Bitumen Project-review of Environmental Factors

7/27/2019 Bitumen Project-review of Environmental Factors

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Review of Environmental Factors Vopak Terminals Sydney Pty Ltd

Bitumen Facility49 Friendship Road

Port Botany November 2011


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Review of Environmental FactorsBitumen Facility

49 Friendship RoadPort Botany

PlanCom Consulting Pty Ltdwww.plancom.com.au

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REF Certification

This REF provides a true and fair review of the proposal in relation to its potentialimpacts on the environment. It addresses to the fullest extent possible all mattersaffecting or likely to affect the environment as a result of the proposal.

Julian Ardas

Director

PlanCom Consulting Pty Ltd

Date: 14 November 2011


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Executive Summary

This Review of Environmental Factors (REF) has been prepared by PlanCom Consulting Pty Ltd(PlanCom) on behalf of Vopak Terminals Sydney Pty Ltd (Vopak) in response to Part 5 of theEnvironmental Planning and Assessment Act 1979 (EP&A Act) to consider the environmentalimpact associated with the proposal to develop a bitumen import and distribution facility(Bitumen Facility) at 49 Friendship Road Port Botany.

The purpose of this REF is to:

Describe the existing site and its surrounding context; Present the project need, its justification and alternatives considered; Identify and evaluate all matters affecting or likely to affect the environment by reason of

the activity; Consider the relevant statutory framework as required under Part 5 of the EP&A Act and

other relevant legislation;

Consider and respond to matters raised by Sydney Ports Corporation (SPC) and otherstatutory agencies;

Assess the environmental impacts of the Bitumen Facility; and Develop environmental management and mitigation measures to minimise potential

environmental impacts identified for the proposed activity.

The proposed site (Lot 14 and Part Lot 12 in Deposited Plan 1126332) is located at 49

Friendship Road, Port Botany. The proposed Bitumen Facility would occupy approximately onehectare of the approximately four hectare site.

Vopak holds a 20-year lease with an extension option over the site from the Sydney PortsCorporation.

The capital costs of the Bitumen Facility are of the order of $25 million.

The site is partially a greenfield site (Lot 14) and Lot 12 (part) has existing infrastructure such asutilities, entranceways, perimeter roadways, security, site lighting, fire protection and buildings. Allof these facilities are to be integrated into the project design.

The projected annual throughput of the Bitumen Facility is 160,000 tonnes of bitumen feedstockwith potential for future growth.

The Bitumen Facility would comprise the following:

Storage and heating facilities for bitumen products in 3 x 10 000 m 3 tanks; Ship receipt facilities, including electrically traced pipeline to Bulk Liquids Berth No.1

(BLB1); and

Gantry facilities for loading and in-line blending bitumen road tankers (two road tankerloading bays initially with expansion to four in the future).

The EP&A Act establishes the system of environmental planning and assessment in NSW. Thisproposal is subject to the environmental impact assessment and planning approval requirements


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Page iii of 72

of Part 5 of the EP&A Act. Part 5 of the EP&A Act specifies the environmental impact assessmentrequirements for activities which do not require development consent under Part 4 of the Act.

In accordance with Section 111 of the EP&A Act, SPC, as the determining authority, must examineand take into account to the fullest extent possible all matters affecting or likely to affect theenvironment by reason of the proposal.

Clause 228 of the Environmental Planning and Assessment Regulation 2000 (EP&A Regulation)defines the factors which must be considered when determining if an activity assessed under Part5 of the EP&A Act has a significant impact on the environment.

Furthermore, the REF assessed the following factors:

Air Quality; Noise; Hazard and risk; Hydrology and soils; Groundwater; Waste; and Traffic and transport.

Other environmental factors considered included ecology, visual amenity, heritage impacts, socio-economic impacts and cumulative impacts.

Consideration was given to SPCs Port Botany Development Code 2009 and Green PortsGuidelines.The REF found the Bitumen Facility to not have a potentially significant impact on theenvironment. Appropriate safeguards and mitigation measures were developed to minimisepotential impacts during construction and operation.


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Page iv of 72

Table of Contents

REF Certification

Executive Summary

Executive Summary ........................................................................................................................... ii

Acronyms and Abbreviations .......................................................................................................... viii

1. Introduction ....................................................................................................................... 1

1.1. REF Purpose and Structure..................................................................................... 1

1.2. Location of the Proposal ......................................................................................... 2

1.3. The Proponent ......................................................................................................... 3

1.3.1. Vopak Terminals Sydney Pty Ltd ............................................................. 3

1.4. The Proposal ............................................................................................................ 5 2. Existing Site Location and Setting ..................................................................................... 7

2.1. Regional Setting....................................................................................................... 7

2.2. Local Setting ............................................................................................................ 8

2.3. The Site .................................................................................................................... 9

