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Macedon Gas Project Compliance Assessment Report

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Macedon Gas Project Compliance Assessment Report Macedon Gas Project Compliance Assessment Report 28 January 2016 Disclaimer BHP Billiton Disclaimer ©2015 BHP Billiton Petroleum Pty Ltd: This document and information contained in it is the sole property of BHP Billiton Petroleum Pty Ltd and may not be exploited, used, copied, duplicated or reproduced in any form or medium whatsoever without the prior permission of BHP Billiton Petroleum Pty Ltd. All information, data, specifications, drawings, reports, accounts or other documents and things made available by BHP Billiton Petroleum in any form or medium whatsoever, together with all copyright, confidential information, patent, design or other such rights in the same, are either owned by or licensed to BHP Billiton Petroleum Pty Ltd. The same may not be exploited, used, copied, duplicated or reproduced in any medium or form whatsoever except with the prior written approval of BHP Billiton Petroleum Pty Ltd. Cover Photograph on cover of report shows the Macedon Gas Plant 2 Contents Introduction 4 Project Status 6 Compliance with Ministerial Statement 844 7 Audit Table 10 Non-compliance and Corrective/Preventative Actions 17 Changes to the Compliance Assessment Plan 18 References 19 Appendix 1 20 3 BHP Billiton Introduction Introduction The Macedon gas project develops natural gas from the Macedon field in production lease WA-42-L for Western Australia’s domestic gas market. The project comprises a pipeline from subsea production wells to an onshore gas processing facility, located in the Ashburton North Strategic Industrial Area (ANSIA), approximately 17 kilometres southwest of Onslow. After the gas is processed, it is transferred via a sales gas pipeline to the Dampier to Bunbury Natural Gas Pipeline (DBNGP, Figure 1). Figure 1: Macedon Gas Project Location The Macedon Gas Plant Lease area for the gas processing facility and associated infrastructure, including the ground flares and evaporation pond areas are shown in Figure 2. 4 BHP Billiton Introduction Figure 2: Macedon Gas Plant Lease (red line) and Layout Purpose of the Compliance Assessment Report The purpose of this Compliance Assessment Report (CAR) is to assess compliance at the Macedon Gas Plant with the Environment Protection Authority (EPA) Statement 844 dated 28 October 2010 in accordance with the Compliance Assessment Plan, approved on 18 March 2011. The CAR 2015 covers activities undertaken during the period 1 January 2015 to 31 December 2015. Compliance Assessment Reporting Requirements This report meets the intent of the compliance reporting requirements as defined in the Macedon Gas Project Compliance Assessment Plan (PMA-BHP-EN-EIA-0002). Endorsement of CAR This Compliance Assessment Report has been endorsed by Geraldine Slattery, General Manager Australia, BHP Billiton Petroleum. 5 BHP Billiton Project Status Project Status Current Status of Project The project is currently in the operational phase. Project Activities covered by CAR This CAR covers the following project activities undertaken in the period 1 January 2015 to 31 December 2015: 1) Operations, 1 January 2015 to 31 December 2015 6 BHP Billiton Compliance with Ministerial Statement 844 Compliance with Ministerial Statement 844 Compliance with Conditions Operation of the Macedon Gas Project is compliant with Ministerial Statement No. 844 as reported in Table 1. Rehabilitation Monitoring In March 2012, BHP Billiton Petroleum commenced rehabilitation of 285 hectares of an area approved for clearing for gas pipelines. Monitoring of the rehabilitation was required to demonstrate that, within three years of commencement of rehabilitation, the reinstated vegetation had at least 60 per cent of pre-clearing species diversity and weed coverage of no more than the pre-clearing levels (Condition 8 of Ministerial Statement 844). The Macedon Gas Project rehabilitation of the onshore pipeline was completed in September 2015 and the rehabilitation monitoring report submitted to the Office of the Environmental Protection Authority (OEPA). A copy of the Macedon Rehabilitation Monitoring Report is attached at Appendix 1. In summary, the 2015 rehabilitation monitoring event found: 1) Overall species richness was more than 30 per cent higher in rehabilitated transects than in analogue transects; 2) Species diversity in rehabilitated transects exceeded 60 per cent of that found in paired analogues in 21 out of 23 pairs of transects. Forty per cent of transect pairs shared at least 60 per cent of species; 3) Weed cover in rehabilitated transects did not differ significantly between the 2010 and 2015 monitoring events, i.e. weed coverage was not significantly different to that of pre-cleared levels. Weed cover was not significantly different between rehabilitation and analogue transects; 4) When point in time comparisons were made, contrasts between weed cover in analogue and rehabilitation transects were not significant in 2015 or in any previous year; and 5) Distribution