© BP p.l.c. Security Classification: BP Internal New Ventures Great Australian Bight Exploration Drilling Program Stromlo-1 and Whinham-1 ENVIRONMENT PLAN OVERVIEW (EPPs 37, 39) Rev 14 September 2016 0 Uncontrolled when printed or stored locally GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Table of Contents 1 Introduction ................................................................................................................. 1 1.1 Proponent ......................................................................................................... 1 1.2 Legislative Framework ...................................................................................... 2 2 Activity Description ..................................................................................................... 3 2.1 Activity Overview .............................................................................................. 3 2.2 Activity Location ................................................................................................ 3 2.3 Operational Details ............................................................................................ 5 2.3.1 2.3.2 2.3.3 2.4 Mobile Offshore Drilling Unit ................................................................................ 5 Support Vessels ................................................................................................... 5 Aviation Operations .............................................................................................. 5 Drilling Program ................................................................................................ 5 2.4.1 2.4.2 2.4.3 2.4.4 2.4.5 2.4.6 Timing and Schedule ............................................................................................ 5 Well Design and Drilling Methodology ................................................................. 6 Drilling Fluids........................................................................................................ 6 Drilling cuttings and fluid discharge ...................................................................... 6 Well evaluation..................................................................................................... 7 Plug and abandonment of well ............................................................................. 7 3 Stakeholder Consultation ............................................................................................ 8 3.1 Identifying relevant persons, and their functions interests and activities .......... 8 3.2 Providing ‘sufficient information’ to make an informed assessment. ............. 12 3.3 Providing a ‘reasonable period’ for consultation.............................................. 13 3.4 Consultation Outcomes .................................................................................. 13 3.5 Ongoing Consultation ..................................................................................... 28 4 Description of the Existing Environment ................................................................... 29 4.1 Research ........................................................... 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Bookmark not defined. 4.2 Physical Environment ...................................................................................... 29 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.3 Ecological Receptors ....................................................................................... 31 4.3.1 4.3.2 4.4 Climate............................................................................................................... 29 Bathymetry ........................................................................................................ 29 Oceanography .................................................................................................... 29 Ambient Ocean Sound ....................................................................................... 30 Hydrocarbons ..................................................................................................... 31 Shoreline ............................................................................................................ 31 Marine and Coastal Waters ................................................................................ 32 Social Values ................................................................................................... 40 4.4.1 4.4.2 4.4.3 4.4.4 Marine Bioregions .............................................................................................. 40 Offshore Protected Areas .................................................................................. 41 Onshore Protected Areas ................................................................................... 43 Coastal Settlements ........................................................................................... 43 Page i of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 4.4.5 4.4.6 4.4.7 4.4.8 4.4.9 4.4.10 4.4.11 Commercial Fishing and Aquaculture ................................................................. 44 Recreational Fishing ........................................................................................... 44 Commercial Shipping ......................................................................................... 45 Tourism and Recreation ..................................................................................... 45 Cultural Heritage ................................................................................................ 45 Petroleum Exploration and Production ............................................................... 46 Defence Activities .............................................................................................. 46 5 Environmental Impact and Risk Assessment ............................................................ 46 6 Environmental Impact and Risk Evaluation – Accidental Release.............................. 52 6.1 Risk Management within BP........................................................................... 52 6.2 Lessons from Deepwater Horizon .................................................................. 52 6.2.1 6.2.2 Incorporating Lessons Learned .......................................................................... 58 Progress on Recommendations of the Bly Report.............................................. 59 7 Environmental Impact and Risk Evaluation – Oil Spill Response Activities ............... 66 8 Summary of Response Arrangements in the Oil Pollution Emergency Plan ............. 69 8.1 Support Arrangements .................................................................................... 69 8.2 Response Strategy Overview ......................................................................... 70 8.2.1 8.2.2 8.2.3 8.2.4 9 Implementation Strategy ........................................................................................... 72 9.1 The BP Operating Management System ........................................................ 72 9.2 Contractor Management System .................................................................... 73 9.3 Roles and Responsibilities .............................................................................. 73 9.4 Training and Competencies............................................................................. 73 9.5 Incident Recording and Reporting ................................................................... 74 9.6 Environmental Monitoring and Record Keeping .............................................. 74 9.7 Auditing and Review ....................................................................................... 75 9.7.1 9.7.2 9.7.3 9.7.4 9.7.5 9.7.6 10 At-Sea Response Strategy ................................................................................. 70 Near-shore Response Strategy........................................................................... 71 Shoreline Response Strategy ............................................................................. 72 Oiled Wildlife Response Strategy ....................................................................... 72 Audit and Verification ......................................................................................... 75 Rig verification ................................................................................................... 75 Support vessel audits ......................................................................................... 75 EP Compliance Audits ........................................................................................ 76 OPEP and OSMP readiness review .................................................................... 76 EP and OPEP Review......................................................................................... 76 References ................................................................................................................ 77 Page ii of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 1 Introduction In 2011, BP Developments Australia Pty Ltd (BP) was awarded four exploration permits in the Great Australian Bight (GAB) adjacent to South Australia (SA): EPP37, EPP38, EPP39 and EPP40. BP (as operator) proposes to drill two exploration wells as part of an initial drilling program: Stromlo-1 and Whinham-1. Stromlo-1 is located approximately 600km west of Port Lincoln and 400km southwest of Ceduna, in a water depth of approximately 2250m. Whinham-1 is located approximately 600km west of Port Lincoln and 350km southwest of Ceduna, in a water depth of approximately 1150m. The wells will be drilled using a semi-submersible mobile offshore drilling unit (MODU). The drilling program is scheduled to commence in Q4 2016 to Q1 2017. It is anticipated that each well will take approximately 75 days to drill. In the event of any technical or equipment delays the duration may be greater, so the assessment for each of the wells has allowed for up to 150 days per well. This activity is a subset of the broader activity covered by the proposed Great Australian Bight Exploration Drilling Environment Plan (“GAB EP”), for which BP has an Opportunity to Modify and Resubmit by 31 December 2016. The first two wells, covered by this EP, will be excised from the scope of the GAB EP before it is resubmitted. Consultation about the GAB Exploration Drilling Program has been ongoing since December 2014, and related information is available at www.bpgabproject.com.au. 1.1 Proponent BP and Statoil are the registered titleholders of EPPs 37, 38, 39 and 40, with BP being the Operator. BP is wholly owned by BP Australia Group Pty Ltd and is ultimately owned by BP p.l.c (a company registered in England and Wales). BP is an international oil and gas companies, operating in over 75 countries. In Australia, BP is a foundation investor and one of six equal joint venture partners in the North West Shelf Venture (NWSV) and also has interests in the Browse basin. Statoil is an international energy company headquartered in Norway, with operations in 37 countries. In Australia, other than its interests in the GAB, Statoil has acquired the WA-506P exploration permit off the Western Australian (WA) coast. The BP operating office is located in Perth at: Level 8, 250 St Georges Terrace Perth, Western Australia, 6000. Page 1 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 1.2 Legislative Framework The proposed activity is located in Commonwealth waters off the SA coast. Petroleum activities undertaken in this area are regulated entirely by Commonwealth legislation and primarily under the Offshore Petroleum and Greenhouse Gas Storage (OPGGS) Act 2006 and associated regulations. The OPGGS (Environment) Regulations 2009 specify the requirements to manage the environmental impacts of petroleum activities. Key to these Regulations is the submission of an EP to the regulatory authority (NOPSEMA) for acceptance prior to commencing the proposed activities. In addition to the EP, several other plans will be submitted to NOPSEMA prior to drilling, including an Oil Pollution Emergency Plan (OPEP), an Operational and Scientific Monitoring Plan (OSMP), a MODU Safety Case and Safety Case Revision and a Well Operations Management Plan (WOMP). Since February 2014, NOPSEMA’s environmental management authorisation process has been endorsed by the Federal Minister for the Environment as a Program (the Program) that meets the requirements of Part 10, section 146, of the EPBC Act. Under the Program, the Minister for the Environment has approved a class of actions which, if undertaken in accordance with the endorsed Program, will not require referral, assessment and approval under the EPBC Act. Petroleum and greenhouse gas activities undertaken in Commonwealth waters in accordance with the Program are “approved classes of action”. The Program has objectives which include ensuring activities undertaken in the offshore area are conducted in a manner consistent with the principles of ecologically sustainable development and will not result in unacceptable impacts to matters of national environmental significance (MNES) protected under Part 3 of the EPBC Act. The EP provides an appropriate level of consideration of the potential impacts to protected matters. This has included making specific reference in Section 4 to the values of matters protected under Part 3 of the EPBC Act using references and relevant guidance documents to be considered, such as EPBC Act significance guidance documents, relevant policy statements, plans of management, recovery plans and on-line databases. Page 2 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 2 2.1 Activity Description Activity Overview Stromlo-1 and Whinham-1 will be drilled using the Ocean GreatWhite semisubmersible MODU. The MODU will be supported by a fleet of support vessels and three helicopters. The MODU is considered to be conducting a ‘petroleum activity’ from the time the MODU arrives at each well location, until the time the MODU demobilises from each well location. A 500 m Petroleum Safety Zone (PSZ) will be gazetted around the MODU when it is on location via a notice published in the Government Gazette, in accordance with the OPGGS Act. Support vessels are considered part of the petroleum activity while they are within the 500-m radius PSZ around the MODU. The 500-m radius PSZ limit has been selected because within this zone, the support vessels must comply with the MODU operating procedures as detailed in the MODU’s Facility Safety Case. When the MODU and vessels are outside the PSZ (e.g., steaming to or from location, or holding position outside the PSZ) and remain within Australian waters, they come under the regulatory jurisdiction of AMSA under the Navigation Act 2012 (Cth). Accordingly, this EP (and associated OPEP) does not cover activities performed by the support vessels while outside the PSZ. The supply vessels will resupply via a supply base in Port Adelaide. The supply base is regulated by SA authorities, and is outside the scope of this EP. As with the support vessels, helicopters are considered part of the petroleum activity while they are within the 500-m radius PSZ around the MODU. This EP does not cover activities performed by the helicopters while outside the PSZ. At all times, helicopter operations come under the regulatory jurisdiction of the Civil Aviation Safety Authority (CASA) under the Air Navigation Act 1920 (Cth), Civil Aviation Safety Regulations 1998 and the Federal Aviation Regulations. 2.2 Activity Location The Ceduna sub-basin is located on the southern margin of Australia in the GAB. Stromlo-1 and Whinham-1 are located approximately 600 km west of Port Lincoln respectively and 400 km and 350km southwest of Ceduna respectively. Stromlo-1 is at a depth of approximately 2250 m and Whinham-1 at 1150 m. The locations of the wells are shown in Figure 1. Page 3 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Figure 1 – Stromlo-1 and Whinham-1 well locations Page 4 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 2.3 Operational Details 2.3.1 Mobile Offshore Drilling Unit The wells will be drilled using the Ocean GreatWhite semi-submersible MODU. The MODU is owned and operated by Diamond Offshore General Company (Diamond). The Ocean GreatWhite is a Moss CS60E design, sixth generation harsh environment semisubmersible MODU. This MODU is designed to operate in water depths from 150 to 3,000 m and a drilling depth of up to 10,670 m measured depth. It has been designed to operate in harsh weather environments, such as the conditions that may be experienced in the GAB. 2.3.2 Support Vessels A fleet of vessels will be used to support the drilling campaign, and will be based out of Port Adelaide. The fleet will be dimensioned and selected to ensure they can efficiently fulfill the following functions: • Supply food, fuel and bulk powders, drilling fluid and drilling materials; • Collect waste; • Assist in emergency response situations; and • Monitor the 500-m radius PSZ around the MODU and intercept errant vessels. To achieve those objectives, vessels of different sizes and capabilities will be considered, collectively referred to herein as support vessels. There will be one vessel on standby at all times during the operations to provide support capability for the MODU in accordance with the MODU’s Facility Safety Case. The vessels will hold station using DP. Vessel crew changes are typically every 28 days and will be carried out alongside in port. Refueling of the support vessel fleet will also take place within port. 2.3.3 Aviation Operations Ceduna is the main base for BP’s helicopter operations in support of the Stromlo-1 and Whinham-1 Exploration drilling program. Helicopter operations to the MODU are planned as required but usually will be one return flight each weekday. In addition to the existing helicopter re-fueling facilities in Ceduna, helicopter re-fueling will take place on the MODU. Refueling will be undertaken in accordance with MODU-specific procedures. 2.4 Drilling Program 2.4.1 Timing and Schedule The drilling program is scheduled to commence in Q4 2016 to Q1 2017. It is anticipated that each well will take approximately 75 days to drill, however this duration is based on an average. In the event of any technical or equipment delays, this duration may be greater. As such the basis for the assessment for each of the wells has been up to 150 days. Page 5 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 2.4.2 Well Design and Drilling Methodology The well design and drilling methodology for each well is detailed in the well specific Well Operations Management Plan (WOMP), which is required to be accepted by NOPSEMA prior to commencement of drilling. At the completion of drilling operations, a series of cement and mechanical plugs will be set within the wellbore, and the well will be plugged and abandoned in accordance with the WOMP. 2.4.3 Drilling Fluids Drilling fluids (or muds) will be used during the drilling program to provide a range of functions, including: • Control of formation pressures (i.e., providing a hydrostatic head by managing mud density maintains well stability and prevent a blowout); • Wellbore stability through mud weight and chemical inhibition; • Transport of drill cuttings out of the hole to the MODU; • Maintenance of drill bit and assembly (i.e., lubrication, cooling and support); and • Sealing of permeable formations to prevent formation invasion The drilling methodology proposes the use of a combination of seawater with high viscosity sweeps and synthetic based mud (SBM). The selection of drilling fluids to be used during the drilling program is undertaken through an evaluation of the technical, safety and environmental attributes. The Great Australian Bight Exploration Program Chemical Assessment Guideline defines the process for the assessment of the offshore operational use and discharge of chemicals for the project. 2.4.4 Drilling cuttings and fluid discharge Consistent with industry practice, all cuttings generated by riserless drilling (ie in the first sections of the well bore) will be returned directly to the seabed where they will be deposited in the vicinity of the wellhead. Once the riser is in place, cuttings and muds will be returned to the MODU. On the MODU, the mud returns carrying the drilled cuttings will initially pass through a shale shaker where the majority of mud will be separated from the cuttings, before cuttings are discharged overboard. When SBM is used, cuttings from the shale shaker will be passed through a cuttings dryer, which will further remove SBM from cuttings. Tests will be conducted to determine the Retention on Cutting (ROC) for SBM to ensure that no more than 6.9% by weight on wet cuttings is discharged overboard. Drilling fluid will be re-circulated via the riser for reuse in the wellbore. No bulk SBM discharges will be permitted. Any unused or recovered SBM will be shipped back to port and inspected by the mud systems contractor. If it is subsequently determined that the properties of the recovered back-loaded SBM cannot be reconditioned at the onshore treatment facility, the SBM will be disposed of at an authorised waste management site. Page 6 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 2.4.5 Well evaluation The well will be evaluated using Logging While Drilling (LWD) techniques and mud logging. Wireline logging and formation testing/sampling may be performed based on the results of the primary evaluation tools. Wireline evaluation will be undertaken to determine rock and fluid properties of the targets. A suite of standard wireline logs will be run, including gamma ray, neutron-density, resistivity, sonic, acquisition of pressures and samples, vertical seismic profiling (VSP) and side wall coring. A VSP will be conducted to tie the well bore to the existing 3D seismic dataset, to refine the geological prognosis and aid with casing shoe placement. VSP operations involve deploying an acoustic sound source from the MODU or support vessel, while a number of receivers (geophones) are positioned at different levels within the drilled hole to measure the travel time. Typically, between three and six air guns are used during a VSP, with a volume of between 150 - 250 cui each. The source is generally positioned at 5-10 m below water surface. Zerooffset VSP operations, proposed for this drilling program, are typically of short duration, normally taking not more than a day to complete. Two VSP operations are planned for each well, and each will also have a source test 48 hours before VSP operations commence. Whilst VSPs are quieter and shorter in duration than exploration seismic surveys, measures outlined in the EPBC Act Policy Statement 2.1 ‘Interaction between offshore seismic exploration and whales’ (DEWHA, 2008) will be implemented during VSP. 2.4.6 Plug and abandonment of well All wells drilled will be permanently plugged and abandoned after completion of data acquisition and evaluation programs, in accordance with applicable BP practices and the WOMP. Plug and abandon procedures are designed to isolate the well and mitigate the risk of a potential release of wellbore fluids to the marine environment. Plug and abandon operations will involve setting a series of cement and mechanical plugs within the wellbore, including plugs above and between any hydrocarbon bearing intervals, at appropriate barrier depths in the well and at the surface. These plugs are tested to confirm their integrity. Page 7 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 3 Stakeholder Consultation The consultation that has been conducted in the course of preparing this EP has been ongoing since December 2014 and has comprised a number of iterative stages, underpinned by the publication of materials on the project website, and supplemented by additional bespoke engagement on specific issues with specific relevant persons where necessary. This consultation has been conducted in respect to a broader scope of petroleum activities than that covered by this EP, i.e. BP’s initial proposed EP to drill four wells anywhere within a 12,100km2 area (including the locations of Stromlo-1 and Whinham-1). This EP represents a contraction of scope relative to the broader drilling area EP. It does not include any new or different activities (rather a subset of the activities within the four well program), or new or different risks or impacts to the environment or to the functions, interests and activities of relevant persons, nor to any new relevant persons. All previous consultation undertaken in respect to the four well program is relevant to this EP. Additional consultation has been undertaken to update stakeholders regarding the proposed scope of this EP, and will continue leading up to and during drilling operations. 