❓ Question regarding the status, decommissioning, and financial liabilities associated with abandoned onshore petroleum wells in WA, particularly Waggon Creek-1 and Vienta-1. The government has assumed responsibility for the sites while investigating decommissioning options and cost recovery.
AnsweredQoN 1670Legislative Council
Asked
10 October 2023
Member
Portfolio
Mines and Petroleum; Energy; Hydrogen Industry; Industrial Relations
QuestionView source ↗
(1) What is the current status of the Waggon Creek-1 and Vienta-1 onshore petroleum wells in the East Kimberley and who is legally responsible for them? (2) When did the Department of Mines, Industry Regulation and Safety (DMIRS) last inspect these two wells? (3) Were integrity tests undertaken on these two wells to determine whether there were any issues with the casing and cement integrity and if there were any potential gas leaks with either well: (a) if yes to (3), what were the results; and (b) if no to (3), why not? (4) Following the inspection, did DMIRS create a report on the status and condition of the wells and the works required to decommission them safely and rehabilitate the sites: (a) if yes to (4), will the Minister release the report; and (b) if no to (4), why not? (5) What is the current legal status of the Exploration Permit EP386 upon which these wells are located? (6) Do any of the following companies retain any legal rights or legal obligations over EP386: (a) Onshore Energy Ltd; (b) Advent Energy Ltd; and (c) MEC Resources Ltd? (7) If yes to 6(a), (b) or (c): (a) what are those legal rights or legal obligations? (8) Which entity, government or private, is now liable for the cost of safely decommissioning and rehabilitating the Waggon Creek-1 and Vienta-1 wells and well sites? (9) What is the estimated cost of safely decommissioning and rehabilitating these two wells? (10) Were any of the companies named above in breach of DMIRS licence conditions or Directions Notices: (a) if yes to (10), which company or companies, what were the breaches and when did the breaches occur? (11) Is DMIRS considering options by which it can recover the cost of safely decommissioning and rehabilitating these two wells: (a) if yes to (11), what means are being considered and when will DMIRS make a decision on cost recovery? (12) What does DMIRS currently estimate to be the total financial liabilities relating to abandoned but not safely decommissioned or rehabilitated onshore petroleum wells across WA, including the New Standard Energy Ltd and Onshore Energy Ltd wells? (13) Will the Minister support the creation of a pooled industry fund to ensure the public does not have to cover the cost of onshore petroleum companies’ negligence in relation to safely decommissioning and rehabilitating petroleum wells: (a) if no to (13), why not?
AnswerView source ↗
Answered
14 November 2023
Responded by
Parliamentary Secretary to the Minister for Mines and Petroleum; Energy; Hydrogen Industry; Industrial Relations
Response time
9 days
1. The Waggon Creek-1 well is suspended. The Vienta-1 well is shut-in. The State Government has assumed responsibility for the sites while it investigates all options for decommissioning of the wells.
2. DMIRS contracted a wellhead service provider to carry out well inspections of both wells on 21 and 22 June 2023.
3. Yes.
(a) No gas leak was detected from either well.
(b) Not applicable.
4. No.
(a) Not applicable.
(b) The well integrity inspection in June 2023 evaluated the condition of the wells and made recommendations for ongoing management. DMIRS is still considering the works required to decommission and rehabilitate the sites.
5. Petroleum Exploration Permit EP 386 expired on 31 March 2020.
6. (a) No.
(b) No.
(c) No.
7. Not applicable.
8. DMIRS is considering all options associated with the costs of decommissioning the wells.
9. The cost is unknown at this time. DMIRS is still considering the works required to decommission and rehabilitate the sites.
10. Yes
(a)
Company
Breach
Date
Onshore Energy Pty Ltd
Failure to comply with Condition 1 of its permit, EP 386, which required Onshore Energy to meet minimum work program requirements while EP 386 was in force.
31 March 2018;
31 March 2020
Onshore Energy Pty Ltd
Failure to decommission Waggon Creek -1 and Vienta -1 well and site restoration as per EP386 title commitment.
31 March 2020
11. Yes.
(a) A range of cost recovery options are being considered at this time.
12. An estimate of the total financial liabilities is not available.
13. The Cook Labor Government supports creating an adequate financial assurance mechanism to ensure the public does not have to fund the decommissioning and rehabilitation of petroleum wells.
2. DMIRS contracted a wellhead service provider to carry out well inspections of both wells on 21 and 22 June 2023.
3. Yes.
(a) No gas leak was detected from either well.
(b) Not applicable.
4. No.
(a) Not applicable.
(b) The well integrity inspection in June 2023 evaluated the condition of the wells and made recommendations for ongoing management. DMIRS is still considering the works required to decommission and rehabilitate the sites.
5. Petroleum Exploration Permit EP 386 expired on 31 March 2020.
6. (a) No.
(b) No.
(c) No.
7. Not applicable.
8. DMIRS is considering all options associated with the costs of decommissioning the wells.
9. The cost is unknown at this time. DMIRS is still considering the works required to decommission and rehabilitate the sites.
10. Yes
(a)
Company
Breach
Date
Onshore Energy Pty Ltd
Failure to comply with Condition 1 of its permit, EP 386, which required Onshore Energy to meet minimum work program requirements while EP 386 was in force.
31 March 2018;
31 March 2020
Onshore Energy Pty Ltd
Failure to decommission Waggon Creek -1 and Vienta -1 well and site restoration as per EP386 title commitment.
31 March 2020
11. Yes.
(a) A range of cost recovery options are being considered at this time.
12. An estimate of the total financial liabilities is not available.
13. The Cook Labor Government supports creating an adequate financial assurance mechanism to ensure the public does not have to fund the decommissioning and rehabilitation of petroleum wells.
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