 2011 1 lease was being constructed and was completed 13/01/12 that required 1 borrow pit and 0.75 km of new track. A further 4 were pegged or scouted. The drilling sites scouted, constructed, backfilled and restored are listed in Appendix 4.

Partial restoration of drilling leases was carried out on 16 wells during 2011. 1.85 km of track and 9 borrow pits were restored. No borrow pits were sought by landholders.

Close consultation was maintained with pastoral lessees and National Parks rangers to ensure their interests and any issues raised remained high in consideration when conducting petroleum activities.

Disturbance to sites of Aboriginal and European heritage was avoided. Santos trained staff is used to scout sites prior to work commencing on the construction of sites and access. Where necessary, a consultant archaeologist is engaged to ensure heritage sites are avoided.

12.2 DRILLING OPERATIONS The drilling operations conducted by Santos are undertaken in accordance with the Statement of Environmental Objectives for Drilling and Well Operations and the Santos Drilling Management System and Drilling Operations Manual. Well casing design is undertaken in accordance with Santos procedures and industry guidelines, which take account of the pressures, stresses, risks, loads and the environmental conditions which exist in each circumstance. A total of 20 wells were drilled by the SACBJV. All were cased and suspended for later completion. There were also 4 wells drilled in PEL 114 by Santos A list of wells drilled by the SACBJV and Santos in 2011 is provided in Appendix 11.

12.3 DRILLING ACTIVITY – 2012 The major activity planned for 2012 (number indicated are only approximate) includes the following,

- 40 wells to be drilled - construct flow lines to connect successful wells to the production system

- the construction of access tracks, borrow pits and campsites as necessary - completion or re-completion operations - fracture stimulations


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12.4 WELL COMPLETION, WORKOVER, PRODUCTION, SUSPENSION and ABANDONMENT

There were 163 individual work-over operations conducted during 2011. Of these 2 were for PPL 206, 225 & 227. This involved 29 Fracture Stimulation operations. Work-over activities included casing repair, setting casing patches, down-hole pump installation/repair, well completion or re-completion, Integrity repairs, and perforation operations. These activities are listed in Appendix 5. At the end of this reporting period there were a total of 402 oil (166 producing) and 890 gas or gas/oil (467 producing) Santos operated wells. Of the gas or gas/oil wells, 332 wells (producing, inactive or suspended) were subject to casing annulus pressure testing. Completed and perforated gas or gas/oil wells (379 wells) were also subject to corrosion monitoring by water sampling, giving 1119 samples. Appendix 6 provides additional details. 12.4.1 Monitoring of Wells

Monitoring of well casing annuli pressure continued. Available data was reviewed and risk assessments performed to determine the best means to effectively categorise these wells. There were no high risk wells. The number of substantial and moderate risk wells is as follows: o No wells were rated as a Level 4 (High risk). o 24 wells were rated as Level 3 (Substantial risk). These wells have a

remaining mild steel barrier. Workovers will repair 7 of the Level 3 risk wells in 2012.

o 130 wells were rated as Level 2 (Moderate risk). These wells were able to be topped up and inhibit 1 of 2 remaining mild steel barriers.

Appendix 6 provides additional details.

12.5 WELL TESTING, COMPLETION and WORKOVER ACTIVITY – 2012 The corrosion monitoring and annulus pressure testing program will continue in 2012. 7 workover operations are planned to address and repair well integrity issues.

12.6 WELL/LEASE ABANDONMENT 5 leases were abandoned during 2011.

12.7 DOWNHOLE WELL ABANDONMENT – 2011 5 wells were plugged and abandoned post completion in 2011.

12.8 DOWNHOLE WELL ABANDONMENT – 2012 There are 2 well abandonments planned for in the 2012 work program.


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Environmental Objectives and Performance – Drilling and Well Operations SEO Environmental

Objectives Assessment Criteria Guide to How Objectives Can Be Achieved Performance

2011 Report Period

Objective 1: Minimise the risk to public and other third parties.

• Reasonable measures

implemented to ensure no injuries to the public or third parties.

All employees and contractor personnel complete a safety induction

prior to commencement of work in the field. All employees and contractor personnel undertake a refresher

induction every 2 years. Signage in place to warn third parties of access restrictions to

operational areas, with particular warnings when potentially dangerous operations are being undertaken.

Necessary measures (e.g. signage/fencing) taken to prevent the public accessing the wellhead equipment or waste relating to a given well.

Demobilisation inspections undertaken at random to ensure that backfilling and waste removal requirements are met.

Permit to work systems in place for staff and contractors in dangerous situations.

All appropriate PPE (personnel protective equipment) is issued and available as required in accordance with company operating requirements and applicable standards.

Effective Emergency Response Plan (ERP) and procedures are in place in the event of a fire or explosion; Annual exercise of ERP.

Communication of rig moves and other potential hazards to safety associated with drilling and well operations to potentially affected parties prior to commencement of operations.

Compliance with relevant speed restrictions on access roads and tracks.

Reporting systems for recording injuries and accidents in place, and annual (at minimum) review of records to determine injury trends.

Implementation of appropriate corrective actions. Ensuring safety management plans are updated and reviewed. Wastewater disposal in accordance with Objective 11.

There were no injuries to the public or any third parties arising from Drilling and Well operations in 2011. All Santos and Santos Contract employees attend a compulsory safety induction prior to commencing work. Refresher training is provided at regular intervals. Signs are installed at strategic locations in the operating area to deter the public from accessing drilling and production areas and when potentially hazardous tasks are undertaken. A specific Wellsite Permit-to-Work system is used to manage workplace / worksite safety. Personnel are provided with the relevant, approved PPE when undertaking potentially hazardous tasks. Emergency Response Plans and procedures are in place. These procedures are regularly exercised with identified improvements included into the ERPs. Relevant parties are advised of potentially hazardous operations before they are undertaken. An electronic accident and incident recording system is used to report and monitor accidents, incidents and trends. Safety Management Plans, including KPIs, have been developed and introduced by Santos and its contractors. These are regularly reviewed and updated. Emergency Response procedures for well operations were reviewed and updated during this reporting period.


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Environmental Objectives

Assessment Criteria Guide to How Objectives Can Be Achieved Performance 2011 Report Period

Objective 2: Minimise disturbance and avoid contamination to soil.

Well Site and Access Track Construction 0, +1 or +2 GAS

criteria are attained for “Minimise impacts on soil” objective as listed in Appendix 1 Table A1 and “To minimise the visual impact” as listed in Appendix 1 Table A2.

No unauthorised off-road driving or creation of shortcuts.

No construction activities are carried out on salt lakes or steep tableland slopes (as defined in EIR).

Borrow pit construction and restoration 0, +1 or +2 GAS

criteria are attained for “Minimise visual impacts’, and “Minimise impact on soil” objectives as listed in Appendix 1 Table A3.

Production Testing/Well Blowdowns No soil contamination

as a result of production testing or well blowdown operations.

Well Site and Access Track Construction Consider alternate routes during planning phase to minimise

environmental impacts. Use existing routes / disturbed ground where practicable. Gibber mantle on access tracks and well sites (excluding sumps) is

not removed where possible, only rolled, in gibber and tableland land systems. Gibber mantle reinstated where appropriate during restoration.

Topsoil stockpiled (including gibber mantle) from sump construction and respread (and gibber recompacted) on abandonment.

The need to traverse sensitive land systems and the methods of managing the impacts must be justified in accordance with company procedures, recorded and available for auditing.

Borrow pit construction and restoration Existing borrow pits to be re-used where practicable. Siting of new borrow pits to avoid sloped areas and gibber as far as

practicable. Topsoil stockpiled (including gibber mantle) and respread on

abandonment (gibber to be recompacted). Production Testing / Well Blowdowns If appropriate use:

- impermeable or clay lined flare pit to flare / contain hydrocarbons. - flare tanks.

Soil disturbance is minimised wherever possible. Rootstock is left intact and top soil is stockpiled for respreading. This is respread during site restoration. Off-road driving is actively discouraged. Alternate routes are considered in planning. Work is restricted to ROW. No construction activity is carried out on salt lakes, steep tablelands or wetland systems. Audits of construction activity are undertaken with high level of performance. Borrow pit construction is minimised by reuse of any suitable existing borrow pit/s. Borrow pits are restored on an ongoing basis to ensure the most time efficient restoration Gas well post fracture stimulation activities remained largely unchanged with dry gas wells typically only flowed 4 to 5 days to atmosphere (flaring where possible) to clean up frac fluids prior to the wells being shut in and connected. Liquids rich gas wells were flowed for similar durations, but were flowed through separators to capture the liquids with the gas going to flare.


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Objective 2 cont: Minimise disturbance and avoid contamination to soil.

Fuel and Chemical Storage and Handling No spills/leaks outside

of areas designed to contain them.

Level of hydrocarbon continually decreasing for in situ remediation of spills.

Soils remediated to a level as determined by the SHI process.

Also refer to Objective 12.

Waste Disposal (domestic, sewage and sludges) All domestic wastes

are disposed of in accordance with EPA licensing requirements.

0, +1 or +2 GAS criteria are attained for “Site to be left in a clean and tidy condition” objective listed in Appendix 1 Table A2.

No spills or leaks from sewage treatment processing.

Refer to Assessment Criteria for Objective 11.

Fuel and Chemical Storage and Handling All fuel, oil and chemical storages bunded in accordance with the

appropriate standards and guidelines e.g. EPA guideline 080/07 Bunding and Spill Management.

Records of spill events and corrective actions maintained in accordance with company procedures.

Spills or leaks are immediately reported and clean up actions initiated. Logged incidents are reviewed annually to determine areas that may

require corrective action in order to reduce spill volumes in subsequent years (and drive continual improvement).

Chemical and fuel storage procedures, including signage, are reviewed and monitored in audit process.

Spill Response / Contingency Planning Results of emergency response procedures carried out in accordance

with Regulation 31 show that an oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.

Oil spill contingency plan (reviewed annually) is up to date with specific scenarios relating to spills to creeks and floodplain areas.

Spill response equipment is audited annually. Annual spill response training exercise / rehearsal is undertaken. Spills or leaks are immediately reported and clean up actions initiated. Waste Disposal (domestic, sewage and sludges) Covered bins are provided for the collection and storage of wastes. All loads of rubbish are covered during transport to the central waste

facility. Approved transportable Aerated Wastewater Treatment Plants (AWTPs)

used for rigs/camps (once approved AWTPs are available from a supplier suitable to Santos1). Interim controls for management of sewage effluent (developed in consultation with the Department of Health) implemented1.

Use of permanent septic systems with camps where possible Refer to Objective 11.

No spills occurred outside areas designed to contain them. SACBJV learnings from Incidents were reviewed to enable improvement strategies to be identified and are applied to other Santos operated PEL and PPLs No oil spill is likely to have impacted ground water. Records of spills are maintained. Spills are reported in accordance with legislative and company requirements. Incident registers are reviewed to determine areas requiring improvement and to ensure ongoing improvement. Domestic wastes are disposed of in accordance with EPA License Requirements. Audits identified good Performance Waste bins and containers are covered during Transport New landfill cell completed and approved by EPA Landfill cells are located only at Authorised facilities and are fenced to exclude stock and wildlife There were no incidents at installed sewage disposal Facilities


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Objective 3: Avoid the introduction or spread of pest plants and animals and implement control measures as necessary.

No weeds or feral animals

are introduced to, or spread in, operational areas as a consequence of activities.

Where appropriate a weed and feral animal management strategy is in

place (avoidance and control strategies). Rig and vehicle wash downs are initiated in accordance with the

management strategy.

Weed and feral animal strategies are in place. There is no evidence of the introduction of weeds or feral animals. Vehicles and rig equipment is washed in accordance with the management strategy.

Objective 4: Minimise disturbance to drainage patterns and avoid contamination of surface waters and shallow ground water resources.

Well Lease and Access Track Construction Well sites and access

tracks are located and constructed to maintain pre-existing water flows (i.e. channel contours are maintained on floodplains and at creek crossings).

Drilling Mud Sumps and Flare Pits No overflow of drill

cuttings, muds and other drilling fluids from mud sumps.

No waste material disposal to sumps and flare pits.

Well Heads (Oil and Gas Systems) No leaks/spills outside of

areas designed to contain them.

Well Lease and Access Track Construction Sensitive land systems (e.g. wetlands) avoided wherever possible.

Where activities are undertaken in or near these areas, appropriate review, assessment and mitigation measures are in place to ensure that surface water flows are maintained and contamination of surface water and groundwater is avoided.

Drilling Mud Sumps and Flare Pits All drill cuttings, muds and non toxic drill fluids are contained within the

designated mud sumps with adequate freeboard at the completion of operations to allow for a 1m cover of clean fill at remediation.

Well Heads (Oil and Gas Systems) Where appropriate, imperviously lined well cellars are installed on oil

wells. Bunds / containment devices are installed on gas well skids. Well heads shut in and chemicals removed prior to flood events. Jet pumps are installed within containment device with an adequately

sized containment sump.

Drainage channels and patterns are maintained or restored to minimise impeding or changing natural drainage patterns associated with well leases, access tracks and roads and at creek crossings.

Work programs are modified to avoid periods of flooding and other seasonal influences and variations.

No overflow of drilling mud sumps occurred. No waste material is disposed of in drilling mud sumps or flare pits. Investigated alternatives for impervious lining for well cellars. Automatic shutdown of wellhead pumps investigated and devices progressively fitted to all beam pumps to shutdown pump if Polished rod packer fails. Wells are shut-in and wellhead equipment is removed in areas to be impacted by flooding. Jet-pumps are installed with 9M3 sumps.


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Objective 4 cont Minimise disturbance to drainage patterns and avoid contamination of surface waters and shallow ground water resources.

Well Blowdown/Production Testing No water (surface or

groundwater) contamination as a result of production testing or well blowdown operations.

Fuel/Chemical Storage and Handling No water (surface or

groundwater) contamination as a result of fuel or chemical storage and handling.

Well Blowdown/Production Testing Activity is conducted in accordance with accepted industry standards /

good oilfield practice. If appropriate use:

- impermeable / clay lined flare pit - flare tanks - separators - supervision.

Fuel and Chemical Storage and Handling All fuel, oil and chemical storages bunded in accordance with the

appropriate standards (e.g. AS 1940 and EPA guideline 080/07 Bunding and Spill Management).

Records of spill events and corrective actions maintained in accordance with company procedures.

Spills or leaks are immediately reported and clean up actions initiated. Logged incidents are reviewed annually to determine areas that may

require corrective action in order to reduce spill volumes in subsequent years (and drive continual improvement).

Chemical and fuel storage procedures, including signage, are reviewed and monitored in audit process.

Waste Management Refer to Objective 11. Spill Response / Contingency Planning Results of emergency response procedures carried out in accord with

Regulation 31 show that oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.


Spill response equipment is audited annually. Annual spill response training exercise / rehearsal is undertaken.

See Objective 2 above. Records of spills are maintained Spills which occurred outside areas designed to contain them are reported at quarterly meetings. Spills are reported in accordance with legislative and company requirements. Incident registers are reviewed to determine areas requiring improvement and to ensure ongoing improvement. Soil removed to land farm in some instances to eliminate contamination. No spill is likely to have impacted ground water. Emergency response procedures for spill response are in place and regularly exercised. Learning from exercises and actual events are included in Plans. Oil Spill Plans are up-to-date and regularly drilled. Spill response equipment and procedures are regularly audited.

Regular drills are conducted.


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Objective 5: Avoid disturbance to sites of cultural and heritage significance.

Proposed well sites and

access tracks have been surveyed and any sites of Aboriginal and non-Aboriginal heritage identified.

Any identified cultural and heritage sites have been avoided.

Consultation with stakeholders (i.e. government agencies, landholders

etc) in relation to the possible existence of heritage sites, as necessary.