3.1 Identifying relevant persons, and their functions interests and activities In accordance with the regulations, BP describes five categories of relevant persons. The first two categories are the respective Commonwealth and relevant State/Territory Government departments that may be relevant based on the activities proposed. NOPSEMA’s Guideline (NOPSEMA, 2016) states “This is taken to mean a Government Department or agency that has responsibility for managing the marine environment. This may include those with responsibilities for environmental and fisheries management, defence and communications, maritime/navigational safety, marine parks and native title.” However, reflecting the broader interest in the holistic potential of oil and gas exploration and development, BP has not limited itself to this guidance and for example has also included local government and regional development agencies in the Eyre Peninsula as having a relevant interest. The third category is the “Department of the responsible State Minister, or the responsible Northern Territory Minister” and in this instance is the South Australian Department of State Development (DSD). DSD has also provided invaluable assistance in coordinating the input of other relevant South Australian agencies consulted under the second category, above. The fourth category is “a person or organisation whose functions, interests or activities may be affected” by the proposed activities. The Regulations further describe the meaning of the terms ‘functions’, ‘interests’ or ‘activities’: • ‘Functions’ are a person or organisations power, duty, authority or responsibilities. • ‘Activities’ are a thing or things that a person or group does or has done. • ‘Interests’ are a person or organisation’s rights, advantages, duties and liabilities; or a group or organisation having a common concern. The fifth category is “any person or organisation that the titleholder considers relevant” and in this category BP has chosen to include elected representatives, regional development or indigenous agencies, and environmental issue motivated groups (IMGs) that have either expressed an interest in the activity or have a track record of expressing interest in similar activities in Australia. Page 8 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Relevant stakeholders were identified from a ground-up evaluation of the economic, social and environmental interests in the GAB that was initially developed for BP’s 2011 marine seismic survey. This existing stakeholder database has been further refined according to BP’s ongoing consultation. Internet publication of relevant project information has further enabled the self-nomination of other interested parties. The justification of how BP has identified which stakeholders to consult in this scenario is contained below in Table 1. Table 1 contains a list of the stakeholders considered to be relevant persons and therefore consulted in connection with each of these categories during the preparation of this EP, together with why BP considered their functions, interests and activities to be relevant. Table - 1: Identification of relevant persons Person or organisation Relevance to the activity Relevant persons identified pursuant to Regulation 11A(1(a)): each Department or agency of the Commonwealth to which the activities to be carried out under the EP, or the revision of the EP, may be relevant. Department of the Environment (DOE) DOE has responsibility for the Environment Protection and Biodiversity Conservation (EPBC) Act which regulates significant environmental impacts upon matters of national environmental significance, including threatened species, migratory species and the Commonwealth Marine Area. DOE also has responsibility for the establishment and regulation of a network of Commonwealth Marine Reserves, some of which overlap with the activity area. Australian Maritime Safety Authority (AMSA) AMSA is responsible for legislation relating to safe navigation at sea and the interaction of the activity with other shipping traffic. AMSA is responsible for the National Plan for Maritime Environmental Emergencies and has been separately engaged on the formulation of the OPEP associated with this EP. Australian Fisheries Management Authority AFMA is responsible for the management of (AFMA) fisheries in the Commonwealth Marine Area, including whether any marine pollution incident could lead to their closure. Department of Defence (DOD) DOD was considered a relevant organisation in case military training operations were planned to coincide with the activity. Australian Communications and Media ACMA was considered a relevant Authority (ACMA) organisation because under the Telecommunications Act (1997) it has responsibility for the installation and protection of submarine cables. Relevant persons identified pursuant to Regulation 11A(1(b)): each Department or agency of a State or the Northern Territory to which the activities to be carried out under the EP, or the revision of the EP, may be relevant. Page 9 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview South Australian Department of Planning, These agencies include those with Transport and Infrastructure (DPTI) responsibility for environmental management in coastal waters and upon the South Australian Department of coastline, eg for state fisheries. In addition Environment, Water and Natural Resources SARDI conducts research throughout the (DEWNR) GAB, and SAPOL has a role as a law DEWNR Manager of GAB Marine Park enforcement agency including in the South Australian Environmental Protection Commonwealth Marine Area where called Authority (EPA) upon to do so. South Australian Department of Primary DPTI is the SA Lead Agency (and DOT the Industries and Regions (PIRSA) WA Lead Agency) for combatting oil spills South Australia Police (SAPOL) under the National Plan, whilst SA EPA and South Australia Research and Development WA DPAW have responsibilities for Institute (SARDI) Western Australian Department of Transport environmental management in the coastal Western Australian Department of Fisheries areas of SA and WA respectively. Western Australian Department of Mines and Petroleum Western Australian Department of Parks and Wildlife Relevant persons identified pursuant to Regulation 11A(1(c)): the Department of the relevant State Minister, or the responsible Northern Territory Minister South Australian Department of State DSD is the Department of Hon Tom Development (DSD) Koutsantonis MP, the relevant State Minister under the Offshore Petroleum and Greenhouse Gas Storage Act. Relevant persons identified pursuant to Regulation 11A(1(d)): a person or organisation whose functions, interests or activities may be affected by the activities to be carried out under the EP, or the revision of the EP Australian Southern Bluefin Tuna Association These fishing organisations were identified (ASBTIA) as relevant organisations primarily, but not limited to, their interests in commercial South Australian Sardines Industry fishing in and around the drilling area and/or Association (SASIA) of species in the food chain for such Sarin Group commercial fishstocks. Some have also Great Australian Bight Industry Association been contacted to discuss their involvement (GABIA) Commonwealth Fisheries Association (CFA) in oil spill response planning, eg as providers of Vessels of Opportunity. Southern Shark Industry Alliance (SSIA) These fishing organisations were identified as relevant organisations primarily, but not South Australian Oyster Growers limited to, their interests in commercial Association (SAOGA) Spencer Gulf and West Coast Prawn Fishers fishing further from the drilling area and/or along the coastline. Some have also been Association (SGWCPFA) contacted to discuss their involvement in oil Abalone SA spill response planning, eg as providers of Northern Zone Rock Lobster Fishery Vessels of Opportunity. Association (NZRLFA) South Australian Marine Scalefish Association (MSA) Marine Fishers Association (MFA) South Australian Mussel Growers Association (SAMGA) Seafood Council SA Page 10 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Wildcatch Fisheries of South Australia (WFSA) Charter Boat Fisheries Western Australian Fishing Industries Council Fowlers Bay Ecotours This organisation self-identified as relevant because of its tourism dependency upon the seasonal presence of cetaceans along the Eyre Peninsula coastline. Relevant persons identified pursuant to Regulation 11A(1(e)): any person or organisation that the titleholder considers relevant District Council of Ceduna These persons and organisations were identified as relevant persons primarily District Council of Streaky Bay because, but not limited to, their District Council of Elliston representative role in the broad community District Council of Lower Eyre Peninsula of the Eyre Peninsula and/or their ministerial City of Port Lincoln role in related matters. Kangaroo Island Council Eyre Peninsula Local Government Association Rowan Ramsey MP, Federal Member for Grey Senator Nick Xenophon Federal Senate Select Committee on Environment and Communications Hon Geoff Brock MP, SA Minister for Regional Development and Local Government Peter Treloar MP, SA MP for Flinders Hon Ian Hunter MP, SA Minister for Sustainability, Environment and Conservation Eyre Peninsula Mining and Energy These organisations were identified as Resources Community Development relevant persons primarily because, but not Taskforce limited to, their role in the regional development of the Eyre Peninsula. Eyre Peninsula Natural Resources Management Board Alinytjara Wilurara Natural Resource Management Board Regional Development Australia – Whyalla and Eyre Peninsula Far West Native Title Group These organisations were identified as relevant persons primarily because, but not Yalata Community Inc limited to, their role in native title and indigenous affairs on the Eyre Peninsula. Australian Conservation Foundation Clean Bight Alliance Conservation Council of South Australia Friends of Scale Bay International Fund for Animal Welfare Sea Shepherd Australia These organisations were identified as relevant persons primarily because, but not limited to, their expressed interest in the drilling activity and/or their previous interest in the environmental impact of similar activities in Australia. Page 11 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview The Nature Conservancy The Wilderness Society Whale and Dolphin Conservation Society Wild Migration Kangaroo Island World Wildlife Fund Australia General Public 3.2 In order to allow other members of the community to identify themselves as having a function, interest or activity relevant to the consultation, BP created a website and feedback mechanism at www.bpgabproject.com.au and have used this as a library for the stakeholder materials used elsewhere in consultation. Providing ‘sufficient information’ to make an informed assessment. As NOPSEMA’s guideline for deciding on consultation requirements notes, the provision of information is likely to be iterative and this has been the case with this EP. The approach adopted by BP has been to progress in phases, with successive approaches to all stakeholders identified at the time interspersed with bespoke follow-up engagement with any specific issues raised. The main structure of this iterative staging has been as follows: • December 2014: Introductory letter to identified relevant persons with initial information and seeking expressions of interest in further consultation. • February-April 2015: face to face briefings with a range of relevant persons. • May 2015: Letter to all identified relevant persons summarising the outcomes of face-toface briefings and including links to website information. • July 2015-February 2016: Further various correspondence and meetings with specific relevant persons on specific points raised. (NB, initial submission of four well strategic EP in September 2015.) • March 2016: Letter to all identified relevant persons summarising the specific engagement with them to date, leading up to the submission of a second iteration of four well strategic EP in March 2016. • April-July 2016: Further various correspondence and meetings with specific relevant persons on specific points raised. • July 2016: Fact sheet to all identified relevant persons, and published on project website, providing an update on progress including the focussing of EP scope to Stromlo-1 and Whinham-1 only; and explaining further information to come. Where possible, the response to specific issues raised has been made publicly available via the project website. Key library resources are available at www.bpgabproject.com.au. BP has adopted a bias to disclosure of information as far as possible, and significant materials have been published on the project website including sound modelling, cuttings dispersal modelling, a report on oil spill modelling fate and effects, and a draft summary of the initial version of a GAB drilling EP, which remains a valid information source about the proposed activity. Page 12 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview The project website (www.bpgabproject.com.au) was established in 2013 and is updated regularly with information for stakeholders to access at their convenience. 3.3 Providing a ‘reasonable period’ for consultation Most of the stakeholders identified for the project had been identified at the onset of consultation, and were engaged on multiple occasions during the course of 2015 and into 2016. All stakeholders that had been identified at the time have also received at least two communications in 2016, including immediately prior to the submission of this EP revision. This has been a lengthy period of time, and BP believes is more than a reasonable period for any relevant persons to form a view and engage in discussion with the titleholders. Throughout the lengthy consultation conducted in support of the preparation of this EP, BP has stressed the iterative nature of the assessment and consultation process involved in the development of an EP – and the enduring nature of consultation as part of the implementation strategy beyond acceptance. 3.4 Consultation Outcomes The key themes that have been raised during consultation are summarised in Table 2. These key themes have been provided back to all relevant persons. In addition, where any relevant person has proposed a measure (whether it technically is a control measure or some other form of suggestion), the response from BP has been provided to all relevant persons. A summary of the suggested measures and BPs response is included below as Table 3. Table 1 - Key themes raised during stakeholder consultation Public access to oil spill modelling and oil spill response documents A number of stakeholders have requested a full copy of the oil spill modelling report, as they believe that they need to see this report to be assured that BP has adequately planned for oil spill response. BP has published its report ‘Fate and Effects Oil Spill Modelling Report: Assumptions, parameters and results’. BP has also provided a summary of tactical response plans on the project website. Oil spill modelling has been recently updated for this EP and an updated version of the Fate and Effects report is being prepared for imminent release. This information is not strictly necessary for a stakeholder to understand and communicate the consequence of an oil spill upon their functions, interests and activities and is an example of BP providing more information than is conventional in order to support EP consultation. The details of how the project has incorporated lessons learned from the Deepwater Horizon incident have also been discussed during consultation meetings. Specific information regarding prevention of loss of well control and technical solutions to a loss of well control event, such as capping and containment and relief well planning, was provided in the published draft EP summary. Prevention of, and response to, a well blowout A number of stakeholders raised concerns regarding BP’s capacity to prevent oil spills, with a focus on spills resulting from a loss of well control, particularly in light of the Deepwater Horizon incident. Specific questions focused on the use of capping stacks and BP’s capacity Page 13 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview to drill a relief well. Given this feedback from the initial consultation, BP focused follow up face-to-face meetings on oil spill prevention and response. Specific information was provided regarding loss of well control prevention and response measures, as well as details of oil spill planning and response. These follow up meetings were conducted by BP’s specialists in these areas (the GAB Engineering Team Leader and GAB Crisis and Continuity and Emergency Response Manager). Specific information regarding capping and containment as well as the drilling of relief wells was provided by the GAB Engineering Team Leader in face-to-face meetings. Information regarding the various capping stacks available for use, and how these capping stacks may be used during a loss of well control event were discussed. Details regarding the relief well planning process were also provided, including information regarding timeframes associated with drilling a relief well, and how BP would access required resources. This information has been summarised and included on the project website. The details of how the project has incorporated lessons learned from the Deepwater Horizon accident have also been discussed during consultation meetings, with specific information provided regarding prevention of loss of well control and technical solutions to a loss of well control event, such as capping and containment and relief well planning. This information is included in the published Draft EP Summary released in October 2015. Nevertheless some stakeholders continue to clearly communicate that they would be more comfortable with equipment such as a capping stack being based locally. This specific control measure proposal is considered in Table 3 below. Use of dispersants A number of questions were raised regarding BP’s plans to use dispersant in the event of an oil spill, particularly regarding the type of dispersant that would be used, and how they work. Reference was made to toxic impacts associated with dispersant use in response to the Deepwater Horizon incident. BP provided information regarding the types of dispersant that may be used and the requirements of the Australian Oil Spill Control Agents (OSCA) register (i.e., requirements for toxicity and efficacy testing of dispersants before they are approved for use in Australia). BP noted that at this stage eco-toxicity testing is dependent upon analogues because no actual oil has been discovered in the GAB. However there has been Australian research upon analogous fishes and molluscs which provides a sound foundation for the risk assessment of their use in the GAB, with BP willing to provide further specific testing on GAB oil should any be discovered in commercial quantities. BP also outlined the decision-making process that would be undertaken prior to deciding to apply dispersants (i.e., that an operational net environmental benefit analysis would be conducted as part of oil spill response). BP has also provided a summary of tactical response plans on the project website, which includes a summary tactical response plan for dispersant use. Nevertheless some stakeholders continue to clearly communicate that they wish to see ecotoxicity testing being conducted upon specific local species. This specific control measure proposal is considered in Table 3 below. Impact of underwater sound on marine life A number of questions were raised regarding generation of underwater sound and the Page 14 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview potential impacts of this sound on marine life. BP discussed the results of underwater sound modelling that was conducted for the project. This modelling predicts that the level of sound generated during drilling is highly unlikely to cause physical or behavioural impacts to sensitive marine species. The underwater sound modelling report has been made available to stakeholders via the project website. A specific proposed control measure suggested by stakeholders (the injection of a curtain of air bubbles around the rig) is considered in Table 3 below. Water depths Most stakeholders asked about the water depth of the GAB wells, and specifically if they were deeper than ‘normal’ wells. The exact drilling locations were determined during the course of the ongoing EP consultation, so specific details of water depths could not be provided in the earliest engagements. BP advised that the water depths in the drilling area range from approximately 1,000 m to 2,500 m. Furthermore, BP advised that both these water depths, along with likely well depths, are similar to wells drilled by BP elsewhere in the world, such as the Gulf of Mexico, Angola and Brazil. Economic opportunities from the program A number of stakeholders were interested in discussing the economic opportunities that may arise as a result of the drilling program. BP discussed potential opportunities that will arise in locations such as Ceduna. It was noted however, that at this early stage of exploration, employment opportunities are limited – and that this was outside the scope of the EP. Details were also provided regarding the Industry Capability Network (ICN) portal that BP has opened to engage with the local supply chain, which encourages potential suppliers to register interest in order to be informed of future local supply chain opportunities. Some stakeholders also raised the possibility of a negative impact upon economic opportunities, for example if the presence of oil and gas industrial activities diminished the ‘clean green’ brand of South Australian seafood or tourism opportunities. Largely this related to the consequences of an oil spill. Examples of where the oil and gas industry successful interacts and coexists with fishing and tourism industries featured in a number of submissions to a Senate Inquiry into petroleum exploration in the GAB. Public access to the EP A number of stakeholders have requested a full copy of the EP prior to it being submitted to NOPSEMA. They believe that being asked to provide input without seeing the full EP is not possible. BP began what is now a 20-month consultation process leading up to the submission of this EP at a time when it had identified key issues, but had not settled upon the answers to them. Most stakeholders welcomed the fact that BP was prepared to develop its EP through an iterative process with them, rather than presenting them with a final document. However, other stakeholders chose to present this inclusive process as a failure to provide answers from the outset. Nevertheless, in order to maximise disclosure, BP has provided an outline of what key Page 15 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview environmental impacts will be assessed in the document, and the mitigation and control measures that will be implemented to manage these potential impacts. BP has also asked for stakeholders to identify specific areas that they would like additional information on. As a result, BP focused follow up face-to-face meetings on oil spill prevention and response. BP published a draft EP summary on the project website at the same time the first version of the full EP was submitted to NOPSEMA, rather than after the EP has been accepted by NOPSEMA. This allowed all stakeholders to review the coverage of issues raised in full, over a period of time before the submission of subsequent revisions of the EP. . BP has ensured answers to specific questions raised during EP consultation are shared by including FAQs on the ‘consultation’ part of the project website. BP has also responded to specific correspondence that provided more detail on a number of areas throughout the consultation process. Opposition to drilling Some stakeholders indicated broad scale opposition to BP’s plans to drill in the GAB per se rather than specific aspects of the EP, for example due to opposition to fossil fuel extraction or exploration in the GAB. Whilst BP recognises that these are legitimate views for debate in society, and engages with them in a number of forums such as government policy White Paper processes, it proved difficult to find areas of constructive discussion and mutual agreement from these discussions that relate to the EP itself. Table 2 - Summary of measures proposed during consultation, and titleholder response An explanatory note upon this Table During consultation stakeholders raised a variety of issues. Some were simply questions. Others were proposals or assertions that did not always neatly fall within NOPSEMA’s definitions of ‘control measures’ or ‘objections or claims’. BP has therefore included all significant specific proposals here. This table has been provided to all identified stakeholders. Stakeholder proposal 1: What is the underlying risk to which the proposal relates? Has the Titleholder adopted the proposal? What environmental performance outcomes/ Stakeholder proposal 1 Access marine traffic information, contact the Joint Rescue Coordination Centre at start and end of survey, and contact the Australian Hydrographic Service to enable a Notice to Mariners two weeks prior to commencement. “Physical Interaction – other marine users” Yes Pre-start notification and their timing (2 weeks) have been included within Section 9 of the EP. In addition to this, environmental performance standards have been developed. Environmental performance outcomes: EPO 2: All relevant marine users will be notified of Petroleum Exclusion Zones prior to operations EPO 3: No damage to other marine user fishing equipment Page 16 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview standards/ measurement criteria have been adopted to manage the risk If not adopted, why would the proposal be grossly disproportionate? during the course of the petroleum activity. Performance standards Measurement criteria 1. Sailing plans for the MODU 1. Contents of sailing are prepared prior to plans are provided to mobilisation to location, for AMSA. each rig move, and prior to demobilisation from the last well location. 