Corrosion at Varanus Island

In mid-July 2008, the West Australian Liberal Party detailed leaked correspondence concerning the maintenance program at the Apache Energy facility at Varanus Island.  In the letter from July 2007, the director of petroleum and major hazard facilities, Richard Craddock, said

“The Five-Year Integrity Review report does not objectively demonstrate that the … pipeline complies with the conditions of … licence PL17, the variations under PL17 and the primary technical standard AS2885.”

The letter identified several areas of attention – pipeline integrity, corrosion and safety management.

A spokesman for Energy Minister Fran Logan said the issues raised were about a mainland pipeline however he also said that the Department of Industrial Relations “did raise the issues that were raised with Apache.”

Economic forecasts by the Chamber of Commerce and Industry WA said the pipeline explosion on Varanus Island had lead to a $6.7 billion reduction in business production and a $2.4 billion negative impact on the general WA economy.   

Other reports are emerging over interdepartmental disputes in the area of enforcement of pipelines.

Other reports on the Varanus Island explosion are available in this blog by search “Varanus” in the search field on this page.

Beaconsfield Mine Inquest

An article in today’s Australian newspaper reports on the coroner’s inquest into the death of Larry Knight in the Beaconsfield mine in 2006. It provides the first insight into the OHS report for the Melick investigation.

In October 2005, six months before Larry Knight’s death, the mine was closed after a minor rockfall. It is reported that mine management only allowed workers back into the mine after geotechnical advice.

Professor Michael Quinlan of the University of New South Wales wrote that, from an OHS perspective, this was a poor decision. Whether financial pressures were behind the permission to reenter the mine is under dispute.

Counsel for the mining company, Stephen Russell has

urged the court to exclude Professor Quinlan’s evidence because the University of NSW professor was not expert in geotechnical issues.

Valid point, perhaps, except that the coroners need to investigate deaths from a broad pool of opinion and expertise. I suspect that Michael Quinlan would be the first to admit he is not an expert on geotechnical matters.

It seems from the media report that the counsel for the mine believes that, even though an assessment would involve worker activity in a workplace, occupational health and safety considerations were not necessary at the time.

In an earlier report in the Mercury newspaper, counsel assisting the Coroner, Michael O’Farrell

argued against an earlier move by the mine’s lawyers to confine the inquest to seismic event on the day of the rockfall.
Mr O’Farrell told Launceston’s Supreme Court that attempts to contain the inquiry to a close examination of the geotechnical issues surrounding the collapse did not serve justice, and may lead to error.
He urged Coroner Rod Chandler to consider all types of evidence, “even red herrings”, in order to make the recommendations necessary to prevent similar mine deaths.
The inquest should also focus the mine’s safety processes and risk assessment procedures, as well the capacity of the state government’s workplace standards body, Mr O’Farrell said.

I have stressed elsewhere that I have no problem with companies deciding to do nothing after a risk assessment is undertaken. It is the right of the employer to accept or reject OHS advice. But what I object to is if a company then tries to avoid responsibility for that decision if it turns out to be a poor one.

The mine’s senior counsel, David Neal SC, then asked the Coroner, Rod Chandler, to review the cost-benefit of a detailed investigation into Larry King’s death as the proceedings are costing each party $20,000 per day.

David Neal, also requested 28 witnesses identified by the opposing counsel be excluded. I don’t think that relatives of dead workers would see these costs as an impediment to determining the cause of a loved one’s death. I find it extraordinary that such a suggestion would be made at all.

Issues leading up to Varanus Island pipeline explosion

Adjunct Professor Geoff Taylor recently emailed me with his concerns about the pipeline explosion on Varanus Island.

Media reports in Western Australia over the last few weeks raised serious questions about the gas crisis. Some may say that it is easy to be wise after the event, but the government had ample opportunity to be wise before the event, and develop a plan to keep a close watch on the engineering integrity of energy suppliers’ plant and an emergency plan for the state and nation. There presumably would be a safety case on file for Varanus, for example, and safety cases include contingency plans.

