Petroleum and gas ERC calculator

Welcome to the training for the 2022 edition of the Estimated Rehabilitation Cost Calculator for petroleum and gas. This training course will take you through all aspects of the Calculator and consists of 13 modules, including four introductory modules, and nine worked examples. While these modules do go into some detail, they are generally designed to be an overview. So if at any time you need more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the Calculator.

Join me now for Module 1. This module will cover the purpose of the Calculator, some key definitions, and the major changes from the latest review.

The Calculator was designed to provide a tool to calculate the Estimated Rehabilitation Cost as required by the Environmental Protection Act 1994. It allows a consistent yet generic approach to calculating the Estimated Rehabilitation Cost for petroleum and gas activities. It is also used by the Queensland Government to estimate the full cost to decommission, rehabilitate, and close an operation. Here are some key definitions to be aware of while using the tool. Please pause this video as required and carefully read through the definitions.

Throughout 2021 and 2022 the Calculator underwent a major revision with some key changes being made. All macros have been removed to improve functionality and stability. Headers for each sheet have been decluttered by removing the user information and user comments, which are now located in the Information sheet, and the legend which can now be found on the Contents sheet. The Table of Values has been removed and incorporated into the Main sheet. This is because the Main sheet merely replicated the values and words in the Table of Values. Several User Input Sheets have been added for the following activities: Wells, LNG Plants, Water Storage defaults and Process Facilities defaults. Many of the sheets have also been redesigned to improve consistency between the spatial data supplied with ERC calculations and the ERC quantities.

User input tables have been added to the Process Facilities input sheet and Process Facilities User Build input sheet for Liquified Petroleum Facilities, Conventional Oil Facilities, and Conventional Gas Facilities. Assumptions, Information and user notes, and Subrates sheet have been added for reference to provide greater transparency for rate defaults and Calculator assumptions. A Waste Register has been added in order to itemise the quantities that are multiplied by the Waste Levy.

The range of rates available has been expanded for several groups including wells, tracks and roads, dams, and facilities. To improve consistency with the spatial data, area-based rates have also been expanded in addition to the per length or number of/category methods. Arid has been added as a land type, in addition to pasture and native, primarily to account for facilities where the land is desert, for example some operations in South West Queensland. All rates have been reviewed, updated, and made consistent across the mining and the petroleum and gas calculators.

Again for more information or specific instructions, please consult the User Guide, which is also available on the Business Queensland website, below the download for the Calculator. See you in the next module.

Welcome back to the training for the 2022 edition of the Estimated Rehabilitation Cost Calculator for petroleum and gas. This is Module 2. In this module we will cover how to prepare an Estimated Rehabilitation Cost.

To get started, go to the Business Queensland website and download the Calculator.

You may be prompted to save this to a particular location, or it will appear down the bottom, depending on which browser you are using. Open the Calculator once it is downloaded and you will be taken to the Terms and Conditions of use pages. By downloading the Calculator, the user agrees to the terms and conditions.

In the next tab, you will find the Contents sheet. This tab will allow you to navigate around the Calculator and each subsequent sheet gives you the ability to come back to the Contents sheet.

The first tab required for starting a calculation is the Registration sheet. Here you will fill in some of the more general details for the activity. This includes the EA number and holder; the tenure numbers and site or project name; as well as the last ERC decision date and current ERC amount, which is used to calculate the difference between the total cost of this ERC and previous ERC amounts.

Further down the User enters site details and contact information. Below this is the selection of the Waste Levy. The user must select one of the options from the drop-down menu. The options are: Waste levy applies, for regional or metro zones; Waste levy does not apply because the site is not in a waste levy zone; or Waste levy does not apply for another reason, in which case the User must add comments.

The final part is the name and details of the assessor who is the person preparing the Calculator, and the name and details of the authorised person or site manager, who is the person within your organisation who is authorised to submit this calculation to the government.

The User can then choose to either complete the Main sheet, which includes rolled up rates for petroleum and gas activities, or work through all the user input sheets, entering all the details relevant to their activity. We will cover data entry into these sheets in later modules.

If the user chooses to complete the Main sheet, they simply enter the quantity for the relevant activity and the Calculator uses the rolled up or default rate to calculate the cost.

The user input sheets allow the User to build a rate, based on the specifics of individual infrastructure. Generally, default rates are still relied on, but the User has the option to add alternate rates with justification into the Main sheet. The User simply works through the user input sheets, entering quantities to input cells and selecting options from drop-down menus as required.

Once this data entry is complete the User can return to the Summary sheet to review the rolled-up totals. If site-specific Project Management and/or Environmental Maintenance and Monitoring values are justified, enter these into the cells in the Summary sheet and provide justification in the cells below the table. These will be explained further in a later module.

As always, for more information or specific instructions, please consult the User Guide which is also available on the Business Queensland website, below the download for the Calculator.

See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 3. This module will go over some general use concepts which are important to understand when using the calculator.

There are various ways quantities can be added into the calculator, however quantities for a specific item only need to be added in to one place. Most users will likely only use the Main sheet for quantity entry. The user input sheets are primarily used to tally area-based quantities. This achieves two primary purposes, the first that entries should better align with other spatial data, and the second is that the user and department can more readily view the disturbances.

Each user input sheet reports quantities and costs a little differently. The General Land Rehabilitation sheet sums the total quantity for each disturbance type, for example total area of existing disturbance requiring minor rehabilitation, or total number of water supply bores requiring plugging. The total quantities for each column in the input sheet are automatically reported against the appropriate line item in the Main sheet. For this sheet, only the quantities are displayed. The quantity totals are automatically reported to the Main sheet and displayed in the input sheet column against the appropriate line item, where the cost is then calculated. Any additional quantities added directly to the Main sheet are added, and the total cost calculated for each line item.

The Investigation Contamination sheet works similarly to the General Land Rehabilitation sheet, summing the total quantity for each disturbance type and reporting that to Main. For example, the total mass of asbestos in soil from the Investigation Contamination sheet is reported to the input sheet column against the asbestos in soil line item in the Main sheet.

The sheets Seismic and Infrastructure, Process Facilities, Process Facilities User Build, and Water Facilities User Build all report the total cost for each sub-category for that sheet to the relevant line item in Main. For example, in the Process Facilities input sheet the total cost for unconventional gas, conventional gas, oil storage, LPG, water treatment plants, and water transfer stations are calculated in the sheet and then reported separately to the corresponding row in the Main sheet.

The sheets Wells, Pipelines, LNG Facilities User Build, and Water Storage report the total cost for all the disturbances in the sheet to the relevant line item in Main. For example the total cost of the wells entered to the Wells input sheet is reported to Wells input sheet row in Main. The sheets Process Facilities, LNG Facilities, and Water Facilities User Build tables allow the users the flexibility to change specific aspects of the calculation to ultimately create a cost specific to that item.

As explained earlier, there are several places where items can be entered, but each item only needs to be entered once. For example, if you add a specific pond to the Main sheet, you do not then need to add it the Water Storage input sheet.

The default rates included in the calculator generally include all activities reasonably anticipated to be required for a particular activity. Specifically, decommissioning, demolition, removal, disposal and storage, rehabilitation of land ('grade and seed'), are included unless otherwise stated.

While a lot of the calculator's functionality is locked to prevent changes being made to the format or layout, the standard Freeze Pane function is accessible so the user is able to freeze or unfreeze columns and rows to assist with viewing and use.

The calculator is colour coded to visually assist the user in identifying which cells are for user entered data and which cells are for reference, calculation, error, etc. The key to the colour code is in the contents tab of the calculator and displayed here. Of note, the green and yellow cells are the only cells that will allow user entry.

Much of the data entry in the calculator is for inputting quantities of different units. The unit of the quantity the user is required to enter can either be found in the next column on the same row, or in the title of the field. It is important to check the unit you are required to enter to avoid any miscalculations.

Default rates are all listed as numbered cost rates in the Main sheet. Where applicable these rates are also used in the user input sheets, but in most cases the land rehabilitation rate is separate from all the activities such as demolition. This is to allow the area-based component of the disturbance to be separate to improve consistency with other spatial data. The user can enter an alternate rate with justification for the default rates in the Main sheet and the LNG Facility User Build sheet. Subrates are shown in the Subrates sheet and are used in building default rates, and some are used in the user input sheets. The user cannot enter alternate rates for Subrates unless they are also default rates.

Default values, or assumptions, are used throughout the calculator to calculate costs. These, as opposed to the default rates, are things like thickness of material, distance to travel, etc. In some cases the user can over-ride these where they are used in the input sheets. The user simply enters a quantity where a default is present and the calculator will use the user entry instead of the default. The defaults are summarised in the Assumptions sheet.

