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Memorandum of Understanding Department of State Development, Business and Innovation - Earth Resources and Energy Safe Victoria

Please note: As of 1 January 2015, the Department of State Development, Business and Innovation became part of the Department of Economic Development, Jobs, Transport and Resources. The Earth Resources division is now Earth Resources Regulation.

Download the PDF version of this document: Energy Safe Victoria

Contents

Parties

  1. Objectives of the parties
  2. Purpose of the memorandum
  3. Term
  4. Mutual Intentions
  5. Notification
  6. Exchange of information
  7. Audits, Inspections and incident investigation
  8. Prosecutions and appeals
  9. Consultation
  10. Confidential information
  11. Privacy
  12. Freedom of information
  13. Ownership of information
  14. Review of the MOU
  15. Amendments or variations
  16. Disputes
  17. Termination of the MOU

Schedule 1
Summary of the functions of Earth Resources (DSDBI) and ESV in the administration of the Pipelines Act 2005

This Memorandum of Understanding (MOU) is between:

The Department of State Development, Business and Innovation - Earth Resources, the authority responsible for administering various legislation including but not limited to the Pipelines Act 2005 ('the Act'), the Petroleum Act 1998, the Petroleum (Submerged Lands) Act 1967 (Cth) and Petroleum (Submerged Lands) Act 1982 (Vic).

and

ENERGY SAFE VICTORIA ABN 27 462 247 657, the statutory authority responsible for administering various legislation including but not limited to the Gas Safety Act 1997, occupational health and safety and various aspects of the environment under the Act.

1. Objectives of the parties

1.1 The objectives of the parties are to ensure -

  1. the construction and operation of transmission pipelines under the Act occurs in a safe and sustainable manner;
  2. the delivery of a consistent and comprehensive safety and environmental regulatory regime under the Act and that duplication of activities are avoided as far as reasonably practicable.

2. Purpose of the memorandum

2.1 The purpose of this MOU is to assist in building a productive partnership between Energy Safe Victoria (ESV) and The Department of State Development, Business and Innovation (DSDBI) for the effective and efficient administration of pipeline safety and environment management related to the Act

2.2 This MOU sets out the common intentions of the parties to meet the objectives outlined in paragraph 1. The MOU is not intended to create legally enforceable obligations between the patties but sets out mutually agreed voluntary undertakings.

3. Term

3.1 This MOU is effective from 1 August 2007 as amended form time to time and continues until 31 December 2009 unless terminated earlier by the parties in accordance with this MOU.

3.2 Consideration of a new MOU will be commenced by the parties four months prior to the expiration of this MOU and completed no later than 31 December 2009.

3.3 If the parties fail to agree to enter into a new MOU by 31 December 2009, this MOU will continue until a further MOU is entered into or the MOU is terminated under clause 17.

4. Mutual Intentions

4.1 The parties agree to establish and maintain contact to ensure the effective operation of this MOU. As soon as possible after the signing of this MOU, the parties will advise each other of the name and position of their nominated contact officer and their contact details to whom any communications about this MOU and Schedules is to be addressed. The parties have nominated a contact officer for matters under this MOU as outlined in Schedule 1.

4.2 Any changes to a party's nominated contact officer or their contact details are to be communicated to the other party as soon as possible.

4.3 All communication about the operation of this MOU is to be made through the respective contact officers for Earth Resources and ESV as nominated from time to time.

4.4 The parties agree to provide to each other from time to time, information of their roles and responsibilities in areas of potential overlap, and any expected changes to legislation or regulations that may impact on the way in which the parties carry out their pipeline responsibilities.

4.5 The parties agree to consider the interests of the other party in carrying out their responsibilities and consult the other party in relation to any decision or action that may impact upon the responsibilities of the other party.

4.6 The parties will provide mutual assistance on pipeline engineering matters relating to the Petroleum Act 1998, the Petroleum (Submerged Lands) Act 1967 (Cth) and Petroleum (Submerged Lands) Act 1982 (Vic).

5. Notification

5.1 ESV will notify Earth Resources as soon as reasonably practicable of any:

  1. acceptance of a Safety Management Plan or Environment Management Plan any proposed revisions,
  2. consent to operate a pipeline
  3. notice served on a licensee
  4. incidents that may have safety, environmental, rehabilitation or community implications
  5. change in use of pipeline;
  6. directions issued by ESV under powers delegated to ESV

5.2 ESV will notify the Department as soon as reasonably practicable if it intends to take any action to:

  1. issue a direction that may have environmental or rehabilitation implications;
  2. issue a direction that may cause a pipeline operation to shut down or may materially impact on the operation of a pipeline;
  3. formally investigate an incident, complaint or alleged breach of the Act or regulations;
  4. prosecute an operator for a breach of the Act or regulations

5.3 The Department will, as soon as reasonably practicable, notify ESV of any:

  1. approval of a Consultation Plan
  2. granting of a licence
  3. acceptance of an Environmental Management Plan and any proposed revisions,
  4. notice served on a licensee
  5. incidents that may have safety, environmental or community implications
  6. setting of a rehabilitation bond, variation or return of a rehabilitation bond
  7. alteration of an authorised route
  8. amendment to any conditions consolidation or transfer of any pipeline licences
  9. surrender or cancellation of a pipeline licence

5.4 The Department will notify ESV as soon as reasonably practicable if it intends to take any action to:

  1. issue a direction that may have safety implications;
  2. formally investigate an incident, complaint or alleged breach of the Act or regulations that has safety implications; or
  3. instigate prosecution of an operator for a breach of the Act or regulations that has safety implications;

6. Exchange of information

6.1 ESV will provide the following information to the Department as soon as reasonably practicable after it has been prepared:

  1. results of any formal investigations and audits that it conducts into a failure by an operator to comply with its legal obligations or any incident that may be of interest to the Department.

