STATE EMERGENCY MANAGEMENT PLAN FOR GAS SUPPLY DISRUPTION. June 2013 WESTPLAN GAS SUPPLY DISRUPTION

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1 STATE EMERGENCY MANAGEMENT PLAN FOR GAS SUPPLY DISRUPTION June 2013 WESTPLAN GAS SUPPLY DISRUPTION Prepared by: APPROVED AT SEMC MEETING RESOLUTION NO: 49/2013 DATE OF APPROVAL: 11 June 2013 REVIEW DATE: 11 June 2018 WESTPLAN GAS SUPPLY DISRUPTION Page 1 of 38

2 Contact Officers For copies of this plan, or to provide comments, please contact: Bryon McLaughlin Project Leader, Energy Security Planning and Reliability Strategic Policy and Planning Division Public Utilities Office Level 1 Albert Facey House 469 Wellington Street PERTH Western Australia 6000 Tel: e: Bryon.McLaughlin@finance.wa.gov.au David Burcher Senior Project Officer Planning and Reliability Strategic Policy and Planning Division Public Utilities Office Level 1 Albert Facey House 469 Wellington Street PERTH Western Australia 6000 Tel: e: David.Burcher@finance.wa.gov.au Amendments List AMENDMENT DETAILS AMENDED BY NO. DATE INITIALS 14 June 2011 Initial issue OOE 1 5 March 2013 Full review PUO 2 23 June 2014 Insertion of GBB, IMO & Rio Tinto PUO Copies of this state emergency management plan are available at the following locations: The Public Utilities Office internet site via and The DFES internet site under State Emergency Management - State Emergency Management Committee (SEMC) Extranet at WESTPLAN GAS SUPPLY DISRUPTION Page 2 of 38

3 TABLE OF CONTENTS AMENDMENTS LIST... 2 GLOSSARY OF TERMS INTRODUCTION AIM AND OBJECTIVES SCOPE HAZARD DEFINITION RELATED DOCUMENTS AUTHORITY TO PLAN PLAN RESPONSIBILITIES EXERCISE AND REVIEW PERIODS ORGANISATIONAL ROLES PREVENTION AND MITIGATION RESPONSIBILITY FOR PREVENTION LEGISLATION AND CODES PREVENTION AND MITIGATION STRATEGIES PREPAREDNESS RESPONSIBILITY FOR PREPAREDNESS PLANNING ARRANGEMENTS SPECIAL NEEDS GROUPS RESOURCES TRAINING COMMUNITY EDUCATION ARRANGEMENTS FOR ASSISTANCE FROM OTHER JURISDICTIONS RESPONSE RESPONSIBILITY FOR RESPONSE NOTIFICATION ALERT WARNING SYSTEM LEVELS OF RESPONSE ACTIVATION OF THIS PLAN HAZARD MANAGEMENT STRUCTURE PUBLIC INFORMATION AND MEDIA MANAGEMENT ACTIVATION OF OTHER WESTPLANS FINANCIAL ARRANGEMENTS FOR RESPONSE RECOVERY RESPONSIBILITY FOR RECOVERY TRANSITION TO RECOVERY STAND DOWN AND DEBRIEFS INCIDENT ANALYSIS / REVIEW APPENDICES APPENDIX A - DISTRIBUTION LIST APPENDIX B - PRIORITY ALLOCATION SCHEDULE APPENDIX C COMMITTEE STRUCTURES AND ORGANISATIONAL ROLES & RESPONSIBILITIES WESTPLAN GAS SUPPLY DISRUPTION Page 3 of 38

4 GLOSSARY OF TERMS Alert Warning System Coordinator of Energy Curtailment Emergency Management Emergency Management Facility (EMF) Energy Rationing Gas Emergency Order Gas Emergency Planning Committee Gas Supply Systems Hazard (Generic) Hazard Management Agency (HMA) A colour-coded system that facilitates a consistent approach in assessing and classifying the severity of gas supply disruption events to enable an appropriate level of readiness and response. Under Westplan Gas Supply Disruption, the Coordinator of Energy is the Hazard Management Agency legislatively responsible for the emergency management of a gas supply disruption. (section 23B Emergency Management Regulations 2006). For the purposes of this plan, curtailment is the partial or complete reduction of supply or draw of gas, from a producer, infrastructure operator or large user, either in a voluntary or mandatory manner. Refers to the management of adverse effects of an emergency including: Prevention the prevention or mitigation of the probability of the occurrence of, and the potential adverse effects of, an emergency; Preparedness preparation for response to an emergency; Response the combating of the effects of an emergency, provision of emergency assistance for casualties, reduction of further damage, and help to speed recovery; Recovery the support of emergency affected communities in the reconstruction and restoration of physical infrastructure, the environment and community; psychosocial and economic well-being. A online information service facilitating the sharing of gas market information to assist in the management of a gas supply disruption. Sits within the Gas Bulletin Board administers by the Independent Market Operator. The use of emergency powers through the issue of electricity and gas emergency orders by the Minister for Energy to limit the consumption of energy and to re-allocate supplies to priority uses. An order issued by the Minister for Energy under the Energy Coordination Act 1994 to ration and limit the consumption of a limited supply of gas within the community during a gas supply system emergency. Consists of government and industry stakeholders is an advisory body that assists with the non-operational strategic planning and provision of advice for the emergency management aspects of gas supply disruption incidents. Under Section 24A and Schedule 3 of the Energy Coordination Act 1994, this refers to any distribution system operated within the State and the privatised Dampier to Bunbury Natural Gas Pipeline. Any event, situation or condition that is capable of causing or resulting in loss of life, prejudice to the safety, or harm to the health of persons or animals; or destruction of, or damage to property or any part of the environment. A public authority or other person who or which, because of the agency s functions under any written law or specialized knowledge, expertise and resources, is responsible for emergency management of WESTPLAN GAS SUPPLY DISRUPTION Page 4 of 38

