final government response...introduction australia’s regulatory regime for offshore petroleum...
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FINAL GOVERNMENT RESPONSETO THE REPORT OF
THE MONTARA COMMISSION OF INQUIRY
© Commonwealth of Australia 2011
ISBN 978-1-921812-36-1 (paperback)ISBN 978-1-921812-37-8 (online PDF)
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and enquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney-General’s Department, National Circuit, Barton ACT 2600 or posted at http://www.ag.gov.au/cca
For more information about this report please contact:
ManagerMedia and CommunicationsDepartment of Resources, Energy and TourismGPO Box 1564Canberra ACT 2601Telephone: + 61 2 6276 7003Facsimile: + 61 2 6243 7037Email: [email protected]
Produced by the Department of Resources, Energy and Tourism
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Contents
Executive Summary 2
Introduction
Australia’s Regulatory regime for offshore petroleum activities
Oil Spill Response Management
The Montara Incident
Summary of the Report of the Montara Commission of Inquiry
Draft Response to the Report of the Montara Commission of Inquiry
Final Response to the Report of the Montara Commission of Inquiry
Commonwealth Actions addressing the Recommendations of the Report
Actions on the Key Recommendations of the Report
PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEP AA)
Actions of the Northern Territory Designated Authority
International Considerations
Offshore Petroleum Regulatory Reform
Key Actions Undertaken by the Offshore Petroleum Industry
Commonwealth Final Response
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Chapter 3 – The Circumstances and Likely Cause(s) of the Blowout 13
Chapter 4 – The Regulatory Regime: Well Integrity and Safety 57
Chapter 5 – Arresting the Blowout 73
Chapter 6 – Environmental Response 83
Chapter 7 – Review of PTTEP AA’s Permit and Licence at Montara and other Matters 103
Additional Recommendations for Industry – Review of PTTEP Australasia’s Response to the Montara Blowout 109
Implementation Plan – Report of the Montara Commission of Inquiry and the Review of PTTEP Australasia’s Response to the Montara Blowout 113
Appendix 1 - Summary of Stakeholder Submissions on the Commonwealth’s Draft Response 119
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Executive Summary
IntroductionThe 21 August 2009 uncontrolled oil and gas release at the Montara oil field, operated by PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEP AA), and the more recent incident on 20 April 2010 at the BP-operated Macondo oil field in the Gulf of Mexico, where 11 lives were lost, serve as strong reminders to governments, regulators, the offshore petroleum industry and the broader community of the risks of complacency in the operation and regulation of offshore petroleum activities.
The Commonwealth Government (the Commonwealth) has moved quickly to learn the lessons from the Montara and Gulf of Mexico incidents and is working to improve the protection of human health and safety and the protection of the marine environment so as to ensure that Australia continues to have a safe, strong and competitive offshore petroleum industry which is able to contribute to Australia’s ongoing energy security and economic prosperity, and that of our major trading partners.
Australia’s regulatory regime for offshore petroleum activitiesOffshore petroleum operations beyond the designated state and territory coastal waters (three nautical mile baseline to 200 nautical miles of Australia’s Exclusive Economic Zone) are governed by the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act) and related regulations.
While ultimate responsibility for Australia’s offshore areas beyond the three nautical miles from the territorial baseline rests with the Commonwealth, the Commonwealth currently jointly administers the regulatory regime and supervises offshore petroleum industry activities with the State and Northern Territory governments through a Joint Authority/Designated Authority arrangement. The establishment of the single national regulator will see the proposed National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) become the regulator for all offshore petroleum activities beyond three nautical miles from the territorial sea baseline. In addition, under this model, the States and Northern Territory will be able to confer powers for the regulation of offshore petroleum activities under their respective legislation to NOPSEMA for coastal waters (ie up to the three nautical mile limit).
In 1991, in responding to The Public Inquiry into the Piper Alpha Disaster by the Hon Lord Cullen, the Commonwealth made a policy decision to implement the key outcomes of that report, in particular that a safety case regime be adopted and new performance/objective-based regulations be developed to replace the then prescriptive regulations. Today, Australia’s regime is largely a performance/objective-based regime, in which the operator of an offshore facility is responsible for the safe and effective operation of the petroleum facility.
An important feature of objective-based regulation is that it encourages continuous improvement rather than a compliance mentality. The Australian objective-based regime places the onus on the industry to ensure and demonstrate to regulators that the risks of an incident relating to oil and gas operations are reduced to ‘as low as reasonably practicable’. The regime ensures flexibility in operational matters to meet the unique nature of differing projects, and avoids a ‘lowest common denominator’ approach to regulation that can be observed in a prescriptive regime. The objective-based regime is not self-regulation by industry, as industry must demonstrate to regulators – and regulators must assess and approve or not approve – that it has reduced the risks of an incident to ‘as low as reasonably practicable’ in order to conduct operations.
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It is essential that a regulatory system encourage the creator of the risk to move beyond minimum standards in a continuous effort for improvement, and not just accept the minimum standard.
The risk of specific standards is that they can shift the burden of responsibility from the operator to the government and stifle innovation. The Australian objective-based regime seeks to maintain clarity that the operator is responsible for evaluating risk and achieving fit-for-purpose design that reduces risk to ‘as low as reasonably practicable’. Prescriptive-based regulation focuses on minimum compliance, requires frequent amendment and relies heavily on the ability of legislative drafters to understand and anticipate the risks and operational environment of the industry.
Until late April 2011, the structural integrity-related regulatory functions for offshore petroleum activities were exercised pursuant to the Petroleum (Submerged Lands) (Management of Well Operations) Regulations 2004 and the Offshore Petroleum and Greenhouse Gas Storage (Safety) Regulations 2009 (Safety Regulations) and were fulfilled by:
• Designated Authorities assessing Well Operations Management Plans (WOMPs) and applications to conduct well activities in order to ensure that well operations were conducted in accordance with sound engineering principles and good oil field practice.
• The National Offshore Petroleum Safety Authority (NOPSA) assessing and challenging the facility operator’s safety cases and seeking through oversight to ensure that occupational health and safety risks were properly managed by the operator.
In November 2010, the Offshore Petroleum and Greenhouse Gas Storage Legislation Amendment (Miscellaneous Measures) Act 2010 extended the functions and powers of NOPSA to include non-occupational health and safety aspects of structural integrity for petroleum facilities, wells and well-related equipment in Commonwealth waters, in addition to its existing occupational health and safety-related functions and powers under the OPGGS Act and the Safety Regulations.
This amendment in effect provides NOPSA with regulation and oversight of the whole of structural integrity of petroleum facilities (including pipelines), wells and well-related equipment in Commonwealth waters. This includes assessment of WOMPs and individual well activities. This responsibility is given effect through the Offshore Petroleum and Greenhouse Gas Storage (Resource Management and Administration) Regulations 2011.
These amendments have addressed the issues arising from the Montara incident in respect of wells operation approvals, compliance and monitoring.
Commonwealth, state and territory governments require petroleum companies operating in state/territory waters to conduct their activities in a manner that meets a high standard of environmental protection.
The OPGGS Act contains a broad requirement for titleholders to operate in accordance with ‘good oil field practice’. Specific environmental provisions relating to work practices require operators to control and prevent the escape of wastes and petroleum. The OPGGS Act also requires activities to be carried out in a manner that does not interfere with other rights, including the conservation of the resources of the sea and seabed.
Key objectives of the Environment Regulations under the OPGGS Act include encouraging industry to:
• continuously improve its environmental performance;
• adopt best practice to achieve agreed environment protection standards in industry operations; and
• ensure operations are carried out in a way that is consistent with the principles of ecologically sustainable development.
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Australia’s national environment law, the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), also plays a key role in the regulation of offshore petroleum activities. The EPBC Act establishes a national approach to the protection and conservation of Australia’s environment, and sets out a regulatory framework to protect those aspects of the environment considered to be matters of national environmental significance (NES), which includes the Commonwealth marine area.
Offshore petroleum activities that are likely to significantly impact NES matters require assessment under the EPBC Act and approval by the Environment Minister. The Environment Minister may attach conditions to an approval to protect, repair or mitigate damage to NES matters. The EPBC Act includes a wide range of coercive powers as well as criminal, civil and administrative sanctions for breaches of the Act.
Oil Spill Response ManagementAustralia is a State Party to both the International Convention on Oil Pollution Preparedness, Response and Cooperation 1990 and the Protocol on Preparedness, Response and Cooperation to Pollution Incidents by Hazardous and Noxious Substances (HNS) 2000. These conventions require Parties, individually or jointly, to take all appropriate measures in accordance with their provisions to prepare for and respond to a pollution incident by oil and HNS. Since October 1973, Australia has had in place a pre-planned national strategy to respond to marine spills. The original strategy dealt only with oil spills and was known as the National Plan to Combat Pollution of the Sea by Oil. In April 1998, the strategy was extended to deal with the response to maritime chemical spills in Australian waters and is now the National Plan to Combat Pollution of the Sea by Oil and other Noxious and Hazardous Substances, more commonly known as the ‘National Plan’.
The National Plan is a national integrated government and industry organisational framework enabling effective preparedness and response to marine pollution incidents. On behalf of the Commonwealth, the Australian Maritime Safety Authority (AMSA) manages the National Plan, working with State/Northern Territory governments and the shipping, oil, exploration and chemical industries and emergency services to maximise Australia’s marine pollution response capability. The aim of the National Plan is to protect the community and the environment of Australia’s marine and foreshore zones from the adverse effects of oil and other noxious or hazardous substances. It also aims to minimise those effects where protection is not possible.
Under the National Plan, AMSA has responsibility for the response effort, as the Combat Agency, where an incident takes place in Commonwealth waters (more than three nautical miles from the coastline). This responsibility involves:
• management and application of the National Oil and Chemical Contingency Plans;
• fixed wing aerial dispersant spraying of the spill site;
• maintenance of the oil spill response equipment stockpiles at the Australian Marine Oil Spill Centre (AMOSC);
• leadership of the National Response Team;
• provision of on-site advice during the incident in the role of the Combat Agency;
• facilitation of training programs in relation to spill response, research and development and oil spill trajectory modelling; and
• reviewing and reporting of incident responses and field exercises.
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A comprehensive assessment and strengthening of the National Plan has been instigated by AMSA. This work, to be completed by the end of 2011, will consider Australia’s marine oil and HNS spill preparedness and response capability and the National Maritime Emergency Response Arrangements (NMERA), which includes emergency towage capability. The aim of the work is to determine if current arrangements are adequate to provide an effective response to marine casualties and pollution of the sea by oil and HNS, and where deficiencies are identified, make recommendations to rectify them. It will provide an analysis of accountabilities, roles and resources required to meet the needs of AMSA and its National Plan/NMERA stakeholders for marine casualties and marine oil/HNS spill preparedness and response. The review will also provide details on the gaps in response preparedness and capabilities and any efficiencies that can be gained through improvements, as well as recommendations for the enhancement of the preparedness and response regime currently in place in Australia.
The Montara IncidentOn Friday 21 August 2009, during activity being undertaken by the West Atlas jack-up drilling rig operated by Atlas Drilling, a hydrocarbon release was observed from the H1-ST1 well through the Montara Wellhead Platform at 0530 (WST). On 14 September 2009, work commenced on drilling a relief well. On 1 November 2009, a fire broke out on the West Atlas drilling rig and the Montara Wellhead Platform after the West Triton, which was drilling a relief well, successfully intercepted the leaking well on the fifth attempt. On 3 November 2009, successful well-kill operations were undertaken, the fire was extinguished and the oil leak was contained.
Summary of the Report of the Montara Commission of InquiryThe Report contains 100 findings and 105 recommendations which have implications for governments, regulators and the operational processes and procedures of the offshore petroleum industry. It addresses the likely causes of the incident, the adequacy and effectiveness of the regulatory regime for offshore petroleum (including safety and environmental management), the level of compliance with legislative obligations, adequacy of the incident response by governments and the offshore petroleum industry, and the environmental impacts of the incident.
Chapter 3 The Circumstances and Likely Causes of the Blowout
Chapter 3 of the Report specifically focuses on the circumstances and technical causes of the Montara incident. The Report identifies ‘direct causes’ and ‘systemic contributory factors’. The chapter also considers employee competency and the level of compliance by technical staff with the regulatory obligations for well activity.
The Report concluded that the source of the blowout was largely uncontested and was a result of the primary well control barrier failing. The Report further notes that initial cementing problems were compounded by the fact that only one of the two secondary well control barriers – pressure containing anti-corrosion caps – was installed.
Chapter 4 The Regulatory Regime: Well Integrity and Safety
Chapter 4 of the Report concludes that the existing regulatory regime supporting offshore petroleum activities provides sufficient powers to the regulator to enable the effective monitoring and enforcement of offshore petroleum-related operations. The inadequacies identified by the Inquiry primarily relate to the implementation of this regime.
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Despite the deficiencies in the administration by the Northern Territory Department of Resources (DoR) of its Designated Authority functions, the Report concluded that the incident could have been avoided if PTTEP AA had adhered to the well control practices approved by the regulator and its own well construction standards.
The Report recommended pursuing regulatory reform through the establishment of a single, independent regulatory body looking after safety as a primary objective, well integrity and environmental management. The Commonwealth notes that the performance/objective-based regulatory regime will be further enhanced by the establishment of a single national regulator for offshore petroleum, mineral and greenhouse gas storage activities.
Chapter 5 Arresting the Blowout
Chapter 5 of the Report concludes that, in considering the initial response to the incident at the Montara Wellhead Platform and the steps taken by all parties involved in arresting blowout, it commends the response efforts by PTTEP AA and AMSA as the Combat Agency, NOPSA as the offshore petroleum safety regulator, and the former Department of Environment, Water, Heritage and the Arts (now the Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC)) as the environmental regulator.
The Report does however recommend changes to the Commonwealth’s response to future incidents involving the offshore petroleum industry under the National Plan. The recommendations are aimed at improving the operation of the National Plan, including matters regarding the environmental response to future incidents. It has also recommended there be greater clarity regarding the roles and responsibilities of agencies in responding to future incidents under Australia’s current incident response framework, which has been accepted by the Commonwealth. The review of the National Plan is currently underway.
Chapter 6 Environmental Response
Chapter 6 of the Report concludes that the protection and management of the marine environment is critical to the Australian community’s confidence in the ability of the offshore petroleum industry to undertake operations in a safe and environmentally sound manner. The Inquiry considered those matters relating to the impact on, and remediation of, the surrounding environment during and post the response to the uncontrolled oil and gas release at the Montara Wellhead Platform.
The Report notes a lack of clarity regarding the implementation of the ‘polluter pays’ principle for costs associated with both preparedness and response capability for the offshore petroleum industry, as articulated through the National Plan. The Inquiry has recommended amendments to the EPBC Act and the OPGGS Act to reaffirm the Commonwealth’s support of the ‘polluter pays’ principle as it applies to the offshore petroleum industry. Other recommendations made by the Inquiry include the establishment of “off-the-shelf” monitoring programs to be implemented following incidents in Commonwealth waters, and publication of Oil Spill Contingency Plans.
Chapter 7 Review of PTTEP AA’s Permit and Licence at Montara and Other Matters
Chapter 7 of the Report details views regarding the conduct of PTTEP AA in respect of its interaction with the regulators and the Inquiry. The Report concludes that PTTEP AA, as operator of the Montara oil field, did not observe sensible oil field practices and that the company’s widespread and systemic procedural shortcomings were a direct cause of the incident. Specifically the Report recommends that a review should be undertaken of PTTEP AA’s permit and licence to operate through the issuing of a ‘show cause’ notice under the OPGGS Act.
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The Report does note that PTTEP AA provided the Commission of Inquiry with a Montara Action Plan to address the technical and governance issues identified through the Inquiry process. The Montara Action Plan was also provided to the Commonwealth Minister for Resources and Energy. The Commissioner noted it was “comprehensive and impressive”.
Draft Response to the Report of the Montara Commission of InquiryOn 24 November 2010, the Commonwealth released the Report of the Montara Commission of Inquiry (the Report) and the Commonwealth’s draft response to the Report’s 105 recommendations. The Commonwealth’s draft response was also informed by the incident in April 2010 at the BP-operated Macondo oil field in the Gulf of Mexico.
In the draft response, the Commonwealth outlined its policy direction and draft position regarding the Commissioner’s recommendations and findings. In respect of the 105 recommendations made by the Commissioner, the Commonwealth proposed accepting 92 recommendations, noting 10 and not accepting three. In ensuring that the final response was achievable and considered both community expectations and current industry operating practices, a comprehensive three-month stakeholder and community consultation period was initiated on the draft response. Seventeen submissions (including three that were confidential and one that was not relevant to the draft response) were received from governments, industry and environmental stakeholders, with the non-confidential submissions published on the Montara Inquiry Response website.
In general the submissions were positive and demonstrated broad support for the Commonwealth’s draft response to the majority of the 105 recommendations. The key issues identified by the submissions specifically related to industry operations (both technical and procedural). A summary of the submissions is included as an Appendix to the final response.
Final Response to the Report of the Montara Commission of InquiryThis document sets out the Commonwealth’s final response to the Report of the Montara Commission of Inquiry. The final response remains similar with 92 recommendations accepted, including two amended to “accepted in principle”, 10 noted and three not accepted due to being technically inappropriate.
While the Commonwealth’s position is consistent with its draft response to the Report, the changes to the final response reflect the information received in submissions from government, industry and environmental stakeholders. These changes provide greater clarification to the draft response, specifically in regards to the industry-related recommendations, and outline the Commonwealth’s implementation activities since the release of its draft response.
The findings and recommendations of the Report of the Montara Commission of Inquiry are just one element of the Commonwealth’s broader reform agenda for Australia’s offshore petroleum industry.
In addition to the implementation of the accepted recommendations of the Report, the Commonwealth continues to move forward in establishing a single national regulator for all offshore petroleum activities in Commonwealth waters.
The “Review of PTTEP Australasia’s Response to the Montara Blowout” report, which was released by the Minister for Resources and Energy on 4 February 2011, made numerous recommendations specific to PTTEP AA which are being implemented by the company. The report also identified a series of lessons arising from the Montara incident that may have relevance to the offshore petroleum industry. The lessons identified reflect internationally recognised themes supporting good governance and best
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practices, and are to be continually considered and implemented through education and development by the industry, its representative bodies and the Commonwealth. The Department of Resources, Energy and Tourism (DRET), in conjunction with APPEA, will consider these recommendations as part of the high level International Offshore Petroleum Regulators and Operators Summit scheduled for 10-11 August 2011 and in addition as part of the 2011 APPEA Conference and Exhibition on 10-13 April 2011 and the APPEA Health and Safety Conference on 8-10 August 2011.
The Commonwealth remains firmly committed to improving the protection of human health and safety and the protection of the marine environment to ensure that Australia’ s offshore petroleum industry is the best and safest in the world and is able to contribute to Australia’s ongoing energy security and economic prosperity.
Commonwealth Actions addressing the Recommendations of the ReportThe Commonwealth has taken decisive action, in five key areas as follows, to address the recommendations of the Report of the Montara Commission of Inquiry. Since the release of the Report and the Commonwealth’s draft response on 24 November 2010, the Commonwealth has:
Regulatory Regime
• Amended the OPGGS Act to strengthen the activities of NOPSA and to ensure that well operations are conducted in accordance with good oil field practice. NOPSA’s powers to undertake occupational health and safety inspections have also been expanded to ensure greater levels of monitoring and verification of offshore petroleum titleholders.
• Progressed the Commonwealth’s proposal to establish a single national offshore petroleum regulator for Commonwealth waters by January 2012 by expanding NOPSA’s existing functions to include regulation of environment plans and day-to-day operations. NOPSA will become the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).
• Agreed to separate offshore regulation and titles administration to avoid any potential or perceived conflicts of objectives. Titles administration will be undertaken by a National Offshore Petroleum Titles Administrator (NOPTA) within DRET.
• Agreed to a way forward to provide regulator and industry clarification in respect of when a ship-like petroleum facility transitions from the offshore petroleum regime under the OPGGS Act to the maritime regime under the Navigation Act 1912.
Regulator Operating Practices
• Provided ongoing support to the NT DoR to fully address the deficiencies identified by the Montara Commission of Inquiry in its actions as the Designated Authority under the OPGGS Act. This included a consistent approach to approval, assessment and compliance monitoring of all offshore petroleum activities, until such time as the single national offshore petroleum regulator comes into effect.
• Worked with the Northern Territory Designated Authority to finalise the integrity testing program of the remaining wells at the Montara Wellhead Platform and all of PTTEP’s suspended wells.
• Commissioned a consultancy to develop a National Legislative Compliance Framework to ensure a consistent best practice approach by regulators in the regulation of Australia’s offshore petroleum industry in the areas of well operations, environment and integrity.
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• Issued a Statement of Expectations to the Designated Authorities and NOPSA which sets out the expectations of the Minister for Resources and Energy of these agencies when performing their regulatory duties.
Response Arrangements
• Commenced a review of Australia’s national incident response framework through the National Plan to Combat Pollution of the Sea by Oil and Other Noxious and Hazardous Substances. The review will be completed by the end of 2011.
• Developed a set of principles to inform a framework of equitable cost-sharing arrangements between the shipping and offshore petroleum industries in relation to oil spill preparedness and response capacities.
Environmental Management
• Enhanced environmental assessment processes under the EPBC Act by including 11 week spill scenarios for oil spill modelling for all drilling related actions. The requirement for scientific monitoring and environmental remediation in the event of an accident has been included in approval conditions for oil and gas developments since the Montara incident.
• Conducted a compliance audit of PTTEP AA under the EPBC Act. The outcomes of the audit will be published on the DSEWPaC website.
Review of PTTEP Australasia’s Response to the Montara Blowout
• Commissioned an Independent Review of the PTTEP AA Montara Action Plan. The Independent Review report, “Review of PTTEP Australasia’s Response to the Montara Blowout”, was made public by the Minister for Resources and Energy on 4 February 2011.
• Considered whether to issue a ‘show cause’ notice to PTTEP that could lead to the cancellation of its petroleum titles. In releasing the Independent Review of the PTTEP AA Montara Action Plan, the Minister for Resources and Energy announced that he would not be issuing a ‘show cause’ notice at this time.
• Entered into a binding Deed of Agreement on 22 February 2011 with PTTEP which requires that the Montara Action Plan be implemented in full across all of PTTEP’s Australian operations, and has appointed an independent consultant to conduct an 18-month program to monitor the implementation.
• Attached additional conditions of title to all of PTTEP’s current Australian petroleum titles and any future renewals or granting of offshore petroleum title applications to PTTEP in Australia.
• Worked with all of the Designated Authorities to review the status and integrity of all suspended wells in Commonwealth waters since 2005, to the satisfaction of the Minister for Resources and Energy.
• Incorporated the Commonwealth’s response to the industry recommendations identified in the “Review of PTTEP Australasia’s Response to the Montara Blowout” report, which relate to the areas of acquisition and integration of production assets and governance and oversight, as part of the Commonwealth’s final response to the Report of the Montara Commission of Inquiry.
• Undertaken an investigation into potential non-occupational health and safety breaches of the OPGGS Act with a brief of evidence to be provided to the Commonwealth Director of Public Prosecutions within the first half of 2011.
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Actions on the Key Recommendations of the Report
PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEP AA)
On 4 February 2011, the Minister for Resources and Energy released the report of the Independent Review of the PTTEP AA Montara Action Plan, entitled the “Review of PTTEP Australasia’s Response to the Montara Blowout”. The Independent Review found that the Montara Action Plan effectively responds to the issues identified by the Montara Commission of Inquiry and sets PTTEP AA on the path to achieving industry best practice standards for both good oil field practice and good governance.
In releasing the Independent Review report, the Minister also announced his decision not to issue a ‘show cause’ notice to the company at this time. This decision was subject to a binding Deed of Agreement between the Commonwealth and the Thai-based parent company PTTEP. On 22 February 2011, a Deed of Agreement was signed that formalised the arrangements for the implementation of the Montara Action Plan and an 18-month monitoring program. On 16 March 2011, Noetic Solutions Pty Ltd was engaged to monitor the implementation of the Montara Action Plan.
In addition to the Deed of Agreement, the Minister for Resources and Energy has imposed an additional set of conditions on all of PTTEP’s current Australian petroleum titles and any future renewals or granting of offshore petroleum title applications to PTTEP in Australia.
The Commonwealth also acknowledges the changes to the leadership roles and structures at PTTEP AA and notes the appointment of Mr Ken Fitzpatrick as the new Chief Executive Officer of PTTEP AA. Mr Fitzpatrick, who was formerly the Senior Vice President of Assurance and Controls at Woodside Petroleum Ltd, will oversee the implementation of the Montara Action Plan.
Actions of the Northern Territory Designated Authority
In response to the issues identified in the Report of the Montara Commission of Inquiry regarding the performance of the Northern Territory DoR in discharging its legislative and regulatory obligations as the Commonwealth’s delegated Designated Authority for the offshore area of Ashmore and Cartier Islands, the Northern Territory Government and DoR have implemented changes that provide greater rigour to the way it conducts its offshore petroleum regulatory activities.
The Northern Territory DoR:
• Reviewed and implemented more robust approval assessment processes;
• Implemented a well operation activity approvals co-assessment system with the Western Australian Designated Authority; and
• Recruited petroleum engineers to address the gap in technical expertise.
The Commonwealth through Geoscience Australia and DRET will continue to work closely with the Northern Territory DoR by providing it with assistance in meeting its ongoing regulatory obligations until the establishment of a national offshore petroleum regulator.
International Considerations The Commonwealth has taken note of the actions of the United States (US) Government following the Macondo oil spill in the Gulf of Mexico.
The final report of the US National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling concluded that the Macondo incident could have been prevented, stating that the immediate
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causes were a series of identifiable mistakes made by BP, Halliburton and Transocean and that serious systemic failures were also identified in relation to risk management and the role of the regulator. These findings identify a number of similarities with the failings identified by the Montara Commission of Inquiry and have been considered closely in the development of the Commonwealth’s final response to the Report of the Montara Commission of Inquiry.
Significantly, the National Commission’s report recommends a shift in the US policy position for the regulation of offshore drilling from the current prescriptive model to a less prescriptive, “safety case” approach – similar to that in Australia.
In addition to the findings of the Montara Report, DRET intends to draw upon the findings of US Commission’s Report to form the basis for the scope of the International Offshore Petroleum Regulators and Operators Summit.
The Commonwealth will be hosting an International Offshore Petroleum Regulators and Operators Summit on 10-11 August 2011 in Perth, Western Australia, following the APPEA Health and Safety Conference. The summit is targeting global senior-level policy makers, regulators, industry representatives and leading academics with the aim of developing a common understanding and consistent approach to the regulation of the global offshore petroleum industry.
With representatives from Australia, Brazil, Canada, Norway, the US and the UK and regionally from Indonesia, Timor-Leste and Papua New Guinea, the conference will provide delegates with a forum for the exchange of first-hand experiences and lessons learnt and applied particularly from the Montara and Macondo incidents.
In recognition of the importance of Australia and the US working together to discover and implement the lessons from both the Montara and Macondo incidents, the Commonwealth was a participant at the 14 April 2011 high-level US Ministerial Forum on Offshore Drilling Containment that was hosted by the US Secretary of the Interior in Washington DC.
Offshore Petroleum Regulatory Reform The Commonwealth remains committed to the establishment of a national regulator for offshore petroleum activities by January 2012, as recommended by the Productivity Commission’s Review of Regulatory Burden on the Upstream Petroleum (Oil & Gas) Sector (PC Review). The Commonwealth’s final response to the PC Review will be released during 2011.
In recognition of the fundamental connection between the integrity of wells and structures, the safety of people and the protection of the environment, the Commonwealth will further expand the functions of NOPSA to become NOPSEMA.
NOPSEMA will become the regulator for all offshore petroleum activities in Commonwealth waters beyond three nautical miles from the territorial sea baseline. In addition to NOPSA’s current regulatory functions, NOPSEMA will assume responsibility for environmental approvals, including Oil Spill Contingency Plans under the OPGGS Act. NOPSEMA will also regulate safety, integrity and environment plans for minerals extraction and greenhouse gas storage activities in Commonwealth waters.
AMSA will work with NOPSEMA to develop agreed arrangements to review Oil Spill Contingency Plans. The procedural framework supporting the agreed arrangements will be developed by DRET and AMSA in consultation with DSEWPaC.
NOPTA will be established within DRET to administer titles and data relating to offshore petroleum, minerals and greenhouse gas storage activities in Commonwealth waters.
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In addition, under the Commonwealth’s model for NOPSEMA and NOPTA, the legislation will also allow State and Northern Territory jurisdictions to confer powers for the regulation of offshore petroleum activities under their respective legislation to NOPSEMA and NOPTA for the coastal waters (up to the three nautical mile limit).
Legislative amendments to implement this institutional reform will be introduced into the Australian Parliament during the Winter sitting period from May–June 2011. The reforms reflect extensive consultation with jurisdictions, industry and NOPSA and are supported by the offshore petroleum industry.
Key Actions undertaken by the Offshore Petroleum IndustryThe offshore petroleum industry understands that in order to maintain its social licence to operate, it must put the safety of workers and the environment first as part of the responsible development of natural resources. The industry must be front and centre in the development of new international standards around the deployment of equipment and the competencies and training of personnel in safety-critical roles.
Australia’s offshore petroleum industry has taken significant steps since the Montara incident.
Petroleum companies have individually and collaboratively comprehensively reviewed their prevention and response operations and procedures. Companies have conducted forensic analyses of well design, integrity and operations, and have reviewed oil spill response capacities and preparedness, and blowout contingency plans.
Industry has also reviewed accepted drilling practices, including the processes and procedures relating to the identification and reduction of risk, and for performance monitoring and assurance. In addition, industry has conducted a detailed analysis of all critical rig equipment and verified preventive maintenance requirements and integrity assessments.
Industry bodies such as the Australian Petroleum Production & Exploration Association (APPEA) are leading the industry through safety programs and best practice standards. As part of a strategic overhaul of collaborative safety leadership and strategy for the Australian oil and gas industry, APPEA’s Health, Safety and Operations Committee has endorsed a new Safety Strategy for the Australian oil and gas industry. The strategic priorities include Safety Culture and Leadership; Process Safety; Structural and Asset Integrity; Emergency Management; Skills & Competence; Contractor Engagement; and Sharing Lessons and Good Practice. The Safety Strategy is due to be finalised by the end of 2011.
Industry, through APPEA’s Montara Response Taskforce, has also identified a number of key tasks to implement the lessons from the Montara and Macondo incidents. These include a self-audit tool for the management of well operations; an agreed Australian industry position on cap and containment procedures; development of a mutual aid agreement; and a set of agreed strategies for oil spill response and preparedness. Industry also continues to promote training workshops and initiatives.
Commonwealth Final ResponseThe following chapters provide the Commonwealth’s final response to the Report of the Montara Commission of Inquiry recommendations and to the nine recommendations that were made by Noetic Solutions Pty Ltd in the “Review of PTTEP Australasia’s Response to the Montara Blowout” that may have relevance to the offshore petroleum industry.
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Chapter 3 of the Montara ReportThe Circumstances and Likely Cause(s) of the Blowout
Chapter 3 of the Report – The Circumstances and Likely Cause(s) of the Blowout focuses on the circumstances and technical causes of the Montara incident. The chapter contains 65 of 105 recommendations.
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ter s
houl
d ap
poin
t a s
enio
r pol
icy
advi
ser t
o Ac
cept
ed.
On 1
5 Ju
ly 2
010,
the
Min
iste
r for
Res
ourc
es a
nd E
nerg
y in
vest
igat
e an
d re
port
on
the
best
mea
ns to
impl
emen
t ta
sked
the
Secr
etar
y of
DRE
T w
ith th
e re
spon
sibi
lity
for
the
reco
mm
enda
tions
con
tain
ed in
this
Cha
pter
.co
mm
issi
onin
g th
e pr
epar
atio
n of
a C
omm
onw
ealth
re
spon
se to
the
Repo
rt.
The
Secr
etar
y es
tabl
ishe
d th
e M
onta
ra R
espo
nse
Team
in th
e Re
sour
ces
Divi
sion
of D
RET
to p
rogr
ess
the
Com
mon
wea
lth’s
resp
onse
to th
e Re
port
and
giv
e ef
fect
to th
e Re
port
’s re
com
men
datio
ns a
s ap
prop
riate
.
On 2
4 N
ovem
ber 2
010,
the
Com
mon
wea
lth’s
draf
t re
spon
se to
the
Repo
rt w
as re
leas
ed. T
he d
raft
re
spon
se a
ccep
ted
92, n
oted
10
and
did
not a
ccep
t th
ree
of th
e Re
port
’s 10
5 re
com
men
datio
ns.
15
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
2W
OMPs
sub
mitt
ed b
y lic
ense
es to
the
regu
lato
r(s)
shou
ld c
ontin
ue to
be
the
prim
ary
fram
ewor
k do
cum
ent f
or a
chie
ving
wel
l int
egrit
y.
Acce
pted
.
This
reco
mm
enda
tion
is c
onsi
sten
t with
exi
stin
g pr
actic
e. In
acc
orda
nce
with
the
exis
ting
regi
me
unde
r the
Off
shor
e Pe
trol
eum
and
Gre
enho
use
Gas
Stor
age
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n)
Regu
latio
ns 2
011,
the
Wel
l Ope
ratio
ns M
anag
emen
t Pl
an (W
OMP)
is th
e pr
imar
y do
cum
ent f
or th
e ap
prov
al
and
man
agem
ent o
f wel
l ope
ratio
ns a
nd in
tegr
ity.
The
WOM
P de
mon
stra
tes
how
an
oper
ator
will
sa
fely
man
age
the
lifec
ycle
of a
wel
l/fiel
d an
d re
fers
to
oth
er k
ey d
ocum
ents
from
the
Oper
ator
’s Sa
fety
M
anag
emen
t Sys
tem
that
set
out
sta
ndar
ds a
nd
proc
edur
es fo
r the
man
agem
ent o
f wel
l ope
ratio
ns
and
inte
grity
. Thi
s al
low
s in
dust
ry to
targ
et o
pera
tiona
l st
anda
rds
to a
par
ticul
ar w
ell b
eing
dril
led.
The
requ
irem
ent f
or a
WOM
P w
as in
trod
uced
und
er
the
Com
mon
wea
lth’s
polic
y of
est
ablis
hing
an
obje
ctiv
e-ba
sed
petr
oleu
m re
gula
tory
regi
me.
An o
bjec
tive-
base
d re
gim
e al
low
s fo
r pro
cess
es a
nd
proc
edur
es to
be
chan
ged
in re
spon
se to
tech
nolo
gy
deve
lopm
ent a
nd p
rovi
des
flexi
bilit
y fo
r ind
ustr
y to
im
plem
ent c
ontin
uous
impr
ovem
ent w
hile
adh
erin
g to
le
gisl
ativ
e pr
inci
ples
.
The
Com
mon
wea
lth h
as c
omm
issi
oned
a c
onsu
ltanc
y to
dev
elop
a N
atio
nal L
egis
lativ
e Co
mpl
ianc
e Fr
amew
ork
(NLC
F) to
dev
elop
a c
onsi
sten
t bes
t pr
actic
e ap
proa
ch to
be
used
by
regu
lato
rs in
thei
r re
gula
tion
of A
ustr
alia
’s of
fsho
re p
etro
leum
indu
stry
in
the
area
s of
wel
l ope
ratio
ns, e
nviro
nmen
t and
in
tegr
ity. T
he N
LCF
will
be
com
plet
ed in
the
seco
nd
half
of 2
011.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
sider
atio
n of
all
Com
mon
wea
lth le
gisla
tion
appl
icab
le to
the
mar
ine
envi
ronm
ent a
nd o
ffsh
ore
petr
oleu
m le
gisla
tion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pet
role
um le
gisla
tive
regi
me
as id
entifi
ed
thro
ugh
the
Mon
tara
Com
miss
ion
of In
quiry
and
ot
her r
elev
ant r
epor
ts a
s ap
prop
riate
. Thi
s pr
oces
s w
ill a
lso h
ave
rega
rd to
the
Offs
hore
Pet
role
um a
nd
Gree
nhou
se G
as S
tora
ge A
ct 2
006
(OPG
GS A
ct) a
nd
asso
ciat
ed re
gula
tions
; the
Env
ironm
ent P
rote
ctio
n an
d Bi
odiv
ersit
y Con
serv
atio
n Ac
t 199
9 (E
PBC
Act)
and
asso
ciat
ed A
cts;
the
Prot
ectio
n of
the
Sea
Acts
, the
N
avig
atio
n Ac
t 191
2 an
d re
leva
nt in
tern
atio
nal t
reat
ies.
The
Com
mon
wea
lth w
ill a
lso
cons
ider
if e
lem
ents
of
the
prev
ious
ly le
gisl
ated
Sch
edul
e of
Spe
cific
Re
quire
men
ts a
s to
Offs
hore
Pet
role
um E
xplo
ratio
n an
d Pr
oduc
tion
shou
ld b
e in
corp
orat
ed in
to th
e Of
fsho
re
Petr
oleu
m a
nd G
reen
hous
e Ga
s Sto
rage
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n) R
egul
atio
ns 2
011.
16
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
3W
OMPs
sho
uld
be c
ompr
ehen
sive
and
free
stan
ding
, ra
ther
than
an
over
arch
ing
docu
men
t cro
ss-
refe
renc
ing
man
y ot
her d
ocum
ents
(alth
ough
the
Inqu
iry a
lso
reco
mm
ends
a fr
eest
andi
ng w
ell c
ontr
ol
man
ual;
this
sho
uld
be a
gui
de to
rig
and
onsh
ore
pers
onne
l on
good
oilfi
eld
prac
tice)
.
Not
ed.
In a
ccor
danc
e w
ith th
e re
gim
e un
der t
he O
ffsh
ore
Petr
oleu
m a
nd G
reen
hous
e Ga
s Sto
rage
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n) R
egul
atio
ns 2
011
and
acce
pted
indu
stry
pra
ctic
e, th
e W
OMP
is th
e pr
inci
pal d
ocum
ent f
or th
e ap
prov
al a
nd m
anag
emen
t of
wel
l ope
ratio
ns a
nd in
tegr
ity.
The
WOM
P de
mon
stra
tes
how
an
oper
ator
will
sa
fely
man
age
the
lifec
ycle
of a
wel
l/fiel
d an
d re
fers
to
oth
er k
ey d
ocum
ents
from
the
Oper
ator
’s Sa
fety
M
anag
emen
t Sys
tem
.
The
Com
mon
wea
lth c
onsi
ders
that
a fr
ee-s
tand
ing
docu
men
t on
the
drill
ing
rig w
ould
not
add
val
ue to
th
e op
erat
or’s
proc
ess
or e
nhan
ce o
pera
tiona
l saf
ety.
The
Com
mon
wea
lth n
otes
that
it is
acc
epte
d in
dust
ry
prac
tice
to m
aint
ain
a dr
illin
g op
erat
ion
man
ual
cove
ring
all a
spec
ts o
f dril
ling,
com
plet
ion
and
wel
l co
ntro
l act
iviti
es o
n th
e rig
. Thi
s m
anua
l is
cons
ider
ed
by th
e Re
gula
tor a
s pa
rt o
f the
wel
l app
rova
ls a
nd
man
agem
ent p
roce
ss.
17
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
4Th
e co
ncep
t of ‘
good
oilfi
eld
prac
tice’
sho
uld
be
supp
lem
ente
d by
the
requ
irem
ent t
o in
corp
orat
e in
to W
OMPs
non
-exh
aust
ive
min
imum
com
plia
nce
stan
dard
s in
rela
tion
to w
ell c
ontr
ol: f
or e
xam
ple,
st
ipul
atio
ns a
s to
whe
n BO
Ps a
nd/o
r wel
l con
trol
sy
stem
s m
ust b
e in
pla
ce a
nd w
hen
they
can
be
rem
oved
and
min
imum
bar
rier r
equi
rem
ents
(a n
umbe
r of
oth
er fa
ctor
s th
at s
houl
d be
stip
ulat
ed a
re o
utlin
ed
in o
ther
reco
mm
enda
tions
bel
ow).
Acce
pted
.
Whi
le th
is is
prim
arily
a m
atte
r for
indu
stry
and
the
Regu
lato
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld
be a
ppro
pria
te fo
r ind
ustr
y an
d th
e Re
gula
tor t
o ap
ply
this
reco
mm
enda
tion
in a
ppro
pria
te c
ircum
stan
ces.
How
ever
, the
Com
mon
wea
lth c
onsi
ders
that
min
imum
co
mpl
ianc
e st
anda
rds
in re
latio
n to
dril
ling
and
prod
uctio
n sh
ould
not
be
incl
uded
in th
e W
OMP.
The
WOM
P is
the
prin
cipa
l doc
umen
t for
the
appr
oval
an
d m
anag
emen
t of w
ell o
pera
tions
and
inte
grity
. Th
e W
OMP
dem
onst
rate
s ho
w a
n op
erat
or w
ill s
afel
y m
anag
e th
e lif
ecyc
le o
f a w
ell/fi
eld.