2. Notices to Mariners are 2. Information to reported to the Australian communicate a Notice to Hydrographic Service Mariners is provided to delineating the Petroleum the Australian Exclusion Zone Hydrographic Service via email [email protected] two weeks prior to spud. 3. The BP GAB external 3. Consultation database affairs team ensures that a and emails are available to notification flyer, noting the confirm that notifications MODU’s location, is issued to were issued prior to the stakeholders immediately MODU arriving on prior to the MODU’s arrival on location. location (i.e. during mobilisation to site). n/a Stakeholder proposal 2 Stakeholder proposal 2 Locate oil spill response equipment including a capping stack locally What is the underlying risk to which the proposal relates? Has the Titleholder adopted the proposal? What environmental performance outcomes/ standards/ measurement criteria have been adopted to manage the risk “Accidental release – well blowout” Significant equipment will be available at the drilling location, in Adelaide and nationally and internationally. However capping stack location is Singapore and this is explained below. Environmental performance outcomes: No well blowout associated with the drilling program. Performance standards Measurement criteria Safety critical equipment identified within Section 6.3 of the WOMP from BP Practice 100222 will be utilised Records confirm safety critical equipment identified in Section 6.3 of the WOMP from BP Practice 100222 are being utilised Page 17 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview The fluid and cementing programmes documented within the WOMP from BP Practice 100222 will be implemented. Drilling Fluid and Waste Management Programme Cementing Programme Daily drilling reports A well programme will be developed prior to spud and implemented. Signed off Drilling / Well program Daily drilling reports The Planned Maintenance System (PMS ) will ensure safety critical equipment, specifically the BOP will be maintained in accordance with the manufacturer specifications. PMS records Prior to use, the BOP will be subjected to an Integrated Acceptance Test (IAT) Part 2 and signed off by BP. Signed off / dated IAT records Prior to use, the BOP will be subjected to independent third party verification against API Standard 53. Dated records confirm independent verification of BOP against API Standard 53 The BOP will be tested in accordance with the frequencies described in the BOP testing procedure. Records confirm BOP tested in accordance with the BOP testing procedure. BP will use a self verification and oversight model, described in Section 4.4.2 of the WOMP to verify well barriers throughout the duration of the drilling program. Practical barrier checks and frequency of self verification and oversight will be implemented in accordance with the GWO Safety Plan. Records confirm practical barrier checks and frequency of self verification and oversight will be implemented in accordance with the GWO Safety Plan BP’s Competence Management Programme (CMP) will ensure all personnel in safety critical roles are assessed and the employees behaviours, skills, knowledge and understanding verified to assure competence. Records from the CMP confirm personnel within safety critical roles are assessed. A WOMP will be in place and accepted by NOPSEMA for NOPSEMA Acceptance letter confirms WOMP is Page 18 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview each well prior to spud. accepted prior to spud Environmental performance outcomes: Mitigate environmental impacts in the event of a well blowout If not adopted, why would the proposal be grossly disproportionate? The programmes OPEP will be implemented in the event of a well blowout IMT log Incident Action Plan (IAP) records Response preparedness will be undertaken in accordance with the control measures identified within the programmes OPEP. Pre spud audit In the event of a well blowout, the Well Containment Response Plan will be implemented. IMT log IAP records In the event of a well blowout, the relief well plan will be implemented. IMT log IAP records The programmes OSMP will be implemented in the event of a well blowout IMT log IAP records Spill response exercises will be undertaken as a part of the drilling programme execution in accordance with the programmes OPEP. Exercise records BP’s Crisis Management IMT log Response System will be IAP records implemented in the event of a well blow out event in accordance with Section 2 of the OPEP A proposal to have a capping stack in the country was considered. The capping stack that is available to be brought into Australia was not considered to be technically equivalent to the OSRL well cap in Singapore. Built for a different type of operation, the optional capping stack would have required extensive modifications. It would be more cumbersome to operate because it requires a Subsea Accumulator Module (SAM) for closing instead of the ROV torque tool that would be used for the OSRL cap. In addition, the OSRL cap is preferred because it would be more erosion resistant and durable with HH internal trim instead of the EE trim on the optional capping stack. This option was, therefore, rejected. Although the cost of the optional stack was not prohibitive, the surface and subsea infrastructure required to maintain and operate such a stack would need to be equivalent to the facilities used by OSRL to store and maintain the capping stack in its regional centres in Singapore, South Africa, Page 19 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Norway and Brazil. The initial preparation time and cost to build and staff such a facility would be prohibitive for a two or four well operation. The OSRL well cap in Singapore is maintained in constant state of readiness, extensive logistics planning and tabletop exercises have been performed, and it is supported by an international collaboration of industry operators. Therefore, it is the preferred capping solution for the GAB. The cost of purchasing a new capping stack was also considered with an estimated cost to be in the order of US$15,000,000. Construction and acceptance testing time is estimated to be eight to twelve months. Also, there would need to be technical specialists and a facility to store, maintain and regularly function and pressure test the equipment so that it is kept in an ongoing state of readiness if needed. This required expertise and facility is not available in country. Industry specialists are co-located with capping equipment in Houston and other regional bases including Singapore. This was not considered a viable or practicable solution because of relative cost, construction time and lack of available resources. Estimated costs of having a construction vessel on standby for capping operation is approximately US$15,000,000 assuming a 150-day campaign and a day rate of US$100,000. BP is assessing the Australian and the Southeast Asia markets to fully understand vessel capabilities and availabilities to identify vessels that can install a 95-mt capping stack to 2,250- water depth in the GAB. BP will enter an agreement for “first refusal” on a vessel capable of deploying the capping stack prior to drilling into potential reservoir sections. Although no other options are available at this time, BP will continue to monitor and evaluate future global well capping and containment offerings from industry consortia and commercial entities to determine if more could be done sooner and identify the potential environmental benefit and associated cost. Stakeholder proposal 3 What is the underlying risk to which the proposal relates? Has the Titleholder adopted the proposal? What environmental performance outcomes/ standards/ Stakeholder proposal 3 Conduct eco-toxicity testing with analogue oils on local fish species “Accidental release – well blowout. Response Technique Risk Evaluation: Planned discharges – dispersants” No Environmental performance outcomes: No disturbance to environmentally sensitive benthic habitats Performance standards Measurement criteria No spraying of dispersants IMT log within Threatened Ecological Page 20 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview measurement criteria have been adopted to manage the risk If not adopted, why would the proposal be grossly disproportionate? Communities (TEC’s) or southern right whale (SRW) Calving Biologically Important Area (BIA). NEBA completed prior to operational spraying of dispersant onto the oil. Results of NEBA socialised with DPTI (SA), DoT (WA), AMSA (Cwlth), NOPSEMA (Cwlth) and DoE (Cwlth). NEBA validated during each operational period (To consider – spill trajectory, eco-toxicity data, entrained oil monitoring results, water sampling results, feedback from jurisdictions and Commonwealth). Only dispersants listed and approved on the National Plan oil spill control agent (OSCA) register will be used for both surface and sub-surface application. Dispersant/oil ratio adjusted for optimal dispersion. IMT log IAP IMT log IAP IMT log IAP IMT log. Effective log keeps (volumes sprayed, locations, etc.). IMT log. Effective log keeps (volumes sprayed, locations, etc.). NEBA completed prior to IMT log. dispersant spraying. daily Effective log keep (volumes sprayed, locations, etc.). Dispersant spraying continues IMT log. until termination points are Effective log keep met. (volumes sprayed, locations, etc.). 1. If oil is discovered, BP has agreed to undertake eco-toxicity testing upon specific GAB species such as Southern Bluefin Tuna. However in the absence of actual local oil, any additional studies will provide no added knowledge on impacts which are reliant on analogues. Other studies on analogous oil, species and dispersants already exist in Australia for fish and molluscs and provide a sound foundation for risk assessment. 2. At the time of the Deepwater Horizon incident, eight dispersants on the US National Contingency Plan (NCP) Product Schedule were tested for toxicity with findings indicating that the majority of dispersants were slightly toxic to practically nontoxic (in accordance with GESAMP 2014). At the time of the incident, the tests indicate that the dispersant alone causes less toxic effect than the crude oil. The crude oil dispersed with the dispersant was found to have the same Page 21 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview rating as the mechanically dispersed crude oil of ‘moderately toxic’ to both species. In this case the measured toxic effects are caused by the oil, not the dispersant (IPIECA-IOGP, 2014; Hemmer et al. 2011 and Word et al. 2014). Conclusion: further analogue based research would not add to the existing comprehensive stock of knowledge. Cost and delay caused would be grossly disproportionate when there is a nul potential benefit. Stakeholder proposal 4 What is the underlying risk to which the proposal relates? Has the Titleholder adopted the proposal? What environmental performance outcomes/standar ds/measurement criteria have been adopted to manage the risk If not adopted, why would the proposal be grossly disproportionate? Stakeholder proposal 5 What is the underlying risk to which the proposal relates? Has the Titleholder adopted the proposal? What environmental performance outcomes/standar ds/measurement criteria have been adopted to manage the risk Stakeholder proposal 4 Undertake oil spill modelling at lower thresholds. “Accidental release – well blowout” Yes. Oil spill modelling had previously been conducted to 5g/m2 thresholds and this has been now reduced to 1g/m2 to enable socio-economic impacts to be evaluated. Environmental performance outcomes: n/a not a control measure Performance standards Measurement criteria n/a not a control measure n/a not a control measure n/a Stakeholder proposal 5 Deploy a curtain of air bubbles around the rig “Underwater sound” No Environmental performance outcomes: No harm to marine fauna during the activity Performance standards Performance standards In accordance with Part A.2 of EPBC Act Policy Statement 2.1, training sessions for VSP crew are undertaken prior to conducting the vertical Attendance sheets verify that VSP personnel attended VSP training. Page 22 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview seismic profile (VSP) to be able to fulfil the requirements of A.3 of the policy statement requirements. MMOs to be present to undertake observations during VSP operations. Records of MMOs presence during VSP operations. The EPBC Act Policy 2.1 Part A Standard Management Procedures (Section A.3) is implemented during VSP, which involves the following: A.3.1-3.2: Start-up procedures Pre-start visual observations for 30 minutes out to 3 km. Soft start, increasing power over a 30-minute period, with visual observations out to 3 km. Delay start up procedures/power down any operating acoustic source if whales are observed within 1 km of the VSP source and shut down if they approach within 500 m. Resume soft start procedures once the whale has been observed to move outside the low power zone (1 km). VSP operations report verifies that EPBC Act 2.1 Part A was implemented. The EPBC Act Policy 2.1 Part A Standard Management Procedures (Section A.3) is implemented during VSP, which involves the following: A3.3: Start-up delay procedures If during the soft start procedure a whale is observed to enter the low power zone (1 km), the acoustic source will be reduced to minimum power. If a whale is observed within the shutdown zone (500 m), the power source will be shut down. Soft-start procedures will only resume after the whale has been observed to exit the low VSP operations report verifies that EPBC Act 2.1 Part A was implemented. Page 23 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview power zone (1 km) or if the whale has not been sighted for 30 minutes. The EPBC Act Policy 2.1 Part A Standard Management Procedures (Section A.3) is implemented during VSP, which involves the following: A.3.4-3.5: Operations procedure If a whale is spotted within the low power zone (1 km), the acoustic source will be reduced to minimum power. If a whale is observed within the shutdown zone (500 m), the acoustic source will be shut down. Soft-start procedures will only resume after the whale has been observed to move outside the low power zone (1 km) or if the whale has not been sighted for 30 minutes. The EPBC Act Policy 2.1 Part A Standard Management Procedures (Section A.3) is implemented during VSP, which involves the following: Night-time and low visibility procedure Wherever practicable, commence VSP during daylight hours. Where due to operational requirements, a VSP must commence during night-time or low visibility conditions, the soft start procedure outlined previously will be implemented provided that there have not been two or more blue, sperm or southern right whales observed within the 3km observation zone during the preceding 24 hours. The EPBC Act Policy 2.1 Part B requirements regarding increased precaution zones’ is implemented for Whinham-1 during VSP: VSP operations report verifies that EPBC Act 2.1 Part A was implemented. VSP operations report verifies that EPBC Act 2.1 Part A was implemented. VSP operations report verifies that an increased ‘low power zone’ of 2 km was implemented during Page 24 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview A ‘low power zone’ of 2 km will be implemented during VSP activities conducted on Whinham-1 location. Conduct a passive acoustic monitoring (PAM) detection sensitivity study to determine the value of using PAM deployed from MODU. VSP on Whinham-1. Marine Mammal Observers (MMOs) will have access to IR binoculars to assist observations during VSP activities conducted during periods of low visibility. Evidence of IP binoculars being made available to MMOs. The BP Environment Manager (or delegate) will report cetacean sightings online to the DoE within 3 months of completion of each well using the Cetacean Sightings Application: http://www.marinemammals. gov.au/sorp/sightings. Copies of sighting reports are maintained to verify reports were made. Engines and thrusters are maintained in accordance with manufacturer’s instructions via the Planned Maintenance System (PMS) to ensure they are operating efficiently. PMS records verify that engines and thrusters are maintained to schedule. PAM detection sensitivity study conducted prior to VSP being conducted. Conduct sound measurement study to verify the outcomes of the sound modelling study. If not adopted, why would the proposal be grossly disproportionate? Sound measurement study has been conducted, and results have been reported in the end of well performance report. 1. Air provides an effective barrier to sound propagating through water and has been used to reduce underwater sound pressures from explosions and other underwater sound. However, there are significant operational constraints to implementing bubble curtains in deepwater and upon investigation no currently available technology would be capable of being designed around the MODU to reduce sound. 2. The thresholds for behavioural response by cetaceans to pulse sounds (eg VSP) are 140-160 db re 1µPa SPL RMS and for non-pulse (eg thrusters) 120 dB re 1µPa SPL RMS (Table 6.1 in Section 6.5). For fish, no behavioural response threshold level is identified for non-pulse/continuous sound, but for pulse the threshold for Temporary Threshold Shift is 186 dB re Page 25 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 1 μPa2.s SEL (Table 6.1 in Section 6.5). (It should be noted that these are different sound metrics - SPL RMS and SEL and therefore should not be directly compared without conversion). Sound modelling indicates that sound from a VSP source will decrease to below 140-160 db re 1µPa SPL RMS approximately 2-4km from the source; and that thruster sound will decrease to below 160 db re 1µPa SPL RMS within 100 metres and below 120 db re 1µPa SPL RMS between 10 and 40km from source. Therefore any behavioural responses may result in an undetectable or limited local degradation of the environment, rapidly returning to original state by natural action. Conclusion: there is no technically feasible way of implementing an air bubble curtain such that it could have a reductive effect upon an already low consequence impact. The costs are therefore grossly disproportionate to the likely benefit. Stakeholder proposal 6 What is the underlying risk to which the proposal relates? Has the Titleholder adopted the proposal? What environmental performance outcomes/standar ds/measurement criteria have been adopted to manage the risk If not adopted, why would the proposal be grossly disproportionate? Stakeholder proposal 7 What is the Stakeholder proposal 6 Vary start date outside tuna seasonal migration “Underwater sound” No Environmental performance outcomes: As per Stakeholder proposal 5 above Performance standards Measurement Criteria As per Stakeholder proposal 5 As per Stakeholder above proposal 5 above 1. The behavioural impacts of underwater sound would result in an undetectable or limited local degradation of the environment, rapidly returning to original state by natural action (see proposal 5 above) 2. The standby cost of an MODU which is otherwise ready for operation is conservatively estimated at $1 million per day. Conclusion: Given that the sound effects associated with DP/thrusters are well known, and the impacts are limited, the costs of implementing this proposal are grossly disproportionate to the level of benefit / risk reduction achieved. Stakeholder proposal 7 Conduct monitoring of actual sound levels generated by MODU thrusters and associated drilling operations. “Underwater sound” Page 26 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview underlying risk to which the proposal relates? Has the Titleholder adopted the proposal? What environmental performance outcomes/standar ds/measurement criteria have been adopted to manage the risk If not adopted, why would the proposal be grossly disproportionate? Stakeholder proposal 8 What is the underlying risk to which the proposal relates? Has the Titleholder adopted the proposal? What environmental performance outcomes/standar ds/measurement criteria have been adopted to manage the risk If not adopted, why would the proposal be grossly disproportionate? Yes. BP is still assessing the best options for monitoring actual sound levels. Environmental performance outcomes: As per proposal 5 above Performance standards Measurement Criteria Additional performance Additional measurement standards included in criteria included in Stakeholder Proposal 5 above Stakeholder Proposal 5 above Conduct sound measurement study to verify the outcomes of the sound modelling study. Sound measurement study has been conducted, and results have been reported in the end of well performance report. N/a Stakeholder proposal 8 Transit rig to the GAB and other vessels via west coast of Australia to avoid introduction of Pacific Oyster Mortality Syndrome “Physical presence – biofouling” Yes, the rig will transit to the drilling area via the west coast. However rig and vessel transit is out of scope of the EP (which covers the petroleum activity only) so there are no relevant outcomes, standards or measurement criteria. However the stakeholder raising this issue has been informed. Environmental performance outcomes: n/a Performance standards Measurement criteria n/a n/a n/a Page 27 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Stakeholder proposal 9 What is the underlying risk to which the proposal relates? Has the Titleholder adopted the proposal? What environmental performance outcomes/standar ds/measurement criteria have been adopted to manage the risk If not adopted, why would the proposal be grossly disproportionate? Stakeholder proposal 9 Provide financial support to the South Australian Seafood Quality Assurance Programme (SASQAP) and consider its role in OSMP “Accidental release – well blowout” Provision of financial support to the SASQAP is considered out of scope of the EP (which covers the requirements of the petroleum activity under the OPGGS(E) Regulations) .The SASQAP is considered in the OSMP. Environmental performance outcomes: Mitigate environmental impacts in the event of a well blowout Performance standards Measurement criteria The OSMP will be IMT log implemented in the event of a IAP records well blowout 1. BP has agreed to consider including SASQAP in the Operational and Scientific Monitoring programme to be implemented in the event of a spill. 