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PEL 104 Annual Report – Year 4 PEL104-CORP-TM-REP-002 Revision 0 26/06/2013 of 31

“ZERO INCIDENTS”

Annual Report

Licence Year 4 (Term 2)

29th April 2012 – 28

th April 2013

Petroleum Exploration Licence (PEL) 104

Document Number

PEL104-CORP-TM-REP-002

Revision 0



CONTENTS

REVISION HISTORY ........................................................................................................................ 3

1 INTRODUCTION ....................................................................................................................... 4

2 PERMIT SUMMARY .................................................................................................................. 4

Suspensions .................................................................................................................................. 5

3 REGULATED ACTIVITIES ......................................................................................................... 5

Drilling and Related Activities ........................................................................................................ 5

Seismic Data Acquisition ............................................................................................................... 6

Seismic Data Processing and Reprocessing ................................................................................. 6

Geochemical, Gravity, Magnetic and other surveys ....................................................................... 6

Production and Processing ............................................................................................................ 6

Pipeline/ Flowline Construction and Operation .............................................................................. 6

Preliminary Survey Activities ......................................................................................................... 6

4 COMPLIANCE ISSUES ............................................................................................................. 6

Licence Non-Compliance .............................................................................................................. 6

Regulatory Non-Compliance.......................................................................................................... 7

Compliance with Statement of Environmental Objectives .............................................................. 7

Management System Audits ........................................................................................................ 26

Report and Data Submissions ..................................................................................................... 26

Incidents ...................................................................................................................................... 28

Threat Prevention ........................................................................................................................ 28

Future Work Program .................................................................................................................. 29

5 EXPENDITURE STATEMENT ................................................................................................. 30

APPENDIX I Expenditure statement .......................................................................................... 31



REVISION HISTORY

Revision Revision Date Document Status Revision Comments Author Approved by

A 01/06/2013 Issued for Review Document creation Angela MacKinnon James Crowley

0 26/06/2013 Issued for Use Angela MacKinnon James Crowley



1 INTRODUCTION

Petroleum Exploration Licence (PEL) 104 was granted on 28 March 2003 for an initial term of five years. It has since been renewed for another five year term effective 3 October 2008. The licence area is located in the Cooper and Eromanga Basins, South Australia. This report details the work conducted during Term 2, Licence Year 4 of the licence (29 April 2012 - 28 April 2013), in accordance with Regulation 33 of the Petroleum and Geothermal Energy Act 2000.

2 PERMIT SUMMARY

For the duration of the licence year, licensees for Petroleum Exploration Licence (PEL) 104 were:

Victoria Oil Exploration (1977) Pty Ltd 40%

Permian Oil Pty Ltd 20%

Springfield Oil and Gas Pty Ltd 15%

Impress (Cooper Basin) Pty Ltd 25%

The current work commitments (including all variations) associated with PEL 104 can be seen in Table 1.

Table 1 Current work commitments by licence year

Licence Year 4 concluded on 28 April 2013. The following table displays the minimum work program (after all variations) and the actual work completed up until the end of the current licence period.

Year of Term of Licence

Work Program

Year Begins

Work

Program Year

Ends

Minimum Work Program

1

(3 Oct ‟08 – 2 Oct ‟09)

3 Oct „08

2 Oct „09 Geological and Geophysical Studies

2

(3 Oct ‟09 – 2 Oct ‟10) 3 Oct „09 2 Apr „11

Geological and Geophysical Studies

3

(3 Oct ‟10 – 28 Apr ‟12) 3 Oct „10 28 Oct „12


4

(29 Apr ‟12 – 28 Apr ‟13) 29 Apr „12 28 Oct „13


5

(29 Apr ‟13 – 28 Apr ‟14) 29 Apr „13 28 Oct „14 One well

6

(Extended Year 5 period)

(29 Apr 14 – 28 Oct ‟14)



Table 2 Final work program and work completed (as of end of current reporting period) by licence year

Suspensions

No licence suspensions occurred during the licence reporting period.

