Underground Petroleum Storage Systems
The Protection of the Environment Operations (Underground Petroleum Storage Systems) Regulation 2008, requires owners and operators to regularly check for leaks in the underground fuel tanks and pipes used to store and handle petroleum products. They also need to meet minimum standards in their day to day environmental management of these storage systems.
The Regulation was gazetted on the 28 March, 2008, and commenced on the 1 June, 2008. From the release of the regulations, Department of Environmental Climate Change (DECC) will be the responsible body for the implementation until 2012, when it is proposed the control will then be handed back to Local Government.
The regulations aim to:
-
Introduce preventative measures to reduce harm to the environment and human health.
-
Save money and minimise time consuming remediation by preventing leaks or dealing with them early.
-
Ensure industry best practise is followed.
-
Ensure appropriate validation and decommissioning of systems and sites.
The person responsible for the Underground Petroleum Storage Systems (UPSS) (usually the owner/operator) is required to have in place:
-
A system for detecting and monitoring leaks.
-
Groundwater monitoring wells at sensitive locations and a program to test them.
-
An Environmental Protection Plan for the facility.
-
Systems in place for record keeping, reporting of leaks and notifying the local council when a UPSS is decommissioned.
The regulation applies to all underground tanks with no exceptions.
As at 2012, surveillance and monitoring of these regulations will be handed over to Local Government. Concerns have been raised that Local Government will be the body responsible for ensuring the implementation of the regulations. It has been indicated by DECC staff that further amendments are likely to be made which may allow additional time for the operators to comply. Current staffing resource levels at DECC will prohibit them from being able to visit each site individually and ensure that their requirements have been implemented.
WorkCover has provided DECC with approximately 10,000 sites which are presently licensed for underground tanks.
There was concern regarding the lack of awareness and understanding of this issue when the regulations first commenced. Hence, Council arranged a seminar which was conducted on the 4 June, 2009, by a DECC Officer to explain the requirements of these regulations to all local service station owners. A number of the smaller service stations have expressed major concerns with the costs involved in complying with these regulations. Some have indicated that these costs will force them to discontinue being able to supply fuel to customers.
The regulations require the following:
From 1 June, 2008, loss detection and investigation procedures are to be in place. This may involve system checks, such as reviewing inventory records and checking measuring equipment and records. The person responsible for the UPSS must ensure any discrepancy is investigated to determine its cause as soon as possible after it becomes apparent.
From 1 June, 2009, the owner/operator is required to produce an Environmental Protection Plan which includes, a loss monitoring procedure, incident management procedure, maintenance program, current as-built drawings, plan of the storage site, list of industry standards that were complied with for design, installation and operation, copies of all specifications adopted in the design, installation and operations, and contact details for the UPSS.
The definition of the person responsible for complying with the requirements is "the person who has management and control of the storage system." The regulations require that if this plan has not been developed and provided by June, 2009 the UPSS must not be used.
It has been indicated that should a consultant be employed to provide these details the cost would be approximately $4,500. DECC Officers have indicated that extensions of time can be granted for owners/operators who do not have their plan in place by the June, 2009. Applications would be considered on merit.
A number of the smaller operators have indicated that a large amount of the information required would not be available and that they have no idea from where it would be obtained. For example, the location of the underground tanks.
By June, 2011, there is a requirement that groundwater monitoring wells should be installed, a minimum of three (3) per site. The cost to install this equipment has been estimated at approximately $40,000 to $50,000 per site. This equipment is to monitor any groundwater contamination on the site which may be caused by underground tanks leaking.
Exemptions exist under the Regulations which allows DECC to exempt a person responsible for a UPSS from complying with one (1) or more of its requirements. There are four (4) classes of exemptions:
-
Class 1 - exempted from most requirements of the Regulation for certain types of UPSS.
-
Class 2 - exempted from requirements to install and test groundwater monitoring wells where a UPSS is located outside an 'environmentally sensitive zone'.
-
Class 3 - exempted from requirements to install and test groundwater monitoring wells where a UPSS is located within an environmentally sensitive zone and measurers are in place to prevent environmental harm in the event of a leak or spill.
-
Class 4 - exempted from specific requirements of the Regulation where it can be shown that it is not possible to comply with these provisions and alternate measurers are in place to provide an equivalent environmental benefit.
Where it can be demonstrated that, although the site is located within an environmentally sensitive zone an exemption under Class 3 from the installing and testing groundwater wells can be granted if the owner can prove the following:
-
Records from an industry recognised loss detection system demonstrates that there has been no petroleum leak from the UPSS over the previous 18 months (or the lifetime of the system, where it is less than 18 months); and either.
-
There is no existing significant soil or groundwater contamination on the UPSS site, as determined by an appropriate level of assessment, and
-
A comprehensive sensitivity assessment of the site has been undertaken by a suitably qualified and experienced person in accordance with the appropriate DECC guidelines.
The definition under the regulation of an environmentally sensitive zone is, " the buffer around a sensitive feature, such as a groundwater bore or surface water body, which DECC estimates is necessary to provide an acceptable level of protection in the event of a leak or spill from a nearby UPSS".
DECC has further defined environmentally sensitive areas as:
-
The regions immediately surrounding sensitive receptors (e.g. Rivers, drinking water bores).
-
Regions on or near vulnerable groundwater (e.g. due to geology, links to catchment areas).
-
Regions or recognised environmental significance (e.g. national parks).
Delineating environmentally sensitive zones:-
Conservative buffers were defined around bores and surface water features, including:
- A 500 metre buffer around lakes and reservoirs.
- A 500 metre buffer along a coastline.
- A 500 metre buffer around all named and major drainage areas.
- A 5000 metre buffer around licensed bores used for public drinking water.
- A 1000 metre buffer around licensed domestic bores.
- A 500 metre buffer around licensed agricultural bores.
Protected areas, including all parks, reserves, estate and other lands that are administered for conservation purposes by DECC, were considered to be sensitive zones.
A large area of the Inverell Shire region is located within sensitive areas. The DECC website has available an environmentally sensitive map showing the location of the areas in question. A copy of this map is provided for your information. (Refer to Appendix 2, D10).
The concept of these regulations is to detect leaking systems prior to a major contamination occurring and be must be applauded but the resulting consequences may cause untold closures of smaller operators.
A number of these operators have made representations to the local member, the Honorable Richard Torbay. Mr Torbay has written to the Minister of the Department of Environment & Climate Change asking if any funding would be available to help small operators implement the required programs. It is understood that, to date, no reply has been received.
It has been advised by NSW DECC that similar regulations have been introduced in Victoria and it is proposed that other states are working towards implementation. This being the case, the problem for the small operators may be nation wide. It is suggested that the local Federal Member also be advised of the hardships which are and will be encountered within small communities round the country.
Should an owner of a business decide to not sell fuel the responsibility in having to comply with the UPSS Regulations is not fully abrogated. Under WorkCover requirements if an underground fuel tank is abandoned further regulations exist where the tanks are required to be decommissioned within a two (2) year period. Further in accordance with Clause 15 of the UPSS Regulations the owner is then required to validate the site ensuring that no contamination exists which could be harmful to the environment. To undertake this work is also an expensive exercise.
At this stage there appears to be no other options available to the owner/operators other than comply with the regulations.
The continued operation of fuel suppliers, particularly in smaller settlements of the Shire is consistent with Council's Strategic destination of ensuring the community is supported by sustainable services and infrastructure.
© 2009 Inverell Shire Council