It re
fere
nces
oth
er
key
docu
men
ts fr
om th
e Op
erat
or’s
Safe
ty M
anag
emen
t Sy
stem
that
set
out
sta
ndar
ds a
nd p
roce
dure
s fo
r the
m
anag
emen
t of w
ell o
pera
tions
and
inte
grity
.
Aust
ralia
’s ob
ject
ive-
base
d re
gula
tory
regi
me
allo
ws
for p
roce
sses
and
pro
cedu
res
to b
e ch
ange
d in
re
spon
se to
tech
nolo
gica
l dev
elop
men
t and
pro
vide
s fle
xibi
lity
for i
ndus
try
to im
plem
ent c
ontin
uous
im
prov
emen
t whi
le a
dher
ing
to le
gisl
ativ
e pr
inci
ples
.
As p
art o
f the
bro
ader
con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
pet
role
um le
gisl
atio
n, th
e Co
mm
onw
ealth
will
con
side
r if e
lem
ents
of t
he
prev
ious
ly le
gisl
ated
Sch
edul
e of
Spe
cific
Req
uire
men
ts
as to
Off
shor
e Pe
trol
eum
Exp
lora
tion
and
Prod
uctio
n sh
ould
be
inco
rpor
ated
into
the
Offs
hore
Pet
role
um
and
Gree
nhou
se G
as S
tora
ge (R
esou
rce
Man
agem
ent
and
Adm
inist
ratio
n) R
egul
atio
ns 2
011.
Thi
s pr
oces
s w
ill
also
con
side
r the
defi
nitio
n of
‘goo
d oi
l fiel
d pr
actic
e’.
The
Com
mon
wea
lth h
as a
lso
com
mis
sion
ed a
co
nsul
tanc
y to
dev
elop
a N
atio
nal L
egis
lativ
e Co
mpl
ianc
e Fr
amew
ork
(NLC
F) to
dev
elop
a c
onsi
sten
t be
st p
ract
ice
appr
oach
to b
e us
ed b
y re
gula
tors
in th
eir
regu
latio
n of
Aus
tral
ia’s
offs
hore
pet
role
um in
dust
ry.
The
NLC
F w
ill b
e co
mpl
eted
in th
e se
cond
hal
f of 2
011.
In a
dditi
on th
e Co
mm
onw
ealth
not
es th
at in
dust
ry,
thro
ugh
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool w
hich
pr
ovid
es c
ompa
nies
with
gui
danc
e in
the
man
agem
ent
of w
ell o
pera
tions
, and
an
agre
ed A
ustr
alia
n in
dust
ry
posi
tion
on C
ap a
nd C
onta
inm
ent p
roce
dure
s.
18
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
5W
ell c
onst
ruct
ion
and
man
agem
ent p
lans
sho
uld
incl
ude
prov
isio
n(s)
for r
evie
win
g th
e in
tegr
ity o
f ba
rrie
rs a
t saf
ety-
criti
cal t
imes
or m
ilest
ones
, suc
h as
(i)
prio
r to
susp
ensi
on in
volv
ing
depa
rtur
e of
the
rig
from
the
plat
form
; (ii)
prio
r to
re-e
ntry
of a
wel
l aft
er
susp
ensi
on; (
iii) p
rior t
o re
mov
al o
f any
bar
rier.
Acce
pted
.
Whi
le th
is is
prim
arily
a m
atte
r for
indu
stry
and
the
Regu
lato
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld
be a
ppro
pria
te fo
r ind
ustr
y an
d th
e Re
gula
tor t
o ca
refu
lly c
onsi
der a
dopt
ing
thes
e re
com
men
datio
ns.
The
Com
mon
wea
lth n
otes
that
, pur
suan
t to
Part
5 o
f th
e Of
fsho
re P
etro
leum
and
Gre
enho
use
Gas S
tora
ge
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n) R
egul
atio
ns
2011
, the
se m
atte
rs a
re a
ddre
ssed
in th
e W
OMP.
6W
ell c
onst
ruct
ion
and
man
agem
ent p
lans
, and
dr
illin
g pr
ogra
ms,
shou
ld in
clud
e pr
ovis
ion
for t
estin
g an
d ve
rifyi
ng th
e in
tegr
ity o
f all
barr
iers
as
soon
as
prac
ticab
le a
fter
inst
alla
tion.
19
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
7W
ell c
onst
ruct
ion
and
man
agem
ent p
lans
sho
uld
incl
ude
prov
isio
n fo
r an
inde
pend
ent c
ompl
ianc
e re
view
of w
ell i
nteg
rity
(i) in
the
even
t of s
tipul
ated
tr
igge
rs; a
nd (i
i) at
leas
t onc
e in
the
perio
d be
twee
n pe
rcei
ved
achi
evem
ent o
f wel
l int
egrit
y an
d pr
oduc
tion.
The
inde
pend
ent c
ompl
ianc
e re
view
sho
uld
be u
nder
take
n by
an
expe
rt w
ho is
not
invo
lved
in
the
day-
to-d
ay d
rillin
g op
erat
ions
. Rev
iew
s sh
ould
be
com
plet
ed in
suf
ficie
nt ti
me
to e
nabl
e re
sults
to b
e im
plem
ente
d in
a m
eani
ngfu
l man
ner.
Acce
pted
.
Whi
le th
is is
prim
arily
a m
atte
r for
indu
stry
and
th
e Re
gula
tor,
the
Com
mon
wea
lth c
onsi
ders
that
it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
co
nsid
er a
dopt
ing
this
reco
mm
enda
tion
in a
ppro
pria
te
circ
umst
ance
s.
How
ever
, the
Com
mon
wea
lth c
onsi
ders
that
in
depe
nden
t com
plia
nce
revi
ews
of w
ell c
onst
ruct
ion
and
man
agem
ent p
lans
sho
uld
be u
nder
take
n pr
ior
to s
ubm
issi
on o
f the
wel
l pla
n to
the
Regu
lato
r. Th
e Re
gula
tor m
ay re
quire
a fu
rthe
r com
plia
nce
revi
ew o
f w
ell i
nteg
rity
in th
e ev
ent o
f a s
tipul
ated
trig
ger a
nd/
or p
rior t
o pr
oduc
tion.
The
Com
mon
wea
lth n
otes
that
it is
acc
epte
d in
dust
ry
prac
tice
to h
ave
oper
atio
n an
d m
anag
emen
t pla
ns
revi
ewed
by
qual
ified
indi
vidu
als,
who
can
be
inte
rnal
bu
t are
not
invo
lved
in d
ay-t
o-da
y op
erat
ions
. Fu
rthe
rmor
e, in
dust
ry a
lread
y ha
s in
pla
ce fo
rmal
“M
anag
emen
t of C
hang
e” a
ppro
vals
and
requ
irem
ents
.
Fina
lly, c
onsi
sten
t with
cur
rent
regu
lato
ry
requ
irem
ents
, the
Reg
ulat
or m
ust b
e no
tified
of a
ny
devi
atio
ns fr
om a
n ap
prov
ed W
OMP.
8W
ellb
ore
gas
bubb
ling
shou
ld b
e re
gard
ed a
s a
trig
ger
for i
ndep
ende
nt re
view
of w
ell i
nteg
rity.
Indu
stry
and
re
gula
tors
sho
uld
iden
tify
and
docu
men
t oth
er tr
igge
rs.
Not
Acc
epte
d.
As im
med
iate
wel
l con
trol
act
ion
is re
quire
d in
the
case
of ‘
gas
bubb
ling’
, the
Com
mon
wea
lth b
elie
ves
unde
rtak
ing
an in
depe
nden
t rev
iew
of w
ell i
nteg
rity
wou
ld c
ompr
omis
e sa
fety
by
dela
ying
an
appr
opria
te
resp
onse
.
20
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
9If
a ris
k as
sess
men
t or c
ompl
ianc
e re
view
is tr
igge
red
by th
e ha
ppen
ing
of a
pre
-det
erm
ined
eve
nt, s
peci
fic
cons
ider
atio
n sh
ould
be
give
n to
whe
ther
a ‘h
old
poin
t’ sh
ould
be
intr
oduc
ed s
uch
that
wor
k m
ust c
ease
unt
il th
e pr
oble
m is
reso
lved
(and
the
subj
ect o
f app
ropr
iate
ce
rtifi
catio
n).
Acce
pted
.
Whi
le th
is is
prim
arily
a m
atte
r for
indu
stry
and
the
Regu
lato
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld
be a
ppro
pria
te fo
r ind
ustr
y to
car
eful
ly c
onsi
der
adop
ting
thes
e re
com
men
datio
ns in
app
ropr
iate
ci
rcum
stan
ces.
The
Com
mon
wea
lth n
otes
that
it is
acc
epte
d in
dust
ry
prac
tice
that
any
dev
iatio
n fr
om th
e ap
prov
ed d
rillin
g,
com
plet
ion
or te
stin
g pr
ogra
m b
e co
nsid
ered
thro
ugh
a fo
rmal
“Man
agem
ent o
f Cha
nge”
pro
cess
, whi
ch is
re
port
ed to
the
Regu
lato
r. Th
is pr
oces
s in
corp
orat
es a
n ap
prop
riate
leve
l of r
isk a
sses
smen
t with
hol
d po
ints
and
re
view
s w
here
app
ropr
iate
to th
e ris
k co
ntro
l str
ateg
y.
21
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
10A
sepa
rate
, ide
ntifi
able
bar
rier m
anua
l sho
uld
be
agre
ed u
pon
and
used
by
licen
sees
, rig
ope
rato
rs,
and
cem
entin
g co
ntra
ctor
s. Th
ese
man
uals
sho
uld
set o
ut b
est i
ndus
try
prac
tice
in re
latio
n to
ach
ievi
ng
and
mai
ntai
ning
wel
l int
egrit
y. Th
ey s
houl
d de
scrib
e ba
rrie
r typ
es, b
arrie
r sta
ndar
ds, g
ener
al p
rinci
ples
of
wel
l int
egrit
y, te
stin
g an
d ve
rifica
tion
met
hods
and
te
chno
logi
es, s
tand
ard
oper
atin
g pr
oced
ures
(inc
ludi
ng
proc
edur
es fo
r the
cap
ture
and
com
mun
icat
ion
of
rele
vant
info
rmat
ion
with
in a
nd b
etw
een
rele
vant
st
akeh
olde
r ent
ities
). Ba
rrie
r man
uals
sho
uld
addr
ess
blow
out c
ontr
ol d
urin
g dr
illin
g, c
ompl
etio
n, re
-ent
ry,
tie-b
ack
of c
asin
g st
rings
and
so
on. B
arrie
r man
uals
sh
ould
be
the
subj
ect o
f exp
ert e
xter
nal r
evie
w, a
nd
shou
ld b
e re
gula
rly u
pdat
ed.
Not
ed.
The
Com
mon
wea
lth n
otes
that
num
erou
s in
dust
ry-
acce
pted
pro
cedu
res,
stan
dard
s an
d op
erat
ing
man
uals
ap
ply
to p
etro
leum
ope
ratio
ns, a
nd th
at it
is a
ccep
ted
indu
stry
pra
ctic
e to
hav
e a
wel
l con
trol
man
ual a
nd a
se
para
te b
arrie
r man
ual.
Both
man
uals
are
con
side
red
by th
e Re
gula
tor a
s pa
rt o
f the
wel
l app
rova
ls a
nd
man
agem
ent p
roce
ss.
The
Com
mon
wea
lth a
lso
note
s th
at th
e fa
cilit
y sa
fety
ca
se a
ddre
sses
saf
ety
at o
r nea
r a fa
cilit
y in
rela
tion
to:
•Id
entifi
catio
n of
haz
ards
and
ass
essm
ent
of ri
sks,
incl
udin
g bl
ow o
ut c
ontr
ol;
•Th
e im
plem
enta
tion
of m
easu
res
to e
limin
ate
the
haza
rds
or o
ther
wis
e co
ntro
l the
risk
s;
•A
com
preh
ensi
ve a
nd in
tegr
ated
sys
tem
for
man
agem
ent
of t
he h
azar
ds a
nd ri
sks,
incl
udin
g co
mm
unic
atio
n be
twee
n st
akeh
olde
rs; a
nd
•M
onito
ring,
aud
it an
d re
view
.
11M
emor
anda
of A
gree
men
t sho
uld
be e
nter
ed
into
bet
wee
n op
erat
ors
in re
latio
n to
pro
visi
on o
f em
erge
ncy
assi
stan
ce in
the
even
t of b
low
outs
.
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratin
g m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to fo
rmal
ise
assi
stan
ce
arra
ngem
ents
.
Indu
stry
, thr
ough
the
Aus
tral
ian
Petr
oleu
m
Prod
uctio
n an
d Ex
plor
atio
n As
soci
atio
n (A
PPEA
), th
e pe
ak in
dust
ry b
ody
repr
esen
ting
Aust
ralia
’s of
fsho
re o
il an
d ga
s in
dust
ry, i
s w
orki
ng t
o fo
rmal
ise
assi
stan
ce a
rran
gem
ents
for t
he o
ffsh
ore
petr
oleu
m
indu
stry
and
faci
litat
e th
e sh
arin
g of
reso
urce
s an
d/or
eq
uipm
ent
thro
ugh
a m
emor
andu
m o
f und
erst
andi
ng
arou
nd m
utua
l aid
.
22
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
12Pr
e-dr
illin
g as
sess
men
ts s
houl
d in
clud
e a
risk
asse
ssm
ent o
f the
wor
st-c
ase
blow
out s
cena
rio.
Acce
pted
.
The
Com
mon
wea
lth n
otes
that
this
reco
mm
enda
tion
is c
onsi
sten
t with
acc
epte
d in
dust
ry p
ract
ice
in w
hich
co
ntin
genc
y pl
anni
ng is
bas
ed o
n ris
k as
sess
men
ts th
at
take
into
acc
ount
pro
babi
lity
and
cons
eque
nce
spec
ific
to a
wel
l.
The
Com
mon
wea
lth u
nder
stan
ds th
at a
ccep
ted
indu
stry
pra
ctic
e is
to e
nsur
e th
at c
redi
ble
scen
ario
s co
nsid
er s
uch
attr
ibut
es a
s w
ell t
ype
(sur
face
or
subs
ea),
the
pres
ence
of d
rillp
ipe
or tu
bula
rs in
the
wel
lbor
e, a
nd o
ffse
t pro
duct
ion
data
.
Alth
ough
the
likel
ihoo
d of
suc
h ev
ents
rem
ains
lo
w, t
he C
omm
onw
ealth
now
requ
ires
that
off
shor
e pe
trol
eum
dril
ling
prop
osal
s (b
oth
expl
orat
ion
and
prod
uctio
n) a
sses
s a
‘wor
st c
ase
scen
ario
’ los
s of
wel
l co
ntro
l and
des
crib
e th
e m
easu
res
in p
lace
to p
reve
nt
and
resp
ond
to s
uch
an in
cide
nt.
13Pr
oble
ms
whi
ch a
rise
in th
e co
urse
of i
nsta
lling
ba
rrie
rs m
ust b
e th
e su
bjec
t of c
onsu
ltatio
n be
twee
n lic
ense
es, r
ig o
pera
tors
, and
con
trac
tors
(if u
sed)
. A
prop
er ri
sk a
sses
smen
t sho
uld
then
be
carr
ied
out a
nd
rem
edia
l ste
ps (i
nclu
ding
furt
her t
estin
g/ve
rifica
tion)
sh
ould
be
agre
ed u
pon,
and
doc
umen
ted
in w
ritin
g be
fore
the
perf
orm
ance
of r
emed
ial w
ork
whe
neve
r pr
actic
able
. Joi
nt w
ritte
n ce
rtifi
catio
n as
to re
solu
tion
of th
e pr
oble
m s
houl
d ta
ke p
lace
bef
ore
resu
mpt
ion
of d
rillin
g op
erat
ions
. Sen
ior o
nsho
re re
pres
enta
tives
of
sta
keho
lder
ent
ities
sho
uld
be in
volv
ed in
that
ce
rtifi
catio
n pr
oces
s.
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
ese
reco
mm
enda
tions
in a
ppro
pria
te c
ircum
stan
ces.
The
Com
mon
wea
lth n
otes
that
, in
acco
rdan
ce w
ith
acce
pted
indu
stry
pra
ctic
e, “
Man
agem
ent o
f Cha
nge”
pr
oces
ses
and
Wel
l Acc
epta
nce
Crite
ria a
pply
to w
ell
oper
atio
ns. A
ny o
pera
tiona
l dev
iatio
ns a
re a
ppro
ved
thro
ugh
form
al “
Man
agem
ent o
f Cha
nge”
pro
cess
es
whi
ch a
re re
port
ed to
the
Regu
lato
r. Th
e le
vel o
f ce
rtifi
catio
n fo
r act
ivity
dur
ing
wel
l ope
ratio
ns is
de
pend
ent o
n th
e ris
k of
the
situ
atio
n.
Furt
herm
ore,
the
Com
mon
wea
lth n
otes
that
ulti
mat
e re
spon
sibili
ty fo
r the
des
ign
and
oper
atio
n of
a w
ell
lies
with
the
oper
ator
. The
ope
rato
r sho
uld
ensu
re th
at
deci
sions
mad
e du
ring
the
cour
se o
f dril
ling
invo
lve
full
info
rmat
ion
and
cons
ulta
tion
with
all
part
ies
on th
e rig
.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
23
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
14Li
cens
ees
shou
ld b
e su
bjec
t to
an e
xpre
ss o
blig
atio
n to
info
rm re
gula
tors
of p
robl
ems
whi
ch a
rise
in th
e co
urse
of i
nsta
lling
bar
riers
, eve
n if
they
con
side
r th
at w
ell i
nteg
rity
is n
ot th
ereb
y co
mpr
omis
ed. T
he
info
rmat
ion
shou
ld b
e pr
ovid
ed b
y w
ay o
f spe
cial
re
port
, rat
her t
han
incl
uded
in a
sta
ndar
d re
port
ing
docu
men
t (su
ch a
s a
DDR)
. The
info
rmat
ion
prov
ided
sh
ould
incl
ude
risk
asse
ssm
ent d
etai
ls.
Acce
pted
in p
art.
The
Com
mon
wea
lth n
otes
that
this
reco
mm
enda
tion
is c
onsi
sten
t with
cur
rent
regu
lato
ry p
ract
ice
and
that
, pur
suan
t to
Part
5 o
f the
Off
shor
e Pe
trol
eum
and
Gr
eenh
ouse
Gas
Sto
rage
(Res
ourc
e M
anag
emen
t and
Ad
min
istra
tion)
Reg
ulat
ions
201
1, a
n ob
ligat
ion
exis
ts
for o
pera
tors
to in
form
the
Regu
lato
r of w
ell a
ctiv
ity
oper
atio
ns a
nd w
ell i
nteg
rity
haza
rds,
incl
udin
g pr
oble
ms
enco
unte
red
durin
g ba
rrie
r ins
talla
tion.
This
info
rmat
ion
is p
rovi
ded
to th
e Re
gula
tor t
hrou
gh
the
daily
dril
ling
repo
rt. T
he C
omm
onw
ealth
con
side
rs
that
this
met
hod
of re
port
ing
is s
uffic
ient
.
24
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
15As
soo
n as
a ri
sk o
f bar
rier f
ailu
re a
rises
, no
othe
r ac
tiviti
es s
houl
d ta
ke p
lace
in th
e w
ell o
ther
than
th
ose
dire
cted
to re
mov
al o
f the
risk
.
Acce
pted
.
The
Com
mon
wea
lth n
otes
that
this
is a
ccep
ted
indu
stry
pra
ctic
e.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
In re
latio
n to
occ
upat
iona
l hea
lth a
nd s
afet
y co
nsid
erat
ions
, NO
PSA
has
incr
ease
d its
focu
s on
sa
fety
cas
e as
sess
men
ts a
nd th
roug
h its
insp
ectio
n of
dr
illin
g rig
s, re
gard
ing:
•Co
mm
and
and
cont
rol a
rran
gem
ents
: spe
cific
ally
in
clud
ing
com
mun
icat
ion
betw
een
the
title
hold
er’s
and
oper
ator
’s re
pres
enta
tives
on
boar
d dr
illin
g rig
s.
•Si
mul
tane
ous o
pera
tions
: spe
cific
ally
incl
udin
g sa
fety
-rel
ated
inte
rfac
e ar
rang
emen
ts b
etw
een
title
hold
ers
and
oper
ator
s of
sep
arat
e fa
cilit
ies
cond
uctin
g co
-loc
ated
sim
ulta
neou
s op
erat
ions
.
In a
dditi
on, N
OPS
A ha
s in
crea
sed
its p
lann
ed
insp
ectio
n fr
eque
ncy
for m
anne
d dr
illin
g an
d pr
oduc
tion
faci
litie
s fr
om o
nce
to tw
ice
per y
ear.
A re
crui
tmen
t pro
gram
me
has
been
inst
igat
ed to
re
sour
ce th
is h
ighe
r fre
quen
cy.
25
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
16Th
e us
e/ty
pe o
f bar
riers
(inc
ludi
ng a
ny c
hang
e re
ques
ts re
latin
g th
eret
o) m
ust b
e th
e su
bjec
t of
cons
ulta
tion
betw
een
licen
sees
and
rig
oper
ator
s pr
ior
to in
stal
latio
n. A
pro
per r
isk
asse
ssm
ent s
houl
d be
ca
rrie
d ou
t, ag
reed
upo
n, a
nd d
ocum
ente
d in
writ
ing
befo
re in
stal
latio
n. J
oint
writ
ten
cert
ifica
tion
as to
th
e ap
prop
riate
ness
of t
he u
se o
f par
ticul
ar b
arrie
rs
shou
ld ta
ke p
lace
bef
ore
inst
alla
tion.
Sen
ior o
nsho
re
repr
esen
tativ
es o
f sta
keho
lder
ent
ities
sho
uld
be
invo
lved
in th
at c
ertifi
catio
n pr
oces
s.
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
is re
com
men
datio
n.
The
Com
mon
wea
lth n
otes
that
, prio
r to
the
com
men
cem
ent o
f any
dril
ling
activ
ity, t
he u
se/t
ype
of b
arrie
rs a
nd a
ssoc
iate
d ris
ks m
ust b
e ap
prov
ed b
y th
e Re
gula
tor t
hrou
gh th
e W
OMP.
Onl
y th
e tit
leho
lder
ha
s ov
eral
l res
pons
ibili
ty fo
r the
des
ign
and
appr
oval
of
all
wel
l ope
ratin
g ac
tiviti
es b
eing
und
erta
ken
in th
e pe
trol
eum
title
are
a. T
his
is a
regu
lato
ry
requ
irem
ent u
nder
Par
t 5 o
f the
Off
shor
e Pe
trol
eum
an
d Gr
eenh
ouse
Gas
Sto
rage
(Res
ourc
e M
anag
emen
t an
d Ad
min
istra
tion)
Reg
ulat
ions
201
1. F
urth
erm
ore,
an
y va
riatio
n to
the
WOM
P m
ust a
lso
be a
ppro
ved
by
the
Regu
lato
r. Ag
ain,
onl
y th
e tit
leho
lder
is re
spon
sibl
e fo
r var
iatio
n of
an
appr
oved
WOM
P.
The
Com
mon
wea
lth n
otes
that
the
role
of t
he
Regu
lato
r is
to d
eter
min
e if
the
activ
ity is
in
acco
rdan
ce w
ith th
e re
gula
tory
regi
me
requ
irem
ents
as
par
t of t
he a
ppro
val p
roce
ss. C
onsi
sten
t with
this
pr
inci
ple,
the
Com
mon
wea
lth fu
rthe
r not
es th
at
impl
emen
tatio
n of
a fo
rmal
inte
rnal
cer
tifica
tion
proc
ess
wou
ld n
ot a
dd v
alue
to th
e ap
prov
als
proc
ess
but i
nste
ad w
ould
add
furt
her r
egul
ator
y bu
rden
and
po
tent
ial l
iabi
lity
expo
sure
to in
divi
dual
s w
ithin
the
orga
nisa
tion.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
26
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
17Th
e su
cces
sful
inst
alla
tion
of e
very
bar
rier s
houl
d be
th
e su
bjec
t of w
ritte
n ve
rifica
tion
with
in a
nd b
etw
een
licen
sees
and
rig
oper
ator
s; a
nd s
houl
d be
the
subj
ect
of e
xplic
it re
port
ing
to th
e re
leva
nt re
gula
tor(s
).
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
is re
com
men
datio
n.
The
Com
mon
wea
lth n
otes
that
, pur
suan
t to
Part
5 o
f th
e Of
fsho
re P
etro
leum
and
Gre
enho
use
Gas S
tora
ge
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n) R
egul
atio
ns
2011
, the
title
hold
er m
ust i
nfor
m th
e Re
gula
tor o
f wel
l ac
tivity
as
a re
quire
men
t of t
he W
OMP.
This
info
rmat
ion
is p
rovi
ded
to th
e Re
gula
tor t
hrou
gh
the
daily
dril
ling
repo
rt. T
he C
omm
onw
ealth
con
side
rs
that
this
met
hod
of re
port
ing
is s
uffic
ient
and
that
an
expl
icit
repo
rt a
fter
the
inst
alla
tion
of e
very
bar
rier i
s no
t req
uire
d.
Furt
herm
ore,
indu
stry
alre
ady
has
in p
lace
form
al
“Man
agem
ent o
f Cha
nge”
app
rova
ls a
nd re
quire
men
ts,
and
cons
iste
nt w
ith c
urre
nt re
gula
tory
requ
irem
ents
, th
e Re
gula
tor m
ust b
e no
tified
of a
ny d
evia
tions
from
an
app
rove
d W
OMP.
27
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
18Re
mov
al o
f a b
arrie
r mus
t be
the
subj
ect o
f co
nsul
tatio
n be
twee
n lic
ense
es a
nd ri
g op
erat
ors
prio
r to
rem
oval
. A p
rope
r ris
k as
sess
men
t sho
uld
be c
arrie
d ou
t and
agr
eed
upon
, and
doc
umen
ted
in w
ritin
g be
fore
rem
oval
. Joi
nt w
ritte
n ce
rtifi
catio
n as
to th
e ap
prop
riate
ness
of r
emov
al s
houl
d ta
ke p
lace
bef
ore
rem
oval
. Sen
ior o
nsho
re re
pres
enta
tives
of s
take
hold
er
entit
ies
shou
ld b
e in
volv
ed in
that
cer
tifica
tion
proc
ess.
Acce
pted
in p
rinci
ple.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
is re
com
men
datio
n.
The
Com
mon
wea
lth n
otes
that
the
licen
see
has
over
all
resp
onsi
bilit
y fo
r the
des
ign
and
appr
oval
of a
ll w
ell
oper
atin
g ac
tiviti
es b
eing
und
erta
ken
in th
e pe
trol
eum
tit
le, n
ot th
e rig
ope
rato
r.
The
Com
mon
wea
lth fu
rthe
r not
es it
is a
ccep
ted
indu
stry
pra
ctic
e fo
r the
ope
rato
r to
unde
rtak
e th
e ris
k as
sess
men
t for
bar
rier r
emov
al d
urin
g th
e de
taile
d de
sign
pha
se o
f the
wel
l con
stru
ctio
n pl
anni
ng
proc
ess,
not j
ust p
rior t
o th
e in
stal
latio
n. T
he n
eces
sity
fo
r ris
k as
sess
men
t and
“M
anag
emen
t of C
hang
e”
shou
ld o
nly
be re
quire
d if
rem
oval
of a
bar
rier(s
) is
non-
com
plia
nt w
ith th
e ap
prov
ed w
ell p
rogr
am.
The
Com
mon
wea
lth n
otes
that
the
Regu
lato
r de
term
ines
if th
e ac
tivity
is in
acc
orda
nce
with
the
regu
lato
ry re
quire
men
ts a
s pa
rt o
f the
app
rova
l pr
oces
s. Co
nsis
tent
with
this
prin
cipl
e, th
e im
plem
enta
tion
of a
form
al in
tern
al c
ertifi
catio
n pr
oces
s w
ould
not
add
val
ue to
the
appr
oval
s pr
oces
s bu
t ins
tead
wou
ld a
dd fu
rthe
r reg
ulat
ory
burd
en a
nd
pote
ntia
l lia
bilit
y ex
posu
re to
indi
vidu
als
with
in th
e or
gani
satio
n.
28
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
19Li
cens
ees
shou
ld b
e su
bjec
t to
an e
xpre
ss o
blig
atio
n to
info
rm re
gula
tors
of t
he p
ropo
sed
rem
oval
of a
ba
rrie
r, ev
en if
they
con
side
r tha
t wel
l int
egrit
y is
no
t the
reby
com
prom
ised
. The
info
rmat
ion
shou
ld b
e pr
ovid
ed b
y w
ay o
f spe
cial
repo
rt, r
athe
r tha
n in
clud
ed
in a
sta
ndar
d re
port
ing
docu
men
t (su
ch a
s a
DDR)
. The
in
form
atio
n pr
ovid
ed s
houl
d in
clud
e ris
k as
sess
men
t de
tails
. Rem
oval
of a
bar
rier s
houl
d no
t tak
e pl
ace
with
out p
rior w
ritte
n ap
prov
al o
f the
rele
vant
re
gula
tor(s
).
Acce
pted
in p
art.
This
reco
mm
enda
tion
is c
onsi
sten
t with
cur
rent
re
gula
tory
pra
ctic
e an
d re
quire
men
ts. P
ursu
ant t
o Pa
rt 5
of t
he O
ffsh
ore
Petr
oleu
m a
nd G
reen
hous
e Ga
s St
orag
e (R
esou
rce
Man
agem
ent a
nd A
dmin
istra
tion)
Re
gula
tions
201
1, a
ll ac
tiviti
es re
latin
g to
the
inst
alla
tion,
rem
oval
or c
hang
e of
bar
riers
mus
t be
appr
oved
by
the
Regu
lato
r thr
ough
the
WOM
P.
The
Com
mon
wea
lth n
otes
the
daily
dril
ling
repo
rt is
su
ffici
ent t
o ad
dres
s th
ese
mat
ters
.
Furt
herm
ore,
any
dev
iatio
n fr
om th
e ap
prov
ed d
rillin
g pr
ogra
m w
ould
be
subj
ect t
o fo
rmal
“M
anag
emen
t of
Cha
nge”
pro
cess
es w
hich
mus
t be
appr
oved
by
the
Regu
lato
r.
The
Com
mon
wea
lth h
as c
omm
issi
oned
a c
onsu
ltanc
y to
dev
elop
a N
atio
nal L
egis
lativ
e Co
mpl
ianc
e Fr
amew
ork
(NLC
F) to
dev
elop
a c
onsi
sten
t bes
t pr
actic
e ap
proa
ch to
be
used
by
regu
lato
rs in
thei
r re
gula
tion
of A
ustr
alia
’s of
fsho
re p
etro
leum
indu
stry
. Th
e N
LCF
will
be
com
plet
ed in
the
seco
nd h
alf o
f 201
1.
20If
a di
sput
e ar
ises
bet
wee
n a
licen
see
and
a rig
op
erat
or in
rela
tion
to a
wel
l con
trol
issu
e, a
nd is
not
re
solv
ed b
etw
een
them
, the
mat
ter m
ust b
e ra
ised
w
ith th
e re
leva
nt re
gula
tor b
efor
e di
scre
tiona
ry
oper
atio
ns p
roce
ed.
Not
acc
epte
d.
The
Com
mon
wea
lth c
onsid
ers
that
Aus
tral
ia’s
obje
ctiv
e-ba
sed
regi
me
impo
ses
resp
onsib
ility
on
oper
ator
s fo
r m
aint
aini
ng w
ell c
ontr
ol a
nd w
ell i
nteg
rity.
Wel
l con
trol
iss
ues
need
to b
e re
solv
ed q
uick
ly b
y th
e op
erat
or s
o th
e iss
ue d
oes
not e
scal
ate
furt
her a
nd a
ny d
elay
s in
se
ekin
g th
e Re
gula
tor t
o ar
bitr
ate
disp
utes
may
resu
lt in
add
ition
al c
ompl
icat
ions
. Suc
h ac
tion
wou
ld a
lso in
ef
fect
tran
sfer
the
risk
to th
e Re
gula
tor r
athe
r tha
n th
e op
erat
or w
ho is
bes
t pla
ced
to a
sses
s an
d un
ders
tand
th
e ris
ks.
Any
wel
l con
trol
issu
es s
houl
d be
repo
rted
to th
e Re
gula
tor i
n th
e da
ily d
rillin
g re
port
.
Sect
ion
569
of th
e OP
GGS
Act r
equi
res
petr
oleu
m
title
hold
ers
to c
arry
out
thei
r pet
role
um re
cove
ry
oper
atio
ns in
acc
orda
nce
with
goo
d oi
lfiel
d pr
actic
e.
29
2 2Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
1Pe
rcei
ved
time
and
cost
sav
ings
rela
ting
to a
ny m
atte
rs
impa
ctin
g up
on w
ell c
ontr
ol s
houl
d be
sub
ject
ed to
rig
orou
s sa
fety
ass
essm
ent.
Acce
pted
.
2W
ells
dril
led
into
hyd
roca
rbon
zon
es s
houl
d be
trea
ted
as li
ve w
ells
, with
the
pote
ntia
l to
blow
out u
nles
s a
docu
men
ted
risk
asse
ssm
ent e
stab
lishe
s ot
herw
ise.
Acce
pted
.
The
Com
mon
wea
lth a
gree
s th
at w
ells
dril
led
into
hy
droc
arbo
n zo
nes
shou
ld b
e tr
eate
d as
live
wel
ls, a
nd
note
s th
at a
ll w
ell a
ctiv
ity s
houl
d be
repo
rted
to th
e Re
gula
tor i
n th
e da
ily d
rillin
g re
port
.
In th
is re
gard
the
Com
mon
wea
lth n
otes
that
th
is re
com
men
datio
n is
con
sist
ent w
ith c
urre
nt
regu
lato
ry p
ract
ice
and
requ
irem
ents
. Rep
ortin
g of
a
wel
l act
ivity
is a
legi
slat
ive
requ
irem
ent u
nder
Par
t 5
of th
e Of
fsho
re P
etro
leum
and
Gre
enho
use
Gas
Stor
age
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n)
Regu
latio
ns 2
011.
30
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
23Us
e of
sin
gle
strin
gs o
f int
erm
edia
te c
asin
g to
pe
netr
ate
hydr
ocar
bon
bear
ing
zone
s sh
ould
be
care
fully
risk
ass
esse
d. M
ultip
le s
trin
gs o
f int
erm
edia
te
casi
ng h
ave
the
adva
ntag
e of
isol
atin
g lo
st c
ircul
atio
n zo
nes
and
seal
ing
off a
nom
alou
s pr
essu
re z
ones
. If
inte
rmed
iate
cas
ing
is s
et in
a h
ydro
carb
on z
one
it sh
ould
be
trea
ted
as p
rodu
ctio
n ca
sing
.
Acce
pted
.
The
Com
mon
wea
lth a
ccep
ts th
at th
e us
e of
sin
gle
casi
ng s
trin
gs s
houl
d be
risk
ass
esse
d an
d no
tes
that
al
l wel
l act
iviti
es m
ust b
e ap
prov
ed b
y th
e Re
gula
tor
thro
ugh
the
WOM
P.
The
Com
mon
wea
lth fu
rthe
r not
es th
at c
asin
g de
sign
an
d pl
acem
ent w
as a
ddre
ssed
in C
laus
e 50
3 of
the
prev
ious
ly le
gisl
ated
Sch
edul
e of
Spe
cific
Req
uire
men
ts
as to
Off
shor
e Pe
trol
eum
Exp
lora
tion
and
Prod
uctio
n,
whi
ch h
as b
een
adop
ted
by th
e in
dust
ry a
s ac
cept
ed
indu
stry
pra
ctic
e.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
The
Com
mon
wea
lth w
ill a
lso
cons
ider
if e
lem
ents
of
the
prev
ious
ly le
gisl
ated
Sch
edul
e of
Spe
cific
Re
quire
men
ts a
s to
Offs
hore
Pet
role
um E
xplo
ratio
n an
d Pr
oduc
tion
shou
ld b
e in
corp
orat
ed in
to th
e Of
fsho
re
Petr
oleu
m a
nd G
reen
hous
e Ga
s Sto
rage
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n) R
egul
atio
ns 2
011.
31
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
24A
min
imum
of t
wo
barr
iers
sho
uld
be in
pla
ce a
t all
times
(inc
ludi
ng d
urin
g ba
tche
d op
erat
ions
) whe
neve
r it
is re
ason
ably
pra
ctic
able
to d
o so
.
Acce
pted
.
Whi
le th
is is
prim
arily
a m
atte
r for
indu
stry
and
the
Regu
lato
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld
be a
ppro
pria
te fo
r ind
ustr
y an
d th
e Re
gula
tor t
o ca
refu
lly c
onsi
der a
dopt
ing
thes
e re
com
men
datio
ns in
ap
prop
riate
circ
umst
ance
s.
The
Com
mon
wea
lth u
nder
stan
ds th
at th
e ac
cept
ed
indu
stry
pra
ctic
e is
for t
wo
test
ed/v
erifi
ed w
ell
barr
iers
to b
e av
aila
ble
durin
g al
l wel
l act
iviti
es a
nd
oper
atio
ns, i
nclu
ding
sus
pend
ed a
nd a
band
oned
wel
ls,
whe
re a
pre
ssur
e di
ffer
entia
l exi
sts
that
may
cau
se
unco
ntro
lled
outfl
ow fr
om th
e bo
rehe
ad/w
ellh
ead
to
the
exte
rnal
env
ironm
ent.
Furt
herm
ore,
the
Com
mon
wea
lth n
otes
that
thes
e re
com
men
datio
ns a
re c
onsi
sten
t with
cur
rent
re
gula
tory
pra
ctic
e. T
he u
se o
f bar
riers
and
ass
ocia
ted
risks
mus
t be
appr
oved
by
the
Regu
lato
r thr
ough
the
drill
ing
prog
ram
, and
the
Regu
lato
r has
the
pow
er
to re
ques
t add
ition
al b
arrie
rs s
houl
d it
be c
onsi
dere
d ne
cess
ary.
Any
chan
ges
to th
e dr
illin
g pr
ogra
m a
re
subj
ect t
o fo
rmal
“M
anag
emen
t of C
hang
e” p
roce
sses
an
d m
ust b
e re
port
ed to
the
Regu
lato
r.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
Furt
herm
ore,
the
Com
mon
wea
lth h
as is
sued
a
Stat
emen
t of E
xpec
tatio
ns to
the
Desi
gnat
ed
Auth
oriti
es a
nd N
OPS
A w
hich
set
s ou
t the
Min
iste
r fo
r Res
ourc
es a
nd E
nerg
y’s
expe
ctat
ions
, as
the
resp
onsi
ble
Com
mon
wea
lth M
inis
ter,
on m
atte
rs
rela
ting
to th
e ex
erci
se o
f the
ir fu
nctio
ns a
nd p
ower
s un
der t
he O
PGG
S Ac
t and
ass
ocia
ted
regu
latio
ns a
nd
prin
cipl
es o
f bes
t pra
ctic
e re
gula
tory
adm
inis
trat
ion.
Furt
herm
ore,
the
Com
mon
wea
lth h
as c
omm
issi
oned
a
cons
ulta
ncy
to d
evel
op a
Nat
iona
l Leg
isla
tive
Com
plia
nce
Fram
ewor
k (N
LCF)
to d
evel
op a
con
sist
ent
best
pra
ctic
e ap
proa
ch to
be
used
by
regu
lato
rs in
thei
r re
gula
tion
of A
ustr
alia
’s of
fsho
re p
etro
leum
indu
stry
. Th
e N
LCF
will
be
com
plet
ed in
the
seco
nd h
alf o
f 201
1.
25Re
lianc
e up
on o
ne b
arrie
r aga
inst
a b
low
out m
ust
not t
ake
plac
e ex
cept
with
the
prio
r writ
ten
appr
oval
of
the
rele
vant
regu
lato
r and
then
onl
y in
a tr
ue
emer
genc
y si
tuat
ion
(see
bel
ow).
26Re
gula
tory
app
rova
l to
rely
on
only
one
bar
rier s
houl
d no
t be
give
n un
less
(i) a
pro
per r
isk
asse
ssm
ent i
s ca
rrie
d ou
t; (ii
) exc
eptio
nal c
ircum
stan
ces
exis
t; an
d (ii
i) ris
ks in
volv
ed a
re re
duce
d to
‘as
low
as
reas
onab
ly
prac
ticab
le’. T
he d
efau
lt po
sitio
n m
ust b
e th
at w
ell
inte
grity
mus
t be
assu
red.
32
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
The
Com
mon
wea
lth w
ill a
lso
cons
ider
if e
lem
ents
of
the
prev
ious
ly le
gisl
ated
Sch
edul
e of
Spe
cific
Re
quire
men
ts a
s to
Offs
hore
Pet
role
um E
xplo
ratio
n an
d Pr
oduc
tion
shou
ld b
e in
corp
orat
ed in
to th
e Of
fsho
re
Petr
oleu
m a
nd G
reen
hous
e Ga
s Sto
rage
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n) R
egul
atio
ns 2
011.
