The Regulation organises its obligations around a small number of recurring regulatory concepts: safe gas network, safety and operating plan, auditing and certification, gas quality standards and testing, notification and reporting, and excavation information. Each is given discrete statutory mechanics.
Safe gas network (ss 7, 14). Section 7 places an overarching duty on a network operator to develop, maintain and operate a “safe gas network” and to take into account “relevant standards” when designing, constructing, operating or extending networks. Section 14 defines the purpose of a safety and operating plan as providing for construction, alteration, extension, maintenance, repair and operation of distribution pipelines or systems. The safety and operating plan is the operational instrument through which safety is to be achieved (s 14(1)-(2)).
Safety and operating plans and Schedule 1. The Regulation prescribes the content and form of those plans (s 15) and specifies detailed requirements in Schedule 1: objectives, management structure, distribution-district descriptions, analysis of hazardous events, emergency procedures, gas quality (including odourisation), testing procedures, network operator rules concerning meter/consumer service work, record management and identification of ownership of pipes (Schedule 1, cll 1-13). Plans must be lodged with the Secretary (s 16) and reviewed at least every two years or following significant change (s 17).
Auditing and certification (ss 18-21). Network operators must nominate an independent, competent auditor at least one month before that auditor first issues a certificate (s 18). An initial auditor’s report and certificate must accompany the plan on lodgement and address compliance, adequacy for the size and complexity of the network and that measures and trained personnel are in place (s 19). Thereafter annual auditor reports and certificates are required (s 20). The Secretary may require further audits and, if dissatisfied, can direct audits to be carried out by an auditor nominated or appointed by the Secretary (s 21).
Gas quality and testing (Part 4, ss 27-36). “Compliant natural gas” is defined by reference to AS 4564,2020 (s 27). Reticulators and retailers must not inject, convey or supply non-compliant gas (s 28). Reticulators must test gas before conveying it (s 31), keep a register of test results (s 31(3)), include raw measurements for derived values such as the Wobbe Index (s 31(4)), and make registers open for public inspection (s 31(5)). Testing agencies and retailers must notify the Secretary without delay if they become aware of non-compliant gas (s 32). The Secretary has powers to require information and to issue directions and notices regarding non-compliant gas (ss 33-34). Reticulators must odourise gas to the odour intensity specified in their safety and operating plan (s 35).
Information, notification and excavation (Part 5, ss 37-41). The Regulation prescribes Before You Dig Australia Limited as the designated information provider for the Act’s excavation information provisions (s 37). It defines what excavation within a gas network is “notifiable” (s 38), requires requests for information under the Act to be made within 30 days of proposed work (s 39(1)), obliges persons to have regard to information provided by the designated information provider and network operators (s 39(3)), and sets standards for how notice of pipeline damage is to be given to network operators (s 41). The Regulation also requires network operators to ensure notification of the SafeWork NSW Excavation Work Code of Practice is provided to persons proposing notifiable excavation work (s 40).
Secretary discretion and exemptions (ss 23-26, 34, 36). The Secretary has multiple discretionary powers: to direct amendments to plans (s 23), to direct compliance actions (s 24), to require additional audits (s 21), to grant exemptions from plan content requirements (s 26) or from requirements in the natural gas Part (s 36), and to issue directions in respect of non-compliant gas (s 34). Exemptions may be conditional and subsequently varied or revoked (ss 26(2)-(3), 36(2)-(3)).
Enforcement and penalties. The Regulation specifies maximum penalties expressed in penalty units. Core safety breaches attract high maximums (up to 10,000 penalty units for corporations and 5,000 for individuals in several provisions, for example ss 7, 14, 21(5), 23(2), 24(3)). Lesser but significant offences carry penalties commonly of 2,000 penalty units for corporations and 100 penalty units for individuals in many operative provisions (for example ss 10-12, 28, 31-32, 34).
Record-keeping and public access. The instrument imposes retention and availability requirements: notices about leak tests must be kept for five years by the person conducting the test (s 11(6)); network operator records of safe tests are kept for up to 10 years or until superseded (s 11(7)); testing agency registers must be kept at the main office and open for public inspection during ordinary business hours (s 31(3), (5)) and the Secretary may require information to be provided at no cost (s 31(6)(a)).
Overall, the Regulation takes a prescriptive, plan-and-audit approach to operational safety while providing broad supervisory and corrective powers to the Secretary and duties to report and publish selected information.