Variations

No licence variations occurred during the licence reporting period.

3 REGULATED ACTIVITIES

Pursuant to Regulation 33(2)(a) of the Regulations, an annual report must include:

“a summary of the regulated activities conducted under the licence during the [current reporting] year.”

This information is detailed below in designated sections.

Drilling and Related Activities

Spitfire-2

Exploration Well

Ensign Rig #48

1892m

Spud – 17 November 2012

Rig Release – 28 November 2012

Case & completed as an oil producer.

Licence Year Minimum Work Program Actual Work

1 Geological and

Geophysical Studies

Geological and Geophysical Studies;

Mollichuta 3D Seismic Survey (128 km2)

2 Geological and

Geophysical Studies Geological and Geophysical Studies

3 Geological and

Geophysical Studies


Four Wells (Jaguar-1, Spitfire-1, Thunderchief-1 & Tigercat-2)

4 Geological and

Geophysical Studies


One well (Spitfire-2); Lignum 3D Seismic Survey (316km2)

5 One well -

6

(Extended Year 5

Period)

- -



Seismic Data Acquisition

Lignum 3D Seismic Survey was acquired by Terrex, covering an area of 199km2 within PEL 104, and a total area of 316km2. The survey commenced on 12 November 2012 and was completed on 16 February 2013.

Seismic Data Processing and Reprocessing

The Lignum 3D Seismic Survey is currently being processed by CGG, to outline leads defined by amplitude anomalies and channel carves interpreted from existing 2D seismic data.

Geochemical, Gravity, Magnetic and other surveys

No regulated activities undertaken in the licence reporting period.

Production and Processing

An Initial Production Test (IPT) was undertaken on the Spitfire-2 well in January 2013 to further delineate the reservoir, and test the productivity of the well so that if successful, an appropriate Extended Production Test (EPT) could be conducted. The well was produced for 10 days from 20th to 30th January 2013, and has subsequently been placed on EPT.

Pipeline/ Flowline Construction and Operation


Preliminary Survey Activities


4 COMPLIANCE ISSUES

Pursuant to Regulations 33(2) (b) & (c), an annual report must include:

“a report for the year on compliance with the Act, these regulations, the licence and any relevant statement of environmental objectives,” and

“a statement concerning any action to rectify non-compliance with obligations imposed by the Act, these regulations or the licence, and to minimise the likelihood of recurrence of any such non-compliances.”

Detailed information on the individual instances of non-compliance are provided below in designated sections.

Licence Non-Compliance

No licence non-compliances identified for PEL 104.



Regulatory Non-Compliance

No regulatory non-compliances identified for PEL 104.

Compliance with Statement of Environmental Objectives

Drilling activities conducted in PEL 104 have been assessed against the following Statement of Environmental Objectives:

Statement of Environmental Objectives: Cooper Basin Drilling and Well Operations (Santos Ltd. 2009).

Table 3 SEO for Drilling and Well Operations, Cooper Basin, SA (Santos Ltd. 2009)

Objective / Goals Assessment Criteria

Compliant/

Non-Compliant

Comments

1.0 To minimise risks to the safety of the public and other third parties.

Reasonable measures

implemented to ensure no

injuries or health risks to the

public or third parties.

Compliant / Achieved

No injuries or health risks to the public or third parties.

2.0 To 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


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.


No disturbances or

contamination to soil.

All relevant GAS scores were recorded at „0‟, „+1‟ or „+2‟.




Compliant/

Non-Compliant

Comments

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.

3.0 To 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


No weeds or feral animals were introduced to, or spread in operational areas as a consequence of activities.




Compliant/

Non-Compliant

Comments

4.0 To 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.

No waste material disposal to

sumps and flare pits.

No leaks/spills outside of areas

designed to contain them.

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


groundwater) contamination as a

result of fuel or chemical storage

and handling.

Waste Management

Refer to Assessment Criteria for Objective 11.


Disturbances to

drainage patterns were

minimised.

Contamination of

surface and shallow

ground water

resources was

avoided.