2.3.1. Context and Setting .................................................................................. 9

2.3.2. Land use ................................................................................................. 10

2.3.3. Socio-economics .................................................................................... 10

3. Statutory Framework and Consultation ........................................................................... 12

3.1. Environmental Planning and Assessment Act 1979 ........................................... 12

3.1.1. Section 111 ............................................................................................ 12

3.1.2. Section 5A ............................................................................................... 14

3.2. State Environmental Planning Policies ................................................................ 16

3.2.1. State Environmental Planning Policy (State and RegionalDevelopment) 2011 ............................................................................... 16

3.2.2. State Environmental Planning Policy (Major Development) 2005 ..... 17

3.2.3. State Environmental Planning Policy (Infrastructure) 2007 ............... 18

3.2.4. State Environmental Planning Policy 33 Hazardous and OffensiveDevelopment .......................................................................................... 18

3.2.5. State Environmental Planning Policy 55 Remediation of Land ....... 18

3.3. Commonwealth EPBC Act ..................................................................................... 19

3.4. Other Legislation .................................................................................................... 20

3.4.1. Protection of the Environment Operations Act 1997........................... 20

3.4.2. Airports Act 1996 ................................................................................... 20

3.4.3. Other ....................................................................................................... 21


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3.5. Sydney Ports Guidelines and Policies .................................................................. 21

3.5.1. Port Botany Development Code 2009 .................................................. 21

3.5.2. Green Port Guidelines ............................................................................ 21

3.5.3. Traffic Management Plan Guidelines 2007 ......................................... 21

3.6. Statutory Consultation ........................................................................................... 21

4. Project Need, Justification and Alternatives .................................................................... 25

5. Description of the Project ................................................................................................ 26

5.1. Introduction ............................................................................................................ 26

5.2. Construction ........................................................................................................... 26

5.3. Operation ............................................................................................................... 27

5.3.1. Process Flow ........................................................................................... 27

5.3.2. Proposed Tanks ...................................................................................... 28 5.3.3. Bunded Areas ......................................................................................... 29

5.3.4. Vapour Combustor ................................................................................. 30

5.3.5. Bitumen Product Receipt ....................................................................... 30

5.3.6. Road Tanker Loading Gantry ................................................................. 30

5.3.7. Heating System ...................................................................................... 31

5.3.8. Thermal Insulation and Cladding .......................................................... 32

5.3.9. Pipework ................................................................................................. 32

5.3.10. Product Quality ....................................................................................... 32

5.3.11. Buildings ................................................................................................. 32

5.3.12. Power and Lighting ................................................................................. 32

5.3.13. Fire Protection ........................................................................................ 33

6. Environmental Assessment ............................................................................................. 34

6.1. Clause 228 Considerations .................................................................................. 34

6.2. Air Quality ............................................................................................................... 36

6.2.1. Existing Environment ............................................................................. 37

6.2.2. Potential Impacts ................................................................................... 39

6.2.3. Management and Monitoring Measures .............................................. 43

6.3. Noise ...................................................................................................................... 44

6.3.1.

Existing Environment ............................................................................. 44



6.4. Hazards and Risk ................................................................................................... 47





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6.5. Hydrology and Soils ............................................................................................... 49




6.6. Groundwater .......................................................................................................... 51




6.7. Waste ..................................................................................................................... 53



6.7.3. Management and Monitoring Measures .............................................. 55 6.8. Traffic and Transport ............................................................................................. 55




6.9. Other Environmental Issues .................................................................................. 58

6.9.1. Ecology .................................................................................................... 58

6.9.2. Visual amenity ........................................................................................ 59

6.9.3. Heritage .................................................................................................. 62

6.9.4. Socioeconomic ....................................................................................... 63

6.9.5. Cumulative Impacts ............................................................................... 64

7. Environmental Management ........................................................................................... 66

7.1. Safeguards and mitigation measures .................................................................. 66

8. Conclusion ....................................................................................................................... 71

9. References ....................................................................................................................... 72

Appendices

Appendix A Port Botany Development Code 2009

Appendix B Green Ports Guidelines

Appendix C Air Quality Assessment

Appendix D Noise Assessment

Appendix E Preliminary Hazard Analysis


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Page vii of 72

List of Tables

Table 1.1 Sections in the REF

Table 2.1 Economic value of bulk liquids and gas at SPC Ports

Table 3.1 SPC Issues and REF Responses

Table 6.1 Climatic information for Sydney Airport, 2011

Table 6.2 Dispersion Modelling Results Vapour Combustor Unit

Table 6.3 Dispersion Modelling Results Thermal System (inclusive of Thermal CombustorImpacts)

Table 6.4 Dispersion Modelling Results Tank Venting

Table 7.1 Environmental safeguards

List of Figures

Figure 1.1 Location of Proposed Development (49 Friendship Road, Port Botany Site A)

