Orbit Drilling Prosecution - Australian Drilling Industry Association
Orbit Drilling Prosecution - Australian Drilling Industry Association
Orbit Drilling Prosecution - Australian Drilling Industry Association
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FINANCIAL INSTITUTIONS ENERGY INFRASTRUCTURE AND COMMODITIES TRANSPORT TECHNOLOGY<br />
ADIA 2010<br />
OHS for <strong>Drilling</strong> <strong>Industry</strong><br />
Michael Tooma<br />
Partner<br />
Norton Rose Australia<br />
23 September 2010
First reckless endangerment conviction<br />
•<strong>Orbit</strong> <strong>Drilling</strong> became the first company to be convicted under new<br />
reckless endangerment provisions in the Victorian OHS legislation.<br />
Similar provisions exist in NSW.<br />
•<strong>Orbit</strong> <strong>Drilling</strong> was fined $750,000 in the Melbourne County Court.<br />
•A director of <strong>Orbit</strong> <strong>Drilling</strong>, Martin John Smith, was convicted and<br />
fined $120,000 in relation to the incident for failing to take reasonable<br />
care to ensure compliance by his company.<br />
•A supervisor is awaiting the outcome of his personal prosecution<br />
under the same provisions with a maximum 5 years imprisonment<br />
term.
<strong>Orbit</strong> <strong>Drilling</strong> <strong>Prosecution</strong><br />
•The case relates to a 2006 incident<br />
where a 21 year-old was crushed to<br />
death when the Mack truck he was<br />
driving went out of control on a steep<br />
slope, overturned, and crushed him.<br />
•The deceased was instructed to<br />
drive the Mack truck in off-road<br />
conditions on a slope exceeding 10<br />
degrees.<br />
•Instead of reversing onto a drilling<br />
pad located on top of a steep hill, the<br />
truck gained speed before rolling over<br />
at the bottom of the hill. He was<br />
ejected from the truck’s cabin crushed<br />
to death beneath the truck.<br />
Deceased: 21 year old Bradley Alford
<strong>Orbit</strong> <strong>Drilling</strong> <strong>Prosecution</strong><br />
•The incident occurred in<br />
December 2006 at Clonbinane in<br />
Victoria.<br />
•<strong>Orbit</strong> drilling was working on an<br />
Oz Minerals project.<br />
•Bradley Alford had moved from<br />
Western Australia to Victoria for<br />
the job with <strong>Orbit</strong> <strong>Drilling</strong>.
<strong>Orbit</strong> <strong>Drilling</strong> <strong>Prosecution</strong><br />
• Experience - The young worker had held a licence to drive a Mack<br />
truck for little more than two weeks when he died.<br />
•That involved only eleven hours of driving lessons.<br />
•Training - He was not trained to understand gear selection for this<br />
terrain.<br />
•He hadn’t undergone an induction or safety training, nor had he had<br />
the chance to build up his heavy vehicle skills under supervision.<br />
• Plant safety – The truck hadn’t been serviced for over six months.<br />
•The truck’s primary brake wasn’t working.<br />
•The truck’s emergency hand brake wasn’t working.<br />
• The truck’s secondary brake had been disconnected.
<strong>Orbit</strong> <strong>Drilling</strong> prosecution<br />
•County Court Judge Felicity<br />
Hampbel commented said that<br />
<strong>Orbit</strong> <strong>Drilling</strong>’s OHS system was<br />
woefully inadequate. Her Honour<br />
observed:<br />
•“A case such as this is a stark<br />
reminder that behind every<br />
occupational health and safety<br />
prosecution is a real<br />
person…someone’s sibling, child,<br />
spouse or friend, whose safety<br />
and wellbeing should at all times<br />
be the paramount concern of<br />
every employer.”