33
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
27Li
cens
ees
and
rig o
pera
tors
sho
uld
inst
all a
n ad
ditio
nal
barr
ier w
hene
ver (
i) th
ere
is a
ny re
al d
oubt
as
to th
e in
tegr
ity o
f any
bar
rier;
(ii) w
hene
ver t
he ri
sk o
f flow
fr
om a
rese
rvoi
r inc
reas
es m
ater
ially
in th
e co
urse
of
ope
ratio
ns; a
nd (i
ii) w
here
the
cons
eque
nces
of a
bl
owou
t are
gra
ve (f
or e
xam
ple,
for r
eef s
yste
ms
or
shor
elin
es).
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
and
the
Regu
lato
r to
care
fully
co
nsid
er a
dopt
ing
thes
e re
com
men
datio
ns.
Purs
uant
to P
art 5
of t
he O
ffsh
ore
Petr
oleu
m a
nd
Gree
nhou
se G
as S
tora
ge (R
esou
rce
Man
agem
ent a
nd
Adm
inist
ratio
n) R
egul
atio
ns 2
011,
title
hold
ers
are
requ
ired
to in
form
the
Regu
lato
r of w
ell a
ctiv
ity a
s a
requ
irem
ent o
f the
WOM
P. T
his
info
rmat
ion
is b
y ac
cept
ed in
dust
ry p
ract
ice
prov
ided
to th
e Re
gula
tor
thro
ugh
the
daily
dril
ling
repo
rt.
Furt
herm
ore,
the
Com
mon
wea
lth n
otes
that
the
use
of
barr
iers
and
ass
ocia
ted
risks
mus
t be
appr
oved
by
the
Regu
lato
r thr
ough
the
WOM
P, a
nd th
at th
e Re
gula
tor
can
requ
est a
dditi
onal
bar
riers
if a
ppro
pria
te p
rior t
o an
y ac
tivity
bei
ng u
nder
take
n.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
34
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
28Th
e in
dust
ry s
tand
ard
of tw
o ba
rrie
rs s
houl
d be
re
plac
ed w
ith th
e co
ncep
t of ‘
two
or m
ore
barr
iers
’ as
a m
inim
um s
tand
ard.
A m
inim
um s
tand
ard
whe
n op
erat
ions
pro
ceed
nor
mal
ly s
houl
d ne
ver b
e re
gard
ed
as a
suf
ficie
nt s
tand
ard
in o
ther
circ
umst
ance
s.
Acce
pted
.
The
Com
mon
wea
lth a
ccep
ts th
at tw
o ba
rrie
rs s
houl
d be
ava
ilabl
e du
ring
all w
ell a
ctiv
ities
and
ope
ratio
ns
and
furt
her n
otes
that
this
is a
n ex
istin
g, a
ccep
ted
indu
stry
pra
ctic
e.
The
Com
mon
wea
lth a
lso
note
s th
at th
is
reco
mm
enda
tion
is c
onsi
sten
t with
cur
rent
regu
lato
ry
prac
tice,
whe
re th
e Re
gula
tor h
as th
e po
wer
to re
ques
t ad
ditio
nal b
arrie
rs a
s a
part
of t
he a
ppro
val o
f the
W
OMP.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
The
Com
mon
wea
lth w
ill a
lso
cons
ider
if e
lem
ents
of
the
prev
ious
ly le
gisl
ated
Sch
edul
e of
Spe
cific
Re
quire
men
ts a
s to
Offs
hore
Pet
role
um E
xplo
ratio
n an
d Pr
oduc
tion
shou
ld b
e in
corp
orat
ed in
to th
e Of
fsho
re
Petr
oleu
m a
nd G
reen
hous
e Ga
s Sto
rage
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n) R
egul
atio
ns 2
011.
35
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
29In
dust
ry, r
egul
ator
s, an
d tr
aini
ng/r
esea
rch
inst
itutio
ns
shou
ld d
evel
op s
tand
ards
that
add
ress
bes
t pra
ctic
es
for c
emen
ting
oper
atio
ns (i
nclu
ding
liai
sing
, as
appr
opria
te, w
ith o
vers
eas
regu
lato
rs) w
ith a
vie
w to
ov
erco
min
g pr
oble
ms
whi
ch c
an e
ffec
t the
inte
grity
of
cem
ente
d ca
sing
sho
es, a
nnul
us a
nd c
emen
t plu
gs.
Acce
pted
.
The
Com
mon
wea
lth c
onsi
ders
that
it w
ould
be
appr
opria
te fo
r ind
ustr
y an
d th
e Re
gula
tor t
o ca
refu
lly
cons
ider
ado
ptin
g th
ese
reco
mm
enda
tions
.
The
Com
mon
wea
lth n
otes
that
indu
stry
has
im
plem
ente
d ac
cept
ed in
dust
ry p
ract
ices
for
cem
entin
g op
erat
ions
, whi
ch a
re re
view
ed a
nd
upda
ted
whe
re a
ppro
pria
te.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
Indu
stry
has
also
est
ablis
hed
a Dr
illin
g St
eerin
g Co
mm
ittee
and
an
Emer
genc
y M
anag
emen
t Ste
erin
g Co
mm
ittee
to id
entif
y an
d im
plem
ent c
ross
-ind
ustr
y le
arni
ngs f
rom
the
Mon
tara
and
Gul
f of M
exic
o in
cide
nts.
Ther
e ar
e al
so n
umer
ous I
ndus
try
Skill
s Cou
ncils
and
Ed
ucat
ion
Task
forc
es th
at p
rovi
de a
fram
ewor
k in
whi
ch
acce
pted
com
pete
ncy
stan
dard
s are
dev
elop
ed.
In re
latio
n to
occ
upat
iona
l hea
lth a
nd s
afet
y co
nsid
erat
ions
, NO
PSA
has
incr
ease
d its
focu
s on
sa
fety
cas
e as
sess
men
ts a
nd th
roug
h its
insp
ectio
n of
dr
illin
g rig
s, re
gard
ing:
•Co
mm
and
and
cont
rol a
rran
gem
ents
: spe
cific
ally
in
clud
ing
com
mun
icat
ion
betw
een
the
title
hold
er’s
and
oper
ator
’s re
pres
enta
tives
on
boar
d dr
illin
g rig
s.
30Tr
acki
ng a
nd a
naly
sis
of c
emen
ting
prob
lem
s/fa
ilure
s sh
ould
occ
ur to
ass
ess
indu
stry
tren
ds, p
rinci
pal
caus
es, r
emed
ial t
echn
ique
s an
d so
on.
31It
is re
com
men
ded
that
indu
stry
, reg
ulat
ors,
and
trai
ning
/res
earc
h in
stitu
tions
liai
se w
ith o
ne a
noth
er
with
a v
iew
to d
evel
opin
g be
tter
tech
niqu
es fo
r tes
ting
and
verif
ying
the
inte
grity
of c
emen
ted
casi
ng s
hoes
as
bar
riers
(par
ticul
arly
in a
typi
cal s
ituat
ions
suc
h as
w
here
the
casi
ng s
hoe
is lo
cate
d w
ithin
a re
serv
oir i
n a
horiz
onta
l or h
igh
angl
e po
sitio
n at
gre
at d
epth
).
32Ce
men
t int
egrit
y sh
ould
be
eval
uate
d w
here
ver
prac
ticab
le b
y w
ay o
f cem
ent e
valu
atio
n te
sts,
rath
er
than
rely
ing
on p
re-o
pera
tiona
l cal
cula
tions
of c
emen
t an
d di
spla
cem
ent fl
uid
volu
mes
.
36
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
•Si
mul
tane
ous o
pera
tions
: spe
cific
ally
incl
udin
g sa
fety
-rel
ated
inte
rfac
e ar
rang
emen
ts b
etw
een
title
hold
ers
and
oper
ator
s of
sep
arat
e fa
cilit
ies
cond
uctin
g co
-loc
ated
sim
ulta
neou
s op
erat
ions
.
In a
dditi
on N
OPS
A ha
s in
crea
sed
its p
lann
ed in
spec
tion
freq
uenc
y fo
r man
ned
drill
ing
and
prod
uctio
n fa
cilit
ies
from
onc
e to
twic
e pe
r yea
r. A
recr
uitm
ent p
rogr
amm
e ha
s be
en in
stig
ated
to re
sour
ce th
is h
ighe
r fre
quen
cy.
37
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
33It
shou
ld b
e st
anda
rd in
dust
ry p
ract
ice
to re
-tes
t a
cem
ente
d ca
sing
sho
e (t
hat i
s, af
ter W
OC) w
hene
ver
the
plug
s do
not
bum
p or
the
float
val
ves
appa
rent
ly
fail.
Sta
ndar
d in
dust
ry p
ract
ice
shou
ld re
quire
co
nsid
erat
ion
of o
ther
test
s in
add
ition
to a
repe
at
pres
sure
test
.
Acce
pted
.
The
Com
mon
wea
lth c
onsi
ders
that
it w
ould
be
appr
opria
te fo
r ind
ustr
y an
d th
e Re
gula
tor t
o ca
refu
lly
cons
ider
ado
ptin
g th
ese
reco
mm
enda
tions
. The
Co
mm
onw
ealth
not
es th
at in
dust
ry h
as im
plem
ente
d ac
cept
ed in
dust
ry p
ract
ices
for c
emen
ting
oper
atio
ns,
whi
ch a
re re
view
ed a
nd u
pdat
ed w
here
app
ropr
iate
.
In a
dditi
on, t
he C
omm
onw
ealth
not
es in
dust
ry a
dvic
e th
at b
arrie
r and
cem
entin
g m
anua
ls a
lread
y de
fine
the
proc
ess
of te
stin
g w
ell i
nteg
rity
and
expl
anat
ion
of a
ny
devi
atio
ns m
ade
subj
ect t
o “M
anag
emen
t of C
hang
e”
proc
esse
s.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
thro
ugh
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
In re
latio
n to
occ
upat
iona
l hea
lth a
nd s
afet
y co
nsid
erat
ions
, NO
PSA
has
incr
ease
d its
focu
s on
sa
fety
cas
e as
sess
men
ts a
nd th
roug
h its
insp
ectio
n of
dr
illin
g rig
s, re
gard
ing:
•Co
mm
and
and
cont
rol a
rrang
emen
ts: s
peci
fical
ly
incl
udin
g co
mm
unic
atio
n be
twee
n th
e tit
leho
lder
’s an
d op
erat
or’s
repr
esen
tativ
es o
nboa
rd d
rillin
g rig
s.
•Si
mul
tane
ous o
pera
tions
: spe
cific
ally
incl
udin
g sa
fety
-rel
ated
inte
rfac
e ar
rang
emen
ts b
etw
een
title
hold
ers
and
oper
ator
s of
sep
arat
e fa
cilit
ies
cond
uctin
g co
-loc
ated
sim
ulta
neou
s op
erat
ions
.
In a
dditi
on N
OPS
A ha
s in
crea
sed
its p
lann
ed in
spec
tion
freq
uenc
y fo
r man
ned
drill
ing
and
prod
uctio
n fa
cilit
ies
from
onc
e to
twic
e pe
r yea
r. A
recr
uitm
ent p
rogr
amm
e ha
s be
en in
stig
ated
to re
sour
ce th
is h
ighe
r fre
quen
cy.
34An
y in
dica
tion
of a
com
prom
ised
cem
ente
d sh
oe w
hich
ca
nnot
be
reso
lved
with
a h
igh
mea
sure
of c
onfid
ence
sh
ould
resu
lt in
the
inst
alla
tion
of a
dditi
onal
wel
l co
ntro
l bar
rier(s
).
38
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
35Vo
lum
es o
f cem
ent u
sed
in c
onne
ctio
n w
ith b
arrie
r in
stal
latio
n sh
ould
be
calc
ulat
ed w
ith th
e as
sist
ance
of
a pr
o-fo
rma
whi
ch re
cord
s al
l rel
evan
t bas
elin
e da
ta,
whi
ch s
houl
d be
ver
ified
by
onsh
ore
pers
onne
l.
Acce
pted
in p
art.
The
Com
mon
wea
lth n
otes
that
this
reco
mm
enda
tion
is
cons
iste
nt w
ith a
ccep
ted
indu
stry
pra
ctic
e. P
relim
inar
y ce
men
t vol
ume
calc
ulat
ions
are
incl
uded
in th
e W
OMP,
w
hich
is a
ppro
ved
by th
e Re
gula
tor b
efor
e ac
tivity
co
mm
ence
s. As
suc
h, a
n ad
ditio
nal r
equi
rem
ent f
or a
pr
o-fo
rma
is n
ot re
quire
d.
The
Com
mon
wea
lth n
otes
that
acc
ordi
ng to
acc
epte
d in
dust
ry p
ract
ice,
cem
ent v
olum
e ca
lcul
atio
ns s
houl
d be
ver
ified
by
the
on-r
ig te
chni
cal s
peci
alis
t onc
e th
e ac
tual
mea
sure
d de
pths
and
hol
e an
d ca
sing
siz
es a
re
final
ised
, and
repo
rted
to th
e Re
gula
tor i
n th
e da
ily
drill
ing
repo
rt.
36If
perf
orm
ance
of b
arrie
r ins
talla
tion
is o
utso
urce
d by
a
licen
see,
the
cont
ract
or (f
or e
xam
ple,
the
cem
entin
g co
mpa
ny) s
houl
d be
eng
aged
on
term
s w
hich
cle
arly
re
quire
the
prov
isio
n of
exp
ert a
dvis
ory
serv
ices
by
the
cont
ract
or w
ith re
spec
t to
barr
ier i
nteg
rity.
Acce
pted
.
Not
ing
this
is a
n in
dust
ry o
pera
tiona
l mat
ter,
the
Com
mon
wea
lth c
onsi
ders
that
it w
ould
be
appr
opria
te
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
ese
reco
mm
enda
tions
in a
ppro
pria
te c
ircum
stan
ces.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
Oper
ator
s ar
e al
so w
orki
ng to
cla
rify
com
pany
op
erat
iona
l pra
ctic
es a
nd m
etho
ds o
f com
mun
icat
ion
onsh
ore
and
offs
hore
to p
reve
nt m
isun
ders
tand
ings
an
d m
isco
mm
unic
atio
ns fr
om o
ccur
ring.
39
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
37Co
nsid
erat
ion
shou
ld b
e gi
ven
to w
ays
to e
nsur
e th
at
cont
ract
ors
who
are
invo
lved
in b
arrie
r ins
talla
tion
(suc
h as
cem
entin
g co
mpa
nies
) hav
e a
dire
ct in
tere
st
in th
e pe
rfor
man
ce o
f wor
ks to
a p
rope
r sta
ndar
d.
In p
artic
ular
, con
side
ratio
n sh
ould
be
give
n to
(i)
prev
entin
g co
ntra
ctor
s fr
om a
void
ing
the
econ
omic
co
nseq
uenc
es o
f neg
ligen
t ins
talla
tion
of b
arrie
rs;
and/
or (i
i) im
posi
ng s
peci
fic le
gisl
ativ
e st
anda
rds
of
wor
kman
ship
on
cont
ract
ors
with
resp
ect t
o w
ell
cont
rol (
sim
ilar t
o th
ose
whi
ch p
rese
ntly
app
ly to
lic
ense
es).
Acce
pted
.
The
Com
mon
wea
lth n
otes
that
this
reco
mm
enda
tion,
if
prog
ress
ed, m
ay h
ave
sign
ifica
nt c
omm
erci
al a
nd
cont
ract
ual i
mpa
cts
for t
he o
pera
tions
of t
he o
ffsh
ore
petr
oleu
m in
dust
ry.
The
Com
mon
wea
lth c
onsi
ders
that
it is
app
ropr
iate
to
add
ress
sta
ndar
ds o
f wor
kman
ship
by
all p
artie
s in
volv
ed in
a d
rillin
g op
erat
ion
thro
ugh
cont
ract
ual
arra
ngem
ents
, rat
her t
han
legi
slat
ive
mec
hani
sms.
The
Com
mon
wea
lth u
nder
stan
ds th
at it
is a
ccep
ted
indu
stry
pra
ctic
e to
incl
ude
in c
ontr
acts
bet
wee
n op
erat
ors
and
cont
ract
ors
clau
ses
rela
ting
to
cont
ract
or li
abili
ty w
hich
pro
vide
reco
urse
whe
re th
e co
ntra
ctor
has
bee
n ne
glig
ent.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
Oper
ator
s ar
e al
so w
orki
ng to
cla
rify
com
pany
op
erat
iona
l pra
ctic
es a
nd m
etho
ds o
f com
mun
icat
ion
onsh
ore
and
offs
hore
to p
reve
nt m
isun
ders
tand
ings
an
d m
isco
mm
unic
atio
ns fr
om o
ccur
ring.
38H
oriz
onta
l or h
igh
angl
e pe
netr
atio
n of
a re
serv
oir
shou
ld b
e av
oide
d w
here
ver p
ract
icab
le u
ntil
such
tim
e as
the
appa
rent
pro
blem
s as
soci
ated
with
th
e ce
men
ting
of a
cas
ing
shoe
in th
ese
situ
atio
ns
are
satis
fact
orily
ove
rcom
e. If
a c
asin
g st
ring
does
pe
netr
ate
a w
ell h
oriz
onta
lly o
r at a
hig
h an
gle,
st
anda
rd p
ract
ice
shou
ld b
e to
inst
all t
wo
seco
ndar
y ba
rrie
rs in
add
ition
to th
e ce
men
ted
casi
ng s
hoe.
Not
acc
epte
d.
The
Com
mon
wea
lth n
otes
the
Com
mis
sion
er’s
view
s bu
t doe
s no
t agr
ee th
at h
oriz
onta
l, m
ulti-
late
ral
and
high
-ang
le d
rillin
g m
etho
ds s
houl
d be
avo
ided
. H
oriz
onta
l, m
ulti-
late
ral a
nd h
igh-
angl
e pr
oduc
tion
wel
ls a
re c
omm
only
dril
led
wor
ldw
ide
and
are
esse
ntia
l te
chno
logy
for e
ffici
ent r
eser
voir
drai
nage
.
The
Mon
tara
inci
dent
was
cau
sed
by o
pera
tor
com
plac
ency
and
a la
ck o
f adh
eren
ce to
sta
ndar
d op
erat
ing
proc
edur
es, n
ot th
e ex
tens
ion
of c
asin
g in
th
e ho
rizon
tal w
ell s
ectio
n.
40
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
39Th
e BO
P an
d rig
sho
uld
not m
ove
from
a w
ell u
ntil
barr
ier i
nteg
rity
has
been
ver
ified
.Ac
cept
ed.
The
Com
mon
wea
lth a
gree
s th
at th
e BO
P an
d rig
sh
ould
not
be
mov
ed fr
om a
wel
l unt
il th
e in
tegr
ity o
f al
l bar
riers
has
bee
n ve
rified
.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
40Ba
rrie
rs s
houl
d no
t be
inst
alle
d or
rem
oved
off
-lin
e.
The
derr
ick
shou
ld b
e lo
cate
d ov
er a
wel
l at t
he ti
me
of re
mov
al a
nd in
stal
latio
n of
any
bar
rier.
This
will
en
able
mor
e de
cisi
ve a
ctio
n to
be
take
n in
the
even
t a
prob
lem
aris
es.
Acce
pted
.
The
Com
mon
wea
lth a
ccep
ts th
at th
e de
rric
k sh
ould
be
over
the
wel
l dur
ing
inst
alla
tion
or re
mov
al o
f a b
arrie
r to
allo
w fo
r tim
ely
actio
n in
the
even
t of a
pro
blem
ar
isin
g.
How
ever
, the
Com
mon
wea
lth n
otes
that
ther
e ar
e a
num
ber o
f wel
l ope
ratio
ns th
at a
re p
erfo
rmed
dur
ing
the
wel
l pro
duct
ion
life
that
do
not r
equi
re a
der
rick
abov
e th
e w
ell,
such
as
wire
line,
slic
k lin
e, c
oil t
ubin
g,
hydr
aulic
snu
bbin
g un
it, s
ubsu
rfac
e sa
fety
val
ve a
nd
tree
rem
oval
ope
ratio
ns.
Purs
uant
to P
art 5
of t
he O
ffsh
ore
Petr
oleu
m a
nd
Gree
nhou
se G
as S
tora
ge (R
esou
rce
Man
agem
ent a
nd
Adm
inist
ratio
n) R
egul
atio
ns 2
011,
title
hold
ers
are
requ
ired
to c
ompl
y w
ith th
e st
anda
rds
and
proc
esse
s in
th
e W
OMP,
whi
ch h
as b
een
appr
oved
by
the
Regu
lato
r.
41
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
41Se
cond
ary
barr
iers
(inc
ludi
ng P
CCCs
) sho
uld
only
be
inst
alle
d, te
sted
, and
rem
oved
with
a B
OP in
pla
ce
unle
ss a
doc
umen
ted
risk
asse
ssm
ent i
ndic
ates
that
w
ell c
ontr
ol c
an b
e m
aint
aine
d at
all
times
.
Acce
pted
.
The
Com
mon
wea
lth a
ccep
ts th
e Co
mm
issi
oner
’s vi
ew.
In th
e ca
se o
f Mon
tara
, the
BOP
cou
ld n
ot b
e in
stal
led
on th
e H
1 w
ell p
rior t
o re
mov
al o
f the
PCC
C. A
BOP
is
not
app
licab
le in
eve
ry p
ossi
ble
wel
l ope
ratio
n as
a
wel
l con
trol
mea
sure
.
Purs
uant
to P
art 5
of t
he O
ffsh
ore
Petr
oleu
m a
nd
Gree
nhou
se G
as S
tora
ge (R
esou
rce
Man
agem
ent a
nd
Adm
inist
ratio
n) R
egul
atio
ns 2
011,
title
hold
ers
are
requ
ired
to c
ompl
y w
ith th
e st
anda
rds
and
proc
esse
s in
th
e W
OMP,
whi
ch h
as b
een
appr
oved
by
the
Regu
lato
r.
42PC
CCs
shou
ld b
e in
stal
led
in a
tim
ely
man
ner (
for
exam
ple,
to p
reve
nt c
orro
sion
in th
e M
LS a
ppar
atus
). N
on-i
nsta
llatio
n in
ord
er to
par
k a
BOP
is n
ot
acce
ptab
le.
Acce
pted
.
The
Com
mon
wea
lth a
ccep
ts t
hat
this
re
com
men
datio
n is
con
sist
ent
with
cur
rent
regu
lato
ry
requ
irem
ents
and
pra
ctic
es. P
ursu
ant
to P
art
5 of
the
Off
shor
e Pe
trol
eum
and
Gre
enho
use
Gas
Stor
age
(Res
ourc
e M
anag
emen
t and
Adm
inis
trat
ion)
Re
gula
tions
201
1, o
pera
tors
are
requ
ired
to in
form
th
e Re
gula
tor o
f wel
l act
ivity
as
a re
quire
men
t of
the
W
OM
P, in
clud
ing
inst
alla
tion
of P
CCCs
.
This
info
rmat
ion
is b
y ac
cept
ed in
dust
ry p
ract
ice
prov
ided
to th
e Re
gula
tor t
hrou
gh th
e da
ily d
rillin
g re
port
. Thi
s re
quire
men
t is
enfo
rced
und
er A
ustr
alia
’s ob
ject
ive-
base
d re
gim
e w
hich
impo
ses
resp
onsi
bilit
y on
ope
rato
rs fo
r mai
ntai
ning
wel
l con
trol
and
inte
grity
.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
Oper
ator
s ar
e al
so w
orki
ng to
cla
rify
com
pany
op
erat
iona
l pra
ctic
es a
nd m
etho
ds o
f com
mun
icat
ion
onsh
ore
and
offs
hore
to p
reve
nt m
isun
ders
tand
ings
an
d m
isco
mm
unic
atio
ns fr
om o
ccur
ring.
42
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
43W
ells
sho
uld
be re
-ent
ered
with
a B
OP in
pla
ce u
nles
s Ac
cept
ed.
a do
cum
ente
d ris
k as
sess
men
t ind
icat
es th
at w
ell
The
Com
mon
wea
lth a
ccep
ts th
e Co
mm
issi
oner
’s vi
ew
cont
rol c
an b
e m
aint
aine
d at
all
times
.bu
t not
es th
at a
BOP
is n
ot a
pplic
able
in e
very
pos
sibl
e w
ell o
pera
tion
as a
wel
l con
trol
mea
sure
.
This
reco
mm
enda
tion
is c
onsi
sten
t with
cur
rent
re
gula
tory
requ
irem
ents
and
acc
epte
d in
dust
ry
prac
tices
. Act
iviti
es re
latin
g to
the
inst
alla
tion,
re
mov
al o
r cha
nge
to b
arrie
rs m
ust b
e ap
prov
ed b
y th
e Re
gula
tor t
hrou
gh th
e W
OMP.
The
Com
mon
wea
lth a
lso
note
s th
at th
e da
ily d
rillin
g re
port
is s
uffic
ient
to a
ddre
ss th
ese
mat
ters
.
43
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
44An
y eq
uipm
ent (
incl
udin
g PC
CCs)
use
d as
, or t
o in
stal
l, a
barr
ier s
houl
d be
man
ufac
ture
d fo
r tha
t pur
pose
and
be
gen
eral
ly re
cogn
ised
as
fit fo
r pur
pose
. If e
quip
men
t is
des
igne
d in
-hou
se b
y a
licen
see
or ri
g op
erat
or it
sh
ould
not
be
appr
oved
for u
se u
nles
s an
d un
til it
is
subj
ecte
d to
exp
ert e
xter
nal a
naly
sis.
Acce
pted
in p
rinci
ple.
Whi
le th
is is
prim
arily
a m
atte
r for
indu
stry
, the
Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
fo
r ind
ustr
y to
car
eful
ly c
onsi
der a
dopt
ing
thes
e re
com
men
datio
ns.
The
Com
mon
wea
lth n
otes
the
Com
mis
sion
er’s
view
an
d su
gges
ts th
at in
dust
ry c
onsi
der c
aref
ully
if a
ll ba
rrie
r equ
ipm
ent n
eeds
to b
e su
bjec
t to
spec
ific
expe
rt e
xter
nal a
naly
sis.
Mat
eria
ls a
nd e
quip
men
t use
d in
dril
ling
oper
atio
ns
are
asse
ssed
in th
e W
OMP,
and
wer
e al
so c
onsi
dere
d in
Cla
use
502
of th
e Sc
hedu
le o
f Spe
cific
Req
uire
men
ts
as to
Off
shor
e Pe
trol
eum
Exp
lora
tion
and
Prod
uctio
n,
whi
ch h
as b
een
adop
ted
by th
e in
dust
ry in
gen
eral
as
part
of a
ccep
ted
indu
stry
pra
ctic
es.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
The
Com
mon
wea
lth w
ill a
lso
cons
ider
if e
lem
ents
of
the
prev
ious
ly le
gisl
ated
Sch
edul
e of
Spe
cific
Re
quire
men
ts a
s to
Offs
hore
Pet
role
um E
xplo
ratio
n an
d Pr
oduc
tion
shou
ld b
e in
corp
orat
ed in
to th
e Of
fsho
re
Petr
oleu
m a
nd G
reen
hous
e Ga
s Sto
rage
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n) R
egul
atio
ns 2
011.
44
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
45M
anuf
actu
rers
sho
uld
be c
onsu
lted
abou
t how
to
addr
ess
non-
rout
ine
oper
atio
nal p
robl
ems
affe
ctin
g th
eir w
ell c
ontr
ol e
quip
men
t.
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
is re
com
men
datio
n.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
46Dr
illin
g pr
ogra
ms
deal
ing
with
bar
rier i
nsta
llatio
n sh
ould
inco
rpor
ate
rele
vant
asp
ects
of m
anuf
actu
rer’s
in
stru
ctio
ns.
Acce
pted
.
The
Com
mon
wea
lth n
otes
the
Com
miss
ione
r’s v
iew
s and
co
nsid
ers t
hat a
s par
t of a
ny d
rillin
g pr
ogra
m th
e de
taile
d m
anuf
actu
rer’s
ope
ratin
g m
anua
l and
serv
ice
proc
edur
es
for e
quip
men
t use
d sh
ould
be
avai
labl
e on
site.
45
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
47An
y pr
o-fo
rmas
use
d by
lice
nsee
s, rig
ope
rato
rs
and
cont
ract
ors
for r
ecor
ding
info
rmat
ion
abou
t in
stal
latio
n of
bar
riers
sho
uld
expl
icitl
y pr
ovid
e fo
r ‘e
xcep
tion
repo
rtin
g’, t
hat i
s, th
e fo
rm s
houl
d in
clud
e pr
ovis
ion
for r
ecor
ding
any
unf
orse
en o
r unt
owar
d ev
ents
whi
ch o
ccur
in th
e co
urse
of i
nsta
llatio
n.
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
ese
reco
mm
enda
tions
.
The
Com
mon
wea
lth n
otes
that
, pur
suan
t to
Part
5
of th
e Of
fsho
re P
etro
leum
and
Gre
enho
use
Gas
Stor
age
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n)
Regu
latio
ns 2
011,
title
hold
ers
mus
t inf
orm
the
Regu
lato
r of w
ell a
ctiv
ity a
s a
requ
irem
ent o
f the
W
OMP.
This
info
rmat
ion
is p
rovi
ded
to th
e Re
gula
tor t
hrou
gh
the
daily
dril
ling
repo
rt. T
he C
omm
onw
ealth
con
side
rs
that
this
met
hod
of re
port
ing
is s
uffic
ient
.
Indu
stry
thro
ugh
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
Oper
ator
s ar
e w
orki
ng to
cla
rify
com
pany
ope
ratio
nal
prac
tices
and
met
hods
of c
omm
unic
atio
n on
shor
e an
d of
fsho
re to
pre
vent
mis
unde
rsta
ndin
gs a
nd
mis
com
mun
icat
ions
from
occ
urrin
g.
46
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
48Ca
refu
l con
side
ratio
n m
ust b
e gi
ven
to e
quip
men
t co
mpa
tibili
ty a
s pa
rt o
f wel
l con
stru
ctio
n de
sign
.Ac
cept
ed.
The
Com
mon
wea
lth a
ccep
ts th
at e
quip
men
t co
mpa
tibili
ty s
houl
d be
con
side
red
in th
e w
ell
cons
truc
tion
desi
gn p
hase
.
Mat
eria
ls a
nd e
quip
men
t use
d in
dril
ling
oper
atio
ns
are
cons
ider
ed b
y th
e Re
gula
tor i
n th
e W
OMP,
and
w
ere
also
con
side
red
in C
laus
e 50
2 of
the
prev
ious
ly
legi
slat
ed S
ched
ule
of S
peci
fic R
equi
rem
ents
as t
o Of
fsho
re P
etro
leum
Exp
lora
tion
and
Prod
uctio
n, w
hich
ha
s be
en a
dopt
ed b
y th
e in
dust
ry in
gen
eral
as
part
of
acce
pted
indu
stry
pra
ctic
es.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
The
Com
mon
wea
lth h
as c
omm
issi
oned
a c
onsu
ltanc
y to
dev
elop
a N
atio
nal L
egis
lativ
e Co
mpl
ianc
e Fr
amew
ork
(NLC
F) to
dev
elop
a c
onsi
sten
t bes
t pr
actic
e ap
proa
ch to
be
used
by
regu
lato
rs in
thei
r re
gula
tion
of A
ustr
alia
’s of
fsho
re p
etro
leum
indu
stry
in
the
area
s of
wel
l ope
ratio
ns, e
nviro
nmen
t and
in
tegr
ity. T
he N
LCF
will
be
com
plet
ed in
the
seco
nd
half
of 2
011.
In re
latio
n to
occ
upat
iona
l hea
lth a
nd s
afet
y co
nsid
erat
ions
, NO
PSA
has
incr
ease
d its
focu
s on
sa
fety
cas
e as
sess
men
ts a
nd th
roug
h its
insp
ectio
n of
dr
illin
g rig
s, re
gard
ing:
•Co
mm
and
and
cont
rol a
rrang
emen
ts: s
peci
fical
ly
incl
udin
g co
mm
unic
atio
n be
twee
n th
e tit
leho
lder
’s an
d op
erat
or’s
repr
esen
tativ
es o
nboa
rd d
rillin
g rig
s.
•Si
mul
tane
ous o
pera
tions
: spe
cific
ally
incl
udin
g sa
fety
-rel
ated
inte
rfac
e ar
rang
emen
ts b
etw
een
title
hold
ers
and
oper
ator
s of
sep
arat
e fa
cilit
ies
cond
uctin
g co
-loc
ated
sim
ulta
neou
s op
erat
ions
.
47
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
In a
dditi
on N
OPS
A ha
s in
crea
sed
its p
lann
ed in
spec
tion
freq
uenc
y fo
r man
ned
drill
ing
and
prod
uctio
n fa
cilit
ies
from
onc
e to
twic
e pe
r yea
r. A
recr
uitm
ent p
rogr
amm
e ha
s be
en in
stig
ated
to re
sour
ce th
is h
ighe
r fre
quen
cy.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
49Ba
tche
d dr
illin
g op
erat
ions
sho
uld
only
be
unde
rtak
en
afte
r car
eful
ass
essm
ent o
f the
spe
cial
risk
s w
hich
su
ch o
pera
tions
giv
e ris
e to
; wel
l con
trol
mus
t be
mai
ntai
ned
durin
g th
e co
urse
of b
atch
ed d
rillin
g op
erat
ions
.
Acce
pted
.
The
Com
mon
wea
lth a
ccep
ts th
e Co
mm
issi
oner
’s vi
ew b
ut c
onsi
ders
that
thes
e re
com
men
datio
ns a
re
esse
ntia
lly th
e sa
me
as ‘b
atch
ed d
rillin
g op
erat
ions
’ w
hich
occ
ur w
hen
mul
tiple
wel
ls a
re d
rille
d. O
pera
tors
ar
e re
spon
sibl
e un
der t
he O
PGGS
Act
for m
aint
aini
ng
wel
l con
trol
and
wel
l int
egrit
y.
48
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
50W
here
mul
tiple
wel
ls a
re d
rille
d, o
pera
tions
and
oc
curr
ence
s at
one
wel
l mus
t be
car
eful
ly a
sses
sed
for a
ny im
plic
atio
ns w
ith re
spec
t to
wel
l con
trol
at
othe
r wel
ls.
Acce
pted
.
This
reco
mm
enda
tion
is c
onsi
sten
t with
cur
rent
re
gula
tory
requ
irem
ents
and
acc
epte
d in
dust
ry
prac
tices
. Pur
suan
t to
Part
5 o
f the
Off
shor
e Pe
trol
eum
an
d Gr
eenh
ouse
Gas
Sto
rage
(Res
ourc
e M
anag
emen
t an
d Ad
min
istra
tion)
Reg
ulat
ions
201
1, d
rillin
g ac
tiviti
es
and
asso
ciat
ed ri
sks
are
asse
ssed
by
the
Regu
lato
r th
roug
h th
e W
OMP.
Sect
ion
569
of th
e OP
GGS
Act a
lso
requ
ires
petr
oleu
m
title
hold
ers
to c
arry
out
thei
r pet
role
um re
cove
ry
oper
atio
ns in
acc
orda
nce
with
goo
d oi
l fiel
d pr
actic
e.
49
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
51Th
e m
ere
fact
tha
t th
e rig
is o
ver t
he p
latf
orm
sh
ould
not
be
rega
rded
by
licen
sees
or r
egul
ator
s as
suf
ficie
nt ju
stifi
catio
n fo
r rel
ianc
e on
onl
y on
e ba
rrie
r. Th
e de
faul
t po
sitio
n sh
ould
be
that
pro
duci
ble
wel
ls a
re s
hut-
in w
hen
a rig
is m
oved
on
and
off a
pl
atfo
rm, o
r whe
n a
drill
ing
unit
is m
oved
bet
wee
n w
ells
on
a pl
atfo
rm.
Acce
pted
.
The
Com
mon
wea
lth a
ccep
ts t
hat
the
plac
emen
t of
th
e rig
ove
r the
pla
tfor
m s
houl
d no
t ju
stify
relia
nce
on o
ne b
arrie
r.
Unde
r Aus
tral
ia’s
obje
ctiv
e-ba
sed
regi
me,
resp
onsi
bilit
y fo
r mai
ntai
ning
wel
l con
trol
and
wel
l int
egrit
y is
pl
aced
on
oper
ator
s.
The
Com
mon
wea
lth u
nder
stan
ds th
at a
ccep
ted
indu
stry
pra
ctic
e is
for t
wo
test
ed/v
erifi
ed w
ell
barr
iers
to b
e av
aila
ble
durin
g al
l wel
l act
iviti
es a
nd
oper
atio
ns, i
nclu
ding
sus
pend
ed a
nd a
band
oned
wel
ls,
whe
re a
pre
ssur
e di
ffer
entia
l exi
sts
that
may
cau
se
unco
ntro
lled
outfl
ow fr
om th
e bo
rehe
ad/w
ellh
ead
to
the
exte
rnal
env
ironm
ent.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
Furt
herm
ore,
the
Com
mon
wea
lth h
as is
sued
a
Stat
emen
t of E
xpec
tatio
ns to
the
Desi
gnat
ed
Auth
oriti
es a
nd N
OPS
A w
hich
set
s ou
t the
Min
iste
r fo
r Res
ourc
es a
nd E
nerg
y’s
expe
ctat
ions
, as
the
resp
onsi
ble
Com
mon
wea
lth M
inis
ter,
on m
atte
rs
rela
ting
to th
e ex
erci
se o
f the
ir fu
nctio
ns a
nd p
ower
s un
der t
he O
PGG
S Ac
t and
ass
ocia
ted
regu
latio
ns a
nd
prin
cipl
es o
f bes
t pra
ctic
e re
gula
tory
adm
inis
trat
ion.
The
Com
mon
wea
lth h
as a
lso
com
mis
sion
ed a
co
nsul
tanc
y to
dev
elop
a N
atio
nal L
egis
lativ
e Co
mpl
ianc
e Fr
amew
ork
(NLC
F) to
dev
elop
a c
onsi
sten
t be
st p
ract
ice
appr
oach
to b
e us
ed b
y re
gula
tors
in th
eir
regu
latio
n of
Aus
tral
ia’s
offs
hore
pet
role
um in
dust
ry.
The
NLC
F w
ill b
e co
mpl
eted
in th
e se
cond
hal
f of 2
011.
In re
latio
n to
occ
upat
iona
l hea
lth a
nd s
afet
y co
nsid
erat
ions
, NO
PSA
has
incr
ease
d its
focu
s on
sa
fety
cas
e as
sess
men
ts a
nd th
roug
h its
insp
ectio
n
50
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
of d
rillin
g rig
s, re
gard
ing:
•Co
mm
and
and
cont
rol a
rrang
emen
ts: s
peci
fical
ly
incl
udin
g co
mm
unic
atio
n be
twee
n th
e tit
leho
lder
’s an
d op
erat
or’s
repr
esen
tativ
es o
nboa
rd d
rillin
g rig
s.
•Si
mul
tane
ous o
pera
tions
: spe
cific
ally
incl
udin
g sa
fety
-rel
ated
inte
rfac
e ar
rang
emen
ts b
etw
een
title
hold
ers
and
oper
ator
s of
sep
arat
e fa
cilit
ies
cond
uctin
g co
-loc
ated
sim
ulta
neou
s op
erat
ions
.
In a
dditi
on N
OPS
A ha
s in
crea
sed
its p
lann
ed in
spec
tion
freq
uenc
y fo
r man
ned
drill
ing
and
prod
uctio
n fa
cilit
ies
from
onc
e to
twic
e pe
r yea
r. A
recr
uitm
ent p
rogr
amm
e ha
s be
en in
stig
ated
to re
sour
ce th
is h
ighe
r fre
quen
cy.
51
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
52Re
leva
nt p
erso
nnel
from
lice
nsee
s an
d rig
ope
rato
rs
shou
ld m
eet f
ace
to fa
ce to
agr
ee o
n, a
nd
docu
men
t, w
ell c
ontr
ol is
sues
/arr
ange
men
ts p
rior t
o co
mm
ence
men
t of d
rillin
g op
erat
ions
. Wel
l con
trol
sh
ould
be
rega
rded
as
a so
-cal
led
SIM
OP to
sig
nify
its
criti
cal i
mpo
rtan
ce to
bot
h lic
ense
es a
nd ri
g op
erat
ors,
and
to e
nsur
e th
at th
ey e
ach
take
resp
onsi
bilit
y fo
r ac
hiev
emen
t and
mai
nten
ance
of w
ell c
ontr
ol.
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
ese
reco
mm
enda
tions
.
The
Com
mon
wea
lth a
lso
note
s th
at o
pera
tors
alre
ady
have
wel
l con
trol
and
ope
ratin
g st
anda
rds
in p
lace
th
at a
re d
etai
led
in th
e W
OMP
and
appr
oved
by
the
Regu
lato
r.
