8. Risk Assessment Process

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1 134 Browse FLNG Development Draft Environmental Impact Statement 8. Risk Assessment Process This section provides an overview of the EIA process undertaken for the Browse FLNG Development, from identification of potential credible impacts to the evaluation of their significance. The risk-based approach used by Woodside for the Browse FLNG Development aims to identify the resulting risk of credible impacts from proposed development activities on environmental receptors (physical, ecological, socio-economic and cultural). Through this process, Woodside was able to develop relevant management and mitigation measures to achieve an overall acceptable level of risk for the Browse FLNG Development. The risk assessment process applied by Woodside to the Browse FLNG Development comprised a number of different phases that are described in this section (Figure 8.1). Table 8.1 provides definitions for commonly used EIA terminology. 8.1 Identification of Browse FLNG Development Activities and Relevant Aspects A review of the Browse FLNG Development activities was undertaken to identify aspects that have a potential to affect environmental receptors (physical, ecological, socio-economic and/or cultural). All phases of the development were considered, from installation and commissioning, through operation to decommissioning. Inherent controls, such as design features, legislative requirements or corporate standards applicable to the Browse FLNG Development, were considered when defining development activities, so that credible impacts could be identified as part of the EIA process. Identify development activities and relevant aspects Define the existing environment Identify the credible impacts CONSULTATIVE PROCESS Quantify the level of risk Identify the management and mitigation measures Determine residual risk Figure 8.1: Environmental Risk Assessment Process

2 Section 8 Risk Assessment Process 135 Table 8.1: Environmental Risk Assessment Terminology Term Definition Activity Work associated with the Browse FLNG Development during installation, commissioning, operation and decommissioning e.g. pipelay, drilling, hydrotesting. Aspect Associated with each activity are a number of aspects. These are components of an activity which may have a potential to impact on the environment e.g. emissions, waste, noise. Receptor Physical, ecological, socio-economic and/or cultural environmental characteristics which may be affected by aspects of the Browse FLNG Development. Credible impact Any change to the environment resulting from an aspect, taking into consideration inherent controls relevant to the Browse FLNG Development. Inherent control Measure that reduces the likelihood or consequence of a credible impact occurring. Consequence The level of impact associated with an aspect. Likelihood The probability of the identified consequence occurring. Additional Management and Mitigation Measure to reduce the consequence of impact. Residual risk The level of risk after the application of inherent controls, management and mitigation measures. 8.2 Defining the Existing Environment As part of the EIA process, the existing environmental context of the Browse FLNG Development was defined in order to identify environmental receptors that have the potential to interact with the Browse FLNG Development activities. Receptors may vary depending on the aspect of the activity being assessed. The environmental receptors relevant to the Browse FLNG Development include: Physical characteristics of the environment e.g. seabed and water quality. Ecological characteristics of the environment e.g. benthic communities, coral, fish, seabirds, marine reptiles and marine mammals. Socio-economic and cultural characteristics of the environment e.g. heritage, fishing (traditional, commercial and recreational), shipping, tourism. 8.3 Undertaking the Risk Assessment Identification of Credible Impact Scenarios Credible impacts were identified through a systematic hazard identification (HAZID) process whereby each activity (either planned or unplanned) was considered with respect to its potential to affect an environmental receptor and the resulting impact(s) from those interactions, taking into consideration relevant controls inherent to the Browse FLNG Development activities. Identification of the environmental receptors and potential interactions with development activities relevant to the Browse FLNG Development was conducted through: Review of controlling provisions and associated EIS Guidelines set by the Minister for the Environment for the Browse FLNG Development. Information obtained through stakeholder consultation. Knowledge developed by Woodside from the company s extensive prior experience in assessing and operating offshore oil and gas facilities. Knowledge developed by Woodside on the Development area location through comprehensive baseline studies. HAZID workshops conducted by Woodside.

