Crib Point Pakenham Pipeline Landowner Reference Material & Frequently Asked Questions

Transcription

1 Crib Point Pakenham Pipeline Landowner Reference Material & Frequently Asked Questions ISSUE DATE: September 2018 Introduction APA is committed to providing landowners and other project stakeholders with access to relevant project information in a timely and consistent manner. APA adopts the following principles when engaging with directly or potentially affected landowners on our Projects: We will consult regularly with landowners using clear, accurate and easy to understand language. We will comply with all statutory and contractual obligations related to land access. We recognise and respect the rights of landowners and will comply with all reasonable requests regarding land access. We will respect the privacy, property rights and land use activities of landowners. We will negotiate land access and easement agreements in good faith. Any agreement proposed by APA will clearly state what has been agreed between the parties. In accordance with the above, the following list of Frequently Asked Questions (FAQ) has been developed to respond to issues that are relevant to landowners along the proposed pipeline route, in addition to providing general project information. This document will be updated on an ongoing basis during the development and delivery of the project as new information becomes available. Should you require more detailed information, further explanation or have any other questions please make contact with the Crib Point Pakenham Pipeline project team via the project hotline ( ) or contact form on the main project website. TABLE OF CONTENTS 1.0 Key Questions Project Overview Easements and Land Use Pipeline Development/ Construction 8

2 1.0 Key Questions Are there risks associated with the pipeline? What if the pipeline explodes/catches fire? This is a reasonable and common concern. While there are certainly risks associated with transporting any fuel, and safety incidents aren t out of the question, gas pipeline safety regulations in Australia are equal to or more stringent than anywhere in the world. As a result, there have been no recorded injuries or fatalities associated with gas transmission pipeline damage in Australia, and incident rates are significantly lower than overseas. Every gas pipeline is required to be designed to take account the known and proposed land uses and the likely risks in the range of environments through which they pass. APA is required to design, construct and operate the pipeline in accordance with Australian standards and implement systems to monitor the ongoing safety of the pipeline and protect the pipeline from external threats. Will I still be able to use my land? Construction along part of the pipeline route will require access to privately owned land for a short period. While there will be some disruptions to land use during construction, we will consult with landowners to ensure they are minimal. Normal grazing and cropping, including intensive agriculture, can comfortably co-exist with the installed pipeline. APA will provide further information to you about your specific operations and how the pipeline may co-exist with your individual requirements. APA owns and operates over 15,000km of easements for pipelines around Australia and the vast majority of these are located in rural land subject to ongoing grazing and cropping. There are some activities that would be restricted on an easement following construction to protect the integrity of the pipeline. This includes activities such as planting significant trees and building structures over the pipeline. APA is currently in negotiations surrounding land access for the purpose of surveys; these surveys, along with landowner requirements, will inform the final pipeline design. The final design will attempt to mitigate the impacts on private landowners as far as possible. How much road disruption will there be? An inevitable part of all construction is road disruption to some degree. While we cannot give a precise answer now in terms of location and duration as the route is still being finalised, this project is expected to be relatively short, and mostly avoid major roads. Crossings of sealed roads will be undertaken by trenchless crossings, with no impact to the operation of the road. APA will be required to submit traffic management plans to Councils, who will have the final say on measures to mitigate the impacts. Should construction be required within road corridors, APA s consultation processes will include consideration of engagement with affected road users and adjacent residents and business owners. Why aren t you following existing infrastructure easements? It s a good question that is often posed around pipeline route selection. There are several existing linear infrastructure easements and corridors within the area of the pipeline, which reflects the level of industry and development of the region. Co-location of linear infrastructure in many cases is a reasonable strategy to limit the impact of development on land, and APA has sought to include this strategy as a key principle in the pipeline route selection. APA has been able to achieve co-location with other linear infrastructure (such as other oil and gas pipelines and water supply corridors) for approximately a third of the proposed pipeline route. Some infrastructure, however, such as high voltage transmission lines, present technical challenges for co-location over long distances. There is also no linear infrastructure that follows an optimal route between the start and end-points of the pipeline. That is why APA has had to consider other route options to develop a preferred pipeline corridor with due consideration to potential environmental, social, economic, safety and cost impacts. It should be noted that even where the proposed pipeline can be co-located with existing linear infrastructure, APA will still be required to obtain an easement over private land. Has a pipeline route been selected? A proposed pipeline route has been developed. Studies and a range of technical and stakeholder considerations have identified the proposed route from Crib Point to a tie-in point with APA s Longford to Dandenong Pipeline, east of Pakenham. The Longford to Dandenong Pipeline is the nearest point on the existing high pressure gas system in Victoria for APA to connect this pipeline. In selecting the connection point, APA did consider other potential connection locations, including APA s existing liquefied natural gas facility at Dandenong. Due to a range of factors, including technical and land use considerations, the location east of Pakenham was selected as the preferred connection point. How was the proposed route selected? A key objective in selecting the proposed route was to ensure the pipeline will have the least practicable impact on landowners, communities and the natural and built environment. A range of guiding factors were considered for this purpose, including co-location with existing linear infrastructure, environmental values, the number of land parcels and landowners along the proposed pipeline route, and current and future land use considerations. Relevant route selection reports are available at Is the design and route of the proposed pipeline set in stone? Studies undertaken to date have identified the proposed route as being the most suitable to transport gas to market. Several refinements to the proposed route have resulted from engagement with landowners and the outcomes of survey activities. Further refinement of the route may occur through ongoing consultation with landowners and the results of technical studies and other surveys. What size pipeline is proposed and will it be buried? APA is proposing a steel pipeline of 600mm in diameter. The pipeline will be buried at a minimum depth of 1.2m for its entire length, with the exception of the above ground infrastructure at the start and end of the pipeline and two mainline valve locations mid-way along the pipeline. APA will seek to acquire or lease land for the above ground facilities at the start and end of the pipeline due to the larger land requirements for the construction and operation of these facilities. As part of construction, APA will install pipeline marker signs along the pipeline route to indicate the location of the pipeline. The locations of the signs will be determined during the detailed design, though generally these will be placed to maintain line of sight between the signs, at property boundaries and where the pipeline alignment changes direction. The marker signs play an important function in awareness of the pipeline and protection from third party interference. CRIB POINT PAKENHAM PIPELINE -September