Heritage report forms completed for any sites or artefacts identified, and report forms forwarded to the Aboriginal Heritage Branch, Aboriginal Affairs and Reconciliation Division (AARD).

Survey records are kept and are available for auditing. Areas requiring remediation which lie outside previously surveyed

sites should be surveyed in accordance with company heritage clearance procedures.

A procedure is in place for the appropriate response to any sites discovered during drilling activities.

Note: Where a negotiated agreement or determination for heritage clearance is in place, compliance with the negotiated agreement or determination takes precedence over the above criteria.

Construction sites are inspected for cultural heritage sites. Identified sites are avoided. Significant sites are fenced. Identified sites are avoided.

Objective 6: Minimise loss of aquifer pressures and avoid aquifer contamination.

Drilling & Completion Activities There is no uncontrolled

flow to surface (blow out). Sufficient barriers exist in

casing annulus to prevent crossflow between separate aquifers or hydrocarbon reservoirs.

Relevant government approval obtained for abandonment of any radioactive tool left downhole.

Drilling & Completion Activities

A competent cement bond between aquifer and hydrocarbon reservoirs is demonstrated.

For cases where isolation of these formations is not established, a risk assessment incorporating the use of pressure / permeability / salinity data is undertaken in consultation with DLWBC & SAALNRM Board to determine if lack of cement or poor bond will cause or has caused damaging crossflow which needs to be remediated.

There were no well bore failures reported


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Objective 6 Cont: Minimise loss of aquifer pressures and avoid aquifer contamination

Producing, Injection, Inactive and Abandoned Wells • No cross-flow behind casing

between aquifers, and between aquifers and hydrocarbon reservoirs unless approved by DFW.

Producing, Injection and Inactive Wells

Monitoring programs implemented (e.g. through well logs, pressure measurements, casing integrity measurements and corrosion monitoring programs) to assess condition of casing and cross-flow behind casing.

Casing annulus pressures are monitored every 2 years. The condition of the primary casing barrier is adequate. For cases where crossflow is detected, a risk assessment

incorporating the use of pressure / permeability / salinity data is undertaken in consultation with DFW & SAALNRM Board to determine if lack of cement or poor bond will cause or has caused damaging crossflow which needs to be remediated.

Well Abandonment Activities

Isolation barriers are set in place to ensure that crossflow, contamination or pressure reduction will not occur.

Barriers will be set to meet or exceed the requirements of applicable standards for the decommissioning and abandonment of water bores and abandonment of petroleum wells. The placement of isolation barriers will in general be to isolate the groups of formations as listed under comments. The number and placement of barriers may be varied from this standard approach on a case-by-case basis by Santos personnel using relevant available data and the SA Cooper Basin Water Pressure and Salinity Module Report (2002), and in consultation with DFW.

Corrosion monitoring, pressure measurements and casing integrity monitoring programs undertaken on a regular basis. Wells prioritised for remedial action based on condition of casing barriers. Cement bond logs conducted on new wells for baseline indication of cement bond.


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Objective 7: Minimise disturbance to native vegetation and native fauna.

Well Lease and Access Track Construction and Restoration Any sites with rare,

vulnerable and endangered flora and fauna have been identified and avoided.

0, +1 or +2 GAS criteria are attained for “Minimise impact on vegetation” objective as listed in Appendix 1 Table A1 and “The revegetation of indigenous species” objective as listed in Appendix 1 Table A2, during well lease and access track site selection and construction and restoration.

Borrow Pit Construction and Restoration 0, +1 or +2 GAS criteria

are attained for “Minimise impacts on vegetation” objectives as listed in Appendix 1 Table A3 during borrow pit site selection, construction, and restoration.

Waste Management Refer to assessment

criteria for Objective 11. Fuel and Chemical Storage and Handling • Refer to assessment criteria for Objectives 2 and 4.

Well Lease and Access Track Construction and Restoration Proposed well sites, camp sites, access tracks and borrow pit sites

have been assessed for rare, vulnerable and endangered flora and fauna species before the commencement of construction.

Consider alternate routes during planning phase to minimise environmental impacts

Sensitive land systems (e.g. wetlands) avoided wherever possible. Where activities are undertaken in these areas (i.e. no practicable alternative), appropriate review, assessment and mitigation measures are in place.

Facilities (e.g. borrow pits, well cellars) are designed and constructed as far as practicable to minimise fauna entrapment.

Sumps and mud pits are fenced as appropriate to minimise wildlife access

Assessment records are kept and are available for auditing. In recognised conservation reserves (i.e. Innamincka Regional

Reserve) excavations are left in a state as agreed with the responsible statutory body

Borrow pits are restored to minimise water holding capacity, where agreements are not in place with stakeholders.

Waste Management Covered bins are provided for the collection and storage of putrescible

wastes. All loads of rubbish are covered during transport to the central waste

facility. Refer to Objective 11. Fuel and Chemical Storage and Handling Refer to Objectives 2 & 4. Fauna Management No domestic pets allowed at camps or worksites. Feeding of wildlife (e.g. dingoes) is not permitted.

Study undertaken to determine habitats for rare, vulnerable and endangered species. Areas identified are avoided. Vegetation impacts are minimised during well lease access and construction by scouting surveys prior to the entry of construction machinery. Wherever possible, significant vegetation is avoided. Borrow pit site selection provides for the avoidance of vegetation impacts. Borrow pits are restored on an ongoing basis to allow natural vegetation regrowth to recommence. Where necessary, borrow pits are reopened to minimise vegetation impacts.


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Assessment Criteria Guide to Objectives Achievement Performance 2011 Report Period

Objective 8: Minimise air pollution and greenhouse gas emissions.

Performance to EPA

requirements.

Well Testing Conduct well testing in accordance with appropriate industry accepted

standards. Continually review and improve operations. Appropriate emergency response procedures are in place for the case

of a gas leak. Well Blowdown Blowdown carried out in accordance with industry accepted standards /

good production practice. Any well that is consistently blown down is identified for a small ID

tubing or plunger lift installation to minimise blow downs on that well.

Petroleum engineering activities are continuously reviewed for opportunities to minimise air pollution and greenhouse gas emissions. Emergency response procedures are in place, are regularly tested and improvements identified are included in the plans.

Objective 9: Maintain and enhance partnerships with the Cooper Basin community.

No unresolved reasonable

complaints from the community.

Relevant affected parties are notified and consulted on proposed

activities. Forward development plans are presented to the local community. Local community projects and events are sponsored and supported

where appropriate. Industry membership of appropriate regional land management

committees and boards

Relevant parties are notified and consulted on proposed activities. There were no complaints, concerns or issues left unresolved. Local community events and activities are actively supported. Membership and active participation is made to regional management committees and Boards.


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Objective 10: Avoid or minimise disturbance to stakeholders and/or associated infrastructure

No reasonable

stakeholder complaints left unresolved.

Induction for all employees and contractors covers pastoral,

conservation, tourism, legislation and infrastructure issues. Relevant stakeholders are notified prior to survey and construction of

well sites, camp sites and access tracks and undertaking of operations (pursuant to Regulations). Borrow pits left open (unrestored) if requested by landholder and upon receipt of letter of transfer of responsibility to landholder.

Gates or cattle grids are installed to a standard, consistent with pastoral infrastructure in fences where crossings are required for access.

All gates left in the condition in which they were found (i.e. open/closed).

Potential sources of contamination are fenced as appropriate to prevent stock access.

Excavations are located and managed so as not to pose an unacceptable hazard to stock or wildlife.

System is in place for logging landholder complaints to ensure that issues are addressed as appropriate.

Requirements of the Cattle Care and Organic Beef accreditation programs are complied with.

In recognised conservation reserves (e.g. Innamincka Regional Reserve) excavations are left in a state as agreed with the responsible statutory body (e.g. DEH).

The importance of developing and maintaining good relationships with landholders is stressed to all employees and contractors. Relevant stakeholders are notified of and consulted about projects and are provided with information, maps etc. No Borrow pits were formally transferred to landholders. Grids, fences, gates installed are to a standard acceptable to the landholder. All gates are left “as found”. In response to concerns regarding potential for contamination of cattle an extensive fencing of facilities program was completed in 2005 and continues to be installed and repaired as required Landholder complaints and requests are logged to ensure closeout. There were no complaints lodged. Cattle management systems (cattle care) are recognised and complied with.


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Objective 11: Optimise waste reduction and recovery.

All wastes to be disposed

of at an EPA licensed facility in accordance with EPA Licence conditions, with the exception of drilling fluids, drill cuttings, other fluids disposed during well clean-up and wastewater (see below).

Wastewater (sewage and grey water) disposed of in accordance with the Public and Environmental Health (Waste Control) Regulations 1995 or to the Department of Health’s satisfaction.

Attainment of GAS criteria for “Site to be left in clean, tidy and safe condition” objective during well site restoration.

Attainment of GAS criteria for “Site left in clean and tidy condition” objective during borrow pit restoration

Chemicals and oil are purchased in bulk. “Bulki bins” or other storage

tanks are in place for large volume items. Covered bins are provided for the collection and storage of putrescible

wastes. All loads of rubbish are covered during transport to a licensed waste facility.

Waste streams are segregated on site to maximise opportunities for waste recovery, reuse and recycling.

Coordinate covered waste transportation on backload. Production of waste is minimised by purchasing specifying reusable,

biodegradable or recyclable materials in procurement, where practical. Drilling fluids, drill cuttings and other fluids are disposed of to sump on

the Act licence area. Waste water (sewage) disposal is where possible in accordance with

the Public and Environmental Health (Waste Control) Regulations 1995 (which require that the waste water disposal system must either comply with the Standard for the Construction, Installation and Operation of Septic Tank Systems in SA or be operated to the satisfaction of the Department of Health) and the Environment Protection (Water Quality) Policy 2003.

Grey water is disposed of to the sewage treatment system. Secondary treated sewage wastewater is disposed of onto land well

away from any place from which it is reasonably likely to enter any waters, and to minimise spray drift and ponding, in accordance with clause 11 of the Environment Protection (Water Quality) Policy 2003.

Chemicals, cement & inhibitors are purchased in bulk containers. Waste material is disposed of at EPA Approved facilities.


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Objective 12: Remediate and rehabilitate operational areas to agreed standards.

No unresolved reasonable

stakeholder complaints. Contaminated Site Remediation Contaminated sites are

remediated in accordance with criteria developed with the principles of the National Environment Protection Measure for Contaminated sites and in consultation with the EPA.

Well Site and Access Track Restoration The attainment of 0, +1 or

+2 GAS criteria for: - “minimise visual

impact of abandoned well sites”

- “minimise visual impact of abandoned access tracks”

- “re-establish natural vegetation on abandoned well sites and access tracks”

Borrow Pit Restoration The attainment of 0, +1 or

+2 GAS criteria for: - “minimise impact on

vegetation” - “minimise impact on

soil” - “Minimise visual

impacts” Note: Well abandonment

issues addressed under objective 6.

Rehabilitation/ abandonment plans for surface activities will be

developed in consultation with relevant stakeholders Well Site and Access Track Restoration Compacted soil areas have been ripped (except on gibber and

tablelands) and soil profile and contours are reinstated following completion of operations.

No complaints raised by stakeholders.


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13. PRODUCTION & PROCESSING FACILITY OPERATIONS This section of the Annual Report addresses the operation, performance and performance achievement in the operation of gas and oil wells, gathering systems, water disposal facilities, pipeline systems and the Moomba process plant. During 2011, the pipeline, flowline and trunkline network delivered natural gas, Ethane, Condensate and Crude Oil to the Moomba Plant resulting in the export volumes listed in the Table below,

Sales Gas Ethane LPG Condensate Crude Oil

(PJ) (PJ) (Kt) (Ml) (mm BBLS)

84.4 10.6 205.4 254 5.968

The above Crude Oil includes the following:

(mm BBLS)

PEL114 (Stimpee, Hoek, Stimpson Jay and Teringie) 0.134

PPL 225, 226 & 227 (Stimpee, Hoek, Stimpson Jay, Teringie & Frostillicus) (does not include Cartman) 0.125

PPL 206 PPL 215 (Derrilyn & Toparoa) 0.063

Reg Sprigg West 0.002

13.1 PRODUCTION FACILITY PROJECTS During 2011 a number of plant and field facility projects were completed and a listing of some of these is provided in Appendix 10a. There are a number of projects that have continued to be progressed or were commenced previously, these are listed in Appendix 10b, as are those that are planned to commence in 2012.

13.1.1 MOOMBA PLANT In the Moomba Plant, the major activities included,

- Inspection of processing facilities - Utilities Reliability Projects to increase equipment reliability & availability across all Moomba Utilities, including new super Heater for Boiler #10

- Upgrade to control systems on LRP Residue Compressors - Upgrade projects to Cold Service pump seal systems in LRP


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13.2 PRODUCTION FORECAST – 2012 The estimated gas and liquids production and export volumes from the Moomba Plant for 2012 are as listed below,

Sales Gas (PJ) 102.1

Ethane (PJ) 9.4

LPG (Kt) 224.2

Condensate (Kbbls) 1715

Crude Oil (Kbbls) 4.764

The above Crude Oil includes the following:

mm BBL(S)

PEL114 (includes PPL 225, 226 & 227 for 2012) 0.152

PPL 225, 226 & 227(Stimpee, Hoek, Stimpson Jay, Teringie & Frostillicus) (does not include Cartman, or new wells Chimmichurri/Kakapo/Wallace in 2012)

0.105

Derrilyn & Toparoa 0.035

Reg Sprigg West 0.006

Estimated Third Party Deliveries from Moomba 2.561

2012 Gas Storage Estimates

Opening Storage (PJ) Sales Gas + ethane 39.28

Net Storage Injection / (Withdrawal) (PJ) 8.59

Total Closing Sales Gas and Ethane Storage (PJ) 47.87

13.3 PIPELINE CONSTRUCTION, OPERATION AND MONITORING During the reporting period the Cathodic Protection (CP) units and pipeline voltage potentials in the Cooper Basin were monitored bi-monthly for protected pipelines. Performance survey along protected pipelines is normally completed on an annual basis as per AS 2885 requirements.

Most batch treatment of gas and oil trunklines and gathering lines, normally carried out in an annual basis, were completed in accordance with Santos’ Integrity Management Plans. Pipeline right of ways, normally inspected during the annual Cathodic Protection surveys of protected pipelines were also affected by lack of access due to severe floods.

Corrosion inhibitor was injected into raw gas pipelines at wells and satellite stations. Inhibitor pumps were monitored and maintained at intervals ranging from monthly to three monthly as prescribed by Santos’ Integrity Management Plan. The biocide


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injection facilities on the major oil transmission lines, to manage microbiological corrosion, have been upgraded to pulse injection systems.

Water samples were obtained from flowlines for residual amine and dissolved iron analysis, with the results used to optimise the corrosion inhibitor injection rates on gas pipelines. In addition samples were taken to determine the source of microbiological induced corrosion (MIC).

MIC continuous improvement program continues to be implemented and improved, driven by a steering committee made up of personnel from integrity, laboratories and production. The program has identified activities which include pigging, pipeline suspension, and source of bacteria, 3rd party contamination, biocide, design, and procedures. During 2011, pipelines and flowlines were constructed to connect new wells to the production system, as listed in Appendix 7. Various inspections, repairs and testing was undertaken on pipelines as listed in Appendix 8, a program covering in line inspection of key pipelines was also initiated. The Pipeline Management System was further enhanced during 2011 by improving the standard of integrity management plans, rationalising the risk distribution in all fields and completing annual Pipeline Integrity Reviews (PIR) and detailed risk reviews. This process has been supported by further development of the Pipeline Integrity Database, KPI reporting and IMP compliance tracking to support the Management System and provide the heart of the pipeline task management and records management system.