The
Com
mon
wea
lth u
nder
stan
ds th
at th
e pr
imar
y co
mm
unic
atio
n to
ols
for s
ervi
ce p
rovi
ders
incl
ude
the
drill
ing
oper
atio
nal p
rogr
amm
e an
d in
duct
ion
sess
ions
, w
here
info
rmat
ion
is p
rovi
ded
to a
ll pe
rson
nel.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
Oper
ator
s ar
e al
so w
orki
ng to
cla
rify
com
pany
op
erat
iona
l pra
ctic
es a
nd m
etho
ds o
f com
mun
icat
ion
onsh
ore
and
offs
hore
to p
reve
nt m
isun
ders
tand
ings
an
d m
isco
mm
unic
atio
ns fr
om o
ccur
ring.
In re
latio
n to
occ
upat
iona
l hea
lth a
nd s
afet
y co
nsid
erat
ions
, NO
PSA
has
incr
ease
d its
focu
s on
sa
fety
cas
e as
sess
men
ts a
nd th
roug
h its
insp
ectio
n of
dr
illin
g rig
s, re
gard
ing:
•Co
mm
and
and
cont
rol a
rrang
emen
ts: s
peci
fical
ly
incl
udin
g co
mm
unic
atio
n be
twee
n th
e tit
leho
lder
’s an
d op
erat
or’s
repr
esen
tativ
es o
nboa
rd d
rillin
g rig
s.
•Si
mul
tane
ous o
pera
tions
: spe
cific
ally
incl
udin
g sa
fety
-rel
ated
inte
rfac
e ar
rang
emen
ts b
etw
een
title
hold
ers
and
oper
ator
s of
sep
arat
e fa
cilit
ies
cond
uctin
g co
-loc
ated
sim
ulta
neou
s op
erat
ions
.
In a
dditi
on N
OPS
A ha
s in
crea
sed
its p
lann
ed in
spec
tion
freq
uenc
y fo
r man
ned
drill
ing
and
prod
uctio
n fa
cilit
ies
from
onc
e to
twic
e pe
r yea
r. A
recr
uitm
ent p
rogr
amm
e ha
s be
en in
stig
ated
to re
sour
ce th
is h
ighe
r fre
quen
cy.
53Pr
ior t
o co
mm
ence
men
t of d
rillin
g op
erat
ions
, sen
ior
repr
esen
tativ
es o
f the
lice
nsee
and
rig
oper
ator
sho
uld
exch
ange
cer
tifica
tes
to th
e ef
fect
that
thei
r res
pect
ive
key
pers
onne
l and
con
trac
tors
hav
e be
en in
form
ed in
w
ritin
g of
agr
eed
wel
l con
trol
arr
ange
men
ts.
54In
form
atio
n re
leva
nt to
wel
l con
trol
mus
t be
capt
ured
an
d co
mm
unic
ated
with
in a
nd b
etw
een
licen
sees
and
rig
ope
rato
rs (a
nd re
leva
nt th
ird p
arty
con
trac
tors
), in
a
man
ner w
hich
ens
ures
it c
omes
to th
e at
tent
ion
of
rele
vant
per
sonn
el. I
n pa
rtic
ular
, pro
toco
ls s
houl
d be
de
velo
ped
to e
nsur
e th
at c
hang
es in
shi
ft a
nd h
itch
do
not o
pera
te a
s co
mm
unic
atio
n ba
rrie
rs.
55Al
l com
mun
icat
ions
bet
wee
n on
-rig
and
ons
hore
pe
rson
nel r
elat
ing
to w
ell c
ontr
ol s
houl
d be
do
cum
ente
d in
a ti
mel
y m
anne
r.
52
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
56Lo
gist
ics
man
agem
ent o
f wel
l con
trol
equ
ipm
ent
shou
ld b
e co
nduc
ted
in s
uch
a w
ay a
s to
ope
rate
as
a ch
eck
agai
nst d
efici
ent w
ell c
ontr
ol p
ract
ices
, for
ex
ampl
e, u
se o
f ser
ial n
umbe
rs to
trac
k av
aila
bilit
y, te
stin
g, a
nd d
eplo
ymen
t of w
ell c
ontr
ol e
quip
men
t.
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
is re
com
men
datio
n.
The
Com
mon
wea
lth c
onsi
ders
that
the
logi
stic
s m
anag
emen
t pro
cess
of a
n or
gani
satio
n pr
ovid
es a
n im
port
ant m
echa
nism
for e
nsur
ing
that
all
appr
opria
te
docu
men
tatio
n, c
ertifi
catio
n, te
stin
g re
port
s et
c, th
at
confi
rm th
at a
par
ticul
ar p
iece
of e
quip
men
t bei
ng
used
for a
wel
l (or
oth
er a
ctiv
ity) a
re fi
t for
pur
pose
, ar
e ea
sily
acc
essi
ble,
trac
eabl
e an
d cl
early
link
ed to
the
part
icul
ar p
iece
of e
quip
men
t.
How
ever
, the
Com
mon
wea
lth n
otes
that
the
logi
stic
s m
anag
emen
t tea
m is
not
the
appr
opria
te te
am to
ass
ess
the
adeq
uacy
of w
ell m
anag
emen
t or w
ell d
esig
n.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
53
Deci
sion
-mak
ing
abou
t wel
l con
trol
issu
es s
houl
d be
pr
ofes
sion
alis
ed. I
ndus
try
part
icip
ants
mus
t rec
ogni
se
that
dec
isio
n-m
aker
s ow
e in
depe
nden
t dut
ies
to th
e pu
blic
, not
just
thei
r em
ploy
er o
r prin
cipa
l, in
rela
tion
to w
ell c
ontr
ol. R
isk
man
agem
ent i
n th
e co
ntex
t of
wel
l con
trol
nee
ds to
be
unde
rsto
od a
s an
eth
ical
/pr
ofes
sion
al d
uty.
Self-
regu
latio
n co
ntem
plat
es
self-
regu
latio
n by
the
indu
stry
, not
just
by
indi
vidu
al
licen
sees
and
ope
rato
rs.
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
ese
reco
mm
enda
tions
.
The
Com
mon
wea
lth a
lso
note
s th
at o
pera
tors
alre
ady
have
wel
l con
trol
and
ope
ratin
g st
anda
rds
in p
lace
.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
Oper
ator
s ar
e al
so w
orki
ng to
cla
rify
com
pany
op
erat
iona
l pra
ctic
es a
nd m
etho
ds o
f com
mun
icat
ion
onsh
ore
and
offs
hore
to p
reve
nt m
isun
ders
tand
ings
an
d m
isco
mm
unic
atio
ns fr
om o
ccur
ring.
In re
latio
n to
occ
upat
iona
l hea
lth a
nd s
afet
y co
nsid
erat
ions
, NO
PSA
has
incr
ease
d its
focu
s on
sa
fety
cas
e as
sess
men
ts a
nd th
roug
h its
insp
ectio
n of
dr
illin
g rig
s, re
gard
ing:
•Co
mm
and
and
cont
rol a
rrang
emen
ts: s
peci
fical
ly
incl
udin
g co
mm
unic
atio
n be
twee
n th
e tit
leho
lder
’s an
d op
erat
or’s
repr
esen
tativ
es o
nboa
rd d
rillin
g rig
s.
•Si
mul
tane
ous o
pera
tions
: spe
cific
ally
incl
udin
g sa
fety
-rel
ated
inte
rfac
e ar
rang
emen
ts b
etw
een
title
hold
ers
and
oper
ator
s of
sep
arat
e fa
cilit
ies
cond
uctin
g co
-loc
ated
sim
ulta
neou
s op
erat
ions
.
In a
dditi
on N
OPS
A ha
s in
crea
sed
its p
lann
ed in
spec
tion
freq
uenc
y fo
r man
ned
drill
ing
and
prod
uctio
n fa
cilit
ies
from
onc
e to
twic
e pe
r yea
r. A
recr
uitm
ent p
rogr
amm
e ha
s be
en in
stig
ated
to re
sour
ce th
is h
ighe
r fre
quen
cy.
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
57 58Ex
istin
g w
ell c
ontr
ol tr
aini
ng p
rogr
ams
shou
ld b
e re
view
ed b
y th
e in
dust
ry, r
egul
ator
s an
d tr
aini
ng
prov
ider
s, w
ith a
focu
s on
wel
l con
trol
acc
iden
ts th
at
have
occ
urre
d (in
Aus
tral
ia a
nd o
vers
eas)
.
59A
spec
ific
focu
s on
wel
l con
trol
trai
ning
sho
uld
be
man
dato
ry fo
r key
per
sonn
el in
volv
ed in
wel
l con
trol
op
erat
ions
(inc
ludi
ng b
oth
on-r
ig p
erso
nnel
and
on
shor
e pe
rson
nel i
n su
perv
isor
y ca
paci
ties)
.
60Li
cens
ees
and
rig o
pera
tors
(and
third
par
ty c
ontr
acto
rs
invo
lved
in w
ell c
ontr
ol o
pera
tions
) sho
uld
spec
ifica
lly
asse
ss, a
nd d
ocum
ent,
the
natu
re a
nd e
xten
t of
know
ledg
e/sk
ills
of re
leva
nt p
erso
nnel
in re
latio
n to
wel
l con
trol
(inc
ludi
ng fa
mili
arity
of p
erso
nnel
w
ith a
genc
y-sp
ecifi
c re
quire
men
ts a
nd p
roce
dure
s).
Trai
ning
nee
ds a
nd o
ppor
tuni
ties
shou
ld b
e id
entifi
ed.
This
pro
cess
sho
uld
take
pla
ce o
n en
gage
men
t and
at
appr
opria
te in
terv
als.
54
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
61Li
cens
ees,
rig o
pera
tors
, and
rele
vant
third
par
ty
cont
ract
ors
shou
ld d
evel
op w
ell c
ontr
ol c
ompe
tenc
y st
anda
rds
for t
heir
key
pers
onne
l. W
here
ver p
ossi
ble,
th
e co
mpe
tenc
ies
of k
ey p
erso
nnel
sho
uld
be
benc
hmar
ked
agai
nst t
heir
role
s an
d re
spon
sibi
litie
s.
Acce
pted
.
Whi
le th
is is
prim
arily
an
indu
stry
ope
ratio
nal m
atte
r, th
e Co
mm
onw
ealth
con
side
rs th
at it
wou
ld b
e ap
prop
riate
for i
ndus
try
to c
aref
ully
con
side
r ado
ptin
g th
ese
reco
mm
enda
tions
.
The
Com
mon
wea
lth n
otes
that
ope
rato
rs a
lread
y ha
ve
wel
l con
trol
and
ope
ratin
g st
anda
rds
in p
lace
.
Follo
win
g th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s, th
e of
fsho
re p
etro
leum
indu
stry
has
per
form
ed it
s ow
n sa
fety
che
cks.
A nu
mbe
r of c
ompa
nies
hav
e im
plem
ente
d fu
rthe
r act
ions
incl
udin
g re
view
s of
wel
l pl
ans,
drill
ing
proc
esse
s, bl
ow-o
ut c
ontin
genc
y pl
ans,
test
ing
freq
uenc
ies
and
trai
ning
of p
erso
nnel
.
Indu
stry
, thr
ough
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA),
the
peak
indu
stry
bo
dy re
pres
entin
g Au
stra
lia’s
offs
hore
oil
and
gas
indu
stry
, has
dev
elop
ed a
Sel
f-Au
dit T
ool t
o gu
ide
com
pani
es in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd
an a
gree
d Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent p
roce
dure
s.
Oper
ator
s ar
e al
so w
orki
ng to
cla
rify
com
pany
op
erat
iona
l pra
ctic
es a
nd m
etho
ds o
f com
mun
icat
ion
onsh
ore
and
offs
hore
to p
reve
nt m
isun
ders
tand
ings
an
d m
isco
mm
unic
atio
ns fr
om o
ccur
ring.
In re
latio
n to
occ
upat
iona
l hea
lth a
nd s
afet
y co
nsid
erat
ions
, NO
PSA
has
incr
ease
d its
focu
s on
sa
fety
cas
e as
sess
men
ts a
nd th
roug
h its
insp
ectio
n of
dr
illin
g rig
s, re
gard
ing:
•Co
mm
and
and
cont
rol a
rrang
emen
ts: s
peci
fical
ly
incl
udin
g co
mm
unic
atio
n be
twee
n th
e tit
leho
lder
’s an
d op
erat
or’s
repr
esen
tativ
es o
nboa
rd d
rillin
g rig
s.
•Si
mul
tane
ous o
pera
tions
: spe
cific
ally
incl
udin
g sa
fety
-rel
ated
inte
rfac
e ar
rang
emen
ts b
etw
een
title
hold
ers
and
oper
ator
s of
sep
arat
e fa
cilit
ies
cond
uctin
g co
-loc
ated
sim
ulta
neou
s op
erat
ions
.
In a
dditi
on N
OPS
A ha
s in
crea
sed
its p
lann
ed in
spec
tion
freq
uenc
y fo
r man
ned
drill
ing
and
prod
uctio
n fa
cilit
ies
from
onc
e to
twic
e pe
r yea
r. A
recr
uitm
ent p
rogr
amm
e ha
s be
en in
stig
ated
to re
sour
ce th
is h
ighe
r fre
quen
cy.
62Li
cens
ees,
rig o
pera
tors
and
rele
vant
third
par
ty
cont
ract
ors
shou
ld d
evel
op w
ell c
ontr
ol c
ompe
tenc
y st
anda
rds
for k
ey p
erso
nnel
in o
ther
ent
ities
invo
lved
in
wel
l con
trol
ope
ratio
ns.
55
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
63Ac
hiev
emen
t and
mai
nten
ance
of w
ell c
ontr
ol
shou
ld b
e w
ritte
n in
to th
e jo
b re
spon
sibi
litie
s of
key
pe
rson
nel,
at e
very
leve
l up
to a
nd in
clud
ing
CEOs
. Th
at is
, a fu
nctio
nal l
ine
of a
ccou
ntab
ility
for w
ell
cont
rol m
ust e
xist
up
to, a
nd in
clud
ing,
CEO
s.
Acce
pted
.
The
achi
evem
ent a
nd m
aint
enan
ce o
f wel
l con
trol
is
fund
amen
tal t
o th
e pe
trol
eum
indu
stry
mai
ntai
ning
its
licen
ce to
ope
rate
.
64Su
perv
isio
n/ov
ersi
ght o
f wel
l con
trol
ope
ratio
ns
(with
in li
cens
ees,
rig o
pera
tors
and
by
regu
lato
rs) m
ust
occu
r with
out a
ssum
ing
adhe
renc
e to
goo
d oi
lfiel
d pr
actic
e. T
he o
ppos
ite a
ssum
ptio
n sh
ould
pre
vail:
na
mel
y ad
here
nce
to g
ood
oilfi
eld
prac
tice
may
wel
l be
com
prom
ised
by
the
purs
uit o
f tim
e an
d co
st s
avin
gs.
Not
ed.
The
Com
mon
wea
lth n
otes
the
Com
mis
sion
er’s
view
.
65Li
cens
ees
and
rig o
pera
tors
sho
uld
be a
stut
e in
en
surin
g th
at c
orpo
rate
sys
tem
s an
d cu
lture
enc
oura
ge
rath
er th
an d
isco
urag
e ra
isin
g of
wel
l con
trol
issu
es.
For i
nsta
nce,
do
perf
orm
ance
bon
uses
or r
ewar
ds
actu
ally
enc
oura
ge o
r dis
cour
age
repo
rtin
g of
issu
es?
Is
ther
e a
syst
em in
pla
ce to
ena
ble
anon
ymou
s re
port
ing
of w
ell c
ontr
ol c
once
rns?
Wha
t whi
stle
blow
er
prot
ectio
ns a
re in
pla
ce?
Acce
pted
in p
rinci
ple.
The
Com
mon
wea
lth n
otes
the
ques
tions
rais
ed b
y th
e Co
mm
issi
oner
, whi
ch a
re a
ppro
pria
te fo
r ind
ustr
y to
re
spon
d to
.
56
57
Chapter 4 of the Montara ReportThe Regulatory Regime: Well Integrity and Safety
Chapter 4 of the Report – The Regulatory Regime considers the adequacy of the existing regulatory regime as it applies to offshore petroleum activities, including compliance and enforcement. The chapter contains 12 of 105 recommendations.
58
Chap
ter
4 –
The
Regu
lato
ry R
egim
e: W
ell I
nteg
rity
and
Safe
ty
RECO
MM
ENDA
TIO
NS
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
66Th
e In
quiry
sup
port
s th
e ob
ject
ive
(rath
er th
an
pres
crip
tive)
app
roac
h to
regu
latio
n no
w fo
llow
ed
in A
ustr
alia
. H
owev
er, t
he p
endu
lum
has
sw
ung
too
far a
way
from
pre
scrip
tive
stan
dard
s. In
som
e ar
eas
rela
ting
to w
ell i
nteg
rity
ther
e ne
eds
to b
e m
inim
um
stan
dard
s.
Acce
pted
in p
art.
The
Com
mon
wea
lth s
uppo
rts
the
obje
ctiv
e-ba
sed
regi
me
for t
he re
gula
tion
of o
ffsh
ore
petr
oleu
m
activ
ities
and
not
es th
at th
is re
gim
e w
ill b
e fu
rthe
r en
hanc
ed b
y th
e es
tabl
ishm
ent o
f a s
ingl
e na
tiona
l re
gula
tor f
or o
ffsh
ore
petr
oleu
m, m
iner
al a
nd
gree
nhou
se g
as s
tora
ge a
ctiv
ities
.
The
Aust
ralia
n ob
ject
ive-
base
d re
gim
e pl
aces
the
onus
on
the
indu
stry
to e
nsur
e an
d de
mon
stra
te
to re
gula
tors
that
the
risks
of a
n in
cide
nt re
latin
g to
oil
and
gas
oper
atio
ns a
re re
duce
d to
‘as
low
as
reas
onab
ly p
ract
icab
le’. T
he re
gim
e en
sure
s fle
xibi
lity
in o
pera
tiona
l mat
ters
to m
eet t
he u
niqu
e na
ture
of
diff
erin
g pr
ojec
ts, a
nd a
void
s a
'low
est c
omm
on
deno
min
ator
' app
roac
h to
regu
latio
n th
at c
an b
e ob
serv
ed in
a p
resc
riptiv
e re
gim
e. T
he o
bjec
tive-
base
d re
gim
e is
not
sel
f-re
gula
tion
by in
dust
ry, a
s in
dust
ry
mus
t dem
onst
rate
to re
gula
tors
– a
nd re
gula
tors
m
ust a
sses
s an
d ap
prov
e or
not
app
rove
– th
at it
ha
s re
duce
d th
e ris
ks o
f an
inci
dent
to a
s lo
w a
s re
ason
ably
pra
ctic
able
in o
rder
to c
ondu
ct o
pera
tions
.
An im
port
ant f
eatu
re o
f obj
ectiv
e-ba
sed
regu
latio
n is
that
it e
ncou
rage
s an
impr
ovem
ent r
athe
r tha
n a
com
plia
nce
men
talit
y. It
is e
ssen
tial t
hat a
regu
lato
ry
syst
em e
ncou
rage
the
crea
tor o
f the
risk
to m
ove
The
Min
iste
r for
Res
ourc
es a
nd E
nerg
y in
his
spe
ech
to
the
Parli
amen
t on
24 N
ovem
ber 2
010
reaf
firm
ed th
e Co
mm
onw
ealth
’s co
mm
itmen
t to
the
esta
blis
hmen
t of
a na
tiona
l reg
ulat
or fo
r off
shor
e pe
trol
eum
act
iviti
es
by 1
Jan
uary
201
2.
In a
dditi
on, t
he C
omm
onw
ealth
has
exp
ande
d th
e fu
nctio
ns o
f NO
PSA
unde
r the
OPG
GS
Act t
o in
clud
e th
e no
n-oc
cupa
tiona
l hea
lth a
nd s
afet
y (O
HS)
asp
ects
of
str
uctu
ral i
nteg
rity
for f
acili
ties,
wel
ls a
nd w
ell-
rela
ted
equi
pmen
t in
Com
mon
wea
lth w
ater
s. Th
is
refo
rm a
lso
appl
ied
an O
HS
duty
of c
are
to p
etro
leum
an
d gr
eenh
ouse
gas
title
hold
ers
in re
latio
n to
wel
ls
and
wel
l-re
late
d eq
uipm
ent,
and
impr
oved
NO
PSA’
s in
spec
tion
and
inve
stig
atio
n po
wer
s in
rela
tion
to
susp
ecte
d br
each
es.
The
Offs
hore
Pet
role
um a
nd G
reen
hous
e Ga
s St
orag
e (R
esou
rce
Man
agem
ent a
nd A
dmin
istra
tion)
Re
gula
tions
201
1 gi
ve a
ffec
t to
thes
e am
endm
ents
by
pro
vidi
ng N
OPS
A w
ith re
gula
tory
resp
onsi
bilit
y fo
r as
sess
ing
WO
MPs
and
ass
ocia
ted
wel
l act
iviti
es.
From
201
2, th
e N
atio
nal O
ffsh
ore
Petr
oleu
m S
afet
y an
d En
viro
nmen
tal M
anag
emen
t Aut
horit
y (N
OPS
EMA)
w
ill h
ave
resp
onsi
bilit
y fo
r reg
ulat
ing
wel
l ope
ratio
ns
and
inte
grity
; env
ironm
enta
l pla
ns a
nd O
il Sp
ill
Cont
inge
ncy
Plan
s; a
nd o
ccup
atio
nal h
ealth
and
59
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
beyo
nd m
inim
um s
tand
ards
in a
con
tinuo
us e
ffor
t fo
r im
prov
emen
t and
not
just
acc
ept t
he m
inim
um
stan
dard
. The
risk
of s
peci
fic s
tand
ards
is th
at th
ey c
an
shift
the
burd
en o
f res
pons
ibili
ty fr
om th
e op
erat
or to
th
e go
vern
men
t and
stifl
e in
nova
tion.
The
Aust
ralia
n ob
ject
ive-
base
d re
gim
e se
eks
to
mai
ntai
n cl
arity
that
the
oper
ator
is re
spon
sibl
e fo
r ev
alua
ting
risk
and
achi
evin
g fit
for p
urpo
se d
esig
n th
at re
duce
s ris
k to
‘as
low
as
reas
onab
ly p
ract
icab
le’.
Pres
crip
tive-
base
d re
gula
tion
focu
ses
on m
inim
um
com
plia
nce,
requ
ires
freq
uent
am
endm
ent a
nd
relie
s he
avily
on
the
abili
ty o
f leg
isla
tive
draf
ters
to
unde
rsta
nd a
nd a
ntic
ipat
e th
e ris
ks a
nd o
pera
tiona
l en
viro
nmen
t of t
he in
dust
ry.
safe
ty in
Com
mon
wea
lth w
ater
s. AM
SA w
ill w
ork
with
N
OPSE
MA
to d
evel
op a
gree
d ar
rang
emen
ts to
revi
ew
Oil S
pill
Cont
inge
ncy
Plan
s. T
he p
roce
dura
l fra
mew
ork
supp
ortin
g th
e ag
reed
arr
ange
men
ts w
ill b
e de
velo
ped
by R
ET a
nd A
MSA
in c
onsu
ltatio
n w
ith D
SEW
PaC.
Also
, und
er th
is m
odel
, the
Sta
tes
and
Nor
ther
n Te
rrito
ry w
ill b
e ab
le to
con
fer p
ower
s fo
r the
re
gula
tion
of o
ffsh
ore
petr
oleu
m a
ctiv
ities
und
er th
eir
resp
ectiv
e le
gisl
atio
n to
NO
PSEM
A fo
r coa
stal
wat
ers
(ie u
p to
the
thre
e na
utic
al m
ile li
mit)
.
The
Com
mon
wea
lth h
as a
lso
com
mis
sion
ed a
co
nsul
tanc
y to
dev
elop
a N
atio
nal L
egis
lativ
e Co
mpl
ianc
e Fr
amew
ork
(NLC
F) to
dev
elop
a c
onsi
sten
t be
st p
ract
ice
appr
oach
to b
e us
ed b
y re
gula
tors
in th
eir
regu
latio
n of
Aus
tral
ia’s
offs
hore
pet
role
um in
dust
ry
in th
e ar
eas
of w
ell o
pera
tions
, env
ironm
ent a
nd
inte
grity
. The
NLC
F w
ill b
e co
mpl
eted
in th
e se
cond
ha
lf of
201
1.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
The
Com
mon
wea
lth w
ill a
lso
cons
ider
if e
lem
ents
of
the
prev
ious
ly le
gisl
ated
Sch
edul
e of
Spe
cific
60
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
Requ
irem
ents
as t
o Of
fsho
re P
etro
leum
Exp
lora
tion
and
Prod
uctio
n sh
ould
be
inco
rpor
ated
into
the
Offs
hore
Pe
trol
eum
and
Gre
enho
use
Gas S
tora
ge (R
esou
rce
Man
agem
ent a
nd A
dmin
istra
tion)
Reg
ulat
ions
201
1.
In a
dditi
on, t
he in
dust
ry, t
hrou
gh th
e Au
stra
lian
Petr
oleu
m P
rodu
ctio
n an
d Ex
plor
atio
n As
soci
atio
n (A
PPEA
), th
e pe
ak in
dust
ry b
ody
repr
esen
ting
Aust
ralia
’s of
fsho
re o
il an
d ga
s in
dust
ry, h
as
deve
lope
d a
Self-
Audi
t Too
l to
guid
e co
mpa
nies
in
the
man
agem
ent o
f wel
l ope
ratio
ns, a
nd a
n ag
reed
Au
stra
lian
indu
stry
pos
ition
on
Cap
and
Cont
ainm
ent
proc
edur
es.
67To
bet
ter e
nsur
e th
at ‘r
isks
’ are
iden
tified
and
man
aged
in
acc
orda
nce
with
sou
nd e
ngin
eerin
g pr
inci
ples
an
d go
od o
ilfiel
d pr
actic
e, it
is re
com
men
ded
that
re
gula
tion
25(1
)(a)(i
) and
(2)(a
)(i) o
f the
Man
agem
ent
of W
ell O
pera
tions
Reg
ulat
ions
, be
rew
orde
d as
fo
llow
s: ‘A
title
hold
er m
ust n
ot c
omm
ence
/con
tinue
a
wel
l act
ivity
if…
a w
ell i
nteg
rity
haza
rd e
xist
s in
re
latio
n to
the
wel
l’.
Acce
pted
.
The
Com
mon
wea
lth n
otes
that
ther
e is
alre
ady
a re
quire
men
t in
the
OPGG
S Ac
t for
the
oper
ator
to ta
ke
all r
easo
nabl
e st
eps
to id
entif
y w
ell i
nteg
rity
haza
rds
and
cont
rol r
isks
to ‘a
s lo
w a
s re
ason
ably
pra
ctic
able
’.
Part
5, D
ivis
ion
8 of
the
Offs
hore
Pet
role
um a
nd
Gree
nhou
se G
as S
tora
ge (R
esou
rce
Man
agem
ent a
nd
Adm
inist
ratio
n) R
egul
atio
ns 2
011
give
s af
fect
to th
is
reco
mm
enda
tion.
61
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
68Th
e de
finiti
on o
f ‘go
od o
ilfiel
d pr
actic
e’ in
the
OPGG
S Ac
t is
undu
ly n
arro
w.
The
curr
ent d
efini
tion
is in
capa
ble
of a
pplic
atio
n ex
cept
whe
re th
ings
‘are
ge
nera
lly a
ccep
ted
as g
ood
and
safe
’. Th
e de
finiti
on
shou
ld b
e am
ende
d su
ch th
at ‘g
ood
oilfi
eld
prac
tice
incl
udes
……
’.
Acce
pted
.
The
Com
mon
wea
lth a
gree
s th
at a
men
dmen
ts to
the
defin
ition
of ‘
good
oil
field
pra
ctic
e’ a
re re
quire
d.
This
am
endm
ent w
ould
be
cons
iste
nt w
ith
Aust
ralia
’s cu
rren
t non
-pre
scrip
tive
(obj
ectiv
e-ba
sed)
pe
trol
eum
regu
lato
ry re
gim
e. S
uch
a re
gim
e al
low
s fo
r the
intr
oduc
tion
of n
ew a
nd im
prov
ed o
pera
tor
proc
esse
s an
d pr
oced
ures
in re
spon
se to
tech
nolo
gies
an
d ot
her c
ircum
stan
ces
whi
le a
dher
ing
to th
e ke
y le
gisl
ativ
e pr
inci
ples
.
As th
e De
part
men
t with
pol
icy
resp
onsi
bilit
y fo
r the
Of
fsho
re P
etro
leum
and
Gre
enho
use
Gas S
tora
ge A
ct
2006
(and
its
asso
ciat
ed re
gula
tions
), co
nsid
erat
ion
of
this
reco
mm
enda
tion
will
be
led
by D
RET.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
The
Com
mon
wea
lth w
ill a
lso
cons
ider
if e
lem
ents
of
the
prev
ious
ly le
gisl
ated
Sch
edul
e of
Spe
cific
Re
quire
men
ts a
s to
Offs
hore
Pet
role
um E
xplo
ratio
n an
d Pr
oduc
tion
shou
ld b
e in
corp
orat
ed in
to th
e Of
fsho
re
Petr
oleu
m a
nd G
reen
hous
e Ga
s Sto
rage
(Res
ourc
e M
anag
emen
t and
Adm
inist
ratio
n) R
egul
atio
ns 2
011.
Th
is p
roce
ss w
ill a
lso
cons
ider
the
defin
ition
of ‘
good
oi
l fiel
d pr
actic
e’.
This
pro
cess
will
be
com
plet
ed d
urin
g th
e se
cond
hal
f of
201
1, w
ith a
ny le
gisl
ativ
e am
endm
ents
requ
ired
intr
oduc
ed a
s so
on a
s th
ey c
an b
e ac
com
mod
ated
w
ithin
the
legi
slat
ive
timet
able
.
62
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
69
Writ
ten
(rath
er th
an v
erba
l) ap
prov
al fr
om th
e DA
(or n
ew re
gula
tor)
shou
ld b
e ob
tain
ed b
efor
e th
e co
mm
ence
men
t of w
ell a
ctiv
ities
that
lead
to
a ph
ysic
al c
hang
e of
a w
ellb
ore,
oth
er th
an in
a
true
em
erge
ncy
situ
atio
n (re
quiri
ng a
men
dmen
t to
regu
latio
n 17
of t
he M
anag
emen
t of W
ell O
pera
tions
Re
gula
tions
).
Acce
pted
.
The
Com
mon
wea
lth n
otes
this
reco
mm
enda
tion
is
cons
iste
nt w
ith e
xist
ing
prac
tices
whe
re w
ritte
n ap
prov
al fr
om th
e re
leva
nt R
egul
ator
is re
quire
d fo
r all
perm
issi
onin
g do
cum
ents
incl
udin
g W
OMPs
, sa
fety
cas
es a
nd e
nviro
nmen
tal p
lans
prio
r to
the
com
men
cem
ent o
f any
off
shor
e pe
trol
eum
act
ivity
.
Writ
ten
appr
oval
from
the
Regu
lato
r is
requ
ired
prio
r to
any
wel
l act
ivity
occ
urrin
g. T
he g
rant
ing
of
verb
al a
ppro
val i
n re
latio
n to
wel
l act
iviti
es is
not
st
anda
rd p
ract
ice.
The
Com
mon
wea
lth a
gree
s th
at in
an
emer
genc
y si
tuat
ion
whe
re a
wel
l con
trol
issu
e ne
eds
to b
e re
solv
ed q
uick
ly, a
n op
erat
or c
anno
t wai
t for
a w
ritte
n re
spon
se fr
om th
e Re
gula
tor a
nd th
at v
erba
l app
rova
l w
ould
be
appr
opria
te in
this
circ
umst
ance
.
The
Mon
tara
inci
dent
iden
tified
the
need
for m
ore
activ
e em
erge
ncy
resp
onse
eng
agem
ent b
y Re
gula
tors
an
d in
dust
ry. S
uch
enga
gem
ent n
eeds
to b
e ba
lanc
ed
to e
nsur
e bo
th o
pera
tor a
nd R
egul
ator
inde
pend
ence
is
not c
ompr
omis
ed.
In c
olla
bora
tion
with
DRE
T, th
e N
orth
ern
Terr
itory
De
part
men
t of R
esou
rces
(NT
DoR)
has
str
engt
hene
d its
app
rova
ls p
roce
sses
and
cla
rified
that
all
appr
oval
s m
ust b
e m
ade
in w
ritin
g.
The
Com
mon
wea
lth is
sat
isfie
d th
at th
e im
med
iate
de
ficie
ncie
s id
entifi
ed b
y th
e Co
mm
issi
oner
hav
e be
en
adeq
uate
ly a
ddre
ssed
.
Spec
ifica
lly, t
he N
T Do
R ha
s ap
plie
d m
ore
rigou
r to
the
asse
ssm
ent o
f pet
role
um a
pplic
atio
ns a
nd h
as
enga
ged
an a
dditi
onal
two
petr
oleu
m e
ngin
eers
for
the
NT
DoR
Min
eral
s an
d En
ergy
Div
isio
n. F
urth
er, a
ll ap
plic
atio
ns fo
r app
rova
l and
sub
sequ
ent c
ompl
ianc
e da
ta m
onito
ring
are
bein
g co
-ass
esse
d by
inte
rsta
te
regu
lato
ry s
taff
(prim
arily
from
Wes
tern
Aus
tral
ia).
The
syst
em o
f co-
asse
ssm
ent w
ill c
ontin
ue p
endi
ng a
co
mpr
ehen
sive
ski
lls a
nd re
sour
cing
aud
it.
The
Com
mon
wea
lth th
roug
h DR
ET a
nd G
eosc
ienc
e Au
stra
lia w
ill c
ontin
ue to
wor
k w
ith th
e N
T Do
R un
til
the
esta
blis
hmen
t of a
nat
iona
l off
shor
e pe
trol
eum
re
gula
tor i
n 20
12.
Furt
herm
ore
the
Com
mon
wea
lth h
as is
sued
a
Stat
emen
t of E
xpec
tatio
ns to
the
Desi
gnat
ed
Auth
oriti
es a
nd N
OPS
A w
hich
set
s ou
t the
Min
iste
r fo
r Res
ourc
es a
nd E
nerg
y’s
expe
ctat
ions
, as
the
resp
onsi
ble
Com
mon
wea
lth M
inis
ter,
on m
atte
rs
rela
ting
to th
e ex
erci
se o
f the
ir fu
nctio
ns a
nd p
ower
s un
der t
he O
PGG
S Ac
t and
ass
ocia
ted
regu
latio
ns a
nd
prin
cipl
es o
f bes
t pra
ctic
e re
gula
tory
adm
inis
trat
ion.
The
Com
mon
wea
lth h
as a
lso
com
mis
sion
ed a
co
nsul
tanc
y to
dev
elop
a N
atio
nal L
egis
lativ
e Co
mpl
ianc
e Fr
amew
ork
(NLC
F) to
dev
elop
a c
onsi
sten
t be
st p
ract
ice
appr
oach
to b
e us
ed b
y re
gula
tors
in th
eir
regu
latio
n of
Aus
tral
ia’s
offs
hore
pet
role
um in
dust
ry.
The
NLC
F w
ill b
e co
mpl
eted
in th
e se
cond
hal
f of 2
011.
63
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
70Th
e OP
GGS
Act s
houl
d be
am
ende
d to
allo
w fo
r a
pow
er to
sus
pend
a p
etro
leum
pro
duct
ion
licen
ce (i
n ad
ditio
n to
the
curr
ent p
ower
to c
ance
l a li
cenc
e or
su
spen
d its
con
ditio
ns).
Not
ed.
The
Com
mon
wea
lth n
otes
the
Com
mis
sion
er’s
view
on
this
mat
ter.
The
omis
sion
of a
pow
er to
sus
pend
a p
rodu
ctio
n lic
ence
was
del
iber
ate.
The
Com
mon
wea
lth in
pr
epar
ing
the
legi
slat
ion
(Sec
tion
266
Susp
ensi
on o
f rig
hts
– pe
trol
eum
exp
lora
tion
perm
it or
pet
role
um
rete
ntio
n le
ase)
det
erm
ined
this
pow
er to
sus
pend
sh
ould
not
app
ly to
righ
ts c
onfe
rred
und
er p
rodu
ctio
n lic
ence
s, in
fras
truc
ture
lice
nces
or p
ipel
ine
licen
ces.
The
dist
inct
ion
was
mad
e on
the
basi
s of
the
high
er
capi
tal i
nves
tmen
t and
the
smal
ler t
otal
are
as o
f the
se
abed
that
ope
ratio
ns u
nder
thes
e lic
ence
s in
volv
e.
The
Com
mon
wea
lth n
otes
that
the
OPGG
S Ac
t an
d its
ass
ocia
ted
regu
latio
ns p
rovi
de a
num
ber
of m
echa
nism
s th
at a
llow
for t
he w
ithdr
awal
of
a pr
oduc
tion
licen
see’
s rig
ht to
ope
rate
. The
se
mec
hani
sms
incl
ude
the
with
draw
al o
f app
rova
ls b
y th
e Re
gula
tor f
or W
ell O
pera
tions
Man
agem
ent P
lans
; th
e En
viro
nmen
t Pla
n; a
nd S
afet
y Ca
se.
An o
pera
tor c
an o
nly
unde
rtak
e an
off
shor
e pe
trol
eum
ac
tivity
if a
ll ap
prov
als
have
bee
n gr
ante
d.
64
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
71Th
ere
shou
ld b
e a
revi
ew to
det
erm
ine
whe
ther
it
is a
ppro
pria
te to
intr
oduc
e a
rigor
ous
civi
l pen
alty
re
gim
e an
d/or
sub
stan
tially
incr
ease
som
e or
all
of
the
pena
lties
that
can
be
impo
sed
for b
reac
hes
of
legi
slat
ive
requ
irem
ents
rela
ting
to w
ell i
nteg
rity
and
safe
ty.
Acce
pted
.
The
Com
mon
wea
lth is
con
side
ring
amen
ding
the
OPGG
S Ac
t to
prov
ide
the
pow
er to
impo
se a
civ
il pe
nalty
regi
me.
Thi
s pr
oces
s w
ill a
lso
cons
ider
in
crea
sing
som
e or
all
of th
e ex
istin
g pe
nalti
es.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
As p
art o
f thi
s re
view
, the
Com
mon
wea
lth w
ill
addr
ess
the
civi
l pen
alty
regi
me
for t
he o
ffsh
ore
petr
oleu
m in
dust
ry.
65
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
72N
OPSA
’s pr
ohib
ition
pow
ers
shou
ld b
e ex
tend
ed s
uch
that
a p
rohi
bitio
n no
tice
can
be is
sued
whe
re a
NOP
SA
Occu
patio
nal H
ealth
and
Saf
ety
Insp
ecto
r bel
ieve
s, on
re
ason
able
gro
unds
, tha
t an
activ
ity is
occ
urrin
g or
m
ay o
ccur
at a
faci
lity
invo
lvin
g an
imm
edia
te th
reat
to
the
heal
th o
r saf
ety
of a
per
son.
Acce
pted
.
The
Com
mon
wea
lth s
uppo
rts
amen
dmen
t to
the
proh
ibiti
on n
otic
e po
wer
s un
der t
he O
PGGS
Act
.
This
reco
mm
enda
tion
is c
onsi
sten
t with
exi
stin
g pr
actic
es. N
OPSA
’s su
bmis
sion
to th
e M
onta
ra
Com
mis
sion
of I
nqui
ry h
ighl
ight
ed th
e ne
ed fo
r the
br
oade
ning
of N
OPSA
’s OH
S in
spec
tor’s
pow
ers
in th
e ev
ent t
hat a
n op
erat
or is
not
will
ing
to c
ompl
y, or
if
the
circ
umst
ance
s ar
e su
ch th
at a
n in
spec
tor w
as
prev
ente
d fr
om is
suin
g a
notic
e du
e to
the
curr
ent
narr
owne
ss o
f the
pro
hibi
tion
pow
ers.
This
am
endm
ent
wou
ld e
nabl
e in
spec
tors
to
inte
rven
e an
d is
sue
notic
es p
rohi
bitin
g en
try
to fa
cilit
ies
whe
re
the
insp
ecto
r con
side
rs a
n im
med
iate
risk
to
the
heal
th o
r saf
ety
of a
per
son
is o
ccur
ring
or m
ay o
ccur
at
a fa
cilit
y.
The
Com
mon
wea
lth fu
rthe
r not
es th
at th
e pr
opos
ed
amen
dmen
t is
cons
iste
nt w
ith o
ther
Com
mon
wea
lth
and
Stat
e-ba
sed
safe
ty le
gisl
ativ
e fr
amew
orks
.
As th
e De
part
men
t with
pol
icy
resp
onsi
bilit
y fo
r th
e OP
GG
S Ac
t (an
d its
ass
ocia
ted
regu
latio
ns),
cons
ider
atio
n of
this
reco
mm
enda
tion
will
be
led
by
DRET
.