As mentioned earlier, the user can enter alternate rates for the default rates in the Main sheet. These are entered in column K and justification or rational for the alternate rate must be provided in column N. When entered, the cell will turn red to alert the department that an alternate rate has been used. The calculator will then use this user entered rate to calculate costs. Where third-party quotes are used, they must comply with the ERC guideline requirements. The only exception is the LNG Plant User Build sheet where alternate rates and justifications are required to be entered to that sheet.

The calculator includes numerous areas that allow the user to add comments. These are important in justifying to the department why you have chosen certain values, or why alternate rates have been entered. The Main sheet allows for user comment and justification of alternate rates. In the Summary sheet, the user must explain why an alternate project management or maintenance and monitoring rate was used if entered. The LNG Processing Facilities User Build sheet allows for justification of alternate rates. In the Registration sheet, the user must explain why the waste levy does not apply to the site if this is selected. In the Information sheet the user can enter notes applicable to individual input sheets in the spaces provided.

Any comments or justification added needs to be useful, succinct information that will assist the department in its review. When entering comments it is good practice to add blank rows at the beginning and end of text to ensure the text is properly displayed. To add a blank line, use the Alt + Enter key on your keyboard while editing the cell.

The calculator uses hyperlinks throughout the workbook to allow for easy navigation between sheets. The Contents page which we looked at earlier is a great place to start. As mentioned, all sheets have a hyperlink back to the Contents page at the top of the sheet.

To search for something in the calculator, simply use Excel’s search function (Ctrl + F) to find specific words. Some field headings throughout the calculator have addition pop up text that displays when the cell is clicked on. This is to help the user better understand what is required to be entered into that field. These cells are identified with an asterisk. Drop-down menus feature throughout the calculator and are a quick easy way of selecting options.

Each input sheet includes a column on the left-hand side of the table for each activity to allow the entry of a map ID. Where spatial data is provided, the map ID should align with the spatial data for the relevant line item in the calculator. Multiple map IDs can be entered, separated by commas, if there is more than one identifying code or number for a particular item.

Most user input tables allow space for additional user entered items that fit within the category of the table, but are not otherwise included in the calculator. The user must enter the quantity, the units and the rate for the user entered item.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator. See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 4. In this module we will go into a bit more detail about the Summary, Main, and user input sheets.

In addition to the Main sheet, there are 11 user input sheets that allow user input for each of the domains, as well as several other sheets summarising information, listing default values, or simply for reference or lookup. The user input sheets comprise of rolled-up rates, also referred to as default rates, in single line, or user defined input tables that build up the activity to calculate the total cost of the element.

Most of the user input sheets are filled out from left to right, and only information relevant to a particular element needs to be entered. Process Facilities, Water Facilities and LNG Facility User Build sheets are filled out from top to bottom for each facility. Where defaults are listed and no information is entered by the user, the default value will be used in the calculation.

The structure of each input sheet is similar, with header rows providing the domain name, a hyperlink back to the contents, and the total cost for the individual sheet and the total ERC amount for the site. Each table then has its own header containing the field headings. We will go through these sheets in more detail in later modules, but for further information on the purpose of each sheet, please refer to the user guide.

The totals from the input sheets are then fed into the Main sheet. Each section in the Main sheet has a row for the total from the user input sheet if applicable. This is then added to any other items that are added directly into the Main sheet to give a subtotal for that section. Each of these section subtotals then flows through to the Summary sheet. The total for each section is shown and totalled at the bottom to produce a pre-multiplier cost. The multipliers are then added to give the overall ERC amount. The last value in the Summary sheet is the difference between the current ERC value initially entered into the Registration sheet, and the total with multipliers calculated above.

The first multiplier is the project management multiplier which is calculated at 10% of the total ERC amount. Generally, this covers the cost to government to project manage, schedule, and oversee the required rehabilitation works. The user can specify their own project management multiplier, and if so, must provide justification in the space provided and attach the relevant quotes to their ERC application.

The environmental maintenance and monitoring multiplier is calculated at 5% of the total ERC amount. This covers post-closure activities like minor repairs, revegetation, weed management, and fence and signage repairs. It also covers a wide range of post-closure monitoring activities including inspections, assessments, surveys and reporting. Again, the user can specify their own environmental maintenance and monitoring multiplier, and if so, must provide justification in the space provided and attach the relevant quotes to their ERC application. The calculator also applies a contingency of 10% to account for general uncertainties in the cost of estimation and recognises that assumptions are being made for the default rates.

The Waste Levy is a new addition in the 2022 version of the calculator and is designed to account for specific types of waste that go to landfill in Queensland. This levy only applies if your activity falls within one of the specified areas. For the ERC, concrete, bitumen, asbestos (free and within soil), solid salt, and contaminated soil are the primary wastes to which the levy may apply. Steel, copper, and other materials are not considered a waste as they have value as scrap. Consistent with the policy decision on scrap, scrap value is not offset. The calculator does not charge a gate fee or levy against these materials, but does allow for transport to a facility.

Revegetation is primarily broken into two categories, with a third option for certain circumstances. These are pasture, native, and arid. The default rates throughout the calculator generally include the cost of seeding so the user is not required to enter additional revegetation costs elsewhere. If seeding is not included it is specifically stated in the rates scope. The General Land Rehabilitation sheet includes additional rows to cover revegetation of land not covered by the other sheets. Such occurrences are likely rare and may include land where preliminary work, e.g. clearing for an activity was undertaken but the activity did not go ahead.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator. See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas.

This is Module 5. This module will work through entering data into the Main sheet. Users can prepare their whole ERC submission using just the Main sheet and not use the user input sheets. The Main sheet groups activities into sections. For most of the activities discussed below, further detail will be provided in the module for the corresponding input sheet.

The first section is Exploration, which contains rates from other sections and is split out so that smaller exploration only companies need only view this section. If the exploration project has activities not included in this section, the user can use the additional line item rows and reference the rate number in the comments. Otherwise, the user must enter those quantities to other sections in Main.

The next section is roads, tracks, laydown, and borrow pits; followed by camps, buildings, and sewerage treatment plants; power generation and distribution; well pads and associated infrastructure; pipelines; gas processing and oil storage facilities, which include unconventional gas facility types, conventional gas and oil facility types and LPG facilities; LNG plants; water treatment plants and transfer stations, which includes water management items such as salt reduction by reverse osmosis; then water storage infrastructure including a range of different dam and pond options, as well various tanks including panel tanks; general land rehabilitation to allow for items like rehabilitation of subsidence or erosion as well as allowance for miscellaneous activities to include things like additional soil amendments not already covered by other activities, or if soil amendment activities are known to be beyond those reasonably expected. It is important to keep in mind that default rate will cover seeding and soil amendments unless specifically stated that they do not.

Following this is the land investigation and contamination section. Where they are required, costs for investigation are included in rolled-up rates for items such as dams and ponds. So this section allows for activities not covered elsewhere, or where activities are known to be in excess of what is reasonably expected, or if the user wishes to list out investigation areas. This section is also where the Waste Levy costs are applied. Finally there are sections for mobilisation and demobilisation and additional activities.

At the bottom of each section there is an allowance to add additional items not covered by any other activities in that section. To use an additional item, provide a clear activity description, enter the quantity and unit for the item, and add your own rate in the alternative rate column with justification. You then provide a detailed scope for that item to clearly define what the additional item does and does not cover. Each of the sections has a subtotal which is reported to the Summary sheet. At the top is the total ERC amount. That is not the total for the Main sheet, but the total from the Summary sheet, including multipliers.

As discussed briefly in an earlier module, some sections in the Main sheet have a row or rows that draw from the total costs calculated in the user input sheets. For example, the total costs for quantities entered into the Seismic and Infrastructure user input sheet are reported to the Main sheet here for seismic (row 7), here for tracks and roads (row 51), and here for camps (row 88). Here is another example, where the total costs for quantities entered to the Wells user input sheet are reported to the Main sheet here (for presenter: row 151). To enter data into the Main Sheet simply input the quantities as they are in your disturbance schedule.

Throughout the calculator, there are now additional area-based rates in addition to the length and number based. For example, in the exploration section there are options to enter the area of the track in addition to total length of a track. Remember that you only need to enter an item once, so if you enter the total length of a track in the length item, you do not need to enter the road again in the area item.