6.2 Earth Resources will provide the following information to ESV as soon as reasonably practical after it has been received:

  1. results of any formal investigations and audits that it conducts into a failure by an operator to comply with its legal obligations or any incident that may be of interest to ESV.

7. Audits, Inspections and incident investigation

7.1 The parties may jointly conduct audits and inspections of pipelines for which both parties have a direct regulatory responsibility with the objective that, as far as practicable, duplication or overlap of audits and inspections is minimised.

7.2 Where it is necessary for a party to conduct an urgent audit or investigation of an incident which may impact on the jurisdiction of the other patty, the party proposing to conduct the audit or investigation will notify the other party as soon as practicable of their proposed
action.

7 3 Both parties agree to exchange information on audits and the investigation of incidents in which they are interested, including information on the outcome of audits and investigations and any potential outcome for systemic improvements to industry operational management systems.

8. Prosecutions and appeals

8.1 Both parties agree to consult with each other through their nominated contact officers prior to the commencement of a prosecution in which the parties may have an interest.

8.2 Where an investigation discloses that offences involving the jurisdiction of both parties may have occurred from the same set of facts and circumstances, the parties agree to consult with each other to determine the most appropriate jurisdiction for prosecution. Where both patties agree, joint prosecutions may be undertaken.

9. Consultation

9.1 The patties will consult each other in the preparation of any relevant guidelines, codes of practice, or guidance notes, protocols or similar material that are developed to assist operators and tenement holders to meet their legislative obligations.

9.2 The patties will advise each other of any proposed changes to their policies, legislation or regulation that impact on the safe operation of licensed pipelines.

9.3 The parties agree that the relevant Directors or nominated officers will meet at least annually to discuss matters relevant to the parties under this MOU.

9.4 All parties will bear their own costs in relation to the operation of this MOU.

10. Confidential information

10.1 With respect to any information supplied by one party to the other in connection with this MOU and designated as confidential, each party agrees to:

  1. maintain the confidential use, disclosure and security of the confidential information consistent with relevant privacy laws and any applicable professional standards;
  2. use or disclose confidential information to persons required to give effect to the purposes set out in this MOU.

10.2 The obligations imposed on the parties by paragraph 10.1 shall not apply to information that is:

  1. publicly available;
  2. already known or in the possession of the other party;
  3. disclosed by either patty to a third party without restriction;
  4. authorised in writing by a patty to be disclosed to the other party; or
  5. disclosed to a party's professional advisers who have agreed to keep the information confidential.

10.3 If a patty is uncettain whether information provided by the other patty is confidential, the information shall be treated as confidential until otherwise advised by the party who has provided the information.

11. Privacy

11.1 The patties agree to:

  1. Ensure that any personal or health information as defined in the relevant privacy legislation that is used or disclosed under this MOU has been collected in accordance with the applicable privacy legislation.
  2. (b) Ensure that any personal or health information collected in connection with this MOU is not used, disclosed, stored, or transferred except in accordance with the applicable privacy legislation.
  3. (c) Use personal or health information held or controlled by them in connection with this MOU only for the purposes of fulfilling their obligations under this MOU.
  4. (d) Take all reasonable measures to ensure that personal and health information in their possession or control in connection with this MOU is protected against loss and unauthorised access, use, modification or disclosure.
  5. (e) Ensure that any person who has access to any personal or health information is made awat'e of, and complies with the requirements of the relevant privacy laws.
  6. (f) Comply in so far as is practicable with any policy guidelines or direction by a patty or issued by a Privacy Commissioner from time to time relating to the handling of personal or health information.
  7. (g) Ensure that any record (as defined by a privacy law) containing personal or health information provided under this MOU will, at the expiration or earlier termination of this MOU, be either returned to the other party or deleted or destroyed by a person authorised by the parties to undertake the deletion or destruction.

The parties agree not to use, disclose, store, or transfer personal or health information collected in connection with this MOU except in accordance with the applicable privacy legislation; and

11.2 The parties agree to co-operate with atty reasonable request from a party to this MOU relating to the protection of personal or health information or the investigation of a complaint about the handling of personal or health information.

12. Freedom of information

12.1 In carrying out atty responsibilities under freedom of information (FOI) legislation, a patty will have regard to the interests of the other patty and will consult with them if a patty proposes to take any action relating to an FOI request that may have an impact on the interests of the other party.