13.4 LICENSED PIPELINES This report also covers the Licensed Pipelines covered by Pipeline Licenses Numbers 5 (Ballera to Moomba), 9 (Stokes to Mettika) and License No. 15 (Moon to Kerna) flowline. The activities carried out in relation to PL 5, PL 9 and PL 15 are administered in accordance with each pipeline’s individual integrity management plan (IMP). The IMPs have been created to ensure each pipelines integrity and compliance with the Petroleum Act (2000), Petroleum Regulations (2000) and the relevant SEO’s. There were no incidents recorded on any of the Licensed Pipelines. The reporting of Environmental Objectives and Performance – Production and Processing SEO, are covered in detail in this report and are considered to also address the performance in respect to the pipeline SEOs.

Various inspections, repairs and testing were undertaken on the Licensed Pipelines, details specific to each pipeline are as follows:

13.4.1 PL 5 – Ballera to Moomba Pipeline Internal Corrosion Mitigation • Continuous inhibitor injection of 10.0ltrs per day (IRN341A target rate, the

injector system was monitored monthly. • The pipeline was operationally pigged on 27th May 2011. • The pipeline was batch treated with corrosion inhibitor on 15th October 2011.


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• Pig Launcher treated with corrosion inhibitor on 15th October 2011; Pig Receiver treated on 13th May 2011.

External Corrosion Mitigation • The operation of CP Units associated with the pipeline were checked bi-monthly. • A complete Cathodic Protection Test Post Potential survey was performed in

October 2011 indicating full compliance with the AS 2832 ‘Off Potential’ criteria.

Inspection • The ROW patrol was performed October 2011. ROW observed to be in good

condition.

13.4.2 PL 9 – Stokes to Mettika Pipeline Internal Corrosion Mitigation • Continuous inhibitor injection of 5.0ltrs per day (IRN341A target rate, the injector

system was monitored monthly. • The pipeline was operationally pigged on six-weekly basis as per the pipelines

IMP (94% compliance to this frequency). • The pipeline was batch treated with corrosion inhibitor on 25th March 2011. • Pig Launcher & Pig Receiver were both treated with corrosion inhibitor on 21st

August 2011. External Corrosion Mitigation • The operation of CP Units associated with the pipeline were checked bi-monthly. • A complete Cathodic Protection Test Post Potential survey was performed in

October 2011 indicating non-compliance with the AS 2832 ‘Off Potential’ criteria. The non-compliance was attributed to a number of failed insulation joints (IJs) in the associated Stokes-Tellus CP system. These IJs are to be replaced Q1, 2012, which is expected to bring CP back to compliant levels (Note: This has been confirmed by Feb, 2012 CP TP survey).

Inspection • An In-Line Inspection (ILI) was performed in July 2011. Preliminary analysis of

results indicates a total of 812 metal loss anomalies with depth >= 10% NWT loss. The deepest defect reported was estimated at 32% NWT loss and located on the internal surface of the pipeline. A more detailed defect assessment (including comparison with 2005 ILI data) will be performed Q2 2012 to determine the requirement for dig-up verification and a suitable follow-up ILI date.

• The ROW patrol was performed October 2011. ROW observed to be in good condition.

13.4.2 PL 15 – Moon to Kerna Pipeline Internal Corrosion Mitigation • Continuous inhibitor injection of 2.0ltrs per day (IRN341A target rate, the injector

system was monitored monthly.

External Corrosion Mitigation • The operation of CP Units associated with the pipeline were checked bi-monthly. • A complete Cathodic Protection Test Post Potential survey was performed in

April 2011 indicating full compliance with the AS 2832 ‘Off Potential’ criteria.


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Inspection • The ROW patrol was performed April 2011. ROW observed to be in good

condition. Product transported through Licensed pipelines in 2011 was: Sales Gas (PJ) Ethane (PJ) LPG (Kt) Cond (Ml)

Ballera to Moomba 23.4 2.7 42.4 58.3 Stokes to Mettika 1.4 0.3 4.0 5.2

Moon to Kerna 0.05934 0.00835 0.06464 0.05817

13.5 ROAD AND WELLSITE LEASE AND ACCESS CONSTRUCTION AND RESTORATION

A large network of roads is maintained in order to provide access to production sites and to drilling locations. Roads are maintained to agreed standards, dependent upon application and the frequency of use. Performance against the Production and Processing SEO is described in the following table.

13.5.1 WELLSITE LEASE AND ACCESS CONSTRUCTION AND RESTORATION Access to drilling locations and the wellsite area is constructed following the scouting of individual locations to identify a route which has the least environmental impact. A total of 20.1 Km of access road was constructed during 2011 and 3.95 km of road was restored. The drilling sites scouted, constructed, backfilled and restored are listed in Appendix 4.

There were 41 borrow pits constructed during 2011, to provide fill for well lease and related road construction, and 9 borrow pits were restored. No borrow pits were transferred to the land holder.

13.5.2 ROAD CONSTRUCTION A new 11.5km road access was constructed from Tirrawarra to Fly Lake that included 17 new borrow pits As part of the installation of the Walkers Crossing Bridge a 3.1km culverted landbridge was constructed from Fly Lake. The Walkers Crossing approach roads were reconstructed to maximum elevation of 29.3m AHD

The Moomba to Tirrawarra road reconstruction was for 17.5km that required 7 new borrow pits to supply base fill.


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13.6 WATER EXTRACTION FROM COOPER CREEK In accordance with the Production and Processing SEO water extraction from the Cooper Creek is allowed under specific criteria related to flow in the Cooper Creek, refer objective 4. During 2011 Santos took no water under this allocation. Due to flooding and access issues, unable to cross Cooper Ck at Innamincka to access other water source, approval was given to Beach Energy to take water per this for drilling activity at Holdfast 1. Water was only taken in compliance with conditions in SEO. During Jan to Mar 2011 1.47 ML were taken, the total for 2011.

Santos Ltd ABN 80 007 550 923 PPL 225, 226 and 227 Santos Operations

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Environmental Objectives and Performance – Production and Processing SEO Environmental

Objectives Assessment Criteria Guide to How Objectives Can Be Achieved Performance

2011 Report Period

Objective 1: Minimise any safety risk to public and other third parties.

• Reasonable measures

implemented to ensure no injuries to the public or third parties.

All employees and contractor personnel complete a safety induction prior to

commencement of work in the field. All employees and contractor personnel undertake a refresher induction

every 2 years. Signage in place to warn third parties of access restrictions to operational

areas, with particular warnings when potentially dangerous operations are being undertaken.

Necessary measures (e.g. signage/fencing) taken to prevent the public accessing the wellhead equipment or waste relating to a given well.

Demobilisation inspections undertaken at random to ensure that backfilling and waste removal requirements are met.

Permit to work systems in place for staff and contractors in dangerous situations.

All appropriate PPE (personnel protective equipment) is issued and available as required in accordance with company operating requirements and applicable standards.

Effective Emergency Response Plan (ERP) and procedures are in place in the event of a fire or explosion; Annual exercise of ERP.

Communication of rig moves and other potential hazards to safety associated with drilling and well operations to potentially affected parties prior to commencement of operations.

Compliance with relevant speed restrictions on access roads and tracks. Reporting systems for recording injuries and accidents in place, and annual

(at minimum) review of records to determine injury trends. Implementation of appropriate corrective actions. Ensuring safety management plans are updated and reviewed. Wastewater disposal in accordance with Objective 11.

There were no injuries to the public or any third parties Induction training is provided to all Santos and contractor Employees Refresher training is provided. Signs are placed to warn the public about the hazards associated with accessing production areas. A Work Permit System, which is regularly audited, is in place. Santos and Contractor personnel are provided the appropriate PPE. Effective emergency response plans exist, which are regularly exercised. Regular emergency exercises are conducted. Communication of potentially hazardous or unusual tasks is made to affected parties prior to being undertaken. Injury and incident recording and reporting systems are maintained.

Safety management plans are reviewed and updated regularly.


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Objective 2: Minimise disturbance and avoid contamination to soil.

Construction Activities (e.g. pipelines and roads) No evidence of

significant subsoil on surface (colour) on the pipeline ROW following construction.

No subsidence is evident over pipeline trench.

At pipeline dune crossings, dune profiles have been restored consistent with surrounding dune profiles.

No visual evidence of soil compaction following remediation of the pipeline easement (e.g. hard soil, local water pooling).

The extent of erosion on the ROW is consistent with surrounding land.

No unauthorised off-road driving or creation of shortcuts.

No construction activities are carried out on salt lakes or steep tableland slopes (as defined in EIR).

0, +1 or +2 GAS criteria are attained for goals related to this objective

Construction Activities (e.g. pipelines and roads) Santos operational procedures and guidelines are in place and will be

followed for construction activities, for example to conserve soil resources: topsoil is stockpiled separately from subsoil and respread during

reinstatement

no windrows remain after pipeline construction (except on dunes where some windrows are inevitable after reprofiling but will quickly disappear

if a crown over the pipeline trench is left to alleviate subsidence, periodic breaches are left to avoid channelling water flows down the ROW

areas of compacted soil are ripped Consider alternate routes during planning phase to minimise environmental

impacts. Works are restricted to construction ROW. The need to traverse sensitive land systems and the method of managing

the impacts must be justified in accordance with company procedures, recorded and available for auditing.

Annual audit of construction practices. Spill Response / Contingency Planning Results of emergency response procedures carried out in accordance with

Regulation 31 show that an oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.


Spill response equipment is audited annually. Annual spill response training exercise is undertaken. Refer to Section 3 “Reporting” for clarification of incident reporting

requirements

Soil disturbance is minimised wherever possible. Rootstock is left intact and top soil is stockpiled for respreading. This is respread during site restoration. Off-road driving is actively discouraged. Alternate routes are considered in planning. Work is restricted to ROW.

No construction activity is carried out on salt lakes, steep tablelands or wetland systems.

Audits of construction activity are undertaken with high level of performance.

Borrow pit construction is minimised by reuse of any suitable existing borrow pit/s. Borrow pits are restored on an ongoing basis to ensure the most time efficient restoration


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Objective 2 cont: Minimise disturbance and avoid contamination to soil

Fuel and Chemical Storage, Handling and Transportation No spills/leaks outside


Soils remediated to a level as determined by the SHI Decision Framework.

Also refer to Objective 12.

Oil/Condensate Spills (Pipeline/Road Transport) No spills/leaks outside




Produced Formation Water (PFW) • 0, +1 or +2 GAS criteria are attained for goals related to produced formation water impacts on soil. • PFW EMP developed

and objectives achieved.

Fuel and Chemical Storage, Handling and Transportation All fuel, oil and chemicals are stored, handled and transported in

accordance with appropriate standards and guidelines e.g. Australian Standard AS 1940, Australian Dangerous Goods (ADG) Code, EPA guidelines 080/07 Bunding and Spill Management.

Fuel and chemical storage, handling and transport procedures are reviewed and monitored in audit process.

Records of spill events and corrective actions are maintained in accordance with company procedures.

Spills or leaks are immediately reported and clean up actions initiated. Logged incidents are reviewed annually to determine areas that may require

corrective action to reduce spill volumes in subsequent years (and drive continual improvement).

Audit against EHSMS standards for underground storage tanks and bunds on a four yearly minimum frequency.

Oil/Condensate Spills (Pipeline/Road Transport) Pipelines are compliant with AS2885 pipeline standards Pipeline Management System is reviewed annually. Pipelines are inspected and maintained in accordance with Pipeline Integrity

Management System Spills or leaks are immediately reported and clean up actions initiated. Records of spill events and corrective actions are maintained in accordance

with company procedures. Produced Formation Water (PFW) Develop (in consultation with PIRSA and the EPA) and implement Environmental Management Plan (EMP) following the PFW facility status review that has been conducted.

Spills that occurred outside areas designed to contain them are reported at quarterly meetings.

Records of spills are maintained.

Spills are reported in accordance with legislative and company requirements.

Incident registers are reviewed to determine areas requiring improvement and to ensure ongoing improvement.

There were four events reported that related to groundwater impacted by hydrocarbon leaks. Phase Separated Hydrocarbon (PSH) was detected at each location (refer Section 5.1). These locations were at Toolachee (1) and Moomba Plant (3)


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Objective 2 cont: Minimise disturbance and avoid contamination to soil

Waste Disposal (domestic, sewage and sludges) All domestic wastes are

disposed of in accordance with EPA licensing requirements.

No evidence of rubbish or litter on ROW or at campsites / facilities.

No spills or leaks from sludge treatment process and sludge pits.

No increase in contamination at LTUs designated treatment area. Refer to assessment criteria for Objective 11.

Waste Disposal (domestic, sewage and sludges) Site activities to be audited against EPA licence for Waste Depot on a

minimum two years schedule. EHS04 Waste Management is adhered to. Audit against EHS04 Waste Management – 4 yearly minimum. Covered bins are provided for the collection and storage of wastes. All loads of rubbish are covered during transport to the central waste facility. Disposal areas are not established in locations, which pose an unacceptable

hazard to stock or wildlife. Sewage treatment facilities to be operated in accordance with design

criteria. Refer to Objective 11.Refer to Objective 11.

Domestic wastes are disposed of in accordance with EPA License Requirements. Audits identified good performance. Waste bins and containers are covered during transport. New landfill cell completed and approved by EPA Landfill cells are located only at Authorised facilities and are fenced to exclude stock and wildlife. There were no incidents at installed sewage disposal facilities.

Objective 3: Avoid the introduction or spread of pest plants and animals and implement control measures as necessary.

No weeds or feral

animals are introduced to, or spread in, operational areas as a consequence of activities.

Weed management plans are implemented where priority weed species are identified.

Where appropriate, weed and feral animal management strategy is in place

(avoidance and control strategies). Vehicle and equipment wash downs to be initiated in accordance with the

management strategy.

Weed and feral animal strategies are in place. There is no evidence of the introduction of weeds or feral animals. Vehicles and rig equipment is washed in accordance with the management strategy.


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Assessment Criteria

Guide to How Objectives Can Be Achieved Performance 2011 Report Period

Objective 4: Minimise disturbance to drainage patterns and avoid contamination of surface waters and shallow ground water resources.

Construction Activities (e.g. pipelines and roads) 0, +1 or +2 GAS criteria are

attained for goals related to this objective as listed in Appendix 1 and 2.

Construction activities (e.g. access tracks or pipelines) are located and constructed to maintain pre-existing water flows (i.e. channel contours are maintained on floodplains and at creek crossings).

No water (surface or groundwater) contamination as a result of construction activities.

Produced Formation Water (PFW) Refer to assessment criteria

for Objective 2. No unlicensed discharge of

water to a creek, river or lake.

PFW Waterflood No significant change in

surface or groundwater contamination as a result of waterflood activities.

Construction Activities (e.g. pipelines and roads) • Constructed activities undertaken are designed and managed

to avoid diversion of water flows. • Sensitive land systems (e.g. wetlands) avoided wherever

possible. Where activities are undertaken in or near these areas, appropriate review, assessment and mitigation measures are in place to ensure that surface water flows are maintained and contamination of surface water and groundwater is avoided.

Produced Formation Water (PFW) Refer to Objective 2. Water disposal ponds are located away from areas which are

inundated during floods where possible (preferably above the 100-year flood level).

Interceptor pits are not located in areas prone to inundation by flooding.

PFW Waterflood Pumps and associated equipment installed within containment

device with an adequately sized containment sump (e.g. at least 9m3).

Refer to Objective 2.

Drainage channels and patterns are maintained or restored to minimise impeding or changing natural drainage patterns associated with well leases, access tracks and roads and at creek crossings.

Work programs are modified to avoid periods of flooding and other seasonal influences and variations.


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Objective 4 cont Minimise disturbance to drainage patterns and avoid contamination of surface waters and shallow ground water resources.

Fuel and Chemical Storage, Handling and Transportation Soils remediated to a level

as determined by the SHI Decision Framework. Also refer to Objective 12.

No water (surface or groundwater) contamination as a result of these activities.

Cooper Creek Water Extraction No significant change in flow or

contamination as a result of extraction activities.