No overflow of drill

cuttings, muds and

other drilling fluids from

mud sumps.

No waste material

disposal to sumps and

flare pits.

No leaks/spills outside

of areas designed to

contain them.


groundwater)

contamination as a

result of production

testing or well

blowdown operations.


groundwater)

contamination as a

result of fuel or

chemical storage and

handling.




Compliant/

Non-Compliant

Comments

5.0 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.


Disturbances to sites of

cultural and heritage

significance were

avoided.

6.0 To minimise loss

of aquifer pressure

and avoid aquifer

contamination.

Note: This objective is

subject to an ongoing

review and is

currently unchanged

from the 2003 SEO.

Refer to the

addendum to the EIR

(Santos 2009a) for

details.

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.

Producing, Injection, Inactive and

Abandoned Wells

No cross-flow behind casing

between aquifers, and between

aquifers and hydrocarbon

reservoirs unless approved by

DWLBC.

Compliant/ Achieved

Aquifer contamination

and aquifer pressure

loss was minimised.




Compliant/

Non-Compliant

Comments

7.0 To 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.


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


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.

Compliant /

Achieved

No disturbances to

native vegetation and

fauna.

All relevant GAS

scores were recorded

at „0‟, „+1‟ or „+2‟.

8.0 To minimise air

pollution and

greenhouse gas

emissions.

Compliance with EPA

requirements

Compliant /

Achieved

Air pollution and

greenhouse gas

emissions were

minimised.

9.0 To maintain and

enhance partnerships

with the Cooper Basin

community.

No unresolved reasonable

complaints from the community.

Compliant /

Achieved

No unresolved

reasonable complaints

from the community.




Compliant/

Non-Compliant

Comments

10.0 To avoid or

minimise disturbance

to stakeholders and

associated

infrastructure.

No reasonable stakeholder

complaints left unresolved.

Compliant /

Achieved

Disturbances to

stakeholders and/or

associated

infrastructure were

avoided.

11.0 To optimise (in

order of most to least

preferable) waste

avoidance, reduction,

reuse, recycling,

treatment and

disposal.

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 (refer

Appendix 1 Table A2).

Attainment of GAS criteria for

“Site left in clean and tidy

condition” objective during

borrow pit restoration (refer

Appendix 1 Table A3).

Compliant /

Achieved

Waste was avoided,

reduced, reused,

recycled and disposed

of in the optimal way.

All relevant GAS


at „0‟, „+1‟ or „+2‟.




Compliant/

Non-Compliant

Comments

12.0 To remediate

and rehabilitate

operational areas to

agreed standards.

No unresolved reasonable

stakeholder complaints.

Contaminated Site Remediation

Contaminated sites are

remediated to a level as

determined by the approved SHI

process.

Prior to the finalisation and

approval of the SHI process,

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 the objectives

(refer Appendix 1 Table A2):

- “To minimise the visual impact

and the revegetation of

indigenous species”

Borrow Pit Restoration

The attainment of 0, +1 or +2

GAS criteria for (refer Appendix 1

Table A3):

- “Revegetation of indigenous

species”, “minimise impact on

soil”, “minimise visual impacts”

and “Site to be left in a clean and

tidy condition”

Note: Well abandonment issues

are addressed under Objective 6.

Compliant /

Achieved

No unresolved

reasonable stakeholder

complaints.

All relevant GAS


at „0‟, „+1‟ or „+2‟.

Seismic activities conducted in PEL 104 have been assessed against the following Statement of Environmental Objectives:

Statement of Environmental Objectives: Cooper Basin Geophysical Operations (Santos Ltd. 2006).



Table 4 SEO for Geophysical Operations, Cooper Basin, SA (Santos Ltd. 2006)

Objective / Goals Assessment Criteria Compliant/

Non-Compliant Comments

Objective 1: To

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.

Compliant/ Achieved

All relevant GAS scores

were recorded at „0‟, „+1‟ or

„+2‟.

Objective 2: To


to and contamination

of soil resources.

Campsite and 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.