Each item in the Main sheet has a corresponding use and scope definition. The use box describes how a rate is intended to be used, and sometimes contains additional information defining the quantity. For example, here (cell O572) this cell informs the user that the area to be entered is the crest area of the dam. The scope details what is covered in the rate, which generally includes what is reasonably expected to cover an activity. This is where items specifically included are identified, for example costs for management of any residual water in ponds are not included in those rates.

The Main sheet also offers the user the ability to enter an alternate rate. If you have suitable justification for using a rate different from the default rates provided, for example third party quotes, you can enter that rate in the alternate rate column. The calculator will then use the alternate rate to calculate the cost instead of the default rate. The cell will turn red to visually indicate to the department that an alternate rate has been used, and the user must provide a justification in the justification for alternate rate column. Remember to include a blank line before and after your justification using Alt + Enter key to ensure the text displays properly.

In the exploration section, there are two items for the selection of camps. The user selects an option from the drop-down, which selects the appropriate rate, and then enters a quantity to allow calculation of the total for those line items. There are two rows allowing two types of camps to be selected. If more camps are required, the user can enter these in the additional rows in the exploration section or use the camps rates further down.

The items in the Main sheet are generally for groups of items. For example, if you are entering the length for 6 metre wide, earthen track to be revegetated to pasture, then you enter the total length for all roads in that category. Then add a comment in the user comments column to describe the item, like 'group of tracks in area A'. If you would rather itemise out items such as tracks, use the input sheets.

You will notice here the different rates for pasture, native and arid. These are present throughout the calculator for a range of items as the cost to rehabilitate for each land type is different. That is, it costs more to replace with native vegetation than with pasture, and it costs less in arid, desert environments as the natural state in arid environments does not include vegetation, for example in South West Queensland.

For camps there are two options. The first is that the user can enter the area of a camp, whereby the default rate assumes an amount of space between and around components of the camp, as well as decommissioning of all reasonably expected camp components. If the area disturbed by a camps is significantly larger than what might reasonably be expected, the additional area will need to be added separately in the general land rehabilitation section. This may happen for example if an area of land has been set aside for camp expansion.

Alternatively you can enter camps by number of people, where the assumption is that the more people the camp accommodates the more components will be present, like a larger or multiple mess areas and recreation areas. A temporary camp is typically constructed for relatively short-term activities such as drilling campaigns or one-off activities such as construction of a process facility. Permanent camps are typically anticipated to be required for more than five years, and include more hardstand such as asphalt and concrete and facilities such as recreation modules with well stocked exercise equipment, tennis and basketball courts. It is up to the user to determine the type of camp that is applicable in each case. The user may make a case that a camp that has been in use for more than five years is a temporary camp by demonstrating the absence of hardstand. That is, the surface is predominantly compacted earth and gravel and only has simple facilities, such as very basic recreational facilities.

The building items have been significantly improved. Buildings associated with camps, process facilities, and the like are included in those rates so additional entries do not need to be added in the buildings section. These rates only cover the footprint of the building, so if for example the disturbance from a building impacts an area of land around the building, this area will need to be captured in the general land rehabilitation section. Check the use and scope for each building item to ensure you are applying the correct building type. Note that the unit for portable skid mounted or portable building is per item, not per area like the building items above. Also note that sewerage treatment plants have changed from an area based calculation to a kilolitres per day calculation. The rates for power generation and distribution have been revised and many changed to bring them in line with industry rates across petroleum and gas, and mining.

The options for wells, pads and associated infrastructure have been expanded to reflect the characteristics associated with the different resources. For example, conventional gas wells typically have less wellhead infrastructure than coal seam gas wells. The stage of each well is now better accommodated with sets for plugged and abandoned, suspended, shut-in, appraisal or development, and production or operation. As always, carefully read the use and scope of each item to ensure the correct items are being used. Towards the end of this section there is now a selection of items to cover wells in arid land as the rate to rehabilitate these items is less than their equivalents above.

For pipelines, the user input sheet only covers land rehabilitation for pipelines and does not include allowance for additional activities like flushing or purging. These additional activities need to be entered into the Main sheet in addition to the lengths or areas in the user input sheet.

In the Main sheet, the options for pipeline land rehabilitation include the rehabilitation of the full width of the easement, rehabilitation of operational area, which is generally less than the full width, and an inspection only option where the easement has already been rehabilitated and only ongoing inspections are required to monitor performance. These inspection-only items are for pre-department sign-off of rehabilitation as once the disturbance is formally certified rehabilitated, further costs are assumed to be part of the overall ERC maintenance and monitoring allowance. For each of these options there are several width categories, however if the user wishes to improve the accuracy, there is a user defined option where you can enter your own width to be calculated. In these cases, the calculator is based on the specific width entered rather than an average of the range.

The number of road, rail, and stream crossings needs to be counted for all pipelines and the total number included in the relevant item. At the end of the pipeline section there is allowance for pipeline facilities and hubs. It is up to the user to choose the most appropriate item and further details on these can be found in the user guide.

As with pipelines, in gas processing and oil storage facilities the user can either use one of the provided categories, or enter their own item. There are some limitations on what values are appropriate in these items so please carefully read the use section to ensure appropriate values are entered. LNG Facilities are now separate and are specific to the Curtis Island facilities, but could be used if new LNG Facilities are constructed elsewhere in the state assuming the general characteristics are similar.

For water treatment plants, the user can enter their own rate in megalitres per day and a quantity specific to their activity, or use the selection of different size items available for each facility type. The Main sheet includes rates for management of residual water and salt. Petroleum and gas projects typically manage liquids as part of their routine operation and management practice and consequently, the inclusion of quantities for these items is not always expected. Oily water in process ponds is typically routinely disposed of off site or processed. For coal seam gas activities, large quantities of brine and salt can be generated, and it is not typical to transport these off-site during routine activities. Consequently, the inclusion of salt is likely to be required for coal seam gas operations. The default method used in the calculator is load, haul, and dispose at an off-site facility. If a different method will be used, the user must develop an alternate rate.

The water transfer items are for facilities separate to water treatment plants and are typically comprised of tanks and pumps and piping. For guidance on what constitutes a small, medium or large facility, the user can check the user input sheet for water storage to see what elements make up the different sized facilities.

The water storage infrastructure section includes a wide range of items with the cost determined by the capacity or size of the item, whether sediments are assumed contaminated, whether the item is lined or unlined, and the land rehabilitation type. This section includes a range by capacity and by footprint area. In both cases these are the crest values for dams and ponds or full height for tanks. It is up to the user to make the decision as to whether dams, ponds and tanks are clean or contaminated and enter values into the appropriate items. The user is encouraged to provide notes that will support their selection.

The general land rehabilitation section includes a range of treatments and it is up to the user to determine whether these are needed. In general, the land rehabilitation costs are included in the rolled-up rates for the other items. For example the rehabilitation of the land upon which a camp was constructed is included in the camp rates.

In the investigation and contamination section, you will notice a range of items where the waste levy is applied. These are reporting from the user input sheet in column G, and quantities from the rows above reported in column H. The sum of these two values for each line are multiplied by the levy for that item to get the total.

The mobilisation and demobilisation section requires a simple quantity entry against the appropriate category. The user guide provides further explanation on the use of the mobilisation and demobilisation rates. In general it is intended that only one rate need be used and this should reflect the fleet that would most likely be used across the project. For example if the project is mostly wells then a small fleet is likely appropriate. If the project has several large process facilities and large dams a larger fleet is likely appropriate. The distance selection shown in each rate description is the one-way distance to the site. If the project is all wells and located less than 150 kilometres from an appropriate equipment supply centre, rate #13.01 is appropriate.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator. See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 6. This module will work through entering data into the General Land Rehabilitation input sheet.

The default rates in other sheets include land rehabilitation so the General Land Rehabilitation sheet does not need to capture such activities for these items. For example the default rates for camps and process facilities include grade and seed.

The General Land Rehabilitation user input sheet may be used to record areas that are in the total footprint of a facility but not in the disturbance area such as buffer/fire safety areas. Discrepancies between areas reported in the Plan of Operations and the ERC submission can be explained on this sheet. ERC costs should only be applied to areas where the environmental holder has a rehabilitation obligation or liability.

The General Land Rehabilitation sheet includes a range of activities – rehabilitation and repair of subsidence and general land management, construction/maintenance of natural drainage and diversions, general doze or grade and rip, miscellaneous soil amelioration and seeding, and decommissioning of bores.

The first table is land rehabilitation and repair of subsidence and land management. The appropriate category selection depends on the type and severity of land repair or maintenance required. The maintenance of rehabilitated areas applies to land that has undergone rehabilitation but requires minor attention to improve revegetation performance.