5 a prescribed hazard. Logistics Team Operational Area Manager Operations Management Group Operations Team Operational Area Support Group Planning Team Public Information Team Priority Allocation Schedule State Emergency Management Committee (SEMC) State of Emergency State Emergency Coordination Group (SECG) State Emergency Public Information Coordinator (SEPIC) Provides support for the response to the incident through resource procurement, coordination and management (including human and physical resources, facilities, services and supplies). Leads the Operations Management Group in coordinating the response to gas supply disruption incidents. Responsible for the overall management, provision of strategic direction and operational coordination of agencies during an emergency. Reports directly to the Coordinator of Energy. The principal group responsible for coordinating the response to gas supply disruption incidents under the leadership of the Operational Area Manager. Supports the Operations Management Group through information gathering and analysis; development of policy position papers, preparation and circulation of briefing materials and situation reports and other policy assistance and support as needed. Agency/organisation representatives convened by the Operational Area Manager to provide agency specific information, expert advice and support in relation to the strategic management and recovery of an incident. Responsible for planning the coordinated response to gas supply disruption incidents. The Planning Team forms part of the Operations Management Group and consists of government and industry stakeholders. Supports the Operations Management Group and the Minister for Energy in providing timely information to the community. Provides guidelines on the allocation of a limited supply of energy to priority uses during gas/electricity supply disruptions. The peak emergency management body in Western Australia. Membership includes representatives appointed by the Minister from those organisations that are essential to the State's emergency management arrangements. A legislated declaration for extraordinary measures, within the entire or a part of the Sate, to prevent or minimise loss to life, property and environment. Established during a state of emergency by the State Emergency Coordinator (Commissioner, Western Australia Police) to assist in the response to and recovery from complex emergencies requiring multiagency coordination. Currently the Director of Media and Public Affairs, Western Australia Police, he/she coordinates the provision of media personnel, resources and facilities to assist the Hazard Management Agency in the provision of adequate and timely public information during an emergency. WESTPLAN GAS SUPPLY DISRUPTION Page 5 of 38

6 1 INTRODUCTION In Western Australia, natural gas is used as a fuel for commercial and industrial purposes, resource processing, electricity generation and for residential heating and cooking. Figure one - The Energy Infrastructure and Resources Map shows the major energy resources and infrastructure in Western Australia. The major fields producing natural gas are located within the Carnarvon basin in the State's North West, although domestic gas is also sourced from the Perth Basin. The majority of gas supplied to the domestic market comes from the Woodside operated plant at Karratha with further provision made by the Apache Corporation s Varanus Island and Devil Creek facilities. Brought on-line in January 2012, the Devil Creek plant represents an important strengthening of energy security in regard to the domestic supply of gas in Western Australia. The remainder of the market is accounted for by other smaller suppliers. Gas transmission pipelines deliver domestic gas to consumers across the State. Major pipelines that transport gas from facilities in the North West to residential and industrial users include the Dampier to Bunbury Natural Gas Pipeline (supplying populated areas along the west coast including Perth and the South West), the Goldfields Gas Pipeline (supplying the Goldfields region) and the Pilbara Energy Pipeline (supplying Port Hedland). The South West also receives gas from the Perth Basin via the Parmelia Pipeline. Outside of these major transmission pipelines there are numerous pipelines that transmit gas to less densely populated areas around Western Australia. Some pipelines in turn feed natural gas into distribution systems such as the Mid West, South West (including the Perth metropolitan area), Kalgoorlie-Boulder and Esperance reticulated networks. These distribution networks service residential, commercial and light industrial customers. Major consumers (around 95% of the market) draw gas directly from gas transmission pipelines and are typically electricity generators, gas retailers and large industrial/mineral processing operations. Gas supply can be disrupted by incidents affecting the production, transmission and distribution infrastructure discussed above. This may be a result of plant, equipment or network failure, severe weather events or acts of terrorism. As gas is a major fuel used in electricity generation, a severe gas supply disruption could stress electricity systems when generation from other fuels (coal, liquid fuels, renewable etc) is not adequate to meet demand. Some gas-fired generators can use alternative fuels, such as diesel, in a gas shortage. However, limitations on diesel transportation, storage and replenishment as well as relatively higher costs present challenges in using diesel for electricity generation over a protracted period of time. An important concern in the management of a gas supply disruption is that pressure is maintained in gas transmission and distribution systems supplying communities in the South West. Depressurisation of gas transportation systems can occur if gas output is greater than gas input into the system. Once depressurised, a systematic and time-consuming recommissioning process is necessary before gas supply can be returned to customers. This can significantly extend the period of a gas outage. WESTPLAN GAS SUPPLY DISRUPTION Page 6 of 38

