Project: Development Plan for Orbost Gas Plant Upgrade Meeting: Community Advisory Committee (CAC) Meeting #1 Date/Time: Wednesday 13th January 2016, 3:00pm Location: Orbost Gas Plant Present: Committee: Cr. Mark Reeves East Gippsland Shire Council (Meeting chair) Terry Gladstone (In place of Stephen Mathers, Principal) Newmerella Primary School (Orbost area schools) Andrew Phillips Orbost Cricket Club (Orbost Clubs) Garry Squires Orbost Chamber of Commerce and Industry Russell Bates Marlo Community and Marlo Hotel Darren Robinson Captain Newmerella Country Fire Authority Theo Mekken Neighbour and landowner along pipeline easement Peter Van den Oever Orbost Regional Health Shaun Noble Santos Operations Superintendent Bronwyn Ridgway Santos EHS Adviser (a presenter) Visiting presenter Phillip Burn Jacobs 1 Planner (a presenter) Minute taker Lauren Bradshaw Jacobs Apologies: Stephen Mathers Distribution: Newmerella Primary School CAC members Santos East Gippsland Shire Council 1 Jacobs is a consulting firm assisting Santos with the design and approvals for the Orbost Gas Plant Upgrade Project Development Plan Orbost Gas Plant Upgrade 160113 CAC Meeting Minutes.docx 1 of 7 Minutes Item Discussion 1 Cr Mark Reeves opened the meeting and acknowledged the Traditional Owners of the Land. He then welcomed all committee members to the meeting and each person introduced themselves. The Draft Terms of Reference for the committee had been circulated prior to the meeting and their content was discussed towards the end of the meeting. 2 Presentation Santos, and consulting firm Jacobs, presented an overview of the upgrade project including: • Introduction and plant history. • Planning history. • Proposed plant changes and key approvals. • Role of the CAC including terms of reference. • Key issues for discussion and Santos design response. • Information brochure development. Introduction and plant history • • • • • • • Plant opened by OMV in 2003. Original CAC was established in 2002 before the plant opened. Meetings have been held 3 to 4 times per year since then. Original approvals for bringing Sole gas ashore gained in 2003. Most have lapsed. Santos became the operator of the plant in 2005. 2009/2010 the plant was modified to process gas from the Longtom gas field, changes included vegetation removal, the flare being moved and installing condensate storage and handling. 2014 amendment to EGSC planning scheme to apply the SUZ4. Plant in care and maintenance mode since late 2015. Planning history • • To comply with the Planning Scheme two documents from Santos must be prepared to the satisfaction of EGSC, these are: o Development Plan o Environmental Management Plan Planning scheme requires feedback from this CAC to Council on the matters concerning the Development Plan. Development Plan Orbost Gas Plant Upgrade 160113 CAC Meeting Minutes.docx 2 of 7 Other key approvals • • • EPA Works Approval (public advertising and comment). Pipelines Act – for the short section of pipeline south of the plant that will be drilled from the plant, under the dunes to offshore (public advertising and comment). Other approvals for the plant include those related to safety, Aboriginal heritage, Native Title, Coastal Management Act Consent etc. These are not public processes. Proposed plant changes • • • • • • • The plant needs to be changed each time to process gas from different fields. Contaminants need to be removed from the gas to meet the sales gas specifications. The biggest differences with the gas from the Sole gas field (compared with Longtom gas) are that hydrogen sulphide is present and there is less condensate and mercury in the raw feed gas. The hydrogen sulphide will be removed by a biological gas treatment process. Solid bio-sulphur will be produced and facilities to store and truck the sulphur will be added. All other gas treatment processes onsite are either the same or enhanced based on the existing operation. Other major changes in the plant were explained on a draft plan: o Vegetation needs to be removed o Flare (existing) being moved o New processing equipment items (to support the existing plant) o Less trucking due to less condensate being produced trucking approximately halved Differences in how this proposal looks compared to what was put forward in 2003: o The ground flare has already been moved to the east of the plant and will now be moved again. The flare will no longer be elevated to 35m as proposed in 2003 o There will be three structures around 20m tall o Santos remains committed to ensure the plant remains as inconspicuous as possible 2003 photomontage shown to CAC with 35m flare included. Bushfire concerns addressed by: o The design that places the ground flare away from vegetation o The plant’s emergency response plan that addresses the situation of a bushfire coming near to the plant o The worst case wind conditions are considered as part of the design Further information on approvals • Preparation of the Development Plan is underway. Shire needs to Development Plan Orbost Gas Plant Upgrade 160113 CAC Meeting Minutes.docx 3 of 7 • • • 3 confirm that Development Plan is to their satisfaction and will receive input from the CAC and referral agencies. Some of the types of issues for the council to consider include: o Lighting o Visual impact o Plant colours o Vegetation removal o Traffic Santos is seeking to gauge from CAC whether there are any strong feelings about any of these (or related) issues. Other issues (such as odour) are covered by other approval agencies such as the EPA which includes: o Noise o Air emissions o Handling of bio-sulphur o Water quality: Bunding is used – concreted to ensure that spills are contained Process water discharged to sewerage farm First flush design of stormwater runoff o Other issues – odour, flare etc. Site induction and plant tour conducted All persons were provided with a plant induction by the Plant Operator Maintainers before being provided with personal safety equipment. The committee then participated in a tour of the site (which currently is not operating). 