The existing rehabilitation repair – minor category is applicable to land experiencing minor cracking and/or drainage issues. The existing rehabilitation repair – moderate category is applicable to land experiencing surface expression of subsidence such as cracking and sink holes and where remedial works have not been successful. The existing rehabilitation repair – major category is applicable to land experiencing widespread surface expression of subsidence effects such as extensive cracking and multiple sink holes or where remedial works have not been successful. The existing rehabilitation repair – total failure of intended landform category assumes major reconstruction of a significant feature.

The rehabilitation of miscellaneous footprints category assumes extensive rehabilitation including reshaping, establishment of natural drainage, replacement of growth media, grading and seeding. The land management of undisturbed areas category is for items such as weed management, feral animal control, and minor erosion and sediment control. The pest management on buffer lands, non-disturbed, and rehabilitated areas is used if the proponent has responsibility for such activities.

The second table is for maintenance and/or construction of natural drainage diversions to ensure surface water flows in a manner that does not cause damage to rehabilitated and non-project related areas. The engineered cut-through drain category is used if a significant drain is required to manage subsidence and assumes a rip-rap and liner construction. The repairs and/or stabilisation of new or compromised water course diversion is to address failures of such features. The long term maintenance of water course diversion options allow the user to select whether the ground is competent and therefore more likely to retain integrity or through backfilled material that may be more prone to wear. The installation of rock armouring category allows the user to enter a specific area that may just require the installation of a protective layer.

The next two tables are for general earthmoving using either a dozer or grader to re-shape land to achieve drainage or other objectives. The miscellaneous soil amelioration and seeding table has specific treatments for amendment of land and revegetation and can be used for land areas not covered in the Main or other input sheets. The last table is for bores and includes water, monitoring, and reinjection bores decommissioned by either plugging, backfilling with cuttings, or grouting with cement. The user makes the decision as to which is the most appropriate form of decommissioning.

The totals under each category in each table are summed at the bottom of each table and the individual quantities reported back to the corresponding row in the Main sheet.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator. See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 7. This module will work through entering data into the Wells input sheet.

The Wells input sheet allows the user to list out wells or groups of wells and enter the disturbance area, improving consistency with the spatial data. The sheet calculates the cost for decommissioning, dismantling and demolition of wells, and the land rehabilitation associated with the pads, separately. The user enters the area of the well pad or group of well pads separately from the number of well heads.

The quantity entry to the sheet is straightforward. As is for all the sheets the first column is for the map ID, followed by the name of the well or group of wells. The user then selects the type of well or wells from the drop-down menu. The options for well types in this drop-down list is the same as that in the Main sheet, spanning the various resource types and stages of wells. The user then enters the number of wellheads in the line category, followed by the total disturbance area of the pad into which those wells are drilled. The final selection determines the revegetation cost.

The drop-down menu is slightly different to the other sheets in that the selections are seed or no seed. If no seed is selected the user is communicating that the well pad is in a desert environment whereby vegetation did not previously exist. If seed is selected, an average of the cost of pasture and native is used to calculate the revegetation cost. The columns to the right of the user entries show the quantities entered for each category, and the total cost is found at the top of the table. The first table shows the decommissioning, dismantling, and demolition cost for each category and the next two tables show the cost for land rehabilitation when seed is required and where seed is not required.

One thing to be aware of is that the land rehabilitation rate is very high for well categories, whereas the assumed disturbance area used to calculate the unit rate is very small. For example, the area assumed for a plugged and abandoned well is very small and therefore the per hectare rate is disproportionately large. Consequently, if in the unusual circumstance a plugged and abandoned well has a very large disturbance associated with it, the overall cost may not be an accurate representation of the true cost. In this case the user is encouraged to use the Main sheet for these entries.

The totals for each category are summed to create the total for the sheet, and this total is fed through to the relevant row in the Main sheet.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator. See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 8. This module will work through entering data into the Seismic and Infrastructure input sheet.

This sheet includes two options for seismic easements - by length and by area. In both cases the disturbance to be entered is only the length or area disturbed by the seismic equipment. Typically, such a disturbance is lineal and contemporary techniques cause minimal disturbance to the environment. For this reason, the calculator applies a default multiplier, currently 5%, to the entered quantity to determine the amount that will be multiplied by the default rate acknowledging that rehabilitation requirements are likely to be minor. The user can override the 5% default by entering a value into the rehab length column directly.

If the value is entered here, this gets multiplied by the rate. If a value is directly entered into the rehab length column, the formula is deleted. If the user wishes to return the formula, they can copy and paste from an unaltered cell. For both the by length and by area table, the user selects the land type and the calculator assigns the appropriate default rate accordingly. The column to the right of the user entries shows how the calculator has allocated disturbance quantities. These are summed at the bottom of each table and multiplied by the default rate to get the total. The totals for both seismic tables are summed and reported to the top of the sheet and this total is reported to the Seismic (Infrastructure Input Sheet) row in the Main sheet. Acknowledging that the actual disturbance is linear for both 2D and 3D seismic, the calculator no longer makes the distinction between the two.

The next table is for tracks and roads. The user can enter either the track or road length and width or the area directly. If the user enters an area, the calculation defaults to this entry. The user then selects the type of road surface from the drop-down menu with options for earthen, gravel, rock, or bitumen. The rate for earthen includes ripping costs and does not include costs for removal of material. From a rehabilitation perspective, the effort associated with the removal of gravel, rock, and bitumen is similar and the rates for these do not make a distinction. So the selection of gravel, rock, or bitumen serves as information only. Similarly to the seismic tables, the user selects the land type and the calculator assigns the appropriate default rate. The column to the right of the user entries shows how the calculator has allocated disturbance quantities. These are summed at the bottom of each table and multiplied by the default rate to get a total. The totals are summed and reported to the top of the sheet and this total is reported to the Tracks (Infrastructure Sheet) row in the Main sheet.

The last table is for camps. To allow alignment with other spatial data, costs for decommissioning/demolition/dismantling the camp are separate from the land rehabilitation. The user selects from the drop-down menu of camps with the selection determined by whether the facility is temporary or permanent, and the capacity i.e. the number of people the camp can house. A temporary camp is typically constructed for relatively short-term activities such as drilling campaigns or one-off activities such as construction of a process facility. Permanent camps are typically anticipated to be required for more than five years and include more hardstand, such as asphalt and concrete, and facilities, such as recreational modules with well stocked exercise equipment, tennis, and basketball courts.

It is up to the user to determine the type of camp applicable in each case. The user may make a case that a camp that has been in use for more than five years is a temporary camp by demonstrating the absence of hardstand, i.e. that the surface is predominantly compacted earth and gravel and only has simple facilities, like very basic recreational facilities. The user enters the number of camps in each category, and then the total land area disturbed by all facilities in the category. For each camp the land area is the total area including buildings and structures and open space that form the camp.

The columns to the right of the user entries shows how the calculator has allocated quantities for each row. These are summed at the bottom of the table and multiplied by the default rate to get a total. The totals are summed and reported to the top of the sheet and this total is reported to the Camps from Infrastructure Input Sheet row in the Main sheet.

The total costs for each table are summed and displayed at the top of the sheet and this total reported to the Main sheet as one line item. The total ERC amount is displayed at the top of the sheet so the user can see how the total changes with quantity entries.

The default rates for the land rehabilitation and decommissioning/dismantling/demolition components are shown at the bottom of the table. The hyperlinks to land subrates and camps subrates take the user to the Subrates tab which lists all the rates used in the camps table. Alternate rates are not available in this sheet. The user should use the Main sheet if alternate rates are justified.

As for all the sheets the first column is for the map ID followed by the name of the seismic area or track or groups of tracks or camp or group of camps. Let’s enter quantities to the seismic by length table first. When we enter a length you can see the calculator automatically applies the 5% to calculate the actual rehabilitation length. To override that calculation, the user enters a value directly and you can see the calculator now takes that entered value. As we enter values to more rows you can see how the selection of the land type changes the cost. The by area seismic table operates in a similar way.

Let's now go to the tracks and roads and demonstrate how the length and width and area entries work. If we enter a length and width and an area, you can see the calculator defers to the area entry. As we look down the table, you can see the effect on cost of the different surface covering and land type selections.