Figure 1.2 Vopak Terminals Sydney Pty Ltd Site A and Site B

Figure 1.3 Location of Vopak Site A Terminal 49 Friendship Road, Port Botany

Figure 1.4 Location of Vopak Site B Terminal 20 Friendship Road, Port Botany

Figure 2.1 Regional setting

Figure 2.2 Local setting

Figure 2.3 Site Location - Port Botany Area for Proposed Bitumen Plant

Figure 5.1 Site Layout

Figure 6.2 View of Site A from Botany Cemetery looking west

Figure 6.3 View of Site A from Prince of Wales Road looking north

Figure 6.4 Cross section of the revetment wall

Figure 6.5 Aerial photo of the revetment wall


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Page viii of 64

Acronyms and Abbreviations

BLB Bulk Liquids Berth

CASA Civil Aviation Safety Authority

CO Carbon Monoxide

dB(A) Decibels (A-weighted)

DP Deposited Plan

DPI Department of Planning and Infrastructure

DSEWPC Commonwealth Department of Sustainability, Environment, Water, Population

and CommunitiesENCM Environmental Noise Control Manual

EP&A Act Environmental Planning and Assessment Act

EPBC Act Environment Protection Biodiversity and Conservation Act

ESD Ecologically Sustainable Development

ha Hectares

INP Industrial Noise Policy

JORTL Jointly Operated Road Tanker Loading Facility (for LPG)

km Kilometre

kW Kilowatts

L A number Level of noise at maximum sound power levels for only brief stages during ameasured period

L A90 Level of noise exceeded for 90% of the sample time; it represents thebackground level of noise experienced during the measurement period.

LPG Liquefied Petroleum Gas

M Metres

m Cubic metres

m 3/hr Cubic metres per hour

mg/L Milligram per litre

mg/m 3 Milligram per cubic metre

ML Megalitre (1,000,000 litres)

mm Millimetres


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NO x Oxides of Nitrogen

OEH NSW Office of Environment and Heritage

PHA Preliminary Hazard Analysis

POEO Act Protection of the Environment Operations Act

RL Reduced Level

RNP Road Noise Policy

RTA Roads and Traffic Authority

SEPP State Environmental Planning Policy

Site A Relates to Vopak Site A Terminal at 49 Friendship Road Port Botany for storage and distribution of petroleum and chemical bulk liquids

Site B Relates to Vopak Site B Terminal at 20 Friendship Road Port Botany for storage and distribution of petroleum bulk liquids

SPC Sydney Ports Corporation

The Code Generic term to mean the appropriate applicable Australian Standard / Act /Regulation or Recognised Code of Practice as the basis for design andequipment requirements.

TSC Act Threatened Species Conservation Act

g Micrograms

VOC Volatile Organic Compounds

WWTP Waste Water Treatment Plant


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Page 1 of 72

1. IntroductionThis Review of Environmental Factors (REF) has been prepared by PlanCom Consulting Pty Ltd (PlanCom) on behalf of Vopak Terminals Sydney Pty Ltd (Vopak) in response toPart 5 of the Environmental Planning and Assessment Act 1979 (EP&A Act) to considerthe environmental impact associated with the proposal to develop a bitumen import anddistribution facility (Bitumen Facility) at 49 Friendship Road, Port Botany.

1.1. REF Purpose and Structure

The purpose of this REF is to:

Describe the existing site and its surrounding context;

Present the project need, its justification and alternatives considered; Identify and evaluate all matters affecting or likely to affect the environment byreason of the activity;

Consider the relevant statutory framework as required under Part 5 of the EP&AAct and other relevant legislation;

Consider and respond to matters raised by Sydney Ports Corporation (SPC) andother statutory agencies;

Assess the environmental impacts of the Bitumen Facility; and Develop environmental management and mitigation measures to minimise

potential environmental impacts identified for the proposed activity.These points are addressed in the following key sections of the REF which are listedbelow in Table 1.1.

Table 1.1 Sections in the REF

Section Issues Addressed

Section 1 Introduction

Section 2 Existing Site Location and Setting

Section 3 Statutory Framework and Consultation

Section 4 Project Need, Justification and Alternatives

Section 5 Description of the Project

Section 6 Environmental Assessment

Section 7 Environmental Management

Section 8 Conclusion


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Section Issues Addressed

Section 9 References

Appendix A Port Botany Development Code (2009)

Appendix B Green Ports Guidelines

Appendix C Air Quality Assessment PAE Holmes (2011)

Appendix D Noise Assessment Atkins Acoustics (2011)

Appendix E Preliminary Hazard Analysis Pinnacle Risk Management (2011)

1.2. Location of the Proposal

The proposed site is located at 49 Friendship Road (Gate B33) Port Botanyapproximately 13 km south of the Sydney CBD. The approximately four hectare site isdescribed as Lot 14 and Part Lot 12 in Deposited Plan 1126332. Vopak propose to useapproximately 1.3 hectares of the 4 hectare site for the Bitumen Facility.