3 2.0 Project Overview Pakenham Koo-Wee-Rup Mornington Hastings Crib Point French Island Phillip Island Who is APA Group? APA is Australia s largest natural gas infrastructure business, owning and/or operating approximately $19 billion of energy assets. Its gas transmission pipelines span every state and territory in mainland Australia, delivering approximately half of the nation s gas usage. APA has direct management and operational control over its assets and investments. APA also has ownership interests in, and operates the Allgas gas distribution network, as well as operating the Australian Gas Networks (formerly Envestra Limited), which together have approximately 27,000km of gas mains and approximately 1.3 million gas consumer connections. APA currently owns and operates 15,000km of natural gas pipelines, as well as owning or having interests in gas storage facilities, gas-fired power stations and wind farms. Further information on APA operations and activities is available on the APA website: What is AGL s Crib Point Gas Import Jetty project? AGL is planning a project that will source gas at competitive prices from Australian and international suppliers for their gas customers in south-eastern Australia. The gas would be transported on liquefied natural gas (LNG) ships from interstate and overseas, transferred to another ship and converted from liquid form back into gas on that ship and then piped into the existing transportation network. The ship, known as a floating storage and regasification unit (FSRU), that stores the liquid gas would be moored at the existing jetty at Crib Point. Depending on demand, between 12 to 40 LNG ships per year would moor alongside the FSRU at Crib Point to resupply the FSRU with LNG. The gas import jetty would be connected by pipeline to an existing gas pipeline in Pakenham. The use of LNG ships is an efficient way to transport gas, either internationally or from other states in Australia. LNG shipping technology was developed to enable gas to be transported over long distances where pipelines are not economic. For further information, please visit AGL s project website at: cribpoint Project timeline Initial Stakeholder Engagement Consultation with regulatory agencies and initial meetings with private and public owners of land Completion: Q Obtaining Land Access for Surveys Seek agreement for land access and undertaking specialist investigations Completion: Q Agreement of Pipeline Corridor Seek easement agreements and any required crossing agreements with third parties Completion: Q Completion of Regulatory Approvals Obtain relevant State and Federal government approvals Completion: Q Pipeline Construction Construction and commissioning of the pipeline Completion: Q Pipeline Operation Operate the pipeline for the life ofthe asset Once in operation, there will be little disruption to the local environments along the pipeline route. CRIB POINT PAKENHAM PIPELINE -September

