NSW Department of Energy, Utilities and Sustainability

The Department is responsible for the oversight of legislative requirements of safety and integrity of licensed pipelines – oil, gas and petroleum - within the state of New South Wales.

Under the Pipelines Act 1967, any person who wishes to construct and operate a prescribed pipeline for the purposes of conveying oil, gas or petroleum, must do so under an authorisation or Licence. Requirements of the Act and associated Regulations must be met in all respects.

Under the Pipelines Regulation 2005, all pipeline operators must develop and implement a Safety and Operating Plan, which is then used to monitor the ongoing performance of the pipeline operator.

Not all pipelines are required to be licensed and these include, but are not limited to:

a pipeline constructed or to be constructed under another Act, such as the Gas Supply Act 1996, or the Petroleum (Onshore) Act 1991.
a pipeline constructed or to be constructed by a public authority,
a pipeline constructed or to be constructed for the purpose of draining or irrigating land,
a pipeline of the prescribed class constructed or to be constructed for the conveyance of dangerous goods within the meaning of the Dangerous Goods Act 1975,
any pipeline so determined by the Minister for Energy and Utilities not to be a pipeline as prescribed under the Pipeline Act 1967.

There are currently 28 licensed pipelines operating in New South Wales, with a combined length of greater than 4800 km.

The Department, under legislation, administers and monitors the licensing, the applications and matters relevant to the safety and integrity of each pipeline.

Safety

Licensed oil and gas transmission pipelines are designed, constructed, operated and maintained in accordance with: -

Australian Standard AS 2885 – 1997 – "Pipelines – Gas and liquid petroleum"
Part 1 – Design and Construction
Part 2 – Welding
Part 3 – Operation and maintenance
Part 4 – Submarine Pipelines
Part 5 – Field Pressure Testing

Other pipelines may be designed to standards approved by the Director –General of the Department; however operation will be in accordance with AS2885 Part 3.

Under the Pipelines Act 1967 and the Pipelines Regulation 2005 all Pipeline Licensees are required to lodge a Safety and Operating Plan (SOP) with the Department.

The Pipelines Regulation requires the SOP must comply with the requirements set out under AS 2885 Part 3 - Operation and Maintenance. The Pipelines Regulation also requires for Pipeline Licensee to monitor their performance and procedures by conducting periodical independent 3rd party audits of there Safety and Operating Plan.

The Auditor is required to certify the SOP and the Pipeline Licensee must lodge the Auditor's Report and Certificate with the Director-General of the Department of Energy, Utilities and Sustainability. The Pipeline Licensee is required to specify how and within what timeframe they will address any issues found by the Auditor.

The Auditor's Report and Pipeline Licensee's proposed corrective actions are reviewed by Department staff to ensure the pipeline safety performance remains acceptable.

Conveyancing

The Department of Energy, Utilities and Sustainability's role is to add and delete parcels of land affected by either pipelines or easements for pipelines, from the Central Register of Restrictions Database.

We also receive applications from interested parties to search for pipelines on parcels of land in NSW, to find out if land is, or will be, affected by pipelines in the future.

Performance Reporting

The Pipelines Regulation 2000 requires all Pipeline Licensees to lodge an Annual Report on the performance of the pipeline safety management system. The Report is to comply with the reporting template below.

These reports are reviewed by Department staff to ensure the pipeline safety performance remains acceptable.

Environmental Management

Pipelines licensed under the Pipelines Act 1967 are subject to environmental assessment in accordance with Part 5 of the Environmental Planning and Assessment Act 1979.

Under this the Minister for Energy is the Determining Authority; however as a matter of policy the Minister requests advice from the Minister for Planning.

Based on the outcomes of the environmental assessment the Pipeline Licensee is required to develop and implement an Environmental Management Plan (EMP) for the construction and operation of the pipeline.

Although a stand alone document, the EMP forms part of the Pipeline Licensees safety management system and is integrated in to the pipeline's Safety and Operating Plan.

Legislative Framework

Implement a timely and efficient approvals system to facilitate the construction of cross-country transmission pipelines in New South Wales;
Ensure the effect of a pipeline project commenced under the Act on the environment, landowners and native titleholders is properly considered and managed;
Ensure pipeline licensees protect the environment, pipeline employees and the public from dangers arising from both pipeline construction and the transmission of potentially hazardous substances.