Sydney Ports Corporation is the landowner of the proposed site shown in Figure 1.1.

Figure 1.1 Location of Proposed Development (49 Friendship Road, Port Botany Site A)

Note: A depicts location of site. Source: Google Maps 2011


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1.3. The Proponent

1.3.1. Vopak Terminals Sydney Pty Ltd

Vopak Terminals Sydney Pty Ltd is a company that provides bulk liquid services (storage,transport, bulk handling, packaging and distribution) and access to distribution facilitiesto independent operators and large corporations. These bulk liquids include fuel-basedproducts used for energy and transport functions throughout NSW. Vopak operates twobulk liquid storage terminals in Port Botany located at:

Site A 49 Friendship Road, Port Botany; and Site B 20 Friendship Road, Port Botany.

Both site locations are shown in Figure 1.2.

Figure 1.2 Vopak Terminals Sydney Pty Ltd Site A and Site B

Source: Google Maps 2011The first facility, known as the Site A Terminal, is located at 49 Friendship Road. The SiteA Terminal was established in 1979 to serve an identified need for an independent bulkliquid chemical distribution facility in the greater Sydney Region. The facility caters forthe distribution of bulk liquid chemicals to chemical manufacturers, oil companies, andchemical traders who sell into the local markets (shown in Figure 1.3).


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Figure 1.3 Location of Vopak Site A Terminal 49 Friendship Road, Port Botany

Source: Google Maps 2011

The second facility, known as the Site B Terminal, is located at 20 Friendship Road andhas been storing petroleum products since 1996 (shown in Figure 1.4).


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Figure 1.4 Location of Vopak Site B Terminal 20 Friendship Road, Port Botany


The current facilities are also integrated into a wider network of petroleum and liquidfuels transport infrastructure with other Vopak facilities (Vopak Sites A and B), oilindustry corporations including Caltex Banksmeadow and Caltex Kurnell, Terminals Pty

Ltd, and the SPC.Consequently, Vopak s infrastructure is a critical part of an oil industry network thatensures other bulk liquid and cargo distribution facilities in the immediate area operatein an efficient and environmentally safe manner.

Vopak owns and operates an international network of 80 terminals with a storagecapacity of more than 25.6 million cubic metres in 31 countries.

Vopak Terminals Australia Pty Ltd is a component of the international network providing logistic services to the chemical and petroleum industries in the form of bulk liquidstorage facilities leased to customers at strategic Australian port locations at PortBotany and Darwin East Arm Port (Northern Territory).

Vopak employs a worldwide workforce of approximately 5,700 employees with 75 being employed by Vopak Australia . Vopaks shares are listed on the Amsterdam Euronextstock exchange and in 2010 the companys annual turnover was 1.1 billion Euro s.

1.4. The Proposal

The proposed development of the Bitumen Facility would include the construction of thefollowing:

Three tanks with a capacity of 10,000 m each. Each tank would be 22 metres indiameter and have an overall height of 27 metres. The tanks would be used tostore the three different grades of bitumen. The tanks would be fixed roof carbon


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steel and fabricated to American Petroleum Institute, API 650 and API 2000standards and specific customer requirements.

One smaller tank for potentially contaminated stormwater. The tanks would befixed roof carbon steel and fabricated to Australian Petroleum Institute, API 650and API 2000 standards and customer requirements.

Ship receipt facilities, including a dedicated electrically traced pipeline withinsulation/cladding to Bulk Liquids Berth No.1 (BLB1) for bitumen unloading fromBLB1 with a minimum unloading capacity rate of 400 tonnes per hour.

Gantry facilities for loading and in-line blending bitumen road tankers (two roadtanker loading bays initially with expansion to four in the future). Each loading baywould be fitted with one loading arm, and will be capable of loading at a rate of 60 tonnes per hour.

Area to accommodate the ingress, egress and turning requirements of a 26metre B-Double road tanker, without reversing allowing each barrel of the B-Double road tanker to load separately.

A tank bund with a capacity of 11,048 m 3 meeting design capacity requirements. Lighting for security, ship unloading, truck loading, sampling operations and

closed circuit television, therefore involving areas such as bulk storage tankincluding tank top area; site perimeter; heating shed; heat exchangers; bitumenpumps; pathways to the above facilities; and loading gantry.

A road tanker holding area and a paperwork collection station outside the gantry.

New minor plant buildings for electrical switchrooms, electrical transformers, hotoil furnaces and a vapour combustor unit.

Modification of the existing Site A Administration Building for driver amenitiesincluding tea/coffee making facilities and control/supervision purposes.

Modification of the existing car park as employment numbers are expected todecrease.

Installation of a Vapour Combustor for treating storage tank vapours during shipunloading operations and truck venting when being filled.

Installation of a thermal oil system and furnace to fulfil the heating requirementswith all electric tracing to be in accordance with IEC 62086 Electrical ResistanceTrace.