Fuel and Chemical Storage, Handling and Transportation All fuel, oil and chemicals are stored, handled and transported

in accordance with appropriate standards e.g. Australian Standard AS 1940, Australian Dangerous Goods (ADG) Code, EPA guideline 080/07 Bunding and Spill Management.

Fuel and chemical storage, handling and transport procedures are reviewed and monitored in an audit process.

Records of spill events and corrective actions are maintained in accordance with company procedures.

Spills or leaks are immediately reported and clean up actions initiated.

Logged incidents are reviewed annually to determine areas that may require corrective action to reduce spill volumes in subsequent years (and drive continual improvement).

Implementation of the SHI Decision Making Framework approved in January 2010.

Cooper Creek Water Extraction Approval to conduct surfacewater extraction from Cooper Creek is subject to the following conditions: An approvals request for any proposed extraction is raised

internally. This request will include estimated total volume required.

The above request must demonstrate that PFW and Borewater of an acceptable quality cannot be sourced within an economically viable haulage distance (maximum 2 hour return journey).

Any approved extraction occurs where water flow at Callamurra is >= 2.15m (>= 0.1m flow at Innamincka Causeway) and rising, and never at permanent water refuges (e.g Callamurra). Maps of approved surfacewater extraction points at Innamincka, Kudrieke and Mitchie Crossings are included in Appendix 2 of the EIR Addendum (Santos, 2010).

Cumulative extraction volume to be capped at 15 ML per year. Cumulative extraction volumes to be recorded in monitoring

database and included in annual PIRSA reporting. Non-conformance with the above is a reportable incident - see

Section 3 “Reporting” for incident definitions.

Records of spills are maintained Spills are reported in accordance with legislative and company requirements. Incident registers are reviewed to determine areas requiring improvement and to ensure ongoing improvement. Santos took no water from the Cooper Creek under this allocation. Due to flooding and access issues, unable to cross Cooper Ck at Innamincka to access other water source, approval was given to Beach Energy to take water per this for the drilling activity at Holdfast 1. Water was only taken in compliance with conditions in SEO. During Jan – Feb 2012 1.47 ML was taken, the total for 2011.


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Objective 4 cont Waste Disposal (domestic, sewage and sludges) Refer to assessment criteria

for Waste Disposal for Objective 2.

Refer to assessment criteria for Objective 11.

Oil/Condensate Spills (Pipeline/Road Transport) No spills/leaks outside of

areas designed to contain them.



Waste Disposal (domestic, sewage and sludges) Site activities to be audited against EPA licence for waste depot

on a minimum of every two years. Audit against EHS04 Waste Management – 4 yearly minimum. Covered bins are provided for the collection and storage of

wastes. All loads of rubbish are covered during transport to the central

waste facility. Pits are not established in locations which pose an

unacceptable hazard to stock or wildlife. Sewage treatment facilities to be operated in accordance with

design criteria. Oil/Condensate Spills (Pipeline/Road Transport) Pipelines are compliant with AS2885 pipeline standards. Pipeline Management System is reviewed annually. Pipelines are inspected and maintained in accordance with

Pipeline Integrity Management System. Spills or leaks are immediately reported and clean up actions

initiated. Records of spill events and corrective actions are maintained in

accordance with company procedures. Refer to Section 3 “Reporting” for clarification of incident

reporting requirements Spill Response / Contingency Planning Results of emergency response procedures, carried out in

accord with Regulation 31, show that the oil spill contingency plan in place in the event of a spill is adequate and any necessary remedial action needed to the plan is undertaken promptly.


Spill response equipment is audited annually. Annual spill response training exercise is undertaken.

Soil removed to land farm in some instances to eliminate contamination. No spill is likely to have impacted ground water.

Emergency response procedures for spill response are in place and regularly exercised. Learnings from exercises and actual events are included in Plans. Oil Spill Plans are up-to-date and regularly drilled. Spill response equipment and procedures are regularly audited. Regular drills are conducted.


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Objective 5: Avoid disturbance to sites of cultural and heritage significance.

Proposed well sites and

access tracks have been surveyed and any sites of Aboriginal and non-Aboriginal heritage identified.

Any identified cultural and heritage sites have been avoided.

Consultation with stakeholders (i.e. government agencies,

landholders etc) in relation to the possible existence of heritage sites, as necessary.

Heritage report forms completed for any sites or artefacts identified, and report forms forwarded to the Aboriginal Heritage Branch, Aboriginal Affairs and Reconciliation Division (AARD).

Survey records are kept and are available for auditing. Areas requiring remediation which lie outside previously

surveyed sites should be surveyed in accordance with company heritage clearance procedures.

A procedure is in place for the appropriate response to any sites discovered during drilling activities.

Note: Where a negotiated agreement or determination for heritage clearance is in place, compliance with the negotiated agreement or determination takes precedence over the above criteria.

Construction sites are inspected for cultural heritage sites. Identified sites are avoided. Significant sites are fenced. Identified sites are avoided.

Objective 6 Minimise loss of aquifer pressure and avoid aquifer contamination.

There is no uncontrolled

flow to the surface (i.e. no free flowing bores).

Produced Formation Water (PFW) Waterflood Injection Wells

No significant change in water quality from the injection aquifer

The volume/flow of water used by the Moomba Plant is

continuously monitored to ensure appropriate management. Water usage is monitored, reviewed and management

strategies implemented to minimise wastage. Review water licensing requirements and allocation plans. Produced Formation Water (PFW) Waterflood Injection Wells Aquifer water quality monitored where appropriate through

testing carried out during Waterflood activities.

There were no well bore failures reported


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Assessment Criteria


Objective 7: Minimise disturbance to native vegetation and native fauna.

Construction Activities Any sites of rare,

vulnerable and endangered flora and fauna have been identified, flagged and subsequently avoided.

No removal of trees / vegetation of priority 1, 2 or 3 in Field Guide1 in areas where removal could have been avoided.

No removal of trees at campsites.

No evidence of tree removal where trimming appropriate.

The type and density of vegetation on the rehabilitated ROW is consistent with the surrounding landscape, but less mature. Note: assessment will take into account that regrowth is a time and rainfall dependent process.

0, +1 or +2 GAS criteria are attained for goals related to this objective as listed in Appendix 1 and 2.

Construction Activities Proposed construction areas have been assessed for rare,

vulnerable and endangered flora and fauna species before the commencement of construction.

Consider alternate routes during planning phase to minimise environmental impacts.


Assessment records are kept and are available for auditing. Optimised ROW widths are identified and implemented. Trees are trimmed rather than cleared where possible. Root stock is not removed beyond 3m of trenchline and ROW is

either only lightly graded or not graded. Where vegetation is removed, it is respread over the full width of the ROW (excluding the access track).

Study undertaken to determine habitats for rare, vulnerable and endangered species. Areas identified are avoided. Vegetation impacts are minimised during well lease access and construction by scouting surveys prior to the entry of construction machinery. Wherever possible, significant vegetation is avoided.

1 Field Guide refers to the Field Guide to the Common Plants of the Cooper Basin – South Australia and Queensland (Wiltshire and Schmidt 2003)


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Assessment Criteria


Objective 7 Cont Borrow Pits 0, +1 or +2 GAS criteria

for goals related to this objective, as listed in Appendix 1 are attained during site selection and construction.

Fuel and Chemical Storage and Management Refer to assessment

criteria for objectives 2 and 4.

Waste Management Refer to assessment

criteria for Objective 2, 4 and 11.

Borrow Pits Pits are not established in locations which pose an unacceptable

hazard to stock or wildlife (i.e. not within 50m of any roads or access tracks, well leases or other plant and equipment).


Borrow pits are restored as soon as practicable after material extraction is complete to a standard consistent with the surrounding land use.

Borrow pits are restored to minimise water holding capacity, where agreements are not in place with stakeholders

In recognised conservation reserves (i.e. Innamincka Regional Reserve) excavations are left in a state as agreed with the responsible statutory body.

Fuel and Chemical Storage and Management Refer to Objectives 2 & 4.

Waste Management Covered bins are provided for the collection and storage of

putrescible wastes. All loads of rubbish are covered during transport to the central

waste facility. Pits are not established in locations which pose an unacceptable

hazard to stock or wildlife. Sewage treatment facilities to be operated in accordance with

design criteria. PFW pits are fenced as appropriate to minimise wildlife access.

Borrow pit site selection provides for the avoidance of vegetation impacts. Borrow pits are restored on an ongoing basis to allow natural vegetation regrowth to recommence. Where necessary, borrow pits are reopened to minimise vegetation impacts.


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Assessment Criteria


Objective 7 Cont Native Vegetation Act SEB Significant Environmental

Benefit (SEB) for native vegetation clearance approved by PIRSA (where delegated authority applies) or Native Vegetation Council (NVC).

Significant environmental benefit obligation is ultimately satisfied / implemented.

Fauna Management Native fauna

casualties associated with construction activities restricted to as low as reasonably practical (ALARP).

Native Vegetation Act SEB Work (or payment to Native Vegetation Fund) undertaken to

achieve an SEB for native vegetation clearance. SEB requirement either:

- determined using the Guidelines (DWLBC 2005) or - negotiated with PIRSA or the Native Vegetation Council

where SEB calculation differs from the standard methodology in the Guidelines.

Fauna Management No domestic pets allowed at camps or worksites. Feeding of wildlife (e.g. dingoes) is not permitted. Where possible, provision of fauna exit ramps every 500m in

open trenches, with other mechanisms for fauna exit (branches, mesh etc.) at more regular intervals in between.

Inspection of trenches and removal of trapped fauna, where appropriate.

Minimise length of time trench is open where practicable.


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Assessment Criteria Guide to Objectives Achievement Performance 2011 Report Period

Objective 8: Minimise air pollution and greenhouse gas emissions.

Gathering Systems/Satellite Facilities/Moomba Plant Compliance with EPA

requirements.

Gathering Systems/Satellite Facilities/Moomba Plant Conduct production operations in accordance with

appropriate industry accepted standards. Continually review and improve operations. Appropriate Emergency Response Procedures are in place

in case of a gas leak.

Dark smoke emissions are monitored and reported to the SA EPA. Improvement activities associated with the Moomba Flare continued. “Sun Pumper”, a solar power chemical pumps to inject the surfactant for the micro strings have been installed, this replaces the gas venting typically caused by chemical pneumatic driven pumps. Emergency response procedures are maintained. Gas well post fracture stimulation activities remained largely unchanged with dry gas wells typically only flowed 4 to 5 days to atmosphere (flaring where possible) to clean up frac fluids prior to the wells being shut in and connected. Liquids rich gas wells were flowed for similar durations, but were flowed through separators to capture the liquids with the gas going to flare.

Objective 9: Maintain and enhance partnerships with the Cooper Basin community.

No reasonable stakeholder

complaints left unresolved.

Relevant affected parties are notified and consulted on

proposed activities. Forward development plans are presented to the local

community. Local community projects and events are sponsored and

supported where appropriate. Industry membership of appropriate regional land

management committees and boards

Relevant parties are notified and consulted on proposed activities. There were no complaints, concerns or issues left unresolved. Local community events and activities are actively supported. Membership and active participation is made to regional management committees and Boards.


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Objective 10: Avoid or minimise disturbance to stakeholders and/or associated infrastructure

No reasonable stakeholder

complaints left unresolved. Cooper Creek Water Extraction No impacts on local

stakeholders from the extraction of water from the creek system.

Refer to Objective 4.

Induction for all employees and contractors covers pastoral,

conservation, tourism, legislation and infrastructure issues. Relevant stakeholders are notified prior to survey and

construction of well sites, camp sites and access tracks and undertaking of operations (pursuant to the Regulations). Borrow pits left open (unrestored) if requested by stakeholder and upon receipt of letter of transfer of responsibility to stakeholder.

Gates or cattle grids are installed to a standard, consistent with pastoral infrastructure instead of fences where crossings are required for access.

All gates left in the condition in which they were found (i.e. open/closed).

Fences repaired to ‘as before’ standard following pipeline construction.

Potential sources of contamination (e.g. formation water ponds) are fenced as appropriate to prevent stock access.

Written evidence that stakeholder is satisfied with water disposal arrangements.

System is in place for logging stakeholder complaints to ensure that issues are addressed as appropriate.

Requirements of the Cattle Care and Organic Beef accreditation programs are complied with.

In recognised conservation reserves (i.e. Innamincka Regional Reserve) excavations are left in a state as agreed

Cooper Creek Water Extraction Refer to Objective 4.

The importance of developing and maintaining good relationships with landholders is stressed to all employees and contractors. Relevant stakeholders are notified of and consulted about projects and are provided with information, maps etc. No Borrow pits were formally transferred to landholders. Grids, fences, gates installed are to a standard acceptable to the landholder. All gates are left “as found”. In response to concerns regarding potential for contamination of cattle an extensive fencing of facilities program was completed in 2005 and continues to be installed and repaired as required Landholder complaints and requests are logged to ensure closeout. There were no complaints lodged. Cattle management systems (cattle care) are recognised and complied with.


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Objective 11: Optimise (in order of most to least preferable) waste avoidance, reduction, reuse, recycling, treatment and disposal

Domestic wastes are disposed

of in accordance with EPA licensing requirements.

Wastewater (sewage and grey water) disposed of in accordance with the Public and Environmental Health (Waste Control) Regulations 1995 or to the Department of Health’s satisfaction.

No spills or leaks from sludge treatment process and sludge pits.

No increase in contamination at LTUs designated treatment area

Chemicals and oil are purchased in bulk. ‘Bulki bins’ or

other storage tanks are in place for large volume items. Fencing around waste disposal facility is regularly inspected

and maintained. Waste streams are segregated on site to maximise

opportunities for waste recovery, reuse and recycling. Evidence/records are maintained showing that recyclable

material has been returned to Moomba Waste Management Depot.

Production of waste is minimised by specifying reusable, biodegradable or recyclable materials in procurement, where practical.

Waste audit conducted at 5 year minimum interval. Waste water (sewage) disposal is where possible in

accordance with the Public and Environmental Health (Waste Control) Regulations 1995 (which require that the waste water disposal system must either comply with the Standard for the Construction, Installation and Operation of Septic Tank Systems in SA or be operated to the satisfaction of the Department of Health) and the Environment Protection (Water Quality) Policy 2003.

Evidence/records maintained to show that appropriately designed sewage facilities have been constructed.

Chemicals, cement & inhibitors are purchased in bulk containers.

Waste material is disposed of at EPA Approved facilities.


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Objective 12: Remediate and rehabilitate operational areas to agreed standards.

Contaminated Site Remediation Contaminated sites are

remediated to a level as determined by the approved SHI Decision Framework.

Construction Site and Access Track Restoration Refer to assessment criteria for

Objectives 2, 4, 7 and 11. 0, +1 or +2 GAS criteria are

attained for ‘minimise the visual impact’ and ‘revegetation of indigenous species’ as listed in Appendix 4.

Borrow Pit Restoration The attainment of 0, +1 or +2

GAS criteria as in Appendix 1. Production Facility Abandonment Surface structures are

removed and the ground surface re-contoured to approximate pre-existing contours unless alternative agreement is reached with the regulator and stakeholders.

0, +1 or +2 GAS criteria are attained for ‘minimise the visual impact’ and ‘revegetation of indigenous species’ as listed in Appendix 4, unless alternative agreement is reached with the regulator and stakeholders.

Refer to criteria for contaminated site remediation under this objective (above).

Refer to the assessment criteria for Objective 11.