2. BP has requested relevant stakeholders to provide proposals for consideration of other support for SASQAP. BP believes that sufficient information has been provided to stakeholders regarding the key themes raised during stakeholder consultation. BP will continue to consult with stakeholders during well planning and operations, and will provide relevant information as it becomes available. 3.5 Ongoing Consultation Stakeholder consultation will be ongoing in the lead up to and during the project. BP has written to all relevant stakeholders informing them of future consultation plans, stating that: • BP will contact them proactively should circumstances or BP’s plans change in such a way as to change the potential impact upon their functions, interests or activities. • BP will provide updates of activities on the project website as appropriate (www.bpgabproject.com.au): • − Shortly before commencement of drilling a well; − Monthly updates during drilling of a well; − Shortly after completion of drilling a well. In addition, stakeholders were reminded they can contact BP at any time should they have additional queries. Page 28 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 4 Description of the Existing Environment Oil spill modelling for a worst case credible scenario was undertaken to identify the potential ‘area that may be affected’ (AMBA) by hydrocarbon exposure (also . Modelling indicates that anywhere along the southern coast of Australia may be contacted by hydrocarbons in the event of a worst case spill (ie a well blowout), depending on the season that the spill occurs. The total AMBA has been zoned to reflect the thresholds at which potential impacts to ecological and social receptors may occur. The impact zones are referred to as: • Zone of Ecological Impact (ZoEI) - the zone where the exposure is >10 g/m2 surface, or >100 g/m2 on shorelines. • Zone of social impact (ZoSI) - the zone where the exposure is >1 g/m2 surface or >10 g/m2 on shorelines. This section describes the environmental, social and cultural features of the AMBA. 4.1 Physical Environment 4.1.1 Climate Australia’s size and geography gives rise to a diverse range of climate patterns across the continent and offshore islands; however, the southern and south-east coasts of Australia are primarily described as being a ‘temperate’ climate. The GAB is influenced by mid-latitude anticyclones or high-pressure systems that move from west to east across the region. In summer, the climate is influenced by northerly to north-westerly winds, while in winter, southerly to south-easterly winds and low pressure systems bring rainfall. Average monthly temperatures along the GAB coast range from 28°C in January to 17°C in July. The majority of annual rainfall in the GAB region occurs during the autumn and winter months (April to August), with an annual average of 272 mm at Eucla and 296 mm at Ceduna (BoM, 2011). 4.1.2 Bathymetry The seabed in Australian waters is diverse and complex, with recent mapping identifying 21 types of geomorphic features, including major features such as the continental shelf, slope, plateaus and abyssal plain; and smaller features such as basins, terraces, reefs and seamounts (State of the Environment Committee, 2011). The Stromlo-1 and Whinham-1 well locations occur within the continental slope of the GAB. The continental slope is up to 250 km wide in the GAB and features mid-slope terraces and numerous deep submarine canyons (GA, 2005), most of which are located to the southeast of the BP permits. Studies have identified that there are few sensitive seabed features in the vicinity of the Stromlo-1 and Whinham-1 wells. Two cone-shaped volcanic pinnacles are located in the northern half of EPP39, known as ‘Anna’s Pimple’ and ‘Murray’s Mount’. These pinnacles measure approximately 800 m in diameter and 200 m in height (Currie and Sorokin, 2011), and are located in water depths of about 1,800 m, approximately 20 km and 93 km from Stromlo-1 and Whinham-1 respectively. 4.1.3 Oceanography Australia is heavily influenced by four major currents: East Australian Current, Leeuwin current, Indonesian Throughflow, and the Antarctic Circumpolar Current. These four major Page 29 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview currents have a driving influence on the conditions and biodiversity in Australian oceans and coastal environments. In addition, there are a number of smaller and more complex current systems. Four distinct currents occur within the GAB: 1 Leeuwin – comprises waters of low salinity and high temperatures through the whole water column, originating from the tropical Indian Ocean and passing in an easterly direction along the continental shelf during winter with speeds up to 1 m.s-1 (Rogers et al., 2013; DEH, 2005c). During summer, the penetration of the Leeuwin Current into the GAB is weak to non-existent (Rogers et al., 2013), passing from west to east in a narrow band mostly during winter (DEH, 2005c; DEWHA, 2007). 2 Central Bight – characterised by warm, highly saline waters derived from the southwest Indian Ocean around October each year. This current intensifies over summer and autumn as it spreads east into the GAB where, when combined with the Leeuwin Current, it provides a continuous band of warm water across the GAB in winter (DEH, 2005c). 3 West Wind – present in the slope and shelf break parts of the GAB throughout the year and comprises cold water with low salinity (DEH, 2005c). 4 Flinders – a surface current characterized by cool, low saline waters (Edyvane, 1998) that runs westwards along the continental slope (DEH, 2005c). It is considered a ‘small sister’ to the major western boundary currents of the world (Rogers et al., 2013). In the absence of eddies, these data would indicate the Flinders Current to have an amplitude of 20 cm.s-1 at depths of 500-600 m and to form part of the Leeuwin Undercurrent that penetrates the GAB during winter (Rogers et al., 2013). Oceanographic features within the GAB and wider AMBA include seasonal upwelling zones (e.g. around Kangaroo Island, or Eyre Peninsula), and mesoscale eddies. The GAB has a mixed wind wave/swell environment in which at any location the sea-state rapidly ‘deteriorates’ during the passage of fronts and low-pressure systems, and then gradually ‘moderates’ as anti-cyclonic conditions return. The wave climate is mildest in February and most extreme in September (Rogers et al., 2013). Wave height is predicted to exceed 3 m for 30-60 days of the year and 6 m for 0-10 days of the year. Modelled average monthly (2006-2010 inclusive) water temperature profiles for the GAB indicated the monthly average sea surface temperature ranging from about 15°C in September to just below 20°C in February/March, with a consistent temperature of about 5°C at 1,200 m below the sea surface (APASA, 2011). Modelled average monthly (2006-2010 inclusive) salinity profiles for the GAB indicated the monthly average salinity (at the sea surface) stays within the 35.2–35.6 ppm range yearround, and remains about 34.5 ppm at 1,200 m below the sea surface (APASA, 2011). 4.1.4 Ambient Ocean Sound Ambient sound levels in the GAB were recorded from late 2011 to mid-2012 by sound loggers that were deployed in the GAB as part of BP’s efforts to investigate underwater sound characteristics of the area; one near the Head of Bight, and two along the shelf break. Ambient sound was higher at the shelf break sites compared with the Head of Bight, and the two shelf break sites showed a steady increase in ambient sound over summer and into early Winter (McCauley et al., 2012). McCauley et al (2012) found that ambient sound levels: • μPa SPL Root At the Head of Bight – ranged from 73.5 to 131.9 dB re 1 (RMS), with an average of 97.1 dB re 1 μPa (SPL RM S); and Page 30 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview • μPa (SPL RM S At the shelf break - ranged from 74.5 to 144.9 dB re 1 111.7 dB re 1 μPa (SPL RM S). 4.1.5 Hydrocarbons Studies of the water column chemistry, hydrocarbon degrading microbial communities, and asphaltite distribution form a component of the GAB Research Program. Water column samples taken during a number of voyages found that hydrocarbons were largely absent in the sample set. Seabed sediment samples contained variable amounts of extractable organic matter. The overall conclusion from the samples analysed, is that it is unlikely that any thermogenic hydrocarbons originating from the GAB were encountered and these samples represent baseline geochemical conditions. Results from microbial studies show that densities of bacteria in the GAB are typical of pristine deep ocean environments (Techtmann et al., 2016). The study by Techtmann et al. (2016) concluded that if a hydrocarbon release occurred in the GAB, it would be expected that the same groups of bacteria would respond as they did in the Deepwater Horizon incident. Surveys for asphaltite and waxy bitumens occurred along the coastline during 2014 and 2015. While the source of asphaltite has not been determined from this study, it is thought to originate from seeps from exposed tar mats within the offshore Ceduna or Morum subbasins, and is a minor contributor to the natural hydrocarbon loading of SA beaches (McKirdy et al., 2015). Waxy bitumens originating from Indonesian waters are the most prevalent bitumen stranding on SA beaches (McKirdy et al., 2015). 4.2 Ecological Receptors 4.2.1 Shoreline BP conducted shoreline sensitivity mapping along the SA coastline and southern WA coastline. Sensitivity mapping assists in the development of oil spill response plans, especially in the identification of sensitive receptors. The Environmental Sensitivity Index (ESI) shoreline classification system, as outlined in ESI guidelines (NOAA, 2002; IPIECA/IMO/OGP, 2011) were applied to shoreline habitats; biological and ecological resources; and socio-economic resources. All three factors: shoreline type, ecological receptor, and social value, were then combined to produce a cumulative sensitivity map to understand the comparative overall vulnerability of the shoreline. Shoreline types (and sensitivity) identified as present along the AMBA coast include: • Rocky shores and scarps (ESI 1A, 1C, 2A, 2B); low sensitivity • Sandy beaches (ESI 3A, 3B, 4, 5); low to medium sensitivity • Gravel beaches (ES 6A, 6B); medium sensitivity • Tidal flats (ESI 7, 9A); high to very high sensitivity • Mangroves and saltmarshes (ESI 10A, 10B); very high sensitivity • Infrastructure (ESI 1B, 8B, 8C); low to high sensitivity. The most common shoreline types within the AMBA are rocky shores and scarps, and sandy beaches. Page 31 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 4.2.2 Marine and Coastal Waters 4.2.2.1 Seagrass Seagrass typically occurs in shallow subtidal and intertidal environments of estuaries, sheltered bays or coasts where ocean currents and wave action are not as great. Seagrass distribution in the GAB is patchy and limited by exposure to swell. Other known locations of seagrass meadows include Jervis Bay and Botany Bay in NSW, Norfolk Bay and Pittwater in south-eastern Tasmania, and Corner Inlet, Port Phillip Bay and Western Port Bay in Victoria. The ‘Posidonia australis seagrass meadows of the Manning-Hawkesbury ecoregion’ is listed as an ‘endangered’ TEC, and is protected under the EPBC Act. The ecological community occurs mostly within the sheltered environments of permanently open estuaries along the warm temperate NSW coastline, from Wallis Lake (32°S) to Port Hacking (34°S). The TEC typically occurs in subtidal waters at depths ranging less than 1m to 10 m on sand and silty mud substrate. 4.2.2.2 Macroalgae Macroalgae along the southwestern and southern Australian coasts are diverse, with 62% reported as endemic to the south coast (DEWR, 2006). They are generally limited to growing on intertidal and subtidal rocky substrata (generally shallow waters up to 10 m depth), but also float on the ocean surface when they become unattached. Cold temperate macroalgae species dominate the GAB, with the distribution of tropical species being patchy and limited to sheltered bays and other habitats where water temperatures are warmer than the open ocean (DEWR, 2006). The canopy layers of the southern coast are dominated by brown algae, with Ecklonia radiata (a brown algae) forming a large proportion of the biomass. Ecklonia is common on exposed oceanic shores of SA (DEWR, 2006). Cystophora species are abundant in higher energy environments of the SA coast, while Sargassum species (brown algae) is more dominant in areas of reduced water movement (DEWR, 2006). The ‘Giant Kelp Marine Forests of South East Australia’ is listed as an ‘endangered’ TEC, and is protected under the EPBC Act. Giant kelp (Macrocystis pyrifera) is a large brown algae that grows on rocky reefs and is the foundation of this TEC. The TEC is defined as ‘giant kelp growing typically at depths greater than 8 m below sea level and forming a closed or semi-closed surface or sub-surface canopy’ (DoE, 2012). The kelp species itself is not protected. The largest extent of this TEC is in Tasmanian coastal waters; however some patches may also be found in Victoria and southeast SA (DSEWPC, 2012f). 4.2.2.3 Coral Some coral species are known to occur in the GAB, including three reef-building species in shallow waters and more than 50 non-reef-building species in waters up to 900 m deep from the phylum Cnidaria (DEH, 2005c). Reef-forming stony corals from the phylum Bryozoa have been collected from seamounts in the western GAB. A shallow reef extensively covered by coral has also been identified at the Kent Group Marine Protected Area near Flinders Island off the north-east of Tasmania. 4.2.2.4 Benthic Invertebrates DSEWPC (2012a) reports that benthic invertebrate communities inhabiting the eastern shelf of the GAB, particularly the inner shelf (i.e., northeast of the well locations), have been identified as one of the world’s most diverse soft sediment ecosystems (798 species have Page 32 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview been identified so far, including 360 species of sponges, 138 ascidians [sea squirts] and 93 bryozoans [lace corals]). The species that make up these communities decrease in abundance moving away from the coast. On the inner shelf of the more eastern parts of the GAB Shelf Transition bioregion, marine plant communities are more diverse, particularly in the lee of islands in the Nuyts Archipelago, where significant beds of seagrass are found (DEWHA, 2007). Currie et al (2008) note that vast expanses of bare sand dominate the bedforms in the Benthic Protection Zone of the former GAB Marine Park (now Multiple Use and Special Purpose zones within the GAB CMR), comprising between 93% and 99% of the seafloor cover at each of the seven sites within the park re-surveyed in 2006 (as follow up to a 2002 quantitative survey undertaken by SARDI Aquatic Sciences). While epifauna may be absent from these areas of bare sand, it is known that a high diversity of infauna organisms (fauna living between sand grains in the top few centimetres of the seabed) exists (Currie et al., 2008), including polychaete worms, bivalves, amphipods and decapods (Rogers et al., 2013). Sampling of infauna undertaken in 2013 as part of the GAB Research Program has found that the total species richness is not correlated with depth, though species composition changes were partially explained by changes in depth (Williams, 2015). The survey identified 128 distinct species across 72 families in eight major taxonomic groups. Roughly half of all confidently identifiable species were new to science and suggest a new and endemic fauna in the region. However, the large number of new species uncovered was unsurprising, given there have been relatively few surveys of deep-water infauna in Australia. It was noted that the proportion of undescribed species in the deep waters of the GAB was consistent with data from similar depths along the WA shelf (Poore et al., 2014); suggesting these species may be abundant and wide-spread throughout similar depth environments of the GAB. The overall structure of the macrofaunal assemblage was largely consistent with previous deep-water sampling from Australia (Poore et al., 2014), with composition and diversity dominated by large numbers of polychaetes and infaunal crustaceans, but generally low abundance. Invertebrate fauna comprises predominantly Crustacea and Annelida. 4.2.2.5 Shorebirds and Seabirds There are 104 listed marine bird species or species habitat, plus two listed threatened species (i.e. not specifically listed as a ‘marine bird’) that may potentially occur within the AMBA. Thirty-four of these species are classified as threatened species, five of which are listed as ‘critically endangered’. Sixty-four of the species are also identified as being migratory (28 marine, 36 wetland). Twenty-seven species also have BIAs that intersect with the AMBA. a. Albatross The 17 threatened and migratory albatross species listed as potentially occurring within the AMBA have a widespread distribution throughout the southern hemisphere. Albatrosses nest on isolated islands and forage across the ocean for food, usually in offshore areas during winter, and particularly along the continental shelf edge and open waters (DSEWPC, 2012e). All the listed albatross species are known to forage in Australian waters, with cephalopods, fish and crustaceans forming the basis of their diet, caught by diving (DSEWPC, 2012e). The National Conservation Values Atlas (DoE, 2015g) indicates that BIAs for a number of albatross species intersect with the AMBA. No breeding colonies or nesting areas for the listed albatross species are located within the vicinity of the well locations, or AMBA (DSEWPC, 2012e). Page 33 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview b. Petrels The eight threatened and migratory petrel species listed as potentially occurring within the AMBA are widely distributed throughout the southern hemisphere. They nest on isolated islands and typically breed on sub-Antarctic and Antarctic islands (i.e. outside of the AMBA). DSEWPC (2012e) reports that the Great-winged petrel (Pterodroma macroptera) is the only one that breeds in the South-west Marine Region, with an estimated 33,000 breeding pairs on the islands of the Recherche Archipelago. The National Conservation Values Atlas (DoE, 2015g) indicates that BIAs for a number of petrel species intersect with the AMBA, but are unlikely to be encountered in the vicinity of the well locations. c. Shearwaters There are six shearwater species (of which five are migratory) listed as potentially occurring within the AMBA. Shearwaters are oceanic species that may occur along throughout the AMBA, but generally only during the breeding season, where they favour remote islands or headlands (Flegg, 2002). Shearwaters are known to forage for krill, fish and squid. The National Conservation Values Atlas (DoE, 2015g) indicates that BIAs for a number of shearwater species intersect with the AMBA. The short-tailed shearwater foraging BIA is the only one to intersect with the well locations. d. Terns There are eight tern species (of which one is threatened, and four migratory) listed as potentially occurring within the AMBA. Many of the tern species are widespread and occupy beach, wetland, grassland and beach habitats. Terns rarely swim; they hunt for prey in flight, dipping to the water surface or plunge-diving for prey (Flegg, 2002) usually within sight of land, for fish, squid, jellyfish and sometimes crustaceans (DEHWA, 2007). The National Conservation Values Atlas (DoE, 2015g) indicates that BIAs for a number of tern species intersect with the AMBA; none intersect with the well locations. e. Gulls The Pacific, Silver, and Kelp gulls are known to breed within the AMBA. Silver gulls breed on many islands throughout the AMBA, however larger colonies nest adjacent to urban areas (DEWR, 2006). Pacific gulls remain the dominant large gull throughout the South-west Marine Region, breeding in small numbers (usually 1-2 pairs/island), with strongholds at the Recherche Archipelago and The Brothers Islands in Coffin Bay (DEWR, 2006). The National Conservation Values Atlas (DoE, 2015g) indicates that a BIA exists within the AMBA for the Pacific gull (Larus pacificus). f. Australasian Gannet The Australasian gannet (Morus serrator) generally feeds over the continental shelf or inshore waters. Its diet is comprised mainly of pelagic fish, and prey is caught mainly by plunge-diving, but it is also seen regularly attending trawlers. Breeding is highly seasonal (October–May), nesting on the ground in small but dense colonies (DoE, 2015a). The Southeast Marine Region supports breeding sites for approximately 20% of the global population and all of the Australian breeding population (DoE, 2015a). The National Conservation Values Atlas (DoE, 2015g) indicates that a BIA intersects with the AMBA for this species. g. Black-faced Cormorant The Black-faced cormorant (Phalocrocorax fuscescens) is endemic to southern Australia (DoE, 2015a). Flegg (2002) states that this species is confined to the southeastern and southwestern seaboards, where it favours rocky coast, is sedentary and locally common. Page 34 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview This species feeds in coastal waters, sometimes in sheltered places such as bays and islets and can be found entering rivers along the coast. Its diet is comprised of a variety of fish which it catches mainly by pursuit-diving, sometimes in flocks of up to several thousand individuals. There are 40 significant breeding sites (more than 10 breeding pairs) known for the species, recognised as BIAs. Breeding usually occurs on rocky islands, but also on stacks, slopes and sea cliffs in colonies of up to 2500 individuals (DoE, 2015a). h. Little Penguin Little penguins (Eudyptula minor) are the smallest species of penguin in the world and are permanent residents on a number of inshore and offshore islands. The Australian population is large but not thought to exceed 1 million birds (DoE, 2015a). Bass Strait has the largest proportion (ca. 60%) of the known breeding colonies in Australia; but breeding is also known to occur in SA (e.g. Pearson Island holds largest breeding population in SA), and in WA (e.g. at Recherche Archipelago). Individuals exhibit strong site fidelity, returning to the same breeding colony each year to breed in the winter and spring months (Gillanders et al., 2013). The National Conservation Values Atlas (DoE, 2015g) indicates that a BIAs for foraging and breeding exist within the AMBA for the Little Penguin. 