Compliant/ Achieved



„+2‟.





Objective 3: To


to native vegetation

and fauna.

Campsite and survey

line preparation

The attainment of either


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 and

education

All personnel are fully

informed on the fire

danger season and

associated restrictions.

Compliant/ Achieved



„+2‟.





Objective 4: To 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.

Compliant/ Achieved

Yandruwandha

Yawarrawarrka advisors

scouted proposed survey

line locations and access

tracks. A full heritage report

was conducted by the

Yandruwandha

Yawarrawarrka upon

completion of the seismic

program.

Objective 5: To


to livestock, pastoral

infrastructure and

landholders.



„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.

Compliant/ Achieved



„+2‟.





Objective 6: To 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

Compliant/ Achieved

No weeds or feral animals

were introduced or spread

in operational areas.

Objective 7: To


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.



„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.

Compliant/ Achieved



„+2‟.





Objective 8: To

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.


are attained for

„Negligible survey

markers and rubbish in

situ‟ objective listed in

Appendix 3.

Compliant/ Achieved



„+2‟.

Production activities conducted in PEL 104 have been assessed against the following Statement of Environmental Objectives:

Statement of Environmental Objectives: Cooper Basin Petroleum Production Operations (Victoria Petroleum 2008).

Table 5 SEO for Petroleum Production Operations, Cooper Basin, SA (Victoria Petroleum 2008)



1.0 To avoid unnecessary disturbance to third party infrastructure, landholders or land use.

Where disturbance is unavoidable or accidental, infrastructure or land use is restored to the satisfaction of the landholder/owner or as near as practicable to undisturbed condition.


No incidents reported nor complaints received regarding disturbance to landholders.

1.1 To minimise disturbance or damage to infrastructure / land use and remediate where disturbance cannot be avoided.

No unresolved reasonable landholder/third party complaints.


1.2 To minimise disturbance to landholders.

Landholder activities not restricted or disturbed as a result of activities unless by prior arrangement.






2.0 To maintain soil stability / integrity.

The extent of soil erosion is consistent or less than surrounding land.

Vegetation cover is consistent with surrounding land.


No production activities undertaken on salt lakes, steep tableland land systems or wetland land systems.

2.1 To remediate erosion as a result of production operations in a timely manner.

No evidence of significant subsoil on surface (colour).


2.2 To prevent soil inversion.

No production activities undertaken on salt lakes, steep tableland land systems or wetland land systems (as defined in the EIR).


2.3 To minimise and remediate soil disturbance.

Abandoned areas (e.g. borrow pits) are remediated and rehabilitated to be reasonably consistent with the surrounding area.

0, +1 or +2 GAS criteria for borrow pit construction and rehabilitation are attained (Appendix B).




„+2‟.





3.0 To minimise disturbance to native vegetation and fauna.

Vegetation clearing is in accordance with the Native Vegetation Act 1991.


No rare, vulnerable or endangered flora was removed.

3.1 To minimise additional clearing of or damage to native vegetation as part of production activities.

Vegetation clearing is limited to previously disturbed areas or areas assessed to be of lowest sensitivity.

No rare, vulnerable or endangered flora removed without appropriate permits.

No production activities undertaken on salt lakes, steep tableland land systems or wetlands land systems (as defined in the EIR).

0, +1 or +2 GAS criteria for borrow pit construction and rehabilitation are attained (Appendix B).




„+2‟.

3.2 To achieve a significant environmental benefit for vegetation clearance associated with Production Licence activities.

Significant environmental benefit work undertaken in a timely manner.

Native Vegetation Council signoff on significant environmental benefit.


3.3 To ensure production activities are planned and conducted in a manner that minimises impacts on native fauna.

Native fauna casualties associated with operations restricted to as low as reasonably practical.

Vegetation clearing is limited to previously disturbed areas or areas assessed to be of lowest sensitivity.






3.4 To minimise disturbance of aquatic habitats (specifically wetlands, permanent waterholes and flowing water courses).

Works in aquatic habitats (e.g. flowing watercourses) have been approved by PIRSA.