4 APA Assets and Investments When is the pipeline construction and importation of LNG set to occur? AGL is undertaking a feasibility study on the development of a gas import jetty at Crib Point and associated pipeline to Pakenham. A number of key steps need to occur prior to pipeline construction and the importation of LNG. This includes the refinement and finalisation of the pipeline route through detailed technical and environmental investigations and landowner and community consultation. AGL expects to make a final investment decision on the project in mid Should APA successfully obtain all regulatory approvals and AGL proceeds with the project, a final construction timetable will be developed. The timeline (below) is indicative of the likely project development milestones. APA will keep all stakeholders informed throughout the process. What are the other benefits of the pipeline? The pipeline will present other opportunities for the supply of gas to new and existing developments along the proposed pipeline route, with the pipeline being bi-directional to allow gas to flow from Pakenham and the design of the pipeline including an allowance for future offtake valves along the route of the pipeline. CRIB POINT PAKENHAM PIPELINE -September

5 2.0 Project Overview continued Crib Point Pakenham Pipeline: Summary of project stages Initial Stakeholder Engagement Approval of APA Consultation Plan Engagement of affected landowners Meeting with regulatory agencies and other related stakeholders Provision of project related information, discussion on project and collection of relevant information Obtaining Land Access for Surveys Agreement on Pipeline Corridor Completion of Regulatory Approvals APA to seek agreement for land access from affected private and public landowners for studies (for example: geotechnical, environmental and cultural heritage) Clarification of any specific conditions or constraints in relation to land access APA to issue Notice of Intention to Enter Land for Survey Undertake required surveys in accordance with any landowner agreements APA to issue Notice of Pipeline Corridor (as required by the Pipelines Act) to affected landowners APA to consult with affected landowners to negotiate an easement to allow for construction and operation of the pipeline Easement negotiations likely to include discussions relating to pipeline alignment, constuction access arrangements, compensation, rehabilitation of construction disturbance and ongoing access requirements APA undertakes the Pipeline Licence application process. This requires public notification of the Pipeline Licence application (in regional newspaper) and issue of Notice of Pipeline Licence Application to affected landowners once application has been lodged May have additional State and Commonwealth environmental approval processes to complete APA obtains Pipeline Licence, regultory approval of Construction Safety Management and Environmental Management Plans and completes any other secondary approvals Pipeline Construction APA will engage a suitably experienced construction contractor to complete the works Construction will commence once APA has received all requlatory approvals and has obtained easements with landowners Following construction the pipeline will be tested, commissioned and disturbance area will be rehabilitated in accordance with landowner agreements Pipeline Operation and Maintenance Following construction and rehabilitation access requirements are only for infrequent and periodic inspections and maintenance (as required) Anticipated operational period of the asset is approximately 50 years APA will be required to consult with the government and other stakeholders in the future regarding the decommissioning of the asset CRIB POINT PAKENHAM PIPELINE -September