Rehabilitation/abandonment plans for regulated activities will

be developed in consultation with relevant stakeholders. Construction Site and Access Track Restoration Compacted soil areas have been ripped (except on gibber and tablelands) and soil profile and contours are reinstated following completion of operations. Production Facility Abandonment The following steps will typically be undertaken unless otherwise agreed with the regulator and stakeholders: hydrocarbon and contaminants will be reduced to an

acceptable level in buried structures (e.g. pipelines, tanks, pits) as determined by the approved SHI Decision Framework.

hazardous materials will be stabilised or removed including ground decontamination.

hazardous material dumps will be clearly marked and a monitoring plan developed and implemented.

surface structures will be removed and re-used / recycled where appropriate

waste will be removed and recycled where appropriate (refer to Objective 11).

foundations will be levelled and covered (the standard to which they will be restored will be defined as a result of stakeholder consultations).

disturbed areas will be re-contoured to approximate pre-existing contours, natural drainage restored and compaction relieved (e.g. by scarification or ripping where appropriate) to promote rainwater infiltration and enhance seed capture and germination.

contour banks and energy dissipating structures will be constructed where necessary to protect disturbed areas from erosion prior to stabilisation

No stakeholder complaints are unresolved. No contaminated sites Access tracks are restored in accordance with restoration guidelines. No Activity


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Objective 12 Cont: Pipeline Abandonment Attainment of the following (unless otherwise agreed with stakeholders and approved by the regulatory authority): No evidence of waste,

redundant equipment / infrastructure or signs and markers on abandoned pipelines.

Refer to criteria for contaminated site remediation under this objective (above).

Refer to the assessment criteria for Objective 11.

Pipeline Abandonment The following steps will typically be undertaken unless otherwise agreed with the regulator and stakeholders: all aboveground pipes and supports will be assessed for the

condition of the pipe for either salvage or for dismantling and re-use.

all underground pipe work will be cut-off (at a minimum depth of 750mm below the natural surface or at pipeline depth, removed and blinded below the surface.

all aboveground signs and markers will be removed. all pipeline protection systems will be removed to allow the

pipeline to degrade in-situ. monitoring and auditing of abandoned pipelines will be

undertaken. all pipelines which are partially or wholly left in-situ will be

accurately mapped and recorded. Records will be prepared and submitted to the appropriate authority.

No Activity

Objective 13: Minimise as far as reasonably practicable interruptions to natural gas supply.

No interruptions to natural gas supply that cause significant social disruption.

Adequate contingencies are in place which seek to address a prudent level of security of supply in the case of short and unforseen interruption events (e.g. adequate gas storage).

Pipelines are designed, operated and maintained in accordance with AS 2885.

Plant and equipment are designed, operated and maintained in accordance with appropriate industry accepted standards.

Emergency Response Plan (ERP) and associated procedures are in place and exercised.

Results and recommendations of plant and facility hazard reviews, including the five (5) yearly Fitness for Purpose assessment, are appropriately addressed.

Significant operations-specific hazards and risks are summarised in the Significant Hazard Risk Register (SHRR).

There were no gas supply reduction events from the Moomba Plant during 2011.


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14 REPORTS ISSUED DURING THE 2011 LICENCE YEAR The following reports were generated for Santos purposes or forwarded to DMITRE or others in 2011.

• Significant Environmental Benefits Summary July 2010 to June 2011• EHSMS Assessment results 2010• Tantanna Flowline failure• Sludge Pit 2 contamination Comprehensive Report• HAZOP Report Moomba Sludge Oil Treatment Plant• Moomba Crude Return Line Comprehensive Report• Toolachee Burn Pit Report• Moomba LP Flare zone grass fire• Sepco Discharge line leak• Moomba Plant FSA Report• Walkers Crossing and Fly Lake Road EA Report

15. STATEMENT OF ACTUAL AND PROPOSED EXPENDITURE2011/2012

Confidential


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16. GLOSSARY OF TERMS AEGR Asset Engineering Governance Review AAL Associated Activity Licence AIMS Asset Integrity Management System ALARP As Low As Reasonably Practicable APPEA Australian Petroleum Production and Exploration Association BBLS Barrels CP Cathodic Protection DA Direct Assessment DCVG Direct Current Voltage Gradient DISCEX Discussion Exercise DPCU Dew Point Control Unit DFW Department for Water (previously DWLBC) DMITRE Department for Manufacturing, Innovation, Trade, Resources and Energy (previously PIRSA) EALT Eastern Australia Leadership Team EHS Environment, Health and Safety EHSMS Environment, Health and Safety Management System EIR Environmental Impact report EIS Environmental Impact statement EPA Environment Protection Authority EPIRB Emergency Position Indicating Radio Beacon EOC Emergency Operations Centre EMP Environmental Monitoring Point ERF Environmental Report Forms ERP Emergency Response Plan ESP Electric Submersible Pump EUE External Upset Tubing Connection FAIR Fixed Asset Integrity Review FSA Formal Safety Assessment GAS Goal Attainment Scaling GLNG Gladstone Liquefied Natural Gas GRE Glass Reinforced Epoxy HAZOP Hazard and Operability ILI In-Line Inspection IMP Integrity Management Plan KPI Key Performance Indicator Kbbls Kilo barrels (1,000 barrels) Kt Kilo tonne (1,000 tonnes) LRP Liquids Recovery Plant LTU Land Treatment Unit MHF Major Hazard Facility MIC Microbiological Induced Corrosion MOC Management of Change mL mega litre (1,000,000 litres) mm BBLS Million barrels OPREX Operational Exercise PAMS Pipeline Asset Management System PEL Petroleum Exploration License PHS Phase Separated Hydrocarbon PJ Peta-joule (a unit of heat) PL Pipeline Licence PFW Produced Formation Water PCP Progressive Cavity Pump PPL Petroleum Production License PPE Personal Protective Equipment PSM Process Safety Management RFDS Royal Flying Doctor Service ROW Right of Way (for pipelines) SACB South Australian Cooper Basin SACBJV South Australian Cooper Basin Joint Venture SEO Statement of Environmental Objectives SHRR Significant Hazard Risk Register SHI Soil Health Index SIMP Santos Incident Management Plan SOP Standard Operating Procedure SWSA Safe Work SA TEWT Tactical Exercise without Troops VSP Vertical Seismic Profile WOPRA Whole of Plant Risk Assessment


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17. APPENDICES Appendix 1 DMITRE Meetings - 2011 Appendix 2 Environmental Incidents Summary - 2011

Appendix 3 Emergency Drills - 2011

Appendix 4 Well Drilling Lease Scout, Construct, Backfill and Restoration - 2011

Appendix 5 Well Workover Summary - 2011

Appendix 6 Well Summary – Producing and Suspended Wells

Appendix 7 Flowlines Constructed – 2011

Appendix 8 Pipeline Inspection, Testing and Repair - 2011

Appendix 9 Details of Seismic Activity Appendix 10a 2011 Production Facility Projects

Appendix 10b 2012 Production Facility Projects – Proposed Appendix 11 Wells Drilled - 2011 Appendix 12 2011 Reports, including Geological and Reserves Reports


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Appendix 1 DMITRE Meetings – 2011 Over and above the significant reporting requirement to DMITRE associated with the conduct of operations in the Cooper Basin under the Petroleum and Geothermal Energy Act (2000) and Petroleum and Geothermal Energy Regulations (2000), a series of regular meeting are held with DMITRE at quarterly intervals, to review performance. These meetings included the following: Quarterly Santos / DMITRE Performance Meeting

4th Quarter, 2010 - 18 February 2011 1st Quarter, 2011 - 6 May 2011 2nd Quarter, 2011 - 5 August 2011 3rd Quarter, 2011 - 4 November 2011 2011 Development Plan & Operational Review - 19 May 2011


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Appendix 2 Environmental Incidents Summary - 2011 Total Incidents

82 % of Total Incidents Comments

Location Plant Field -Satellite/Facility -Wells -Pipelines -Other

13

37 39

6 5

Spills Oil Condensate PFW Chemical Lube Oil Hydraulic Oil Diesel Saline Water

44 10 13 10 13 1 4 5

Volume >100 m3 21 – 99 m3 6 - 20 1 - 5 500lt – 1m3 100lt – 499lt 50lt – 99lt 10lt – 49lt 5lt – 10lt <5lt

2

2 7 20 4 14 5 20 9 17

Seepage water from pond bund wall (1) Flowback pit wall failure (1) Water overflow due rain (1)

Root Cause – DMITRE Design Monitoring & Maintenance Work Practices Communication Supervision Risk Management Induction/Training

12 71 17 - - - -

Consequence Moderate Minor Negligible

- 16 84

Risk Low Moderate Substantial

98 2 -


71

REPORTABLE to DMITRE 2011 – Includes NOTIFIABLE WORK RELATED INJURY OR DANGEROUS OCCURRENCE

Total Incidents 28

% of Total Incidents Comments

Report Type Injury Dangerous Occurrence Reportable to DMITRE

- 25 75

Location Plant Field -Satellite/Facility -Wells -Pipelines -Other Camp

46

25 14 14 - -

Root Cause – DMITRE Design Monitoring & Maintenance Work Practices Communication Supervision Risk Management Induction/Training Other

7 82 - -

11 - - -


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Appendix 3 Emergency Drills - 2011 Date Drill Type Description of Scenarios Comment Actions

01/01/11 OPREX Alternate EOC

This exercise was an operational exercise (OPREX), designed to practice established emergency response procedures and individuals skills in relation to relocation of the Emergency Management Team (EMT) from the primary Emergency Operations Centre (EOC) to the designated Alternate EOC and to provide a skills maintenance training opportunity for muster point controllers (MPCs).

The exercise was well attended and all associated learnings and actions were captured in the final emergency response exercise report and completed in a timely manner.

Ensure the Admin Gas Detector is in calibration and that a replacement detector is available if it is being serviced. Investigate and ensure all required pagers are on call-out lists and operating correctly. Include a role description and list of responsibilities for the Cooper Basin Field Services Team leaders in the Moomba EP during next update. Include location of spare fuel for generator, radios and spare batteries on alt’ EOC layout drawing in the next Moomba EP update. Source 2 x emergency torches for alt’ EOC. Programme ES1 (ch) into main alt’ EOC radio.

15/03/11 DISCEX Fire, oil and acid spill in the Moomba central field’s work shop.

The DISCEX was completed to a high standard. All participants gained a good idea of what was required if they were confronted with this type of emergency.

Improved accessibility to onsite MSDS’s.

02/04/11 EOC TEWT EOC Exercise – Aircraft Incident.

This exercise was a training exercise without troops (TEWT); designed to practice established emergency response procedures and individual roles and responsibilities within the Emergency Operations Centre (EOC).

The aim of the exercise was to practice and refine emergency management procedures in the event of an incident at the Moomba Aerodrome. This TEWT also provides an opportunity for persons holding key roles within the Moomba EOC to hone their skills and become more proficient within their roles and responsibilities.

Improved tracking of Advanced Fire Fighters and First Aiders to aid in contacting these people during an emergency.

RFDS need to improve their Standard Operating Procedures in the Cooper Basin so roles for Nurses are clearly defined for all foreseeable incidents, these SOP’s need to be developed in conjunction with Santos Emergency Response Plans.

Development of a training packages for the EOC personnel that concentrates on their specific role within the EOC.

Review and update of the EOC personnel’s resource packs so they can to be expanded to include Aerodrome ERP etc.


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Date Drill Type Description of Scenarios Comment Actions

14/04/11 OPREX Limestone Creek Major Operational exercise. Oil Tank Fire.

The aim of this exercise is to practice and refine emergency management arrangements in the event of a fire emergency occurring in the Limestone Creek satellite and to provide a skills maintenance training opportunity for Production Department personnel

Objectives -

To practise and assess initial emergency response arrangements for the Limestone Creek site.

To test the effectiveness of evacuation procedures of the Limestone Creek Satellite

To test the personnel accountability system at the Limestone Creek Satellite

To practice and assess the appropriate notifications and information transfer from the Limestone Creek site back to the Moomba Communications centre in the event of such an emergency taking place.

Provide a skills maintenance opportunity for Production Department personnel.

OBSERVAION- This exercise provided a realistic exercise for likely emergencies at the satellite. Both operators present were able to physically undertake roles that previously have only been conducted via DESKEX.

Whiteboard with entry and exit control/listing or other accountability system to be installed at plant entrance/muster point and entry/exit procedure developed for LSC satellite (suggest whiteboard with log in and log out.

Area Operators to be reminded/shown where and how to access the job lock register.


74


22/05/11 DISCEX Moomba Process Department The exercise was a discussion exercise designed to extract high levels of knowledge from more experienced personnel and inform new personnel of company policies, procedures, roles, responsibilities and equipment locations in the event of a process incident (generic) in the Moomba plant.

Update TRACESS basic instrument air operation to include fire pump operation.

Ensure dissemination of latest plant contingency plans to all appropriate stake holders.

Multiple OPREX Camp evacuation exercise were carried out on all shifts at Moomba Dullingari and Tirrawarra throughout the year.

These operational exercises also included practical components to provide an opportunity for occupational first aiders and advanced Firefighters to practice their skills and use of associated equipment.

New defensive Firefighting protective clothing purchased and put in place at each camp.

Extra radios purchased for camps.

Review and update of evacuation procedures.


75


21/06/11 OPREX Daralingie Major Operational Exercise. Injured worker requiring medivac.

The aim of this exercise is to practice and refine emergency management arrangements in the event of a Compressor Gas release causing foreign object in operator’s eyes occurring in the Daralingie satellite and to provide a skills maintenance training opportunity for Production Department personnel.

Objectives -

To practise and assess initial emergency response arrangements for the Daralingie site.

To test the effectiveness of First Aid at the Daralingie Satellite

To test the personnel accountability system at the Daralingie Satellite

To practice and assess the appropriate notifications and information transfer from the Daralingie site back to the Moomba Communications centre in the event of such an emergency taking place.

Provide a skills maintenance opportunity for Production Department personnel.

SITREPS from either Wok or Moomba Comms consisted of clear and precise information, and kept each other up to date on a regular basis. It was discussed if this happened for “real” operators close by would be ringing in on the telephone line to find out what has happened and if they could assist in some way. This could have detrimental effects on the communications between the Incident Controller (permit hut) and Moomba Comms with an engaged signal thus delaying any vital information being passed on. Moomba Comms would then put a message over the radio to inform people not to call by phone to the Daralingie Satellite to keep telephone lines free.


76


22/09/11 OPREX Moomba Plant Major Operational Exercise. Scenario - A flange on pipe work connected to the Inlet Trunkline Sample Point of the Sales Gas Meter Station has failed and has commenced leaking. The discharged product has ignited causing a serious fire around the Sales Gas Meter Station. Two workers that were in the immediate area at the time of the leak have sustaining serious burns and another is missing.

The aim of this exercise is to practise, develop and refine emergency management arrangements in the event of a process emergency occurring within the Moomba plant.

Objectives - To practise Incident management and resource coordination skills.

To practise and assess emergency response procedures.

To practise and assess the Moomba Contingency Pre-Plan for the Sales Gas Meter Station (Aug 2008).

Provide an opportunity for site engineers to actively investigate and identify relevant up-stream isolation options.

To measure the effectiveness of current procedures and resources in place to facilitate the identification and response of auxiliary fire fighters and first aiders in a timely manner.

To practice Fire and Rescue Techniques as an on-going skills maintenance programme for the Santos Emergency Services and Process personnel.

To practice emergency casualty treatment skills and transportation procedures.

To identify and take steps to eradicate any procedural and functional weakness.

Investigate the requirement for a Communications Plan to be included in the Moomba Emergency Response Plan.

Moomba Fire Hydrant System map to be included in EOC Map cache.

Investigate the inclusion of 2 X Advanced Fire Trained Production Operators to be sent to the fire station in a Moomba Plant Emergency into the Moomba Emergency Response Plan.

Investigate if Security manning/staffing levels meet the level of commitment required for roles as per the Moomba Emergency Response Plan.

Investigate Communications Controller specific training for Security Officers.

Review the Ambulance response plan as part of the Moomba Emergency Response Plan, possibly include First Aid trained person being immediately responded from closest manned muster point to Health Centre to drive ambulance

Investigate having an additional computer screen installed into the E.O.C proper linked to the weather computer located in the E.O.C Comms room.