4.2.2.6 Marine Reptiles Six species of marine reptile are listed under the EPBC Act as potentially occurring in the AMBA: • Loggerhead turtle • Green turtle • Leatherback turtle • Hawksbill turtle • Flatback turtle • Yellow-bellied seasnake All five marine turtle species are classified as ‘threatened’ and ‘migratory’; however, there is no defined BIA (foraging, inter-nesting, or nesting) for any of these turtle species within the AMBA. 4.2.2.7 a. Plankton Phytoplankton Phytoplankton (photosynthetic microalgae) comprise 13 divisions of mainly microscopic algae, including diatoms, dinoflagellates, gold-brown flagellates, green flagellates and cyanobacteria and prochlorophytes (McLeay et al., 2003). The GAB slope and offshore waters were sampled during the BP supported RV Southern Surveyor voyage in April 2013. Highest concentrations of Chl a occurred at depths of 60m (0.43 ug/L) at the 200m and 400m isobaths. Chl a declined with distance from the shelf edge to low concentrations (0.19 ug/L) at stations at the 1000m and 2000m isobaths. Dinoflagellates generally dominated the phytoplankton community (typically >40%) followed by flagellates. b. Zooplankton Zooplankton is the faunal component of plankton, comprised of small crustaceans (such as krill) and fish larvae that feed on zooplankton. Sampling during April 2013 collected a range of crustaceans, siphonophores, jellyfish and larval fish (Williams et al., 2013). The surface Page 35 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview samples showed that copepods were the dominant taxonomic group in the eastern GAB and that copepods and Appendicularia dominate in shelf and offshore waters in the central GAB (Kloser et al, 2015). 4.2.2.8 Fish – Demersal Bony demersal fish are those species living on or near the seabed, and can occur in all water depths. Inshore, these species occur in habitats ranging from estuaries, seagrass beds, reef and muddy and sandy seabeds (DEWR, 2006). Some inshore demersal fishes are completely habitat dependent, and do not move away from their “home” reef, seagrass bed or sand patch. Examples of demersal fish taxa include: • Inshore: King George whiting (Sillaginodes punctatus), pink snapper (Pagrus auratus), ocean leatherjacket (Nelusetta ayraudi), spangled emperor (Lethrinus nebulosus), western smooth boxfish (Anoplocapros amygdaloides), rock ling (Genypterus tigerinus) • Continental shelf: Labridae (wrasses), Syngnathidae (seahorses, pipe fish), Gobiesocidae (clingfishes), Gobiidae (gobies), Clinidae (weedfish) and Monocanthidae (leatherjacket, puffer fish). Deeper waters are dominated by the Moridae (cods, moras), Antennariidae (frogfish), Macrouridae (grenadiers), Scorpaenidae (scorpion fish, lion fish) and Trachichthyidae (roughy) families • Continental slope: Macrouridae (whiptails), Squalidae (dogfish sharks), Alepocephalidae (slickheads), Ophidiidae (ling), Moridae, Triglidae (gunard), Scyliorhinidae (carsharks) and Scorpaenidae. 4.2.2.9 Fish – Pelagic There are 61 fish species (48 of which are syngnathids) recorded under the EPBC Act as potentially occurring within the AMBA. Two shark species, grey nurse and great white, also have BIAs that intersect with the AMBA. McLeay et al (2003) report that three quarters of the 3,400 marine fish species in Australian waters occur on the shelf and in nearshore waters, with about 85% of southern Australia’s fishes being endemic to the region. Many of the fish species in the GAB are inshore inhabitants with permanent resident populations. However, there are also some regular migratory visitors such as the Australian salmon (Arripis truttaceus) and occasional oceanic vagrants such as oceanic sunfish (Mola sp.), basking shark (Cetorhinus maximus), black marlin (Makaira indica), and the lizardfish (Saurida undosquamis) (DEH, 2005c). In deeper waters ranging from 400-1,200 m, surveys have recorded 166 species of deep-sea fish (DEH, 2005c). a. Grey nurse shark The grey nurse shark (Carcharias taurus), listed as a ‘vulnerable’ species under the EPBC Act, has a broad inshore distribution, primarily in sub-tropical to cool temperate waters (DSEWPC, 2012b; DoE, 2014b). The west coast population of the species is predominantly found in the southwest coastal waters of WA (east to Cocklebiddy and north to the North West Shelf), preferring water depths from the surf zone down to 190 m (DoE, 2014a). The Grey Nurse Shark (east coast population) has been regularly reported from southern Queensland and around south-east Australia, although the species is uncommon in Victorian, South Australian and Tasmanian waters, and has not been found in the GAB. A distribution BIA has extends along the NSW coast (and therefore intersecting the AMBA) for this species. Page 36 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview b. Great white shark The great white shark (Carcharodon carcharias), listed as a ‘vulnerable’ and ‘migratory’ species under the EPBC Act, is widely but sparsely distributed throughout temperate and sub-tropical regions of the world (Norman, 2005; Bruce et al., 2005). It is primarily found in the coastal and offshore areas of the continental and insular shelves and offshore continental islands (Cavanagh et al., 2003; Bruce et al., 2005; DSEWPC, 2013a). The Neptune Islands, Dangerous Reef, Fowlers Bay and the Pages (near Kangaroo Island) are areas of known great white shark encounters (DEWHA, 2007; Cavanaugh et al., 2003), with sharks present throughout the year. The greatest numbers are observed during winter to spring when females are more prevalent (Rogers et al., 2013). In the GAB, great white sharks are recorded from close inshore rocky reefs, surf beaches and shallow coastal bays to the outer continental shelf and slope (Rogers et al., 2013), with the drilling area being 133 km south of the nearest BIA (foraging) for the species. c. Conservation-dependent fish species In addition to the threatened species listed under the EPBC Act Protected Matters Report, all seven of the ‘conservation-dependent’ fish species listed under the EPBC Act are known to occur in the AMBA. These are: • Harrisson’s dogfish (Centrophorus harrissoni) • Southern dogfish (Centrophorus zeehaani) • School shark (Galeorhinus galeus) • Orange roughy (Hoplostethus atlanticus) • Eastern gemfish (Rexea solandri) (eastern Australian population) • Blue warehou (Seriolla brama); and • Southern bluefin tuna (SBT) (Thunnus maccoyii). Note that these species are listed as ‘conservation-dependent’ under the EPBC Act due to overfishing (DSEWPC, 2012a). 4.2.2.10 Marine Mammals – Pinnipeds There are five pinniped species recorded under the EPBC Act as potentially occurring within the AMBA: • New Zealand fur-seal • Australian fur-seal • Dugong • Southern elephant seal • Australian sea lion The Australian sea lion also has a BIA intersecting with the AMBA. The distribution of the species extends from the Houtman Abrolhos Islands on the WA west coast through the Pages Islands to the east of Kangaroo Island in SA (DSEWPC, 2013b). The species generally hauls out (rests) and breeds on rocks and sandy beaches on sheltered sides of islands, although some small colonies exist on the mainland. Only eight sites produce >100 pups per season: North and South Page Islands, Seal Bay on Kangaroo Island, Dangerous Reef (supports the third-largest breeding population in the world), Lewis Island, West Waldegrave Page 37 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Island, Olive Island and Purdie Island (DSEWPC, 2012g, Rogers et al., 2013; Edyvane, 1999). All eight of these large breeding colonies are within the AMBA. Female Australian sea lions travel up to 130 km on foraging trips and dive to depths of 130 m, while males travel up to 300 km and dive to at least 200 m (Rogers et al., 2013). This species is unlikely to be encountered in the vicinity of the well locations, but may occur within the AMBA. No Australian sea lions were observed during the 2011-12 Ceduna 3D seismic survey. 4.2.2.11 Marine Mammals – Cetaceans There are 29 whale species and 12 dolphin species recorded under the EPBC Act as potentially occurring within the AMBA; four of these also have BIAs intersecting with the AMBA: • Blue whale • Southern right whale • Humpback whale • Sperm whale. a. Blue whale There are two recognized subspecies of blue whale in Australian waters; the Antarctic blue whale and the pygmy blue whale (DSEWPC, 2012c). Both subspecies are found in all Australian waters, with the Antarctic blue whale primarily found in waters south of 60°S and pygmy blues found in waters north of 55°S (DSEWPC, 2012c). Both species feed on krill, with the nearest foraging BIA located approximately 20 km north of the Winham-1 well location, and along the shelf break to the west and south of Kangaroo Island, extending northwest along the 200 m isobaths (Morrice et al., 2004; DEWHA, 2007; DSEWPC, 2012c). During the 2011-12 Ceduna 3D seismic survey, a total of 12 blue whales were observed; 10 within the vicinity of the well locations and two during transit. Ten of these sightings occurred during November. Pygmy blue whales were also detected at the Head of Bight by sound loggers deployed from November 2011 to June 2012, with no detection of pygmy blue whales from late January to May 2012 at the Head of Bight (McCauley et al., 2012). An offshore aerial cetacean survey (between 100 m and 200 m depth contours) was undertaken between southwest Kangaroo Island to south of the Head of the Bight, during December 2015 and April 2016 (Gill, P; 2016); this survey recorded six Blue (most likely pygmy) whales. b. Southern right whale The Southern right whale (SRW) (Eubalaena australis), listed as ‘endangered’ and ‘migratory’ under the EPBC Act, is typically distributed between 20°S and 60°S in the southern hemisphere and is present off the Australian coast between May and November (primarily southwest WA and far west SA). The National Conservation Values Atlas recognizes a BIA for the SRW approximately 230 km north of the well locations. The closest aggregation area to the well locations is the Head of Bight, approximately 270 km to the north. This is a significant aggregation area, where up to half the population gathers between May and November to calve (DEH, 2006; DEWHA, 2007), usually in waters less than 10 m (DSEWPC, 2012d) to 20 m deep (Charlton et al., 2014). Twilight Bay, Fowlers Bay and Encounter Bay are other known calving areas in the region (DEWHA, 2007). Female- Page 38 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview calf pairs generally stay within the calving grounds for 2-3 months (DSEWPC, 2012d), peaking from mid to late July to mid-late August at the Head of Bight. Aerial surveys for inshore cetaceans undertaken across coastal waters (<100 m water depth) of the GAB between Ceduna and Coffin Bay during July and August 2013 detected seven SRW (Bilgmann et al., 2014). No SRW were observed in the vicinity of the well locations during the Ceduna 3D seismic survey undertaken between November 2011 and May 2012. c. Humpback whale The humpback whale (Megaptera novaeangliae), listed as ‘vulnerable’ and ‘migratory’ under the EPBC Act, has a worldwide distribution. Humpback whales are found in Australian offshore and Antarctic waters. They primarily feed on krill in Antarctic waters south of 55°S. The nearest known humpback whale resting area is in Flinders Bay on the south coast of WA, approximately 1,400 km west of the well locations. Humpback whales undertake annual migrations between their summer feeding grounds in Antarctic waters to their breeding and calving grounds in sub-tropical and tropical inshore waters (Jenner et al., 2001). Humpback whales migrate up the eastern and western coasts of Australia and do not often travel into the GAB (DEH, 2005b; Vang, 2002). The northern migration of the southeast coast starts in April and May, while on the west coast, it occurs towards early June. The west coast southern migration then peaks around November and December, while the east coast southern migration peaks in October and November. Small numbers of humpback whales have been observed at the Head of Bight and near Kangaroo Island in early winter. Aerial surveys for inshore cetaceans undertaken across coastal waters (<100 m water depth) of the GAB between Ceduna and Coffin Bay during July and August 2013 detected three humpback whales (Bilgmann et al., 2014). No humpback whales were observed during the 2011-12 Ceduna 3D seismic survey nor were they detected by sound loggers deployed from November 2011 to June 2012 at three locations in the GAB (McCauley et al., 2012). d. Sperm Whale Sperm whales (Physeter macrocephalus), listed as migratory under the EPBC Act, are found in waters from the Arctic to the tropics, usually in deep offshore waters. Male sperm whales are found in higher latitudes and migrate towards lower latitudes for mating during the summer months. Females, calves and juveniles remain in the warmer tropical and subtropical waters of the Indian Ocean all year round (DEWHA, 2007). Females and juveniles appear to move between the eastern Indian Ocean and Tasman Sea down to 55°S while mature males migrate seasonally between Antarctic waters and equatorial breeding grounds. DSWEPC (2012) indicates that in the South-west Marine Region, a BIA for sperm whale foraging is concentrated along the shelf break of the GAB and waters south of Kangaroo Island. The BIA overlaps with the Whinham-1 well location. During the 2011-12 Ceduna 3D seismic survey, a total of 25 sperm whales were observed during December, April and May. No sperm whale sound signals were detected by sound loggers deployed from November 2011 to June 2012 at three locations in the GAB (McCauley et al., 2012). An offshore aerial cetacean survey (between 100 m and 200 m depth contours) was undertaken between southwest Kangaroo Island to south of the Head Page 39 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview of the Bight, during December 2015 and April 2016 (Gill, P; 2016); this survey recorded three sperm whales. 4.3 Social Values 4.3.1 Marine Bioregions The AMBA intersects three marine bioregions: south-west, south-east and temperate east. Fifteen of the key ecological features identified within these marine bioregions intersect with the AMBA (Figure 2): • Albany Canyons group and adjacent shelf break • The Diamantina Fracture Zone • Commonwealth Marine Environment surrounding the Recherche Archipelago • Ancient coastline at 90–120 m depth • Kangaroo Island Pool, canyons and adjacent shelf break, and Eyre Peninsula upwellings • Small pelagic fish • Benthic invertebrate communities of the eastern GAB • Bonney Coast Upwelling • East Tasmania subtropical convergence zone • Bass Cascade • Upwelling east of Eden • Big Horseshoe Canyon • West Tasmania Canyons • Seamounts south and east of Tasmania • Shelf rocky reefs and hard substrates • Shelf rocky reefs • Canyons on the eastern continental slope • Tasman front and eddy field Page 40 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Note that the following KEFS: ‘Small pelagic fish’, ‘Benthic invertebrate communities of the GAB’, ‘East Tasmania subtropical convergence zone’, ‘Bass Cascade’, and ‘Shelf rocky reefs and hard substrates’, are not spatially defined. Figure 2: Key Ecological Features present within the AMBA 4.3.2 Offshore Protected Areas 4.3.2.1 Commonwealth Marine Reserves The Australian Government has established numerous CMRs around Australia under the EPBC Act; 23 of which occur within the AMBA (Figure 3). Page 41 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Figure 3: CMRs within the AMBA Both Stromlo-1 and Whinham-1 wells are located within the GAB CMR. The GAB CMR was originally declared in 1998, and extended in November 2012, encompassing the former GAB Marine Park (GABMP) (Commonwealth waters). A management plan for the new Commonwealth marine reserves declared for the southwest Australian region is not yet available, due to the CMR Review. However, the Draft South-west Commonwealth Marine Reserves Network Management Plan 2014-24 (Director of National Parks, 2013) was released in 2013 and information from this plan, and the superseded GAB Marine Park Management Plan (2005-12) (DEH, 2005a), has been used in this EP in the absence of a final plan for the reserve. The ‘major conservation values’ identified for the GAB CMR (Director of National Parks, 2013) are: • Important foraging areas for the threatened Australian sea lion and great white shark • Important foraging areas for the migratory sperm whale and short-tailed shearwater; • Provision of globally important seasonal calving habitat for the SRW; • Examples of central and western ecosystems of the GAB Shelf Transition and the eastern-most ecosystems of the Southern Province; • Presence of three KEFs: − Ancient coastline 90-120 m (high productivity zone). − Benthic invertebrate communities of the eastern GAB (high species diversity). − Areas important for pelagic fish. Page 42 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 4.3.2.2 State Marine Parks and Reserves There are numerous state marine parks or reserves within WA (1), SA (19), Victoria (30), NSW (13) and Tasmania (6) that intersect with the AMBA. All of the state marine parks and reserves boundaries are distant to the well locations. 4.3.3 Onshore Protected Areas 4.3.3.1 Wetlands of International Importance There are eleven Ramsar wetlands that have coastal boundaries intersecting the AMBA: • Corner Inlet • East coast cape barren island lagoons • Flood Plain Lower Ringarooma River • Gippsland Lakes • Lake Gore • Lavinia • Logan Lagoon • Piccaninnie Ponds Karst Wetlands • Port Phillip Bay (Western Shoreline) and Bellarine Peninsula • The Coorong, and lakes Alexandrina and Albert wetland • Western Port The closest wetland to the drilling location is the Coorong, and lakes Alexandrina and Albert wetland. 4.3.3.2 Wetlands of National Importance There are 59 ‘marine and coastal zone’ nationally important wetlands within the AMBA (11 in SA, 43 in Tasmania, and 5 in NSW). 4.3.3.3 Parks and Reserves Numerous onshore protected areas (e.g., National Parks, Nature Reserves, Conservation Parks, Conservation Reserves, Wilderness Protection Areas and Aquatic Reserves) occur along the coast of the AMBA. Although located wholly or partly on the coast, these parks are terrestrial by nature, usually extending to the high or low water mark of the reserve. 4.3.4 Coastal Settlements At its nearest point, the well locations are located approximately 260 km south of the Australian mainland. This part of the mainland is dominated by the Nullarbor Plain, with very few populated settlements. The economy of this stretch of the Nullarbor Plain is based largely on sheep grazing of native Acacia, mallee woodlands, bluebush and saltbush, and the supply of accommodation (motel, caravan and camping), fuel and other services to highway travellers. Much of the Nullarbor remains undeveloped; pastoral leaseholds for sheep grazing cover about one-third of the region, mainly near the coast of WA, but pastoralism is limited by lack of bore water. Ceduna and Port Lincoln are the largest towns in the region. Ceduna’s economy is centred on crop and sheep farming, tourism, fishing and port activities that ship salt, gypsum and Page 43 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview heavy mineral concentrate from mines located to its north (the Thevenard Port is located 3 km east of the town). Aquaculture (oyster farming) in Denial Bay and Smoky Bay are also important industries for the area (District Council of Ceduna, 2012). Port Lincoln is well regarded for its tuna fishing. Like Ceduna, its economy is based on crop, sheep and beef farming, as well as tuna, prawn, abalone and scale fishing and shark cage diving). 4.3.5 Commercial Fishing and Aquaculture 4.3.5.1 Commonwealth-managed Fisheries Commonwealth fisheries are managed by AFMA, with fisheries operating within approximately 3 nm to 200 nm offshore (the extent of the Australian Fishing Zone, AFZ). There are eight commercial fisheries that intersect with the AMBA: • Bass Strait Central Zone Scallop • Eastern Tuna and Billfish Fishery • Skipjack Tuna Fishery • Small Pelagic Fishery • Southern and Easter Scalefish and Shark Fishery • Southern Bluefin Tuna Fishery • Southern Squid Jig Fishery • Western Tuna and Billfish Fishery With the exception of the Bass Strait Central Zone Scallop, and Eastern Tuna and Billfish Fisheries, all these also intersect with the well locations. The value of production of Commonwealth fisheries was $320 million in 2010-11, contributing 14% of the gross value of Australia’s total fisheries production (AFMA, 2014). 4.3.5.2 State-managed Fisheries A number of state managed fisheries occur in WA and SA, and intersect with the AMBA. State-managed fisheries in SA are managed by PIRSA under the Fisheries Management Act 2007 (SA), associated regulations and management plans. PIRSA reports that the 10 wildcatch commercial fisheries contribute $197 million to SA’s total seafood production value (EconSearch, 2014). In WA, state-managed fisheries are managed by the Department of Fisheries (DoF) under the Fish Resources Management Act 1994 (WA), associated regulations and management plans. In 2010, commercial fishing (including pearling and aquaculture) contributed an estimated $818 million to the WA economy (DoF, 2012). All of these state-managed fisheries are restricted to shallow waters along the coast that do not occur near the well locations. In addition, Victoria, Tasmania and NSW have various state managed fisheries which intersect the AMBA although at a much lesser probability and exposure level. 4.3.6 Recreational Fishing The majority of recreational fishing in the GAB (and elsewhere along the southern coastline of Australia) is based around the coast and shallow waters, using line fishing methods from the beach and from vessels, with the most commonly captured species including whiting (Sillaginidae), trevally (Pseudocaranx spp.), black bream, and WA salmon. Recreational abalone diving on the WA south coast is popular, as is shark fishing (Fletcher and Santoro, Page 44 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 2013). There is no recreational fishing known to occur in the vicinity of the well locations given their distance offshore. 4.3.7 Commercial Shipping Shipping activity in the vicinity of the well locations is relatively low, with the main shipping route located to the south of the well locations. Smaller numbers of vessels travel between Thevenard Port to the west and south towards Port Lincoln and Victoria; these vessels may pass through in the vicinity of the well locations. 4.3.8 Tourism and Recreation There are no tourism or recreation activities recorded within the vicinity of the well locations. Tourism activities associated with the coastal regions are varied and include: marine mammal watching, shark cage diving, fishing, camping and surfing. 4.3.9 Cultural Heritage 4.3.9.1 Listed Heritage Places There are no World Heritage, or Commonwealth Heritage places located within or immediately adjacent to the coast of the AMBA (DoE, 2015b; DoE, 2015c). There are four ‘historic’ National Heritage listed places (DoE 2015d): • Bondi Beach (NSW) • Kurnell Peninsula Headland (NSW) • North Head (NSW) • Recherche Bay (North East Peninsula) Area (TAS) 4.3.9.2 Aboriginal Heritage Many Aboriginal and Torres Strait Islander peoples have a close, long-standing relationship with coastal and marine environments and continue to rely on these environments and resources for their cultural identity, health and wellbeing, as well as their domestic and commercial economies (DSEWPC, 2012a). Native Title claimant applications cover large areas of Australia coast (including some state waters), and are therefore intersected by the AMBA. None of the claimant applications that extend into state waters have been determined yet. No Native Title claims extend into Commonwealth waters (NNTT, 2015). 4.3.9.3 Shipwrecks The Australian Shipwreck Database (DoE, 2015e) lists numerous historic shipwrecks occurring within the AMBA, though the majority of these are located inshore of the mainland or outlying islands. For example, there are 19 ships’ graveyards located in SA waters, all of these located within the two gulfs, except for one at Goat Island near Ceduna (the Eleni K in 11-13 m of water) and two on the southeast tip of Kangaroo Island, these being the Pam and Quorna that lie in 50 m of water (DEWNR, 2015). Shipwrecks in Commonwealth waters that are 75 years or older are protected under the Historic Shipwrecks Act 1976 (Cth). There are only a small number of historic shipwrecks located in Commonwealth waters, with none around the well locations, but some (5) are recorded within the AMBA (DoE, 2015f). Page 45 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 4.3.10 Petroleum Exploration and Production Ten exploration permits exist within the GAB, and one exploration permit was released by the Commonwealth Government for bidding in the 2015 acreage release. 