Prof. Andrew Hopkins wrote a book Lessons from Longford that reported on the contributing factors to the Longford gas explosion ten years ago, which left Melbourne without gas.

Here more recently we have had vibrations in the Dampier-Perth pipe, the Woodside electrical substation problem in January which cut gas supply, the National Offshore Petroleum Safety Authority (NOPSA) concerns reportedly expressed to Apache in April,  and the prohibition notice NOPSA issued to the Four Vanguard FPSO off Barrow Island reported in May.

In fact it has reportedly emerged that the WA government has a critical infrastructure protection committee advising the Premier. The police had also apparently looked at Apache, from the point of view of a terror attack primarily, in 1993 and 2001, and provided advice to the company.

It is vital that the state government’s energy ministry takes a keener and more sustained interest in these matters in the future, as they clearly can affect not just WA firms and residents, but the state and national economies, and Australia’s overseas customers.

Clearly better coordination between NOPSA, WA Resources Safety (both of which find it hard to keep staff), the energy ministry and the Premier’s committee is vital. The state’s energy system cannot be run continuously at near full capacity, because there will be outages and shutdowns for maintenance.

The advent of peak oil has highlighted the critical nature of hydrocarbon supply to our way of life, and that and the need to address the greenhouse effect also require a clear national and state energy and urban design strategy, for a state and nation so far designed around cheap fuel.

Geoff is the co-author of some excellent OHS books, particularly Enhancing Safety.

Sugar vat explosion update

Further details have begun to emerge from the vat explosion at the Pioneer Sugar Mill at Burdekin in Queensland on 20 June 2008.  According to media reports, the plant, owned by CSR, was one of four sugar mills that suffered equipment failures on almost a daily basis, according to Burdekin Limited district manager Jim Collins.

Three workers were treated for minor injuries and the 80 staff at the mill  at the time were evacuated.

Sugar Vat Explosion

According to Australian news reports, several explosions have occurred at the Pioneer sugar mill in Queensland.  Two people have been seriously injured and 14 are currently trapped

According to firefighters there was a low pressure explosion in a 1,000 litre sugar vat at 9am on 20 June 2008. 

“After the vat exploded it fell over and pushed over another 1,000 litre sugar vat. The ‘mud’ that spilt from the vats ran into an adjoining lab facility and nine staff members were evacuated.”

Business Continuity from Pipeline “near miss”

Australia’s Resources Minister, Martin Ferguson has emphasised that the National Offshore Petroleum Safety Authority (NOPSA) is a competent investigative organisation and that people should not speculate on the cause of the Varanus Island pipeline explosion before the report is completed.

At a joint press conference with the Minister on 14 June 2008, West Australian Premier, Alan Carpenter said it was too early to gauge the impact of the gas supply disruption. (Politically too early but the finance papers are full of the impact on Australian business.  Look at the disastrous share performance of Babcock & Brown Power for evidence.) Carpenter then estimated a cost to the economy of “hundreds of millions of dollars a day”.

NOPSA’s report should be fascinating reading on the operation of an isolated gas pipeline but more fascinating would be a book about how the West Australian energy infrastructure was allowed to become so fragile.  The book should also document the positives about the business continuity programs of the major WA industries.

The next impact will likely come from the insurance companies.

Pipeline explosion may lead to invocation of emergency powers

This post is receiving a lot of attention from around the world so, although, at the moment, the workplace safety issues have diminished, it is interesting to note that The Australian newspaper for 12 June 2008 reports that the Premier, Alan Carpenter, has acknowledged that he may need to invoke emergency powers to seize control of electricity and gas supplies.

This is an extraordinary development that indicates the infrastructure fragility of Western Australia.

The supply disruption is now also receiving federal government attention as it begins to affect Australia’s ability to supply China’s insatiable appetite for Australian minerals and energy.

Alcoa Australia is the latest company to announce a “force majeure” as a result of the Apache Energy pipeline explosion.

It is phenomenal to see how an event that in OHS terms is a “near miss” has the potential to weaken a country’s economic growth.

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