6 3.0 Easements and Land Use What interest in land will APA want for the pipeline do I have to sell my land? No you don t have to sell your land to APA. The appropriate tenure for a buried pipeline is an easement. An easement is an agreement registered on the title of the land that sets out the rights of a pipeline owner to install and maintain the pipeline and also defines the restrictions on the landowner in the area of the easement. The principle restriction on the use of the land in the easement will be not to build structures or to undertake significant excavation without prior approval from APA. Compensation for the easement is payable to the landowner. How wide is the proposed easement? APA will in most instances seek an easement for what is required for the operation of the pipeline. The final easement width is subject to further detailed design, though it is likely to be 15m. In addition to this, APA will require a further 15m working space to form a 30m corridor (and other minor ancillary areas such as truck turn-arounds or lateral access for construction vehicles) for the safe and efficient construction of the pipeline. APA will seek to enter into a temporary licence for the use of this additional land during construction of the pipeline. Can my normal farming practices continue on the easement? The answer in almost all cases is yes. APA owns and operates over 15,000km of easements for pipelines around Australia and the vast majority of these are located in rural land subject to ongoing grazing and cropping. Normal grazing and cropping, including intensive agriculture can comfortably co-exist with the installed pipeline. APA will provide further information to you about your specific operations and how the pipeline may co-exist with your individual requirements. How deep will the pipeline be buried and what sort of machinery weights can I use over pipeline? The pipeline design including its depth of burial is guided by a range of Australian and International Standards. The standard minimum depth for this Pipeline is proposed to be 1.2m of cover from top of pipeline to normal ground level. APA is required to design the pipeline to take account of current and foreseeable land uses so there are likely to be circumstances where the pipeline needs to be deeper than 1.2m to allow for normal machinery weights that landowners use. At what point will you want to negotiate an easement? Subject to the completion of all necessary investigations and the confirmation of a preferred alignment, APA will be seeking to negotiate an option agreement for an easement for the pipeline. The option for the easement will set out all the terms of the proposed easement and the compensation. Once the final decision to build the pipeline is made the option is then exercised, the compensation is paid and the final easement documents are executed and registered on the title for the land. Will I be entitled to compensation for a pipeline easement on my property? Yes. We would pay you a fee for entering into the option agreement. Payment of an upfront option fee is normal practice for projects of this nature. Should the project not proceed and the option is therefore not exercised, the option fee is non-refundable and landowners get to keep the fee. The option agreement will also specify arrangements for compensation. You will be entitled to compensation for the granting of the easement as well as for impacts during construction of the pipeline, such as loss of production. During negotiations we will seek to agree a fair value for compensation based on relevant external advice from valuation and agronomy professionals. We will also agree to cover your reasonable expenses related to legal and valuation advice incurred in negotiating the agreement. Will granting APA an easement affect the value of my property? The compensation payable for the easement will reflect impacts to the market value of the property arising from the registration of an easement over the affected land parcel. Easements and other encumbrances registered on land titles are commonplace for a range of infrastructure including power lines, pipelines and other infrastructure. What can I do on my land during the option period? Business as usual. By agreeing to the easement option, the landowner is granting APA a right to obtain an easement and construct the pipeline at a future date. In the meantime, it is recommended that no permanent structures be built on the proposed easement without consulting APA. CRIB POINT PAKENHAM PIPELINE -September

7 3.0 Easements and Land Use continued Will you pay me for my own time involved in negotiating an agreement? APA s compensation offer would include consideration of the effort involved in negotiating an agreement. APA will attempt to minimise any impacts on a landowners usual business activities by meeting at a time that is most convenient. We will also agree to cover your reasonable expenses related to legal and valuation advice incurred in negotiating the agreement. What about my legal and advisory costs? APA recognises the importance of landowners being properly advised and accordingly APA will pay the reasonable costs of landowners to receive independent and professional legal, valuation and other specialist advice in relation to the proposed easement. APA will just need a basic fee proposal from your advisors prior to committing to costs. APA can pay advisors direct or reimburse landowners for fees we have committed to. Will the compensation arrangement include an ongoing annual payment? The compensation arrangement proposed for the granting of the easement would consist of a one-off payment. No additional annual payments are included. The easement terms would also provide for additional compensation in the future should APA need to undertake activities within the easement outside of normal operations that result in loss, damage or other expenses to the landowner (for example, major repairs or upgrades). What if I don t agree to an easement, will APA seek to compulsory acquire an easement? APA will always negotiate with landowners in a fair and reasonable manner with a view to achieving a commercial agreement. APA is not a statutory authority and does not have the ability to compulsorily acquire land. The Pipelines Act 2005, as the principal piece of legislation, does, however, outline certain circumstances in which lands may become available for compulsory acquisition by the State. This includes where the applicant for a pipeline licence has taken all reasonable steps to enter into an agreement with the owner to acquire the lands or easements and those steps have not resulted in any such agreement. In these circumstances it is the relevant Minister, not APA, who would makes a decision on whether compulsory acquisition occurs. Will I be entitled to compensation if an easement on my land is compulsorily acquired? Yes, in the event of a compulsory acquisition of easement rights compensation would be payable by APA. The details of how this would occur and the value determined are best advised to landowners by their own legal advisors which, APA is able to fund the reasonable costs of. Above: Sheep grazing along a pipeline easement CRIB POINT PAKENHAM PIPELINE -September

