The Gas Governance (Critical Contingency Management) Regulations 2008 (CCM Regulations) were amended in 2013 following a recommendation to the Minister of Energy and Resources from Gas Industry Co. One of the amendments changes the arrangements relating to regional critical contingencies to ensure the status of an event (regional or otherwise) be determined as soon as possible during a critical contingency. As a result, the 2013 amendments included the following requirements:
Before Gas Industry Co can publish guidelines it is required to:
Accordingly, Gas Industry Co has released a brief document containing draft guidelines for consultation and sought stakeholder feedback on those draft guidelines.
Submissions closed Wednesday, 26 February.
The original set of Guidelines were issued in February 2009, with the aim of providing clarity and consistency in the designation process for ESPs and MLCs.
The purpose of this revision of the Guidelines was to reflect experience to date on the designation process, and particularly arising from the Maui Pipeline outage in October 2011. Gas Industry Co undertook a comprehensive review of the Gas Governance (Critical Contingency Management) Regulations 2008, and it may be that this review will lead to changes in how ESPs and MLCs are defined and designated. It can, however, be a lengthy process to make changes to regulations, and industry participants have indicated a desire for an interim measure. As such, Gas Industry Co considers it appropriate to provide greater clarity to industry participants through a revision of the current Guidelines, so that lessons from recent experiences are implemented in a timely fashion and as far as possible within the scope of the regulations as they are currently drafted.
Please note that the proposed revisions to the Guidelines relate only to ESPs, not MLCs. Also, future changes to the regulations may require a further revision of the Guidelines or may negate the need for them.
The latest Guidelines can be found here
Gas Industry Co engaged Concept Consulting Group to review the effectiveness of the critical contingency management processes and governance arrangements during the Maui outage.
Their discussion paper, 'Review of Gas Critical Contingency Management: Post Maui Pipeline Outage' and subsequent submissions, can be accessed below.
Gas Industry Co then analysed the submissions received on the Concept Consulting Group discussion paper, ‘Review of Gas Critical Contingency Management: Post Maui Pipeline Outage’, which can be found in the Submissions Analysis document.
While submitters supported most of the recommendations in the Review Report, the Submissions Analysis noted that there was more work to be done in the areas of:
Gas Industry Co prepared a Statement of Proposal, which is the formal description of proposed amendments to the CCM Regulations.
It can be viewed here.
These presentation slides from an industry workshop in May 2007 contain an updated and revised approach to emergency management based on submission analysis from the July 2006 discussion paper. The proposal given at the workshop is a combination of a mandatory framework based on regulations together with industry arrangements that provide the details. The presentation slides also highlight key design issues and explores how the proposed hybrid approach would interact with MPOC mechanisms and processes.
This discussion paper reviewed arrangements for dealing with gas outages and contingencies, recommended mandatory arrangements be put in place, and highlighted issues and design decisions that needed to be addressed. Gas Industry Co took into account feedback received on the paper when undertaking the detailed design of gas emergency arrangements.
This report, prepared for Gas Industry Co by Farrier Swier Consulting in association with Johnson Winter & Slattery, advised on the commercial issues involved in updating the National Gas Outage Contingency Plan (NGOCP). The overall objective was to develop a soundly based policy for pricing under outage and contingency situations. The report set out detailed background information and analysis to enable stakeholders to provide informed input as a basis for a decision by Gas Industry Co on the most appropriate approach.