<strong>Drilling</strong> industry international safety<br />
performance<br />
2009 2010 YTD (Q2)<br />
Fatalities 32 25<br />
LTI 744 377<br />
LTIFR 1.84 1.94<br />
Total Recorded Incidents 2,581 1,299
Penalties under Model OHS Laws<br />
Category Description Maximum penalty<br />
Category 1 Most serious cases – breach the primary<br />
(general) duty involving recklessness and<br />
serious harm to a person or risk of such harm.<br />
Category 2 Breach of the primary (general) duty where<br />
serious harm or the risk of it without the element<br />
of recklessness.<br />
Category 3 Breach of the duty that does not involve high<br />
risk of serious harm.<br />
Corporation = $3 million<br />
Individual = $600,000 Imprisonment – up to five<br />
years<br />
Workers and other persons = $300,000<br />
Imprisonment – up to five years<br />
Corporation - $1.5 million<br />
Individual officers = $300,000<br />
Workers and other persons = $150,000<br />
Corporation = $500,000<br />
Individual officer = $100,000<br />
Workers and other persons = $50,000
What are the key changes under Model<br />
OHS Laws?<br />
Primary Duty<br />
Expanded definition of worker<br />
Duty of persons at the workplace<br />
Consultation<br />
Officer duty of care
Suppliers of<br />
plant,<br />
substances or<br />
structures<br />
Installers of<br />
plant or<br />
structures<br />
Change of Approach to Duty?<br />
Importers of<br />
plant,<br />
substances or<br />
structures<br />
Controller of<br />
workplace<br />
Employer<br />
Manufacturers<br />
of plant,<br />
substances or<br />
structures<br />
Controller of<br />
plant, fixtures or<br />
fittings<br />
Designers of<br />
plant,<br />
substances or<br />
structures<br />
Suppliers of<br />
plant,<br />
substances or<br />
structures<br />
Installers of<br />
plant or<br />
structures<br />
Importers of<br />
plant,<br />
substances or<br />
structures<br />
Controller of<br />
workplace<br />
Person<br />
conducting<br />
a business<br />
or<br />
undertaking<br />
Manufacturers<br />
of plant,<br />
substances or<br />
structures<br />
Controller of<br />
plant, fixtures or<br />
fittings<br />
Designers of<br />
plant,<br />
substances or<br />
structures
Person Conducting a Business or<br />
Undertaking<br />
volunteer association means<br />
a group of volunteers working<br />
together for one or more<br />
community purposes where<br />
none of the volunteers,<br />
whether alone or jointly with<br />
any other volunteers, employs<br />
any person to carry out work<br />
for the volunteer association<br />
Volunteer<br />
Profit<br />
Alone<br />
PCBU<br />
Joint<br />
Nonprofit<br />
Partnership<br />
Unincorporated<br />
<strong>Association</strong>s<br />
Officers<br />
and<br />
workers
Impact of shift to PCBU<br />
Employer PCBU<br />
Product<br />
Liability<br />
OHS<br />
Public<br />
Liability
Not “THE”<br />
Safety Duties<br />
Suppliers of<br />
plant,<br />
substances or<br />
structures<br />
Installers of<br />
plant or<br />
structures<br />
Importers of<br />
plant,<br />
substances or<br />
structures<br />
Controller of<br />
workplace<br />
A Person<br />
conducting<br />
a business<br />
or<br />
undertaking<br />
Manufacturers<br />
of plant,<br />
substances or<br />
structures<br />
Controller of<br />
plant, fixtures<br />
or fittings<br />
Designers of<br />
plant,<br />
substances or<br />
structures<br />
• Ensure so far as is reasonably<br />
practicable the health and safety at<br />
work of:<br />
• Workers engaged or caused to<br />
be engaged by the person<br />
• Workers whose activities in<br />
carrying out work are influenced<br />
or directed by the person<br />
• Workers of a prescribed class<br />
• Ensure so far as is reasonably<br />
practicable that the health and safety<br />
of other persons is not put at risk<br />
from work carried out as part of the<br />
conduct of the business or<br />
undertaking.
Reasonable practicability<br />
Not<br />
Reasonably<br />
Practicable<br />
Reasonably<br />
Practicable
The liability formula<br />
Person<br />
Risk<br />
Work from<br />
conduct of<br />
business or<br />
undertaking<br />
Liability
Officer<br />
Worker<br />
Person at<br />
the<br />
workplace<br />
A person is a worker if the person<br />
carries out work in any capacity for a<br />
person conducting a business or<br />
undertaking, including work:<br />
(a) as an employee<br />
(b) as a contractor or sub-contractor<br />
(c) as an employee of a contractor or subcontractor<br />
(d) as an employee of a labour hire<br />
company who has been assigned work in<br />
the person's business or undertaking<br />
(e) as an outworker<br />
(f) as an apprentice or trainee<br />
(g) as a student gaining work experience<br />
(h) as a volunteer<br />
The person conducting the business or<br />
undertaking is also a worker if the<br />
person is an individual who carries out<br />
work in that business or undertaking.