This
pro
cess
will
be
com
plet
ed d
urin
g th
e se
cond
hal
f of
201
1, w
ith a
ny le
gisl
ativ
e am
endm
ents
requ
ired
intr
oduc
ed a
s so
on a
s th
ey c
an b
e ac
com
mod
ated
w
ithin
the
legi
slat
ive
timet
able
.
66
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
73A
sing
le, i
ndep
ende
nt re
gula
tory
bod
y sh
ould
be
crea
ted,
look
ing
afte
r saf
ety
as a
prim
ary
obje
ctiv
e,
wel
l int
egrit
y an
d en
viro
nmen
tal a
ppro
vals
. In
dust
ry
polic
y an
d re
sour
ce d
evel
opm
ent a
nd p
rom
otio
n ac
tiviti
es s
houl
d re
side
in g
over
nmen
t dep
artm
ents
an
d no
t with
the
regu
lato
ry a
genc
y. T
he re
gula
tory
ag
ency
sho
uld
be e
mpo
wer
ed (i
f tha
t is
nece
ssar
y) to
pa
ss re
leva
nt p
etro
leum
info
rmat
ion
to g
over
nmen
t de
part
men
ts to
ass
ist t
hem
to p
erfo
rm th
e po
licy
role
s.
Acce
pted
.
The
Com
mon
wea
lth s
uppo
rts
refo
rm o
f the
cur
rent
of
fsho
re p
etro
leum
regu
lato
ry a
rran
gem
ents
.
Not
ing
the
fund
amen
tal r
elat
ions
hip
betw
een
the
inte
grity
of f
acili
ties
and
the
safe
ty o
f peo
ple
and
oper
atio
ns, t
he C
omm
onw
ealth
sup
port
s th
e ex
pans
ion
of N
OPSA
’s re
spon
sibi
litie
s be
yond
occ
upat
iona
l hea
lth
and
safe
ty is
sues
to a
lso
incl
ude
resp
onsi
bilit
y fo
r the
st
ruct
ural
inte
grity
of p
ipel
ines
, wel
ls a
nd w
ell-
rela
ted
equi
pmen
t inc
ludi
ng th
e en
viro
nmen
tal a
spec
ts o
f pe
trol
eum
dev
elop
men
t.
The
Com
mon
wea
lth fu
rthe
r sup
port
s th
e es
tabl
ishm
ent
of a
sin
gle
gove
rnm
ent d
epar
tmen
t or a
genc
y to
ad
vise
on
title
dec
isio
ns a
nd a
dmin
istr
atio
n, a
nd m
ajor
qu
estio
ns o
f res
ourc
e m
anag
emen
t and
dev
elop
men
t.
On 2
4 N
ovem
ber 2
010
in re
leas
ing
the
Repo
rt
of th
e M
onta
ra C
omm
issio
n of
Inqu
iry a
nd th
e Co
mm
onw
ealth
’s dr
aft r
espo
nse,
the
Min
iste
r fo
r Res
ourc
es a
nd E
nerg
y al
so a
nnou
nced
the
Com
mon
wea
lth’s
inte
ntio
n to
impl
emen
t the
pro
posa
l of
the
Prod
uctiv
ity C
omm
issi
on R
evie
w o
f Reg
ulat
ory
Burd
en o
n th
e Up
stre
am P
etro
leum
(Oil
& G
as)
Sect
or (P
C Re
view
) to
esta
blis
h a
natio
nal o
ffsh
ore
petr
oleu
m re
gula
tor.
This
inde
pend
ent r
egul
ator
y bo
dy
will
hav
e re
spon
sibi
lity
for w
ell i
nteg
rity,
safe
ty a
nd
envi
ronm
enta
l reg
ulat
ion.
On
11 A
pril
2011
, the
Min
iste
r for
Res
ourc
es
and
Ener
gy re
affir
med
tha
t th
e Co
mm
onw
ealth
w
ould
be
prog
ress
ing
the
esta
blis
hmen
t of
th
e N
atio
nal O
ffsh
ore
Petr
oleu
m S
afet
y an
d En
viro
nmen
tal M
anag
emen
t Au
thor
ity (N
OPS
EMA)
in
Com
mon
wea
lth ju
risdi
ctio
ns fr
om 1
Jan
uary
201
2 by
ex
pand
ing
the
func
tions
of N
OPS
A.
NOP
SEM
A w
ill b
ecom
e th
e re
gula
tor f
or a
ll of
fsho
re
petr
oleu
m a
ctiv
ities
in C
omm
onw
ealth
wat
ers
beyo
nd
thre
e na
utic
al m
iles
from
the
terr
itoria
l sea
bas
elin
e.
In a
dditi
on to
NO
PSA’
s cu
rren
t reg
ulat
ory
func
tions
, N
OPSE
MA
will
ass
ume
resp
onsi
bilit
y fo
r env
ironm
enta
l ap
prov
als,
incl
udin
g O
il Sp
ill C
ontin
genc
y Pl
ans
unde
r the
OPG
GS
Act.
NO
PSEM
A w
ill a
lso
regu
late
sa
fety
, int
egrit
y an
d en
viro
nmen
t pla
ns fo
r min
eral
s ex
trac
tion
and
gree
nhou
se g
as s
tora
ge a
ctiv
ities
in
Com
mon
wea
lth w
ater
s.
AMSA
will
wor
k w
ith N
OPS
EMA
to d
evel
op a
gree
d ar
rang
emen
ts to
revi
ew O
il Sp
ill C
ontin
genc
y Pl
ans.
Th
e pr
oced
ural
fram
ewor
k su
ppor
ting
the
agre
ed
arra
ngem
ents
will
be
deve
lope
d by
RET
and
AM
SA in
co
nsul
tatio
n w
ith D
SEW
PaC.
67
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
A N
atio
nal O
ffsh
ore
Petr
oleu
m T
itles
Adm
inis
trat
or
(NOP
TA) w
ill b
e es
tabl
ishe
d w
ithin
DRE
T to
adm
inis
ter
title
s an
d da
ta re
latin
g to
off
shor
e pe
trol
eum
, m
iner
als
and
gree
nhou
se g
as s
tora
ge a
ctiv
ities
in
Com
mon
wea
lth w
ater
s.
In a
dditi
on, u
nder
this
mod
el, t
he S
tate
s an
d N
orth
ern
Terr
itory
will
be
able
to c
onfe
r pow
ers
for t
he
regu
latio
n of
off
shor
e pe
trol
eum
act
iviti
es u
nder
thei
r re
spec
tive
legi
slat
ion
to N
OPS
EMA
and
NO
PTA
for
coas
tal w
ater
s (ie
up
to th
e th
ree
naut
ical
mile
lim
it).
Legi
slat
ive
amen
dmen
ts to
impl
emen
t thi
s in
stitu
tiona
l re
form
will
be
intr
oduc
ed in
to th
e Co
mm
onw
ealth
Pa
rliam
ent d
urin
g th
e W
inte
r sitt
ing
perio
d fr
om M
ay–
June
201
1. T
he re
form
s re
flect
ext
ensi
ve c
onsu
ltatio
n w
ith ju
risdi
ctio
ns, i
ndus
try
and
NO
PSA
and
are
supp
orte
d by
the
offs
hore
pet
role
um in
dust
ry.
In a
dditi
on, t
he C
omm
onw
ealth
has
exp
ande
d th
e fu
nctio
ns o
f NO
PSA
unde
r the
OPG
GS
Act t
o in
clud
e th
e no
n-O
HS
aspe
cts
of s
truc
tura
l int
egrit
y fo
r fac
ilitie
s, w
ells
and
wel
l-re
late
d eq
uipm
ent i
n Co
mm
onw
ealth
wat
ers.
This
refo
rm a
lso
appl
ied
an O
HS
duty
of c
are
to p
etro
leum
and
gre
enho
use
gas
title
hold
ers
in re
latio
n to
wel
ls a
nd w
ell-
rela
ted
equi
pmen
t, an
d im
prov
ed N
OPS
A’s
insp
ectio
n an
d in
vest
igat
ion
pow
ers
in re
latio
n to
sus
pect
ed b
reac
hes.
The
Offs
hore
Pet
role
um a
nd G
reen
hous
e Ga
s St
orag
e (R
esou
rce
Man
agem
ent a
nd A
dmin
istra
tion)
Re
gula
tions
201
1 gi
ve a
ffec
t to
thes
e am
endm
ents
by
pro
vidi
ng N
OPS
A w
ith re
gula
tory
resp
onsi
bilit
y fo
r as
sess
ing
WO
MPs
and
ass
ocia
ted
wel
l act
iviti
es.
68
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
74Th
e pr
opos
al o
f the
Pro
duct
ivity
Com
mis
sion
’s Ac
cept
ed.
Refe
r rec
omm
enda
tion
73.
Rese
arch
Rep
ort (
Revi
ew o
f Reg
ulat
ory
Burd
en o
n th
e Re
fer r
ecom
men
datio
n 73
. Up
stre
am P
etro
leum
(oil
and
Gas)
Sec
tor,
April
200
9) to
es
tabl
ish
a N
OPR
shou
ld b
e pu
rsue
d at
a m
inim
um.
75Re
spon
sibi
lity
for w
ell i
nteg
rity
shou
ld b
e m
oved
to
NOP
SA (a
s al
so p
ropo
sed
by th
e Pr
oduc
tivity
Co
mm
issi
on).
Acce
pted
.
Refe
r rec
omm
enda
tion
73.
Refe
r rec
omm
enda
tion
73.
69
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
76In
the
mea
ntim
e, th
e M
inis
ter s
houl
d:
a.
cons
ider
revo
king
the
exis
ting
dele
gatio
n to
the
Dire
ctor
of E
nerg
y, N
T Do
R pr
ovid
ing
the
func
tions
an
d po
wer
s of
the
DA u
nder
the
OPG
GS
Act a
nd
Regu
latio
ns s
peci
fied
in it
em 1
of t
he S
ched
ule
to th
at in
stru
men
t (th
e M
inis
ter’s
DA
pow
ers
and
func
tions
) and
tran
sfer
ring
this
del
egat
ion
to
eith
er N
OPSA
, the
Com
mon
wea
lth D
epar
tmen
t of
Reso
urce
s, En
ergy
and
Tou
rism
(RET
), or
a D
A fr
om
anot
her s
tate
;
b.
enqu
ire in
to w
heth
er t
he o
ther
DAs
to
who
m h
e ha
s de
lega
ted
his
func
tions
and
pow
ers
rela
ting
to w
ell i
nteg
rity
are
adeq
uate
ly fu
lfilli
ng t
heir
role
s; a
nd
c.
cons
ider
am
endm
ents
to th
e OP
GGS
Act
to e
nabl
e DA
s to
be
give
n di
rect
ion
as to
the
perf
orm
ance
of
thei
r reg
ulat
ory
role
s.
Acce
pted
in p
art.
a.
Acce
pted
in p
art
Sect
ion
72(3
) of t
he O
PGGS
Act
pro
vide
s fo
r the
abi
lity
to re
voke
an
exis
ting
dele
gatio
n of
func
tions
and
po
wer
s of
the
Desi
gnat
ed A
utho
rity
for t
he T
errit
ory
of A
shm
ore
and
Cart
ier I
slan
ds. T
he d
eleg
atio
n of
th
e Co
mm
onw
ealth
's De
sign
ated
Aut
horit
y po
wer
s an
d fu
nctio
ns to
the
Terr
itory
of A
shm
ore
and
Cart
ier
Isla
nds
has
hist
oric
ally
bee
n vi
ewed
as
an e
xten
sion
to
the
prin
cipa
l Nor
ther
n Te
rrito
ry o
ffsh
ore
area
.
How
ever
the
pow
er to
revo
ke a
del
egat
ion
unde
r se
ctio
n 72
(3) o
f the
OPG
GS A
ct d
oes
not e
xten
d to
th
e fu
nctio
ns a
nd p
ower
s of
the
Nor
ther
n Te
rrito
ry
Desi
gnat
ed A
utho
rity
in re
latio
n to
the
Nor
ther
n Te
rrito
ry o
ffsh
ore
area
, or a
ny o
ther
Des
igna
ted
prin
cipa
l off
shor
e ar
ea.
The
Com
mon
wea
lth th
eref
ore
cons
ider
s th
at th
e w
ithdr
awal
of t
he d
eleg
atio
n fo
r the
Ash
mor
e an
d Ca
rtie
r Isl
ands
are
a w
ould
not
add
ress
the
full
rang
e of
sys
tem
ic is
sues
iden
tified
by
the
Inqu
iry g
iven
th
e N
orth
ern
Terr
itory
’s on
goin
g re
spon
sibi
lity
as
the
Desi
gnat
ed A
utho
rity
for t
he N
orth
ern
Terr
itory
pr
inci
pal o
ffsh
ore
area
.
b.
Acce
pted
.
The
Com
mon
wea
lth, t
hrou
gh D
RET,
has
requ
este
d al
l De
signa
ted
Auth
oriti
es (T
asm
ania
, Wes
tern
Aus
tral
ia,
Nor
ther
n Te
rrito
ry, V
icto
ria, S
outh
Aus
tral
ia, N
ew S
outh
W
ales
and
Que
ensla
nd) u
nder
take
a n
umbe
r of r
evie
ws
to e
nsur
e th
e in
tegr
ity o
f wel
ls an
d th
eir a
sses
smen
t, ap
prov
als
and
mon
itorin
g of
off
shor
e pe
trol
eum
ac
tiviti
es w
ere
in a
ccor
d w
ith th
e OP
GGS
Act.
The
Com
mon
wea
lth is
sat
isfie
d th
at th
e im
med
iate
de
ficie
ncie
s id
entifi
ed b
y th
e Co
mm
issi
oner
hav
e be
en
adeq
uate
ly a
ddre
ssed
.
The
Com
mon
wea
lth, t
hrou
gh D
RET
and
Geo
scie
nce
Aust
ralia
, will
con
tinue
to w
ork
with
the
NT
DoR
until
th
e es
tabl
ishm
ent o
f a n
atio
nal o
ffsh
ore
petr
oleu
m
regu
lato
r in
2012
.
All D
esig
nate
d Au
thor
ities
hav
e co
oper
ated
fully
an
d pr
ovid
ed a
ssur
ance
s to
the
Com
mon
wea
lth th
at
rigor
ous
regu
lato
ry p
ract
ice
are
bein
g im
plem
ente
d in
re
latio
n to
the
appr
oval
and
com
plia
nce
mon
itorin
g of
w
ell o
pera
tion
activ
ities
.
In a
dditi
on th
e Co
mm
onw
ealth
has
issu
ed a
Sta
tem
ent
of E
xpec
tatio
ns to
the
Desi
gnat
ed A
utho
ritie
s an
d N
OPSA
whi
ch s
ets
out t
he M
inis
ter f
or R
esou
rces
an
d En
ergy
’s ex
pect
atio
ns, a
s th
e re
spon
sibl
e Co
mm
onw
ealth
Min
iste
r, on
mat
ters
rela
ting
to th
e ex
erci
se o
f the
ir fu
nctio
ns a
nd p
ower
s un
der t
he
OPGG
S Ac
t and
ass
ocia
ted
regu
latio
ns a
nd p
rinci
ples
of
bes
t pra
ctic
e re
gula
tory
adm
inis
trat
ion.
The
Com
mon
wea
lth h
as a
lso
com
mis
sion
ed a
co
nsul
tanc
y to
dev
elop
a N
atio
nal L
egis
lativ
e Co
mpl
ianc
e Fr
amew
ork
(NLC
F) to
dev
elop
a c
onsi
sten
t be
st p
ract
ice
appr
oach
to b
e us
ed b
y re
gula
tors
in th
eir
regu
latio
n of
Aus
tral
ia’s
offs
hore
pet
role
um in
dust
ry.
The
NLC
F w
ill b
e co
mpl
eted
in th
e se
cond
hal
f of 2
011
c.
Refe
r rec
omm
enda
tion
73
70
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
c.
Acce
pted
Shou
ld th
e de
ficie
ncie
s id
entifi
ed b
y th
e M
onta
ra
Com
mis
sion
of I
nqui
ry n
ot b
e sa
tisfa
ctor
ily a
ddre
ssed
th
roug
h th
e cu
rren
t off
shor
e pe
trol
eum
regu
lato
ry
refo
rm, c
onsi
dera
tion
may
be
give
n to
intr
oduc
ing
amen
dmen
ts to
the
OPGG
S Ac
t to
prov
ide
the
resp
onsi
ble
Com
mon
wea
lth M
inis
ter w
ith a
new
or
ext
ende
d ‘g
ener
al p
ower
of d
irect
ion’
, as
part
of
the
Com
mon
wea
lth’s
broa
der r
evie
w o
f mar
ine
envi
ronm
ent a
nd p
etro
leum
legi
slat
ion.
The
Com
mon
wea
lth n
otes
, how
ever
, tha
t suc
h an
am
endm
ent m
ay e
rode
the
‘co-
oper
ativ
e’ re
latio
nshi
p m
odel
upo
n w
hich
the
offs
hore
pet
role
um re
gula
tory
re
gim
e is
bas
ed a
nd le
ad to
oth
er c
onst
itutio
nal
issu
es s
uch
as C
omm
onw
ealth
Min
iste
r dire
ctin
g a
Stat
e Go
vern
men
t age
ncy
whi
ch w
ould
ero
de S
tate
Go
vern
men
t Min
iste
rial a
ccou
ntab
ility
.
71
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
77Th
e re
com
men
datio
ns o
f the
Inqu
iry in
rela
tion
to
suita
ble
way
s of
ach
ievi
ng w
ell i
nteg
rity
cont
aine
d in
Ch
apte
r 3 b
e in
clud
ed in
a g
uida
nce
man
ual t
hat i
s is
sued
for t
he a
ssis
tanc
e of
indu
stry
and
regu
lato
rs.
Not
ed.
The
Com
mon
wea
lth n
otes
that
the
caus
e of
the
Mon
tara
inci
dent
was
not
a la
ck o
f ind
ustr
y-ac
cept
ed
proc
edur
es, s
tand
ards
and
ope
ratin
g m
anua
ls, b
ut
failu
re to
follo
w th
em. A
s su
ch, a
n ad
ditio
nal g
uida
nce
man
ual i
s un
nece
ssar
y.
The
Com
mon
wea
lth n
otes
tha
t th
is re
com
men
datio
n is
con
sist
ent
with
exi
stin
g pr
actic
e. T
he e
xist
ing
regi
me
requ
ires
the
writ
ten
appr
oval
from
the
re
leva
nt R
egul
ator
for a
ll pe
rmis
sion
ing
docu
men
ts
incl
udin
g W
OM
Ps, s
afet
y ca
ses
and
envi
ronm
enta
l pl
ans
prio
r to
the
com
men
cem
ent
of a
ny o
ffsh
ore
petr
oleu
m a
ctiv
ity. T
hese
doc
umen
ts s
et o
ut t
he
proc
esse
s, pr
actic
es a
nd a
ctio
ns t
hat
mus
t be
met
by
oper
ator
s to
ens
ure
they
mee
t th
eir s
afet
y, in
tegr
ity
and
envi
ronm
enta
l obl
igat
ions
.
Furt
herm
ore,
it is
com
mon
indu
stry
pra
ctic
e to
hav
e a
drill
ing
oper
atio
ns m
anua
l cov
erin
g al
l asp
ects
of d
rillin
g,
com
plet
ion
and
wel
l con
trol
ope
ratio
ns o
n th
e rig
.
72
73
Chapter 5 of the Montara ReportArresting the Blowout
Chapter 5 of the Report – Arresting the Blowout considers the initial response to the incident at the Montara Wellhead Platform and the steps taken by the operator and responsible Government agencies in arresting the blowout. The chapter contains 8 of 105 recommendations.
74
Chap
ter
5 –
Arre
stin
g th
e Bl
owou
t
Reco
mm
enda
tions
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
78In
the
futu
re, a
nd in
the
inte
rest
s of
ens
urin
g th
at
all p
ossi
ble
wel
l con
trol
opt
ions
are
com
preh
ensi
vely
pu
rsue
d to
exh
aust
ion,
dec
isio
ns a
s to
wel
l con
trol
re
spon
se o
ptio
ns s
houl
d be
the
resu
lt of
col
labo
ratio
n be
twee
n th
e re
gula
tor a
nd th
e op
erat
or ra
ther
than
le
avin
g on
e pa
rty
to m
ake
unila
tera
l jud
gem
ents
as
to th
e ap
prop
riate
ness
of v
ario
us w
ell c
ontr
ol
oper
atio
ns. T
he re
gula
tor s
houl
d pr
ovid
e tr
ansp
aren
t an
d co
ntem
pora
neou
s ex
plan
atio
ns to
the
publ
ic o
f al
l wel
l con
trol
opt
ions
und
er c
onsi
dera
tion
at a
ny
part
icul
ar ti
me.
Not
ed.
Refe
r rec
omm
enda
tion
84.
The
Com
mon
wea
lth n
otes
that
the
Mon
tara
inci
dent
id
entifi
ed th
e ne
ed fo
r mor
e ac
tive
emer
genc
y re
spon
se e
ngag
emen
t by
Regu
lato
rs a
nd in
dust
ry.
Such
eng
agem
ent n
eeds
to b
e ba
lanc
ed to
ens
ure
both
ope
rato
r and
Reg
ulat
or in
depe
nden
ce is
not
co
mpr
omis
ed.
In re
spon
ding
to th
e M
onta
ra in
cide
nt, t
he
Com
mon
wea
lth d
id n
ot re
ly o
nly
on th
e op
erat
or’s
deci
sion
rega
rdin
g w
ell c
ontr
ol o
ptio
ns. T
he
Com
mon
wea
lth re
ceiv
ed in
depe
nden
t adv
ice
on a
ll op
tions
for c
ontr
ollin
g th
e w
ell f
rom
GA
and
NOP
SA
(who
also
sou
ght a
dvic
e fr
om it
s in
tern
atio
nal p
eers
).
Aust
ralia
’s of
fsho
re le
gisl
ativ
e an
d re
gula
tory
regi
me
plac
es le
gal o
blig
atio
ns o
n op
erat
ors
for w
ell c
ontr
ol,
incl
udin
g ar
rest
ing
a w
ell b
low
out.
The
Com
mon
wea
lth u
nder
stan
ds th
at it
is a
ccep
ted
indu
stry
pra
ctic
e to
repo
rt to
and
eng
age
with
th
e Re
gula
tor i
n th
e ca
se o
f ser
ious
wel
l con
trol
in
cide
nts,
such
as
unde
rgro
und
flow
or l
oss
of s
urfa
ce
cont
ainm
ent.
Min
or in
cide
nts
not i
nvol
ving
a b
reac
h of
the
wel
l env
elop
e ar
e de
alt w
ith b
y th
e op
erat
or
in c
ompl
ianc
e w
ith it
s W
ell C
ontr
ol M
anua
l, an
d re
port
ed to
the
Regu
lato
r in
the
daily
dril
ling
repo
rt. I
f si
gnifi
cant
dev
iatio
n w
as re
quire
d fr
om a
ppro
vals
, the
Re
gula
tor m
ust b
e in
form
ed.
The
Com
mon
wea
lth (t
hrou
gh D
RET
and
NO
PSA)
is
prog
ress
ing
the
Term
s of
Ref
eren
ce fo
r the
201
1 re
view
of N
OPS
A’s
oper
atio
ns. T
he 2
011
NO
PSA
Oper
atio
nal R
evie
w w
ill fo
cus
on th
e le
gisl
ated
re
quire
men
t to
asse
ss th
e ef
fect
iven
ess
of N
OPS
A;
NOP
SA’s
enga
gem
ent w
ith o
pera
tors
; and
NO
PSA’
s ro
le in
resp
ondi
ng to
inci
dent
s in
volv
ing
the
offs
hore
pe
trol
eum
indu
stry
.
In a
dditi
on th
e Co
mm
onw
ealth
has
issu
ed a
Sta
tem
ent
of E
xpec
tatio
ns to
the
Desi
gnat
ed A
utho
ritie
s an
d N
OPSA
whi
ch s
ets
out t
he M
inis
ter f
or R
esou
rces
an
d En
ergy
’s ex
pect
atio
ns, a
s th
e re
spon
sibl
e Co
mm
onw
ealth
Min
iste
r, on
mat
ters
rela
ting
to th
e ex
erci
se o
f the
ir fu
nctio
ns a
nd p
ower
s un
der t
he
OPGG
S Ac
t and
ass
ocia
ted
regu
latio
ns a
nd p
rinci
ples
of
bes
t pra
ctic
e re
gula
tory
adm
inis
trat
ion.
The
Com
mon
wea
lth h
as a
lso
com
mis
sion
ed
a co
nsul
tanc
y to
dev
elop
a N
atio
nal L
egis
lativ
e Co
mpl
ianc
e Fr
amew
ork
(NLC
F) to
dev
elop
a c
onsi
sten
t be
st p
ract
ice
appr
oach
to b
e us
ed b
y re
gula
tors
in th
eir
regu
latio
n of
Aus
tral
ia’s
offs
hore
pet
role
um in
dust
ry.
The
NLC
F w
ill b
e co
mpl
eted
in th
e se
cond
hal
f of 2
011.
The
deve
lopm
ent o
f an
inci
dent
man
agem
ent a
nd
coor
dina
tion
fram
ewor
k fo
r dea
ling
with
inci
dent
s in
volv
ing
the
offs
hore
pet
role
um in
dust
ry w
ill b
e le
d by
DRE
T in
con
junc
tion
with
NO
PSA
and
rele
vant
st
akeh
olde
rs, a
nd w
ill b
e fin
alis
ed b
y th
e en
d of
201
1.
75
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
The
Com
mon
wea
lth re
cogn
ises
the
need
for a
mor
e tr
ansp
aren
t com
mun
icat
ion
stra
tegy
to in
form
st
akeh
olde
rs a
nd th
e pu
blic
and
is d
evel
opin
g an
in
cide
nt m
anag
emen
t and
coo
rdin
atio
n fr
amew
ork
base
d on
pro
ven
fram
ewor
ks s
uch
as th
e N
atio
nal
Coun
ter-
Terr
oris
m P
lan.
Thi
s fr
amew
ork
will
be
coor
dina
ted
by th
e ce
ntra
l bod
y to
be
esta
blis
hed
purs
uant
to re
com
men
datio
n 84
and
will
incl
ude
a cl
early
defi
ned,
tran
spar
ent c
omm
unic
atio
n st
rate
gy
for i
ncid
ent r
espo
nse.
79Th
e re
gula
tor,
rath
er th
an th
e re
spon
sibl
e M
inis
ter,
shou
ld b
e gi
ven
the
pow
er to
dire
ct a
n op
erat
or to
us
e a
part
icul
ar ri
g fo
r the
pur
pose
of w
ell c
ontr
ol
oper
atio
ns, i
f app
ropr
iate
in th
e ci
rcum
stan
ces,
and
the
pow
er s
houl
d be
use
d in
the
futu
re if
that
rig
is th
e be
st o
ptio
n av
aila
ble.
Thi
s w
ould
nec
essa
rily
invo
lve
the
oper
ator
fully
com
pens
atin
g fo
r the
use
of t
he ri
g an
d an
y ot
her a
ssoc
iate
d co
sts.
The
Inqu
iry s
ugge
sts
that
this
pow
er c
ould
be
invo
ked
and
give
n ef
fect
as
a co
nditi
on o
f an
oper
ator
’s lic
ence
.
Not
ed.
The
Com
mon
wea
lth n
otes
that
the
OPGG
S Ac
t pr
ovid
es th
e De
sign
ated
Aut
horit
ies,
as th
e ap
prop
riate
Re
gula
tor,
with
the
pow
er to
issu
e di
rect
ions
(ref
er
Part
6.2
OPG
GS A
ct).
In re
latio
n to
the
Mon
tara
in
cide
nt, t
he C
omm
onw
ealth
Min
iste
r for
Res
ourc
es
and
Ener
gy is
the
Desi
gnat
ed A
utho
rity
for t
he
Terr
itory
of A
shm
ore
Cart
ier I
slan
ds o
ffsh
ore
area
and
w
as th
eref
ore
the
appr
opria
te d
ecis
ion-
mak
er.
In re
spec
t of c
ompe
nsat
ion
and
asso
ciat
ed c
osts
, the
Co
mm
onw
ealth
doe
s no
t int
erve
ne in
com
mer
cial
ne
gotia
tions
bet
wee
n op
erat
ors.
The
Com
mon
wea
lth is
see
king
furt
her a
dvic
e on
th
e ut
ility
of s
uch
dire
ctio
ns p
ower
s fo
r use
in
thes
e ci
rcum
stan
ces.
This
adv
ice
will
be
take
n in
to c
onsi
dera
tion
in th
e de
velo
pmen
t of t
he
Com
mon
wea
lth’s
broa
der i
ncid
ent m
anag
emen
t and
co
ordi
natio
n fr
amew
ork
whi
ch w
ill b
e co
mpl
eted
by
the
end
of 2
011.
In a
dditi
on, t
he in
dust
ry, t
hrou
gh th
e Au
stra
lian
Petr
oleu
m P
rodu
ctio
n an
d Ex
plor
atio
n As
soci
atio
n (A
PPEA
), th
e pe
ak in
dust
ry b
ody
repr
esen
ting
Aust
ralia
’s of
fsho
re o
il an
d ga
s in
dust
ry, i
s w
orki
ng to
fo
rmal
ise
assi
stan
ce a
rran
gem
ents
for t
he o
ffsh
ore
petr
oleu
m in
dust
ry a
nd fa
cilit
ate
the
shar
ing
of
reso
urce
s an
d eq
uipm
ent t
hrou
gh a
mem
oran
dum
of
und
erst
andi
ng a
roun
d m
utua
l aid
. Ind
ustr
y ha
s es
tabl
ishe
d a
Drill
ing
Stee
ring
Com
mitt
ee a
nd a
n Em
erge
ncy
Man
agem
ent S
teer
ing
Com
mitt
ee to
id
entif
y an
d im
plem
ent c
ross
-ind
ustr
y le
arni
ngs
from
th
e M
onta
ra a
nd G
ulf o
f Mex
ico
inci
dent
s.
76
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
80Th
e re
gula
tory
regi
me
shou
ld a
lso
impo
se a
n ob
ligat
ion
on a
n op
erat
or to
asc
erta
in th
e av
aila
bilit
y, an
d pr
ovid
e de
tails
to th
e re
gula
tor,
of a
ny p
oten
tial
relie
f wel
l rig
s, pr
ior t
o th
e co
mm
ence
men
t of d
rillin
g op
erat
ions
(inc
ludi
ng p
rior t
o ea
ch p
hase
of a
dril
ling
oper
atio
n w
here
app
licab
le).
Not
ed.
The
iden
tifica
tion
of a
relie
f wel
l rig
is a
n op
erat
iona
l m
atte
r and
one
that
the
Com
mon
wea
lth c
onsi
ders
sh
ould
form
par
t of a
n op
erat
or’s
risk
man
agem
ent
stra
tegy
, whi
ch is
par
t of t
he p
roce
ss fo
r see
king
ap
prov
al to
und
erta
ke a
n of
fsho
re p
etro
leum
act
ivity
.
The
Com
mon
wea
lth c
onsid
ers
that
the
risk
man
agem
ent
stra
tegy
sho
uld
be id
entifi
ed a
nd c
onsid
ered
as
part
of
the
proc
ess
for s
eeki
ng a
ppro
val t
o un
dert
ake
an o
ffsh
ore
petr
oleu
m a
ctiv
ity. H
owev
er, t
he
Com
mon
wea
lth d
oes
not c
onsid
er th
at th
is re
quire
men
t ne
eds
to b
e fo
rmal
ised
in th
e re
gula
tory
regi
me.
The
offs
hore
pet
role
um in
dust
ry h
as p
erfo
rmed
its
own
safe
ty c
heck
s an
d re
view
s of
its
proc
esse
s an
d pr
oced
ures
incl
udin
g th
e co
nsid
erat
ion
of w
ell p
lans
, dr
illin
g pr
oces
ses,
blow
-out
con
tinge
ncy
plan
s, te
stin
g fr
eque
ncie
s, tr
aini
ng re
gim
es fo
r per
sonn
el a
nd
emer
genc
y re
spon
se c
apab
ilitie
s. Th
e pe
trol
eum
indu
stry
th
roug
h AM
OSC
has
also
revi
ewed
its
equi
pmen
t st
ockp
ile a
nd c
apac
ity to
resp
ond
to a
n in
cide
nt.
In a
dditi
on, t
he in
dust
ry, t
hrou
gh th
e Au
stra
lian
Petr
oleu
m P
rodu
ctio
n an
d Ex
plor
atio
n As
soci
atio
n (A
PPEA
), th
e pe
ak in
dust
ry b
ody
repr
esen
ting
Aust
ralia
’s of
fsho
re o
il an
d ga
s in
dust
ry, i
s w
orki
ng to
fo
rmal
ise
assi
stan
ce a
rran
gem
ents
for t
he o
ffsh
ore
petr
oleu
m in
dust
ry a
nd fa
cilit
ate
the
shar
ing
of
reso
urce
s an
d eq
uipm
ent t
hrou
gh a
mem
oran
dum
of
unde
rsta
ndin
g ar
ound
mut
ual a
id.
The
Desi
gnat
ed A
utho
ritie
s ha
ve b
een
requ
este
d to
pr
ovid
e cl
arifi
catio
n to
all
oper
ator
s th
at th
e ris
k m
anag
emen
t str
ateg
y in
forc
e du
ring
an a
ppro
ved
drill
ing
prog
ram
mus
t inc
lude
iden
tifica
tion
by th
e op
erat
or o
f sui
tabl
e rig
s w
ithin
the
area
that
cou
ld b
e ut
ilise
d in
the
even
t of a
n em
erge
ncy.
77
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
81N
OPSA
dev
elop
a p
olic
y of
eng
agem
ent w
ith o
pera
tors
so
as
to e
nabl
e ex
pert
s (in
clud
ing
safe
ty e
xper
ts) t
o ca
nvas
all
avai
labl
e op
tions
for w
ell c
ontr
ol in
the
even
t of a
blo
wou
t.
Acce
pted
.
The
Com
mon
wea
lth n
otes
that
the
Mon
tara
inci
dent
id
entifi
ed th
e ne
ed fo
r mor
e ac
tive
emer
genc
y re
spon
se e
ngag
emen
t by
Regu
lato
rs a
nd in
dust
ry.
Such
eng
agem
ent n
eeds
to b
e ba
lanc
ed to
ens
ure
both
op
erat
or re
spon
sibi
lity
and
Regu
lato
r ind
epen
denc
e is
no
t com
prom
ised
.
The
Com
mon
wea
lth (t
hrou
gh D
RET
and
NO
PSA)
is
prog
ress
ing
the
Term
s of
Ref
eren
ce fo
r the
201
1 re
view
of N
OPS
A’s
oper
atio
ns. T
he 2
011
NO
PSA
Oper
atio
nal R
evie
w w
ill fo
cus
on th
e le
gisl
ated
re
quire
men
t to
asse
ss th
e ef
fect
iven
ess
of N
OPS
A;
NOP
SA’s
enga
gem
ent w
ith o
pera
tors
; and
NO
PSA’
s ro
le in
resp
ondi
ng to
inci
dent
s in
volv
ing
the
offs
hore
pe
trol
eum
indu
stry
.
Furt
herm
ore,
the
Com
mon
wea
lth h
as is
sued
a
Stat
emen
t of E
xpec
tatio
ns to
NO
PSA
whi
ch s
ets
out
the
Min
iste
r for
Res
ourc
es a
nd E
nerg
y’s
expe
ctat
ions
, as
the
resp
onsi
ble
Com
mon
wea
lth M
inis
ter,
on m
atte
rs
rela
ting
to th
e ex
erci
se o
f the
ir fu
nctio
ns a
nd p
ower
s un
der t
he O
PGG
S Ac
t and
ass
ocia
ted
regu
latio
ns a
nd
prin
cipl
es o
f bes
t pra
ctic
e re
gula
tory
adm
inis
trat
ion.
The
deve
lopm
ent o
f an
inci
dent
man
agem
ent a
nd
coor
dina
tion
fram
ewor
k fo
r dea
ling
with
inci
dent
s in
volv
ing
the
offs
hore
pet
role
um in
dust
ry w
ill b
e le
d by
DRE
T in
con
junc
tion
with
NO
PSA
and
rele
vant
st
akeh
olde
rs, a
nd w
ill b
e fin
alis
ed b
y th
e en
d of
201
1.
78
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
82Th
e In
quiry
als
o su
ppor
ts B
ills
and
Agos
tini’s
re
com
men
datio
n:
‘…in
rela
tion
to s
afet
y ca
se d
evel
opm
ent a
nd
com
plia
nce
over
all,
that
NOP
SA re
vise
its
appr
oach
to
inte
ract
ing
with
ope
rato
rs p
rior t
o th
e sa
fety
cas
e as
sess
men
t pro
cess
and
sub
sequ
ently
dire
ct m
ore
reso
urce
s in
to it
s ad
viso
ry fu
nctio
ns. W
e fu
rthe
r re
com
men
d th
at N
OPSA
dev
elop
and
impl
emen
t a
form
al p
lan
for s
uppo
rtin
g an
d gu
idin
g ea
ch o
pera
tor
prio
r to
safe
ty c
ase
acce
ptan
ce, a
s w
ell a
s fo
r ong
oing
co
mpl
ianc
e w
ith th
at s
afet
y ca
se, r
ecog
nisi
ng th
e un
ique
exp
erie
nce,
cap
abili
ties
and
asse
ssed
risk
of
that
ope
rato
r. Ea
ch p
lan
need
s to
incl
ude
advi
ce,
educ
atio
n an
d lia
ison
mee
tings
with
the
oper
ator
s. Th
e pl
an n
eeds
to b
e co
ntin
uous
ly re
view
ed a
nd
reas
sess
ed b
ased
on
the
late
st in
form
atio
n, in
clud
ing
the
inte
ract
ion
with
the
oper
ator
’.
Acce
pted
.
The
Com
mon
wea
lth c
onsi
ders
that
this
re
com
men
datio
n is
con
sist
ent w
ith re
com
men
datio
n 3
of th
e Of
fsho
re P
etro
leum
Saf
ety
Regu
lato
ry In
quiry
(N
OPSA
Rep
ort)
.
Cons
iste
nt w
ith th
e Co
mm
onw
ealth
’s re
spon
se
to re
com
men
datio
n 3
of th
e N
OPSA
Rep
ort,
the
Com
mon
wea
lth n
otes
that
NOP
SA h
as c
omm
ence
d w
ork
to a
ddre
ss th
ese
issu
es a
nd w
ill c
ontin
ue to
be
resp
onsi
ble
for i
mpr
ovin
g in
tera
ctio
n an
d co
nsul
tatio
n w
ith s
take
hold
ers
on th
is.
The
Com
mon
wea
lth p
ropo
ses
that
, as
part
of t
he 2
011
NOP
SA re
view
, a re
view
of p
olic
y m
atte
rs a
roun
d th
e sa
fety
cas
e fr
amew
ork
(incl
udin
g de
velo
pmen
t, co
nten
t re
quire
men
ts a
nd im
plem
enta
tion)
be
incl
uded
.
The
Com
mon
wea
lth (t
hrou
gh D
RET
and
NO
PSA)
is
prog
ress
ing
the
Term
s of
Ref
eren
ce fo
r the
201
1 re
view
of N
OPS
A’s
oper
atio
ns. T
he 2
011
NO
PSA
Oper
atio
nal R
evie
w w
ill fo
cus
on th
e le
gisl
ated
re
quire
men
t to
asse
ss th
e ef
fect
iven
ess
of N
OPS
A;
NOP
SA’s
enga
gem
ent w
ith o
pera
tors
; and
NO
PSA’
s ro
le in
resp
ondi
ng to
inci
dent
s in
volv
ing
the
offs
hore
pe
trol
eum
indu
stry
.
Furt
herm
ore,
the
Com
mon
wea
lth h
as is
sued
a
Stat
emen
t of E
xpec
tatio
ns to
NO
PSA
whi
ch s
ets
out
the
Min
iste
r for
Res
ourc
es a
nd E
nerg
y’s
expe
ctat
ions
, as
the
resp
onsi
ble
Com
mon
wea
lth M
inis
ter,
on m
atte
rs
rela
ting
to th
e ex
erci
se o
f the
ir fu
nctio
ns a
nd p
ower
s un
der t
he O
PGG
S Ac
t and
ass
ocia
ted
regu
latio
ns a
nd
prin
cipl
es o
f bes
t pra
ctic
e re
gula
tory
adm
inis
trat
ion.
The
CEO
of N
OPS
A w
ill b
e re
spon
sibl
e fo
r im
prov
ing
the
inte
ract
ion
betw
een
NO
PSA
and
its s
take
hold
ers.
The
Com
mon
wea
lth w
ill w
ork
with
the
CEO
to
dete
rmin
e th
e pr
oces
s fo
r the
201
1 re
view
and
will
co
nsul
t with
sta
keho
lder
s to
det
erm
ine
the
mos
t ap
prop
riate
mea
ns o
f ens
urin
g im
prov
emen
ts in
the
deve
lopm
ent,
impl
emen
tatio
n an
d co
mpl
ianc
e w
ith
the
safe
ty c
ase
requ
irem
ent.
