QCLNG pipeline monitoring and maintenance

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1 FACT SHEET QCLNG pipeline monitoring and maintenance QGC Pty Limited, the Australian subsidiary of BG Group, is developing natural gas from coal seams in the Surat Basin of southern Queensland for domestic and export markets through its Queensland Curtis LNG (QCLNG) Project. This fact sheet provides important information on monitoring and maintenance to ensure the safe operation of the QCLNG pipeline. Stringent regulations and standards QGC has a responsibility to monitor and maintain the pipeline and easement for the life of the project. The QCLNG pipeline is operated in accordance with the Petroleum and Gas (Production and Safety) Act 2004 (QLD), The National Gas (Queensland) Act 2008 and Australian Standard 2885 (AS2885). Safety Steel pipelines are a safe way to transport natural gas. As with all of QGC s activities, safety is paramount and the following measures are in place to ensure the safe operation of the pipeline: Depth of cover: Depending on the terrain and the type of activity on the property, the depth of cover varies from around 0.75 metres to 1.5 metres. Warning signs: Each sign is within sight of the next along the length of the pipeline. Corrosion protection: The pipeline is externally covered with an epoxy coating to prevent corrosion. An electric cathodic protection system has also been installed as an additional protection measure. Emergency shutdown systems and response crews: Remotely activated main line closure valves have been installed along the pipeline around 90 kilometres apart. In accordance with legislative requirements, QGC has designated pipeline crews that are trained to respond in the unlikely event of an incident and who work closely with local emergency services. QGC Operations Centre: The operation of the pipeline is constantly monitored by the QGC Operations Centre in Chinchilla, and has a designated emergency phone line for landholders and the community (see back page for contact numbers). The Operations Centre monitors gas pressure, temperature and cathodic protection systems. Patrols: Regular patrols are undertaken by air and land to inspect the easement and associated infrastructure to ensure the pipeline is operating safely. Pipeline specifications Pipeline: 540 kilometres Diameter: 42 inches or 1.07 metres Burial depth: up to 1.5m Operating pressure: 6,500 kpa to 9,500 kpa Operating life: 40 years

2 QGC has a responsibility to maintain and monitor the easement for the life of the project.

3 Bruce Hwy BANANA BILOELA THANGOOL MT LARCOM Dawson Hwy Bruce Hwy Gladstone Monto Rd GLADSTONE REGIONAL COUNCIL Pipeline 78km Kalpo war Rd Gladstone Monto Rd tt Hwy Burn e MONTO t Hwy Burnet Burnett Hwy Dawson Hw y Field Compression Station: Removes water and impurities and compresses the gas. Central Processing Plant: Removes the last traces of water and further compresses the gas. GLADSTONE Capricorn Hwy Main line valves: Control the flow of gas and can isolate specific sections. Receipt and delivery stations: Further remove impurities and measure gas. DELIVERY STATION & LNG PLANT Baralaba Woorabinda Rd Baralaba Rannes Rd Dawson Hwy

4 Burnett Hwy Monto Mt PerryRd SHIRE COUNCIL Pipeline 73km CRACOW WANDOAN EIDSVOLD Eidsvold Theodore Rd Burnett Hwy NORTH BURNETT REGIONAL COUNCIL Pipeline 107km MUNDUBEBRA MUNDUBBERA Mundubbera Durong Rd WESTERN Eidsvold Theodore Rd CENTRAL PROCESSING PLANT FIELD RECEIPT

5 MacAlister Bell Rd Chinchilla Wondai Rd Kingaroy Jandowae Rd Dalby Dalby Cooyar Rd Bunya Hwy Jandowae Rd Daandine Nandi Rd MILES DOWNS REGIONAL COUNCIL Pipeline 282km CHINCHILLA CONDAMINE QCLNG pipeline and facilities Regional boundary Main road / highway Gas Collection Header Export Pipeline DALBY le Norwin Rd Dal by Cecil Plains Rd COMPRESSION STATION STATION This map is for illustrative purposes only. Kogan Condamine Rd Dalby Kogan Rd CENTRAL PROCESSING PLANTS Condamine Meandarra Rd Moonie Hwy FIELD COMPRESSION STATIONS

6 Monitoring and maintenance QGC is required to monitor and maintain the pipeline in line with legislation and our own safety procedures. The pipeline is primarily monitored remotely by the QGC Operations Centre in Chinchilla, reducing the need for frequent physical inspections. The QGC Operations Centre monitors gas flow and volume of gas within the pipeline. Any imbalance is immediately identified and investigated to ensure pipeline safety. The QGC Pipeline and Easement Monitoring Guide (see table below) details the types of activities undertaken to maintain the pipeline and ensure it is operating safely. The frequency of monitoring depends on operational requirements and weather conditions. QGC may need to access the easement outside the normal schedule for emergency situations, correct an issue discovered on a previous inspection, or to inspect and repair any damage after an extreme weather event. QGC Pipeline and Easement Monitoring Guide Activity Easement Inspections Variation of surface conditions such as erosion or subsidence Dead vegetation or encroachment that may affect access Third party activities on or near the easement Condition of pipeline markers, signs, gates and locks Declared weeds Access Monitoring will primarily be by light vehicle The easement will be accessed via boundary gates Main Line Valve Sites Inspection Gas meter and pressure readings General maintenance checks Cleaning, Corrosion and Integrity Checks Internal inspection by pipeline inspection gauge Pipeline Gas Emissions Above ground gas emissions monitoring will be by air utilising infrared monitoring Monitoring will be by air No easement access required QGC s Operations Centre in Chinchilla Start of the QCLNG pipeline near Dalby