7 FIGURE 1: ENERGY RESOURCES AND INFRASTRUCTURE IN WESTERN AUSTRALIA WESTPLAN GAS SUPPLY DISRUPTION Page 7 of 38

8 1.1 Aim and Objectives AIM: The aim of Westplan Gas Supply Disruption is to detail the strategic arrangements for the management of gas supply disruption incidents, as defined by section 1.3, in Western Australia. OBJECTIVES: The objectives of the plan are to: describe how the incident management framework will operate, specifically how the response effort will be triggered, activated, coordinated, analysed and improved; describe the incident management structure, including the joint industry/government arrangements for the management of gas supply disruption incidents; define the role of the Coordinator of Energy as the Hazard Management Agency (HMA), and other Government and non-government organisations in the operational planning and incident management of gas supply disruption incidents; establish clear notification and communication protocols between operators of the affected gas production and/or transportation infrastructure and stakeholders coordinating the response to gas supply disruption incidents; provide advice on the need for individual persons, businesses and other entities that rely on gas to assess their risks and have contingencies in place to manage them; and identify links with other relevant State emergency management plans and arrangements. 1.2 Scope Emergency management involves the arrangements for the prevention, preparedness, response and recovery phases of an incident. Westplan Gas Supply Disruption provides: the control structure for the preparedness, response and transition to recovery aspects of emergency management; advice on the existing legislation and strategies in place to mitigate against supply disruptions in the State of Western Australia; and details of the States recovery arrangements. for the whole of Western Australia. The plan may be used in conjunction with other Westplans. WESTPLAN GAS SUPPLY DISRUPTION Page 8 of 38

9 When used in conjunction with another Westplan the Coordinator of Energy will maintain full control and ownership of the hazard unless otherwise advised by the State Emergency Coordinator pursuant to section 11 (d) Emergency Management Act Hazard Definition Gas Supply Disruption, for the purposes of this document, is a loss of or interruption to the supply of natural gas that will have significant impact on the community, energy infrastructure, essential services and domestic gas supply systems. A significant gas supply disruption can reduce the supply of gas to industry, the community and critical energy infrastructure. This has the potential to constrain the provision of a range of services (e.g. electricity, gas, transport fuels, water etc), threatening the health and safety of the community. 1.4 Related Documents Documents upon which elements of this plan rely include: Emergency Management Act 2005 Emergency Management Regulations 2006 Energy Coordination Act 1994 Fuel, Energy and Power Resources Act 1972 National Gas Access WA Act 2009 Gas Supply Disruption Response Plan Gas Supply Disruption Communications Plan Emergency Management Facility Communication Protocol State Emergency Management Committee Policy Statements Westplan - Recovery Coordination; Westplan - Public Information Westplan - Liquid Fuel Supply Disruption Westplan - Welfare WESTPLAN GAS SUPPLY DISRUPTION Page 9 of 38

10 1.5 Authority to Plan Under Section 20(1) of the Emergency Management Act 2005, the State Emergency Management Committee (SEMC) is responsible for ensuring the preparation of Westplans it considers necessary. The SEMC has delegated the responsibility to ensure the development and review of the State Emergency Management Plan for Gas Supply Disruption [i.e. Westplan Gas Supply Disruption] to the Coordinator of Energy, Public Utilities Office. 1.6 Plan Responsibilities The development, implementation and revision of the plan is the responsibility of the Coordinator of Energy in consultation with relevant industry stakeholders as deemed applicable Advisory Group The Gas Emergency Planning Committee (GEPC) was established as an advisory body to advise and assist with non-operational strategic planning for the management of gas supply disruption incidents. Details on GEPC and other relevant committees and can be found in Section 6.3, Appendix C. 1.7 Exercise and Review Periods Exercising This plan is to be exercised annually through desktop or simulation exercises in accordance with State Emergency Management Policy (SEMP) 3.1. The formal operational activation of the Westplan may be considered as an exercise in compliance with SEMP Review Westplan Gas Supply Disruption is to be reviewed once every five years or more frequently, if appropriate, in accordance with SEMP Organisational Roles Organisations and agencies with roles under this Westplan are as follows: Coordinator of Energy (Public Utilities Office) Public Utilities Office WESTPLAN GAS SUPPLY DISRUPTION Page 10 of 38

11 North West Shelf Gas Woodside Energy Apache Corporation DBP Transmission APA Group ATCO Gas Australia Western Power System Management Horizon Power Verve Energy Alcoa Alinta Synergy BP Australia RioTinto Independent Market Operator (IMO) Chamber of Commerce and Industry of Western Australia Chamber of Minerals and Energy of Western Australia State Emergency Management Committee Secretariat Department of Health Department of Fire and Emergency Services Department of Premier and Cabinet Western Australia Police The responsibilities of these organisations are outlined in Section 6.3, Appendix C. Please note this list of organisations may change to accommodate new developments in the electricity and natural gas sectors. WESTPLAN GAS SUPPLY DISRUPTION Page 11 of 38

