30 April 2007
Key Points:
Pipeline licence proponents will need to familiarise themselves with the new regime in order to ensure compliance with the various new requirements in the pipeline licence process, as well as the construction and operation phases of a pipeline.
A new pipelines regime consisting of the Pipelines Act 2005 (Vic) and the Pipelines Regulations 2007 (Vic) came into force on 1 April 2007. This new regime replaced and repealed the Pipelines Act 1967 (Vic) and the Pipelines Regulations 2000 (Vic) and introduces some changes to the pipeline licence application process and the obligations for those constructing and operating a pipeline.
Key changes
Pre-licence process
The key changes of the pre-licence process include requiring proponents to complete a notice of intention to enter land for the purpose of survey, which must include the details of the proposed survey, the intended use of the proposed pipeline, and a map of the proposed route of the pipeline over the land. These notice requirements apply to both crown and private land.
The Act also requires proponents to give notice to landowners and occupiers of land of a proposed pipeline corridor. The form of that notice is contained in the regulations. Essentially, proponents of a pipeline licence are required to consult with relevant stakeholders at a much earlier stage in the pipeline licence application process.
Pipeline licence application process
There are also changes to the pipeline licence application process including new fees and a streamlined application process. The new fee structure aims to provide cost recovery and will be assessed according to (amongst other things) pipeline length and whether the pipeline is required by statute. The application for a pipeline licence will now be by a single form which incorporates both the application for a permit to construct and a licence to operate the pipeline.
Safety and environment
The new regime aims to minimise risks to public safety and to the environment by requiring pipeline licensees to develop and submit Safety Management Plans and Environmental Management Plans, which must contain the minimum content prescribed in the regulations. This Safety Management Plan must include a description of the pipeline, a safety assessment, a response plan, a construction and operating safety plan specifying work and staffing systems as well as requiring. Furthermore, new performance standards, reporting requirements and record keeping requirements for the inspection and surveillance during the construction and operation of a pipeline will also be imposed.
The Environmental Management Plan must contain a description of the pipeline, a description of environmental impacts and risks, an implementation strategy identifying specific systems, practices and procedures to be used to minimise environmental harm.
The Environmental Management Plan must also include a report on all consultation carried out between the licensee and relevant entities as well as environmental performance objectives and standards.
For existing pipeline licensees and permit holders, Gas Safety Cases, Safety Operating Plans, Construction Safety Plans and Environmental Management Plans already submitted and approved will be deemed as meeting the requirements under the new regime for the development and submission of a Safety Management Plan and Environmental Management Plan.
Costs and benefits
The public benefits of the new regime focus on improving safety and minimising environmental damage. Pipeline licensees will incur costs through increased allocation of resources to deal with the extra reporting and notice requirements as well as the development of safety and environmental plans. Similarly, the adoption of a cost recovery principle in the calculation of licence fees will result in increased costs to pipeline operators and licensees.
Conclusion
Pipeline licence proponents will need to familiarise themselves with the new regime in order to ensure compliance with the various new requirements in the pipeline licence process, as well as the construction and operation phases of a pipeline. While there will be some increased costs for these proponents through increases in the allocation of resources and fees, these costs do not appear to be significant.
For further information, please contact Andrew Smith.