In the camps table we will assume the first row is for Camp 1 and it is a temporary camp of 80 people and the 3 hectares of land disturbed by the camp will be rehabilitated to pasture. So we select Temporary camp – > 50 and <= 100 persons from the drop-down menu and enter 3 hectares to the pasture column. For the next row, we will assume the user wants to enter a group of camps within a desert project area. The camps must all have the same characteristics in terms of temporary or permanent, capacity, and land type. We will assume three small camps in the project area, the first is ten people and an area of 0.5 hectares; the second is nineteen people and an area of 0.7 hectares; and the third, eleven people with area 0.5 hectares. As all the camps are temporary and the capacities all fit within the <= 20 people, the Temporary camp – <= 20 persons item is appropriate. The user enters three for the three camps to the number column and then 1.7 hectares, being 0.5 + 0.7 + 0.5 to the arid column.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator.

See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 9. This module will work through entering data into the Pipelines input sheet.

The Pipelines input sheet allows the user to list out pipelines or groups of pipelines and enter the disturbance area, improving consistency with the spatial data. The sheet calculates the cost for land rehabilitation only with totals for each category shown at the bottom right of the table. The sum of all these categories is shown at the top of the sheet under the total sheet cell, and this is reported to the relevant line item in the Main sheet.

The category is defined by the status of the easement. For example a newly constructed easement will require full rehabilitation. In most cases, the construction easement is rehabilitated to an operational easement and therefore only final rehabilitation is required. If the easement is rehabilitated but yet to be signed off by the department, the appropriate category is inspection only which allows for monitoring of rehabilitation performance. Once an easement is certified rehabilitated by the department, no further costs are required for pipeline easement with any ongoing costs assumed to be part of the ERC maintenance and monitoring allowance. While the sheet allows selection for above ground/below ground, oil, water, and gas, the costs in this sheet do not allow for purging and flushing, demolition of pipeline facilities, removal of high point vents and low point drains, and restoration of road, rail, and stream crossings. These items must be added to the Main sheet.

The quantity entry to the sheet is straightforward. As for all the sheets the first column is for the map ID followed by the name of the pipeline or group of pipelines. The user then selects from the drop-down menu for above or below ground and the type of fluid. Remember that these are for information only and costs associated with the flushing and purging and so on must be entered separately into the main sheet. The primary purpose of this sheet is again to align with other spatial data sets. The user can then either enter the easement length and width or the area directly. If the user enters an area the calculation defaults to this entry.

The user then selects the rehabilitation status of the easement, with none indicating a construction easement whereby no rehabilitation has occurred; partial indicating an operational easement remains; and rehabilitated indicating the easement is rehabilitated but yet to be signed off by the department. The final selection is the land type, that is pasture, native or arid. If arid is selected the user is communicating that the easement is in a desert environment whereby vegetation did not previously exist. The columns to the right of the user entries show the quantities entered for each category, and the total cost is found at the bottom of the table. The total for all the pipeline easements is then reported to the top of the sheet and to the line item in Main.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator.

See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 10. This module will work through entering data into the Process Facilities, Process Facilities User Build, and Water Facilities User Build input sheets.

The Process Facilities user input sheet allows the user to itemise disturbances associated with process facilities. This sheet can also improve alignment with other spatial data sets as the land rehabilitation component is by area and separate from the decommissioning/dismantling/demolition components.

The sheet includes tables for the same groups as in the Main sheet, that is: unconventional gas processing facilities, conventional gas plants, water treatment plants, water transfer stations, bulk oil storage facilities, and liquefied petroleum gas facilities. The layout of each table is similar with the user selecting a capacity or size of facility from the drop-down menu, the quantity in that category, and the land disturbance area in the appropriate land type column. The total land area entry in each row is the total for all the facilities.

The columns to the right of the user entries shows how the calculator has allocated quantities for each row. These are summed at the bottom of the table and multiplied by the default rate to get a total. The totals for the decommission/dismantle/and demolish, and land rehabilitation components, are added together and reported to the top of the sheet and this total reported to the Main sheet. For example, the cost total for the conventional gas plants entered into the input sheet is reported to the conventional gas plants from input sheet line in the Main sheet. The total ERC amount is also displayed at the top of the sheet so the user can see how the total changes with quantity entries.

The rates in the Process Facilities sheet are separated into decommission/dismantle/demolish and land rehabilitation. In the Main sheet, these two activities are rolled into one rate and therefore the rates in the Process Facilities sheet and Main sheet are not the same.

The default rates for decommissioning/dismantling/demolition and land rehabilitation components are shown at the bottom of the table. The hyperlinks for land subrates and process facilities take the user to the Subrates tab which lists all the rates used in the Process Facilities tables. Alternate rates are not available in this sheet. The user should use the Main sheet if alternate rates are justified.

Let's start with the gas processing facilities table. This table is intended for unconventional gas processing facilities such as those associated with coal seam gas operations. As for all the sheets, the first column is for the map ID followed by the name of the facility or group of facilities. In this case we are going to select the first option in the drop-down menu which is a stand-alone gas compressor. This item is different to the rest of the selections as it is the only one that is by single unit whereas the reminder of the selections are by capacity range. We are assuming this row comprises five gas compressors in the project area, so we enter five to the number column. As there are five units, the entry to the land disturbance column must be the sum of all those disturbances. Typically, stand-alone gas compressors disturb a relatively small land area so in this case we will assume each compressor is installed to a 20 metre by 20 metre compound. The entry to be made is then 5 by 20 by 20 divided by 10,000. The divide by 10,000 converts the square metres into hectares as there are 10,000 square metres in one hectare. For this entry we're assuming the stand-alone gas compressors are in a desert area so we enter a 0.2 in the arid column.

For the next three entries we take advantage of the ability to list out all the gas processing facilities in the area. Let's assume the first plant has a capacity 10 terajoules per day and its name is Facility 1. The facility disturbs a land area of 3 hectares and is in a pasture area. The second facility is Facility 2, has a capacity of 450 terajoules per day and disturbs a land area of 10 hectares and again is in a pasture area. The last plant is called Facility 3, has a capacity 800 terajoules per day and disturbs 12 hectares and is in a native area. Looking to the right you can see how the calculator has allocated entries and in the top row you can see how the costs are increasing as we enter each. Down at the bottom of the table you can see how the quantities are multiplied by the default rate to get the total for each column.

The remainder of the tables are used in the same manner. The next table is for conventional gas facilities. Such facilities are typically a smaller capacity than large coal seam gas facilities and consequently the ranges are lower.

The next table is for water treatment plants and these are typically for reduction of salinity and are focused on plants associated with coal seam gas activities. The rates can be used to represent water treatment plants for other resources as the costs associated with modules will generally be similar for similar capacities. The 80 megalitre per day and 100 megalitre per day categories have much higher costs because they assume equipment to further concentrate and crystallise salt. These rates include brine concentrators and thermal crystallizers (BC and TC). All the rates in the table (and the other tables) can be used in a modular fashion, so if a facility includes five by one megalitre reverse osmosis units, five can be entered into the one megalitre per day row. Remember to enter the total land disturbance in the land disturbance columns.

Water transfer stations are typically a collection of tanks, pipes and pumps and serve to move water around fields. They do not include any significant processing facilities so if you have a water transfer station that also has a reverse osmosis unit, the reverse osmosis unit must be added to the water treatment plant table. The scope description in the Main sheet and the Water Facilities User Build sheet provide further information on what constitutes a small, medium, and large water transfer station.

For conventional oil storage facilities, the selection is by oil storage capacity, that is the volume of oil stored in tanks at the facility. Consistent with the general rule throughout the calculator, the oil storage rates include all infrastructure and equipment reasonably associated with such a facility. Items not included in the rates and that must be added separately include: major water treatment plants; major water storage; major power generation facilities that exist to provide power beyond the plant; large camps, for example over 100 person capacity; camps installed to support construction or expansion; and large evaporation ponds, for example greater than 20 megalitres.

For further clarity, items that are included in the rates include: small process ponds; wastewater plants and landfills directly associated with the facility; minor accommodation and offices directly associated with the facility; and open space, laydown, and roads within the facility boundary.

The last table is for liquefied petroleum gas plants of which there are only a few across Queensland. For integrated facilities processing various resources and products, the quantities must be applied to the separate tables.

The Process Facilities User Build sheet is included to allow the user to build a rate for specific facilities whereby the quantities are clearly understood. The sheet is not intended to be used for large complex plants but rather facilities where the quantities are well defined and can be transparently communicated and articulated to the sheet. This would typically be smaller facilities. The sheet operates differently to most of the other sheets in that the entries are made vertically. The cost rates for each item cannot be changed by the user.