12 2 PREVENTION AND MITIGATION 2.1 Responsibility for Prevention Preventing and mitigating risk of a disruption to gas supply is overseen by several agencies depending on where the affected pipeline or facility is situated. The National Offshore Petroleum Safety and Environment Management Authority (NOPSEMA) has responsibility for the regulation of safety and structural integrity of pipelines situated in Commonwealth offshore waters. The responsibility for safety regulation of pipelines that are located in Western Australia coastal waters (from the three nautical mile limit to the mean low watermark on the mainland) rests with the DMP Resource Safety Division. Previously this function was vested in NOPSEMA and all safety measures under this arrangement remain in place until the designated review point. Safety and structural integrity of onshore pipelines, either on the mainland or on an island, are also the responsibility of the State Government through the Resource Safety Division of DMP. In relation to pipelines, this responsibility extends only to high pressure gas transmission pipelines, primary distribution laterals and compressor and metering stations. The regulation of safety for low pressure distribution networks for commercial and domestic consumption is the responsibility of the Department of Commerce, Energy Safety Division. 2.2 Legislation and Codes The following legislation is relevant to the prevention/mitigation of this hazard: Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Commonwealth); Offshore Petroleum Safety Regulations 2009 (Commonwealth) Petroleum (Submerged Lands) Act 1982; Petroleum Pipelines Act 1969; Petroleum (Submerged Lands) (Management of Safety on Offshore Facilities) Regulations 2007; Petroleum Pipelines (Management of Safety of Pipeline Operations) 2010; Gas Standards (Gas Supply and System Safety) Regulations 2000; and Dangerous Goods Safety Act WESTPLAN GAS SUPPLY DISRUPTION Page 12 of 38

13 2.3 Prevention and Mitigation Strategies The basis for regulating Western Australia s offshore petroleum industry is a safety case approach, which has been introduced nationally. It is based on the premise that the ongoing management of safety is the responsibility of the operator, not the regulator. Placing responsibility for safety with an operator has been shown to be the most effective method for maintaining safety standards in complex, high-risk activities such as hydrocarbon processing facilities. An operator must regularly inspect its facilities, assess risks, provide adequate safety training and comply with every aspect of its safety case. A safety case is a document that describes a facility, provides details on the hazards and risks associated with that facility, and outlines a Safety Management System (SMS) designed to minimise those risks. Up until the early 1990s, the offshore petroleum industry in Australia was regulated by a mixture of State and Commonwealth legislation. Under the legislation, a regulator identified hazards and risks for the industry. However, ever-changing technology and operations meant legislation and regulation needed to be constantly updated. The impetus for change was the 1988 Piper Alpha disaster in the North Sea, which resulted in 167 deaths and substantial financial losses to the UK industry and Government. This incident prompted the decision for Australia to introduce the safety case approach, which was then underpinned by the objective-based Petroleum (Submerged Lands) (Management of Safety on Offshore Facilities) Regulations These regulations were reviewed, updated and integrated with safety regulations for diving and pipelines resulting in the introduction of the comprehensive Offshore Petroleum Safety Regulations Objective-based (or goal setting) regimes, including the safety case system, are based on the principle that the legislation sets the broad safety goals to be attained and the operator of the facility develops the most appropriate methods of achieving those goals. A basic tenet is that the ongoing management of safety is best managed by the operator and therefore should be the responsibility of the operator. The Offshore Petroleum Safety Regulations 2009 set out the requirements for the contents of safety cases. A safety case for a facility must comply with the regulations. The State legislation that applies to waters in adjacent areas, onshore pipelines and facilities adopts the same approach as the Commonwealth legislation to ensure consistency and the maintenance of high safety standards within the industry. Both Commonwealth and State safety regulators apply comprehensive auditing and assessment regimes to verify that the requirements of the legislation are being met by industry. WESTPLAN GAS SUPPLY DISRUPTION Page 13 of 38

14 3 PREPAREDNESS 3.1 Responsibility for Preparedness As the HMA, the Coordinator of Energy is responsible for coordinating preparedness activities for the management of gas supply disruption incidents. The Coordinator of Energy will be assisted by the Public Utilities Office and GEPC, which consists of key government and industry stakeholders. 3.2 Planning Arrangements The following plans have been developed and will be used in the event of gas supply disruptions that threaten the health, safety and property of the community: Westplan Gas Supply Disruption (strategic plan); Gas Supply Disruption Response Plan (operational plan); Westplan Recovery Coordination; Westplan Public Information. The Public Utilities Office will undertake the planning and implementation of preparedness activities in collaboration with GEPC. This includes: establishing a program to test the Westplan - Gas Supply Disruption and the Gas Supply Disruption Response Plan; provision of advice on, and participation in regular exercises; and contributing to response planning and regular reviews of the strategic and operational plans. The HMA may invite other relevant stakeholders to participate in the exercise. Where appropriate, the test exercises may be carried out with other exercises conducted by industry, government and/or by direction from the SEMC. The Coordinator of Energy as the HMA, in compliance with SEMP 3.1, will provide a post exercise report to SEMC, and where required an action plan detailing improvements to the Westplan Gas Supply Disruption and timelines for delivery. The activation of the Westplan Gas Supply Disruption during a real incident will also satisfy the exercise requirement if a post incident report is submitted to the SEMC (SEMP 3.1). WESTPLAN GAS SUPPLY DISRUPTION Page 14 of 38