Impact of expanded definition<br />
of worker<br />
worker<br />
Consultation<br />
Victimisation<br />
Workplace<br />
• Duty to consult<br />
workers in relation<br />
to matters<br />
affecting their<br />
health and safety<br />
• Protection against<br />
discrimination and<br />
victimisation<br />
afforded to<br />
workers<br />
• Worker is key<br />
lynch pin of<br />
workplace<br />
definition
Impact of expanded definition<br />
of worker<br />
Worker Place Workplace
Officer<br />
Worker<br />
Person at<br />
the<br />
workplace<br />
A workplace is a place where work is<br />
carried out for a business or<br />
undertaking, and includes any place<br />
where a worker goes, or is likely to be,<br />
while at work.<br />
Place includes:<br />
(a) vehicle, ship, boat, aircraft or other<br />
mobile structure<br />
(b)any installation on land, on the bed of<br />
any waters or floating on any waters
Who is an officer?<br />
Trustee of a<br />
compromise or<br />
other<br />
arrangement<br />
Administrator,<br />
Liquidator,<br />
Receiver or<br />
receiver<br />
manager<br />
Director<br />
Officer<br />
Shadow directors<br />
Secretary<br />
makes, or<br />
participates in<br />
decisions that<br />
affect the a<br />
substantial part<br />
of the business
Duty of officers under Model OHS Laws<br />
Expert Panel Review into <strong>Australian</strong> OHS Laws (Stewart-<br />
Crompton, Mayman and Sherriff Reports)<br />
“The provision creates a positive duty which is seen to apply immediately,<br />
rather than accountability only applying after a contravention by the company...<br />
By making the officer liable only for his or her own acts or omissions would<br />
provide a sense of control by the officer over their personal liability and a sense<br />
of fairness...[The positive duty of officers option] is more likely than the other<br />
options to ensure appropriate, proactive, steps are taken by an officer for<br />
compliance by the company with the duties of care placed on the<br />
company”.
Due Diligence<br />
Due diligence framework
Due Diligence<br />
Understanding of the<br />
nature of the<br />
operations of the<br />
business and the<br />
hazards and risks<br />
associated with those<br />
operations<br />
Knowledge of work<br />
health and safety<br />
matters<br />
Resources and<br />
Processes<br />
Due<br />
Diligence<br />
Information regarding<br />
incidents, hazards<br />
and risks and<br />
responding in a timely<br />
way to that<br />
information<br />
Legal compliance<br />
Verify the provision<br />
and use of these<br />
resources and<br />
processes
What should I be doing?
The Inner Core – Safety Leadership<br />
Commitment<br />
Resources<br />
Implementation
Critical Safety Leadership behaviour<br />
₪ Define and communicate clear expectations<br />
₪ Demonstrate felt leadership, be visible, engage<br />
₪ Take every opportunity to communicate safety principles<br />
₪ Personally comply with “Be healthy and safe” behaviour<br />
₪ Demonstrate a continuous commitment to safe service<br />
delivery<br />
₪ Start every meeting with a safety share<br />
₪ Coach/counsel/challenge direct reports<br />
₪ Conduct site visits, attend safety meetings
The Second Layer – Operational<br />
Defences<br />
Design<br />
Premises<br />
Plant<br />
Substances<br />
Process<br />
Procurement
The Outer Core – Human Factors<br />
People<br />
Contractors<br />
Suppliers<br />
Clients
System Supports – Human Factors<br />
Systems<br />
Training<br />
Consultation<br />
Supervision<br />
Incentives
Center Support – Planning for the<br />
Unthinkable<br />
Critical risk controls
Tail End Support - Responding<br />
Emergency management
System Foundation – System Health<br />
System performance assessment and review
Components of a Safety Culture<br />
Just<br />
Culture<br />
Flexible<br />
Culture<br />
Reporting<br />
Culture<br />
Safety<br />
Culture<br />
Learning<br />
culture<br />
Informed<br />
Culture
Components of a Safety Culture<br />
Just<br />
Culture<br />
Flexible<br />
Culture<br />
Reporting<br />
Culture<br />
Safety<br />
Culture<br />
Learning<br />
culture<br />
Informed<br />
Culture<br />
Involves creating a safety<br />
information system that collects,<br />
analyses and disseminates<br />
information from incidents and<br />
near-misses as well as from regular<br />
proactive checks on the system’s<br />
vital signs.