4.3.11 Defence Activities The Commonwealth Department of Defence training areas do not extend into any offshore waters of the GAB. The closest training areas to the well locations are in Investigator Strait (a body of water lying between the Yorke Peninsula and Kangaroo Island) used for military flying and firing, and waters off Port Lincoln used for firing and naval operations (DEWHA, 2007). 5 Environmental Impact and Risk Assessment BP manages, monitors and reports on the principal risks and uncertainties that can impact our ability to deliver our strategy of meeting the world’s energy needs responsibly, while creating long term shareholder value. Our management systems, organizational structures, processes, standards, code of conduct and behaviours together form a system of internal control that governs how we conduct the business of BP and manage associated risks. The risk assessment methodology applied during development of this EP allows for the identification of potential impacts from planned activities, as well as the risk and consequences of unplanned events. The purpose of risk assessment is to assist in making decisions, based on the outcomes of analysis, about the sorts of control measures required to reduce an impact or risk to ‘As Low As Reasonably Practicable’ (ALARP) and to acceptable levels. Planned and unplanned events are subject to this step in the same manner. The environmental risk assessment also outlines the controls, performance outcomes, performance standards and measurement criteria required to address the impacts and risks identified. The process by which the project identified and assessed impacts and risks associated with the project included the following steps: • Definition of activity; • Identification of potential impacts and risks; • Assessment of severity/consequence of these potential impacts and risks; • Identification of additional controls (ALARP decision context); • Determination of likelihood of consequence (with additional controls); • Determination of risk significance (which is a combination of severity/consequence and likelihood); and • Identification of mitigation and management measures. The potential impacts and risks associated with the petroleum activity are summarised in Table 4. Potential impacts and risks associated with accidental releases are addressed in Section 6, and potential impacts and risks associated with oil spill response activities are addressed in Section 7. Page 46 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Table 4 - Environmental risk assessment summary Hazard Known and Potential Impacts Key mitigation and management measures Risk Conseqence Likelihood • The support vessels will implement the Australian Guidelines for Whale and Dolphin Watching (2005) for sea-faring activities while in the PSZ. • Vessel masters briefed on caution and ‘no approach zones’. • Any collisions with cetaceans will be reported to the DoE. Undetectable Unlikely / Not or limited infrequent Significant • Exclusion of commercial vessels to areas around the well location. • Damage to fishing equipment. • Loss of commercial fish catches. • Sailing Plan / Notice to Mariners provided to government agencies. • BP ongoing stakeholder consultation. Undetectable Unlikely / Not or limited infrequent Significant Introduction of a marine pest • Impacts to seabed habitat and marine ecosystems due to out competing native species. • The MODU and support vessels will be cleared to enter Australian waters by the Australian Quarantine Inspection Service (AQIS). • Ballast water management plan and ballast water record book will be in place and maintained. • The MODU and support vessels will possess valid International Anti-fouling System Certificates. Seabed disturbance • Smothering and alteration of benthic habitat. • Localised and temporary increase in turbidity near the seabed. • Transponders and weights will be retrieved at the completion of drilling each well. significance Petroleum Activity Collision with cetaceans Interference with other marine users • Cetacean injury or death caused by vessel strike. degradation local degradation Moderate Unlikely / Not degradation infrequent Significant Undetectable Moderate Minor or limited probability Significance local / frequency degradation Page 47 of 82 BP Developments Australia Pty Ltd local Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Hazard Underwater sound Light emissions Atmospheric Known and Potential Impacts Key mitigation and management measures • Localised and temporary behavioural disturbance. • Auditory impairment, Permanent Threshold Shift (PTS). • Mortality. • Vertical seismic profiling (VSP) crew aboard the MODU will be inducted into the EPBC Act Policy 2.1. • VSP operations will be conducted in accordance with Part A - EPBC Act Policy 2.1. • Several controls from Part B - EPBC Act Policy 2.1 will be implemented, specifically: o increased ‘low power zone’ of 2km will be implemented for Whinham-1 during VSP. o a PAM detection sensitivity study will be undertaken prior to VSP being conducted to determine the value of using PAM deployed from MODU. • MMOs will have access to infra-red binoculars to assist observations during VSP activities conducted during periods of low visibility • Cetaceans sighted during VSP will be reported to the DoE. • MODU and support vessel engines and thrusters will be maintained as per planned maintenance system (PMS) to ensure they are operating efficiently. • A sound measurement study will be conducted to verify the outcomes of the sound modelling study. Should the results of the sound measurement study suggest significantly higher sound levels than those predicted by the modelling, sound modelling will be repeated and basic sound level threshold analysis will be undertaken. Temporary and localised attraction of light-sensitive species, in turn affecting predator-prey dynamics. • Ensure the MODU and vessels are lit in accordance with maritime safety standards. • Chronic effects to sensitive receptors from localised and • Only low-sulphur marine diesel oil will be used • Fuel use will be measured, recorded and reported. Likelihood Risk significance Moderate Moderate Minor degradation probability Significance / frequency Undetectable High Minor or limited probability Significance High Minor local degradation Page 48 of 82 BP Developments Australia Pty Ltd Conseqence Rev: 0 Undetectable GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Hazard Risk Key mitigation and management measures Conseqence Likelihood temporary decrease in air quality from diesel combustion. • Contribution to global Greenhouse Gas (GHG) effect. • The MODU and support vessels will maintain a current International Air Pollution Prevention (IAPP) Certificate in accordance with MARPOL Annex VI, which certifies that measures to prevent ozone-depleting substance (ODS) emissions, and to reduce NOx, SOx and incineration emissions during the activity are in place • Combustion equipment on the MODU and support vessels will be maintained in accordance with the PMS to ensure they are operations to design specifications. • The MODU Heating, Venting and Air Conditioning system will be maintained in accordance with the PMS to prevent refrigerant gas leaks. or limited probability Significance Discharge of drilling cuttings and fluids • Increased turbidity of the water column. • Increased turbidity near the seabed (from resuspension). • Smothering of seabed habitat and fauna resulting in the alteration of seabed substrate. • Potential chemical toxicity and oxygen depletion impacts to fauna in the water column and sediment. • All drill fluids evaluated in accordance with BP’s Chemical Assessment Guideline and accepted prior to use. • Solids control equipment (shale shakers and centrifuge) will treat cuttings to a level of <6.9% ROC. • Drilling Fluid and Waste Management Program ensures volumes of SBM mixed align with program requirements, and fluids discharged overboard from mud tank cleaning will contain <1% by volume of oil in the fluid sample (<1% v/v). • Pre Spud and Post Drill ROV surveys will be undertaken to identify and if possible quantify cuttings deposition within the areas surrounding the well locations to determine the impact to seabed habitat and fauna. • Personnel will monitor the fluids and solids control equipment to ensure effectiveness is maintained. Moderate Moderate Minor degradation probability Significance Discharge of cement • Increased turbidity of the water column. • Smothering of benthic habitat and fauna resulting in the alteration of benthic • Evaluate all cementing products and additives in accordance with BP’s Chemical Assessment Guideline. • Cementing Program will be developed and implemented. • ROV surveys will be undertaken to confirm the extent emissions Known and Potential Impacts Page 49 of 82 BP Developments Australia Pty Ltd Rev: 0 significance local degradation / frequency Moderate degradation Low Minor Probability Significance / frequency GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Hazard Known and Potential Impacts substrate. • Potential toxicity impacts to fauna. Discharge of cooling and brine water Discharge of sewage and grey water and putrescible waste Discharge of deck drainage and bilge water Discharge of BOP Key mitigation and management measures Risk Conseqence Likelihood Undetectable Moderate Not or limited probability Significant local / frequency significance of impact from cementing activities. Impacts to fauna through: • Increased temperature. • Increased salinity. • Potential toxicity. • PMS records verify that the RO plant and cooling system are maintained to schedule • Changes to the water quality through nutrient enrichment and increased biological oxygen demand. • Impact to predator / prey dynamics. • A MARPOL-approved sewage treatment plant (STP) will be fitted to the MODU and support vessels. • The STPs will be maintained in accordance with the PMS to ensure they are not discharging untreated sewage. • The MODU and support vessels have a current International Sewage Pollution Prevention (ISPP). • All food waste is macerated to ≤25 mm in size prior to overboard discharge in accordance with Regulation 8 of MARPOL Annex V. • The macerators are maintained or replaced as per the PMS to ensure they are fully functional. Undetectable Moderate Not or limited probability Significant local / frequency • Acute toxicity to marine • Bilge water will be treated through an oily water system to remove hydrocarbons prior to overboard discharge (discharge water will not contain > 15 ppm hydrocarbons, in line with MARPOL Annex I). • Maintenance of the oily water system will be conducted in accordance with the PMS. • Any oily wastes transferred to shore will be recorded in the Oil Transfer Book • SMPEP response kits are available in relevant locations, are fully stocked and used in the event of a spill to deck to prevent or minimise discharge overboard. Undetectable Low Not or limited Probability Significant local / frequency • Evaluate BOP Fluid in accordance with BP’s Chemical Undetectable fauna. • Acute toxicity to marine degradation Page 50 of 82 BP Developments Australia Pty Ltd Rev: 0 degradation degradation Low Not GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Hazard Fluids Known and Potential Impacts fauna. Key mitigation and management measures Assessment Guideline. Conseqence Likelihood or limited Probability local / frequency degradation Page 51 of 82 BP Developments Australia Pty Ltd Rev: 0 Risk significance Significant GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 6 Environmental Impact and Risk Evaluation – Accidental Release BP uses a number of processes to identify and manage potential accidental events and uses company procedures to define emergency response and management strategies for its projects around the world. As part of its planning for drilling operations, the project has identified and defined potential accidental release events, including spill planning scenarios. Additionally, the project has identified potential response measures for the spill scenarios which have been detailed in operational plans that will be used by the project. This section is designed to provide an overview of BP’s approach to risk management and emergency response, including lessons which have been learned and applied since the DWH incident in 2010. This section also provides an overview of the potential accidental release events that could arrive during project activities, and includes an environmental assessment of these release events. 6.1 Risk Management within BP The barrier philosophy, shown below, underpins BP’s approach to risk management. Through this approach, it is possible to consider measures, or barriers, that are put in place to prevent hazards (i.e. something which has the potential to cause harm) from materialising into an adverse event. These are referred to as preventative barriers. Similarly, in the event that an adverse event does occur it is necessary to consider which measures, or barriers can be taken to minimise and mitigate any consequences. These are referred to mitigative barriers. Multiple mitigative and preventative barriers are put in place for each potential incident which could occur. Throughout the project planning and execution, the barriers are assessed for robustness and assurance is conducted to verify the performance of the barriers and to identify any potential areas for improvement. 6.2 Lessons from Deepwater Horizon On April 20, 2010, a well control event allowed hydrocarbons to escape from the Macondo well in the Gulf of Mexico onto the Transocean DWH MODU, resulting in explosion and fire on the MODU and the loss of 11 lives. BP Exploration and Production Inc. was the lease Page 52 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview operator of the well. Hydrocarbons flowed from the reservoir through the wellbore and the BOP for 87 days, causing a spill of national significance. In January 2015, the United States District Court for the Eastern District of Louisiana found that 3.19 million barrels of oil (MMbbl) were discharged into the Gulf of Mexico. A BP priority is to prevent any similar oil spill from taking place. BP’s 2010 internal investigation into the DWH incident, known as the Bly Report, concluded that no single cause was responsible for the incident. A complex, inter-linked series of mechanical failures, human judgments, engineering design, operational implementation and team interfaces (involving several companies including BP), contributed to the incident. BP’s internal investigation, which culminated in the Bly Report, involved a team of over 50 internal and external specialists from a variety of fields, including safety, operations, subsea, drilling, well control, cementing, well flow dynamic modelling, BOP systems, and process hazard analysis. Eight key findings relating to the causal chain of events were made, with 26 associated recommendations to enable the prevention of a similar accident and aimed at further reducing risk across BP’s global drilling activities. The eight key findings related to the cause of the DWH incident , as well as how these lessons have been applied to this project in order to prevent a reoccurrence of the DWH incident, are summarised below. Page 53 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Table 5 - Key Findings from the Deepwater Horizon Incident Relevant to this Project Finding Summary Description Investigation Conclusion Application to this Project There were weaknesses in the cement design and testing, quality assurance and risk assessment. BP’s Zonal Isolation Practice was updated and clarified, establishing clear requirements for annuar cement well barrier elements and verification of these barriers during well construction, temporary abandonment and permanent abandonment. BPs zonal isolation objectives, within the Practice, are designed to prevent unintended movement of fluids between distinct permeable zones (DPZ), flow to surface or seabed, development of sustained casing pressure (SCP) during well operations due to communications between a DPZ and the surface or seabed, and contamination of potable-water aquifers. Critical factor: Well integrity was not established, or failed 1. The annulus cement barrier did not isolate the hydrocarbons. The day before the accident, cement had been pumped down the production casing and up into the wellbore annulus to prevent hydrocarbons from entering the wellbore from the reservoir. The annulus cement that was placed across the main hydrocarbon zone was light, nitrified foam cement slurry. This annulus cement did not isolate the wellbore annulus from the hydrocarbon zone. BP’s established a comprehensive set of cementing documents to provide clear engineering guidance to BP Engineers when designing cement jobs to achieve zonal isolation requirements. BP established a global Cementing Engineering Team to enhance cementing discipline capability, to provide increased assurance of cement designs and to fulfil the cement job design review requirements outlined in the Zonal Isolation Practice. BP conducted a review of the quality of the services provided by all cementing service providers working with BP globally and new providers are reviewed before their services are contracted. BP provided leadership for a Work Group within the American Petroleum Institute (API) that updated the industry recommended practice for the preparation and testing of foamed cement slurries. Page 54 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 2. The shoe track barriers did not isolate the hydrocarbons. Having entered the wellbore annulus, hydrocarbons passed down the wellbore and entered the 9 ⅞” x 7” production casing through the shoe track, installed in the bottom of the casing. Flow entered into the casing rather than the casing annulus. For this to happen, both barriers in the shoe track must have failed to prevent hydrocarbon entry into the production casing. The first barrier was the cement in the shoe track, and the second was the float collar, a device at the top of the shoe track designed to prevent fluid ingress into the casing. Hydrocarbon ingress was through the shoe track, rather than through a failure in the production casing itself or up the wellbore annulus and through the casing hanger seal assembly. Potential failure modes were identified that could explain how the shore track cement and the float collar allowed hydrocarbon ingress into the production casing. BP’s updated Well Barrier Practice provides the requirements for the design, selection, installation, maintenance, monitoring and management of well barriers and well barrier elements throughout the full life cycle of the well. Per the practice, well barriers are generally required to isolate energy sources within the earth from each other, the surface environment, and people. Dual well barriers (primary and a secondary) are required between energy sources and the surface. This BP practice applies to all wells regardless of where they are in their life cycle, including those wells under construction, actively in service, temporarily abandoned or permanently abandoned. Well barrier elements are verified to acceptance criteria in BP’s Well Barrier Practice. For a cemented shoe track to be used as a well barrier element, it must have two independent floats for redundancy to prevent backflow of cement; have cement verified with a length and compressive strength required in BP’s zonal isolation practice; and have successfully passed both a positive test and a negative test as outlined in BP’s pressure testing practice. Critical factor: Hydrocarbons entered the well undetected and well control was lost 3. The negativepressure test was accepted although well integrity had not been established. Prior to temporarily abandoning the well, a negative pressure test was conducted to verify the integrity of the mechanical barriers (the shoe track, production casing and casing hanger seal assembly). The test involved replacing heavy drilling mud with lighter seawater to place the well in a controlled underbalanced condition. In retrospect, pressure readings and volume bled at the time of the negative pressure test were indications of flow-path communication with the reservoir, signifying that the integrity of these barriers had not been achieved. The Transocean MODU crew and BP well site leaders reached the incorrect view that the test was successful and that well integrity had been established. BP’s practices address both the positive and negative pressure testing requirements for wells. This updated practice requires prior approval of the engineering procedures for negative testing, and also specifies the minimum criteria to be met for a successful test. The Well Site Leader interprets the results of the test against the engineered acceptance criteria. The Well Superintendent, who has an offsite supervisory role, then approves the negative pressure test. Both staff positions are classified as critical roles that undergo mandatory competency assessments. With the aim of building and maintaining competency of its staff, BP delivers in-house industry-accredited well control training with staff instructors and full-size drilling simulators in its own facilities in Houston, Sunbury, and, from 2016, in Baku. In addition, building on its Applied Deep Water Well Control course that BP developed and delivered in recent years to its entire deep water rig fleet, BP has an agreement with Maersk Training to use its state-of-the-art immersive simulation training facilities and instructors to provide an enhanced development program for rig teams. The integrated rig teams -including individuals from BP, drilling contractors and service companies -work through simulator-based scenarios to practice procedures, roles and Page 55 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview responsibilities in challenging drilling and completion situations before they potentially encounter those situations in actual operations. 4. Influx was not recognized until hydrocarbons were in the riser. 