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29/10/11 OPREX Moomba Environs – Bushfire Threat Exercise

Due to an unusually wet season and abnormally high growth of vegetation there is now a significant risk of bushfire throughout the Cooper Basin. This exercise was conducted as an operational exercise (OPREX) and it was designed to practice defensive fire fighting techniques in the Moomba Operations Areas and test EHS-ES-ERP-31(B) and the Moomba Emergency Plan Bushfire Supplement and its effectiveness. The mission of this exercise was also to practice and refine emergency management arrangements in the event of a bush fire occurring and impacting Moomba Operations Boundary and to ensure all personnel whom may be involved in such an incident are adequately trained and resourced to affect a defensive asset protection.

Develop a list of personnel whom have training from a recognised fire service, so that they may be utilised in some manner if the need arises.

Develop and deliver training package to those personnel that are identified as needing training.

Generic login for mapping computer. Limit software on computer to speed operation of computer. Consider just basic mapping program and not much else.

18/12/11 TEWT Alternate EOC activation. This exercise will be an operational exercise (OPREX), designed to practice established emergency response procedures and individuals skills in relation to relocation of the Emergency Management Team (EMT) from the primary Emergency Operations Centre (EOC) to the designated Alternate EOC.

Review list of muster point controllers; ensure hand over of pagers for this role is achieved in all cases.

Provide list of muster point names for alongside the EOC intercoms.

Provide note on how intercom in EOC operates.


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Multiple Other Muster Point Controller Training. The muster point training delivered on area of responsibility i.e. Airport, Training Room, Operations Camp or Main Gate Muster Points.

Muster Point Controller Training is delivered on a regular basis to capture new employees and new position holders with Muster Point Controller responsibilities. In addition Muster point controllers are now included in exercises to enable practise of their roles.

A copy of training records kept in the Moomba EOC Muster Point Controller training record folder.

Multiple Other Individual EOC Roles and Responsibilities Training.

EOC training is delivered on a regular basis on an as needs basis to cover new employees with EOC position responsibilities, Also covered off by the high number of EOC exercises 2010

A list of EOC position holders is kept in the EOC

A copy of training records kept in the Moomba EOC and recorded on AIMS

Multiple (weekly)

Drill Emergency Services skills maintenance drills

Moomba ESO's conducted weekly skills maintenance drills including, but not limited to, the following disciplines - Rope Rescue ,Confined Space Rescue, Road Crash Rescue, CABA search and rescue, Live Oil & Gas Fire Fighting, HAZMAT Response, etc.

Develop 2012 schedule for weekly ESO skills maintenance training sessions.


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Appendix 4 Well Drilling Lease Scout, Construct, Backfill and Restoration Activity – 2011

# Well Name Well No.

Scout Date

Construct Commence Well Status

Borrow Pits

Number Restored

Lease Restored

Photos Taken

Road Km

Road Restored

Lease Backfill

1 Andree 3 23/04/2005 7/05/2005 Gas 2 1 No No 0.3 No Yes 2 Moolion 4 1/11/2005 14/02/2006 Gas 1 0 no no 0.4 No No 3 Moorari 12 1/11/05 22/02/06 Gas 1 0 no no 0.5 No No 4 Moomba 176 20/07/2006 11/08/2006 Gas 4 0 no no 1 no no 5 Golah Sing 1 24/08/2006 16/01/2007 Oil 1 0 no no 0.4 no no 6 Wheels 1 24/08/2006 16/01/2007 Oil 1 0 no no 0.4 no no 7 Burke 9 25/08/2006 16/01/2007 Oil 1 0 no no 0.5 no no 8 Burke 10 25/08/2006 16/01/2007 Oil 2 0 no no 0.5 no no 9 Tirrawarra 73 12/10/2006 10/11/2006 Gas 2 0 no no 1.2 no no 10 Ragno 1 19/10/2006 3/07/2007 Oil 1 0 No No 2.3 No No 11 Alwyn 7 13/11/2006 26/01/2007 Oil 1 0 No No 0.8 No No 12 Seccante 1 19/10/2008 21/06/2007 Oil 3 0 No No 1.1 No No 13 Barina 8 9/01/2007 17/02/2007 Gas 4 0 no no 0.6 no no 14 Thurakinna 6 9/01/2007 21/03/2007 Gas 1 0 no no 0.9 no no 15 Jena 28 23/02/2007 5/05/2007 C&S 1 0 No No 0.45 No No 16 Jena 22 23/02/2007 5/05/2007 Oil 1 0 No No 0.9 No No 17 Big Lake 86 19/04/2007 14/07/2007 Oil 1 1 No No 0.15 No No 18 Calvin 1 30/04/2007 8/06/2007 Oil 1 0 No No 0.5 No No 19 Gambero 1 30/04/2007 6/06/2007 Oil 1 0 No No 0.3 No No 20 Granchio 1 30/04/2007 22/06/2007 Oil 1 0 No No 0.05 No No 21 McKinlay 5 30/04/2007 22/06/2007 Oil 1 0 No No 0.1 No No 22 McKinlay 6 30/04/2007 13/06/2007 Oil 1 0 No No 0.6 No No 23 Moomba 182 22/06/2007 10/09/2007 Oil 1 1 Yes Yes 0.2 No No 24 Coonatie 8 26/06/2007 8/07/2007 Gas 2 0 No No 1.25 No No 25 Coonatie 9 26/06/2007 6/08/2007 Gas 1 0 No No 1.3 No No 26 Merrimelia 59 17/07/2007 21/08/2007 Oil 1 0 No No 1 No No 27 Merrimelia 60 17/07/2007 21/08/2007 Oil 1 0 No No 0.3 No No 28 Merrimelia 61 17/07/2007 21/08/2007 Oil 1 0 No No 0.2 No No 29 Mudera 15 19/07/2007 23/01/2008 Gas 1 0 No No 0.5 No No 30 Mudera 14 19/07/2007 20/01/2008 Gas 1 0 No No 1.2 No No 31 Mudera 13 19/07/2007 4/01/2008 Not Drilled 1 0 No No 1.4 No No 32 Coonatie 10 23/07/2007 27/07/2007 Gas 1 0 No No 0.4 No No


80

Well Name Well No.

Scout Date


Borrow Pits

Number Restored

Lease Restored

Photos Taken

Road Km

Road Restored

Lease Backfill

33 Mudlalee 6 24/07/2007 21/01/2008 Not Drilled 1 0 No No 0.05 No No 34 Charo 2 31/07/2007 11/10/2007 Oil 1 1 No No 0.5 No No 35 Charo 3 31/07/2007 19/10/2007 Oil 3 3 No No 1.7 No No 36 Merrimelia 58 1/08/2007 19/09/2007 P&A 1 0 No No 0.4 No No 37 Ikarumba 1 14/09/2007 6/11/2007 P&A 1 0 Yes Yes 0.4 0.4 Restored 38 Tirrawarra 74 18/09/2007 3/01/2008 Gas 3 0 No No 3.2 No No 39 Tirrawarra 75 18/09/2007 3/01/2008 Gas 1 0 No No 0.8 No No 40 Jena 25 4/10/2007 27/10/2007 Oil 2 0 No No 1.5 No No 41 Coonatie 11 10/10/2007 17/11/2007 Not Drilled 1 0 No No 1.1 No Not drilled 42 Marabooka 13 11/10/2007 4/04/2008 Gas 3 0 No Yes 3.8 No Yes 43 Marabooka 14 11/10/2007 4/02/2008 Gas 2 0 No Yes 1 No Yes 44 Marabooka 15 11/10/2007 4/02/2008 Gas 1 0 No Yes 0.9 No Yes 45 Mudera 16 11/10/2007 28/01/2007 Not Drilled 1 0 No No 1.25 No Not drilled 46 Mudera North 1 11/10/2007 3/01/2008 SGC 1 0 No No 0.05 No No 47 Squalo 1 14/11/2007 28/01/2008 Oil 1 0 No No 0.8 No No 48 McKinlay 9 3/12/2007 13/02/2008 Oil 4 0 No No 1.8 No No 49 McKinlay 7 3/12/2007 11/02/2008 Oil 1 0 No No 0.3 No No 50 McKinlay 10 3/12/2007 11/02/2008 Not Drilled 1 0 No No 0.1 No Not drilled 51 Coonatie 12 10/12/2007 30/01/2008 Gas 1 0 No No 0.7 No No 52 Coonatie 13 10/12/2007 3/02/2008 Gas 1 0 No No 0.9 No No 53 Granchio 2 2/02/2008 10/03/2008 Oil 1 0 No No 0.2 No No 54 Narcoonowie 7 2/02/2008 17/03/2008 Oil 1 1 No No 0.2 No No 55 Big Lake 89 21/03/2008 4/07/2008 Gas 1 0 No No 1 No No 56 Big Lake 91 21/03/2008 4/07/2008 Gas 1 0 No No 1 No No 57 Big Lake 90 21/03/2008 4/07/2008 Gas 1 0 No No 1 No No 55 Mitchie 2 21/03/2008 20/04/2008 Gas 1 0 No No 1 No No 59 Deparanie 2 24/04/2008 15/05/2008 Oil 9 0 No No 1.6 No No 60 Granchio 3 30/04/2008 19/05/2008 Oil 1 0 No No 0.6 No No 61 Mudera 12 19/07/2008 12/01/2008 Gas 1 0 No No 0.9 No No 62 Tirrawarra 76 7/08/2008 10/10/2008 Gas 1 0 No Yes 0.5 No Yes 63 Tirrawarra 77 17/09/2008 8/12/2008 P&A 0 0 No No 1.4 No No 64 Moomba 183 14/10/2008 4/12/2008 P&A 3 1 Yes Yes 1.45 1.45 Yes 65 Muteroo 6 14/10/2008 8/11/2008 P&A 1 0 No No 0.45 No No


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Scout Date


Borrow Pits

Number Restored

Lease Restored

Photos Taken

Road Km

Road Restored

Lease Backfill

66 Spencer West 3 14/10/2008 8/11/2008 Oil 1 0 No No 0.45 No No 67 Spencer 13 17/10/2008 8/11/2008 Oil 2 0 No No 0 No No 68 Fly Lake 26 3/12/2008 3/01/2010 Oil 1 0 No Yes 0.8 Yes Yes 69 Fly Lake 27 3/12/2008 3/01/2010 Oil 5 0 No No 0.9 No Yes 70 Kanowana 7 16/12/2008 22/12/2008 Oil 1 0 No No 0.3 No No 71 Mudrangie S 1 16/12/2008 20/01/2010 Built 1 0 No No 1.2 No No 72 Nephrite Sth 5 12/01/2010 7/02/2010 Gas 2 0 No Yes 0.62 Yes Yes 73 Tindilpie 7 12/01/2010 22/02/2010 Gas 1 0 No Yes 0.94 Yes Yes 74 Nephrite 2 30/01/2010 3/03/2010 Gas 4 0 No Yes 3.52 Yes Yes 75 Cowralli 10 21/02/2010 9/03/2010 Gas 1 0 No Yes 0.92 Yes Yes 76 Cowralli 12 21/02/2010 9/03/2010 Gas 1 0 No Yes 0.65 Yes Yes 77 Cowralli 13 21/02/2010 16/03/2010 Gas 1 0 No Yes 0.95 Yes Yes 78 Cowralli 11 21/02/2010 24/04/2010 Gas 1 0 No Yes 1.05 Yes Yes 79 Tindilpie 8 27/02/2009 16/04/2009 Gas 1 0 No Yes 0.65 Yes Yes 80 Tindilpie 10 27/02/2009 27/03/2009 Gas 4 0 No Yes 3.75 Yes Yes 81 Tindilpie 9 27/02/2009 18/04/2009 Gas 1 0 No Yes 1.9 Yes Yes 82 Bobs Well 2 1/05/2009 26/05/2009 Gas 4 0 No No 1.18 No No 83 Daralingie 27 1/05/2009 18/06/2009 Gas 2 0 No No 0.5 No No 84 Dullingari 36 25/05/2009 27/09/2009 Gas 2 0 No No 0.32 No No 85 Dullingari 40 25/05/2009 22/09/2009 Gas 1 0 No No 0.32 No No 86 Charo 6 28/05/2009 6/07/2009 Oil 1 0 No No 1.85 No No 87 Charo 5 28/05/2009 4/07/2009 Oil 1 0 No No 0.38 No No 88 Charo 4 28/05/2009 23/06/2009 P&A 2 0 No No 1.65 No No 89 Charo 7 19/06/2009 9/07/2009 Oil 1 0 No No 0.49 No No 90 Narcoonowie 8 17/08/2009 23/10/2009 Oil 1 0 No No 0.25 No No 91 Narcoonowie 9 17/08/2009 20/10/2009 Oil 1 0 No No 0.55 No No 92 Narcoonowie 10 17/08/2009 26/10/2009 Oil 1 0 No No 0.62 No No 93 Burke 11 31/08/2009 3/10/2009 Gas 1 0 No No 0.5 No No 94 Mettika 6 31/08/2009 10/10/2009 Gas 1 0 No No 1 No No 95 Moomba 184 31/08/2009 16/12/10 Gas 1 0 No No 1 No No 96 Moomba 185 31/08/2009 28/02/11 Gas 1 0 No No 0.6 No No 97 Moomba 186 31/08/2009 16/03/11 Gas 1 0 No No 1 No No 98 Moomba 187 31/08/2009 16/12/10 Gas 1 0 No No 0.4 No No


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Scout Date


Borrow Pits

Number Restored

Lease Restored

Photos Taken

Road Km

Road Restored

Lease Backfill

99 Coonatie 14 18/09/2009 31/01/10 Gas 1 0 No No 0.4 No No 100 Coonatie 15 18/09/2009 27/01/10 Gas 1 0 No No 0.3 No No 101 Coonatie 16 18/09/2009 19/12/2009 Gas 2 0 No No 1 No No 102 Coonatie 17 18/09/2009 9/12/2009 Gas 1 0 No No 0.5 No No 103 Coonatie 18 18/09/2009 11/01/2010 Gas 2 0 No No 1.7 No No 104 Coonatie 19 18/09/2009 2/01/2010 Gas 1 0 No No 0.4 No No 105 Coonatie 20 18/09/2009 16/01/2010 Gas 1 0 No No 1.2 No No 106 Cooba Dev C 8/01/2010 Not Built Scouted 1 0 No No 0.36 No No 107 Kanowana D Rev 1 28/01/2010 Pegged 108 Kanowana C Rev 1 29/01/2010 Pegged 109 Tirrawarra 79 18/06/2010 6/10/2010 Gas 1 0 No No 0.52 No No 110 Tirrawarra 78 18/06/2010 13/10/2010 Gas 1 0 No No 1.33 No No 111 Tirrawarra 80 18/06/2010 13/10/2010 Gas 1 0 No No 0.39 No No 112 Strzelecki NE 1 23/06/2010 12/08/2010 Gas 2 0 No No 0.24 No No 113 Kidman Nth 3 2/11/2010 4/01/11 Gas 2 0 No No 1.5 No No 114 Moomba 189 17/01/11 12/08/11 Gas 2 0 No No 0.7 No No 115 Tindilpie 11 23/01/11 22/05/11 Gas 1 0 No No 1.5 No No 116 Hackett 2 26/01/11 30/04/11 2 0 No No 1.85 No No 117 Nephrite Sth 6 27/01/11 13/04/11 Gas 2 0 No No 1.4 No No 118 Tindilpie 12 29/01/11 22/05/11 Gas 4 0 No No 4 No No 119 Nephrite Sth 8 3/02/11 23/04/11 Gas 1 0 No No .045 No No 120 Dilchee 4 9/02/11 14/07/11 Gas 9 0 No No 0.2 No No 121 Moomba 190 25/03/11 23/08/11 Gas 1 0 No No 0.7 No No 122 Moomba 188 25/03/11 3/08/11 Gas 4 0 No No 0.7 No No 123 Nephrite Sth 9 8/04/11 29/05/11 Gas 1 0 No No 0.5 No No 124 Nephrite Sth 7 8/04/11 29/05/11 Gas 1 0 No No 0.5 No No 125 Andree 4 22/07/11 31/10/11 Built 2 0 No No 0.45 No No 126 Leleptian 4 22/07/11 18/10/11 Built 2 0 No No 1.2 No No 127 Moomba 191 11/10/11 8/11/11 Built 4 0 No No 0.35 No No 128 Merrimelia 62 5/11/11 5/12/11 Built 1 0 No No 1.25 No No 129 Tindilpie Pad 13-18 10/11/11 13/12/11 Built 1 0 No No 1.2 No No 130 Charo 8 13/11/11 28/12/11 Built 1 0 No No 0.55 No No 131 Charo 9 17/11/11 28/12/11 Built 0 0 No No 1.3 No No