Entry to the sheet starts at the top by selecting the appropriate processing plant type. This entry does not affect any of the other quantities, it merely serves to collect costs for the same type of facility for reporting back to the Main sheet. While the sheet is titled Process Facilities, in this case the sheet is only for oil and gas plants. We will discuss a similar sheet for water plants later. One way to undertake the entry is to use process flow diagrams, photographs, and images supported by field visits or communication from operational staff to ground truth the entries.

We will enter quantities for a typical small oil storage facility as an example. The first step is to pick oil storage from the drop-down menu, then enter the name of the facility and any notes that may assist the user and/or the reviewer. This facility has four horizontal 40 kilolitres storage tanks so we enter four to this cell. The facility includes two oil water separators, one pig launcher to clean out pipes downstream, and four pump sets to move oil around the facility and to load trucks. Terminations are pipes that go into or out of the ground and that would require cutting and capping to decommission the facility. This facility has 10 such items so we would enter 10 into this cell. For this facility, the length of piping was measured from a general layout drawing supported by aerial imagery, and confirmed by the operational staff at the facility. The liquid pump and dispose row is for wastewater. For this facility we assume there are generally 10 kilolitres at the facility at any point in time. The facility is remote and does not have any on-site constructed buildings. It has three portable buildings which are a crib room, ablutions block, and a control room. We enter three to the portable buildings row. The last selection are for land rehabilitation which would typically include ripping, placement of growth media, unless the site is in an arid region.

For this facility, the compound is 100 metres by 100 metres, which is one hectare. The land requires ripping, so we enter one to this cell. Growth media is required to support revegetation and the thickness is 150 millimetres. For the volume of growth media, we can enter this as a formula to show how it was derived, which would be 1 times 100 times 100 times 0.15, which equals 1,500 cubic metres. The land is in pasture so we enter one to this cell.

Most oil storage facilities would require a land investigation. This facility is remote and there is no other facilities close by that might otherwise share mobilisation and lump sum costs of the investigation. Consequently we must enter one to the land investigation one off costs row. If a second facility was close by and required investigation this entry could just be 0.5. The land investigation area is only the area that would require investigation. For an oil storage facility this would typically be in and around the oil storage tanks, in-ground separators, and any loadout facilities. For this facility we measured an area of one hectare requiring investigation, so one gets entered into to the land investigation area row. The summary table groups the costs from the quantities entered above and then the total is shown at the top of the sheet. The total for each type of plant is summed and reported to the Main sheet. For example, the cost for all the oil storage facilities entered to the Process Facilities User Build sheet are reported to the conventional oil facilities from user build row in the Main sheet.

Like the Process Facilities User Build sheet, the Water Facilities User Build sheet is included to allow the user to build a rate for specific facilities whereby the quantities are clearly understood. The sheet is not intended to be used for large complex plants but rather facilities where the quantities are well defined and can be transparently communicated and articulated to the sheet. This would typically be smaller facilities. The sheet operates the same as the Process Facilities User Build sheet where entries are made vertically. The cost rates for each item cannot be changed by the user.

Similarly to the Process Facilities User Build, one way to undertake the entry to the sheet is to use process flow diagrams with photographs and images supported by field visits or communication from operational staff to ground truth the entries.

The first step is to enter a map ID, then enter the name and the facility and any notes that may assist the user and/or the reviewer. This facility has four horizontal 40 kilolitres storage tanks so we enter four to this cell. This example facility comprises several panel tanks of varying size and associated piping and pumps. We scroll down to the 7.6 megalitre panel tank and enter the quantity for these, in this case one and then one for the bigger 40 megalitre tank. The facility is continually processing water and in this case we will assume 1,000 kilolitres will remain. The facility does not have any major modules, that is large process units that would require separation into two or more sections for transport or any separators or small process units. The facility does have two pump units so we enter two to the pumps and controls, and has about 200 metres of piping between tanks and pumps. The facility is located in the field and does not have any on-site constructed buildings. It has one portable building which is for storage and a small office. We enter one to the portable buildings row. The last sections are for land rehabilitation which would typically include ripping, placement of growth media unless the site is in an arid region. For this example the land area for rehabilitation is three hectares, obtained from layout drawings and confirmed by aerial imagery. The calculator automatically calculates the volume of growth media required assuming a thickness of 150 millimetres, but the user can over-ride this entry with justification. Water transfer facilities do not generally require land investigation. The summary table groups the costs from the quantities entered above and then the total is shown at the top of the sheet. The total cost for water transfer facilities entered to this sheet is reported to the water transfer stations - user build row in the Main sheet.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator. See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 11. This module will work through entering data into the LNG Facilities input sheet.

This sheet is intended for use with Curtis Island facilities if the user does not want to use the default rates in the Main sheet. The sheet includes most activities associated with an LNG plant, and where items are not included that will be decommissioned, dismantled, and/or demolished they must be added to the extra rows at the end of the table, or added to other input sheets or the Main sheet.

The LNG Facilities User Build sheet is included to allow the user to build a rate for specific facilities whereby the quantities are clearly understood. The sheet operates differently to most of the other sheets in that the entries are made vertically, similarly to the Process Facilities User Build sheet. As LNG plants are typically bigger and more complex than other facilities in the calculator, the user can enter alternate cost rates.

Entry to the sheet starts at the top by selecting the number of LNG trains. This entry does not affect any of the other quantities but feeds into the Waste Register calculations and provides context for the reviewer. The facility for this example is a two train.

The first entry is for the number of LNG tanks. The units for each row are in column H, number of tanks for the first row. This facility has two tanks so we enter two to this cell. The next two rows allow the user to pick between a candle flare and ground flare or enter quantities to both if both types are present on the facility. This facility has one ground flare. The next two entries are for process modules and skids whereby modules are large process units that would typically require splitting into sub-sections for transport off the island. Skids are assumed to be smaller units that can be lifted in one go, for example pump and small separator units. All the LNG rates incorporating equipment, scrap steel and other metals, include costs to transport material off the island and to disposal or storage on the mainland. For this example, our review of drawings and registers indicates the two train facility has a total of 200 major modules and 100 skids.

The next group of rows are green indicating selections are available. This group allows the user to select four different types of tanks and enter quantities against each. This facility has two 200 kilolitre vertical tanks for diesel fuel back up fuel, two 50 megalitres open top panel tanks for water storage, and seven horizontal 20 kilolitre steel tanks for storage of miscellaneous liquids. The site has one communications tower, one refuelling facility for small vehicles, twelve on-site constructed steel buildings, and thirty demountable type portable buildings. The camp row is green indicating a selection is available. The full range of camps available in the Main and Seismic and Infrastructure sheets are available here. If additional camps are required, for example if a construction camp is required for an expansion, the user can enter to the user item row at the bottom of the table and either use and reference a default rate or enter an alternate rate and provide justification.

The rates for modules and skids includes piping and fittings associated with those units, so the piping not associated with modules is for, typically longer, runs connecting areas of the plant. For this plant we have assumed 1 kilometre of piping. This concept applies to electrical cable and tray and for this plant we assume 500 metres. The pipe to ground penetrations are for cut and capping of piping that will be left in the ground. For this plant we assume everything is above ground so no entry is made to this row.

The next group of rates are for removal of surface covering. The default assumption is concrete will be crushed and re-used around the site, avoiding costly and high emission transport off-site. This assumption is also made for asphalt and gravel. For this plant we assume 3 hectares of concrete or 30,000 square metres of 250 millimetre concrete at a density of 2.4 tonnes per cubic metre, making 18,000 tonnes which will be crushed and placed around the site. We will assume the majority of the site not covered by plant or concrete is gravelled, and assume it is 50 hectares which is 500,000 square metres.

The mass of incidental waste to take off-site is any refuse not included in other rates. An allowance for general waste is included in rates such as process modules, so this row is for quantities that cannot reasonably be expected to be included in other rates. For this example we will assume the equivalent of about ten truckloads or 300 tonnes. There is no allowance for fencing in any of the other rates so any fencing such as boundary security must be added to the security fencing row. We will assume a boundary fence of 6 kilometres which is 6,000 metres.

The next group of rates is for land rehabilitation. These rates do not apply to hardstand that will be retained, or where crushed concrete will be placed to create a hardstand. For land to be returned to vegetation, the user will typically need to enter quantities to the reshape for drainage, level, growth media, and the appropriate revegetation row. For this example we will assume 50 hectares will require reshaping and placement of growth media for rehabilitation back to native vegetation.