3 136 Browse FLNG Development Draft Environmental Impact Statement A detailed assessment has been conducted for all Browse FLNG Development activities as far as practicable, based on a worst case credible impact approach. For example: If there is uncertainty over the exact distribution of a particular receptor, that receptor was considered to be present in the area of potential interaction with the development aspect. Where specific activities (e.g. decommissioning) have not been fully defined, or where credible impacts are unknown, unpredictable or irreversible, a conservative consequence level was assigned and the assessment conducted based on environmental performance outcomes defined by Woodside based on legislative requirements, corporate standards, benchmarking and industry best practice as relevant Quantification of the Level of Risk Environmental risk assessment is a process that evaluates the likelihood and consequence of credible impacts that may occur as a result of interaction(s) between receptor(s) and Browse FLNG Development activities. It is a component of the EIA process that facilitates identifying the significance of potential credible impacts to be able to prioritise management and mitigation measures to achieve an acceptable level of risk for the Browse FLNG Development. The environmental risk management methodology applied to the Browse FLNG Development is based on Woodside s risk management standards. These standards are consistent with the International Standards Organisation and Standards Australia (AS/ISO) Risk Management Principles and the associated guidelines HB203:2006 Environmental risk management - Principles and process. The Woodside Risk Assessment Matrix used for the risk assessment process is detailed in Figure 8.2. To inform the risk assessment process, a range of environmental studies have been undertaken that included reviewing existing data, modelling discharges and emissions, and undertaking field surveys where existing data was not available or sufficient to conduct a robust assessment. A summary of this information is detailed in Sections 5, 6, 7, 10 and 12. The following sections provide an overview of the risk assessment process. Categorisation of Consequence The level of consequence assigned to a credible impact (on a scale of A to F) is an indication of the magnitude of the potential impact on environmental receptor(s) resulting from an aspect of the development. In evaluating the level of consequence, the following were taken into consideration: Frequency and duration: how often the impact will occur and how long the interaction will occur with the receiving environment. Scale: whether the impact affects the local, regional or broader receiving environment. Sensitivity of receptor: the nature, importance (i.e. whether of local, national, regional or international importance) and the sensitivity of the receptors that could be affected. This also takes account of any laws, regulations or standards aimed at protecting the receiving environment. The level of consequence was assigned on a qualitative basis, as shown in Figure 8.2. Where multiple consequences were identified to be relevant for an aspect, the higher and therefore most conservative level of consequence was applied. Categorisation of Likelihood Likelihood (on a scale of Highly Likely (5) to Remote (0)) was assigned based specifically on the predicted likelihood of an environmental impact occurring as a result of an event (consequence), rather than the likelihood of the event itself. Definitions of likelihood provided in Figure 8.2 were determined on the basis of experience and/or evidence that the assessed credible impact has previously occurred Identification of Additional Management and Mitigation Measures As part of the risk assessment process, management and mitigation measures were identified to reduce the level of risk to ALARP. In accordance with Woodside s risk management standards and for the purpose of the Draft EIS, where a risk is assessed to be low, this risk is also deemed acceptable, and no further management is required. Where the risk level is higher than low, additional management and mitigation measures are required to be considered and implemented, if the cost is not grossly disproportionate to the environmental benefit gained, to prevent or mitigate the risk to ALARP and acceptable residual risk level. The following framework tools were applied, as appropriate, to assist with identifying appropriate management and mitigation measures: Good Industry Practice identifies further engineering control standards and guidelines which may be applied by Woodside in addition to those required to meet the legislation, codes and standards. Professional Judgement uses relevant personnel with the knowledge and experience to identify alternative controls.

4 Section 8 Risk Assessment Process 137 Using these tools, the following adaptive management framework was used to identify appropriate management and mitigation measures for the Browse FLNG Development: 1. Eliminate the risk by removing the hazard. 2. Substitute a hazard with a lesser one. 3. Prevent a credible impact from occurring through the implementation of additional engineering control measures. 4. Reduce the magnitude of a credible impact through the implementation of additional engineering control measures (e.g. solids control equipment onboard drilling rig to manage cuttings discharge). 5. Mitigate the credible impact on the environment through the reduction in extent, scale, duration of impact (e.g. bunding, oil spill booms, relief well). 6. Emergency response and contingency planning to facilitate recovery from the credible impact of an event Determine the Residual Risk Residual risk (High, Medium or Low) was determined by assessing consequence and likelihood of a credible impact with appropriate management and mitigation measures in place. The residual risk is an indication of the significance of a credible impact. The risk ratings used for this assessment are detailed in Figure 8.2. Section 10 provides a detailed assessment of the residual level of risk for each aspect of the Browse FLNG Development.