8 4.0 Pipeline Development/ Construction What is involved in the construction process? Once design is completed and all approvals granted, the normal pipeline construction process is as follows: 1. Landholder engagement and access approvals Meetings are held with affected landholders to discuss and agree access to their properties during pipeline construction and ongoing operation. 5. Bending Where required, specialised machinery is used to bend the pipe to conform with the contours of the land and the pipeline route. 6. Welding and non-destructive testing Pipe sections are welded together. All welding is tested to ensure quality. 2. Survey, service locating and fencing The pipeline route is surveyed and existing services crossed by the pipeline located and fencing modified to facilitate access during construction. 3. Clear and grade Graders, bulldozers and excavators are generally used to clear and prepare the easement ready for construction to commence. Top-soil and vegetation are stockpiled separately to assist in restoration works after the pipeline is completed. 4. Stringing The pipe is transported in to the easement and laid end to end next to where the trench will be dug. 7. Joint coating The areas of weld are cleaned and pipe joints are coated to reduce the possibility of corrosion. CRIB POINT PAKENHAM PIPELINE -September

9 4.0 Pipeline Development/Construction continued 8. Trenching Specialised trenching machines and excavators are used to dig the trench. 11. Hydrostatic testing Using water, the pipe is pressure tested (hydrotested) to ensure it is fit for operational service. 9. Lowering in and padding Specialist equipment (side booms) are used to lower the pipe into the trench. The pipe is then covered by fine grain material (padding) to protect the pipeline coating from stones or other sharp objects. 12. Restoration and signage Disturbed areas are reinstated to match existing landforms which includes re-contouring and installation of permanent erosion control structures. Topsoil conserved during the construction process is respread over areas used for construction. Rehabilitation is undertaken in accordance with approval requirements and landholder considerations. Signs are placed at regular intervals and with line-of-sight of one another to indicate the presence of the buried pipeline. Restored easement 10. Backfilling The trench is backfilled with the previously excavated subsoil material. Care is taken to maintain separation between topsoil from subsoil during this process. The subsoils are compacted to limit settlement of the trench through the operational life of the pipeline. CRIB POINT PAKENHAM PIPELINE -September