Installation of thermal insulation to all tanks and pipework systems to minimiseenergy usage and to provide personnel safety (from hot surface contact burns).

Once construction is complete, the Bitumen Facility will receive bitumen products(160,000 tonnes per year) via Ship from BLB1. Bitumen products would be imported onvessels of up to 15,000 tonne tanker size and the typical parcel size would be 5,000 -10,000 tonnes per shipment. Frequency would be 8-16 shipments per annum(depending on ship size).


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2. Existing Site Location and SettingThis section outlines the existing regional and local setting of the Port Botany site withparticular reference to neighbouring businesses, access, landuse and socio-economiccharacteristics of the area.

2.1. Regional Setting

The proposed site is located at Port Botany, approximately 13 km south of the SydneyCBD. Port Botany is heavily industrialised due to port operations including theBrotherson Dock, a container dock facility where Patrick Stevedores and Port BotanyContainer Park, amongst others, are located.

The suburbs to the northeast and east of Port Botany include Banksmeadow, Port

Botany, Matraville, Phillip Bay, Little Bay and Chifley. The suburb of La Perouse is locatedto the southeast (refer to Figure 2.1).

The nearest residential areas to the proposal are approximately one kilometre to thesoutheast at Phillip Bay and La Perouse. The proposal is therefore substantially withinan industrial environment and is well removed from residential areas.

Figure 2.1 Regional setting


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2.2. Local Setting

The Vopak Site A Terminal is located on relatively flat, stable land with few undisturbednatural features.

There are two distinct types of cargo handling and storage trade that have established apresence in Port Botany. These two trades include import and export of container andbulk products (liquids and gas).

Industries located adjacent to Vopak Site A include:

Origin Energy LPG Ltd (bulk / LPG gas); Qenos Hydrocarbon Terminal; DP World Sydney Ltd (container trade); Patrick Port Services (container trade); and Terminals Pty Ltd (bulk liquids).

The built form of the adjacent suburbs of Banksmeadow and Port Botany ischaracterised by a mix of port related and industrial land uses. Matraville and Phillip Bayare more diverse in built form and include industrial, commercial, residential and openspaces dedicated to recreation (shown in Figure 2.2).

Figure 2. 2 Local setting



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2.3. The Site

The Site A Terminal is located at 49 Friendship Road, Port Botany (shown in Figure 2.3)comprises:

Lot 12 DP 1126332 (2.477 hectares); Lot 13 DP 1126332 (0.7580 hectares); and Lot 14 DP 1126332 (0.7792 hectares).

The proposed site (Lot 14 and Part Lot 12 in Deposited Plan 1126332) is located at 49Friendship Road, Port Botany.

The proposed Bitumen Facility would occupy approximately 1.3 hectares of site.

Vopak holds a 20-year lease with an extension option over the site from the SPC.

Figure 2.3 Site Location - Port Botany Area for Proposed Bitumen Plant

Source: Vopak Australia

2.3.1. Context and Setting

For the purpose of this report, the site refers to the Vopak Site A Terminal together withthe SPC pipeline corridor from Vopak Site A to the SPC BLB No. 1.


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Friendship Road bounds the Site A Terminal to the north; an SPC Pipeline corridor (18mwide) is located to the south. A Patrick facility is located on the southern side of the SPCPipeline corridor and Simblist Road is located south of the Patrick Facility.

2.3.2. Land use

Lots 12 and 13 of the site have been substantially modified since 1979 for the purposeof bulk liquids storage and handling. This includes approval for product storage capacityof 36 000m 3 , which comprises 60 tanks of differing capacities. Lot 14 originally housedthe Jointly Operated Road Tanker Loading (JORTL) LPG Storage Facility, which was builtin 1983 and made redundant and fully removed in 2002. Lot 5 is not currentlyoccupied.

The SPC pipeline corridor adjacent to Lot 14 is a designated service corridor andincludes pipe work for the purpose of bulk liquid transfers from the BLB No. 1 to variousfacilities in Friendship Road.

2.3.3. Socio-economics

The Port Botany area provides a dedicated area for bulk liquids storage and handling and is of important strategic significance to the Sydney and NSW economy. Theindustrial and commercial enterprises in the Port Botany area provide significantemployment opportunities for the local and regional population, rate levy generation forlocal authorities and subsequent contributions to local social infrastructure.

Following on from the 2005 Metropolitan Strategy, the Metropolitan Plan for Sydney2036 was launched on 16 December 2010 by NSW Government Planning to shapethe future growth of Australias major global city. Incorporating the fully funded $50.2billion Metropolitan Transport Plan, its key objective over the next 25 years, is to makeSydney a more connected, sustainable city for its growing population.