3.5 To minimise impacts to listed species.

Impacts to listed species will not result in a move to a higher risk category (i.e. compliance with Goal 1 of Strategy No Species Loss - A Nature Conservation Strategy for South Australia 2007-2017).

Species abundance and distribution on the reinstated areas is reasonably consistent with the surrounding area.


3.6 To appropriately rehabilitate disturbed areas not required for production activities.

No reasonable complaints received from landholders in relation to regrowth of vegetation in disturbed areas.






4.0 To prevent the introduction or spread of weeds, pathogens and pest fauna.

The presence of weeds and pathogens was consistent with or better than adjacent land.


No outbreak or spread of pests identified

4.1 To prevent the introduction or spread of weeds, pathogens and pest fauna.

No new outbreak or spread of weeds reported as a result of production activities.


5.0 To minimise the impact of the production operations on water resources.

For excavations, surface drainage profiles restored to as is reasonably consistent with surrounding area.


No uncontrolled flow of water to surface

5.1 To maintain current surface drainage patterns.

For existing roads, easements, drainage is maintained similar to pre-existing conditions.


5.2 To minimise impact to aquifers / groundwater volumes and flow patterns.

No impediment of watercourses.

Volume of water produced recorded.

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






6.0 To avoid land or water contamination

No evidence of any spills or leaks to areas not designated to contain spills.


No evidence of any spills or

leaks to areas not

designated to contain spills.

6.1 To prevent spills occurring and if they occur minimise their impact

Compliance with the Environment Protection Act 1993, Australian Standard 1940 and the Australian Dangerous Goods Code.


6.2 To remediate and monitor areas of known contamination arising from production activities (salinisation, hydrocarbons, other production chemicals).

Contamination restricted to known areas and remediation strategies investigated and implemented where practical.

Level of hydrocarbon contamination continually decreasing, ultimately to meet Environment Protection Authority (EPA) guidelines.


6.3 To ensure that rubbish and waste material is disposed of in an appropriate manner.

No evidence of rubbish or litter on easements or at facilities.

Waste material is contained and disposed of in accordance with EMS procedures and the Environment Protection Act 1993.

Evidence of waste tracking certificates for prescribed wastes.

Evidence of compliance with any waste disposal licence conditions (e.g. EPA licence).


Rubbish and waste material was disposed of in an appropriate manner.

6.4 To prevent impacts as a result of hydrotest water and waste water (e.g. washdown water) disposal.

Discharge water meets appropriate ANZECC and EPA criteria for point of disposal.






6.5 To ensure the safe and appropriate disposal of grey water (sullage, sewage).

No evidence of impacts to soil, water and vegetation as a result of water disposal (i.e. soil erosion, dead vegetation, water discoloration).

No evidence of non-compliance with local or state government regulations.


No evidence of impacts to soil, water and vegetation as a result of water disposal

No evidence of non-compliance with local or state government regulations.

6.6 To minimise impacts as a result of produced formation water treatment and disposal and restrict to defined areas.

Water monitoring results indicated levels of Total Petroleum Hydrocarbons (TPH) below 30mg/L in bunded holding/evaporation ponds and 10mg/L in freeform evaporation ponds or natural disposal areas.

No evidence of overflow of product from interceptor pit.

No evidence of hydrocarbon contamination immediately adjacent to bunded ponds.

Disposal of treated PFW restricted to defined areas in accordance with activity approval conditions.


6.7 To minimise impacts as a result of land treatment units and restrict to defined areas.

Periodic reports as required detail quantity, level of contamination and proposed ongoing operation of the land treatment units.






7.0 To minimise noise due to operations.

Operational activities have taken reasonable practical measures to comply with noise regulations, under the Environment Protection Act 1993


No noise-related complaints received.

7.1 To take reasonable practical measures to comply with noise standards.

No unresolved reasonable complaints


8.0 To minimise atmospheric emissions.

Reasonable practical measures implemented in design and operation to minimise emissions.


No complaints or injuries relating to emissions recorded.