83

132 Charo Dev R 18/11/11 Scouted 0 0 No No 0.3 No No 133 Charo 14 19/11/11 Scouted 0 0 No No 0.26 No No 134 Charo Pad 11-13 19/11/11 Scouted 0 0 No No 0.46 No No 135 Charo 15 6/12/11 Scouted 0 0 No No 0.28 No No 136 Charo 10 17/12/11 13/01/12 Scouted 1 0 No No 0.75 No No

PEL 114

1 Shazlick 1 30/01/2007 28/02/2007 Oil 5 0 no no 0.3 No No 2 Hoek 2 30/03/2007 5/05/2007 Oil 2 0 No No 1.3 No No 3 Hobbes 1 3/12/2007 10/04/2008 Oil 1 0 No No 0.6 No No 4 Hoek 3 4/04/2008 27/04/2008 Oil 1 0 No No 0.3 No No 5 Hobbes 2 30/11/2008 10/01/2010 Oil 1 0 No No 0.5 No No 6 Cartman 1 18/12/2008 16/02/2010 Oil 8 0 No No 1.3 No No 7 Kyle 1 19/12/2008 24/02/2010 P&A 4 0 Yes Yes 2.1 2.1 Yes 8 Wallace 1 1/09/11 22/09/11 Oil 3 0 No No 2.3 No No 9 Chimmichurri 1 1/09/11 1/10/11 Oil 3 0 No No 2.3 No No

10 Kakapo 1 2/07/11 6/10/11 Suspended 1 0 No No 1.75 No No

PPL 225

1 Stimpee 3 22/06/2007 28/06/2007 Oil 1 0 No No 0.05 No No 2 Stimpee 5 18/12/2008 29/01/2010 Built 1 0 No No 0.9 No No 3 Stimpee 4 22/12/2008 29/01/2010 Oil 1 0 No No 0.14 No No

PPL 226

1 Teringie 2 1/09/11 28/10/11 Oil 1 0 No No 1.5 No No


84

Appendix 5 Well Workover Summary

# WELL WELL

# START DATE

END DATE WORKOVER ACTIVITY

FRACTURE STIMULATION

1 DULLINGARI 36DW1 23/12/2010 24/01/2011 Gas Workover NO 2 ALWYN 6 01/01/2011 03/01/2011 Insert Pump Repair NO 3 ULANDI 10 04/01/2011 07/01/2011 BP Repair NO 4 COONATIE 18 08/01/2011 19/01/2011 Perforation NO 5 CARTMAN 1 08/01/2011 23/01/2011 Oil Workover NO 6 STIMPSON JAY 1 24/01/2011 24/01/2011 LRP repair NO 7 HOBBES 1 25/01/2011 29/01/2011 PCP Repair NO 8 MCKINLAY 6 29/01/2011 01/02/2011 PCP Repair NO 9 KERNA 1 26/01/2011 27/01/2011 Perforation NO 10 MAWSON 1 26/01/2011 12/02/2011 Integrity Repair NO 11 COONATIE 14 02/02/2011 03/02/2011 Perforation NO 12 NEPHRITE STH 1ST1 03/02/2011 05/02/2011 Perforation NO 13 JENA 11 04/02/2011 04/02/2011 BP Repair NO 14 BOONGALA 2 05/02/2011 14/02/2011 Perforation NO 15 BIALA 14 05/02/2011 18/02/2011 Oil Workover NO 16 MOOMBA NTH 1 15/02/2011 16/02/2011 Perforation NO 17 BIALA 10 19/02/2011 23/02/2011 Oil Workover NO 18 COONATIE 16 13/02/2011 19/02/2011 Gas Completion YES 19 PELICAN 9 24/02/2011 26/02/2011 Perforation NO 20 CARMINA 2 24/02/2011 01/03/2011 ESP Repair NO 21 COWRALLI 11 27/02/2011 27/02/2011 Perforation NO 22 MOOMBA 14 27/02/2011 07/03/2011 Integrity Repair NO 23 COONATIE 15 02/03/2011 02/03/2011 Perforation NO 24 GIDGEALPA 26 02/03/2011 07/03/2011 BP Repair NO 25 COWRALLI 11 05/03/2011 06/03/2011 Perforation NO 26 COWRALLI 10 16/03/2011 20/03/2011 Perforation NO 27 COWRALLI 12 21/03/2011 26/03/2011 Perforation NO 28 GIDGEALPA 27 22/03/2011 30/03/2011 BP Repair NO 29 BIG LAKE 78 26/03/2011 26/03/2011 Perforation NO 30 COWRALLI 13 27/03/2011 30/03/2011 Perforation NO 31 GIDGEALPA 29 29/03/2011 02/04/2011 BP Repair NO 32 COWRALLI 13 03/04/2011 04/04/2011 Perforation NO 33 TIRRAWARRA 29 03/04/2011 10/04/2011 Integrity Repair NO 34 MOOMBA 72 04/04/2011 09/04/2011 Perforation NO 35 MOOMBA 146 10/04/2011 12/04/2011 Perforation NO 36 MUDLALEE 6 11/04/2011 16/04/2011 ESP Repair NO 37 BURKE 7 14/04/2011 15/04/2011 Perforation NO 38 BARINA 4 16/04/2011 17/04/2011 Perforation NO 39 CROWSNEST 1 17/04/2011 17/04/2011 Perforation NO 40 COONATIE 19 18/04/2011 18/04/2011 Perforation NO 41 COONATIE 17 19/04/2011 20/04/2011 Perforation NO 42 STRZELECKI NE 1 22/04/2011 23/04/2011 Perforation NO 43 COONATIE 20 23/04/2011 23/04/2011 Perforation NO 44 COONATIE 18 28/04/2011 28/04/2011 Perforation NO 45 KEENA 1 28/04/2011 28/04/2011 Perforation NO 46 COONATIE 17 06/05/2011 06/05/2011 Perforation NO 47 COONATIE 17 09/05/2011 09/05/2011 Perforation NO 48 METTIKA 6 12/05/2011 12/05/2011 Perforation NO


85

Well Workover Summary

# WELL WELL

# START DATE



49 MOOMBA 146 13/05/2011 13/05/2011 Perforation NO 50 MOOMBA 95 14/05/2011 14/05/2011 Perforation NO 51 MOOMBA 35 15/05/2011 15/05/2011 Perforation NO 52 METTIKA 6 16/05/2011 17/05/2011 Perforation NO 53 MOOMBA 22 18/05/2011 18/05/2011 Perforation NO 54 COONATIE 16 19/05/2011 19/05/2011 Perforation NO 55 SWAN LAKE 3 20/05/2011 22/05/2011 Perforation NO 56 BIG LAKE 69 24/05/2011 30/05/2011 Perforation NO 57 TIRRAWARRA 78 29/05/2011 29/05/2011 Perforation NO 58 MOOMBA 12 05/06/2011 07/06/2011 Perforation NO 59 GIDGEALPA 60 13/06/2011 26/06/2011 Oil Workover NO 60 TIRRAWARRA 32 13/06/2011 30/06/2011 Integrity Repair NO 61 BIG LAKE 66 18/06/2011 19/06/2011 Perforation NO 62 BIG LAKE 67 23/06/2011 26/06/2011 Perforation NO 63 TIRRAWARRA 80 25/06/2011 05/07/2011 Perforation NO 64 MOOMBA 148DW 27/06/2011 30/06/2011 BP Repair NO 65 MOOMBA 185 30/06/2011 01/07/2011 Perforation NO 66 TIRRAWARRA 25 01/07/2011 14/07/2011 Integrity Repair NO 67 COONATIE 18 04/07/2011 04/07/2011 Perforation NO 68 BIG LAKE 76 05/07/2011 07/07/2011 Perforation NO 69 COONATIE 18 05/07/2011 09/07/2011 Gas Completion NO 70 TIRRAWARRA 79 07/07/2011 11/07/2011 Perforation NO 72 COONATIE 15 10/07/2011 14/07/2011 Gas Completion NO 72 MOOMBA 84 11/07/2011 11/07/2011 Perforation NO 73 CABERNET 3 13/07/2011 14/07/2011 Perforation NO 74 MOOMBA 92 15/07/2011 15/07/2011 Perforation NO 75 MOOMBA 185 15/07/2011 15/07/2011 Perforation NO 76 COONATIE 17 15/07/2011 20/07/2011 Gas Completion NO 77 TIRRAWARRA 18 15/07/2011 21/07/2011 Integrity Repair NO 78 MOOMBA 83 16/07/2011 17/07/2011 Perforation NO 79 LELEPTIAN 3 18/07/2011 20/07/2011 Perforation NO 80 COONATIE 19 20/07/2011 25/07/2011 Gas Completion NO 81 MOOMBA 59 22/07/2011 28/07/2011 Integrity Repair YES 82 MOOMBA 55 22/07/2011 29/07/2011 Perforation NO 83 SWAN LAKE 5 23/07/2011 24/07/2011 Perforation NO 84 MOOMBA 92 23/07/2011 24/07/2011 Perforation NO 85 TIRRAWARRA 76 23/07/2011 24/07/2011 Perforation NO 86 BIALA 10 27/07/2011 02/08/2011 Oil Workover NO 87 BIG LAKE 35 29/07/2011 01/08/2011 Perforation NO 88 MOOMBA 81 29/07/2011 13/08/2011 Gas Workover NO 89 MOOMBA 83 31/07/2011 31/07/2011 Perforation NO 90 DELLA 25 03/04/2011 04/04/2011 Perforation NO 91 TIRRAWARRA W 1 03/08/2011 04/08/2011 Perforation NO 92 MCKINLAY 6 03/08/2011 06/08/2011 PCP Repair NO 93 FLY LAKE 4 06/08/2011 06/08/2011 Perforation NO 94 MOOMBA 91 06/08/2011 06/08/2011 Perforation NO 95 MOOMBA 134 06/08/2011 06/08/2011 Perforation NO 96 JENA 18 06/08/2011 09/08/2011 BP Repair NO 97 MOOMBA 111 09/08/2011 10/08/2011 Perforation NO 98 JENA 17 09/08/2011 11/08/2011 BP Repair NO 99 KIDMAN 7 12/08/2011 13/08/2011 Perforation NO


86

100 MERRIMELIA 53 12/08/2011 17/08/2011 Oil Workover YES 101 MOOMBA 55 14/08/2011 20/08/2011 Gas Workover YES 102 DULLINGARI N 1 15/08/2011 15/08/2011 Perforation NO 103 MERRIMELIA 60 17/08/2011 20/08/2011 Oil Workover YES 104 TINDILPIE 7 20/08/2011 21/08/2011 Perforation NO 105 BUNGEE 2 21/08/2011 24/08/2011 Gas Completion YES 106 MERRIMELIA 57 21/08/2011 24/08/2011 PCP to LRP Conversion NO 107 MOOMBA 178 24/08/2011 26/08/2011 Perforation NO 108 VATORE EAST 1 24/08/2011 26/08/2011 Perforation NO 109 TOOLACHEE 26 25/08/2011 29/08/2011 Integrity Repair NO 110 MERRIMELIA 8 26/08/2011 01/09/2011 Oil Workover NO 111 BIG LAKE 80 29/08/2011 30/08/2011 Perforation NO 112 COONATIE 14 01/09/2011 04/09/2011 Gas Completion NO 113 MERRIMELIA 48 02/09/2011 04/09/2011 Oil Workover NO 114 BURKE 3 04/09/2011 05/09/2011 Perforation NO 115 MERRIMELIA 53 05/09/2011 10/09/2011 Oil Workover NO 116 COONATIE 16 06/09/2011 08/09/2011 Gas Completion NO 117 COONATIE 20 09/09/2011 10/09/2011 Gas Completion NO 118 TIRRAWARRA 78 11/09/2011 14/09/2011 Gas Completion YES 119 MERRIMELIA 60 11/09/2011 17/09/2011 Oil Workover NO 120 MOOMBA 187 14/09/2011 14/09/2011 Perforation NO 121 TIRRAWARRA 80 15/09/2011 17/09/2011 Gas Completion YES 123 TIRRAWARRA 79 17/09/2011 20/09/2011 Gas Completion NO 124 ULANDI 6 18/09/2011 21/09/2011 BP Repair NO 125 MOOMBA 184 20/09/2011 20/09/2011 Perforation NO 126 TIRRAWARRA 18 21/09/2011 27/09/2011 Integrity Repair YES 127 ULANDI 12 22/09/2011 24/09/2011 BP Repair NO 128 RISSIKIA 1 25/09/2011 01/10/2011 PCP Repair NO 129 TIRRAWARRA 32 29/09/2011 11/10/2011 Integrity Repair YES 130 MOOMBA 184 01/10/2011 01/10/2011 Perforation NO 131 JENA 28 03/10/2011 08/10/2011 PCP to LRP Conversion NO 132 TIRRAWARRA 52 04/10/2011 04/10/2011 Perforation NO 133 MOOMBA 186 06/10/2011 06/10/2011 Perforation NO 134 JENA 20 08/10/2011 12/10/2011 PCP to LRP Conversion NO 135 TIRRAWARRA 61 09/10/2011 09/10/2011 Perforation NO 136 MOOMBA 185 10/10/2011 10/10/2011 Perforation NO 137 TIRRAWARRA 57 12/10/2011 25/10/2011 Integrity Repair NO 138 TIRRAWARRA 38 15/10/2011 17/10/2011 Perforation NO 139 TINDILPIE 12 16/10/2011 17/10/2011 Perforation NO 140 TIRRAWARRA 15 22/10/2011 24/10/2011 Perforation NO 141 MOONANGA 1 27/10/2011 28/10/2011 Perforation NO 142 TIRRAWARRA 23 27/10/2011 13/11/2011 Integrity Repair NO 143 MCKINLAY 6 28/10/2011 02/11/2011 PCP Repair NO 144 METTIKA 6 29/10/2011 31/10/2011 Perforation NO 145 BARINA 3 03/11/2011 03/11/2011 Perforation NO 146 ULANDI 12 03/11/2011 03/11/2011 LRP Repair NO 147 HACKETT 2 05/11/2011 05/11/2011 Perforation NO 148 MOOMBA 59 05/11/2011 05/11/2011 Perforation NO 149 ULANDI 8 08/11/2011 14/11/2011 BP Repair NO 150 MOOMBA 184 09/11/2011 10/11/2011 Perforation NO 151 MOOMBA 186 12/11/2011 13/11/2011 Perforation NO 152 NEPHRITE STH 7 13/11/2011 13/11/2011 Perforation NO 153 NEPHRITE STH 9 14/11/2011 19/11/2011 Casing Repair NO 154 BIG LAKE 25 01/12/2011 13/12/2011 Integrity Repair NO