13. Ownership of information

13.1 All original documents (including written, visual or electronic forms) will remain the property of the originating party.

13.2 The parties agree to acknowledge the source of all documents used by the patties in carrying out their responsibilities under this MOU.

14. Review of the MOU

14.1 The nominated contact officers will jointly review the operation of this MOU annually or as otherwise agreed in writing between the parties.

15. Amendments or variations

15.l A party intending to amend or vary any of the terms or obligations of this MOU must provide 28 days written notice to the other party of the proposed amendment or variation including the reason for the proposed change.

15.2 This MOU may only be amended or varied by a further MOU in writing and signed by the parties.

15.3 An amendment or variation to the MOU takes effect on the date it is signed by the parties or on a date agreed by the parties in writing.

16. Disputes

16.1 Where an issue arises between the parties in relation to any matter in this MOU, the nominated contact officers will meet to attempt to resolve the issue within 28 days. Where the nominated contact officers are unable to resolve the issue, the Director of Energy Safe and the Executive Director, Minerals and Petroleum, Earth Resources will undertake to resolve the issue.

17. Termination of the mou

17.1 If a party wishes to terminate this MOU they must, after consulting with their Minister, give 28 days notice in writing to the other party of their intention to terminate the MOU. This notice must include the reasons for termination and any proposed transitional arrangements.

17.2 Both parties may agree in writing to terminate this MOU at a date agreed by the parties.

Executed on the 30th day of July 2007

Richard Aldous,
Executive Director Minerals and Petroleum
For Department of State Development, Business and Innovation

Ken Gardner,
Director of Energy Safety

Schedule 1

Summary of functions of the Department and ESV in the administration of the pipelines act 2005

This Schedule sets out allocation of pipeline regulatory duties between the Department and the ESV under the Pipelines Act 2005.

This Schedule:

  • provides additional detail on the interfaces between the Department and the ESV;
  • indicates where collaborative working will be necessary between the patties.

Tenement Administration

Pipeline Act 2005
DSDBI ESV

Grants, approvals/acceptances reviews etc:

  • Approve Pipeline Consultation Plans
  • Grant of pipeline licence
  • Environment Effects Act 1978 and Planning and Environment Act 1987 processes
  • Alteration of an authorised route
  • Amendment to any conditions
  • Consolidation of any licences
  • Transfers of any licences
  • Surrender or cancellation of a licence
  • Third patty use of pipeline
  • Issues associated with rehabilitation bonds
  • Instruct insurance to be held

Reviews etc:

  • Assess technical details for licence applications
  • Assess technical details for alteration of authorised route
  • Assess technical details for amendment to any conditions
Collaborative Work: The Department will be the lead agency for tenement administration, but will consult with ESV where required. The operator's primary point of contact for most purposes should be the Department.

Pipeline Construction

Pipeline Act 2005
DSDBI ESV

Reviews, acceptances and approvals

  • Approval of delay to commence construction
  • Liaison with local communities
  • Approve lateral deviations
  • Review and acceptance of environmental management plans
  • Audit against environmental management plans
  • Inspections of pipelines for environmental and community issues
  • Investigation of environmental incidents
  • Serve notices and directions
  • Retention of environmental records
  • Assess rehabilitation plans and set rehabilitation bonds

Reviews, acceptances and approvals

  • Accept Safety Management Plans
  • Audits against Safety Management Plans
  • Safety inspections
  • Compliance with AS 2885
  • Investigation of safety incidents
  • Retention of safety records
Collaborative Work: Jointly prepare guideline for construction management plans

Pipeline Operations

Pipeline Act 2005
DSDBI ESV

Reviews and approvals

  • Serve notices/directions
  • Approve access to a pipeline easement for the construction and operation of another facility, including another pipeline

Reviews, acceptances and approvals

  • Consent to operate or recommence to operate
  • Accept Safety and Environment Management Plans and any revisions
  • Compliance with AS 2885
  • Audits against Safety and Environment Management Plans
  • Safety inspections
  • Investigation of safety incidents
  • Other use of pipeline
  • Impose safety or environment requirement
  • Restrict use of pipelines
  • Serve notices and directions
  • Retention of safety records
Collaborative Work:Work jointly when reviewing aspects of tenements and environmental activities associated with pipeline operations. The operator's primary point of contact for most purposes should be the ESV.

Decommissioning

Pipeline Act 2005
DSDBI ESV

Reviews and approvals

  • Environmental aspects of Decommissioning Plans
  • Audits and inspections against environmental aspects of Decommissioning Plans
  • Assess rehabilitation and set rehabilitation bonds
  • Investigation of environmental incidents
  • Retention of environmental records
  • Consultation with landholders and stakeholders
  • Accept surrender or cancel licence.

Reviews and approvals

  • Safety aspects of Decommissioning Plans
  • Audits and inspections against the safety aspects of Decommissioning Plans
  • Investigation of safety incidents
  • Compliance with AS 2885
  • Retention of safety records
Collaborative Work: Collaboration will be required when reviewing aspects of the decommissioning activities that are relevant to both the Department and ESV. Joint review of technical feasibility of decommissioning. The operator's primary point of contact for most purposes should be the Department.