79
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
83Th
e re
gula
tor s
houl
d pr
e-as
sess
and
revi
ew in
a g
ener
ic
sens
e, a
nd in
con
junc
tion
with
the
offs
hore
pet
role
um
indu
stry
, ava
ilabl
e op
tions
for w
ell c
ontr
ol in
the
even
t of
a b
low
out.
Bein
g ‘m
atch
fit’
in th
is s
ense
will
ena
ble
a qu
icke
r and
mor
e ef
fect
ive
resp
onse
in te
rms
of
safe
ty a
sses
smen
t, an
d w
ill e
nsur
e th
at e
xpec
tatio
ns o
f bo
th o
pera
tor a
nd re
gula
tor a
re m
ore
read
ily a
ligne
d.
Acce
pted
in p
rinci
ple.
The
Com
mon
wea
lth a
gree
s th
at th
e M
onta
ra in
cide
nt
iden
tified
the
need
for m
ore
activ
e em
erge
ncy
resp
onse
eng
agem
ent b
y re
gula
tors
and
indu
stry
. Suc
h en
gage
men
t nee
ds to
be
bala
nced
to e
nsur
e bo
th
oper
ator
resp
onsi
bilit
y an
d re
gula
tor i
ndep
ende
nce
is
not c
ompr
omis
ed.
The
Com
mon
wea
lth (t
hrou
gh D
RET
and
NO
PSA)
is
prog
ress
ing
the
Term
s of
Ref
eren
ce fo
r the
201
1 re
view
of N
OPS
A’s
oper
atio
ns. T
he 2
011
NO
PSA
Oper
atio
nal R
evie
w w
ill fo
cus
on th
e le
gisl
ated
re
quire
men
t to
asse
ss th
e ef
fect
iven
ess
of N
OPS
A;
NOP
SA’s
enga
gem
ent w
ith o
pera
tors
; and
NO
PSA’
s ro
le in
resp
ondi
ng to
inci
dent
s in
volv
ing
the
offs
hore
pe
trol
eum
indu
stry
.
Furt
herm
ore,
the
Com
mon
wea
lth h
as is
sued
a
Stat
emen
t of E
xpec
tatio
ns to
NO
PSA
whi
ch s
ets
out
the
Min
iste
r for
Res
ourc
es a
nd E
nerg
y’s
expe
ctat
ions
, as
the
resp
onsi
ble
Com
mon
wea
lth M
inis
ter,
on m
atte
rs
rela
ting
to th
e ex
erci
se o
f the
ir fu
nctio
ns a
nd p
ower
s un
der t
he O
PGG
S Ac
t and
ass
ocia
ted
regu
latio
ns a
nd
prin
cipl
es o
f bes
t pra
ctic
e re
gula
tory
adm
inis
trat
ion.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
As p
art o
f thi
s pr
oces
s, le
gal c
onsi
dera
tion
will
be
give
n to
the
enga
gem
ent b
etw
een
the
regu
lato
r(s) a
nd
oper
ator
(s) i
n re
spon
ding
to a
wel
l con
trol
inci
dent
.
80
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
84In
any
futu
re s
imila
r blo
wou
t or o
ffsh
ore
emer
genc
y sit
uatio
n, th
e M
inist
er a
ppoi
nt (t
hrou
gh e
ither
a N
OPR
or th
e re
leva
nt D
epar
tmen
t) a
seni
or p
ublic
ser
vant
to
esta
blish
and
ove
rsig
ht a
cen
tral
coo
rdin
atin
g bo
dy th
at
will
faci
litat
e in
tera
ctio
n be
twee
n re
gula
tors
, ind
ustr
y, AM
SA a
nd th
e ow
ner/o
pera
tor.
Prim
ary
resp
onsib
ility
fo
r sto
ppin
g a
blow
out s
houl
d re
mai
n w
ith th
e ow
ner/
oper
ator
but
sho
uld
be s
ubje
ct to
dire
ctio
n fr
om
the
cent
ral c
oord
inat
ing
body
in c
onsu
ltatio
n w
ith
stak
ehol
ders
(inc
ludi
ng th
e ow
ner/o
pera
tor).
Acce
pted
.
Refe
r rec
omm
enda
tion
94.
The
Com
mon
wea
lth a
ccep
ts th
e re
com
men
datio
n fo
r th
e es
tabl
ishm
ent o
f a c
entr
al c
oord
inat
ing
body
in
resp
ondi
ng to
a fu
ture
off
shor
e pe
trol
eum
inci
dent
. Th
is ro
le w
ill b
e fu
lfille
d by
DRE
T. Th
e in
cide
nt
resp
onse
will
be
supp
orte
d by
a fr
amew
ork
for i
ncid
ent
man
agem
ent a
nd c
oord
inat
ion.
Thi
s fr
amew
ork
will
cl
early
defi
ne th
e re
spon
sibi
litie
s of
eac
h ag
ency
, in
clud
ing
proc
edur
es a
nd a
ccou
ntab
ilitie
s fo
r the
m
anag
emen
t of f
utur
e oi
l spi
ll in
cide
nts.
The
Com
mon
wea
lth n
otes
that
the
purp
ose
of th
e ce
ntra
l coo
rdin
atin
g bo
dy in
resp
ondi
ng to
a fu
ture
of
fsho
re p
etro
leum
inci
dent
will
be
to fa
cilit
ate
inte
ract
ion
and
com
mun
icat
ion
betw
een
stak
ehol
ders
an
d w
ith th
e pu
blic
. Thi
s bo
dy w
ill n
ot a
ssum
e an
y as
pect
of t
he C
omba
t Age
ncy
role
as
desi
gnat
ed u
nder
th
e N
atio
nal P
lan.
Aust
ralia
’s of
fsho
re le
gisl
ativ
e an
d re
gula
tory
regi
me
plac
es le
gal o
blig
atio
ns o
n op
erat
ors
for w
ell c
ontr
ol,
incl
udin
g ar
rest
ing
a w
ell b
low
out.
The
Com
mon
wea
lth (t
hrou
gh D
RET
and
NO
PSA)
is
prog
ress
ing
the
Term
s of
Ref
eren
ce fo
r the
201
1 re
view
of N
OPS
A’s
oper
atio
ns. T
he 2
011
NO
PSA
Oper
atio
nal R
evie
w w
ill fo
cus
on th
e le
gisl
ated
re
quire
men
t to
asse
ss th
e ef
fect
iven
ess
of N
OPS
A;
NOP
SA’s
enga
gem
ent w
ith o
pera
tors
; and
NO
PSA’
s ro
le in
resp
ondi
ng to
inci
dent
s in
volv
ing
the
offs
hore
pe
trol
eum
indu
stry
.
Furt
herm
ore,
the
Com
mon
wea
lth h
as is
sued
a
Stat
emen
t of E
xpec
tatio
ns to
NO
PSA
whi
ch s
ets
out
the
Min
iste
r for
Res
ourc
es a
nd E
nerg
y’s
expe
ctat
ions
, as
the
resp
onsi
ble
Com
mon
wea
lth M
inis
ter,
on m
atte
rs
rela
ting
to th
e ex
erci
se o
f the
ir fu
nctio
ns a
nd p
ower
s un
der t
he O
PGG
S Ac
t and
ass
ocia
ted
regu
latio
ns a
nd
prin
cipl
es o
f bes
t pra
ctic
e re
gula
tory
adm
inis
trat
ion.
The
deve
lopm
ent o
f an
inci
dent
man
agem
ent a
nd
coor
dina
tion
fram
ewor
k fo
r dea
ling
with
inci
dent
s in
volv
ing
the
offs
hore
pet
role
um in
dust
ry w
ill b
e le
d by
DRE
T in
con
junc
tion
with
NO
PSA
and
rele
vant
st
akeh
olde
rs, a
nd w
ill b
e fin
alis
ed b
y th
e en
d of
201
1.
81
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
85Th
e bo
dy e
stab
lishe
d to
und
erta
ke a
cen
tral
co
ordi
natio
n an
d fa
cilit
atio
n ro
le in
the
even
t of a
ny
futu
re b
low
out i
n Co
mm
onw
ealth
wat
ers
shou
ld
unde
rtak
e to
mak
e al
l rel
evan
t inf
orm
atio
n pu
blic
ally
av
aila
ble
from
one
, aut
horit
ativ
e an
d ea
sy to
acc
ess
sour
ce.
Acce
pted
.
Refe
r rec
omm
enda
tions
84
and
94.
The
Com
mon
wea
lth a
gree
s th
at th
e pu
rpos
e of
th
e ce
ntra
l coo
rdin
atin
g bo
dy w
ill b
e to
faci
litat
e in
tera
ctio
n an
d co
mm
unic
atio
n be
twee
n st
akeh
olde
rs
and
with
the
publ
ic. T
his
role
will
be
fulfi
lled
by
DRET
. In
this
rega
rd, i
t will
als
o ha
ve re
spon
sibi
lity
for
com
mun
icat
ing
to th
e pu
blic
on
all e
lem
ents
of t
he
inci
dent
.
In fu
lfilli
ng th
is fu
nctio
n, D
RET
will
be
able
to re
ques
t, an
d ha
ve a
cces
s to
, spe
cial
ised
cap
abili
ty fr
om o
ther
ag
enci
es to
pro
vide
it w
ith th
e ne
cess
ary
reso
urce
s, su
ch a
s sa
telli
te im
ager
y, du
ring
the
cour
se o
f an
inci
dent
resp
onse
. Thi
s w
ill a
lso
ensu
re th
at th
at
adeq
uate
and
rele
vant
info
rmat
ion
is d
isse
min
ated
to
the
publ
ic th
roug
hout
the
cour
se o
f the
inci
dent
re
spon
se.
In a
dvan
cing
the
inci
dent
man
agem
ent a
nd
coor
dina
tion
fram
ewor
k, w
hich
will
be
a ke
y el
emen
t of
the
oper
atin
g pl
atfo
rm fo
r the
cen
tral
coo
rdin
atin
g bo
dy, t
he C
omm
onw
ealth
will
wor
k to
dev
elop
the
capa
city
whe
re g
aps
are
iden
tified
in re
spec
t of
spec
ialis
ed in
fras
truc
ture
or t
rain
ing.
The
deve
lopm
ent o
f an
inci
dent
man
agem
ent a
nd
coor
dina
tion
fram
ewor
k fo
r dea
ling
with
inci
dent
s in
volv
ing
the
offs
hore
pet
role
um in
dust
ry w
ill b
e le
d by
DRE
T in
con
junc
tion
with
NO
PSA
and
rele
vant
st
akeh
olde
rs, a
nd w
ill b
e fin
alis
ed b
y th
e en
d of
201
1.
82
83
Chapter 6 of the Montara ReportEnvironmental Response
Chapter 6 of the Report – Environmental Response considers the protection and management of the marine environment and remediation of the area both during and post the Montara incident. The chapter contains 15 of 105 recommendations.
84
Chap
ter
6 –
Envi
ronm
enta
l Res
pons
e
Reco
mm
enda
tions
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
86Th
e N
atio
nal P
lan
shou
ld b
e re
view
ed to
cla
rify
the
arra
ngem
ents
to a
pply
in C
omm
onw
ealth
wat
ers
rega
rdin
g ke
y ro
les
and
resp
onsi
bilit
ies,
incl
udin
g in
re
latio
n to
the
ESC,
in th
e ev
ent o
f an
oil s
pill.
Thi
s sh
ould
als
o ad
dres
s an
y ne
cess
ary
trai
ning
requ
ired.
Acce
pted
.
The
Com
mon
wea
lth a
gree
s th
at th
e re
spon
sibi
litie
s of
sta
keho
lder
s un
der t
he N
atio
nal P
lan
need
to b
e cl
arifi
ed, n
otin
g th
at th
e N
atio
nal P
lan
is n
ot a
lega
lly
enfo
rcea
ble
inst
rum
ent.
The
com
preh
ensi
ve a
sses
smen
t of t
he N
atio
nal P
lan
curr
ently
bei
ng c
ondu
cted
by
AMSA
in c
onsu
ltatio
n w
ith th
e N
atio
nal P
lan
stak
ehol
ders
will
defi
ne th
e ro
les
and
resp
onsi
bilit
ies
spec
ific
to C
omm
onw
ealth
ag
enci
es w
ithin
the
Nat
iona
l Pla
n. T
his
will
incl
ude
havi
ng c
lear
er a
rran
gem
ents
for b
oth
oper
atio
nal a
nd
scie
ntifi
c m
onito
ring.
The
Com
mon
wea
lth is
pro
gres
sing
the
deve
lopm
ent o
f a
resp
onse
pla
n fo
r the
Com
mon
wea
lth m
arin
e ar
ea a
s a
subs
et o
f the
Nat
iona
l Pla
n. S
uch
a pl
an w
ould
spe
cify
re
spon
sibili
ties
of e
ach
Com
mon
wea
lth d
epar
tmen
t an
d ag
ency
in re
latio
n to
the
oil s
pill
resp
onse
and
sp
ecifi
cally
add
ress
the
mat
ter o
f the
ESC
.
Ther
e ar
e cu
rren
tly a
rran
gem
ents
in p
lace
with
st
ates
and
terr
itorie
s th
at p
rovi
de fo
r the
util
isat
ion
of o
pera
tiona
l cap
abili
ty fr
om th
ese
juris
dict
ions
in
resp
ondi
ng to
inci
dent
s in
Com
mon
wea
lth w
ater
s.
All a
ppro
pria
te tr
aini
ng in
resp
ect o
f the
Nat
iona
l Pl
an is
and
will
con
tinue
be
prov
ided
by
AMSA
and
th
e re
leva
nt N
atio
nal P
lan
stak
ehol
ders
. Tra
inin
g fo
r of
fsho
re p
etro
leum
per
sonn
el is
to b
e pr
ovid
ed o
n a
cost
reco
very
bas
is.
Cons
iste
nt w
ith a
rran
gem
ents
und
er th
e N
atio
nal
Plan
, AM
SA e
stab
lishe
d an
Inci
dent
Ana
lysi
s Te
am
(IAT)
to re
view
the
resp
onse
to th
e M
onta
ra W
ellh
ead
Plat
form
. The
pur
pose
of t
he re
view
was
to p
rovi
de
stra
tegi
c re
com
men
datio
ns fo
r im
prov
emen
ts to
the
Nat
iona
l Pla
n ar
rang
emen
ts a
nd id
entif
y le
sson
s le
arne
d to
impr
ove
futu
re m
ajor
inci
dent
resp
onse
s. Th
e M
arch
201
0 Re
port
of t
he IA
T id
entifi
ed e
ight
re
com
men
datio
ns w
hich
are
bei
ng p
rogr
esse
d.
A co
mpr
ehen
sive
ass
essm
ent o
f the
Nat
iona
l Pla
n is
un
derw
ay a
nd w
ill b
e fin
alis
ed b
y th
e en
d of
201
1. T
he
purp
ose
of th
is a
sses
smen
t is
to d
eter
min
e if
curr
ent
arra
ngem
ents
are
ade
quat
e to
pro
vide
an
effe
ctiv
e re
spon
se to
mar
ine
casu
altie
s an
d po
llutio
n of
the
sea
by o
il an
d ha
zard
ous
noxi
ous
subs
tanc
es a
nd, w
here
de
ficie
ncie
s ar
e id
entifi
ed, m
ake
reco
mm
enda
tions
to
rect
ify th
em.
The
asse
ssm
ent w
ill p
rovi
de a
naly
sis
on a
ny g
aps
in
resp
onse
pre
pare
dnes
s an
d ca
pabi
litie
s an
d pr
ovid
e re
com
men
datio
ns fo
r im
prov
emen
t to
the
curr
ent
regi
me,
and
will
als
o co
nsid
er s
ucce
ssio
n pl
anni
ng a
nd
trai
ning
arr
ange
men
ts u
nder
the
Nat
iona
l Pla
n.
85
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
87DE
WH
A sh
ould
par
ticip
ate
in tr
aini
ng p
rogr
ams
Acce
pted
.Th
e Co
mm
onw
ealth
not
es th
at, s
ince
the
Mon
tara
an
d ex
erci
ses
rele
vant
to a
n oi
l spi
ll in
the
mar
ine
inci
dent
, in
adva
nce
of a
dec
ision
rega
rdin
g en
viro
nmen
t.re
spon
sibili
ties
unde
r the
Nat
iona
l Pla
n, th
e De
part
men
t of
Sus
tain
abili
ty, E
nviro
nmen
t, W
ater
, Pop
ulat
ion
and
Com
mun
ities
(DSE
WPa
C) (f
orm
erly
DEW
HA)
ha
s un
dert
aken
to d
evel
op s
taff
cap
abili
ty th
roug
h ap
prop
riate
trai
ning
and
par
ticip
atio
n in
cou
rses
.
Furt
her i
mpl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
the
outc
omes
of t
he c
ompr
ehen
sive
as
sess
men
t of t
he N
atio
nal P
lan
whi
ch is
bei
ng
coor
dina
ted
by A
MSA
and
the
Nat
iona
l Pla
n st
akeh
olde
rs a
nd w
ill b
e fin
alis
ed b
y th
e en
d of
201
1.
86
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
88Th
e N
atio
nal P
lan
shou
ld b
e re
vise
d to
ens
ure
that
it
fully
com
preh
ends
env
ironm
enta
l mat
ters
and
th
at it
reco
gnis
es th
e im
port
ance
of t
he p
rom
pt
impl
emen
tatio
n of
Sci
entifi
c M
onito
ring
to fa
cilit
ate
the
asse
ssm
ent o
f the
env
ironm
enta
l im
pact
s of
an
inci
dent
.
Acce
pted
.
The
Com
mon
wea
lth is
pro
gres
sing
Nat
iona
l Co
ntin
genc
y Pl
ans
as a
par
t of t
he c
ompr
ehen
sive
as
sess
men
t of t
he N
atio
nal P
lan
to C
omba
t Pol
lutio
n of
the
Sea
by O
il an
d Ot
her N
oxio
us a
nd H
azar
dous
Su
bsta
nces
that
is b
eing
und
erta
ken
by A
MSA
in
cons
ulta
tion
with
Nat
iona
l Pla
n st
akeh
olde
rs.
The
asse
ssm
ent o
f Nat
iona
l Con
tinge
ncy
Plan
s w
ill
deve
lop
a cl
ear p
lan
and
deliv
ery
mec
hani
sm fo
r th
e pr
ovis
ion
of e
nviro
nmen
tal a
dvic
e, p
repa
ratio
n an
d m
aint
enan
ce o
f Net
Env
ironm
enta
l Ben
efit
Anal
ysis
, wild
life
resp
onse
and
mon
itorin
g fo
r a s
pill
whe
re th
e Co
mm
onw
ealth
is th
e le
ad a
genc
y (re
fer
reco
mm
enda
tion
3 of
the
IAT
Repo
rt).
It w
ill a
lso
incl
ude
a cl
ear s
tate
men
t on
sour
cing
Com
mon
wea
lth
envi
ronm
enta
l and
sci
entifi
c ad
vice
. Ind
ustr
y an
d ot
her s
take
hold
ers
have
an
oppo
rtun
ity to
pro
vide
in
put o
n th
e m
ost a
ppro
pria
te m
echa
nism
for s
eeki
ng
expe
rt a
dvic
e th
roug
h th
e N
atio
nal C
ontin
genc
y Pl
an
asse
ssm
ent p
roce
ss.
Cons
iste
nt w
ith a
rran
gem
ents
und
er th
e N
atio
nal
Plan
, AM
SA e
stab
lishe
d an
IAT
to re
view
the
resp
onse
to
the
Mon
tara
Wel
lhea
d Pl
atfo
rm. T
he p
urpo
se o
f th
e re
view
was
to p
rovi
de s
trat
egic
reco
mm
enda
tions
fo
r im
prov
emen
ts to
the
Nat
iona
l Pla
n ar
rang
emen
ts
and
iden
tify
less
ons
lear
ned
to im
prov
e fu
ture
maj
or
inci
dent
resp
onse
s. Th
e M
arch
201
0 Re
port
of t
he IA
T id
entifi
ed e
ight
reco
mm
enda
tions
whi
ch a
re b
eing
pr
ogre
ssed
.
The
com
preh
ensi
ve a
sses
smen
t of t
he N
atio
nal P
lan
is
unde
rway
and
will
be
final
ised
by
the
end
of 2
011.
The
pu
rpos
e of
this
ass
essm
ent i
s to
det
erm
ine
if cu
rren
t ar
rang
emen
ts a
re a
dequ
ate
to p
rovi
de a
n ef
fect
ive
resp
onse
to m
arin
e ca
sual
ties
and
pollu
tion
of th
e se
a by
oil
and
haza
rdou
s no
xiou
s su
bsta
nces
and
, whe
re
defic
ienc
ies
are
iden
tified
, mak
e re
com
men
datio
ns to
re
ctify
them
.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
The
Com
mon
wea
lth w
ill a
lso
impl
emen
t cha
nges
th
roug
h ap
prop
riate
legi
slat
ive
inst
rum
ents
to e
nsur
e th
e pr
ompt
impl
emen
tatio
n of
Sci
entifi
c M
onito
ring
follo
win
g an
inci
dent
.
87
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
In a
dditi
on, t
he in
dust
ry, t
hrou
gh th
e Au
stra
lian
Petr
oleu
m P
rodu
ctio
n an
d Ex
plor
atio
n As
soci
atio
n (A
PPEA
), th
e pe
ak in
dust
ry b
ody
repr
esen
ting
Aust
ralia
’s of
fsho
re o
il an
d ga
s in
dust
ry, h
as d
evel
oped
Oil
Spill
Pr
epar
edne
ss a
nd R
espo
nse
Impr
ovem
ent S
trat
egie
s fo
r the
ups
trea
m p
etro
leum
indu
stry
whi
ch in
clud
es
resp
onse
mon
itorin
g (o
pera
tiona
l and
sci
entifi
c).
88
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
89Pr
oced
ures
for t
he a
ppro
val o
f dev
elop
men
t pro
ject
s sh
ould
ens
ure
that
con
ditio
ns o
f app
rova
l are
co
mpr
ehen
sive
and
cle
arly
set
out
the
oblig
atio
ns o
f th
eir p
ropo
nent
s in
rela
tion
to e
nviro
nmen
tal m
atte
rs
(incl
udin
g ex
pect
ed m
onito
ring
and
rem
edia
tion
oblig
atio
ns).
Acce
pted
.
The
Com
mon
wea
lth a
gree
s th
at th
e re
quire
men
ts fo
r Sc
ient
ific
Mon
itorin
g an
d en
viro
nmen
tal r
emed
iatio
n in
the
even
t of a
n in
cide
nt s
houl
d be
incl
uded
as
a co
nditi
on o
f app
rova
l und
er th
e EP
BC A
ct fo
r fut
ure
petr
oleu
m a
ctiv
ities
. Suc
h a
cond
ition
will
reaf
firm
th
e ‘p
ollu
ter p
ays’
prin
cipl
e in
that
the
oper
ator
will
be
resp
onsi
ble
for c
over
ing
the
cost
s of
Sci
entifi
c M
onito
ring
and/
or e
nviro
nmen
tal r
emed
iatio
n in
the
even
t of a
n in
cide
nt.
Mec
hani
sms
for r
equi
ring
Scie
ntifi
c M
onito
ring
and
rem
edia
tion
unde
r the
OPG
GS A
ct w
ill a
lso
be
inve
stig
ated
. The
Com
mon
wea
lth n
otes
that
Par
t 6.4
of
the
OPGG
S Ac
t (Re
stor
atio
n of
the
Envi
ronm
ent)
pr
ovid
es th
e De
sign
ated
Aut
horit
y w
ith th
e au
thor
ity
to is
sue
a di
rect
ion
to a
n op
erat
or in
resp
ect o
f en
viro
nmen
tal r
emed
iatio
n.
Unde
r the
EPB
C Ac
t, al
l new
app
rove
d of
fsho
re
prod
uctio
n fa
cilit
ies
will
incl
ude
requ
irem
ents
to
obta
in s
uffic
ient
bas
elin
e in
form
atio
n to
ena
ble
an
asse
ssm
ent o
f any
impa
cts
and
impl
emen
t an
agre
ed
mon
itorin
g pr
ogra
m in
the
even
t of a
spi
ll.
The
Com
mon
wea
lth w
ill im
plem
ent c
hang
es th
roug
h ap
prop
riate
legi
slat
ive
inst
rum
ents
to e
nsur
e th
e pr
ompt
impl
emen
tatio
n of
Sci
entifi
c M
onito
ring
durin
g an
inci
dent
.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
as
it ap
plie
s to
app
rova
ls u
nder
the
OPG
GS
Act a
nd
the
EPBC
Act
will
be
led
by D
RET
and
DSEW
PaC
resp
ectiv
ely,
on a
n on
goin
g ba
sis.
The
Long
Ter
m S
cien
tific
Mon
itorin
g Pr
ogra
mm
e, a
s ag
reed
by
PTTE
P AA
, will
con
tinue
to b
e m
anag
ed b
y DS
EWPa
C. L
esso
ns le
arne
d fr
om th
e im
plem
enta
tion
of th
is p
lan
will
info
rm th
e fu
ture
dev
elop
men
t of “
off
the
shel
f” m
onito
ring
plan
s.
In a
dditi
on, t
he in
dust
ry, t
hrou
gh th
e Au
stra
lian
Petr
oleu
m P
rodu
ctio
n an
d Ex
plor
atio
n As
soci
atio
n (A
PPEA
), th
e pe
ak in
dust
ry b
ody
repr
esen
ting
Aust
ralia
’s of
fsho
re o
il an
d ga
s in
dust
ry, h
as d
evel
oped
Oi
l Spi
ll Pr
epar
edne
ss a
nd R
espo
nse
Impr
ovem
ent
Stra
tegi
es fo
r the
ups
trea
m p
etro
leum
indu
stry
w
hich
incl
udes
resp
onse
mon
itorin
g (o
pera
tiona
l an
d sc
ient
ific)
. Ind
ustr
y ha
s es
tabl
ishe
d Em
erge
ncy
Man
agem
ent S
teer
ing
Com
mitt
ee to
iden
tify
and
impl
emen
t cro
ss-i
ndus
try
lear
ning
s fr
om th
e M
onta
ra
and
Gulf
of M
exic
o in
cide
nts.
89
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
90DE
WH
A, in
con
cert
with
AM
SA a
nd w
ith e
xper
t inp
ut,
shou
ld d
evel
op ‘o
ff th
e sh
elf’
mon
itorin
g pr
ogra
ms
that
can
be
spee
dily
impl
emen
ted
follo
win
g in
cide
nts
in C
omm
onw
ealth
wat
ers.
In th
is c
onte
xt, t
he u
tility
of
the
curr
ent S
cien
tific
Mon
itorin
g pr
ogra
m s
houl
d be
pe
er re
view
ed to
info
rm fu
ture
pol
icy.
Acce
pted
.
Refe
r rec
omm
enda
tion
97.
The
Com
mon
wea
lth a
gree
s th
at a
sui
te o
f “of
f the
sh
elf”
mon
itorin
g pr
ogra
ms
to c
ater
for t
he d
iffer
ent
envi
ronm
ents
in w
hich
an
oil s
pill
coul
d oc
cur,
for
exam
ple,
the
Bass
Str
ait o
r in
prox
imity
to s
ensi
tive
mar
ine
envi
ronm
ents
suc
h as
the
Nin
galo
o Re
ef o
r the
As
hmor
e Re
ef a
nd C
artie
r Isl
ands
are
a, is
requ
ired
and
is d
evel
opin
g su
ch p
rogr
ams.
A re
quire
men
t to
impl
emen
t the
se m
onito
ring
prog
ram
s in
the
even
t of a
spi
ll w
ill b
e re
flect
ed in
the
cond
ition
s of
app
rova
l for
pet
role
um a
ctiv
ity.
The
revi
ew o
f the
PTT
EP A
A Lo
ng T
erm
Sci
entifi
c M
onito
ring
Prog
ram
will
info
rm th
e de
velo
pmen
t of
the
“off
the
shel
f” m
onito
ring
prog
ram
s.
Unde
r the
EPB
C Ac
t, al
l new
app
rove
d of
fsho
re
prod
uctio
n fa
cilit
ies
will
incl
ude
requ
irem
ents
to
obta
in s
uffic
ient
bas
elin
e in
form
atio
n to
ena
ble
an
asse
ssm
ent o
f any
impa
cts
and
impl
emen
t an
agre
ed
mon
itorin
g pr
ogra
m in
the
even
t of a
spi
ll re
sulti
ng
from
off
shor
e pe
trol
eum
act
ivity
(ies)
.
The
deve
lopm
ent
of t
he “
off t
he s
helf”
mon
itorin
g pr
ogra
ms
will
be
led
by t
he p
rimar
y re
gula
tor o
f th
e op
erat
ion
of o
ffsh
ore
prod
uctio
n fa
cilit
ies,
in
cons
ulta
tion
with
DSE
WPa
C on
mat
ters
of N
atio
nal
Envi
ronm
enta
l Sig
nific
ance
as
defin
ed u
nder
the
EP
BC A
ct.
A re
view
of t
he M
onta
ra L
ong
Term
Sci
entifi
c M
onito
ring
Prog
ram
will
be
unde
rtak
en fo
r the
spe
cific
pu
rpos
e of
info
rmin
g th
e de
velo
pmen
t of “
off t
he
shel
f” m
onito
ring
prog
ram
s fo
r use
in fu
ture
inci
dent
s.
90
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
91Th
e fu
ndin
g ar
rang
emen
ts th
at s
uppo
rt th
e N
atio
nal
Plan
sho
uld
be re
view
ed to
ens
ure
that
the
cost
s as
soci
ated
with
bot
h pr
epar
edne
ss a
nd re
spon
se
capa
bilit
y ar
e eq
uita
bly
shar
ed b
etw
een
the
ship
ping
an
d of
fsho
re p
etro
leum
indu
strie
s.
Acce
pted
.
The
Com
mon
wea
lth a
ccep
ts th
at th
e M
onta
ra
inci
dent
hig
hlig
hted
the
need
to a
ddre
ss th
e fu
ndin
g ar
rang
emen
ts s
uppo
rtin
g th
e N
atio
nal P
lan.
The
Com
mon
wea
lth s
uppo
rts
the
‘pol
lute
r pay
s’ pr
inci
ple
and
in a
ccep
ting
this
reco
mm
enda
tion
the
Com
mon
wea
lth w
ill e
stab
lish
a fr
amew
ork
that
pro
vide
s eq
uita
ble
cost
-sha
ring
arra
ngem
ents
be
twee
n th
e sh
ippi
ng a
nd th
e of
fsho
re p
etro
leum
in
dust
ry a
s it
rela
tes
to p
repa
redn
ess
and
resp
onse
ca
pabi
lity
to a
futu
re o
ffsh
ore
petr
oleu
m in
cide
nt.
As a
par
t of i
ts b
road
er le
gisl
ativ
e re
view
of t
he
mar
ine
envi
ronm
ent a
nd p
etro
leum
legi
slat
ion,
the
Com
mon
wea
lth w
ill id
entif
y an
d im
plem
ent a
n ab
ility
to e
nfor
ce th
e ‘p
ollu
ter p
ays’
prin
cipl
e in
the
offs
hore
pet
role
um in
dust
ry.
A di
scus
sion
pap
er, M
onta
ra C
omm
issio
n of
Inqu
iry -
Eq
uita
ble
fund
ing
betw
een
the
ship
ping
and
off
shor
e pe
trol
eum
indu
strie
s, ha
s be
en p
rovi
ded
to k
ey
stak
ehol
ders
. AM
SA a
nd D
RET
will
mee
t with
thes
e st
akeh
olde
rs to
furt
her d
iscu
ss a
nd te
st th
e pr
inci
ple
and
assu
mpt
ions
iden
tified
in th
e di
scus
sion
pap
er.
This
is a
n im
port
ant e
lem
ent i
n id
entif
ying
a p
refe
rred
op
tion
for e
quita
ble
cost
-sha
ring
arra
ngem
ents
be
twee
n th
e of
fsho
re p
etro
leum
and
shi
ppin
g in
dust
ries
on o
il sp
ill p
repa
redn
ess
and
resp
onse
ca
pabi
lity
unde
r the
Nat
iona
l Pla
n.
A co
mpr
ehen
sive
ass
essm
ent o
f the
Nat
iona
l Pla
n is
cu
rren
tly b
eing
und
erta
ken
by A
MSA
in c
onsu
ltatio
n w
ith th
e N
atio
nal P
lan
stak
ehol
ders
. The
ass
essm
ent
will
be
final
ised
by
the
end
of 2
011.
The
asse
ssm
ent w
ill s
peci
fical
ly c
onsi
der t
he a
dequ
acy
and
appr
opria
tene
ss o
f fun
ding
mec
hani
sms
and
the
effic
ienc
y of
cos
t rec
over
y ar
rang
emen
ts in
the
deliv
ery
of th
e re
quire
d ou
tcom
es o
f the
Nat
iona
l Pla
n.
The
Com
mon
wea
lth, i
n co
nsul
tatio
n w
ith th
e of
fsho
re
petr
oleu
m in
dust
ry, i
s un
dert
akin
g a
deta
iled
anal
ysis
of
cos
t rec
over
y ar
rang
emen
ts in
rega
rds
to o
il sp
ill p
repa
redn
ess
and
resp
onse
cap
abili
ty. T
his
will
in
form
futu
re c
hang
es to
the
fund
ing
arra
ngem
ents
un
der t
he N
atio
nal P
lan,
spe
cific
ally
for t
he o
ffsh
ore
petr
oleu
m in
dust
ry.
91
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
iden
tify
the
mos
t app
ropr
iate
mec
hani
sms
for e
nfor
cing
the
Com
mon
wea
lth’s
‘pol
lute
r pay
s’ pr
inci
ple
and
will
en
sure
con
sist
ency
and
pre
vent
dup
licat
ion.
It w
ill
also
hav
e re
gard
to th
e O
PGG
S Ac
t and
ass
ocia
ted
regu
latio
ns; t
he E
PBC
Act a
nd a
ssoc
iate
d Ac
ts; t
he
Prot
ectio
n of
the
Sea
Acts
, the
Nav
igat
ion
Act 1
912
and
rele
vant
inte
rnat
iona
l tre
atie
s.
92
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
92Th
e N
atio
nal P
lan
shou
ld s
peci
fy th
at th
e co
st o
f re
spon
ding
to a
n oi
l spi
ll, o
r oth
er d
amag
e to
the
offs
hore
mar
ine
envi
ronm
ent,
will
be
tota
lly m
et b
y th
e ow
ner/
oper
ator
. Thi
s w
ould
be
cons
iste
nt w
ith th
e In
quiry
’s re
com
men
datio
n fo
r leg
isla
tive
chan
ges
to
the
regu
lato
ry fr
amew
ork
conc
erni
ng o
wne
r/op
erat
ors
mee
ting
the
cost
of m
onito
ring
and
rem
edia
tion
of
envi
ronm
enta
l dam
age.
Acce
pted
.
Refe
r rec
omm
enda
tion
88.
The
Com
mon
wea
lth s
uppo
rts
the
‘pol
lute
r pay
s’ pr
inci
ple
and
in a
ccep
ting
this
reco
mm
enda
tion
the
Com
mon
wea
lth w
ill e
stab
lish
a fr
amew
ork
that
pro
vide
s eq
uita
ble
cost
-sha
ring
arra
ngem
ents
be
twee
n th
e sh
ippi
ng a
nd t
he o
ffsh
ore
petr
oleu
m
indu
stry
as
it re
late
s to
resp
ondi
ng t
o a
futu
re
offs
hore
pet
role
um in
cide
nt.
The
Com
mon
wea
lth n
otes
tha
t cu
rren
tly t
here
is n
o le
gisl
ativ
e re
quire
men
t to
reco
ver c
osts
incu
rred
from
an
off
shor
e pe
trol
eum
act
ivity
inci
dent
resp
onse
un
der t
he N
atio
nal P
lan,
but
und
erst
ands
tha
t th
e of
fsho
re p
etro
leum
indu
stry
cur
rent
ly c
ontr
ibut
es a
pr
opor
tion
of t
he N
atio
nal P
lan
fund
ing
thro
ugh
LNG
an
d cr
ude
tank
er m
ovem
ents
in a
dditi
on t
o th
e di
rect
fu
ndin
g of
AM
OSC
.
The
Com
mon
wea
lth a
lso
note
s th
at th
e OP
GGS
Act
cont
ains
requ
irem
ents
for p
etro
leum
title
hold
ers
to
have
ade
quat
e in
sura
nce
cove
r (re
fer s
571)
to m
eet
the
cost
s of
rem
edia
tion
of e
nviro
nmen
tal d
amag
e.
Furt
her,
Part
6.4
of t
he O
PGGS
Act
pro
vide
s th
e au
thor
ity to
giv
e re
med
iatio
n di
rect
ions
to ti
tleho
lder
s in
rela
tion
to th
e re
stor
atio
n of
the
envi
ronm
ent.
The
impl
emen
tatio
n of
thi
s re
com
men
datio
n w
ill
be in
form
ed b
y a
broa
der c
onsi
dera
tion
of a
ll Co
mm
onw
ealth
legi
slat
ion
appl
icab
le t
o th
e m
arin
e en
viro
nmen
t an
d of
fsho
re p
etro
leum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
of
fsho
re p
etro
leum
legi
slat
ive
regi
me
as id
entifi
ed
thro
ugh
the
Mon
tara
Com
mis
sion
of I
nqui
ry a
nd
othe
r rel
evan
t re
port
s as
app
ropr
iate
. It
will
als
o ha
ve
rega
rd t
o th
e O
PGG
S Ac
t an
d as
soci
ated
regu
latio
ns;
the
EPBC
Act
and
ass
ocia
ted
Acts
; the
Pro
tect
ion
of
the
Sea
Acts
, the
Nav
igat
ion
Act 1
912
and
rele
vant
in
tern
atio
nal t
reat
ies.
This
pro
cess
will
iden
tify
and
impl
emen
t an
abili
ty to
le
gisl
ativ
ely
enfo
rce
the
‘pol
lute
r pay
s’ pr
inci
ple
for
the
offs
hore
pet
role
um in
dust
ry, i
nclu
ding
pro
mpt
im
plem
enta
tion
of S
cien
tific
Mon
itorin
g fo
llow
ing
an o
ffsh
ore
petr
oleu
m in
cide
nt, a
nd w
ill e
nsur
e co
nsis
tenc
y an
d pr
even
t dup
licat
ion.
93
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
93Th
e N
atio
nal P
lan
shou
ld b
e re
view
ed:
a.
to e
nsur
e th
at it
ade
quat
ely
addr
esse
s th
e ris
ks
asso
ciat
ed w
ith o
ffsh
ore
oil a
nd g
as e
xplo
ratio
n;
b.
to re
visi
t the
und
erly
ing
risk
asse
ssm
ent
unde
rtak
en to
info
rm c
apac
ity a
nd p
repa
redn
ess
unde
r the
Nat
iona
l Pla
n;
c.
to e
nsur
e th
at re
spon
se o
pera
tions
can
be
coor
dina
ted
effe
ctiv
ely
with
sta
te a
nd te
rrito
ry
arra
ngem
ents
whe
re a
resp
onse
requ
ires
oper
atio
ns a
cros
s Co
mm
onw
ealth
and
sta
te o
r te
rrito
ry b
orde
rs; a
nd
d.
to e
xplo
re th
e st
ate
of re
adin
ess
of e
quip
men
t an
d re
sour
ces
in th
e co
ntex
t of t
he fu
ture
ex
pans
ion
of th
e pe
trol
eum
indu
stry
. Th
is s
houl
d be
und
erta
ken
by A
MSA
in c
onsu
ltatio
n w
ith
AMOS
C.
Acce
pted
.
The
Com
mon
wea
lth is
und
erta
king
a c
ompr
ehen
sive
as
sess
men
t of t
he N
atio
nal P
lan.
It w
ill a
ddre
ss
item
s (a
), (b
), (c
) and
(d) a
nd w
ill d
efine
the
role
s an
d re
spon
sibi
litie
s sp
ecifi
c to
Com
mon
wea
lth a
genc
ies
with
in th
e N
atio
nal P
lan.
The
Com
mon
wea
lth a
gree
s th
at c
ontin
genc
y pl
anni
ng
need
s to
be
base
d on
risk
ass
essm
ents
that
take
in
to a
ccou
nt p
roba
bilit
y an
d co
nseq
uenc
e. T
he
Com
mon
wea
lth n
otes
that
Aus
tral
ia h
as a
rran
gem
ents
in
pla
ce to
obt
ain
inte
rnat
iona
l ass
ista
nce
in th
e ev
ent
of la
rger
sca
le in
cide
nts
than
Mon
tara
.