4 Development Plan related questions raised by the CAC • 5 How tall are the three higher towers that would be more visible from a distance? There are three vessels or towers about 20m high. Two of the towers are absorbers. The third is a vent stack. Other (non-Development Plan related) questions raised by the CAC • Why wasn’t the Sole gas field developed in 2003? The proposal in 2003 was not sufficiently compelling in relation to other broader opportunities at the time. • Why is flaring used instead of venting? Flaring is the controlled burning of natural gas as part of oil and gas operations and it essentially converts methane to water and carbon dioxide. Burning is much more environmentally friendly than cold venting (releasing raw gas). Venting is the release of methane gas to the atmosphere. Methane is a greenhouse gas and has a global warming potential about 25 times greater than carbon dioxide. Development Plan Orbost Gas Plant Upgrade 160113 CAC Meeting Minutes.docx 4 of 7 • Can the flare be used on total fire ban days? Yes. The flare is a safety feature/control and is designed to be able to operate if required to make the plant safe even on total fire ban days. The large cleared area around the flare has been designed to avoid the risk of igniting surrounding vegetation. The plant’s Emergency Response Plan addresses the event of ember or bushfire attack. This plan would be reviewed as part of the proposed changes. Meteorological data has been used in designing the flare and associated size of the cleared area to ensure the design is suitable and safe. • How frequently does the emergency flare go off? A full blowdown of the complete inventory of gas in the plant within a short time frame is a rare occurrence. The plant is blown down fully (and more slowly) for maintenance about once per year. This is planned for usually during daylight hours. Approximately 3 or 4 times per year there are trips of the plant that would cause a compressor to blow down plus purging of the compressors on starts and stops. Burning is much more environmentally friendly than cold venting (releasing raw gas) because burnt gas is approximately 22 times better than unburnt gas in terms of greenhouse impacts. • Would there be any major issues to do with odour from the H 2 S? The gas composition will be quite constant on a day to day basis and processing should be able to be fine-tuned once the plant is up and running. As a common safety precaution, before the gas leaves the plant we add odourant (mercaptan) – a harmless, but pungent smelling additive that enables easier detection of natural gas. There is an odour limit at the plant boundaries and we monitor this as part of our daily activities. The process is designed to be odourless at the plant boundary. If there is an ongoing smell, the processing is not working correctly and it would be modified or the plant shut down. Odour is covered by the EPA works approval application. • Will there be any offsite smell from the flare? The flare will operate at a low level during normal operations and there should be no offsite odour. During an emergency blowdown, which causes a plant shutdown, the flare would be very large for a short period of time (around 15 minutes). Again, no ongoing odour is expected beyond the plant boundary. • Is there a known composition of the gas and if so, is the plant designed exactly for this composition? Gas samples from the first and second well drilling campaigns have provided us with a good understanding of the composition. The plant is designed conservatively and there is spare capacity to process more hydrogen sulphide and other contaminants that are in the raw gas. • Has there been any contamination of waterways? No. There are groundwater bores placed around the site for testing. The ponds on the site have a 1m deep compacted clay Development Plan Orbost Gas Plant Upgrade 160113 CAC Meeting Minutes.docx 5 of 7 surround and above this there is an engineered lining which is impermeable. Excess water from these ponds is discharged to the East Gippsland Water Treatment Plant. Only clean stormwater is permitted to leave the site. Santos policy is to clean up any spills and return the site back to original condition. The EPA has a requirement to report large spills or those that could result in contamination. 6 Communication of information to the community • The committee was asked where they would like information about the proposed upgrade to be available/ advertised to the community? Santos noted that it is holding a series of public events about the proposed upgrade. The public meeting (to be held the next day) was advertised in the local paper and notices about the meeting were placed at the supermarket, bowls club, public notice board in the main street and cricket club. The CAC suggested also putting information at the Newmerella Shell service station and the Santos website. It was noted that the Orbost community is also well contacted on Facebook and that this could be used. The Orbost Show is also a well-attended event. CAC members took brochures to distribute. • Santos has contributed a lot to the local community and its affiliated organisations. The CAC felt however that Santos doesn’t tell many people apart from those organisations. Flyers about Santos and the project suggested as a solution to overcome this. All organisations that Santos supports should be on the mailing list. • Will fact sheets be prepared for materials such as the hydrogen sulphide and biosulphur? Yes. A number of fact sheets will be prepared and made available, including on the website. • How can members of the community access the minutes meeting? Council will receive the CAC meeting minutes as part Development Plan package. These will become public. agreed that the minutes of the CAC do not need confidential. for the of the It was to be • The Terms of Reference for the committee need to be amended to reflect that the minutes will be made public. The revised TORs will be presented for acceptance by the CAC at the next meeting. • Is there an end date for the CAC? It should be included in the terms of reference. The plant will continue to have a committee running into the future and it is up to individuals on the CAC at the moment to decide whether they would like to continue participating. The submission Development Plan Orbost Gas Plant Upgrade 160113 CAC Meeting Minutes.docx 6 of 7 of the Development Plan (due within the next couple of months) will be the end of this particular committee’s direct involvement. • 7 8 Summary of actions to be taken • Santos to advertise the upgrade at the Shell Newmerella and look at the Orbost facebook site. Consideration to be given to upcoming public events such as the Orbost show. • Santos to provide more information at a future meeting about the plant, the flare and bushfires to show that the flare is safe. • Clarification to be provided about how long this CAC would be meeting for and when the Development Plan will be submitted. • The CAC members to consider how to get more female representation on the committee for upcoming meetings (before the next meeting if possible). • Santos to update the CAC Terms of Reference prior to the next CAC meeting. Next meeting • 9 Cr Reeves and the CAC members noted the lack of gender diversity within the committee (only one female) and that consideration should be given to addressing this. Committee members have been asked to make suggestions about how the gender imbalance can be addressed. Tuesday 16th Feb 7.00pm Orbost Bowls Club. Meeting closed Meeting closed at 5.20pm. 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