7 QGC weed wash down Workers at QGC s Receipt Station near Wandoan Environmental management QGC has a responsibility to maintain and monitor the easement for the life of the project. The ongoing environmental management of the easement will be in accordance with state and federal government regulations. Vegetation regeneration and soil stabilisation on the easement is an important part of the reinstatement process. The regeneration and stabilisation can take a few years and is dependent on the type of vegetation and rainfall patterns. During this time QGC will continue to monitor the easement and remedy any areas that have not stabilised sufficiently. QGC will also continue to monitor and manage weeds on the easement over the life of the project. QGC s weed management practices involve planning for avoidance, chemical or mechanical control and a vehicle hygiene program. The monitoring will specifically focus on Class 1 and 2 declared weeds and locally significant weed species. A declared weed means a plant that is a declared pest under the Land Protection (Pest and Stock Route Management) Act 2002 (Qld). Under QGC s weed hygiene program, vehicles are required to wash down when they leave a property where nominated weeds are present. QGC maintains detailed mapping of weed locations, and personnel plan their travel in accordance with the weed risk identified in these maps. QGC s weed hygiene program requires that all vehicle hygiene inspection reports be logged and be made available on request. Only personnel who have completed nationally accredited training in vehicle and machinery inspection and cleaning are authorised to verify inspection reports. Easement access QGC will continue to access the easement in accordance with the Land Access Code, the Petroleum and Gas (Safety) Act 2004 (Qld) and the terms of the easement agreement. In addition, QGC also follows a comprehensive land liaison procedure based on integrity, fairness and respect. QGC is not usually required under the terms of its easement agreement to notify landholders in advance of our routine monitoring and maintenance activities on the easement. Nevertheless we will attempt to notify landholders of our intent to access the easement about 48 hours in advance. In an emergency, preservation of life and property will take priority. All authorised QGC personnel will access the easement via external entry points from public roads. The boundary gates will be secured using two chains and two locks, which will be provided by QGC. The landholder will have exclusive access to one lock and QGC will have exclusive access to other lock (as shown below). Locking of the boundary gates will ensure the easement remains secure at all times. Gate Lock System LANDHOLDER LOCK Natural gas from coal seams is typically 98% methane in QGC s tenements. Methane is colourless, odourless and tasteless. QGC LOCK QGC will supply the chains and locks to the landholder.

8 Working near the QCLNG Pipeline Landholders planning to do any digging on the easement should call Dial Before You Dig to obtain the specific location of the buried pipeline and associated infrastructure. For the following activities landholders can continue to operate their business as usual on or near the pipeline easement: Grazing Cultivation of crops Top dressing and pasture seeding Controlled burning practices Non-soil disturbance weed control Transporting or traversing of heavy vehicles or machinery within Queensland Road Weight Limits at designated crossing points Non-intrusive recreational activities In accordance with individual landholder easement agreements, prior written agreement is required from QGC for any of the following activities: Digging greater than 300mm, including ploughing and deep ripping Building of any structures, pits, wells, bores, dams, paved roadways, pipelines, fences and cables Changing the ground surface level Planting of vegetation with deep roots Transporting or traversing of heavy vehicles exceeding Queensland Road Weight Limits across or along the easement Blasting or seismic survey within one kilometre of the easement No activity must be undertaken which would jeopardise the safety or operation of the pipeline. Under Queensland law, penalties apply if a person conducts any non-approved work within or near a pipeline easement and/or damages, interferes with any part of a pipeline. In the event of an emergency or natural disaster (flood, bushfire, etc), call 000 or 112 from a mobile. QGC Operations Centre Call Report any of the following: Pipeline emergencies Damage or vandalism to pipeline or facilities Flooding, subsidence, washouts or erosion Unauthorised access to easement or facilities Uncontrolled fire Dial before you dig Call 1100 If you plan to do any work on the easement. It takes approximately 32 hours for the gas to be transported from the gas fields near Chinchilla to the liquefied natural gas (LNG) plant in Gladstone. About QGC QGC is a leading Australian coal seam gas explorer and producer focused on developing reserves in both the Surat and Bowen basins for domestic and international supply. Our headquarters are in Brisbane and we employ more than 7,300 people across Queensland. In 2011, QGC produced about 20% of Queensland s gas demand. QGC is wholly owned by BG Group, a leading oil and gas company with headquarters in the United Kingdom and operations in more than 25 countries. Our commitments We seek to minimise the effects of our operations on landholders and make a positive contribution to the protection of the environment. We run our business in accordance with all government regulations, industry standards and the access rules that we agree with landholders. Our staff, contractors and consultants follow QGC s Code of Conduct, outlined in the Information for Landholders booklet and available at our website: Contact details Please contact QGC for more information (toll-free) community@qgc.com.au QGC Pty Limited 275 George St Brisbane QLD 4000, Australia

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