The Metropolitan Plan for Sydney 2036 is divided in to a number of subregions,identifying employment, housing and lifestyle forecasts for each region across Sydney.As Port Botany is located in Randwick LGA, it forms part of the East Subregion and isexpected to continue as an international trade gateway with increased rail freight andan improved road link from the M5 to Port Botany and the airport to enhance transportconnections. The region is also expected to increase its employment numbers from12,000 in 2006 to 16,000 by 2036 with 23,000 new homes between 2006 and 2036.

In 2003, the SPC commissioned a report on the economic value of Sydneys Ports. Thevalue of bulk liquids and gas generated from SPC Ports (e.g. operations in Port Botanyand Sydney Harbour) for the financial year 2001/02, are summarised in Table 2.1.Table 2.1 provides an econometric indication of the value of bulk liquids and gas tradewithin SPC ports. Although this sector has a relatively low labour loading and unloading operation, the high processing and land transport activity means that the sectorprovides a total economic impact of $567 million pa, generates over 3,800 full-timeequivalent jobs, $458 million pa in household income and a value added estimate of $305 million.


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Table 2.1 Economic value of bulk liquids and gas at SPC Ports

Indicator Direct effect Flow-on effect Total effect

Output 1 ($A million) 265 302 567

Value Added 2 ($A million) 139 166 305

Employment (full timeequivalent jobs)

1,602 2,267 3,869

Household Income 3 ($Amillion)

- - 458.3

Table Source: SPC: 2003: pp7

1 Output is defined as gross business revenue from port related firms2 Value added is defined as the net contribution of port related firms to Gross State Product3 Resulting from combined direct and f low-on employment


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3. Statutory Framework and ConsultationThis section provides a summary of the statutory planning context of the proposalincluding a consideration of the relevant provisions of Part 5 of the EP&A Act , theEnvironmental Planning Instruments (EPI) applying to it and other approvalrequirements. A summary of statutory consultation undertaken as part of thepreparation of the REF is also provided.

3.1. Environmental Planning and Assessment Act 1979

The EP&A Act establishes the system of environmental planning and assessment inNSW. This proposal is subject to the environmental impact assessment and planning approval requirements of Part 5 of the EP&A Act. Part 5 of the EP&A Act specifies theenvironmental impact assessment requirements for activities which do not requiredevelopment consent under Part 4 of the Act.

In accordance with Section 111 of the EP&A Act, SPC, as the determining authority,must examine and take into account to the fullest extent possible all matters affecting orlikely to affect the environment by reason of the proposal.

Clause 228 of the Environmental Planning and Assessment Regulation 2000 (EP&ARegulation) defines the factors which must be considered when determining if anactivity assessed under Part 5 of the EP&A Act has a significant impact on theenvironment.

Chapter 6 of this REF provides an environmental impact assessment of the BitumenFacility in accordance with Clause 228.

3.1.1. Section 111

Division 2 of Part 5 of the EP&A Act is titled Duty of determining authorities to considerenvironmental impact of activities . Contained within that Division is Section 111 of theEP&A Act titled Duty to consider environmental impact .

An extract of the legislation is provided in italics below. Responses are provided belowwhere relevant.

(1) For the purpose of attaining the objects of this Act relating to the protection andenhancement of the environment, a determining authority in its consideration of anactivity shall, notwithstanding any other provisions of this Act or the provisions of any other Act or of any instrument made under this or any other Act, examine and take intoaccount to the fullest extent possible all matters affecting or likely to affect theenvironment by reason of that activity.

(2) Without limiting subsection (1), a determining authority shall consider the effect of an activity on:

(a) any conservation agreement entered into under the National Parks and Wildlife Act 1974 and applying to the whole or part of the land to which the activity relates, and

(b) any plan of management adopted under that Act for the conservation area towhich the agreement relates, and


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Response

The proposal will not have an impact on any conservation agreement or any planof management entered into under the National Parks and Wildlife Act 1974.

(c) any joint management agreement entered into under the Threatened SpeciesConservation Act 1995, and

Response

The proposal will not have an impact on any joint management agreemententered into under the Threatened Species Conservation Act 1995.

(d) any biobanking agreement entered into under Part 7A of the ThreatenedSpecies Conservation Act 1995 that applies to the whole or part of the land towhich the activity relates.

Response

The proposal will not have an impact on any biobanking agreement entered intounder Part 7A of the Threatened Species Conservation Act 1995 that applies tothe whole or part of the land to which the activity relates.

(3) Without limiting subsection (1), a determining authority shall consider the effect of an activity on any wilderness area (within the meaning of the Wilderness Act 1987) inthe locality in which the activity is intended to be carried on.

Response

The proposal will not have an impact on any wilderness area (within the meaning of the Wilderness Act 1987 ) in the locality in which the activity is intended to becarried on.

(4) Without limiting subsection (1), a determining authority must consider the effect of an activity on:

(a) critical habitat, and

(b) in the case of threatened species, populations and ecological communities, andtheir habitats, whether there is likely to be a significant effect on those species,populations or ecological communities, or those habitats, and

(c) any other protected fauna or protected native plants within the meaning of theNational Parks and Wildlife Act 1974.