Components of a Safety Culture<br />
Just<br />
Culture<br />
Flexible<br />
Culture<br />
Reporting<br />
Culture<br />
Safety<br />
Culture<br />
Learning<br />
culture<br />
Informed<br />
Culture<br />
An informed culture requires a<br />
climate where people are prepared<br />
to report their errors and nearmisses.
Components of a Safety Culture<br />
Reporting depends on an<br />
atmosphere of trust in which<br />
people are encouraged to provide<br />
safety-related information and<br />
where there is a clear line between<br />
acceptable and unacceptable<br />
behaviour<br />
Just<br />
Culture<br />
Flexible<br />
Culture<br />
Reporting<br />
Culture<br />
Safety<br />
Culture<br />
Learning<br />
culture<br />
Informed<br />
Culture
Components of a Safety Culture<br />
Just<br />
Culture<br />
The ability to reconfigure the<br />
organisation in the face of danger,<br />
i.e. where control passes to task<br />
experts on the spot where the<br />
circumstances require it.<br />
Flexible<br />
Culture<br />
Reporting<br />
Culture<br />
Safety<br />
Culture<br />
Learning<br />
culture<br />
Informed<br />
Culture
Components of a Safety Culture<br />
Just<br />
Culture<br />
Flexible<br />
Culture<br />
Reporting<br />
Culture<br />
Safety<br />
Culture<br />
Learning<br />
culture<br />
Informed<br />
Culture<br />
An ability and willingness to draw<br />
the right conclusions from its<br />
safety information and to<br />
implement corresponding reforms.
Critical Success factors in establishing a “safety first” culture<br />
₪ Consistent leadership, everyone speaks same language<br />
₪ Genuine interest in peoples opinions, engagement<br />
₪ Define clear expectations and behaviour<br />
₪ Genuine care for people → accountability<br />
₪ Persistence, substantial change doesn’t come overnight<br />
₪ Repetitive messages<br />
₪ Active Senior Management Support
5 things must do to prepare<br />
• Legal gap analysis<br />
• Review leases and contracts<br />
• Implement interface coordination plans<br />
• Review consultation arrangements<br />
• Develop Safety Leadership and Due Diligence<br />
framework
Our international practice
Surface exploration drilling checklist<br />
Access to drill site Yes/No Actions<br />
Are the access roads/tracks to the drill site<br />
well formed: steepness and width?<br />
Are roads suitable for the vehicles and<br />
machines in use?<br />
Is access to the drill site on an exploration<br />
or mining licence clearly marked?<br />
Is edge protection in place where<br />
required?
Drill site Yes/No Actions<br />
Is the drill site safe from natural hazards (eg falling rocks, trees<br />
or branches,<br />
vertical openings, sheer drops)?<br />
Have overhead powerlines or underground services been<br />
identified?<br />
Does the drill site allow:<br />
• clear access<br />
• good visibility (no blind spots)<br />
• suitable working space<br />
• parking area<br />
• escape routes in case of emergency?<br />
Are deep ponds fenced or equipped to prevent people falling<br />
into them?<br />
Is the drill site free of litter and slips, trips and falls hazards?<br />
Is the drill site level and stable?
Drill rig work area set up Yes/No Actions<br />
Are the drill rig jacks on a suitable<br />
foundation?<br />
If jacks can be locked in position, are<br />
they secure?
Drill rig work area access Yes/No Actions<br />
Is the ground around the drill rig<br />
free from litter and slips, trips and<br />
falls hazards?<br />
Are walkways clear?<br />
Are ladders used according to the<br />
<strong>Australian</strong> Standard AS 1567 –<br />
1992?