15 3.3 Special Needs Groups Special needs groups will be identified during an incident through consultation with the Operational Area Support Group (OASG). Details on the Operational Area Support Group are located in Appendix C. 3.4 Resources In the event of a gas supply disruption, the HMA will work with stakeholders gas producers, gas transporters, energy retailers, electricity system operators, large customers, industry associations and government agencies to coordinate the response to the flow-on effects of the hazard. Organisations with roles and responsibilities identified in Section 1.8 of the plan should ensure they have necessary resources in place to effectively meet their obligations during a gas supply disruption. 3.5 Training Organisations with roles and responsibilities identified under Section 1.8 of the plan should ensure their staff are provided with emergency management training, and have a good understanding of procedures and arrangements in the Westplan - Gas Supply Disruption and the Public Utilities Office s detailed operational plan - Gas Supply Disruption Response Plan. Regular exercises conducted by the Public Utilities Office, with input from GEPC, will also contribute towards improving the preparedness of staff with roles in the management of gas supply disruption incidents. 3.6 Community Education As with all physical supply systems, it is not possible to guarantee continuity of gas supply at all times. Industries, businesses and residential consumers reliant on gas or electricity should be aware of the potential exposure to a shortage of energy as a result of a gas supply disruption, assess their own risks and have contingencies in place to manage them in such an event. The Public Utilities Office provides information, reviews and strategic reports on Western Australian energy through its website, publications and participation at events. Online resources such as Western Power s website ( and Switch the Future ( also contain useful information relating to energy saving techniques. While these tips are a valuable source of information in enabling the community to be more energy efficient, they are especially useful during a gas supply disruption in assisting the community to reduce energy use. During a gas supply disruption, media campaigns planned and implemented by the HMA and energy retailers will also assist in providing the community with information and tips on reducing non-essential energy use. WESTPLAN GAS SUPPLY DISRUPTION Page 15 of 38

16 3.7 Arrangements for Assistance from other Jurisdictions Commonwealth Government Assistance The provision of Commonwealth Government physical assistance is dependent upon established criteria and requesting arrangements. All requests for Commonwealth physical assistance are to be made in accordance with SEMP 4.9. Interstate Assistance Given the geographical isolation of Western Australia s gas supply systems, assistance from or to other jurisdictions in relation to the disruption of gas supply is likely to be limited to logistical support in exceptional circumstances. Should it be required, interstate assistance will be arranged via bilateral agreements. Assistance from Overseas Not Applicable. WESTPLAN GAS SUPPLY DISRUPTION Page 16 of 38

17 4 RESPONSE 4.1 Responsibility for Response In compliance with regulation 23B of the Emergency Management Regulations 2006, the Coordinator of Energy is the HMA responsible for coordinating the response to a gas supply disruption. The Coordinator of Energy is supported by the: Public Utilities Office; Operations Management Group - consists of a: o Planning Team; o Operations Team; o Logistics Team; and o Public Information Team. Operational Area Support Group which can provide additional stakeholder advice and support in significant gas supply disruptions. A full list of Operations Management Group and Operational Area Support Group members can be found in Section 6.3, Appendix C. The following sections outline how the plan is activated and the process by which the appropriate level of response to a gas supply disruption is determined. 4.2 Notification The Public Utilities Office, Operational Area Manager [Tel: ] is to be notified as soon as possible if: an emergency response has been activated by a gas producer or gas infrastructure operator (operator); there is an increased risk (perceived or actual) of a significant restriction in gas supply to customers; there is an actual gas restriction that is expected to lead to a curtailment of customers. The impacted gas producer or transporter is to include the following information when notifying the Public Utilities Office: the nature, location and time of the incident; WESTPLAN GAS SUPPLY DISRUPTION Page 17 of 38

18 likely impact on the quantity of gas available; implications for the reliability of the infrastructure concerned; estimated time required to restore normal supplies (if known). The impacted gas producer or operator is to provide the Public Utilities Office with timely situation updates on the risk/restriction in supply, and of the precautionary measures and mitigation options being undertaken. The Coordinator of Energy is responsible for notifying (as required) the: Office of the Minister for Energy; Office of the Premier; State Emergency Coordinator (Commissioner, Western Australia Police), by way of the Executive Officer of the State Emergency Coordination Group (SECG); Stakeholders in the Operations Management Group; Other stakeholders required to assist with the response; and Ensuring the gazettal of emergency declarations or regulations. 4.3 Alert Warning System A colour-coded alert warning system facilitates a consistent approach in assessing the severity of gas supply disruption events and enables an appropriate level of readiness and response as the event escalates. Figure four provides an overview of the alert warning system, the triggers for the alerts and the stakeholder actions agreed with gas producers and gas infrastructure operators. WESTPLAN GAS SUPPLY DISRUPTION Page 18 of 38