Response

The proposal will not have an impact on any critical habitats, threatened species,populations and ecological communities, and their habitats, and the effect on anyother protected fauna or protected native plants within the meaning of theNational Parks and Wildlife Act 1974 .


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3.1.2. Section 5A

Section 5A of the EP&A Act titled Significant effect on threatened species, populationsor ecological communities, or their habitats .

An extract of the legislation is provided in italics below. Responses are provided belowwhere relevant.

(1) For the purposes of this Act and, in particular, in the administration of sections 78A,79B, 79C, 111 and 112, the following must be taken into account in deciding whether there is likely to be a significant effect on threatened species, populations or ecologicalcommunities, or their habitats:

(a) each of the factors listed in subsection (2),

(b) any assessment guidelines.

(2) The following factors must be taken into account in making a determination under this section:

(a) in the case of a threatened species, whether the action proposed is likely tohave an adverse effect on the life cycle of the species such that a viable localpopulation of the species is likely to be placed at risk of extinction,

Response

The proposed action is contained wholly within an already developed area of thesite and is devoid of any flora or fauna species. It is unlikely to have an adverseeffect on the life cycle of any threatened species or place a threatened species atrisk of extinction.

( b) in the case of an endangered population, whether the action proposed is likely to have an adverse effect on the life cycle of the species that constitutes theendangered population such that a viable local population of the species is likely to be placed at risk of extinction,

Response

The proposed action is contained wholly within an already developed area of thesite and is devoid of any flora or fauna species. It is unlikely to have an adverseeffect on the life cycle of any endangered species or place any endangeredspecies at risk of extinction;


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(c) in the case of an endangered ecological community or critically endangeredecological community, whether the action proposed:

(i) is likely to have an adverse effect on the extent of the ecological community suchthat its local occurrence is likely to be placed at risk of extinction, or

(ii) is likely to substantially and adversely modify the composition of the ecologicalcommunity such that its local occurrence is likely to be placed at risk of extinction,

Response

The proposed action is contained wholly within an already developed area of thesite and is devoid of any flora or fauna species. It is unlikely to have an adverseeffect on an endangered ecological community or critically endangered ecologicalcommunity so as to place any species at risk of extinction or substantially andadversely modify the composition of the ecological community such that its localoccurrence is likely to be placed at risk of extinction.

(d) in relation to the habitat of a threatened species, population or ecologicalcommunity:

(i) the extent to which habitat is likely to be removed or modified as a result of theaction proposed, and

(ii) whether an area of habitat is likely to become fragmented or isolated from other areas of habitat as a result of the proposed action, and

(iii) the importance of the habitat to be removed, modified, fragmented or isolatedto the long-term survival of the species, population or ecological community inthe locality

Response

The proposed action is contained wholly within an already developed area of thesite and is devoid of any flora or fauna species. It is unlikely to have an adverseeffect on habitat of a threatened species, population or ecological community soas to substantially and adversely modify the composition the habitat. In relationto the habitat of a threatened species, population or ecological community, nohabitat is proposed to be removed, or habitat fragmented from other areas of habitat to threaten the long term survival of any species.

(e) whether the action proposed is likely to have an adverse effect on criticalhabitat (either directly or indirectly),

Response

The action is unlikely to have an adverse effect on critical habitat (either directlyor indirectly).

(f) whether the action proposed is consistent with the objectives or actions of arecovery plan or threat abatement plan,


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Response

The action does not constitute part of a recovery plan or threat abatement planfor critical habitat.

(g) whether the action proposed constitutes or is part of a key threatening process or islikely to result in the operation of, or increase the impact of, a key threatening process.

Response

The action does not constitute or is part of a key threatening process or is likelyto result in the operation of, or increase the impact of, a key threatening process.

3.2. State Environmental Planning Policies

3.2.1. State Environmental Planning Policy (State and Regional Development) 2011

State Environmental Planning Policy (State and Regional Development) 2011 (State andRegional Development SEPP) commenced on 1 October 2011.

The State and Regional Development SEPP forms part of an assessment system forprojects of State significance will commence in New South Wales. The State significantassessment system establishes two separate assessment pathways known as Statesignificant development (SSD) and State significant infrastructure (SSI). Projects that fallinto these categories are assessed by the Department of Planning and Infrastructure(DPI).

Under Clause 8 (1) of the State and Regional Development SEPP development isdeclared to be State significant development for the purposes of the Act if:

(a) the development on the land concerned is, by the operation of an environmentalplanning instrument, not permissible without development consent under Part 4of the Act, and

(b) the development is specified in Schedule 1 or 2.

Under Schedule 1, Clause 10 refers to Chemical, manufacturing and related industries.Subclause (2) specifies development with a capital investment value of more than $30million for any of the following purposes:

(a) liquid fuel depots,

(b) gas storage facilities,

(c) chemical storage facilities.