10 4.0 Pipeline Development/Construction continued Is it safe to have a gas pipeline on my property? To ensure the safety of landowners and the community, all gas transmission pipelines in Australia are designed, constructed, operated and maintained in strict accordance with Australian Standard AS2885 Pipelines Gas and Liquid Petroleum. This standard exists to ensure protection of the pipeline, which in turn ensures the safety of the community, protection of the environment and security of gas supply to users. The application of this Standard has maintained an enviable safety record for gas pipeline operation in Australia. Will the pipeline be buried or above ground? The pipeline will be buried for its entire length, typically to a depth of 1.2m or greater, and therefore it is not visible once constructed. We would be happy to show you examples of pipeline right-of-way easements that have been rehabilitated to allow agricultural land uses to continue. The only above ground element of the pipeline will be at valve stations along the route, which will comprise small fenced compounds where the pipe comes out of the ground so that valves and other equipment can be operated. Main line valves are the subject of a more detailed FAQ in this document. Will marker signs be installed within the easement? Once a pipeline has been constructed, the Australian Standard (AS2885) dictates that identifiable markers must be installed. These markers are designed to provide a visual warning regarding the location of the pipeline and are installed along the entire length of the easement. The markers are located to achieve continual line of sight along the alignment and are also required at any bends and either side of crossings such as roads or watercourses. Our project team will work with you to ensure that wherever possible the markers are located to minimise any impact on Typical pipeline marker signs above a watercourse crossing your operations. This may include the use of large format signs on the edge of fields in order to reduce the need for intermediate markers or offset signs along fence lines. Is there any other above ground infrastructure proposed? There will be a small number of surface facilities required along the pipeline, including: Main line valves at two locations on the pipeline alignment. Main line valves allow APA to remotely isolate and vent individual sections of the pipeline during operations and maintenance activities. These valve locations provide for the future offtake to support new and existing development along the pipeline route. Typical Main Line Valve Cathodic protection systems consisting of buried anode beds adjacent to the pipeline which will form a key part of the corrosion management system. As part of the system, APA will require cathodic protection test points every 5km. These are generally located at points with suitable access, such as road reserves. End of line facilities at both Crib Point and a location east of Pakenham to facilitate the pressurisation of gas from the FSRU and injection into the existing Longford to Dandenong Pipeline. Should APA be interested in locating any of the above facilities on your property we will contact you to discuss the specific details of what is proposed. Additional compensation would be payable for the land area required to accommodate such facilities. APA is not seeking approval for compression facilities along the pipeline alignment. What is the pipeline constructed from? The pipeline is constructed from high strength steel, which is coated with a fusion bonded epoxy, anti-corrosion coating. Our land access officers have offcuts of similar pipelines available that they can show you. How will you manage impacts on my farm infrastructure such as dams, irrigation pipes, sheds and tracks? APA will work closely with you to minimise any conflict with existing farm improvements like dams, sheds, access tracks and irrigation infrastructure. Where impacts cannot be avoided, we will work with you to agree on a location for suitable replacement infrastructure. Where buried irrigation infrastructure is crossed, APA will ensure that temporary arrangements are in place during construction and that all pipelines are reinstated. How do you construct the pipeline through rocky areas? One of the factors that was considered during selection of the preliminary alignment was the presence of rocky areas. Preliminary studies have not identified the potential for significant geological constraints APA will be undertaking detailed soil surveys along the preliminary alignment, which, along with consultation with CRIB POINT PAKENHAM PIPELINE -September

11 4.0 Pipeline Development/Construction continued landowners, will provide for the identification of areas of near-surface rock, boulders or rocky outcrops. Where these areas cannot be avoided specialist construction equipment including rock saws will be used to excavate the pipeline trench. In some instances, blasting may also be necessary. Where there is an excess of rock material following excavation we will discuss with you how this is best managed, including options for its placement within the easement, elsewhere on the property or, if required, removed from site. Will you need to bring in additional bedding material for the pipeline? If so, where will it be sourced from? The bedding material for the pipeline will be sourced by screening fines from the trench spoil using specialist machinery. If there is a shortage of suitable material (for example: in rocky areas) additional material may need to be imported to site. Other options will also be fully considered including coatings and other physical mechanisms to protect the pipeline. In the rare event of needing to source material from beyond the easement area, options such as existing borrow pits will be considered in consultation with the landowner. Any importation of material will be subject to appropriate weed and biosecurity protocols. Will there be changes required to my current fences and gates? In the early stages of construction, fences crossing the easement will need to be cut and temporary construction gates installed to enable the pipeline construction process. We will work closely with you to put in place suitable temporary arrangements to manage access and stock movement during construction. Following construction, fences will be re-instated to the former condition and to the satisfaction of the landowner. How long will it take for the pipeline easement to be rehabilitated? An Environmental Management Plan (EMP) will be developed in consultation with relevant government agencies for the construction and operation of the pipeline. Rehabilitation of the easement is undertaken following construction so that it is returned to previous condition within a reasonable timeframe. Activities such as compaction relief, re-spreading of preserved topsoil, reseeding and monitoring for weeds are all part of the rehabilitation process. A recently constructed pipeline easement in Northern Victoria in early stages of revegetation CRIB POINT PAKENHAM PIPELINE -September

12 further information: t e cribpointpakenham@apa.com.au w apa.com.au