19 FIGURE 4: ALERT WARNING SYSTEM LEVEL STATUS TRIGGERS Stakeholder Actions L0 NORMAL OPERATING STATE L1 GREEN ALERT - o INCREASED RISK (PERCEIVED* OR ACTUAL) OF A SIGNIFICANT GAS SUPPLY DISRUPTION *Perceived risk refers to a circumstance where the public or media may infer that a green alert or higher has occurred through visible or audible cues such as abnormal gas flaring, emergency sirens, staff mustering, breach of communication protocols etc. L2 AMBER ALERT - o LIMITED CURTAILMENT OF CUSTOMERS Minor supply and demand imbalances. An emergency response has been activated by gas producer or gas infrastructure operator. Increased risk (perceived* or actual) of a significant restriction in gas production or delivery of gas to customers. Minor restriction in gas production or delivery of gas to customer. No impact on essential users. Negligible impact on line pack. An emergency response has been activated by a gas producer or infrastructure operator. Significant restriction in gas production or delivery of gas to customers. Limited curtailment of customers. Minimal short term impact on line pack. Essential users remain adequately supplied. Heightened risk of a severe supply disruption. Industry: Business as usual, no notification required outside of an incident. Gas producers and infrastructure operators communicate directly with one another and customers to resolve minor demand and supply imbalances. Industry: The affected stakeholder(s) activates its Incident Management Team(s) to respond to the incident based on good industry practice and approved safety cases. The affected stakeholder(s) notifies the HMA of the nature and cause of the incident as soon as is reasonably possible. The affected stakeholder(s) manages media interest and provides the HMA with daily situation reports. Government: HMA increases their visibility and awareness of the situation. HMA to activate internal PUO response teams. Preparation of activities required for the escalation of the incident level. NOTE: No coordinated Government/Industry response required. Industry: The affected stakeholder(s) activates its Incident Management Team(s) to respond to the incident based on good industry practice and approved safety cases. The affected stakeholder(s) notifies the HMA; the pipeline operator, the distribution network operator, gas producers and, at their earliest convenience, their customers. The affected stakeholder(s) is responsible for managing media interest and providing the HMA with daily and as required situation reports. Government: HMA notifies the Minister for Energy and the Operations Management Group that the alert status is AMBER. The Operations Management Group and the Operational Area Support Group are activated. HMA obtains timely information and advice from stakeholders for the development of mitigation and risk strategies L3 RED ALERT - o WIDESPREAD CURTAILMENT OF CUSTOMERS; o THREAT/DISRUPTION TO CRITICAL ENERGY INFRASTRUCTURE AND PROVISION OF ESSENTIAL SERVICES; o THREAT/DISRUPTION TO GAS SUPPLY SYSTEMS An emergency response has been activated by a gas producer or infrastructure operator. Severe restriction in gas production or delivery of gas to customers. Significant curtailment of gas to customers. Actual or imminent threat of an emergency to a supply system. Actual or imminent threat to the supply of gas to essential services. Industry: The affected stakeholder(s) activates its Incident Management Team(s) respond to the incident based on good industry practice and approved safety cases. The affected stakeholder(s) notifies the HMA; the pipeline operator, the distribution network operator, gas producers and their customers as a matter of urgency. Media requests/ statements pertaining to disruption in supply are channelled to the HMA for a coordinated response. Government: HMA notifies the Minister for Energy and the Operations Management Group that the alert status is RED. HMA notifies the State Emergency Coordinator and requests activation of State Emergency Coordination Group. Activation of the Operations Management Group and Operational Area Support Group (if not already active). Operations Management Group to consider introduction of high-level demand restraint measures including those available via legislation. Communications Sub-committee to convene to prepare a coordinated media campaign. HMA retains overall management of media and communications. HMA to evaluate the need to activate State Emergency Support Plans. NOTE: Coordinated Government/Industry response required. WESTPLAN GAS SUPPLY DISRUPTION Page 19 of 38

20 4.4 Levels of Response A gas supply disruption will generally be managed as follows: The Use of Market Mechanisms In the first instance, gas market participants will use market mechanisms to manage their supply and demand. Gas supply in Western Australia is undertaken by commercial entities operating in a competitive business environment. Multiple parties are involved in the production, transportation, distribution and sale of gas. These operations are underpinned by contracts. Technical and commercial arrangements will respond quickly and effectively to a disruption to gas supply, both to re-allocate gas supplies on a commercial basis and to expedite the re-establishment of gas supply. Overall, these arrangements are likely to produce optimum outcomes during a disruption as they allow the commercial parties best equipped to manage gas supply, delivery and sales to undertake the necessary re-adjustments to the market with a minimum of interference. Gas Bulletin Board (GBB) Emergency Management Facility (EMF) Under the Gas Services Information Act 2012 the Independent Market Operator operates and administers the Western Australian GBB and associated EMF. The EMF collects and displays market data for the use in emergencies. The Coordinator of Energy can activate, via a EMF Direction, the EMF as required in a Amber level incident or above. Market participants are required to comply with the directions of the EMF Curtailment Plan When market mechanisms are unable to balance supply and demand gas producers, pipeline operators and retailers will implement a curtailment plan to determine the level of supply as stipulated in contractual arrangements Energy Rationing (Government Intervention) Government intervention is intended to be used as a last resort when curtailment strategies are insufficient to alleviate the shortfall in gas supply, and the incident has escalated into a significant threat to Western Australia s long term gas provision. The Minister for Energy has legislative powers under the Energy Coordination Act 1994 to intervene and control gas supply, including the ability to issue gas emergency orders. These orders are issued to limit the consumption of gas or redirect gas supplies to priority users (per the Priority Allocation Schedule in Appendix 6.2). WESTPLAN GAS SUPPLY DISRUPTION Page 20 of 38