5. Well control response actions failed to regain control of the well. BP’s well monitoring practice lists the responsibilities and requirements for verifying and documenting that well monitoring has been properly implemented. The requirements include alarm setting and actions to be taken, fluid volume and density monitoring, flow checking, and actions to verify conformance with the practice. With the negative pressure test having been accepted, the well was returned to an overbalanced condition, preventing further influx into the wellbore. Later, as part of normal operations to temporarily abandon the well, heavy drilling mud was again replaced with seawater, underbalancing the well. Over time, this allowed hydrocarbons to flow up through the production casing and passed the BOP. Indications of influx with an increase in drill pipe pressure are discernible in real-time data from approximately 40 minutes before the rig crew took action to control the well. The rig crew’s first apparent well control actions occurred after hydrocarbons were rapidly flowing to the surface. The rig crew did not recognize the influx and did not act to control the well until hydrocarbons had passed through the BOP and into the riser. The first well control actions were to close the BOP and diverter, routing the fluids exiting the riser to the DWH mud gas separator (MGS) rather than to the overboard diverter line. If fluids had been diverted overboard, rather than to the MGS, there may have been more time to respond, and the consequences of the accident may have been reduced. BP’s practices provide requirements and options for well control risk mitigation, response, and remediation on all BP operated activity throughout the lifecycle of a well. These practices incorporate enhanced industry standards that BP and others developed to advance capabilities across the industry following industry incidents. BP’s practices outline the methods and tools to achieve design safety through management of hazards. Managing hazards involves eliminating or minimizing major accident hazards (MAHs) at source and preventing those that remain from becoming major accidents. This may include equipment and design modification before the MODU begins a drilling program. For example, BP design requirements for mud gas separators have been changed in order to divert gas overboard and not near equipment or personnel. The BP practice requires a tailored regional wellbore monitoring procedure that is communicated to personnel with responsibilities for well monitoring, including the rig contractor and mud logger. The Well Site Leader, through BP’s self-verification and oversight process, helps assure that the crew’s actions conform to the wellbore monitoring procedure. As described in item 3, BP well site leaders and superintendents undergo competency assessments for their role. Relevant BP, rig contractor and well services company staff are required to receive industry-recognized well control certification. Also, BP provides enhanced, scenario-based training for rig crews. As described in item 3, BP well site leaders and superintendents are required to undergo competency assessments for their role. BP, rig contractor and well services company staff are required to receive industry-recognized well control certification. Also, BP provides enhanced, scenario-based training for rig crews. Critical factor: Hydrocarbons ignited on Deepwater Horizon 6. Diversion to the mud gas separator results in gas venting onto the rig. Once diverted to the MGS, hydrocarbons were vented directly onto the rig through the 12’ goosenecked vent exiting the MGS, and other flowlines also directed gas onto the rig. This increased the potential for the gas to reach an ignition source. The design of the MGS system allowed diversion of the riser contents to the MGS vessel although the well was in a high flow condition. This overwhelmed the MGS system. 7. The fire and gas system did not Hydrocarbons migrated beyond areas on DWH that were electrically classified to The heating, venting and air conditioning system probably In addition, BP conducts hazard and operability reviews (HAZOPs) of Page 56 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview prevent hydrocarbon ignition. areas where the potential for ignition was higher. Critical factor: The blowout preventer did not seal the well Three methods for operating the BOP in 8. The BOP the emergency mode were unsuccessful emergency mode in sealing the well. did not seal the well. The explosions and fire very likely disabled the emergency disconnect sequence, the primary emergency method available to the rig personnel, which was designed to seal the wellbore and disconnect the marine riser from the well. The condition of critical components in the yellow and blue control pods on the BOP very likely prevented activation of another emergency method of well control, the automatic mode function, which was designed to seal the well without rig personnel intervention upon loss of hydraulic pressure, electric power and communications from the rig to the BOP control pods. An examination of the BOP control pods following the accident revealed that there was a fault in a critical solenoid valve in the yellow control pod and that the blue control pod AMF batteries had insufficient charge; these faults likely existed at the time of the accident. Remotely operated vehicle intervention to initiate the autoshear function, another emergency method of operating the BOP, likely resulted in closing the BOP’s blind shear ram (BSR) 33 hours after the explosions, but the BSR failed to seal the well. transferred a gas-rich mixture into the engine rooms, causing at least one engine to overspeed, creating a potential source of ignition. surface gas and fluid systems for all BP-owned and BP-contracted drilling rigs, which include a review of hydrocarbon vent locations and design. There were indications of potential weaknesses in the testing regime and maintenance management system for the BOP. BP’s Well Control Practice specifies that: For additional assurance, BP’s Rig Engineering team inspects new MODUs before well operations begin and all MODUs on a periodic basis. • all dynamically positioned (DP) rigs be equipped with subsea BOPs that have two blind shear rams and a casing shear ram; • before beginning drilling new wells, a remotely operating vehicle (ROV) demonstrates the ability to access the subsea BOP control panel to pressurize and activate the shear rams; • a third party will certify that; o the BOP has been inspected and its design reviewed in accordance with the original equipment manufacturer (OEM) specifications, o modifications to the BOP, if any, have not compromised its design or function, o testing and maintenance of BOPs are performed in accordance with OEM guidelines and API Standard 53. • This practice also requires confirmation by a shear specialist that the BOP has the ability to shear drill pipe under maximum anticipated surface pressure (MASP) conditions. • Also, BP maintains dedicated subsea BOP reliability personnel with a global remit, to support all offshore BP drilling activities and can be called upon to assist with BOP related issues. BP’s subsea BOP reliability personnel work with its drilling contractors and their original equipment manufacturers (OEMs) to monitor BOP performance and further enhance BOP system reliability through oversight of maintenance and testing. • Also, BP and others in industry have advanced industry standards for BOP equipment through the American Petroleum Institute (API). In addition, efforts through API, the International Association of Oil and Gas Producers (IOGP), the International Association of Drilling Contractors (IADC) and other industry groups is focused on sharing information on BOP performance. Page 57 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 6.2.1 Incorporating Lessons Learned Every official investigation report released to date, including those from the Presidential Commission, the US Coast Guard, the Bureau of Ocean Energy Management (Regulation and Enforcement), and the National Academy of Engineering/National Research Council, reinforces the Bly Report’s core conclusion that this was a complex accident with multiple causes involving multiple parties. The Bly Report recommended a number of measures to strengthen BP’s operational practices, and these are being addressed through the implementation of enhanced drilling requirements. Key areas that have been captured in guidance documents and engineering technical practices are described below. 6.2.1.1 Cementing or zonal isolation BP issued revised mandatory zonal isolation requirements and nine associated engineering guidance documents covering key cementing activities. BP established a global Cementing Engineering team to increase cementing discipline capability and provide increased technical and operational assurance for cementing operations. 6.2.1.2 Integrating process safety concepts into the management of wells BP produced a technical practice specifying minimum requirements for well barrier management to manage the movement of fluids and gas during the life cycle of the well. 6.2.1.3 Well casing design BP updated its design manual for well casing and tubing to include new requirements for pressure tests and revised technical practices. BOP stacks – BP issued a revised technical practice on well control, defining and documenting requirements for subsea BOP configurations. BP requires two sets of BSR and a casing shear ram for all subsea BOPs used on deepwater DP MODUs. BP also requires that third-party verification be carried out on the testing and maintenance of subsea BOPs in accordance with recommended industry practice, and that ROVs capable of operating these BOPs be available in an emergency. 6.2.1.4 Rig audit and verification BP continued the MODU audit process that was enhanced in 2011. BP has conducted detailed hazard and operability reviews for key fluid handling systems on all offshore MODUs contracted to BP. New MODUs contracted to BP are subject to a full rig verification assessment and ‘readiness to operate’ is verified with a detailed go/no-go process assured by S&OR. This verification process includes a checklist, which among other things, assists in assessing that the MODU conforms to applicable BP practices and industry standards and has the right technical specification, and that all actions required for start-up are completed. All MODUs are also subject to subsequent periodic rig verification assessments. In addition to these technical requirements, BP has focused on enhancement of capability and competency; verification, assurance and audit; and process safety performance management. Page 58 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 6.2.2 Progress on Recommendations of the Bly Report Progress on implementing the recommendations from the Bly Report, BP’s investigation into the DWH incident, from an independent expert appointed to provide an objective assessment of this progress, concluded in February 2016 that all 26 Bly Report recommendations had been closed out to his satisfaction. Further information is provided in the BP 2015 Sustainability Report (http://www.bp.com/en/global/corporate/sustainability/reporting.html). The table below outlines progress against the Bly Report recommendations. Table 6 : Progress Against the Bly Report Recommendations Progress No . Finding 1 Update and clarify cementing practice and guidelines. Complete 2 Update requirements for subsea BOP configuration. Complete 3 Update recommendations for negative pressure tests and lock-down rings. Complete 4 Update practice on working with pressure, including contingency and testing procedures. Complete 5 Strengthen incident reporting standards for well control and well integrity. Complete 6 Proposal of recommended practice for design and testing of foamed cement slurries to API. Complete 7 Assess risk management and Management of Change (MoC)processes for life cycle global wells activities. Complete 8 Strengthen the technical authority’s role in cementing and zonal isolation. Complete 9 Enhance drilling and completions competency programs for key operations and leadership positions. Complete 10 Develop advanced deepwater well control training. Complete 11 Establish BP in-house expertise for subsea BOP and BOP control systems. Complete 12 Request the IADC to develop subsea engineering certification. Complete 13 Strengthen BP’s rig audit process to improve closure and verification of audit findings across the rigs BP owns and contracts. Complete 14 Establish key performance indicators (KPIs) for well integrity, well control, and rig safety-critical equipment. Complete 15 Require drilling contractors to implement auditable integrity monitoring system. Complete 16 Assess cementing service provider capabilities. Complete 17 Confirm well control and monitoring practices are defined and applied. Complete 18 Require hazard and operability reviews for surface gas and drilling fluid systems. Complete 19 Include study of all drilling rig surface system hydrocarbon vents in all hazardous operations (HAZOPS). Complete 20 Establish minimum levels of redundancy and reliability for BOP systems. Complete 21 Strengthen BP’s requirements for BOP testing by drilling contractors, including emergency systems. Complete 22 Strengthen BP’s requirements for BOP maintenance management systems by drilling contractors. Complete 23 Set minimum standards for drilling contractors’ MoC for subsea BOPs. Complete 24 Develop a clear plan for ROV intervention for each subsea BOP. Complete 25 Require contractors to verify BSR performance capability. Complete 26 Include testing and verification of revised BOP standards in MODU audit. Complete (at end 2015) Page 59 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Through consultation with a multidisciplinary team drawn from Crisis and Continuity Management, Environment, Wells and Reservoir Engineering, a range of potential spill events have been identified based on oil type and operational activity, from which discrete planning scenarios have been defined, that are then used to develop response strategies and capability provisions. Planning scenarios provide the basic foundation of sound oil spill planning and response capability. They collectively provide the full range of potential impacts that may arise from the oil spills that could occur, and the full range of response actions that would be needed to address this. A list of the potential impacts and risks associated with potential unplanned event scenarios are summarised in Table 7 . Page 60 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Table 7 - Environmental risk assessment summary – unplanned events Hazard Known and Potential Impacts Risk Key mitigation and management measures Consequene Likelihood • Marine pollution resulting in injury and entanglement of marine fauna and seabirds • The MODU and support vessels will have Garbage Management Plans in place. • MODU facilities are fit for purpose and free of defects • All vessel and MODU crew undertake site inductions which include a component on storing and handling of hazardous materials and wastes. Undetectable Moderate Not or limited local probability / Significant degradation frequency • Acute toxicity to marine • Storage tanks, equipment, bunding and machinery spaces are fit for purpose and free of defects. • All vessel and MODU crew undertake site inductions which include a component on storing and handling of hazardous materials and wastes. • All crew undertake spill response training every three months in accordance with the SMPEP and training matrix. • Oil spill response kits are available in relevant locations around the MODU, are fully stocked and are used in the event of a spill. Undetectable Moderate Not or limited local probability / Significant degradation frequency Significance Accidental Release events Accidental release of solid waste Accidental release of materials during operational and maintenance activities Accidental release of materials during bulk transfer activities fauna. • Acute toxicity to marine fauna. • Storage tanks, equipment, bunding and machinery spaces are fit for purpose and free of defects. • Bulk hydrocarbons (including aviation fuel) are stored within designated tank within a bunded area. • The bunker transfer procedure is implemented in order to prevent a mud spill. This includes: A PTW and a JSA are undertaken for each transfer event, taking into account spill response considerations. • All drill fluids evaluated in accordance with GAB Chemical Assessment Guideline. Page 61 of 82 BP Developments Australia Pty Ltd Rev: 0 Undetectable Low Not or limited local probability Significant degradation / frequency GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Hazard Known and Potential Impacts Key mitigation and management measures Risk Consequene Likelihood Moderate Low Minor degradation probability / Significance Significance • All vessel and MODU crew undertake site inductions which include a component on bunkering and chemical transfers. • Communications between the MODU and the vessel will be tested by the MODU Chief Mate and Vessel Master prior to bunkering commencing. • Transfer hoses are fitted with dry break couplings, are inspected prior to each transfer and are replaced in accordance with the PMS or when they are visibly degraded. • The integrity of storage systems and other equipment will be assured through undertaking repairs as necessary, and recording these in the PMS. • Lifting procedures are implemented. • A pre-spud ERP desktop exercise is undertaken to test the emergency response mechanisms in place. • The crew undertake spill response training every three months in accordance with the SMPEP and training matrix. • Oil spill response kits are available in relevant locations around the MODU, are fully stocked and are used in the event of a mud, chemical or diesel spill to deck. Accidental release of drill fluids during an unplanned riser disconnect. Accidental release from a vessel collision • Smothering and alteration of benthic substrate; and • Acute toxicity to marine fauna from a reduction in water quality. • Acute toxicity to marine fauna. • Adherence to well specific operating guidelines. • All drill fluids evaluated in accordance with GAB Chemical Assessment Guideline. • A pre-spud ERP desktop exercise is undertaken to test the emergency response mechanisms in place. • Anti-collision monitoring equipment (e.g., 24-hour radar watch, GMDSS and Automatic Identification System [AIS]) on the MODU and support vessels is functional and used in accordance with AMSA Marine Orders Part 30 (Prevention of collisions). Page 62 of 82 BP Developments Australia Pty Ltd Rev: 0 frequency Moderate Low Minor degradation probability / Significance frequency GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Hazard Known and Potential Impacts Key mitigation and management measures • • • • • • • • • Accidental release from a well blowout • Potential Toxicity effects / Physical Oiling • Potential for reduction in • Likelihood Widespread Low damage probability / Risk Significance The MODU Watch Keepers are appropriately qualified in accordance with AMSA Marine Orders Part 3 (Seagoing qualifications) (e.g., International Convention of Standards of Training, Certification and Watch keeping for Seafarers, STCW95, GMDSS Proficiency) to operate radio equipment in order to minimise the chance of collisions. The PSZ is gazetted through NOPSEMA effective from the MODU’s arrival at each well location. Constant communications between the MODU and support vessels are maintained to ensure the vessels are patrolling the PSZ at all times. The Vessel Masters issue warnings (e.g., radio warning, flares, lights/horns) to third-party vessels approaching the PSZ in order to prevent a collision. One of the support vessels will remain with the MODU at all times and will intercept approaching vessels that have not heeded radio advice about the presence of the MODU. A pre-spud ERP desktop exercise is undertaken to test the emergency response mechanisms in place. A satellite-tracking buoy will be deployed from the MODU immediately after a Level 2 or 3 diesel spill (that occurs within the PSZ) in order to track the fate of the spill. BP ensures that operational monitoring takes place in accordance with the OSMP in the event of a spill. BP will provide the operational monitoring reports to relevant regulatory agencies in order to characterise environmental impacts from a diesel spill. Safety critical equipment identified within Section 6.3 of the WOMP from BP Practice 100222 will be utilized. Page 63 of 82 BP Developments Australia Pty Ltd Consequene Rev: 0 Significant GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Hazard event Known and Potential Impacts intrinsic values / visual aesthetics. • Potential damage to commercial businesses. Key mitigation and management measures • • • • • • • • • • • • The fluid and cementing programs documented within the WOMP from BP Practice 100222 will be implemented. A well programme will be developed prior to spud and implemented. The PMS will ensure safety critical equipment, specifically the BOP will be maintained in accordance with the manufacturer specifications. Prior to use, the BOP will be subjected to an Integrated Acceptance Test (IAT) Part 2 and signed off by BP. Prior to use, the BOP will be subjected to independent third party verification against API Standard 53. The BOP will be tested in accordance with the frequencies described in the BOP testing procedure. BP will use a self verification and oversight model, described in Section 4.4.2 of the WOMP to verify well barriers throughout the duration of the drilling program. Practical barrier checks and frequency of self verification and oversight will be implemented in accordance with the GWO Safety Plan. BP’s Competence Management Programme (CMP) will ensure all personnel in safety critical roles are assessed and the employees behaviours, skills, knowledge and understanding verified to assure competence. A WOMP will be in place and accepted by NOPSEMA for each well prior to spud. The OPEP will be implemented in the event of a well blowout. Response preparedness will be undertaken in Page 64 of 82 BP Developments Australia Pty Ltd Rev: 0 Consequene Likelihood frequency Risk Significance GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Hazard Known and Potential Impacts Key mitigation and management measures • • • • • accordance with the control measures identified within the OPEP. In the event of a well blowout, the containment response plan will be implemented. In the event of a well blowout, the relief well plan will be implemented. The Operational and Scientific Monitoring Plan (OSMP) will be implemented in the event of a well blowout. Spill response exercises will be undertaken as a part of the drilling program execution in accordance with the OPEP. BP’s Crisis Management Response System will be implemented in the event of a well blow out event in accordance with the OPEP. Page 65 of 82 BP Developments Australia Pty Ltd Rev: 0 Consequene Likelihood Risk Significance GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 7 Environmental Impact and Risk Evaluation – Oil Spill Response Activities In the unlikely event that all of the preventative measures described in earlier sections have failed and a spill event has occurred, BP will have plans in place to launch multiple simultaneous activities to stop the flow of hydrocarbons. These will make up BP’s mitigative barriers. Similar to the preventative barriers outlined above, the mitigative barriers will include process/ equipment, procedures and people. BP has identified and defined a range of oil spill planning scenarios, and has determined response strategies for each of these scenarios. Further details regarding response planning are provided in Section 8. Environmental impacts and risk evaluation has been conducted for these oil spill response activities, as summarised in Table 8. Page 66 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Table 8 - Environmental risk assessment summary – oil spill response activities Hazard Known and Potential Impacts Key mitigation and management measures Consequence Likelihood Extensive Moderate damage probability / Risk Significance Additional potential impacts and risks from oil spill response activities • Damage to or loss of intertidal and shoreline habitat; • Disturbance to cultural heritage sites; • Temporary exclusion of residents and tourists from amenity beaches; and • Secondary contamination of foreshore and backshore areas such as dunes. • Net Environmental Benefit Analysis (NEBA) completed by controlling agencies/hazard management agencies prior to shoreline operations commencing. • Cultural/heritage advice sought and considered as part of NEBA processes. • Cultural/heritage advisor appointed to the Incident Management Team. • Ongoing stakeholder consultation. • Shoreline Cleanup Assessment Technique (SCAT) Teams will assess shorelines for oiling and sensitivity prior to operations commencing and control agencies engaged and confirm shoreline treatment tactics. Physical interaction with fauna • Fauna casualties • Trained personnel responsible for oiled wildlife response. • Maintenance of access to oiled wildlife personnel through the National and Global oiled wildlife response network. • Wildlife response operations will be undertaken with approval of the relevant state oiled wildlife response agency. Seabed disturbance • Smothering and alteration of benthic habitat. Ground disturbance Planned discharge of • Potential toxicity to pelagic fauna and flora. • No anchoring within TECs. • NEBA completed prior to response operations commencing. • Dispersant Exclusion Zones. • NEBA completed prior spraying dispersant oil. • Only OSCA listed and approved dispersant will be used Page 67 of 82 BP Developments Australia Pty Ltd Rev: 0 Significant frequency Moderate Low Minor degradation probability / Significance frequency Moderate Low Minor degradation probability / Significance frequency Widespread Low damage probability / Significant GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Hazard Known and Potential Impacts dispersant Key mitigation and management measures for both surface and sub-surface application. • The OSMP will be implemented. • Daily NEBA conducted prior to surface dispersant application. Page 68 of 82 BP Developments Australia Pty Ltd Rev: 0 Consequence Likelihood frequency Risk Significance GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 8 Summary of Response Arrangements in the Oil Pollution Emergency Plan The project will operate under an Emergency Response Plan (ERP) and NOPSEMA accepted OPEP to ensure timely response and effective management of any emergency. Bridging documents will be prepared to link BP’s and Diamond’s safety management and well control systems. To ensure readiness, emergency exercises and drills will be conducted prior to commencement of drilling and regularly on-board the MODU. Any opportunities for improvement identified as a result of conducting the exercise will be used to update emergency response procedures, where necessary, to ensure a well-organised response to any emergencies during the project. The GAB drilling program OPEP details the BP incident management structures and arrangements for dealing with an oil spill event from this project. It defines the arrangements from immediate response to escalation for a worst credible case discharge event. This includes the full scalability of the resources required. 