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Longford explosion anniversary, Andrew Hopkins and a new book

October 2008 was the tenth anniversary of the explosion at Longford gas plant in Australia that resulted in many injuries, two fatalities and almost two weeks of severely interrupted gas supply to the State of Victoria.

The Longford explosion at an Exxon-Mobil site resulted in a Royal Commission, an OHS prosecution and a record fine. Recently it was often invoked in comparison to the Varanus Island pipeline explosion in Western Australia.

Professor Andrew Hopkins, sociologist with the Australian National University, was studying safety management systems well before the Esso Longford explosion but it was that major disaster that added international prominence, and a substantial extra workload, to Andrew. Other than domestic acclaim, in July 2008, the European Process Safety Centre declared Andrew winner of the EPSC Award for 2008. He is the first person outside of Europe to win this award. It is believed that Andrew was formally presented with the award at the EPSC conference earlier this month.

Andrew has a refreshing perspective on safety management systems, partly because he has brought a sociologist’s eye to management decisions; his vision is not clouded by the OHS baggage through which many other analysts struggle.

Andrew’s next book due out this month through CCH Australia is Failure to Learn The BP Texas City refinery disaster and could have him travelling frequently the United States to offer his wisdom.

SafetyAtWorkBlog is working on a new interview with Andrew when he returns to Australia but in the meantime, a 2000 interview with Andrew is available as a page on this blog. The interview was conducted at a book launch in September 2000 for Lessons From Longford.

Professor Andrew Hopkins (right) receiving the award from Christian Jochum, Director of the European Process Safety Centre

Varanus Island Report released

On 10 October 2008, the Western Australian Mines and Petroleum Minister, Norman Moore, released the final report into the Varanus Island pipeline explosion. Sadly due to legislative restrictions the report is not being made available in an electronic edition accessible through the internet. However, hard copies can be requested from the government.

Recent media statements indicate that “the immediate physical cause of the gas explosion at the island’s gas production facility operated by Apache Energy Ltd was the rupture of the 12-inch gas sales pipeline.”

Some media reports mention the dreaded n-word – negligence. Apache Energy has stated that investigations into the

Varanus Island explosion were premature and based on an incomplete investigation

Contrary to most incident investigation techniques known to SafetyAtWorkBlog, Apache Energy says that it will continue to investigate in order to determine the “root cause”.

Since the incident, there has been a change to a conservative State government so the statements contain a political edge. The current Minister says that the terms of reference were too narrow and did not allow for investigation into “regulatory oversight” however deficiencies in this area were illustrated through media reports in the weeks following the incident.

The Minister has not ruled out ordering a “a full and independent investigation into this issue… at a later date” but I suspect only if there were political benefits rather than safety benefits. There are a considerable number of voices supporting a broader inquiry from unions and industry groups

The report is said to identify the following three contributing factors:

ineffective anti-corrosion coating at the beach crossing section of a 12-inch sales gas pipeline, due to damage and/or dis-bondment from the pipeline;

ineffective cathodic protection of the wet-dry transition zone of the beach crossing section of a 12-inch sales gas pipeline on Varanus Island; and

ineffective inspection and monitoring by Apache Energy of the beach crossing and shallow water section of the pipeline.

Mr Moore stated that

“Under the safety case regime, the operator is required to identify hazards and assess risks to health and safety and to implement control measures to reduce those risks. The ongoing inspection, monitoring and maintenance of control measures are associated with those risks and the management regime. The report has indicated that Apache and its co-licensees may have committed offences under two pipeline Acts.”

A Senate inquiry is looking into the economic impact of the Western Australian gas crisis and the State Government’s response to the incident.

Gasflow resumes from Varanus Island

Apache Energy has advised that gas flow has been reinstated on 6 August 2008 following the June 3 pipeline explosion on Varanus Island. This has been achieved earlier than forecast.

Apache Energy’s MD, Tim Wall, said he was

“…pleased to welcome the Premier of Western Australian, Hon Alan Carpenter MLA and the Minister for Energy, Hon Fran Logan MLA to site today to witness first-hand the restoration and repairs to the Varanus Island facility.”

According to a media statement, the partial resumption of supply is expected to be ramped up a further 120 TJ/day to 240 TJ/day by mid-August and pre-incident rates of production by the end of the year.

Alan Carpenter told reporters

“This is a significant relief for gas users as well as the economy of Western Australia…The worst of the situation is clearly over; we still have a long way to go.”

Mr Carpenter could also have been talking about his political future as only a day later he called a snap election for September 6. The resumption of gas flow must have been one of the factors encouraging this call, which has been described as “panicked” by many commentators, although far less influential in his decision-making than the resignation of the short-term opposition leader, the world-famous chair-sniffer Troy Buswell.

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.

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.

Varanus Island and Worker Safety

The safety of workers at the Varanus Island pipeline has been questioned through emailed photos of the explosion site and the accompanying email. The images have not been confirmed by Apache Energy.

The email, reported by The Age and perthnow, says the “big bang” had occurred because the pipe had corroded “to the thickness of a match stick”.

It was also reported to include the following comments from a worker

“We ran for our lives, really really really scary. Does not feel good to be back here so soon (5 days later) The place is quiet, no noise, nothing. Just us hitting spanners ect (sic). Not sure if I really wanna be here when it’s up and running, which will be months away, a lot of damage.”

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.

Category: pipeline

Longford explosion anniversary, Andrew Hopkins and a new book

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Varanus Island Report released

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Gasflow resumes from Varanus Island

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Corrosion at Varanus Island

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Issues leading up to Varanus Island pipeline explosion

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Varanus Island and Worker Safety

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Business Continuity from Pipeline “near miss”

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