87

155 MOOMBA 187 06/12/2011 07/12/2011 Perforation NO 156 NEPHRITE STH 9 11/12/2011 19/12/2011 Perforation NO 157 MOOMBA 156ST1 12/12/2011 14/12/2011 Perforation NO 158 BIG LAKE 2 14/12/2011 02/01/2012 Integrity Repair NO 159 CHIMMICHURRI 1 17/12/2011 05/01/2012 Oil Completion NO 160 TINDILPIE 12 18/12/2011 23/12/2011 Perforation NO 161 HACKETT 2 21/12/2011 22/12/2011 Perforation NO 162 PONDRINIE 17DW 29/12/2011 30/12/2011 Perforation NO

Well Workover Summary – PPL 206

# WELL WELL

# START DATE

END DATE

WORKOVER ACTIVITY


1 DERRILYN 4 04/11/2011 07/11/2011 PCP to BP Conversion NO Well Workover Summary – PPL 225

# WELL WELL

# START DATE

END DATE

WORKOVER ACTIVITY


Well Workover Summary – PPL 227

# WELL WELL

# START DATE

END DATE

WORKOVER ACTIVITY


1 STIMPSON JAY 1 24/01/2011 24/01/2011 LRP Repair NO Abandonment

# WELL WELL # START DATE



1 KERINNA 1 12/10/2011 20/10/2011 Plug and Abandon NO 2 GRENACHE 1 22/10/2011 23/10/2011 Plug and Abandon NO 3 KOBARI 1 22/10/2011 27/10/2011 Plug and Abandon NO 4 MERLOT 1 24/10/2011 24/10/2011 Plug and Abandon NO 5 WIRRARIE Nth 2 26/10/2011 26/10/2011 Plug and Abandon NO


88

Fracture Stimulation Summary # WELL WELL # START DATE END DATE WORKOVER ACTIVITY 1 COONATIE 17 28/12/2010 07/01/2011 N 2 COONATIE 18 07/01/2011 26/02/2011 N 3 COONATIE 14 14/02/2011 05/04/2011 N 4 COONATIE 19 05/04/2011 26/04/2011 N 5 COONATIE 15 24/04/2011 09/05/2011 N 6 COONATIE 18 10/05/2011 20/05/2011 N 7 COONATIE 16 18/05/2011 25/05/2011 N 8 TIRRAWARRA 78 29/05/2011 26/06/2011 N 9 TIRRAWARRA 80 26/06/2011 13/07/2011 N 10 TIRRAWARRA 79 07/07/2011 21/07/2011 N 11 MOOMBA 55 20/07/2011 31/07/2011 Y 12 TIRRAWARRA 18 31/07/2011 05/08/2011 Y 13 BURKE 4 08/08/2011 10/08/2011 Y 14 STRZELECKI NE 1 12/08/2011 16/08/2011 N 15 MERRIMELIA 53 22/08/2011 24/08/2011 Y 16 MERRIMELIA 60 24/08/2011 26/08/2011 Y 17 TIRRAWARRA 32 27/08/2011 02/09/2011 Y 18 BUNGEE 2 03/09/2011 06/09/2011 Y 19 MOOMBA 59 10/09/2011 11/09/2011 Y 20 MOOMBA 187 15/09/2011 28/09/2011 N 21 MOOMBA 184 28/09/2011 03/10/2011 N 22 MOOMBA 186 04/10/2011 08/10/2011 N 23 MOOMBA 185 08/10/2011 15/10/2011 N 24 TINDILPIE 11 16/10/2011 25/10/2011 N 25 TINDILPIE 12 26/10/2011 10/11/2011 N 26 HACKETT 2 07/11/2011 22/11/2011 N 27 NEPHRITE STH 7 20/11/2011 09/12/2011 N 28 NEPHRITE STH 9 10/12/2011 22/12/2011 N 29 NEPHRITE STH 8 25/12/2011 08/01/2012 N


- 89 -

Appendix 6 Well Summary – Producing & Suspended Wells

As at 31/12/2011 Gas Oil Gas/Oil 1 Number of Wells in Production (Operating) 467 166 0

2 Number of Wells Suspended (Suspension plug run or In-active >1yr) 381 236 42

3 Number of Wells Completed/Not on line 0 0 0

4 Number of Wells - Cased & Suspended 43 5 5

5 Number of Wells - Casing Annuli Tested 303 0 29

6 EHS Risk Analysis of Wells Tested

- Level 4 (High Risk) 0 0 0

- Level 3 (Substantial Risk) 24 0 0

- Level 2 (Moderate Risk) 125 0 5

- Level 1 (Low Risk) 157 0 11

7 Number of Wells – Integrity Repairs Undertaken 14 0 0

8 Number of Wells - Plugged & Abandoned (post Completion and/or Production) 3 2 0

9 Number of Wells - Plugged & Abandoned (Post Drilling) 0 1 0

10 Number of Wells - Plugged and Suspended (post Drilling) 0 0 0

11 Planned 2012 - Plug & Abandonment’s (post Completion and/or Production) 2 0 0

Note: 1) Gas/Oil wells are those that have perforations planned or completed in separate oil and gas bearing reservoirs e.g. Tirrawarra, Moorari or Fly Lake fields - Gas wells with natural gas liquids or Oil wells with associated gas remain listed as either Gas wells or Oil wells.


- 90 -

Appendix 7 Flowlines Constructed – 2011

# From Diameter

(mm) Steel / GRE

Const Finish

Length (metres)

Total metres (mth)

1 Mudlalee 6 80 EUE 6/01/11 660 2 Moomba 14 150 Steel 3/01/11 3724 4384 3 Meranji 1 to Meranji 22 150 Steel 11/08/11 679 4 Swan Lake 8 to Swan Lake 1 Manifold 100 Steel 19/08/11 490 5 Swan Lake 1 Manifold to Meranji 13 100 Steel 26/08/11 4311 6 Meranji 22 to Cowralli redirect 150 Steel 29/08/11 318 7 Meranji 22 to Pond 100 Steel 30/08/11 400 6198 8 Bungee 2 100 Steel 14/11/11 50 9 Coonatie 14 150 Steel 15/11/11 653

10 Coonatie 15 150 Steel 16/11/11 797 11 Coonatie 16 150 Steel 17/11/11 80 12 Coonatie 17 150 Steel 18/11/11 231 13 Coonatie 18 150 Steel 19/11/11 800 14 Coonatie 19 150 Steel 20/11/11 674 15 Coonatie 20 150 Steel 21/11/11 894 16 Dilchee 4 100 Steel 22/11/11 661 17 Hackett 2 100 Steel 23/11/11 1440 18 Jack Lake 150 Steel 24/11/11 6356 19 Kidman North 4 100 Steel 25/11/11 686 20 Merrimelia 48 65 GRE 26/11/11 1916 21 Merrimelia 8 65 GRE 27/11/11 350 22 Moomba 184 100 Steel 28/11/11 130 23 Moomba 185 100 Steel 29/11/11 390 24 Moomba 186 100 Steel 30/11/11 133 16241 25 Moomba 187 100 Steel 1/12/11 520 26 Moomba 188 100 Steel 2/12/11 288 27 Moomba 189 100 Steel 3/12/11 115 28 Moomba 190 100 Steel 4/12/11 3180 29 Moomba 59 100 Steel 5/12/11 1670 30 Nephrite South 6 100 Steel 6/12/11 459 31 Nephrite South 7 100 Steel 7/12/11 132 32 Nephrite South 8 150 Steel 8/12/11 1015 33 Strzelecki NE 1 100 Steel 9/12/11 767 34 Tindilpie 11 100 Steel 10/12/11 973 35 Tirrawarra 78 (& 80) 1 line 100 Steel 11/12/11 1150 36 Tirrawarra 79 100 Steel 12/12/11 1530 11799

Total Km 38.622 Total Steel Line 35.696 Total GRE 2.266 Total EUE 0.66


- 91 -

Appendix 8 Pipeline Inspection, Testing & Repair – 2011 Integrity Testing

High Velocity Wellhead Spooling / Swing Wells - Ultrasonic Inspection & Radiography of the Choke Welds (49 in Total):

• Beckler 02 • Cowralli 01 • Moomba 095 • Big Lake 06 • Cowralli 07 • Moomba 103 • Big Lake 07 • Cowralli 08 • Moomba 157 • Big Lake 15 • Cowralli 12 • Munkarie 08 • Big Lake 20 • Cowralli 13 • Narie 01 • Big Lake 24 • Crowsnest 01 • Pira 03 • Big Lake 33 • Daralingie 09 • Pondrinie 11 • Big Lake 34 • Della 24 • Raven(Sa) 04 • Big Lake 41 • Epsilon 08 • Swan Lake 03 • Big Lake 44 • Meranji 02 • Swan Lake 06 • Big Lake 63 • Meranji 18 • Tindilpie 04 • Big Lake 77 • Moolion 03 • Tindilpie 06 • Big Lake 89 • Moomba 022 • Toolachee 14 U • Big Lake 90 • Moomba 035 • Toolachee 18 • Big Lake 91 • Moomba 040 • Toolachee 36 • Coonatie 01 • Moomba 056 • Coonatie 05 • Moomba 083

Mothballed Pipelines - 2011 Nil Final Abandonment - 2011 Nil Pipeline Risk Assessments Field-wide Pipeline Integrity Reviews (PIRs) of: Merrimelia Gas Field Merrimelia Oil Field Strzelecki Gas Field Strzelecki Oil Field Pipeline Integrity / Risk Workshops – 2011

Northern Fields Bookabourdie to Tirrawarra Gas Trunkline Brolga Spineline Cuttapirrie to Moorari Gathering Line Fly Lake/Brolga to Tirrawarra Trunkline Leleptian Gas Trunkline


- 92 -

Meranji to Merrimelia Gathering Line Meranji to Tirra-Moomba Trunkline Merrimelia GRE Oil Trunkline Merrimelia to Moomba GRE Oil Trunkline Moorari to Tirrawarra Gas Spineline Moorari to Tirrawarra Unit Oil Trunkline Pondrinie to Bookabourdie Gas Trunkline Tirrawarra to Merrimelia Oil Trunkline Tirrawarra to Moomba Gas Trunkline Eastern Fields Burke to Dullingari Trunkline Della Southern Gas Spineline Della to Moomba Gas Trunkline Dullingari to Della Gas Trunkline Dullingari to Strzelecki Junction Oil Trunkline Epsilon to Burke Trunkline Kidman to Kidman Junction Gas Trunkline Marabooka Gas Gathering Line Mettika Gas Gathering Line Mudlalee Oil Gathering Line Stokes To Mettika Gas Spineline Strzelecki Junction to Moomba Oil Trunkline Strzelecki to Strzelecki Junction Oil Trunkline Toolachee Crossover Gas Trunkline Toolachee Gas Trunkline Pipeline ILI (Inline Inspection) Surveys – 2011 • Epsilon to Moomba Oil Pipeline (JMOP Section 2) • Raven Gas Bypass • Stokes To Mettika Gas Spineline


- 93 -

Appendix 9 Details of Seismic Activity

The breakdown of square kilometres in each Licence for CESAN11B NEPHRITE 3D VSP was as follows:

LICENCE AREA RECORDED - SQ KM PPL 66 0.82

PPL 95 3.89

PPL 140 36.12

AAL 163 22.97

TOTAL 63.60


- 94 -

Appendix 10a 2011 Production Facility Projects

# Project Project Description Location

1 Planned shutdowns LRP A, CO2 Trains, Boilers and Satellites Plant & Field

2 LRP seal upgrades Fit improved seal system Moomba Plant

3 Moomba Buried Lines Installation of above ground lines instead of buried Moomba Plant

4 Tantanna Oil Line Repair, lifting and inspection of pipeline Tantanna to Gidgealpa

5 Charo Road upgrade Road from Tirrawarra via Fly Lake to Charo, including Walkers Crossing Bridge Various

6 # 10 Boiler Super heater New super Heater installed Moomba Plant

7 LRP Residue Compressors Installation of new control system for Residue Compressors Moomba Plant

8 LRP Cold Service pumps Replacement of Cold Service pumps Moomba Plant


- 95 -

Appendix 10b 2012 Production Facility Projects - Proposed # Project Project Description Location Finish

1 Toolachee & Strzelecki Interceptor Pond Upgrade and re-instatement of ponds Toolachee On-going

2 Planned shutdowns LRP A, CO2 Trains, Boilers and Field Satellites Moomba Plant & Field

2012

3 Moomba Plant Water and Sludge Handling Upgrade

Review of sludge treatment and water disposal at the Moomba facility to debottleneck or upgrade existing systems.

Moomba Plant On-going

4 Moomba Sludge Treatment Plant Construction of new facility Moomba Plant 2012

5 Moomba Plant Buried Lines Continue installation of above ground lines instead of buried Moomba Plant On-going

6 Re-life Salt Bath Heater 1 and DPCU Assess, repair and upgrade unit Moomba Plant 2012

7 Tirrawarra Evaporation pond Upgrade Tirrawarra 2012

8 Charo Pipeline Install and commission pipeline from Charo to Tirrawarra Charo 2012

9 Cook Pipeline Install and commission pipeline from Cook (QLD) to Merrimelia (SA) SA Section 2012

10 Tantanna Oil line Lifting supporting and assessment Tantanna 2012

11 Gidgealpa Gas pond upgrade Upgrade interceptor pond Gidgealpa 2012

12 Big Lake Flare Upgrade to Big Lake Flare system Big Lake 2012


- 96 -

Appendix 11 Wells Drilled – 2011

# WELL NAME LICENSE WELL TYPE TARGET SPUD

DATE RIG

RELEASE TD (M) STATUS COMMENT

1 Tirrawarra 80 PPL 20 Dev Gas 7/01/10 25/01/11 3050 C&S Gas

2 Kidman North 4 PPL 24 Dev Gas 1/02/11 14/02/11 2309 C&S Gas

3 Moomba 184 PPL 7 Dev Gas 4/04/11 26/04/11 2613 C&S Gas



6 Nephrite South 6 PPL 140 Dev Gas 9/06/11 8/07/11 3252 C&S Gas


8 Tindilpie 11 PPL 140 Dev Gas 8/07/11 8/08/11 3164 C&S Gas


10 Tindilpie 12 PPL 140 Dev Gas 5/08/11 7/09/11 3396 C&S Gas



13 Hackett 2 PPL 140 Dev Gas 10/09/11 3/10/11 3262 C&S Gas

14 Dilchee 4 PPL 72 Dev Gas 14/09/11 30/09/11 2752 C&S Gas





19 Andre 4 PPL 238 Dev Gas 16/12/11 7/01/12 3161 C&S Gas

20 Merrimelia 62 PPL 17 Dev Gas 30/12/11 9/01/12 2293 C&S Gas


- 97 -

Wells Drilled 2010– Not SACBJV projects

# WELL NAME LICENSE WELL TYPE TARGET SPUD

DATE RIG

RELEASE TD (M) STATUS COMMENT

1 Wallace 1 PEL 114 Explt(NFE) Oil 8/10/11 18/10/11 1593 C&S Oil 2 Chimmichurri 1 PEL 114 Explt(NFE) Oil 22/10/11 30/10/11 1666 C&S Oil 3 Kakapo 1 PEL 114 Explt(NFE) Oil 1/11/11 12/11/11 1628 C&S Dry hole 4 Teringie 2 PPL 226 Explt (App) Oil 14/11/11 20/11/11 1342 C&S Oil


- 98 -

Appendix 12 2011 Reports, including Geological and Reserves Reports Reg # Routine Report Title Comment Yes / No 33 Yes Annual Report - 2010 33 (2) e Yes Proved + Probable Reserves Data, YE 2010. 38 Yes Daily Drilling Reports 39 Yes Wireline Logs – Drilling Yes Wireline Logs – completions 40 Yes Well Completion Reports 41 Yes Quarterly Cased Hole report 42 Yes Well Test Analysis Report 43 Yes Petroleum Reservoir Fluid Analysis Report 44 Yes Downhole Diagrams 45 Yes Production Reports

2011 Reports In Accordance With Reg 33 (2) (e)

Reg # Routine Report Title Comment Yes / No 33 (2) e Yes Proved + Probable Reserves Data, YE 2010.