A ris
k as
sess
men
t add
ress
ing
issu
es s
uch
as th
e cu
rren
t le
vel o
f ris
k of
pol
lutio
n of
the
sea,
coa
stlin
e an
d po
rts
of E
EZ a
nd o
ffsh
ore
terr
itorie
s by
oil
from
shi
ps,
offs
hore
inst
alla
tions
(fixe
d an
d flo
atin
g) a
nd d
rillin
g rig
s, w
ith re
gard
to th
e lo
catio
n, is
bei
ng u
nder
take
n as
pa
rt o
f the
revi
ew o
f the
Nat
iona
l Pla
n.
The
risk
asse
ssm
ent w
ill in
form
futu
re c
ontin
genc
y pl
anni
ng in
rega
rd to
the
capa
city
bot
h in
the
nine
AM
SA T
ier t
wo/
thre
e st
ockp
iles
arou
nd th
e Au
stra
lian
coas
tline
and
the
AMOS
C st
ockp
ile in
Ge
elon
g. R
esou
rcin
g im
plic
atio
ns a
risin
g fr
om th
is
risk
asse
ssm
ent w
ill b
e id
entifi
ed a
nd a
ddre
ssed
ac
cord
ingl
y. Th
is m
ay a
lso
incl
ude
a m
inim
um
requ
irem
ent f
or re
spon
se c
apac
ity a
nd c
apab
ility
to b
e id
entifi
ed in
con
tinge
ncy
plan
s an
d im
plem
ente
d an
d re
sour
ced
by th
e of
fsho
re p
etro
leum
indu
stry
in th
e ev
ent o
f an
inci
dent
.
A co
mpr
ehen
sive
Rev
iew
of t
he N
atio
nal P
lan
has
com
men
ced
and
is b
eing
coo
rdin
ated
by
AMSA
in
cons
ulta
tion
with
the
Nat
iona
l Pla
n st
akeh
olde
rs. T
he
Revi
ew is
to b
e fin
alis
ed b
y th
e en
d of
201
1.
The
purp
ose
of th
e Re
view
, am
ongs
t oth
er m
atte
rs, i
s to
det
erm
ine
if cu
rren
t arr
ange
men
ts a
re a
dequ
ate
to p
rovi
de a
n ef
fect
ive
resp
onse
to m
arin
e ca
sual
ties
and
pollu
tion
of th
e se
a by
oil
and
haza
rdou
s no
xiou
s su
bsta
nces
and
, whe
re d
efici
enci
es a
re id
entifi
ed, m
ake
reco
mm
enda
tions
to re
ctify
them
.
The
Revi
ew is
con
side
ring
the
adeq
uacy
of t
he In
ter-
Gove
rnm
enta
l Agr
eem
ents
and
the
exis
ting
dom
estic
le
gal,
regu
lato
ry, g
over
nanc
e an
d pr
oced
ural
regi
me
that
app
lies
to th
e N
atio
nal P
lan.
It is
als
o co
nsid
erin
g th
e ef
fect
iven
ess
of c
urre
nt fu
nctio
ns a
nd re
sour
cing
le
vels
to d
eliv
er o
n N
atio
nal P
lan
outp
uts
and
serv
ices
, an
d th
e ap
prop
riate
ness
of c
urre
nt h
ardw
are
and
equi
pmen
t hol
ding
s an
d lo
catio
ns.
94
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
94Pr
oced
ures
and
acc
ount
abili
ties
shou
ld b
e es
tabl
ishe
d to
ens
ure,
in th
e ev
ent o
f a fu
ture
inci
dent
, tha
t:
a.
ther
e is
ade
quat
e m
onito
ring
of th
e vo
lum
e of
oil
spilt
and
the
spre
ad o
f the
oil
(bot
h su
rfac
e an
d su
b-su
rfac
e di
sper
sed
oil);
and
b.
info
rmat
ion
abou
t the
vol
ume
and
spre
ad o
f the
oi
l is
mad
e av
aila
ble
to th
e pu
blic
thro
ugh
regu
lar
upda
tes.
Acce
pted
.
Refe
r rec
omm
enda
tion
84.
The
Com
mon
wea
lth is
pro
gres
sing
the
inci
dent
m
anag
emen
t and
coo
rdin
atio
n th
at w
ill p
rovi
de
clea
rly d
efine
d re
spon
sibi
litie
s fo
r age
ncie
s, in
clud
ing
proc
edur
es a
nd a
ccou
ntab
ilitie
s fo
r the
man
agem
ent
of fu
ture
oil
spill
inci
dent
s.
In re
spon
ding
to a
futu
re o
ffsh
ore
petr
oleu
m in
cide
nt,
the
Com
mon
wea
lth h
as id
entifi
ed D
RET
as th
e ce
ntra
l coo
rdin
atin
g bo
dy. I
n fu
lfilli
ng th
is fu
nctio
n,
DRET
sho
uld
be a
ble
to re
ques
t, an
d ha
ve a
cces
s to
, sp
ecia
lised
cap
abili
ty fr
om o
ther
age
ncie
s to
pro
vide
it
with
the
nece
ssar
y re
sour
ces,
such
as
sate
llite
im
ager
y, du
ring
the
cour
se o
f the
resp
onse
. Thi
s w
ill
assi
st in
ens
urin
g th
ere
is a
dequ
ate
mon
itorin
g of
an
d in
form
atio
n di
ssem
inat
ion
abou
t the
oil
spill
. W
here
gap
s ar
e id
entifi
ed in
resp
ect o
f spe
cial
ised
in
fras
truc
ture
or t
rain
ing,
the
Com
mon
wea
lth w
ill
wor
k to
dev
elop
this
cap
acity
.
a.
Acce
pted
The
prov
isio
n of
ade
quat
e su
b-su
rfac
e m
onito
ring
for o
il sp
ill re
spon
se is
spe
cial
ised
and
requ
ires
infr
astr
uctu
re (i
nclu
ding
fluo
rom
etry
and
sam
plin
g eq
uipm
ent)
and
trai
ned
pers
onne
l in
read
ines
s fo
r an
inci
dent
.
In re
spec
t of t
he M
onta
ra in
cide
nt, t
here
was
nev
er
suffi
cien
t inf
orm
atio
n to
est
imat
e th
e oi
l flow
rate
w
ith a
hig
h de
gree
of a
ccur
acy.
This
issu
e w
as a
lso
iden
tified
dur
ing
the
Gulf
of M
exic
o in
cide
nt w
here
fiv
e di
ffer
ent m
etho
dolo
gies
wer
e be
ing
used
at a
ny
one
time,
and
it w
as im
poss
ible
for t
he o
il flo
w ra
te to
be
acc
urat
ely
dete
rmin
ed.
The
deve
lopm
ent o
f the
off
shor
e pe
trol
eum
inci
dent
m
anag
emen
t and
coo
rdin
atio
n fr
amew
ork
for d
ealin
g w
ith in
cide
nts
invo
lvin
g th
e of
fsho
re p
etro
leum
in
dust
ry w
ill b
e le
d DR
ET, i
n co
njun
ctio
n w
ith N
OPS
A an
d re
leva
nt s
take
hold
ers,
and
will
be
final
ised
by
the
end
of 2
011.
The
fram
ewor
k w
ill c
lear
ly d
efine
the
role
of t
he
cent
ral c
oord
inat
ing
body
, in
havi
ng re
spon
sibi
lity
for t
he m
anag
emen
t and
com
mun
icat
ion
of in
cide
nt
resp
onse
s, an
d th
e ro
le o
f the
Com
bat A
genc
y, as
ha
ving
ope
ratio
nal r
espo
nsib
ility
und
er th
e N
atio
nal
Plan
for t
he in
cide
nt re
spon
se.
The
deve
lopm
ent o
f an
impr
oved
sub
-sur
face
m
onito
ring
capa
bilit
y fo
r oil
spill
resp
onse
s w
ill b
e co
ordi
nate
d by
AM
SA o
n an
ong
oing
bas
is.
The
outc
omes
of t
he R
evie
w o
f the
Nat
iona
l Pla
n in
rela
tion
to th
e ad
equa
cy a
nd a
ppro
pria
tene
ss
of fu
ndin
g m
echa
nism
s an
d th
e ef
ficie
ncy
of c
ost
reco
very
arr
ange
men
ts in
the
deliv
ery
of th
e N
atio
nal
Plan
will
be
cons
ider
ed in
the
impl
emen
tatio
n of
this
re
com
men
datio
n.
95
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
b.
Acce
pted
Refe
r rec
omm
enda
tion
84.
The
Com
mon
wea
lth p
ropo
ses
that
the
purp
ose
of
the
cent
ral c
oord
inat
ing
body
will
be
to fa
cilit
ate
inte
ract
ion
and
com
mun
icat
ion
betw
een
stak
ehol
ders
an
d w
ith th
e pu
blic
. In
this
rega
rd, i
t will
hav
e re
spon
sibi
lity
for i
nfor
min
g th
e pu
blic
abo
ut th
e vo
lum
e an
d ex
tent
of a
n oi
l spi
ll.
96
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
95Th
e re
gula
tory
fram
ewor
k sh
ould
pro
vide
that
in
resp
ect o
f all
activ
ities
in C
omm
onw
ealth
wat
ers:
a.
ther
e ar
e po
wer
s to
requ
ire c
ompa
nies
invo
lved
in
an
inci
dent
cau
sing
sig
nific
ant e
nviro
nmen
tal
dam
age
to u
nder
take
act
ions
to re
med
iate
th
e da
mag
e to
a s
tand
ard
dete
rmin
ed b
y th
e re
gula
tory
aut
horit
ies;
b.
the
natu
re o
f the
Sci
entifi
c M
onito
ring
and
the
rem
edia
tion
requ
ired
shou
ld b
e de
term
ined
by
envi
ronm
enta
l reg
ulat
ory
agen
cies
rath
er th
an th
e co
mpa
nies
invo
lved
;
c.
the
cost
s of
all
Scie
ntifi
c M
onito
ring
and
rem
edia
tion
shou
ld b
e fu
lly b
orne
by
the
com
pani
es in
volv
ed, w
heth
er th
e re
med
iatio
n is
un
dert
aken
by
the
com
pani
es o
r ano
ther
par
ty
to th
e st
anda
rd d
eter
min
ed b
y th
e re
gula
tory
au
thor
ities
; and
d.
pena
lties
sho
uld
be p
ayab
le fo
r pol
lutio
n on
a n
o fa
ult b
asis
.
The
EPBC
Act
sho
uld
be a
men
ded
to in
clud
e th
e po
wer
s in
a, b
, c a
nd d
abo
ve. T
hese
pow
ers
shou
ld b
e ap
plic
able
to b
oth
pros
pect
ive
and
exis
ting
oper
atio
ns
in C
omm
onw
ealth
wat
ers.
Acce
pted
in p
rinci
ple.
The
Com
mon
wea
lth su
ppor
ts th
e ‘p
ollu
ter p
ays’
prin
cipl
e an
d w
ill e
stab
lish
a fra
mew
ork
that
pro
vide
s equ
itabl
e co
st-s
harin
g ar
rang
emen
ts b
etw
een
the
ship
ping
and
the
offs
hore
pet
role
um in
dust
ry a
s it r
elat
es to
resp
ondi
ng to
a
futu
re o
ffsho
re p
etro
leum
inci
dent
.
Mec
hani
sms
for r
equi
ring
com
pani
es to
bea
r the
cos
t of
mon
itorin
g to
iden
tify
envi
ronm
enta
l dam
age
and
subs
eque
nt re
med
iatio
n ac
tiviti
es, a
s id
entifi
ed b
y th
e re
leva
nt re
gula
tory
age
ncy,
will
be
inve
stig
ated
th
roug
h th
e le
gisl
ativ
e re
view
bei
ng le
d by
DRE
T. T
his
revi
ew w
ill id
entif
y th
e ap
prop
riate
legi
slat
ion
and/
or
regu
latio
ns w
hich
cou
ld m
ost e
ffec
tivel
y ta
ke a
ccou
nt
of th
is re
com
men
datio
n. T
his
revi
ew w
ill in
clud
e co
nsid
erat
ion
of p
ossi
ble
amen
dmen
ts to
the
EPBC
Act
.
Unde
r the
OPG
GS A
ct th
ere
are
exis
ting
pow
ers,
incl
udin
g th
e au
thor
ity in
Par
t 6.4
of t
he O
PGGS
Act
(R
esto
ratio
n of
the
Envi
ronm
ent)
, whi
ch a
llow
s th
e Re
gula
tor g
ive
rem
edia
l dire
ctio
ns to
title
hold
ers
in
rela
tion
to th
e re
stor
atio
n of
the
envi
ronm
ent.
The
Com
mon
wea
lth s
uppo
rts
the
need
for o
vera
rchi
ng
pena
lty p
rovi
sion
s to
be
appl
ied
to th
e of
fsho
re
petr
oleu
m in
dust
ry. T
he C
omm
onw
ealth
’s re
view
of
the
legi
slat
ive
fram
ewor
k w
ill c
onsi
der t
he a
ppro
pria
te
mec
hani
sms
for i
mpl
emen
ting
thes
e pe
nalty
pro
visi
ons
for t
he o
ffsh
ore
mar
ine
envi
ronm
ent,
incl
udin
g a
broa
der r
ange
of c
ompl
ianc
e to
ols
such
as
the
abili
ty
to im
pose
a c
ivil
fine
or p
rohi
bitio
n no
tice
as w
ell a
s a
gene
ral c
ontr
aven
tion
offe
nce
follo
win
g th
e ca
usin
g of
ser
ious
or m
ater
ial h
arm
to a
pro
tect
ed m
atte
r or a
br
each
of a
ppro
val c
ondi
tions
.
Pena
lty p
rovi
sion
s in
resp
ect o
f the
OH
S le
gisl
ativ
e re
gim
e fo
r the
off
shor
e pe
trol
eum
indu
stry
are
als
o be
ing
cons
ider
ed.
Sinc
e th
e M
onta
ra in
cide
nt, t
he C
omm
onw
ealth
ha
s in
clud
ed re
quire
men
ts fo
r Sci
entifi
c M
onito
ring
and
envi
ronm
enta
l rem
edia
tion
in th
e ev
ent o
f an
inci
dent
as
a co
nditi
on o
f app
rova
l und
er th
e EP
BC
Act f
or p
etro
leum
act
iviti
es. T
his
cond
ition
reaf
firm
s th
e ‘p
ollu
ter p
ays’
prin
cipl
e in
that
the
oper
ator
will
be
resp
onsi
ble
for c
over
ing
the
cost
s of
Sci
entifi
c M
onito
ring
and/
or e
nviro
nmen
tal r
emed
iatio
n in
the
even
t of a
n in
cide
nt.
The
Com
mon
wea
lth is
con
side
ring
amen
ding
the
OPGG
S Ac
t to
prov
ide
the
pow
er to
impo
se a
civ
il pe
nalty
regi
me.
Thi
s pr
oces
s w
ill a
lso
cons
ider
in
crea
sing
som
e or
all
of th
e ex
istin
g pe
nalti
es. T
his
proc
ess
will
be
com
plet
ed d
urin
g th
e se
cond
hal
f of
201
1, w
ith a
ny le
gisl
ativ
e am
endm
ents
requ
ired
intr
oduc
ed a
s so
on a
s th
ey c
an b
e ac
com
mod
ated
w
ithin
the
legi
slat
ive
timet
able
.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
furt
her i
nfor
med
by
a br
oade
r con
sider
atio
n of
all
Com
mon
wea
lth le
gisla
tion
appl
icab
le to
the
mar
ine
envi
ronm
ent a
nd o
ffsh
ore
petr
oleu
m le
gisla
tion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slativ
e re
gim
e as
iden
tified
thro
ugh
the
Mon
tara
Com
miss
ion
of In
quiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. I
t will
also
hav
e re
gard
to th
e OP
GGS
Act a
nd a
ssoc
iate
d re
gula
tions
; the
EPB
C Ac
t an
d as
soci
ated
Act
s; th
e Pr
otec
tion
of th
e Se
a Ac
ts, t
he
Nav
igat
ion
Act 1
912
and
rele
vant
inte
rnat
iona
l tre
atie
s.
This
pro
cess
will
iden
tify
and
impl
emen
t an
abili
ty to
le
gisl
ativ
ely
enfo
rce
the
‘pol
lute
r pay
s’ pr
inci
ple
for a
ll ac
tiviti
es in
Com
mon
wea
lth w
ater
s, in
clud
ing
prom
pt
impl
emen
tatio
n of
Sci
entifi
c M
onito
ring
follo
win
g an
off
shor
e pe
trol
eum
inci
dent
, and
will
ens
ure
cons
iste
ncy
and
prev
ent d
uplic
atio
n.
97
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
96Th
e ob
ligat
ion
of c
ompa
nies
invo
lved
in a
n in
cide
nt
to m
eet t
he fu
ll co
sts
of m
onito
ring
and
rem
edia
tion
shou
ld b
e m
ade
a co
nditi
on o
f app
rova
l of p
ropo
sals
un
der t
he E
PBC
Act a
nd O
PGGS
Act
. Sui
tabl
e ar
rang
emen
ts (i
nsur
ance
or o
ther
wis
e) n
eed
to b
e in
pl
ace
to e
nsur
e th
at c
ompa
nies
hav
e th
is c
apac
ity.
Acce
pted
.
Refe
r rec
omm
enda
tion
89.
The
Com
mon
wea
lth su
ppor
ts th
e ‘p
ollu
ter p
ays’
prin
cipl
e an
d in
acc
eptin
g th
is re
com
men
datio
n th
e Co
mm
onw
ealth
will
est
ablis
h a
fram
ewor
k th
at p
rovi
des
equi
tabl
e co
st-s
harin
g ar
rang
emen
ts b
etw
een
the
ship
ping
and
the
offs
hore
pet
role
um in
dust
ry a
s it r
elat
es
to re
spon
ding
to a
futu
re o
ffsho
re p
etro
leum
inci
dent
.
The
Com
mon
wea
lth a
gree
s th
at c
ondi
tions
of a
ppro
val
shou
ld c
lear
ly s
et o
ut th
e pr
opon
ent’s
obl
igat
ions
in
rela
tion
to e
nviro
nmen
t mat
ters
. The
legi
slativ
e re
view
will
con
sider
the
mos
t app
ropr
iate
legi
slativ
e m
echa
nism
s fo
r add
ress
ing
envi
ronm
enta
l mat
ters
, in
clud
ing
inco
rpor
atin
g th
e ‘p
ollu
ter p
ays’
prin
cipl
e in
Aus
tral
ia’s
legi
slativ
e fr
amew
ork
and
requ
iring
m
onito
ring
and
rem
edia
tion
in th
e ev
ent o
f an
inci
dent
.
Mec
hani
sms
for r
equi
ring
Scie
ntifi
c M
onito
ring
and
rem
edia
tion
will
be
inve
stig
ated
thro
ugh
the
legi
slat
ive
revi
ew b
eing
led
by D
RET.
The
Com
mon
wea
lth n
otes
that
Par
t 6.4
of t
he O
PGGS
Ac
t (Re
stor
atio
n of
the
Envi
ronm
ent)
pro
vide
s th
e De
sign
ated
Aut
horit
y w
ith th
e au
thor
ity to
issu
e a
dire
ctio
n to
an
oper
ator
in re
spec
t of e
nviro
nmen
tal
rem
edia
tion.
The
Com
mon
wea
lth a
lso
note
s th
at
insu
ranc
e is
a re
quire
men
t und
er th
e OP
GGS
Act.
Sinc
e th
e M
onta
ra in
cide
nt, t
he C
omm
onw
ealth
has
in
clud
ing
requ
irem
ents
for S
cien
tific
Mon
itorin
g an
d en
viro
nmen
tal r
emed
iatio
n as
a c
ondi
tion
of a
ppro
val
unde
r the
EPB
C Ac
t for
pet
role
um a
ctiv
ities
; how
ever
th
e Co
mm
onw
ealth
not
es th
at n
ot a
ll pe
trol
eum
ac
tiviti
es a
re re
gula
ted
by th
e EP
BC A
ct.
Sinc
e th
e M
onta
ra in
cide
nt, t
he C
omm
onw
ealth
ha
s in
clud
ed re
quire
men
ts fo
r Sci
entifi
c M
onito
ring
and
envi
ronm
enta
l rem
edia
tion
in th
e ev
ent o
f an
inci
dent
as
a co
nditi
on o
f app
rova
l und
er th
e EP
BC
Act f
or p
etro
leum
act
iviti
es. T
his
cond
ition
reaf
firm
s th
e ‘p
ollu
ter p
ays’
prin
cipl
e in
that
the
oper
ator
will
be
resp
onsi
ble
for c
over
ing
the
cost
s of
Sci
entifi
c M
onito
ring
and/
or e
nviro
nmen
tal r
emed
iatio
n in
the
even
t of a
n in
cide
nt.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
furt
her i
nfor
med
by
a br
oade
r con
sider
atio
n of
all
Com
mon
wea
lth le
gisla
tion
appl
icab
le to
the
mar
ine
envi
ronm
ent a
nd o
ffsh
ore
petr
oleu
m le
gisla
tion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slativ
e re
gim
e as
iden
tified
thro
ugh
the
Mon
tara
Com
miss
ion
of In
quiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. I
t will
also
hav
e re
gard
to th
e OP
GGS
Act a
nd a
ssoc
iate
d re
gula
tions
; the
EPB
C Ac
t an
d as
soci
ated
Act
s; th
e Pr
otec
tion
of th
e Se
a Ac
ts, t
he
Nav
igat
ion
Act 1
912
and
rele
vant
inte
rnat
iona
l tre
atie
s.
This
pro
cess
will
iden
tify
and
impl
emen
t an
abili
ty to
le
gisl
ativ
ely
enfo
rce
the
‘pol
lute
r pay
s’ pr
inci
ple
for
the
offs
hore
pet
role
um in
dust
ry, i
nclu
ding
pro
mpt
im
plem
enta
tion
of S
cien
tific
Mon
itorin
g fo
llow
ing
an o
ffsh
ore
petr
oleu
m in
cide
nt, a
nd w
ill e
nsur
e co
nsis
tenc
y an
d pr
even
t dup
licat
ion.
Furt
herm
ore,
the
Com
mon
wea
lth, i
n co
njun
ctio
n w
ith th
e of
fsho
re p
etro
leum
indu
stry
, will
exa
min
e th
e le
gisl
ativ
e ar
rang
emen
ts c
once
rnin
g in
sura
nce
to e
nsur
e co
st re
cove
ry a
rran
gem
ents
follo
win
g oi
l sp
ills
are
effe
ctiv
e. T
his
revi
ew w
ill re
com
men
d an
y ne
cess
ary
impr
ovem
ents
.
98
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
97En
viro
nmen
t pla
ns a
nd O
SCPs
sho
uld
be m
ade
publ
icly
av
aila
ble
as a
con
ditio
n of
app
rova
l of p
ropo
sals
und
er
the
OPGG
S Ac
t, an
d sh
ould
cle
arly
set
out
Sci
entifi
c M
onito
ring
requ
irem
ents
in th
e ev
ent o
f an
oil s
pill.
Acce
pted
.
Refe
r rec
omm
enda
tion
90.
The
Com
mon
wea
lth, i
n co
nsul
tatio
n w
ith th
e of
fsho
re
petr
oleu
m in
dust
ry, i
s co
nsid
erin
g w
heth
er O
il Sp
ill
Cont
inge
ncy
Plan
s ca
n be
pro
vide
d to
the
publ
ic
with
out c
omm
erci
al p
reju
dice
to th
e op
erat
or. T
he
Com
mon
wea
lth n
otes
that
env
ironm
enta
l pla
ns a
re
very
det
aile
d. U
nder
the
Offs
hore
Pet
role
um a
nd
Gree
nhou
se G
as S
tora
ge (E
nviro
nmen
t) Re
gula
tions
20
09, a
sum
mar
y of
an
oper
ator
’s en
viro
nmen
tal p
lan
is m
ade
publ
icly
ava
ilabl
e.
The
Com
mon
wea
lth a
gree
s th
at a
n op
erat
or s
houl
d be
requ
ired
to u
nder
take
Sci
entifi
c M
onito
ring
in th
e ev
ent o
f an
inci
dent
and
this
will
be
cons
ider
ed a
s pa
rt
of th
e le
gisl
ativ
e re
view
bei
ng le
d by
DRE
T.
Any
cond
ition
s on
app
rova
l rel
atin
g to
Sci
entifi
c M
onito
ring
in th
e ev
ent o
f a s
pill
will
nee
d to
be
info
rmed
by
the
exis
ting
leve
l and
type
of m
onito
ring
that
is u
nder
take
n by
the
offs
hore
pet
role
um in
dust
ry
in th
e co
urse
of t
heir
petr
oleu
m o
pera
tions
.
The
requ
irem
ent f
or s
cien
tific
mon
itorin
g an
d en
viro
nmen
tal r
emed
iatio
n in
the
even
t of a
n in
cide
nt
has
been
incl
uded
in E
PBC
Act a
ppro
val c
ondi
tions
fo
r oil
and
gas
deve
lopm
ents
sin
ce th
e M
onta
ra
inci
dent
. Sin
ce th
e M
onta
ra in
cide
nt, i
t has
bec
ome
a st
anda
rd re
quire
men
t for
all
prop
onen
ts to
pub
lish
all m
anag
emen
t and
sci
entifi
c pl
ans
requ
ired
by E
PBC
Act a
ppro
val c
ondi
tions
and
to p
ublis
h th
e re
port
s of
pe
rfor
man
ce a
gain
st th
ose
plan
s.
In re
spec
t of t
he p
ublic
atio
n of
Oil
Spill
Con
tinge
ncy
Plan
s, th
e im
plem
enta
tion
of th
is re
com
men
datio
n w
ill b
e le
d by
DRE
T an
d w
ill b
e co
mpl
eted
with
in th
e se
cond
hal
f of 2
011.
The
impo
sitio
n of
con
ditio
ns o
n pe
trol
eum
act
ivity
will
be
coor
dina
ted
by D
RET
on a
n on
goin
g ba
sis.
Furt
herm
ore,
the
esta
blis
hmen
t of N
atio
nal O
ffsh
ore
Petr
oleu
m S
afet
y an
d En
viro
nmen
tal M
anag
emen
t Au
thor
ity (N
OPS
EMA)
, thr
ough
the
expa
nsio
n of
N
OPSA
, will
resu
lt in
NO
PSEM
A be
com
ing
the
regu
lato
r for
all
offs
hore
pet
role
um a
ctiv
ities
in
Com
mon
wea
lth w
ater
s be
yond
thre
e na
utic
al
mile
s fr
om th
e te
rrito
rial s
ea b
asel
ine.
Und
er th
is
mod
el, t
he S
tate
s an
d N
orth
ern
Terr
itory
will
be
able
to c
onfe
r pow
ers
for t
he re
gula
tion
of o
ffsh
ore
petr
oleu
m a
ctiv
ities
und
er th
eir r
espe
ctiv
e le
gisl
atio
n to
NOP
SEM
A fo
r coa
stal
wat
ers
(ie u
p to
the
thre
e na
utic
al m
ile li
mit)
.
In a
dditi
on to
NO
PSA’
s cu
rren
t reg
ulat
ory
func
tions
, N
OPSE
MA
will
als
o as
sum
e re
spon
sibi
lity
for
envi
ronm
enta
l app
rova
ls, i
nclu
ding
Oil
Spill
Co
ntin
genc
y Pl
ans
unde
r the
OPG
GS
Act.
NO
PSEM
A w
ill re
gula
te s
afet
y, in
tegr
ity a
nd e
nviro
nmen
t pla
ns,
incl
udin
g O
il Sp
ill C
ontin
genc
y Pl
ans,
for m
iner
als
99
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
extr
actio
n an
d gr
eenh
ouse
gas
sto
rage
act
iviti
es in
Co
mm
onw
ealth
wat
ers.
AMSA
will
wor
k w
ith N
OPS
EMA
to d
evel
op a
gree
d ar
rang
emen
ts to
revi
ew O
il Sp
ill C
ontin
genc
y Pl
ans.
Th
e pr
oced
ural
fram
ewor
k su
ppor
ting
the
agre
ed
arra
ngem
ents
will
be
deve
lope
d by
RET
and
AM
SA in
co
nsul
tatio
n w
ith D
SEW
PaC.
The
Com
mon
wea
lth h
as a
lso
issu
ed a
Sta
tem
ent o
f Ex
pect
atio
ns to
NO
PSA
whi
ch s
ets
out t
he M
inis
ter
for R
esou
rces
and
Ene
rgy’
s ex
pect
atio
ns, a
s th
e re
spon
sibl
e Co
mm
onw
ealth
Min
iste
r, on
mat
ters
re
latin
g to
the
exer
cise
of t
heir
func
tions
and
pow
ers
unde
r the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
and
pr
inci
ples
of b
est p
ract
ice
regu
lato
ry a
dmin
istr
atio
n.
98Th
e Go
vern
men
t sho
uld
exam
ine
the
scop
e fo
r a s
ingl
e en
viro
nmen
t pla
n to
mee
t the
regu
lato
ry re
quire
men
ts
of b
oth
the
OPGG
S Ac
t and
the
EPBC
Act
. Thi
s co
uld
poss
ibly
be
achi
eved
by
way
of b
ilate
ral a
gree
men
ts
and
accr
edita
tion
arra
ngem
ents
and
/or l
egis
lativ
e am
endm
ent.
Acce
pted
.
The
Com
mon
wea
lth c
onsi
ders
that
this
re
com
men
datio
n is
con
sist
ent w
ith th
e In
depe
nden
t Re
view
of t
he E
nviro
nmen
t Pro
tect
ion
and
Biod
iver
sity
Cons
erva
tion
Act 1
999,
und
erta
ken
by D
r Alla
n H
awke
AC
in 2
009
(the
Haw
ke R
evie
w).
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
dete
rmin
ed b
y th
e Co
mm
onw
ealth
’s re
spon
se to
the
Haw
ke R
evie
w.
100
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
99OS
CPs
shou
ld b
e en
dors
ed b
y AM
SA p
rior t
o re
gula
tory
ap
prov
al to
ens
ure
that
they
alig
n w
ith th
e N
atio
nal
Plan
. Onc
e fie
ld o
pera
tions
com
men
ce, t
he c
apab
ility
of
ope
rato
rs s
houl
d be
ass
esse
d ag
ains
t the
ir pl
ans,
and
exer
cise
s co
nduc
ted
to e
nsur
e th
e pl
ans
rem
ain
effe
ctiv
e.
Acce
pted
.
The
Com
mon
wea
lth a
gree
s th
at a
n op
port
unity
exi
sts
for A
MSA
to b
e co
nsul
ted
as p
art o
f the
ass
essm
ent o
f an
env
ironm
enta
l pla
n un
der t
he O
PGGS
Act
. Thr
ough
th
is pr
oces
s of
con
sulta
tion,
AM
SA w
ill h
ave
rega
rd
to th
e ad
equa
cy o
f res
ourc
es a
vaila
ble
to m
itiga
te
pollu
tion
and
ensu
re c
onsis
tenc
y w
ith th
e N
atio
nal P
lan.
The
Com
mon
wea
lth w
ill s
tren
gthe
n cu
rren
t pro
cedu
res
for c
onsu
ltatio
n in
rela
tion
to a
ppro
vals
for o
ffsh
ore
petr
oleu
m a
ctiv
ity to
ens
ure
com
preh
ensi
ve
cons
ulta
tion
on O
il Sp
ill C
ontin
genc
y Pl
ans
is b
eing
im
plem
ente
d be
twee
n DR
ET, A
MSA
and
DSE
WPa
C.
The
Com
mon
wea
lth re
cogn
ises
that
the
esta
blish
men
t of
a m
ore
com
preh
ensiv
e co
nsul
tatio
n an
d as
sess
men
t pr
oces
s in
rela
tion
to O
il Sp
ill C
ontin
genc
y Pl
ans
may
re
sult
in a
dditi
onal
reso
urci
ng c
osts
for C
omm
onw
ealth
ag
enci
es, a
nd th
at s
uch
cost
s w
ill n
eed
to b
e re
cove
red
from
the
offs
hore
pet
role
um in
dust
ry. T
he c
ost
reco
very
arr
ange
men
ts w
ill b
e co
nsid
ered
as
part
of
the
Com
mon
wea
lth’s
broa
der r
evie
w o
f the
mar
ine
envi
ronm
ent a
nd p
etro
leum
legi
slatio
n.
In re
latio
n to
the
asse
ssm
ent o
f ope
rato
r cap
abili
ty, t
he
Com
mon
wea
lth n
otes
that
Aus
tral
ia’s
offs
hore
pet
role
um
legi
slativ
e fra
mew
ork
plac
es o
blig
atio
ns o
n op
erat
ors
to d
emon
stra
te to
the
regu
lato
r how
they
inte
nd to
ef
fect
ivel
y ac
quit
thei
r res
pons
ibili
ties u
nder
the
OPGG
S Ac
t, w
hich
incl
udes
env
ironm
enta
l req
uire
men
ts.
The
Com
mon
wea
lth is
wor
king
to s
tren
gthe
n th
e ef
fect
iven
ess
of th
e co
mpl
ianc
e an
d m
onito
ring
fram
ewor
k th
roug
h m
echa
nism
s su
ch a
s th
e pr
opos
ed
pena
lty p
rovi
sion
s id
entifi
ed in
reco
mm
enda
tion
95(d
)
On 1
1 Ap
ril 2
011,
the
Min
iste
r for
Res
ourc
es a
nd
Ener
gy re
affir
med
that
the
Com
mon
wea
lth w
ould
be
prog
ress
ing
the
esta
blis
hmen
t of t
he N
atio
nal O
ffsh
ore
Petr
oleu
m S
afet
y an
d En
viro
nmen
tal M
anag
emen
t Au
thor
ity (N
OPS
EMA)
from
1 J
anua
ry 2
012
by
expa
ndin
g th
e fu
nctio
ns o
f NO
PSA.
Upon
est
ablis
hmen
t, N
OPSE
MA
will
bec
ome
the
regu
lato
r for
all
offs
hore
pet
role
um a
ctiv
ities
in
Com
mon
wea
lth w
ater
s bey
ond
thre
e na
utic
al m
iles
from
the
terri
toria
l sea
bas
elin
e. In
add
ition
to N
OPSA
’s cu
rrent
regu
lato
ry fu
nctio
ns, N
OPSE
MA
will
ass
ume
resp
onsib
ility
for e
nviro
nmen
tal a
ppro
vals,
incl
udin
g Oi
l Sp
ill C
ontin
genc
y Pl
ans u
nder
the
OPGG
S Ac
t. N
OPSE
MA
will
also
regu
late
safe
ty, i
nteg
rity
and
envi
ronm
ent p
lans
fo
r min
eral
s ext
ract
ion
and
gree
nhou
se g
as st
orag
e ac
tiviti
es in
Com
mon
wea
lth w
ater
s.
AMSA
will
wor
k w
ith N
OPS
EMA
to d
evel
op a
gree
d ar
rang
emen
ts to
revi
ew O
il Sp
ill C
ontin
genc
y Pl
ans.
Th
e pr
oced
ural
fram
ewor
k su
ppor
ting
the
agre
ed
arra
ngem
ents
will
be
deve
lope
d by
RET
and
AM
SA in
co
nsul
tatio
n w
ith D
SEW
PaC.
A N
atio
nal O
ffsh
ore
Petr
oleu
m T
itles
Adm
inis
trat
or
(NOP
TA) w
ill b
e es
tabl
ishe
d w
ithin
DRE
T to
adm
inis
ter
title
s an
d da
ta re
latin
g to
off
shor
e pe
trol
eum
, m
iner
als
and
gree
nhou
se g
as s
tora
ge a
ctiv
ities
in
Com
mon
wea
lth w
ater
s.
Unde
r thi
s m
odel
, the
Sta
tes
and
Nor
ther
n Te
rrito
ry
will
be
able
to c
onfe
r pow
ers
for t
he re
gula
tion
of
offs
hore
pet
role
um a
ctiv
ities
und
er th
eir r
espe
ctiv
e le
gisl
atio
n to
NO
PSEM
A an
d N
OPT
A fo
r coa
stal
wat
ers
(ie u
p to
the
thre
e na
utic
al m
ile li
mit)
.
101
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
and
thro
ugh
the
deve
lopm
ent o
f con
sist
ent a
nd b
est
prac
tice
appr
oach
es to
the
adm
inis
trat
ion
of o
ffsh
ore
petr
oleu
m re
gula
tion.
This
fram
ewor
k w
ill b
e fu
rthe
r enh
ance
d by
the
esta
blis
hmen
t of a
sin
gle
natio
nal r
egul
ator
for
offs
hore
pet
role
um, m
iner
al a
nd g
reen
hous
e ga
s st
orag
e ac
tiviti
es. T
he C
omm
onw
ealth
has
ann
ounc
ed
its in
tent
ion
to h
ave
the
sing
le n
atio
nal r
egul
ator
in
plac
e by
Jan
uary
201
2.
Legi
slat
ive
amen
dmen
ts to
impl
emen
t thi
s in
stitu
tiona
l re
form
will
be
intr
oduc
ed in
to th
e Co
mm
onw
ealth
Pa
rliam
ent d
urin
g th
e W
inte
r sitt
ing
perio
d fr
om M
ay–
June
201
1. T
he re
form
s re
flect
ext
ensi
ve c
onsu
ltatio
n w
ith ju
risdi
ctio
ns, i
ndus
try
and
NO
PSA
and
are
supp
orte
d by
the
offs
hore
pet
role
um in
dust
ry
The
Com
mon
wea
lth h
as a
lso
issu
ed a
Sta
tem
ent o
f Ex
pect
atio
ns to
NO
PSA
whi
ch s
ets
out t
he M
inis
ter
for R
esou
rces
and
Ene
rgy’
s ex
pect
atio
ns, a
s th
e re
spon
sibl
e Co
mm
onw
ealth
Min
iste
r, on
mat
ters
re
latin
g to
the
exer
cise
of t
heir
func
tions
and
pow
ers
unde
r the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
and
pr
inci
ples
of b
est p
ract
ice
regu
lato
ry a
dmin
istr
atio
n.
The
impl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
info
rmed
by
a br
oade
r con
side
ratio
n of
all
Com
mon
wea
lth le
gisl
atio
n ap
plic
able
to th
e m
arin
e en
viro
nmen
t and
off
shor
e pe
trol
eum
legi
slat
ion.
It
will
add
ress
gap
s or
out
stan
ding
issu
es in
the
offs
hore
pe
trol
eum
legi
slat
ive
regi
me
as id
entifi
ed th
roug
h th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
oth
er re
leva
nt
repo
rts
as a
ppro
pria
te. T
his
proc
ess
will
als
o ha
ve
rega
rd to
the
OPG
GS
Act a
nd a
ssoc
iate
d re
gula
tions
; th
e EP
BC A
ct a
nd a
ssoc
iate
d Ac
ts; t
he P
rote
ctio
n of
th
e Se
a Ac
ts, t
he N
avig
atio
n Ac
t 191
2 an
d re
leva
nt
inte
rnat
iona
l tre
atie
s.
As p
art o
f the
legi
slat
ive
revi
ew, t
he C
omm
onw
ealth
is
dev
elop
ing
guid
elin
es fo
r the
pet
role
um in
dust
ry
rega
rdin
g th
e re
quire
men
ts fo
r Oil
Spill
Con
tinge
ncy
Plan
s, an
d al
so a
roun
d th
e in
form
atio
n re
quire
men
ts
for o
ffsh
ore
drill
ing
refe
rral
s un
der t
he E
PBC
Act.
102
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
100
Arra
ngem
ents
sho
uld
be d
evel
oped
to m
inim
ise
dupl
icat
ion
betw
een
the
EPBC
Act
and
the
OPG
SS A
ct
Envi
ronm
ent R
egul
atio
n.
Acce
pted
.
The
Com
mon
wea
lth c
onsi
ders
that
this
re
com
men
datio
n is
con
sist
ent w
ith th
e H
awke
Rev
iew
an
d th
e Pr
oduc
tivity
Com
mis
sion
Rev
iew
of R
egul
ator
y Bu
rden
on
the
Upst
ream
Pet
role
um (O
il an
d Ga
s) S
ecto
r (t
he P
C Re
view
), un
dert
aken
in 2
009.
The
Haw
ke R
evie
w n
oted
that
str
eam
linin
g sh
ould
m
axim
ise
regu
lato
ry e
ffici
ency
whi
le m
aint
aini
ng
stro
ng e
nviro
nmen
tal s
afeg
uard
s. Th
e PC
Rev
iew
not
ed
the
mer
it in
reta
inin
g an
inde
pend
ent d
ecis
ion
mak
er
of la
st re
sort
, par
ticul
arly
in re
latio
n to
mat
ters
of
pote
ntia
l nat
iona
l env
ironm
enta
l sig
nific
ance
.
In M
ay 2
011,
the
Com
mon
wea
lth re
leas
ed it
s re
spon
se
to th
e PC
Rev
iew
. The
Com
mon
wea
lth’s
resp
onse
not
es
a nu
mbe
r of i
nitia
tives
pro
gres
sed
to d
ate
aim
ed a
t st
ream
linin
g re
quire
men
ts b
etw
een
the
EPBC
Act
and
th
e OP
GG
S Ac
t. Th
is in
clud
es p
rogr
essi
ng s
trat
egic
as
sess
men
ts u
nder
the
EPBC
Act
and
mai
ntai
ning
bi
late
ral a
gree
men
ts w
ith s
tate
and
terr
itory
ju
risdi
ctio
ns.