5 138 Browse FLNG Development Draft Environmental Impact Statement Consequence Definitions Environmental Risk Expanded Definitions Environment Protected Species Marine Primary Producers Other Communities/ Habitats Water Quality Marine Sediment Quality Air Quality Soil and Ground Water Contamination Permanent impact. Impact on highly valued ecosystems, species or habitat Eradication of local population. Loss of critical habitats or activities. Permanent eradication Permanent effects on a of primary producers on regional scale. a regional scale. Permanent Permanent contamination to water quality above national/ international standards &/or known biological effect concentrations on a regional scale. concentrations on a regional scale. Continuous exceedances over air quality standards Damage to the Permanent off site contamination of ground water &/or soil. Cost effective treatment not possible Damage to the Serious, long (>10 Extensive impact on years) impact. Impact on population(s). highly valued Significant impact on ecosystems, species or critical habitats or habitat. activities. Large scale and long term effects. Recovery > 10 years or permanent. Large scale long term effects. Recovery > 10 years or permanent. Significant long term national/international > 2km (marine waters) and > 200m (fresh waters). Long term > 2km. Sustained, exceedance over national / international air quality standards Significant impact to the Extensive off site contamination of ground water &/or soil. Treatment difficult / expensive. Severe impact to the CONSEQUENCE (with existing barriers in place) Major, long term (5-10 Disruption to a years) impact. Impacts significant portion of the on ecosystems, species population. Impacts on or habitat critical habitats or activities. No threat to overall population viability. Moderate, medium term (205 years) impacts but not effecting ecosystems function Minor disruption or impact on a significant portion of the population. Minor impacts on critical habitat or activities. No threat to overall population viability. Localised but long term effect. Recovery > 10 years or permanent. [Moderate or large scale effect recovery within 10 years] Localised and medium term effect. Recovery 5-10 years [Localised effect recovery in either medium or long term]. Localised but long term effect on community/ habitat structure. Community maintains ecological integrity though an unacceptable change in species composition may occur. Localised medium term effect on community / habitat structure. Community maintains ecological integrity though an acceptable change in species composition may occur. Minor long term or significant short term > 2km (marine waters) and > 200m (fresh waters). Contamination above background &/ or national/international quality standards &/ or < 2km (marine waters) and < 200m (fresh water). Long to medium term > 2km. Medium term < 2km. Sustained exceedance over national / international air quality standards High to medium impact to the environment or human health Temporary exceedance over national / international air quality standards Medium impact to the Extensive contamination of ground water &/or soil, offsite contamination likely treatment difficult / expensive High impact to the health Moderate contamination of ground water or soil, contained within site boundary, treatment difficult / expensive. Medium impact to the Minor, short term (1-2 Minor disruption or Localised and medium Localised and medium Minor contamination Medium to short term Minor and temporary Minor contamination of years) impacts but not term effect on key effecting ecosystem primary producers. function Recovery < 5 years. impact on portion of the population. Minor and temporary impact on critical habitat or activities. No threat to overall population viability. term effect on community/ habitat structure. Community maintains ecological integrity. above national/international quality standards &/ or concentrations outside agreed mixing zone (typically 50m inshore and 200m offshore). < 2 km exceedance over air quality standards Medium to low impact to the environment or human health ground water or soil, contained within site boundary, readily treated. Low impact to the environment or human health Slight, and temporary (<1 year) localised effect to ecosystems, species or habitat Minor and Temporary disruption to small portion of the population. No impact on critical habitat or activity. Localised and short term effect on key primary producers. Recovery < 5 years. Localised and short - medium term effect on community/ habitat structure. Full recovery expected. Minor and/or temporary background levels and/or national/ international quality standards and/or known biological effect concentrations outside agreed mixing zone. Short term < 2 km. Minor and temporary exceedance over air quality standards. Low impact to the Minor contamination of ground water or soil, contained within site boundary, readily treated. Minimal impact to the environment or human Figure 8.2: Woodside Risk Assessment Matrix

6 Section 8 Risk Assessment Process 139 LIKELIHOOD OF IMPACT (not the event itself) Experience: (History of occurrence in Company or Industry) Unheard of in the industry Has occurred once or twice in the industry Has occurred many times in the industry, but not in the Company Has occurred once or twice in the Company Has occurred frequently in the Company Has occurred frequently at the location Frequency: (Continuous operation) 10, ,000 years 1,000-10,000 years at location 100-1,000 years years 1-10 years More than once a year or continuously Probability: (Single activity) 1 in 100,000-1,000,000 1 in 10, ,000 1 in 1,000-10,000 1 in 100-1,000 1 in >1 in Protected Areas Remote Highly Unlikely Unlikely Possible Likely Highly Likely Significant permanent A Significant long term B SEVERE Moderate but long term or permanent effect on one or more of protected areas values. C HIGH Moderate and medium term effect on one or more of protected areas values. Full recovery expected. D MEDIUM Minor and medium term Full recovery expected. E LOW Minor and short term Full recovery expected. F

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