21 The Priority Allocation Schedule provides guidelines on the allocation of a limited supply of gas to priority users during a gas supply disruption. In this situation the primary focus will be on maintaining the integrity of energy infrastructure, followed by the continuance of essential services to maintain the health and safety of the community. In these situations, customers will be provided with advice on energy efficiency initiatives and safety measures, as well as information on the actions required under mandatory rationing. Gas Emergency Orders Section 24A and Schedule 3 of the Energy Coordination Act 1994 pertain to gas supply system emergencies. Gas supply systems include the DBNGP and gas distribution systems that service the community. A Gas Emergency Order is made when there is an emergency relating to a supply system. The objective of an emergency order is to prevent the gas supply of Western Australia being seriously affected, resulting in the endangerment of life and property, or a disruption to a significant proportion of gas users. This is achieved by managing the limited gas supply in the best interest of the State and ensuring the continued integrity of Western Australia s gas supply infrastructure. Gas Emergency Orders are prepared by the operator of the affected supply system and submitted to the Minister for Energy to authorise. Protection of the supply system from depressurisation is regarded as a priority due to the complex and time consuming recommissioning process. Depressurisation can occur if gas output is greater than gas input Additional Emergency Powers (Government Intervention) Further legislative powers exist to assist the state in managing a gas supply disruption. These powers reside within two further Acts and require the declaration of either an emergency situation or a state of emergency by different parties: The Coordinator of Energy (as HMA) may declare an emergency situation under the Emergency Management Act 2005; The Minister for Emergency Services may declare a state of emergency under the Emergency Management Act 2005; and The Governor of Western Australia may declare a state of emergency under the Fuel, Power and Energy Resources Act Emergency Management Act 2005 The HMA is able to authorise officers to make use of various emergency powers through an emergency situation declaration, including directing the movement, evacuation and use of people and property. The declaration of a state of emergency by the Minister for Emergency Services empowers the State Emergency Coordinator to authorise officers to take the same actions as those available to the HMA as well as further specified powers. A full list is available in the Act itself. WESTPLAN GAS SUPPLY DISRUPTION Page 21 of 38

22 Fuel, Energy and Power Resources Act 1972 The Governor of Western Australia may declare a state of emergency under which he has the ability to draft emergency regulations in order to manage a disruption to the supply of energy to the State. This Act takes precedence over all other legislation and is very broad in its scope. These emergency regulations are therefore suited to managing the flow on effects of a serious gas supply disruption where there is a need to coordinate control of the supply of multiple energy types within the state. 4.5 Activation of this Plan Westplan Gas Supply Disruption is always active. The HMA, in consultation with relevant stakeholders, will assess the severity of a gas supply disruption incident to determine its alert status and facilitate an appropriate level of response. 4.6 Hazard Management Structure The following sections describe the management structures at the HMA level and at the state level, in line with SEMP Hazard Management Agency Structure The Coordinator of Energy is the Hazard Management Agency responsible for leading the coordinated response to significant gas supply disruption incidents. The HMA is supported by the Operations Management Group consisting of the: Planning Team; Operations Team; Logistics Team; Public Information Team. In the event of a state-level emergency, the HMA can request additional assistance and resource of the: Operational Area Support Group; State Emergency Coordination Group; State Emergency Public Information Coordinator; and Recovery Services Sub-Committee. Figure two provides an overview of the management structure at the level of the HMA. WESTPLAN GAS SUPPLY DISRUPTION Page 22 of 38

23 4.6.2 FIGURE 2: HAZARD MANAGEMENT AGENCY STRUCTURE Minister for Energy Hazard Management Agency Coordinator of Energy Operational Area Manager Operational Area Support Group Planning Team Operations Team Logistics Team Public Information Team Operations Management Group Minister for Energy The role of the Minister for Energy is to provide resources to the Coordinator of Energy in order to manage an effective response to an incident and its consequences. The Minister owns legislative responsibilities pertaining to supply system emergencies under the Energy Coordination Act 1994 and may also be called on to discharge extra responsibilities under the Fuel, Power and Energy Resources Act Hazard Management Agency [Coordinator of Energy] The Coordinator of Energy is the HMA responsible for the emergency management of a gas supply disruption. The Coordinator of Energy, assisted by the Public Utilities Office is the Controlling Agency for this hazard. Operational Area Manager The Operational Area Manager is responsible for the overall management, provision of strategic direction and operational coordination of agencies during an emergency. In the discharging of his or her duties, the Operational Area Manager will liaise closely with the Coordinator of Energy to ensure all strategies meet both the responsibilities of the HMA and the expectations of the Government. WESTPLAN GAS SUPPLY DISRUPTION Page 23 of 38

24 Operations Management Group The Operations Management Group provides the operational response to an emergency. The structure consists of several teams that provide varying levels of expertise and functionality to the HMA in the mitigation of an emergency. These teams are directly accountable to the Operational Area Manager. Planning Team The Planning Team is the principal group responsible for developing and implementing strategies to combat a gas supply disruption. It consists of industry and Government stakeholders and is led by the Operational Area Manager. Operations Team The Operations Team provides administrative and technical support to the Operations Management Group. Public Information Team The Public Information Team works to develop, implement and monitor an integrated public information campaign. Logistics Team The Logistics Team provides general support for the Public Utilities Office s response teams while ensuring compliance with relevant legislation and government policies. Operational Area Support Group Organisations within this group support the Operations Management Group by providing organisational and market specific information, expert advice and/or operational support, in relation to the strategic management of an incident. Communications Sub-Committee The Communications Sub-Committee works to develop a cohesive and effective public communications strategy to ensure that the public and industry receive concise, accurate and timely information. It comprises industry and Government media representatives and is chaired by the Department of Finance State Emergency Management Structure In the event that coordination is needed beyond that possible through the Hazard Management Agency management structure, the Coordinator of Energy may seek establishment of the SECG in consultation with the State Emergency Coordinator, by way of the Executive Officer of SEMC. The location of the SECG will be determined by the HMA and will be tailored to suit the nature of the incident. The declaration of a Level 3 or RED incident requires a request to be made to the State Emergency Coordinator to activate the SECG. WESTPLAN GAS SUPPLY DISRUPTION Page 24 of 38