Inspection and Maintenance Yes/No Actions<br />
Are there specification/service manuals on<br />
site covering the rig and additional<br />
equipment?<br />
Are there records relating to pre-start<br />
checks including third party inspections?<br />
Is there a system for recording/reporting<br />
mechanical faults?<br />
Are gauges, warnings, emergency stop<br />
buttons and controls on the driller’s<br />
console labelled (eg clean, legible and<br />
operational)?
Mast and Lifting Yes/No Actions<br />
Is the rig mast in good condition (eg no bends, twists, cracked welds<br />
or supports)?<br />
Are mast pivot points and locking pins secured and in good<br />
condition?<br />
Are all bolts tightened and in place (not loose or missing)?<br />
Are pull-down/pull-back chains or cables in good condition?<br />
Are hoisting cables, wire lines and slings free from knots, kinks,<br />
whiskers or<br />
broken wires?<br />
Is all lifting gear (eg chain, swivels, shackles, wire rope and slings)<br />
tagged or<br />
stamped with safe working load?<br />
Are winch drums and sheaves in good condition (free from signs of<br />
excessive<br />
wear, visible damage or cracks)?<br />
Do wire ropes conform to the original manufacturers specifications?<br />
Are hoist limits regularly checked and tested?
Drill rod handling Yes/No Actions<br />
Does the site layout reduce the need to handle, move or<br />
carry drill rods?<br />
Do drill rod handling procedures assist to prevent injury<br />
and include:<br />
• pre-drilling/collaring activity<br />
• production<br />
• pack up<br />
• jammed drill rods?<br />
Is there a drill rod handling carousel and procedure for<br />
loading the carousel?<br />
Are drill rod break-out tools and equipment in good<br />
condition?<br />
Have drill rod break-out tools been checked for wear?<br />
Are the drill rods stored securely?
Equipment Pressure Yes/No Actions<br />
If pressure relief valves are fitted, is there a testing<br />
procedure?<br />
Are hydraulic hoses inspected for leaks, cuts and<br />
torn outer casing?<br />
Is any double braid wire showing?<br />
Are all high pressure hoses in good condition and<br />
free from sharp edges?<br />
Are high pressure hoses equipped with whip<br />
checks or flogger chains?<br />
Are manifolds, exhaust pipes, turbo-chargers and<br />
mufflers in good condition and adequately guarded<br />
or heat shielded?
Electrical Yes/No Actions<br />
Is a residual-current device fitted to generators<br />
and regularly tested?<br />
Are electric cables and tools in good condition<br />
and fitted with current test tag?<br />
Are electrical cables safely positioned (not a<br />
tripping hazard) and protected<br />
from damage?<br />
Are the drill rig night lights and electrical fittings<br />
waterproof, clean and adequate?
Dangerous parts Yes/No Actions<br />
Is suitable guarding in place for hot surfaces<br />
and rotating, moving and<br />
electrical parts?<br />
Is the area free from potentially dangerous<br />
objects (eg falling objects, whipping ropes or<br />
gas bottles)?<br />
Does the drill rig have an automatic cut-off<br />
device to the operator’s position/seat?<br />
If there are any potentially explosive gases<br />
around, are potential ignition sources guarded<br />
and checked?
Case study – Pinch points<br />
• In WA, an offsider’s fingers were amputated by a sliding steel<br />
drawer in the cyclone of a reverse circulation drill rig.<br />
• A potential pinch point in the drawer was accessible during<br />
only some work procedures – when the usual sample splitter<br />
was removed and replaced by an adaptor cone.<br />
• In this instance, the offsider continued his habit of pulling a<br />
caught sample bag out of the cone fitted below the drawer – the<br />
changed work procedure meant this habit became a risk.<br />
• As a result of this incident, technical modifications and control<br />
measures were put into place.
Identified hazard<br />
Image 1:<br />
Sample bag attached to<br />
original cone – allowing<br />
access to pinch point
Engineering out the hazard<br />
Image 2:<br />
New cone – much longer than<br />
original cone, making pinch<br />
point less accessible<br />
(Mines Safety Significant Incident Report No. 146: Hazard posed by cyclone draw in RC drilling,<br />
Resources Safety, Department of Consumer and Employment Protection, Government of Western<br />
Australia, 2007)
FINANCIAL INSTITUTIONS ENERGY INFRASTRUCTURE AND COMMODITIES TRANSPORT TECHNOLOGY