Managing Hazardous Materials During Oil and Gas Decommissioning: Safe and Responsible Strategies

With over $60 billion in offshore infrastructure due for retirement over the coming decades, Australia’s oil and gas industry is entering a new era of decommissioning. And here in Western Australia, we’re at the centre of it. But dismantling old assets is only part of the challenge. One of the most complex and critical elements is safely managing and disposing of hazardous materials.

At C.D. Dodd, we bring over 50 years of experience in oil and gas hazardous material disposal to ensure success in this crucial task. Our ISO-certified systems, purpose-built Pilbara facilities, and turnkey approach make us the partner of choice for companies seeking safe, efficient, and sustainable oil and gas decommissioning.

Mapping the Hazard Landscape

Common Risks on Offshore Assets

Oil and gas infrastructure, particularly aging offshore platforms and subsea networks, contains a wide range of hazardous substances, including:

  • Asbestos in insulation, gaskets and pipe coatings.
  • Hydrocarbon-contaminated soils and sediments from leaks or spills.
  • Heavy metals such as lead, mercury, and arsenic in equipment linings and paint.
  • Naturally Occurring Radioactive Materials (NORMs) that accumulate in production scale.
  • Corrosive chemicals, including acids, drilling fluids and industrial lubricants

Each substance requires specialised identification, containment, and disposal to meet strict regulatory and environmental expectations.

“Decommissioning of pipelines and topside equipment that have processed fluids containing even trace quantities of mercury may create significant hazards to personnel and the environment.”

These contamination risks are over and above physical hazards, such as unstable walkways, corroded structural elements and confined spaces where toxic fumes can accumulate. Hazard identification and management require a 360° approach and expert handling.

Consequences of Mishandling Hazardous Materials

Just as the risks are multifaceted, so are the results of mishandling hazardous materials in oil and gas decommissioning. Contamination exposes workers and nearby communities to acute and chronic health dangers ranging from respiratory illness to long-term cancer risk. Fragile marine ecosystems and groundwater reserves are threatened with lasting contamination. 

Beyond these human and environmental costs, regulatory non-compliance exposes operators to sanctions, costly litigation, and operational shutdowns. Collectively, these outcomes jeopardise a company’s licence and ability to operate.

Did you know: Between 2020 and 2025, NOPSEMA issued more than 10 ‘general directions’ to oil and gas operators relating to decommissioning activities. These included directions like plugging wells and removing property, as well as orders to assess underwater pipelines for Aboriginal heritage places and provide weekly progress reports. Many remain unresolved.  

Western Australia’s Regulatory Framework

Hazardous material handling during oil and gas decommissioning is tightly regulated under a mix of federal and state laws:

  • Work Health and Safety Act (WHS Act) and Safe Work Australia codes of practice.
  • NOPSEMA (National Offshore Petroleum Safety and Environmental Management Authority) requirements for offshore decommissioning.
  • Environmental Protection and Biodiversity Conservation Act (EPBC Act).
  • DMIRS (Department of Mines, Industry Regulation and Safety) guidelines for hazardous waste.
  • EPA WA standards for transport and disposal of classified wastes.

While this is only a snapshot, it’s clear that navigating these requirements takes expertise, planning, and detailed documentation. You can dive deeper into the regulations around oil and gas decommissioning in this guide.

Decommissioning projects must include:

  • Approved Environmental Impact Assessments (EIA).
  • Detailed waste management plans with hazard-specific strategies.
  • Tracking and record-keeping systems for audit compliance.

This is where C.D. Dodd’s decommissioning consulting services add significant value. We help operators understand their obligations and meet all compliance requirements during planning, decommissioning, and post-operational rehabilitation. As an independent decommissioning expert, we also track regulatory and best-practice changes to provide relevant advice.

Best Practices in Oil and Gas Hazardous Material Disposal

On-Site Containment and Management

Effective containment starts at the site. Key strategies include:

  • Segregating and labelling different waste types to prevent cross-contamination.
  • Secondary containment for all liquids and corrosive substances.
  • NORM shielding and monitoring following regulatory guidelines.
  • Strict decontamination protocols before any material leaves the site.

