On 8 August 2011, the Australian Financial Review (not available online) reported on a letter from the head of the National Offshore Petroleum Safety Agency (NOPSA), John Clegg, that criticised the Western Australian government’s regulatory regime for offshore petroleum exploration. The crux of the letter was that WA does not require energy companies to develop a “safety case” for their offshore operations.
The letter referred specifically to the Varanus Island pipeline explosion under the control of Apache Corporation. The AFR paraphrased the letter:
“…Clegg said….that given WA legislation at the time of the Varanus Explosion it was “doubtful” that Apache Corporation, the US operator of Varanus, had any obligation to adhere to a “safety case”, the crucial tool for management of oil and gas field safety.”
The “safety case” requirement for complex processing industries originated after the inquiry into the Piper Alpha disaster of 1988 and has become a default safety management process in many jurisdictions around the world. (UK’s Health & Safety Executive has some excellent background resources on this)
The political arguments between State and Federal jurisdictions will be a major impediment to safety reforms in this industry sector – a tension to which few in the Eastern Australian States may give adequate attention. The tension echoes the continuing conflict over OHS harmonisation laws. Continue reading “Politics slows the safety regulation process in Australian oilfields”