8.1 Support Arrangements The BP response capability has been designed around BP owned resources, those that are accessible from within Australia, and those from the regional and global response networks. These arrangements include the following: • A comprehensive equipment stockpile owned by BP and held at a number of locations, including the Adelaide supply base; • BP capping and containment response equipment and personnel based in the US; • An agreement through full membership of AMOSC that provides access on a 24/7 basis to oil spill response equipment, dispersant and specialist personnel in Geelong and Fremantle; access to oil industry resources (Mutual Aid Stockpiles) and trained industry response core group personnel; Fixed Wing Aerial Dispersant Capability (FWDC); and the Global Response Network which provides mutual assistance during an oil spill event; • AMOSC master service agreement with the Australian Maritime Safety Authority (AMSA) giving access to NatPlan response resources and the National Response Team (NRT); • An agreement through full membership with Oil Spill Response Limited (OSRL) that provides an extensive range of oil pollution response equipment and specialist personnel from the OSRL bases of operation in Singapore, Southampton, Bahrain and Fort Lauderdale; • Access to the Global Dispersant Stockpile via BP’s membership of AMOSC and OSRL, making available very large volumes of approved dispersant; and • Support from the BP Mutual Response Team, which is a team of approximately 450 trained personnel from BP global operations. The GAB OPEP provides a first strike plan that details the tasks to mobilise an initial response and the essential notifications that are required to be conducted. It provides guidance for the IMT on all aspects of oil spill response and moves the response from the initial reactive phase into the development of a full IAP planning cycle. It also defines the necessary integration and liaison required with the relevant state agencies. Page 69 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 8.2 Response Strategy Overview BP has assessed available response tactics for application to the GAB, and has established oil spill preparedness and response positions to demonstrate that impacts and risks associated with the loss of hydrocarbons would be managed to ALARP and acceptable levels. The response measures assessed and planned for are as follows; • Surveillance and tracking • Surface dispersant application (vessel and aerial) • Subsea dispersant injection • Subsea well capping stack • Relief well • Offshore mechanical containment and recovery • In-situ burning • Shoreline protection • Shoreline clean-up • Oiled wildlife response • Waste removal and management A summary of oil spill planning for the GAB exploration wells is provided below. Further details are outlined in the document ‘Oil Spill Response Planning Strategic Overview’ which is available on the GAB website www.bpgabproject.com.au. 8.2.1 At-Sea Response Strategy In the event of a loss of well control event, stopping the release of hydrocarbons to the environment is achieved using a combination of the following tactics: • Closure of the BOP; • ROV mobilisation and external intervention; • Capping stack deployment; and • Drilling a relief well. If the primary well control measures fail, BPs first course of action would be to attempt to close the BOP. In the unlikely event that the BOP closure mechanisms fail, the next line of response would be BOP intervention to establish control and ultimately shut in the well using an ROV. Capping stacks provide a means of choking back flow, establishing a barrier and the subsequent ability to pump heavier kill fluid into the well to control the pressure. A relief well is a longer-term response option to stop uncontrolled flow from a well (i.e., ‘kill’ a well). A relief well is drilled to intersect the well that is out of control to provide a conduit to pump high density fluid into the well, and thus stop well flow. Whilst source control activities are being undertaken, a combination of other oil spill response tactics are implemented to mitigate the effects of the release of hydrocarbons to the environment. Page 70 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview Given the potential impacts to both at-sea and nearshore receptors, the fundamental intent of the oil spill response strategy will be to implement first, and closest to the spill source, those actions that could deliver the most benefit (for both at-sea and nearshore receptors). BP believes that the application of subsea dispersant injection (SSDI) offers substantial advantage, based on the experience gained during the response to the DWH incident in the Gulf of Mexico in 2010. This showed that SSDI can be an effective response tactic for subsea oil blowouts, and can offer a number of benefits. Application of SSDI will: • reduce the exposure of surface responders to the health and safety hazards of VOCs and oil; • enhance the dispersion of oil in the water column and so increasing the opportunity for natural biodegradation; • treat oil released at the point of release; • require less dispersant compared to surface oil treatment; • can be conducted continuously, day and night and in practically any weather conditions, unlike response tactics on the sea surface; and • ultimately help reduce the volume of oil that may come ashore. Once SSDI is implemented, operations will run continually 24/7 while capping operations are being prepared and carried out. Based on the experience of BP and the global industry, SSDI is expected to take a period of around 10 days before it can be implemented. As part of the overall response strategy, other response actions will be undertaken in this 10 day period. Working backwards from Day 10, the on-water oil spill response strategy would comprise a number of targeted measures, in coordination with the source control activities at the well site. These strategies would include surface dispersant application and containment and recovery activities. 8.2.2 Near-shore Response Strategy Any oil that is not successfully dispersed, contained and removed close to the source will continue to weather and move under the influence of currents and prevailing winds towards the coastline. Depending on the season in which such an event might occur, the areas of coast that could be affected will vary. The time for oil to reach the coast ranges from 9 days to several months and the nature of the oil on the water will vary from patches/streamers of weathered and emulsified oil and residues, through to traces of sheen. If not managed, oil close to nearshore areas would be expected to strand on shorelines where it may be expected to have a greater impact on amenities and some wildlife. Therefore, the main focus for response will be removing as much oil from the sea surface as possible, which will ultimately minimise shoreline loading as well as surface impacts to these areas. Based upon a comprehensive planning evaluation, the response tactic expected to be appropriate within near-shore areas include nearshore containment and recovery and protection and deflection. Page 71 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 8.2.3 Shoreline Response Strategy At the outset of a well blowout event, much of the focus will be given to the rapid implementation of source control and the at-sea response, with the aim of reducing the likelihood and extent of oil reaching the shoreline as far as possible. However, the importance of preparing early for shoreline protection and cleanup is also a high priority. BP have adopted an analogous approach to concentric levels of shoreline response planning dependent upon probability and likely scale of impact based on modelling outcomes. From a planning perspective, appropriate shoreline protection and clean-up tactical response plans (TRPs) have been developed. These tactical response plans include site specific details, response tasks, site setup plans, concept of operations and a full resource inventory. 8.2.4 Oiled Wildlife Response Strategy In the event that shoreline oiling cannot be prevented, BP will assess if there is a threat to wildlife from the spilt hydrocarbon and, under the direction of the relevant Jurisdictional Wildlife Control Agency, implement actions to reduce the consequences of the spill. While WA and SA are working towards their own state and regional specific OWR plans, BP has commissioned AMOSC to develop an Interim GAB Oiled Wildlife Response Plan (IGOWRP). This plan has been developed in close consultation with these jurisdictions, with the intent that be it be used by the relevant jurisdictional OWR Control Agencies until such time as it can be subsumed/replaced by their own regional specific OWR plans. 9 Implementation Strategy The Implementation Strategy described in this section is a summary of the BP systems, practices and procedures that are in place to manage the potential environmental impacts described in the EP and to ensure objectives associated with these potential impacts are met. 9.1 The BP Operating Management System As one of the world’s leading integrated oil and gas companies, BP aims to create long-term value for shareholders by helping to meet growing demand for energy in a safe and responsible way. The BP Operating Management System (OMS) defines a systematic and consistent approach to managing BP operating activities, helping to continuously improve performance while meeting a commitment to operate safe, reliable and compliant operations. BP’s OMS provides a single framework for BP operations, covering people, plant, process, and performance. The OMS applies whenever BP carries out or uses a contractor to carry out operating activities. It brings together BP requirements on health, safety, security, environment, social responsibility and operational reliability, as well as related issues such as maintenance, working with contractors and organisational learning, into a common management system. The BP OMS has two purposes: • Managing health, safety, security and environmental (HSSE) and operational risks in our operating activities by setting out what we need to do. • Improving the quality of our operating activities through an annual Performance Improvement Cycle. Page 72 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 9.2 Contractor Management System BP has clearly defined practices which outline the processes and tools used in to procure and manage goods and services. These practices are intended to drive effective management of contractors in support of reduction of risk, improved operational performance, increased capital productivity, reduced cost, and improved access to resources and markets. Through specific contract requirements, BP requires that contracted companies have in place a HSE management system that provides a systematic approach for controlling risk, complying with regulatory requirements and continually improving HSE performance. The key contractor for this drilling program, Diamond, manages HSE performance by their Global Excellence Management System (GEMS), which is the equivalent of BP’s OMS. GEMS is a fullyintegrated Health, Safety, Environmental and Quality (HSEQ) system that contains the procedures to monitor, control and continuously improve performance in these areas. GEMS is certified by the IMO and by the International Management Code for the Safe Operations of Ships and Pollution Prevention (ISM Code). Diamond’s Safety and Environmental Management System (SEMS) is part of the overall GEMS, and provides a system containing the company’s policies, procedures and guidelines for conducting operations in a safe and efficient manner. These systems provide a consistent, worldwide management system for use on all Diamond facilities. For vessel-based activities, BP will ensure that an Environmental Management System is in place for the selected contractors to ensure that their environmental impacts and risks are adequately identified and managed. The support vessel contractors must have systems in place to monitor and track compliance with the requirements of this EP. Pre-qualification criteria and pre-selection audits of potential vessel contractors will ensure these systems are in place prior to contract award. 9.3 Roles and Responsibilities In accordance with BP’s OMS, the environmental roles and responsibilities of key project personnel are summarised in the EP. Whilst compliance with HSE requirements is the responsibility of all personnel involved in the drilling program, the BP Global Wells Organisation (GWO) New Ventures Wells Manager is responsible for ensuring all required plans, audits and reviews are undertaken in accordance with the EP. 9.4 Training and Competencies BP’s OMS defines the training and competency expectations for BP staff and contractors. BP employees are selected, trained, developed and evaluated to ensure that they attain and maintain the level of competency required for the position they hold. BP selects its contractors based on a detailed tendering process, whereby the qualifications and experience of tendering companies are used to select companies to fulfill specific duties than cannot be met by internal resources. Globally, Diamond has established the Worldwide Competency (WWC) Program, which is Diamond’s system for establishing and verifying the knowledge, skills and abilities of each employee to perform their assigned job function in a safe and environmentally sound manner. The training and competency requirements are a set of documents that reside in the SEMS. The OIM is responsible for the implementation of the WWC Program on the MODU, and Diamond’s training department is responsible for the coordination and administration of the competency program as well as the documentation and record keeping of personnel training. Audits of the WWC Program are conducted through the internal annual GEMS and IADC accreditation audits. Page 73 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview All BP and Diamond personnel involved with the project, including third-party contractors, will attend a project-specific pre-spud induction. This will cover various aspects of the project, including environmental and EP awareness and compliance aspects, including: • Environmental regulatory requirements; • Environmental sensitivities and key risks; • Key environmental management procedures, including: − Mud and cement management. − Waste management (segregation, containment and disposal). − Spill prevention, preparedness and response. − Housekeeping. − Incident reporting and recording. Whilst on the MODU, all personnel will be involved in a number of different HSE meetings, including weekly HSE meetings, Toolbox meetings (job safety analysis) before initiation on tasks and daily ‘pre-tour’ HSE meetings. 9.5 Incident Recording and Reporting BP’s OMS requires that BP records and reports environmental incidents. There are also obligations to report incidents to NOPSEMA and other government departments within a specified time period. All breaches of this EP are considered non-compliances. Non-compliances may be identified during an audit, inspection, crew observation or as a consequence of an incident. All non-compliances must be communicated immediately to the appropriate offshore personnel (i.e., the Wells Team Leader and/or OIM). This expectation will be reinforced at the induction and at weekly HSE meetings. All incidents of EP non-compliance will be investigated as per Element 4 (Procedures) of the OMS. Following an investigation, remedial actions are developed to prevent recurrence and tracked to completion. The outcomes of the investigations will be communicated to the crew during the weekly HSE meetings. The BP Environment Manager or delegate will ensure internal notification, investigation and reporting of any environmental incidents is conducted in accordance with BP’s internal reporting procedure, and that external reporting is conducted as required under relevant legislation or as agreed to during stakeholder consultation. 9.6 Environmental Monitoring and Record Keeping The risk assessment conducted in the EP includes requirements regarding environmental monitoring. This monitoring will be conducted at the frequency outlined in the EP, and will contribute to the EP end-of-well performance report, which will be submitted to NOPSEMA within three months of completion of each well. Page 74 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview 9.7 Auditing and Review 9.7.1 Audit and Verification BP’s Global Wells Organisation (GWO uses a system of checks and balances to verify the quality of operations through a process consistent with OMS and BP Group system of internal controls. Audits are conducted to: • Ensure that environmental performance outcomes and standards are being met through the duration of the project; • Identify potential non-compliances and opportunities for improvement; and • Ensure that all environmental monitoring requirements are being conducted. Diamond will conduct a number of audits as per the SEMS Audit Manual (part of Diamond’s SEMS). Audit programs conducted by Diamond will include: • Internal rig audit program; • External rig audits; • Rig GEMS audits; • Shore base GEMS audits; • Rig personnel HSE audits; • Action items from alerts; and • Preventative actions from risk assessments. 9.7.2 Rig verification BP will conduct an independent environmental and containment rig assessment prior to the rig mobilising to the drilling location. This assessment will primarily focus on rig drainage, waste water system, oil treatment system and secondary containment. BP will also conduct an Integrated Acceptance Test (IAT) of the rig. Part one of the IAT will test the functionality and operability of the main rig systems required during the well program, and will focus on people, plant, and process for each task Diamond is assigned to carry out. Part two of the IAT will focus on BOP testing. BP assessors will witness Diamond personnel surface testing the BOP stack, latching up the BOP to the wellhead, and conducting a subsea pressure test. The focus will be on the people, plant, and process for testing the BOP. The BOP system is also independently verified by Lloyds prior to drilling 9.7.3 Support vessel audits Prior to contract award, an inspection of the preferred vessel operator’s Common Marine Inspection Document (as developed by the International Marine Contractors Association), or Offshore Vessel Inspection Database (as developed by the Oil Company International Marine Forum), will be conducted. These documents provide a standardised format for inspection and reporting by a competent inspector. In addition to a review of these documents, BP will conduct a pre-qualification audit of the contractor and acceptance of the nominated vessels to ensure that they meet BP’s HSSE requirements. Page 75 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview BP will provide vessel contractors with a summary list of applicable controls/performance standards prior to the commencement of operations, and will work with the vessel contractors to ensure appropriate measurement criteria are in place in order to ensure performance against standards can be measured. Audit against these requirements will then be conducted as part of regular EP compliance audits. 9.7.4 EP Compliance Audits The following arrangements will be established to review performance of the project against this EP: • A pre-mobilisation EP compliance audit of the MODU and support vessels will be conducted to ensure that procedures and equipment are in place to enable compliance with the EP. • An EP compliance audit of the MODU at least once per well will be conducted by an experienced and qualified HSE professional (with the first audit taking place within three weeks of spud). • An EP compliance audit of each support vessel will take place at least once during the drilling program. • Regular review and audit of specific aspects of EP compliance will be conducted by the onboard SDR in conjunction with the BP Environment Manager. Audit findings will be recorded and communicated to key personnel through an audit exit meeting and formal audit report, and corrective actions will be recorded and tracked to closure through BPs action tracking tool. A summary of the environmental audit results will inform the EP performance reports submitted to NOPSEMA. 9.7.5 OPEP and OSMP readiness review A major OPEP desktop exercise will be undertaken prior to spud to ensure readiness for operations. Lower level desktop exercises will be scheduled throughout the drilling program to ensure that plans remain current and that skills are maintained. An OSMP desktop readiness assessment will also be undertaken prior to spudding the first well. 9.7.6 EP and OPEP Review Under the OPGGS (E) Regulation 17(5), there is a requirement for a titleholder to submit a proposed revision of the EP (including OPEP) before the commencement of any significant modification or new stage of the activity that is not provided for in the EP currently in force. Changes to the activity are to be managed via BP and Diamonds “Management of Change” procedures. These processes aim to identify potential hazards and impacts when a permanent, temporary, or emergency change in ‘people’, ‘plant’, or ‘process’ is undertaken or a ‘deviation’ occurs. Potential impacts arising from the change or deviation shall be risk assessed and reviewed prior to the change or deviation be ‘approved’ in the final step of the MoC process. Based on this assessment, should the proposed change trigger a requirement to revise the EP and/or OPEP under the Regulations, the updated EP and/or OPEP will be submitted to NOPSEMA for acceptance. While the EP is in force, it is also possible that new information may become available through a number of sources, including (but not limited to): • GAB Research Program; Page 76 of 82 BP Developments Australia Pty Ltd Rev: 0 GAB Exploration Drilling (Stromlo-1 & Whinham-1) EP Overview • Monitoring studies conducted as part of the drilling program; • Stakeholder input; • Government documents, such as CMR management plans; and • Audits, inspections and investigations. The BP Environment Manager will make certain any relevant new information is identified by coordination and review of monitoring studies as well as via participation in the GAB Research Program Management Committee, the APPEA HSE Committee, integrated project meetings and stakeholder consultation meetings. 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