These practices reduce immediate environmental risks and improve safety outcomes for workers.

Transportation and Storage

Hazardous materials must be transported and stored under tightly controlled conditions. At C.D. Dodd, we

  • Use EPA-compliant, government-licensed vehicles to transfer waste safely.
  • Meet WorkSafe WA and Dangerous Goods Code (ADG) requirements.
  • Operate secure storage facilities at our Onslow and Karratha sites, which are strategically located to minimise transport distances and emissions.

By keeping material handling in-house and investing in industry-leading containment equipment, we reduce risk, improve compliance, and streamline logistics.

Disposal and Recycling

Where others see waste, we see an opportunity to recover value and reduce landfill burden. Our treatment methods include:

  • Thermal desorption for oil-contaminated soils.
  • Asbestos encapsulation and disposal in Class 4 landfills.
  • Heavy metal recovery from equipment and infrastructure.
  • Bioremediation and chemical treatment to clean up contaminated soils.

At our purpose-built Pilbara facilities, we also use innovative flowline and umbilical processing machinery adopted from mining decommissioning use cases to minimise manual handling and maximise safety. This cross-industry expertise has seen C.D. Dodd set a new benchmark in Australian decommissioning practices.

Innovations Driving Safer Oil and Gas Decommissioning

Exciting innovations are rolling out that aim to improve safety and efficiency in oil and gas hazardous material disposal:

Innovation in oil and gas decommissioning isn’t a buzzword. It’s a strategic imperative and a critical driver of safety, sustainability and cost control. 

Oil and Gas Decommissioning and the Circular Economy

Australia’s circularity rate – how much of our recovered resources are reused and recycled – increased to around 4% in 2024, but remains below the global average of 8%. 

With over 5.7 million tonnes of materials from oil and gas decommissioning entering the waste pipeline between now and 2060, investing in recycling and circular economy initiatives will have wide-ranging benefits:

  • Creating thousands of new jobs.
  • Reducing reliance on virgin materials.
  • Bolstering domestic manufacturing.
  • Driving innovations in recycling technology and techniques.
  • Supplying materials and products for Australia’s renewable energy transition.

Governments and the private sector are collaborating to invest over $1 billion in Australia’s recycling infrastructure. NOPSEMA is also on board, requiring that operators demonstrate consideration for waste pathways during oil and gas decommissioning. 

We still have work to do, but every step towards a stronger circular economy is a positive one.

C.D. Dodd’s Turnkey Advantage

Unlike providers who only handle part of the process, C.D. Dodd offers complete solutions for oil and gas hazardous material disposal.

Our Onslow and Karratha facilities are located close to major WA ports, reducing freight emissions and delays. We follow processes certified to ISO 45001 (Safety), ISO 14001 (Environment) and ISO 9001 (Quality) standards, giving clients peace of mind. And we have continually invested in our capabilities for over 50 years, leading to many industry-first innovations supported by an impeccable safety record.

Our systems are trusted by Tier 1 and Tier 2 miners and energy companies operating across Western Australia, working with clients from planning and compliance through to final disposal, recycling, and reporting.

C.D. Dodd is the Safe Choice in Oil and Gas Decommissioning

With our experience, certifications, and turnkey capabilities, we’re ready to help you deliver compliant, low-risk, and environmentally responsible outcomes.

Get in touch today to book a hazardous waste audit or to learn more about our oil and gas decommissioning solutions.

Let’s get started

Perth

Gate 1, 521 Dundas Road, Forrestfield WA 6058

Karratha

Lot 109 Bedrock Turn, Gap Ridge Estate, Karratha WA 6714

Port Hedland

10 Trig Street, Wedgefield WA 6721

Kalgoorlie

1 Coath Road, Kalgoorlie West WA 6430

Onslow

Pilbara Regional Waste Management Facility, Onslow Road, Thalanyji