Furt
her i
mpl
emen
tatio
n of
this
reco
mm
enda
tion
will
be
det
erm
ined
by
the
Com
mon
wea
lth’s
resp
onse
to th
e H
awke
Rev
iew
.
103
Chapter 7 of the Montara ReportReview of PTTEP AA’s Permit and Licence at Montara and Other Matters
Chapter 7 of the Report – Review of PTTEP AA’s Permit and Licence at Montara and Other Matters considers the oil field practices of PTTEP AA, as the operator of the Montara Wellhead Platform, and provides views in respect of its interaction with the regulators and the Montara Commission of Inquiry. The chapter contains 5 of 105 recommendations.
104
Chap
ter
7 –
Revi
ew O
f PT
TEP
AA’s
Perm
it a
nd L
icen
ce a
t M
onta
ra
and
Oth
er M
atte
rs
Reco
mm
enda
tions
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
101
The
Min
iste
r sho
uld,
as
the
JA fo
r the
off
shor
e ar
ea o
f Ac
cept
ed.
In S
epte
mbe
r 201
0, th
e Co
mm
onw
ealth
com
mis
sion
ed
the
Terr
itory
of A
shm
ore
and
Cart
ier I
slan
ds, u
nder
take
an
inde
pend
ent a
sses
smen
t thr
ough
two
sepa
rate
, a
revi
ew o
f PTT
EP A
A’s
perm
it an
d lic
ence
to o
pera
te a
t co
mpl
emen
tary
, con
sulta
ncie
s: a
n as
sess
men
t of
the
Mon
tara
Oilfi
eld.
th
e te
chni
cal a
dequ
acy
of th
e M
onta
ra A
ctio
n Pl
an
as a
gain
st in
dust
ry/le
adin
g pr
actic
e st
anda
rds;
and
10
2Fo
r the
pur
pose
s of
that
revi
ew, t
he M
inis
ter s
houl
d N
oted
.a
gove
rnan
ce re
view
of P
TTEP
AA’
s or
gani
satio
nal
issu
e a
‘show
cau
se’ n
otic
e to
PTT
EP A
A un
der s
276
of
stru
ctur
es, p
olic
ies
and
proc
edur
es to
ens
ure
the
The
Com
mis
sion
er n
oted
(pag
e 11
of h
is R
epor
t) th
at
the
OPGG
S Ac
t.ef
fect
ive
impl
emen
tatio
n of
the
Mon
tara
Act
ion
shor
tly p
rior t
o th
e fin
alis
atio
n of
his
Rep
ort,
PTTE
P AA
Pl
an a
nd c
ontin
uous
impr
ovem
ent b
y PT
TEP
AA in
pr
ovid
ed h
im w
ith th
e M
onta
ra A
ctio
n Pl
an w
hich
re
spec
t of o
pera
tiona
l and
cor
pora
te fu
nctio
ns. T
hese
w
as c
ompr
ehen
sive
and
impr
essi
ve, a
nd e
ffec
tivel
y co
nsul
tanc
ies
also
iden
tified
lead
ing
prac
tice
actio
ns
addr
esse
d th
e sh
ortc
omin
gs in
PTT
EP A
A’s
oper
atio
ns
that
will
be
shar
ed w
ith th
e of
fsho
re p
etro
leum
id
entifi
ed b
y th
e Co
mm
issi
oner
.in
dust
ry m
ore
gene
rally
. Th
e M
inis
ter h
as m
oved
to a
ddre
ss th
e Co
mm
issi
oner
’s Th
e In
depe
nden
t Rev
iew
con
clud
ed th
at th
e M
onta
ra
findi
ngs
thro
ugh
ongo
ing
inte
ract
ion
with
PTT
EP A
A Ac
tion
Plan
eff
ectiv
ely
resp
onds
to th
e is
sues
iden
tified
an
d by
dire
ctin
g th
at a
n in
depe
nden
t ass
essm
ent
by th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
and
set
s of
the
Mon
tara
Act
ion
Plan
be
unde
rtak
en. T
he
PTTE
P AA
on
the
path
to a
chie
ving
indu
stry
bes
t In
depe
nden
t Ass
essm
ent w
ill p
rovi
de a
dvic
e to
pr
actic
e st
anda
rds
for b
oth
good
oil
field
pra
ctic
e an
d th
e M
inis
ter o
n w
heth
er th
e Ac
tion
Plan
, onc
e go
od g
over
nanc
e.im
plem
ente
d, w
ill e
nsur
e th
at P
TTEP
AA’
s op
erat
iona
l an
d pr
oced
ural
mea
sure
s m
eet i
ndus
try
best
pra
ctic
e In
rele
asin
g th
e In
depe
nden
t Rev
iew
repo
rt o
n st
anda
rds.
It w
ill a
lso
iden
tify
whe
ther
PTT
EP A
A ha
s 4
Febr
uary
201
1, th
e M
inis
ter f
or R
esou
rces
and
Ene
rgy
the
orga
nisa
tiona
l cul
ture
and
cap
abili
ty to
pro
perly
an
noun
ced
that
he
wou
ld n
ot b
e is
suin
g a
‘show
im
plem
ent t
he A
ctio
n Pl
an. E
vide
nce
that
PTT
EP A
A’s
caus
e’ n
otic
e to
the
com
pany
that
cou
ld le
ad to
the
Mon
tara
Act
ion
Plan
is im
plem
entin
g in
dust
ry b
est
canc
ella
tion
of it
s pe
trol
eum
title
s.
105
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
prac
tice
and
its o
ngoi
ng c
omm
itmen
t to
oper
atio
nal
impr
ovem
ent w
ill b
e ce
ntra
l to
the
cons
ider
atio
n of
whe
ther
a ‘s
how
cau
se’ n
otic
e is
issu
ed, a
s it
dem
onst
rate
s m
easu
res
to re
mov
e or
pre
vent
re
curr
ence
of t
he g
roun
ds fo
r can
cella
tion.
The
Inde
pend
ent
Asse
ssm
ent
of t
he M
onta
ra A
ctio
n Pl
an d
oes
not
prev
ent
the
Min
iste
r fro
m t
akin
g fu
rthe
r act
ion.
This
dec
isio
n w
as c
ondi
tiona
l on
PTTE
P an
d PT
TEP
AA
ente
ring
into
a b
indi
ng D
eed
of A
gree
men
t with
th
e Co
mm
onw
ealth
in w
hich
it w
as a
gree
d th
at th
e M
onta
ra A
ctio
n Pl
an w
ill b
e im
plem
ente
d in
full
in
resp
ect o
f all
of P
TTEP
Aus
tral
ian’
s op
erat
ions
, and
that
th
is im
plem
enta
tion
will
be
subj
ect t
o an
18
mon
th
mon
itorin
g pr
ogra
m u
nder
take
n by
inde
pend
ent
expe
rts
appo
inte
d by
DRE
T.
The
Deed
of A
gree
men
t was
sig
ned
on 2
2 Fe
brua
ry
2011
. It f
orm
alis
es th
e im
plem
enta
tion
of th
e M
onta
ra
Actio
n Pl
an a
nd th
e ar
rang
emen
ts fo
r the
18
mon
th
mon
itorin
g pr
ogra
m, i
ncor
pora
ting
addi
tiona
l act
ions
id
entifi
ed b
y th
e In
depe
nden
t Rev
iew
of t
he M
onta
ra
Actio
n Pl
an.
On 1
6 M
arch
201
1, N
oetic
Sol
utio
ns P
ty L
td w
as
enga
ged
by D
RET
to m
onito
r the
impl
emen
tatio
n of
th
e PT
TEP
Mon
tara
Act
ion
Plan
.
Shou
ld th
e M
onta
ra A
ctio
n Pl
an n
ot b
e fu
lly c
ompl
eted
an
d pr
oper
ly im
plem
ente
d, o
r sho
uld
any
othe
r con
cern
s ar
ise th
at w
arra
nt it
, the
Min
ister
is a
ble
to is
sue
a ‘sh
ow c
ause
’ not
ice
to P
TTEP
AA
at a
ny ti
me.
PTTE
P w
ill a
lso
be s
ubje
ct to
an
addi
tiona
l set
of
cond
ition
s on
the
rene
wal
or f
utur
e gr
antin
g of
of
fsho
re p
etro
leum
title
app
licat
ions
in A
ustr
alia
. Th
ese
cond
ition
s w
ill e
nsur
e th
at g
ood
oil fi
eld
and
gove
rnan
ce p
ract
ices
are
app
lied
by th
e co
mpa
ny
acro
ss it
s Au
stra
lian
oper
atio
ns.
106
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
103
In c
arry
ing
out
a re
view
of P
TTEP
AA’
s pe
rmit
and
licen
ce, t
he M
inis
ter s
houl
d ha
ve re
gard
to
this
Re
port
, par
ticul
arly
(i) t
he a
dver
se fi
ndin
gs s
et o
ut in
th
is C
hapt
er; a
nd (i
i) th
e ex
tent
to
whi
ch P
TTEP
AA
has
impl
emen
ted
the
Actio
n Pl
an s
ubm
itted
to
the
Inqu
iry, o
r oth
erw
ise
addr
esse
d th
e m
atte
rs
canv
asse
d in
thi
s Re
port
.
Acce
pted
.
Refe
r to
Reco
mm
enda
tion
102
Refe
r rec
omm
enda
tion
102.
104
The
Min
iste
r con
side
r leg
isla
tive
amen
dmen
ts t
o th
e O
PGG
S Ac
t w
hich
mak
e cl
ear t
hat
(i) t
he M
inis
ter
can
dire
ct a
titl
ehol
der t
o ob
tain
an
inde
pend
ent
repo
rt in
to t
he c
ircum
stan
ces
and
likel
y ca
uses
of a
bl
owou
t; a
nd (i
i) th
e M
inis
ter c
an d
irect
tha
t su
ch
a re
port
be
prov
ided
to
him
(and
suc
h di
rect
ion
over
rides
any
lega
l pro
fess
iona
l priv
ilege
whi
ch
othe
rwis
e at
tach
es t
o th
e re
port
).
Not
ed.
107
Repo
rt R
ecom
men
datio
nsCo
mm
onw
ealth
Gov
ernm
ent R
espo
nse
Impl
emen
tatio
n
105
In v
iew
of t
he n
umer
ous
wel
l int
egrit
y pr
oble
ms
in
all o
f the
Mon
tara
Oilfi
eld
wel
ls, t
he M
inis
ter s
houl
d co
mm
issi
on a
det
aile
d au
dit o
f all
the
othe
r off
shor
e w
ells
ope
rate
d by
PTT
EP A
A to
det
erm
ine
whe
ther
they
to
o m
ay s
uffe
r fro
m w
ell i
nteg
rity
prob
lem
s.
Acce
pted
.
The
Com
mon
wea
lth a
gree
s th
at a
n au
dit o
f the
ot
her s
uspe
nded
wel
ls a
t the
Mon
tara
Wel
lhea
d Pl
atfo
rm w
as re
quire
d to
asc
erta
in th
e in
tegr
ity o
f the
su
spen
ded
wel
ls.
PTTE
P AA
has
ver
ified
the
inte
grity
of t
he re
mai
ning
w
ells
at t
he M
onta
ra W
ellh
ead
Plat
form
and
thes
e re
sults
hav
e be
en c
onfir
med
by
Geo
scie
nce
Aust
ralia
, pr
ovid
ing
the
Com
mon
wea
lth w
ith c
onfid
ence
in
the
inte
grity
of a
ll w
ells
at t
he M
onta
ra W
ellh
ead
Plat
form
.
In a
dditi
on to
wor
k un
dert
aken
with
the
NT
DoR,
on
31 M
ay 2
010
the
Com
mon
wea
lth re
ques
ted
all o
ther
De
sign
ated
Aut
horit
ies
to u
nder
take
a n
umbe
r of
revi
ews
to e
nsur
e th
e in
tegr
ity o
f wel
ls, i
n pa
rtic
ular
th
e st
atus
of a
ll co
mpl
eted
and
sus
pend
ed w
ells
sin
ce
2005
, and
thei
r ass
essm
ent,
appr
oval
s an
d m
onito
ring
of o
ffsh
ore
petr
oleu
m a
ctiv
ities
wer
e in
acc
ord
with
th
e OP
GG
S Ac
t.
All D
esig
nate
d Au
thor
ities
hav
e co
oper
ated
fully
and
pr
ovid
ed a
ssur
ance
s to
the
Com
mon
wea
lth th
at th
at
rigor
ous
regu
lato
ry p
ract
ice
are
bein
g im
plem
ente
d in
re
latio
n to
the
appr
oval
and
com
plia
nce
mon
itorin
g of
w
ell o
pera
tion
activ
ities
.
In a
dditi
on th
e Co
mm
onw
ealth
has
issu
ed a
Sta
tem
ent
of E
xpec
tatio
ns to
the
Desi
gnat
ed A
utho
ritie
s an
d N
OPSA
whi
ch s
ets
out t
he M
inis
ter f
or R
esou
rces
an
d En
ergy
’s ex
pect
atio
ns, a
s th
e re
spon
sibl
e Co
mm
onw
ealth
Min
iste
r, on
mat
ters
rela
ting
to th
e ex
erci
se o
f the
ir fu
nctio
ns a
nd p
ower
s un
der t
he
OPGG
S Ac
t and
ass
ocia
ted
regu
latio
ns a
nd p
rinci
ples
of
bes
t pra
ctic
e re
gula
tory
adm
inis
trat
ion.
108
109
Additional Recommendations for IndustryReview of PTTEP Australasia’s response to the Montara Blowout
The Department of Resources, Energy and Tourism commissioned an independent review of PTTEP Australasia’s Montara Action Plan to determine whether all necessary measures have been taken to prevent any future incident like Montara.
The Independent Review also identified a series of lessons arising from the Montara incident that are relevant to the oil and gas industry. The lessons address themes within the acquisition and integration of production assets; and governance and oversight. The following chapter contains the nine recommendations and the Commonwealth’s response.
110
Addi
tiona
l Rec
omm
enda
tions
for I
ndus
try
– Re
view
of P
TTEP
Au
stra
lasi
a’s R
espo
nse
to th
e M
onta
ra B
low
out (
Noe
tic R
epor
t)
Reco
mm
enda
tions
Noe
tic R
epor
t Rec
omm
enda
tions
Com
mon
wea
lth G
over
nmen
t Res
pons
eIm
plem
enta
tion
1DR
ET s
houl
d w
ork
with
indu
stry
and
the
Aust
ralia
n Pe
trol
eum
Pro
duct
ion
& E
xplo
ratio
n As
soci
atio
n (A
PPEA
) to
deve
lop
prog
ram
s to
ens
ure
grea
ter
unde
rsta
ndin
g of
Maj
or A
ccid
ent E
vent
s (M
AE) i
nclu
de
caus
es, p
reve
ntio
n an
d m
anag
emen
t.
Not
ed.
In a
dditi
on to
the
reco
mm
enda
tions
mad
e by
Noe
tic
Solu
tions
Pty
Ltd
in th
e “R
evie
w o
f PTT
EP A
ustr
alas
ia’s
Resp
onse
to th
e M
onta
ra B
low
out”
(Rev
iew
Rep
ort)
th
at w
ere
spec
ific
to P
TTEP
Aus
tral
asia
(Ash
mor
e Ca
rtie
r) Pt
y Lt
d, th
e Re
view
Rep
ort i
dent
ified
a s
erie
s of
less
ons
aris
ing
from
the
Mon
tara
inci
dent
that
may
ha
ve re
leva
nce
to th
e of
fsho
re p
etro
leum
indu
stry
.
As s
tate
d by
Noe
tic in
the
Revi
ew R
epor
t, th
ere
are
“few
, if a
ny, c
ompl
etel
y ne
w le
sson
s” fo
r ind
ustr
y ar
isin
g fr
om th
e M
onta
ra C
omm
issi
on o
f Inq
uiry
.
The
less
ons
iden
tified
by
Noe
tic re
flect
inte
rnat
iona
lly
reco
gnis
ed th
emes
sup
port
ing
good
gov
erna
nce
and
best
pra
ctic
es, a
nd a
re to
be
cont
inua
lly c
onsi
dere
d an
d im
plem
ente
d th
roug
h in
dust
ry e
duca
tion
and
deve
lopm
ent b
y th
e in
dust
ry, i
ts re
pres
enta
tive
bodi
es
and
gove
rnm
ents
.
As th
e pe
ak in
dust
ry b
ody
for A
ustr
alia
’s of
fsho
re
petr
oleu
m in
dust
ry, t
he A
ustr
alia
n Pe
trol
eum
Pr
oduc
tion
and
Expl
orat
ion
Asso
ciat
ion
(APP
EA) h
as
the
capa
city
to is
sue
“hig
h po
tent
ial i
ncid
ent a
lert
s” to
in
dust
ry s
take
hold
ers
as a
mec
hani
sm fo
r hig
hlig
htin
g le
arni
ngs
and
stra
tegi
es fo
r ind
ustr
y to
pre
vent
maj
or
2DR
ET s
houl
d w
ork
with
APP
EA a
nd o
ther
indu
stry
bo
dies
to e
nsur
e se
nior
exe
cutiv
es in
the
indu
stry
cl
early
und
erst
and
the
dist
inct
ion
betw
een
audi
ting
and
perf
orm
ance
mon
itorin
g.
3DR
ET sh
ould
wor
k w
ith th
e in
dust
ry to
iden
tify
mec
hani
sms t
o pu
blish
fact
ual r
epor
ts a
s soo
n as
pos
sible
af
ter a
n in
cide
nt to
ass
ist o
ther
s eng
aged
in si
mila
r ac
tiviti
es o
r usin
g sim
ilar e
quip
men
t to
avoi
d an
inci
dent
.
4DR
ET s
houl
d w
ork
with
indu
stry
and
APP
EA to
dev
elop
m
echa
nism
s to
sha
re in
form
atio
n on
hig
h po
tent
ial
inci
dent
s.
5DR
ET s
houl
d w
ork
with
indu
stry
and
APP
EA to
enh
ance
th
e tr
aini
ng a
vaila
ble
to p
erso
nnel
invo
lved
in w
ell
oper
atio
ns.
111
Noe
tic R
epor
t Rec
omm
enda
tions
Com
mon
wea
lth G
over
nmen
t Res
pons
eIm
plem
enta
tion
6DR
ET s
houl
d co
nsid
er w
orki
ng w
ith A
PEPA
to p
rom
ote
and
educ
ate
indu
stry
on
mat
ters
rela
ting
to g
ood
prac
tice
in u
nder
taki
ng d
ue d
ilige
nce
arou
nd s
afet
y, he
alth
and
env
ironm
ent.
inci
dent
s. As
the
natio
nal o
ffsh
ore
safe
ty re
gula
tor,
NOP
SA is
con
tinui
ng to
exa
min
e op
tions
to s
hare
in
form
atio
n an
d le
arni
ngs
on s
peci
fic s
afet
y in
cide
nts
with
the
indu
stry
.
In a
dditi
on, A
PPEA
has
est
ablis
hed
a “M
onta
ra
7DR
ET s
houl
d co
nsid
er w
orki
ng w
ith A
PPEA
to p
rom
ote
and
educ
ate
indu
stry
on
mat
ters
rela
ting
to g
ood
prac
tice
in d
ealin
g w
ith a
sset
inte
grat
ion
to e
nsur
e as
set i
nteg
rity
follo
win
g ac
quis
ition
.
Resp
onse
Tas
kfor
ce”.
This
Tas
kfor
ce h
as id
entifi
ed a
nu
mbe
r of k
ey ta
sks
in re
latio
n to
wel
l ope
ratio
ns
and
cont
ainm
ent;
a m
utua
l aid
agr
eem
ent;
oil s
pill
resp
onse
and
pre
pare
dnes
s st
rate
gies
and
indu
stry
be
st p
ract
ice.
APP
EA w
ill b
e as
ked
to e
nsur
e th
at th
e 8
DRET
sho
uld
wor
k w
ith A
PPEA
to im
prov
e th
e ab
ility
of
mid
to s
mal
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Implementation PlanReport of the Montara Commission of Inquiry and the Review of PTTEP Australasia’s Response to the Montara Blowout
The Implementation Plan identifies how the recommendations arising from the Report of the Montara Commission of Inquiry and the Review of PTTEP Australasia’s Response to the Montara Blowout have been; are being; or will be progressed.
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Implementation Plan
Implementation of the Government’s response to the Report of the Montara Commission of Inquiry will provide operational direction for industry and will establish a regulatory framework for approval and compliance monitoring by regulators. Implementation will require significant and sustained efforts over several years by governments, industry and regulators.
A significant number of recommendations are already being implemented by the Commonwealth, the Northern Territory Designated Authority and industry. It will be undertaken by different Government agencies, and will also involve the engagement of state/Northern Territory agencies.
In addition to the Report of the Montara Commission of Inquiry the Government has undertaken to implement the lessons for the offshore petroleum industry as identified through the independent review of PTTEP Australasia’s Montara Action Plan (the Review of PTTEP Australasia’s Response to the Montara Blowout). The Independent Review, undertaken by Noetic Solutions Pty Ltd, made nine recommendations covering the acquisition and integration of production assets, and governance and oversight (refer Appendix 2). The Minister for Resources and Energy, the Hon Martin Ferguson AM MP, tabled the Independent Review report in Parliament on 4 February 2011.
This Implementation Plan identifies how the recommendations arising from the Report of the Montara Commission of Inquiry and the Independent Review of PTTEP Australasia’s Montara Action Plan have been; are being; or will be progressed.
Implementation of the Government’s response includes a suite of initiatives that involve potential amendments to legislation and improvements to strengthen and clarify the administrative and operating practices of the regulator and the offshore petroleum industry. Recommendations are addressed against the following key themes:
1. Regulatory Regime
2. Regulator Operating Practices
3. Response Arrangements
4. Environmental Management
5. Review of PTTEP Australasia’s Response to the Montara Blowout; and
6. Additional Recommendations.
Key implementation activities, and timing, for these themes are addressed below.
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1. Regulatory Regime Recommendations: 2; 23-26; 28; 44; 48; 66; 68; 71-72; 79; 83; 88-89; 91-92; and 95-97.
The Government will:
• Review all Commonwealth legislation applicable to the marine and offshore petroleum environment to strengthen the marine and offshore petroleum legislative frameworks to ensure a comprehensive, consistent approach to the regulation of petroleum activities in Commonwealth waters.
• Develop and implement a model that ensures an appropriate cost sharing framework between shipping and marine industries relating to incident response and preparedness.
Timing: To be completed by the end of June 2012.
2. Regulator Operating Practices Recommendations: 5-9; 14; 16-18; 19; 22-35; 39-44; 48-51; 69; 81-83; and 89-90.
The Government will:
• Clarify and strengthen the robustness of the current regulatory regime through the actions of regulators for offshore petroleum activities, in discharging their regulatory obligations by:
• Strengthening the framework for engagement between regulators and the offshore petroleum industry in responding to a future offshore petroleum incident.
Timing: To be completed by June 2012
• Developing a National Legislative Compliance Framework that will clarify and strengthen the role of the regulator for offshore petroleum activities through the development of a consistent and best practice approach in discharging their regulatory responsibilities.
Timing: To be completed by December 2011
• Continuing with the establishment of a national offshore petroleum regulator for Commonwealth waters (beyond the three nautical miles from the territorial sea baseline) – the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA). NOPSEMA will assume responsibility for environmental approvals, including oil spill contingency plans under the Offshore Petroleum and Greenhouse Gas Storage Act 2006. NOPSEMA will also regulate safety, integrity and environment plans for minerals extraction and greenhouse gas storage activities in Commonwealth waters:
• The states/Northern Territory will have an ability to confer power, under their respective legislation, to NOPSEMA for the regulation of offshore petroleum activities in coastal waters.
• Continuing with the establishment of a separate titles administrator, the National Offshore Petroleum Titles Administrator (NOPTA) within the Department of Resources, Energy and Tourism. It will administer titles and data relating to offshore petroleum, minerals and greenhouse gas storage activities in Commonwealth waters.
• The states/Northern Territory will have an ability to confer power, under their respective legislation, to NOPTA to undertake titles administration for offshore petroleum titles in coastal waters.
Timing: To be competed by January 2012
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3. Response Arrangements Recommendations: 81; 84-86; and 94
The Government will:
• Establish an incident management and coordination framework that is specific to an offshore petroleum incident in Commonwealth waters and that provides a transparent communication strategy, including communication with the public.
Timing: To be completed by April 2012
• Clarify the roles and responsibilities in responding to an offshore petroleum incident under Australia’s National Plan to Combat Pollution of the Sea by Oil and Other Noxious and Hazardous Substance (the National Plan).
• Review Australia’s National Plan to ensure appropriate risk management and emergency response strategies are in place and that equipment is appropriately placed.
Timing: The Review of Australia’s National Plan is to be completed by the end of 2011.
4. Environmental Management Recommendations: 86-93 and 95-100
The Government will:
• Strengthen the environmental protection regime for Commonwealth waters, through the legislative regime and the review of the National Plan:
• This will also take into consideration other regulatory obligations, such as those required under the Environmental Protection and Biodiversity Conservation Act 1999.
• Clarify the cost of responding to an oil spill, or other damages to the offshore and broader environment will be totally met by the owner/operator responsible for the offshore petroleum activity through the ‘polluter pays’ principle.
Timing: To be completed by the end of June 2012
• Establish “off the shelf” scientific environmental monitoring programs that can be speedily implemented during a response to an offshore petroleum incident.
Timing: To be completed by the end 2012.
5. Review of PTTEP Australasia’s Response to the Montara BlowoutIn addition to the findings and recommendations made by Noetic Solutions Pty Ltd in the Review of PTTEP Australasia’s Response to the Montara Blowout (Review Report) that were specific to PTTEP Australasia (Ashmore-Cartier) Pty Ltd, the Review Report identified a series of lessons arising from the Montara incident that potentially have relevance to the offshore petroleum industry.
The lessons and corresponding recommendation address themes within the acquisition and integration of production assets; and governance and oversight. The Review Report specifically tasks the Department of Resources, Energy and Tourism (DRET) with taking forward the nine recommendations with industry participation through the Australian Petroleum Production and Exploration Association (APPEA).
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Timing: August 2011 and ongoing: The Department of Resources, Energy and Tourism will consider the elements of these recommendations specifically relating to matters around acquisition, integration and governance, as part of the high level International Offshore Petroleum Regulators and Operators Summit scheduled for 10-11 August 2011.
6. Additional RecommendationsThere are a number of recommendations that are specific to the offshore petroleum industry; that have been completed that the Government has agreed to “Note” or are “Not accepted”)
Offshore Petroleum Industry
Recommendations: 4; 11-13; 15; 21; 36-37; 45- 47; 52-63; and 65
It is appropriate that the offshore petroleum industry carefully consider adopting those recommendations, which are not already addressed of accepted industry practice, that relate to operating matters specific to the industry.
Completed Actions
Recommendations: 1; 67; 73-76; 101; 103; and 105
A number of Recommendations has been identified as having been addressed by the Government or are currently being implemented through the Government’s upstream petroleum regulatory reform agenda.
Noted Recommendations
Recommendations: 3; 10; 64; 70; 77-80; 102; and 104
These recommendations have been noted by the Government as not requiring further action or implementation as they relate to actions or information that are already required by the existing regulatory regime, or are considered to be primarily operational matters for industry.
Not Accepted Recommendations
Recommendations: 8; 20; and 38
The three recommendations not accepted are considered technically inappropriate, may potentially compromise safety, or are factually incorrect.
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Appendix 1 to the Final Commonwealth Government ResponseStakeholder Consultation
Provides a summary of stakeholder submissions on the Commonwealth’s draft response to the Report of the Montara Commission of Inquiry
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Appendix 1 to the Final Commonwealth Government Response
Stakeholder Consultation
Summary of stakeholder submissions on the Commonwealth’s draft response to the Report of the Montara Commission of Inquiry
Seventeen submissions, three of which were confidential and one which was considered as not relevant, were received from a range of stakeholders including governments, industry, environmental representatives and the community. The remaining thirteen non-confidential submissions that made substantive comments on the draft response are available at www.ret.gov.au/montarainquiryresponse.
The comments received from stakeholders have been considered carefully in the development of the Commonwealth’s final response to the Report of the Montara Commission of Inquiry.
Stakeholder Sector
1. Mr Wayne Needoba, Managing Director, Labrador Holdings WA Pty Ltd Community
2. ExxonMobil Australia Industry
3. WWF-Australia Environmental
4. Australian Marine Oil Spill Centre Pty Ltd (AMOSC) Industry
5. Plexus Ocean Systems (Malaysia) Sdn Bhd Industry
6. Australian Institute of Marine Science (AIMS) Government
7. Northern Territory Government Government
8. Australian Network of Environmental Defender’s Offices (ANEDO) Environmental
9. Australian Petroleum Production and Exploration Association Ltd (APPEA) Industry Body
10. Western Australian Department of Mines and Petroleum (WA DMP) Government
11. Environs Kimberley Environmental
12. Chevron Australia Industry
13. West Timor Care Foundation Environmental
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Chapter 3 The Circumstances and Likely Causes of the Blowout
The submissions presented by government indicated support for a minimum of two or more barriers being adopted and noted that the removal or installation of barriers was assessed on a case-by-case basis.
The Northern Territory Department of Resources (NT DoR) provided a whole of NT Government response outlining the actions undertaken by the Commonwealth and the NT (as already publicly noted) and reiterating its position that at “all material times there was no formal arrangement stipulating the manner in which the position of Director of Energy was to account to the Commonwealth in relation to the performance of the functions as the Commonwealth’s delegate”.
The Western Australian Department of Mines and Petroleum (WA DMP) made several comments relating to the National Offshore Petroleum Safety Authority (NOPSA)’s approval or compliance checking of the safety case, expressing some criticism that these matters were not considered by the Montara Commission of Inquiry. WA DMP did not support Recommendation 37 relating to contractor liability, and suggested that minimum standards in relation to drilling operations be identified and adhered to by all parties.
Submissions received from industry demonstrated broad support for the Commonwealth’s draft response and outlined detailed information regarding industry operating practices in a number of areas including clearly articulated “Management of Change” processes and procedures; well barrier design and operations management; and accepted industry procedures, practices and commitment to the application of best practice.
Industry however sought further clarification regarding the Commonwealth’s position on Well Operations Management Plans, well integrity hazards and ‘worst-case’ scenario planning, and recommended that the Commonwealth amend its draft response to not accept Recommendations 2,3,4,16,17,18,25,26,28,37,40 and 56. Industry noted that the licensee (not the rig operator or contractor) is responsible for the well design, including installation of barriers, and there are many practical examples where barriers are installed or removed offline. Submissions also indicated that the logistics team is not the appropriate party to assess the adequacy of well management (or well design) as suggested by the Commissioner in Recommendation 56. Industry also reiterated that any change brought forward in the definition of ‘good oil field practice’ should not diminish from the objective-based regulatory regime.
In its submission, the Australian Petroleum Production and Exploration Association (APPEA), as the peak industry body representing Australia’s offshore oil and gas industry, noted that through the APPEA Montara Response Taskforce, the industry has developed:
• A Self-Audit Tool for Management of Well Operations;
• A draft Memorandum of Understanding around Mutual Aid;
• An agreed position for Australian Industry on Cap and Containment; and
• Oil Spill Preparedness and Response Improvement Strategies.
APPEA also noted that the offshore petroleum industry acknowledges that it must be able to demonstrate its leadership and commitment to achieving the highest standards if it is to retain its social license to operate and achieve strong public confidence in its operations.
The environmental representatives while supporting the objective-based regulatory regime recommended that it be supported with minimum standards for well operations and barriers (set in legislation), including reiterating a minimum two barrier well control configuration, cementing
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standards, drilling standards, and well trained and qualified industry and government personnel to implement more robust auditing and compliance/integrity testing. Furthermore, WWF in its submission recommended that the Commonwealth should review and approve industry training programs and establish well control competency standards.
Community stakeholders provided an opinion on the causes of the spill, and suggested that industry could fund the modelling of geological complexities and their impact on barrier quality in regards to well control, matters which the Commonwealth considers are appropriate for the offshore petroleum industry to consider.
Chapter 4 The Regulatory Regime: Well Integrity and Safety
The submissions presented by government varied. The NT DoR indicated support for the establishment of a single national regulator. However, the WA DMP did not support Recommendations 73,74,75 and 76(c) and suggested that the establishment of a national offshore petroleum regulator contradicts the evidence presented by the Report. WA DMP did not support Recommendation 69, noting that initial verbal approval is sufficient for the regulator to be satisfied that the changes to the well bore will occur without incident, followed up with a written request as soon as reasonably practicable (usually within 6-8 hours). WA DMP notes that NOPSA should be the regulator for all well integrity matters, and does not support any amendment of the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (OPGGS Act) to enable Designated Authorities to be given direction by the Commonwealth Minister as to their regulatory performance.
Submissions received from industry indicated support for the objective-based regulatory regime, noting that this approach encourages continuous improvement by industry. Submissions provided information on agreed industry practice relating to situations where collaboration with the regulator was required. APPEA noted that the regulator should be accountable through a governance board, and that a change/management transition plan developed jointly by industry and government would assist in smoothing the transition to the new regulatory arrangements under the National Offshore Petroleum Safety and Environmental Management Authority. Industry recommended the draft response be amended to not accept Recommendation 67 to reflect that in some circumstances, the whole purpose of a well activity is to address a well integrity hazard.
The environmental representatives expressed support for the objective-based regulatory regime. However, Environs Kimberley recommended that a combination of both prescriptive and objective-based regulation be implemented, which is supported by a clear definition of ‘sensible oil field practice’ and consistent application of the term ‘good oil field practice’ to recognise that the regulatory framework is only as effective as the compliance regime. Environs Kimberley expressed support for the establishment of a national offshore petroleum regulator that is empowered to enforce a clearly defined regulatory framework and is adequately resourced to do so, and supported the Commonwealth’s commitment to consider improving the penalty regime for pollution of Commonwealth waters.
Chapter 5 Arresting the Blowout
In respect of the submissions received by government, the WA DMP made comments regarding Recommendations 78 and 83, suggesting that these recommendations should not be supported as the consideration of options for arresting the blowout should be the responsibility of the operator, and that NOPSA, “not the regulator”, should pre-assess available options for well control.
Submissions received from industry indicated support for the need for clarity in respect of incident response management and co-ordination when responding to an offshore petroleum incident. Industry
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also emphasised the importance of an integrated industry/government response team supported by sufficient resources for response personnel. Submissions noted that the offshore petroleum industry is committed to contributing to Tier 2 regional spill clean-up response capability and maintaining a Tier 3 oil spill clean-up equipment stockpile under the management of the industry-funded Australian Marine Oil Spill Centre (AMOSC). Industry recommended the Commonwealth’s draft response be amended to not accept Recommendations 78 and 82, which in the view of industry have recommended a change in the accountability and roles of regulators versus operators.
The environmental representatives noted the parallels between the Montara and Deepwater Horizon incidents and recommended that an appropriate penalty regime be established.
Chapter 6 Environmental Response
The submissions presented by government agreed to the Commissioner’s recommendation to make environment plans publicly available in full, provided issues around commercial confidentiality were addressed. The NT DoR promoted an environmental security bond or the establishment of a contingency fund as possible mechanisms to address costs associated with preparedness and responsible capabilities. Submissions noted that specific responsibilities for key roles in oil spill response should be documented in Australia’s National Plan to Combat Pollution of the Sea by Oil and Other Noxious and Hazardous Substances (National Plan), and take into consideration the mobile nature of oil slicks in that they often involve multiple jurisdictions.
The WA DMP in its submission noted that, as Western Australia has the highest level of offshore oil and gas activity in Australia, equipment stockpile locations in WA should form part of the 2011 Review of the National Plan being undertaken by the Australian Maritime Safety Authority to ensure that equipment and resources are strategically placed and are readily accessible where most needed. WA DMP did not support Recommendations 98 and 99 which in the view of WA DMP add regulatory burden and duplication to the approvals process.
Submissions received from industry indicated in principle support for the equitable cost-sharing proposal and support for a risk-based approach to determining the appropriate level of contribution. Submissions noted that the responsibility for meeting costs incurred in the clean-up of an offshore petroleum incident rests with the facility operator, and requested clarification of the legislative position around this and associated insurance and liability issues as well as the scope and application of the ‘polluter pays’ principle.
APPEA in its submission noted the work of the industry in establishing an Oil Spill Preparedness and Response Focus Team to advise the APPEA Board on industry’s response to the Montara and Macondo incidents. The Focus Team is also liaising with the International Oil and Gas Producers Forum on international developments in this area. Some of APPEA members are also working on the development of a Scientific Monitoring Program for the Prelude floating liquefied natural gas project.
The Australian Marine Oil Spill Centre (AMOSC) noted that the oil and gas industry supports a minimum requirement for response capacity and capability to be identified in contingency plans, and implemented and resourced by the industry in the event of an incident. AMOSC also noted that the oil industry has well established mutual aid arrangements with other oil spill response organisations around the world that have been operationalised so mutual aid can be provided at short notice, with pre-agreed arrangements to manage liabilities and costs. AMOSC also pointed to the training programs provided by industry to maintain personnel competency in oil spill response.
The environmental representatives requested that the Commonwealth in its final response acknowledge the current Marine Bioregional Planning process and support the establishment of a network of
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“highly” protected marine parks. Submissions also recommended that a comprehensive risk assessment of the offshore petroleum industry be undertaken to indicate any high conservation areas and values as a matter of priority, and suggested that requirements for sufficient baseline information be extended to include exploratory drilling activities near sensitive marine environments. Submissions also suggested that the distinction between operational and scientific monitoring be removed in the National Plan to give equal status to both types of monitoring.
WWF Australia throughout the submission expressed concern that some of the recommendations and the draft response appear to rely too heavily on industry-led programs where industry “… is handed the reins to write their own rules”.
The submission from the West Timor Care Foundation (WTCF) focused specifically on Recommendation 86 and included unverified new data concerning the impact on West Timor which it stated has been independently collected by the WTCF, but was not available in its original submission to the Montara Commission of Inquiry. The WTCF noted concerns that the implementation identified in the draft response does not address “marine casualties and pollution by oil and hazardous noxious substances” beyond Commonwealth waters, and noted several additional areas that were not addressed in the draft response, including evidence of oil and dispersants in Indonesian waters resulting from the Montara incident that occurred in Australian waters; the decision to use Corexit 9500 in addition to other dispersants and its impact on environment, health and economic livelihoods of people; and Australia’s obligations under the United Nations Convention on the Law of the Sea.
The Australian Institute of Marine Science (AIMS) made specific comments in relation to Recommendations 88-93, and suggested that further discussion between the linkages of the “off the shelf” monitoring plans and baseline data should be undertaken. AIMS recommended that baseline assessments and scientific monitoring be developed in tandem, and that the distinction between operational and scientific monitoring should be removed from the National Plan to give both types of monitoring equal status.
AMOSC made specific comments in relation to Recommendations 86-100. AMOSC supported the need for clear guidelines for the exercise of powers and responsibilities for managing and coordinating a response to an offshore petroleum incident, as well as incident preparedness and monitoring, and noted the need for clarity of the legislative position around clean-up costs, insurance and no-fault liability. AMOSC supported a minimum Tier 1 standard for equipment requirements at each operational facility that reflect the appropriate risk factors, and noted that the oil industry is committed to contributing to Tier 2 regional spill clean-up response capability and maintaining a Tier 3 oil spill clean-up equipment stockpile under AMOSC management. AMOSC expects that industry mutual aid agreements (including international agreements) will be activated in the event of an incident. AMOSC also emphasised the importance of appropriate competency-based training.
Community stakeholders noted that the draft response addresses the numerous issues raised in submissions made to the Montara Commission of Inquiry, and suggested that further discussion between the linkages of the “off the shelf” monitoring plans and baseline data needs to be undertaken so that both baseline assessments and scientific monitoring can be developed in tandem.
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Chapter 7 Review of PTTEP AA’s Permit and Licence at Montara and Other Matters
APPEA’s submission on behalf of industry noted that any attempt to diminish legal professional privilege in relation to reporting into the causes of well blowouts should be resisted as decision makers in the offshore petroleum industry need the benefit of professional legal assistance free from the apprehension of disclosure. Industry recommended a change in the draft response to not accept Recommendation 104 and resist any attempt to diminish legal professional privilege.
The Australian Network of Environmental Defender’s Offices (ANEDO) submission on behalf of environmental representatives raised concerns with the decision of the Minister for Resources and Energy not to issue a ‘show cause’ notice to PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEP AA), and suggested that the Minister should cancel the company’s Montara production licence or suspend the licence until the requisite remedial action has been taken. ANEDO also suggested cancelling all other production licences held by PTTEP AA to send a message to other oil field operators.