25 Figure Three provides an overview of the State Emergency Management Structure that can be utilised for complex emergencies that require a coordinated multi-agency response. FIGURE 3: STATE EMERGENCY MANAGEMENT STRUCTURE Minister for Energy Premier State Disaster Council Minister for Emergency Services Controlling Agency /Hazard Management Agency State Operational Control Coordinator of Energy Chair (SEC) State Emergency Coordination Group Operational Area Manager Operational Area Operations Management Group Chair Operational Area Support Group State Disaster Council The State Disaster Council may be established if a state of emergency is declared under the Emergency Management Act 2005 or as directed by the Premier. Chaired by the Premier, the Council functions to provide prompt and accurate advice to the State Government and the SECG in relation to the state of emergency, liaise with the Australian Government for additional resources and support, and perform any other functions as directed by the Premier. State Emergency Coordination Group (SECG) The SECG may be established by the State Emergency Coordinator, at the request of, or in consultation with the HMA, to assist in the response to and recovery from a complex, state-level emergency requiring multi-agency coordination. The functions of the Group are to ensure the provision of coordinated emergency management by public authorities and other persons, provide advice and direction to public authorities and other persons to facilitate effective emergency management, and liaise between emergency management agencies and the Minister for Emergency Services. The SECG is chaired by the State Emergency Coordinator. Definitions of other entities in Figure 3 have been provided in the previous section (4.6.1) WESTPLAN GAS SUPPLY DISRUPTION Page 25 of 38

26 4.7 Public Information and Media Management Public information provision will be coordinated by the Public Information Team (within the Operations Management Group) with support from a Communications Sub-Committee. The Communications Sub-Committee will represent organisations within the Operations Management Group, the HMA, and key government media advisors including, where necessary, the: Director, Government Media Office or equivalent; Premier s Media Adviser; and Minister for Energy s Media Adviser. In the event the incident escalates beyond the resources of the HMA to adequately undertake the public information function, or where assistance is required, the State Emergency Public Information Coordinator (in consultation with the State Emergency Coordinator and the SECG) can activate Westplan Public Information at the State level. The State Emergency Public Information Coordinator is the Director, Media and Public Affairs, Western Australia Police. Public Information will be provided through media releases/media conferences; television, radio, print and online advertising; social media; and call centres. Where available or required, information provided to the public may include information on: the gas supply/demand imbalance; the likely impact on gas and electricity consumers; the response being taken by government and industry to mitigate the effects of a gas supply disruption; the estimated duration of the disruption; telephone hotlines for residents, staff and businesses impacted by the disruption; advice to the public on energy use and safety; required actions to comply with mandatory rationing (if applicable); and required actions for the safe resumption of gas supply (if applicable). WESTPLAN GAS SUPPLY DISRUPTION Page 26 of 38

27 4.8 Activation of Other WESTPLANS A sustained Level 3 - Red Alert incident has the potential to significantly impact on the community. In consultation with the chair of the Recovery Services Sub-Committee, other state emergency support plans may be activated, including, but not limited to, Westplan Recovery Coordination and Westplan Welfare. Communication, both public and targeted, is expected to be a key strategy particularly in a Red Alert incident. If required, Westplan Public Information may be activated with the agreement of the State Emergency Public Information Coordinator. Note that in the event of a gas supply disruption, Westplan Gas Supply Disruption (this plan) may be enacted in conjunction with other relevant Westplans. For example, in the event of a gas supply disruption associated with an urban fire and/or hazardous materials emergency, the Department of Fire and Emergency Services will take on a response role and operate under Westplan Urban Fire and/or Westplan HAZMAT. Westplan Gas Supply Disruption (this plan) may be enacted in conjunction with: Westplan Liquid Fuel Supply Disruption Westplan - Terrorist Act Westplan - Air Crash Westplan Bushfire Westplan Cyclone Westplan Earthquake Westplan Flood Westplan HAZMAT Westplan Tsunami In the event of the activation of any other Westplan, the designated HMA under that plan will be responsible for the prevention, preparedness, response and recovery elements contained within its scope Westplan Liquid Fuel Supply Disruption Gas in Western Australia is primarily used for energy purposes. In times of a supply disruption, industry will be required to switch to alternative fuels to ensure the continued operations of their businesses. It has been established that there is a strong link between the disruption in the supply of gas and the increased demand for petroleum products, particularly diesel. In times of a gas supply disruption the draw on liquid fuels may exceed the supply capacity and impact on energy production in Western Australia. This may necessitate the use of Westplan Liquid Fuel Supply Disruption. The Coordinator of Energy is the prescribed HMA for Liquid Fuel Supply Disruption. WESTPLAN GAS SUPPLY DISRUPTION Page 27 of 38