of weed species decreased between 2014 and 2015. Overall, weed cover in rehabilitated transects in 2015 was low (less than 3 per cent on average) and dominated by buffel grass. This weed is a valued pasture species and not a declared pest under the Biosecurity and Agriculture Management Act 2007 nor a Weed of National Significance. It is considered of “low concern” by Parks and Wildlife (Department of Parks and Wildlife 2013). The results of September/October 2015 monitoring indicated that the two completion criteria in Condition 8-1 of Ministerial Statement 844 were satisfied: the overall species diversity of reinstated vegetation in rehabilitated areas was greater than 60 per cent of that in analogue areas. Weed cover did not differ significantly to that of pre- clearing levels (2010). 7 BHP Billiton Compliance with Ministerial Statement 844 Greenhouse Gas Greenhouse Gas (GHG) Emissions and Intensity Macedon Gas Project GHG emissions for the period 1 January 2015 to 31 December 2015 are illustrated in Figure 3 and detailed in Table 1. Annual GHG emissions for the period 1 January 2015 to 31 December 2015 were 73,062 tonne equivalent of carbon dioxide (t CO2-e); carbon emissions intensity for the period was 6.9 t CO2-e per 1,000 barrels of oil equivalent production. Recorded emissions are lower than emissions predicted for 2015 in the Final Environmental Performance Standard EPS (85,000 t CO2-e); variance between predicted and actual emissions is due to higher production rates used to estimate carbon emissions in the EPS when compared to current operations. 6,000 e) 5,000 - 4,000 3,000 2,000 GHG Emissions (t CO2 Emissions GHG 1,000 - Gas Compression Gas Power Generation Flaring (fugitive) Non-flared fugitive Other Figure 3: Macedon Gas Project GHG Emissions (1 January 2015 - 31 December 2015) 8 BHP Billiton Compliance with Ministerial Statement 844 Table 1: Macedon Gas Project GHG Emissions (1 January 2015 - 31 December 2015) Greenhouse Gas Emissions (t CO2-e) Emission Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Source Gas 5,180 4,484 5,148 4,800 5,285 5,178 5,180 4,138 4,800 5,462 5,252 5,387 60,294 Compression Gas Power 684 756 541 819 660 646 595 1,688 644 321 370 671 8,397 Generation Flaring 104 95 105 102 106 103 107 106 104 106 104 109 1,251 (fugitive) Non-flared 229 222 234 231 255 258 251 255 246 234 248 244 2,908 fugitive Other 21 18 20 24 23 16 14 13 19 15 14 13 212 Total 6,219 5,575 6,048 5,976 6,330 6,202 6,147 6,200 5,812 6,137 5,988 6,426 73,062 GHG Reduction Measures Investigated Details of improvements in equipment, technology or procedures were investigated prior to development of the Macedon Project in 2010 through an energy optimisation study. The aim of the study was to identify cost effective projects, which would reduce energy and greenhouse gas emission across all operations of the Macedon Gas Project and incorporate these into the design of the Macedon Gas Project. BHP Billiton Petroleum continues to identify and evaluate GHG reduction opportunities through internal processes designed to implement greenhouse gas abatement opportunities. GHG Reduction Measures Implemented Several improvements in equipment, technology and procedures identified in the Macedon Gas Project energy optimization study were implemented in design including: • Low resistance internal pipeline coating; • Waste heat recovery; and • Equipment selection designed to minimise facility pressure drop. 9 BHP Billiton Audit Table Audit Table Table 2: Audit Table Audit Subject Action How Evidence Satisfy Advice Phase When Status Further Information Code (from Ministerial Statement 844) 844:M1.1 Implementation The proponent shall implement the proposal as Project implemented in Compliance Min for Overall C 2015 CAR (this documented and described in schedule 1 of this accordance with these criteria Assessment Report Env document) statement subject to the conditions and procedures (CAR) of this statement. 844:M2.1 Proponent The proponent for the time being nominated by the Min for Overall C Proponent remains BHP Nomination and Minister under sections 38(6) or 38(7) of the Act is Env Billiton Petroleum Pty Contact Details responsible for the implementation of the proposal. Ltd 844:M2.2 Proponent The proponent shall notify the CEO of any change Letter notifying CEO of any Letter notifying CEO of CEO Overall Within 30 days of C Updated January 2013 Nomination and of the name and address of the proponent for the change in proponent details any change in such change (letter dated 14.1.13) Contact Details serving of notices or other correspondence within proponent details No change since last 30 days of such change. notification 844:M3.1 Time Limit of The authorisation to implement the proposal Implement project Min for Overall Commence CLD Implementation Authorisation provided for in this statement shall lapse and be Env implementation by commenced in 2011 void five years after the date of this statement if the 27 October 2015 OEPA Desktop Audit proposal to which this statement relates is not report 31.08.2012 substantially commenced.
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