Focus: Environment and Planning – June 2003
Underground fuel storage tanks guidelines -
Allens Arthur Robinson - Australian Law Firm
Ian Hodgetts
Partner, Brisbane
Ph: +61 7 3334 3528
Ian.Hodgetts@aar.com.au
In brief: The Environment Protection Authority has released its guidelines on underground petroleum storage systems. Partner Chris Schulz and Lawyer Naomi Lindsay examine the implications for all Victorian owners and operators.
The Environment Protection Authority (EPA) released the underground petroleum storage system guidelines following the findings of an audit of environmental risk management at retail fuel outlets across Victoria.
The audit findings
The EPA conducted an audit from May to August 2001 of 22 retail fuel outlets representing a broad range of operators throughout metropolitan and rural Victoria. The main purpose of the audit was to assess standards of underground petroleum storage systems (UPSS), and management of environmental risks by service station operators. The main findings of the audit were:
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Old steel petrol storage tanks without corrosion protection are posing a significant
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environmental concern. Of the retail fuel outlets audited, one-third used these old tanks.
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Rural sites had a lower standard of environmental risk management.
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There is generally inappropriate clean-up of waste after spills.
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Inventory control is often the sole means of leak detection and there are many different
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methods of inventory control, of varying accuracy, being used.
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There is a high risk to surface water.
EPA chairman Mick Bourke expressed alarm at the findings and has called on all owners and operators to address the issues raised by the audit. He has warned that the EPA will take enforcement action if owners and operators of retail fuel outlets cause or allow breaches of the Environment Protection Act 1970 because of failure to address the issues raised by the audit. Mr Bourke warned that the EPA will also take enforcement action if owners and operators fail to implement the guidelines.
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The guidelines
The guidelines provide that, in order to comply with statutory duties under the Environment Protection Act 1970 and Dangerous Goods (Storage and Handling) Regulations 2000, all UPSS owners/operators are expected to either implement the measures set out in the document, or be able to demonstrate that any alternative approach achieves an equivalent or higher level of performance for the protection of people, property and the environment. The guidelines set out minimum requirements for UPSS in relation to:
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UPSS management systems;
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leak prevention, including the design and installation of new tanks and the upgrade of existing tanks;
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leak detection for new and existing tanks;
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leak or spill response; and
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the removal and/or decommissioning of UPSS.
The guidelines include references to the Code of Practice (CP4), published by the Australian Institute of Petroleum, titled The Design, Installation and Operation of Underground Petroleum Storage Systems. Other documents are also referred to, including Australian Standards. The EPA has emphasised that compliance with CP4 does not necessarily ensure compliance with the guidelines, as there are some key differences between the requirements set out in each document.
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Who do they apply to?
The guidelines have far-reaching application, as they apply to all premises where fuel has been, is being, or is proposed to be, stored in underground storage systems. The guidelines are geared towards the retail and wholesale petroleum sector, and the EPA has stated that specific measures for management may differ for UPSS outside of this sector, depending on the use of the product and the risk involved.
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The key obligations
For existing UPSS: Owners and operators of existing UPSS are expected to implement and maintain a management system. Existing UPSS may retain existing equipment but implementation of a leak detection system will be necessary prior to February 2004. Groundwater monitoring bores need to be installed at 'sensitive sites' by February 2005. Where an existing UPSS fails, the system must either be repaired in accordance with the CP4 guideline or upgraded in accordance with the guidelines.
For new UPSS: New UPSS must be designed to mitigate risk and should be certified by an appropriately qualified and approved UPSS designer. An owner/operator must document the requirements associated with installation. New UPSS at sensitive sites must have groundwater monitoring bores installed prior to the operation of the UPSS.
For disused UPSS: Disused UPSS need to be removed wherever practicable, or, where not practicable, the disused UPSS should be emptied and decommissioned. Occupiers should maintain all records associated with the UPSS for a minimum of five years after removal of the UPSS. The owners/operators of all UPSS who discover or are made aware of a leak or spill must comply with their existing duties under the Environment Protection Act 1970 and Dangerous Goods Act 1995 (Vic).
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The likely ramifications
The guidelines have no statutory force. However, they will be an important factor that the EPA takes into account in determining whether or not a UPSS owner/operator has fulfilled its statutory duties. The EPA has indicated that it will take enforcement action if UPSS owners/operators cause or allow breaches of the Environment Protection Act 1970, and it is expected that penalties will be more severe if it can be shown that the guidelines or equivalent measures have not been followed.
The EPA has also indicated that it is considering the acceptability of a self-audit scheme for those UPSS owners/operators who are already undertaking the measures outlined in the guidelines.
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For further information, please contact:
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Chris Schulz
Ian Hodgetts
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Jim Parker
Nic Tolé
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