8.1 To minimise atmospheric emissions.

No reasonable complaints received.


8.2 To minimise the generation of dust.

No dust related injuries recorded.


No dust related injuries recorded.

9.0 To adequately protect cultural heritage sites and values during operations and maintenance.

Proposed construction areas and access tracks surveyed by relevant Native Title claimant group.


No identified cultural sites were impacted or disturbed.

9.1 To ensure that identified cultural sites are not disturbed.

Any new sites identified are recorded and reported to appropriate authority.

No impact to identified sites.






10.0 To minimise the risk to public health and safety.

No injuries or incidents involving the public.


No injuries or incidents involving the public.

10.1 To adequately protect public safety during normal production operations.

Demonstrated compliance with relevant standards.


10.2 To avoid fires associated with production activities.

Emergency procedures implemented and personnel trained.

No uncontrolled operations related fires.


No uncontrolled operations related fires.

10.3 To prevent unauthorised access to production facilities.

No unauthorised activity.


No unauthorised activity.

11.0 Minimise impact of emergency situations.

Emergency response procedures are effectively implemented in the event of an emergency.


No emergency situations occurred.

11.1 To minimise the impact as a result of an emergency situation or incident.

Emergency response exercises are aligned with credible threats and consequences identified in the risk assessment.


11.2 To restore any damage that may occur as a result of an emergency situation.


Management System Audits

Pursuant to Regulation 33(2) (d) under the Act, an annual report must include:

“a summary of any management system audits undertaken during the relevant licence year including information on any failure or deficiency identified by the audit and any corrective actions that has, or will be taken”.

No management system audits undertaken.

Report and Data Submissions

Pursuant to Regulation 33(2) (e) under the Act, an annual report must include:

“a list of all report and data relevant to the operation of the Act generated by the licensee during the licence year”.



Table 6 List of report and data submissions during current licence reporting year

Description of Report/Data Date Due Date

Submitted Compliant /

Non-Compliant

Thunderchief-1 Final Well Logs 3/05/2012 Compliant

Tigercat-2 Final Well Logs 13/06/2012 7/06/2012 Compliant

Jaguar-1 Well Completion Report 15/06/2012 15/06/2012 Compliant

Jaguar-1 End of Well Drilling Report (hard copy) - 26/07/2012 Compliant

Email Report Files for WCR for Spitfire-1 6/08/2012 6/08/2012 Compliant

Application for AAL for Spitfire Well Locations - 16/08/2012 Compliant

Growler Designated Campsite & Yard - Addendum to Activity Notification

- 14/09/2012 Compliant

Thunderchief-1 Well Completion Report 26/09/2012 21/09/2012 Compliant

Kanowana 3D Seismic Program - Initial Activity Notification


Kanowana Seismic Program - Shape file - 4/10/2012 Compliant

HSSE Bridging Document and letter confirming new seismic program name


Spitfire-2 Activity Notification for Drilling 10/10/2012 Compliant

Snatcher (now Lignum) 3D Activity Notification - Enviro Assessment and Enviro Management Plan


Revised Snatcher (now Lignum) Seismic HSSE Bridging document


Advice of name change to Lignum 3D Seismic Program


Tigercat-2 Well Completion Report 26/10/2012 25/10/2012 Compliant

Amended Spitfire-2 Drilling Activity Notification Documents


Management of Change Document for Lignum 3D Survey


PEL 104 Annual Report Year 3 28/06/12* 16/11/2012 Compliant

WAC Report - Spitfire-2 - 27/11/2012 Compliant

Completion Program Spitfire-2 - 10/12/2012 Compliant

IPT Program & IPT Operations Plan for Spitfire-2 (part of Completion)