The purging row is an allowance to flush gases out of the process units and piping and typically one unit would be entered here. The last two defined rows are for investigations and these work the same as for the other sheets, with a one off rate to cover mobilisation of investigation equipment and personnel and prepare documentation such as work plans and health and safety plans, and a separate rate for the area to be investigated. Remember the area to be investigated is just the area where the intrusive investigation will occur, not the whole site. The rates are higher than the rates for activities on the mainland to account for mobilisation offshore. For our example, we will add one for the one-off cost and assume an area of 3 hectares will require investigation.

The bottom of the table has spare rows for any additional items the user wants to enter. This example is theoretical and the quantities entered should not be taken as representative of an actual facility. The total for the sheet is reported to the top of the sheet, and then reported to the Main sheet to the LNG plant from user build row.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator.

See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 12. This module will work through entering data into the Water Storage and Water Storage User Build input sheets.

The Water Storage input sheet uses the same by area rates as the Main sheet. The default view of this sheet shows the range of options across the drop-down menus in columns E through H. For example the first twelve rows show the 0 to 50 megalitre size with selections for contaminated or clean, lined or unlined, and the three land types. The key utility of this sheet is that it allows a listing of all dams and ponds either individually or by group so the user and the department can clearly see the disturbance footprint assigned to each. Further, as the calculation is by area, it improves alignment with other spatial data.

The user selects whether the dam or pond is contaminated or clean, the size or capacity in megalitres, whether the dam or pond is in pasture, native, or arid land, whether it is lined or unlined, and whether it is regulated or non-regulated. The selections except for regulated/non-regulated, determine the per area rate applied to the row. The user then enters the number of dams and ponds in that category or row. The entry to this column must be a whole number, that is no decimals, and the calculator will communicate an error if a whole number is not entered. The user then enters the disturbance area for the dams and ponds in that row. For clarity, if more than one dam or pond is entered to a row, the user must enter the sum of the disturbance areas for each dam or pond. The area is the crest area of the structure. The per area rate is multiplied by the total disturbance area to get the total cost for each dam or pond in the category.

The number of dams and ponds in the category is for information only and does not feature in the calculation. It is not mandatory to enter the number but will assist the department to understand what is being costed. The regulated/non-regulated selection also does not feature in the calculation. Whether a dam is regulated or non-regulated is dependent upon the consequence category for the structure. Further information can be found in department's guidance document Structures which are dams or levees constructed as part of environmentally relevant activities (ESR/2016/1934). This regulated or non-regulated selection provides information needed by the department to reconcile spatial data, assist in assessment and compliance, and improve overall data and reporting of authorised water storages. The selection should be consistent with any regulated dam register required to be kept as part of the environmental authority.

The selection of contaminated or clean contents is a decision for the user. Generally, dams and ponds such as interceptors receiving oily water should be considered contaminated. The difference between contaminated and clean is the assumed sediment thickness which can be seen in the Assumptions sheet. A lined dam is assumed to have a plastic liner like high density polyethylene. Clay lined dams without a plastic liner are considered unlined.

For large dams where the land type may change, the user may need to split the disturbance between two land categories. The number of dam or ponds in each category, for example 0 to <= 50 megalitres contaminated, lined, pasture, are summed on the right hand side of the sheet and multiplied by the associated rate to get a total cost for the category. The cost for all categories is summed and displayed at the top of the sheet and reported to the Water Storage input sheet row in the Main sheet. The Water Storage input sheet rates do not include an allowance for water management, and this must be entered into the Main sheet if applicable. Entry to this sheet starts as usual with the map ID and then the name of the dam or pond or group of dams or ponds. The user then works across the drop-down menu columns selecting the item that best represents the item being costed. Remember, the number of dams and ponds in the category or row does not feature in the calculation but provides context for the reviewer. Further, if more than one dam or pond is entered to a row, the user must enter the sum of the disturbance areas for each dam or pond. We will work through an example with one row of a group of dams or ponds and three individual line items.

After entering the map ID we enter the name. For this first row, we are assuming there are five small ponds in an area. For a group entry to be made, the pond characteristics must be similar and fit within the drop-down categories. Our five ponds are ponds associated with drilling supply water and clean, so we select clean from the first drop-down menu. The next selection is the capacity. The capacities can be different as long as they all fall within the capacity range selected for that row. Our five ponds have crest capacities of 1, 1.5, 2, 3.5, and 4 megalitres so they all fit within the zero to fifty megalitre section. The land in which they are situated is pasture so we select pasture in the land type column, and the ponds are lined to conserve water so we select lined in the lined column. The ponds are also non-regulated. We enter five into the number column. Three of the ponds have a crest area of 10 by 10 metres and the other two are 20 by 20 metres. We can enter the calculation for the total disturbance area to the cell to make it easier for us and to show the reviewer how the number was arrived at. So in this case, we enter brackets as we will divide by ten thousand to convert to hectares, three by ten by ten plus two by twenty by twenty, close brackets and then divide by ten thousand to get hectares. That’s it for this row and you can see the total disturbance area for the group of ponds is allocated to the zero to less than or equal to fifty megalitres, clean, lined, pasture column.

The next three entries will be individual dams. They are called Ochre 1, 2, and 3. We can enter all the names first. Ochre 1 is a lined evaporation pond containing clean water with a capacity of two thousand megalitres and crest area of thirty hectares in an arid environment. It is non-regulated. Ochre 2 is a lined process water pond receiving oily water of ten megalitres capacity and crest area of thirty by thirty metres (or 0.09 hectares) in an arid environment. It is regulated. Ochre 3 is a lined brine pond of two hundred megalitre capacity and a crest area of seven hectares in an arid environment. It is also regulated. On the right you can see how the calculator has allocated the quantities and at the bottom how the areas are multiplied by the per hectare rates. The total is shown at the top and reported to the Main sheet.

The Water Storage User Build sheet allows the user to construct a rate by defining specific items to the dams or ponds. The sheet has similar selections to the Water Storage user input sheet but allows the user more flexibility on specific items such as sediment thickness and liner area. The sheet uses the same underlying default rates as the Main sheet and the Water Storage user input sheet.

The sheet requires the user to input or select the dam or pond type, for example interceptor, oily/water, raw/produced water, brine, evaporation etc. The user also selects whether the structure is regulated or non-regulated, the number of structures in each category, the land type, the crest area, whether the structure is lined or unlined, the width, height and slope of walls, and the number of dams to share upfront cost.

The user must enter these elements for the calculation to work correctly and for the department to have sufficient information for review. The key elements required for the calculation to work are indicated by 'Key Input' in the row beneath the header, and the department will query the user if any of these are absent.

The user has the option to override defaults and calculated values for the following:

Liner area. If the user does not enter a liner area the calculation assumes a multiplier as shown within the formula cell. The calculation checks the liner section and sets the liner area to zero if unlined is selected. If the user enters a liner area less than the crest area, the cell in the 'Liner Warning' column turns red and displays an 'E'. If this was not an error, the user must provide justification.

User entered area of the wall. The area is calculated based on the dimension values already entered, however the user can over-ride this in this cell. The volume of dirt in bunds column will then use this value instead of the calculated value.

Bund wall perimeter. If the user does not enter a perimeter, the calculation simply calculates the average length of a wall and multiplies it by four.

Sediment thickness. If the user does not enter a sediment thickness, the calculation uses the default as shown in the Assumption sheet and linked to by a hyperlink in that column.

Growth media area. If the user does not enter a growth media area, the calculation assumes the entire crest area will receive growth media and be revegetated. If the user selects arid in the land type selection, the growth media area is automatically set to zero.

Growth media thickness. If the user does not enter a growth media thickness, the calculation uses the default as shown in the Assumption sheet and linked by a hyperlink in that column.

Area to investigate. If the user does not enter an area to investigate area, the calculation assumes the entire crest area will be investigated. In some cases, the user may determine that investigation is not required, in which case, justification must be provided.

The user can select the haulage distance and fleet size for sediment removal, dozer push in walls, and growth media. Further information on fleet selection is included in the user guide. The rate associated with each selection is sourced from the Subrates sheet which can be accessed by the hyperlinks.

The capacity or volume of the dam or pond in megalitres serves to indicate the cost in dollars per megalitre on the right-hand side of the table and is not mandatory to enter.

The calculator calculates the sum for each sub-activity, for example application of growth media associated with the structure, and adds these together to reach a total cost. The total for the structure is multiplied by the total number of structures in that category to obtain the total for the row. It is important that the entries made in each row are by a dam or pond, which is different to the Water Storage sheet where the total area for all the structures in that row are entered.