Spitfire-2 IPT Layout & Confirmation that IPT equipment is FFP


Daily Drilling Reports for Spitfire-2

12 hrs after end of daily

reporting period

Daily Compliant

Spitfire-2 Well Logs 17/01/2013 14/01/2013 Compliant

Spitfire-2 CBL 18/02/2013 23/01/2013 Compliant

Spitfire-3 Drilling Initial Activity Notification - 25/01/2013 Compliant



Description of Report/Data Date Due Date

Submitted Compliant /

Non-Compliant

Spitfire-2 Downhole Schematic 17/03/2013 5/02/2013 Compliant

Spitfire-2 CBL – resubmission - 5/02/2013 Compliant

Spitfire-3 Drilling Complete Activity Notification - 12/02/2013 Compliant

Spitfire-2 EPT Application - 22/03/2013 Compliant

Spitfire-2 EPT Commissioning Documentation - 24/03/2013 Compliant

Missing Lignum Seismic Survey Reports (final 3 reports)

25/03/2013 Compliant

Map and Photos of proposed central soil rehab site (growler)


*It was agreed between DMITRE and Senex that the submission of the Year 3 Annual Report on 16/11/12 would not be recorded as non-compliance due to confusion surrounding the reporting period and due dates for this licence.

Incidents

Pursuant to Regulation 33(2) (f), an annual report must include:

“in relation to any incidents reported to the Minister under the Act and these Regulations during the relevant licence year –

(i) an overall assessment and analysis of the incidents, including the identification and analysis of any trends that have emerged; and

(ii) an overall assessment of the effectiveness of any action taken to rectify non-compliance with obligations imposed by the Act, these regulations or the licence, or to minimise the risk of recurrence of any such non-compliance”.

Table 7 List of incidents during current licence reporting year

Threat Prevention

Pursuant to Regulation 33(2) (g) under the Act, an annual report must include:

“a report on any reasonably foreseeable threats (other than threats previously reported on) that reasonably presents, or may present, a hazard to facilities or activities under the licence, and a report on any corrective action that has, or will be taken”.

Date of Incident

Activity Incident

Description Type of

Loss

Action to Rectify and Effectiveness of

Action

Date Reported/

Reported to Whom

18 March

2013

Environmental

- Oil Spill

(Spitfire-2)

During a routine

inspection, a patch

of crude was noted

under the Spitfire-2

load out line.

Estimated spill was

20 litres.

DMITRE

Reportable

Site Supervisor at Growler Facility was notified and a team was dispatched to recover the spill and reinstate the site.

18 Mar 2013/ HSE



Operations within PEL 104 are vulnerable to heavy rain events and major flooding of the Cooper Creek system and the only foreseeable threat to operations around the Growler (and future) fields.

The progress of any flood events in the Queensland headwaters of the Cooper Creek is closely monitored by satellite surveillance to predict the time of their arrival in the area. The PRL 15 (Growler) Flood Management Plan can be applied to PEL 104.

Future Work Program

Pursuant to Regulation 33(2) (h) under the Act, an annual report must include:

“unless the relevant licence year is the last year in which the licence is to remain in force – a statement outlining operations proposed for the ensuing year”.

Table 8 Future work program by licence year for term

Area of Activity Minimum Work Program Actual Work Commencement

Date

Drilling and related

activities One well

Drill Spitfire-3 & 4 and

Marauder-1

Q4 2013/

Q1 2014

Seismic data and

acquisitions - - -

Seismic data processing

and reprocessing -

Processing of Lignum 3D

Seismic Survey (316 km²) Ongoing

Production and

Processing - Spitfire-2 EPT Ongoing

Geochemical, Gravity,

Magnetics and other

surveys

- - -

Pipeline Construction and

Operation - - -

Geological and

Geophysical studies -

Geological & Geophysical

studies Ongoing



5 EXPENDITURE STATEMENT

Pursuant to Regulation 33(3) under the Act, an annual report must contain:

“An annual report must be accompanied by a statement of expenditure on regulated activities conducted under the licence for the relevant licence year, showing expenditure under each of the following headings:

a) drilling activities;

b) seismic activities;

c) technical evaluation and analysis;

d) other surveys;

e) facility construction and modification;

f) operating and administration expenses (not already covered under another heading)”.

Please refer to Appendix 1 for the expenditure statement for the current reporting period.