The 'number of dams to share upfront cost' column associated with land investigation acknowledges that one-off type costs associated with the investigation, for example preparation of health and safety and work plans, is typically shared among items that can be reasonably assumed to be visited in one investigation campaign. Omitting this entry is a common cause of error in this calculation.

An example of its use is where a single dam or pond is entered to a row and it is the only dam or pond in that area that will be investigated. In this case the entry will be one, indicating that the full one-off costs are applied to that dam or pond.

Another example is five dams of similar characteristics and in the same local area are added to a row. In this case it is reasonable to enter five indicating that the one-off costs will be split between all the dams.

Another example is where four dams of similar characteristics are entered to the row but are separated by hundreds of kilometres. In this case it may be reasonable to enter 2 indicating that two separate investigation campaigns will be undertaken.

Let's go through an example. As always, the map ID and name are entered first. Our example is one dam called Ochre 4. It is an evaporation pond with a crest capacity of one thousand megalitres and is a regulated structure. We enter one in the number of structures column and select native as this dam is in an area of native grasses. The crest area is 30 hectares and it is lined with a total liner area as per the drawings of 34 hectares. You can see the calculator assumes a liner area equal to the crest area multiplied by 1.2 to account for slopes unless the user overrides this. As an example if we entered 29 hectares for the liner area we see an error is communicated. Let's change it back to 34 and continue on. The next section is for pushing in the dam or pond walls which is basically an earthmoving activity. From the drawings we know the wall height is four metres, the wall width at the top is two metres, and the slope of the wall is one in three. You can see the cross-sectional area calculated based on these inputs. We accept this calculation rather than enter a specific cross-sectional area as it looks correct based on our other inputs. The calculator outputs a linear length of bund walls but we know from the drawings the actual length is 2,005 metres so we enter this to the user entered linear length of bunds cell to override the calculator. The calculator calculates the volume of soil in the bunds and this value will be used with the rates determined by selections made later in the row.

The next section is about the sediment of the dam. For this example, we are assuming we don't know the sediment depth so we accept the default thickness and subsequent calculation of sediment volume. As for the bund soil volume, this value will be used with the rates determined by selections made later in the row.

The next section is the application of growth media, and the calculated area and default thickness of 150 mm are appropriate for this dam. Consequently we accept the calculated volume for growth media which again will be used with the rates determined by selections made later in the row.

The next section is for land investigations. In this case we determined that an investigation is required so we accept the default area to investigate produced by the calculator.

The next columns are for fleet size and distance selections for each of the rehabilitation activities. There is further information on these items in the user guide and if the user is unsure they can leave the default selections. In general larger dams are likely to use larger fleets and have longer distances to transport quantities such as sediment. In this example we will be transporting sediment on average 2 kilometres and will be using a medium fleet. The walls will be pushed in with a maximum push length of 40 metres and using a large D10 dozer. The distance between source and average placement for growth media is 2 kilometres and we will be using the same fleet as for the sediment. In the unit rates section you can see the rates determined by the selections made by the user, and then the next section shows the results for multiplication of these by the corresponding quantities.

The final section shows the total cost for the dam and the total cost for all the dams in the row, and cost rates dollar per megalitre and per unit area. The cost rates are for context only and show an error message if the user has neglected to enter the required information, though the volume entry is not mandatory. The land investigation column indicates if the user has not entered the number of dams to share upfront cost item. The totals for each row are summed, reported to the top of the sheet, and then reported to the water storage user defined row in the Main sheet.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator. See you in the next module.

Welcome back to the training for the 2022 edition of the estimated rehabilitation cost calculator for petroleum and gas. This is Module 13. This module will work through entering data into the Investigation Contamination user input sheet.

The Investigation Contamination user input sheet allows the user to list out investigation areas and waste quantities for disposal off-site. The Main sheet has default rates for contaminated land investigations, including preliminary and detailed site or intrusive investigations, treatment of hydrocarbon impacted soil, and disposal off-site to a licensed facility. The default rates for activities in other domains including dams and ponds and process facilities include land investigation. Similarly, waste management including off-site disposal where required, is included in rates for those domains and activities such as wells.

Consequently, the rates in the Investigation Contamination user input sheet are unlikely to be commonly required. An example of where they may be used are a camp with an associated refuelling facility of material size, for example greater than a 5 kilolitre tank and associated pump or pumps. In this case, the sheet may be used to show the investigation. Another example is a separate land treatment facility where material volumes, for example greater than 500 cubic metres of soil, are being treated on a one-off or routine basis. Another example is a stockpile of metal or asbestos contaminated soil either on or off-site. Contaminated soil management is not included in the default rates. A further example is stockpiles of asbestos containing materials, for example from asbestos pipe.

The first table in the sheet is for site investigations. In general, an area will require one preliminary site investigation. The preliminary site investigation unit rate is a one-off cost. A preliminary site investigation in the context of a facility or site closure is typically a part of planning activities and aims to identify areas of known, suspected or reasonably probable contamination resulting from petroleum and gas operations. The preliminary site investigation comprises a review of the site settings, the site history, operational history including any incidents and accidents, hazardous liquids, solids storage schedules, and sources of potential impacts and the receptors.

If the user enters a preliminary site investigation but not subsequent intrusive site investigation quantities, the user should identify why in the user information column on the Main sheet or in the Information sheet.

The approach to estimating costs for site investigations recognises that most investigations of this nature comprise a single campaign, as in one mobilisation taking in multiple areas. The one-off cost allows for planning and preparation, ongoing project management, health and safety plans, work plans and reporting. A combination of the factors including risk, the nature and extent of the rehabilitation program, site history and grouping, and relative proximity of infrastructure must be considered in determining the number of one-off costs to apply. One example of an area that may individually comprise one campaign is a service facility area such as fuel or chemical stores, workshop, vehicle washdown, or sewage treatment. Another example is the oil storage at a processing plant.

The default rates for intrusive investigations assume several soil bores per area and a specific suite of analytes. The area is applied only to the area to be investigated. For example, for a tank farm within a processing facility, only the tank farm area is entered. The user can describe the area for a land investigation by entering width and length, diameter, or the area. This recognises that users will have different quantity types. Some users may use area outputs from GIS data and others may measure length and width off a plan. The hierarchy is user entered area, followed by width and length and then diameter. So if an area is entered, the calculator ignores any length and width and diameter entries. If area is not entered and length, width, and diameter are added, the calculator uses length and width and ignores diameter. The 'Calculated Area (ha)' column shows the calculation of area based on the user entered dimensions and if a value is entered directly to the 'User Area (ha)' column, the 'Area for calculations (ha)' column will default to that entry. If a group of investigation areas is entered to one row, the total area or sum of diameters or sum of widths and lengths must be entered so that all areas are captured.

The table summarises the quantities for preliminary investigations, one-off costs for site investigations, and the area of site investigations and reports these separately to section 12 of the Main sheet. These quantities are added to any entries made directly to the Main sheet and multiplied by the default rates to get the total for each line.

The next table is the disposal to off-site facility table. The user can select the contamination from the drop-down menu and enter the mass of that contaminant. Sludge can be used for tank bottoms or brine type material. Where applicable, the calculator will add the quantities entered to the off-site disposal table in the Waste Register and apply the levy. The columns to the right of the user entries show how the calculator has allocated the quantities and these are summed at the bottom of the table and reported separately to section 12 of the Main sheet, as for the investigation quantities.

Let's look at some examples. For investigations we will use the various different ways to enter dimensions. As always we first enter the map ID and then the name of the area. Let's call the areas Remote vehicle filling station, Legacy sludge pond area, and Remote landfarming area. For the first area, we have proof that a recent preliminary site investigation was undertaken so we will not enter a quantity. For the others a preliminary site investigation is required so we enter a one. The remote vehicle filling station is almost a perfect square and we have length and width measurements of 20 metres each. So we enter twenty to length and twenty to width. The legacy sludge pond area is almost a circle of a diameter 50 metres so we use the diameter. The remote landfarming area is an irregular area but we have a GIS generated polygon of two hectares.

For the disposal to off-site facility table, we again enter the map ID and name of the area. In each case we just enter the mass of the contaminated material to dispose and then select the contaminant from the drop-down menu. In some cases such as contaminated soil, a material may contain several contaminants. For the purpose of this calculator, the predominant contaminant is selected. Lets add 1 tonnes to each row to demonstrate how the quantities are reported to the right of the table and then through to the Main sheet.

As always, for more information or specific instructions, please consult the user guide which is also available on the Business Queensland website, below the download for the calculator.

That concludes the final module in the training, thanks for joining me.