The capital investment value of the Bitumen Facility is less than $30 million andtherefore is not State significant development.

Schedule 6 of the State and Regional Development SEPP describes the amendments toother instruments. Clause 6.12 describes amendments to State Environmental Planning Policy (Major Development) 2005 (Major Development SEPP). The following relevantmatters have been identified:

Subclause 8 specifies that Clauses 6-6C be omitted;


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Subclause 24 specifies that Schedule 1 Part 3A projects classes of developmentbe omitted; and

Subclause 25 specifies that Schedule 2 Part 3A projects specified sites beomitted.

3.2.2. State Environmental Planning Policy (Major Development) 2005

State Environmental Planning Policy (Major Development) 2005 (Major DevelopmentSEPP) is a key environmental planning instrument which determines that this proposal ispermissible without consent and therefore to be assessed under Part 5 of the EP&A Act.

A number of amendments to the Major Development SEPP have been made by thecommencement of the State and Regional Development SEPP. Notwithstanding thoseamendments, numerous clauses of the Major Development SEPP are of relevance to theproposal and are described below.The site is located on land identified on the Land Application Map as detailed inSchedule 3 of the SEPP, Part 20 Three Ports Site. The site is zoned SP1 SpecialActivities under Schedule 3 of the SEPP, Part 20 Three Ports Site, Clause 11 of theMajor Development SEPP. Relevant extracts include the following:

(1) The objectives of Zone SP1 Special Activities are as follows:

(a) to provide for special land uses that are not provided for in other zones,

(b) to provide for sites with special natural characteristics that are not provided for in other zones,

(c) to facilitate development that is in keeping with the special characteristics of the site or its existing or intended special use, and that minimises any adverseimpacts on surrounding land,

(d) to maximise the use of waterfront areas to accommodate port facilities andindustrial, maritime industrial and bulk storage premises that benefit from being located close to port facilities,

(e) to enable the efficient movement and operation of commercial shipping, and toprovide for the efficient handling and distribution of freight from port areasthrough the provision of transport infrastructure,

(f) to facilitate development that by its nature or scale requires separation fromresidential areas and other sensitive land uses,

(g) to encourage employment opportunities.(2) Development for any of the following purposes is permitted without developmentconsent on land within Zone SP1 Special Activities:

community facilities; environmental facilities; environmental protection works.

(3) Development for any of the following purposes is permitted only with developmentconsent on land within Zone SP1 Special Activities:

boat launching ramps; depots; food and drink premises; freight transport facilities;heavy industries; navigation and emergency response facilities; port facilities;roads; transport depots; warehouse or distribution centres.


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(4) Except as otherwise provided by this Part, development is prohibited on land within Zone SP1 Special Activities unless it is permitted by subclause (2) or (3).

In accordance with Clause 10A, development which does not require consent under Part4, is specified in Schedule 7. Clause 2(1) states Development for comm unity facilities,environmental facilities, environmental protection works and port facilities on landowned or managed by a public authority within the Three Ports Site, being developmentwith a capital investment value of not more than $30 million, whether or not thedevelopment is carried out by a public authority . Discussions with SPC confirm that theproposal is con sistent with the definition of port facilities . The proposal has a capitalinvestment value of less than $30 million.

Clause 10A, has the consequence that the removal of the requirement for developmentconsent under Part 4 of the Act is subject to an environmental assessment and approvalrequirements under Part 5 of the Act. The determining authority under Part 5 is SPC.

3.2.3. State Environmental Planning Policy (Infrastructure) 2007

State Environmental Planning Policy (Infrastructure) 2007 contains consultationrequirements within Part 2 of the environmental planning instrument.

Consultation with neighbours of Vopak Terminals Sydney Pty Ltd and the localcommunity through the Port Botany Neighbourhood Liaison Group is proposed.

3.2.4. State Environmental Planning Policy 33 Hazardous and OffensiveDevelopment

State Environmental Planning Policy No.33 Hazardous and Offensive Development

(SEPP 33) requires specific matters to be considered for proposals that are potentiallyhazardous or potentially offensive as defined in the policy.

The proposed development is classified as potentially hazardous industry which isdefined as:

A development for the purposes of any industry which, if the development were tooperate without employing any measures (including, for example, isolation from existing or likely future development on other land) to reduce or minimise its impact in thelocality or on the existing or likely future development on other land, would pose a

significant risk in relation to the locality:

(a) to human health, life or property, or

(b) to the biophysical environment,

and includes a hazardous industry and a hazardous storage establishment.

A Preliminary Hazard Analysis (PHA) has been prepared and is submitted with the REF asthe proposal comprises development that is classified as potentially hazardous industry.

3.2.5. State Environmental Planning Policy 55 Remediation of LandAccording to clause 7(1) of SEPP 55 - Remediation of Land (SEPP 55), a consentauthority must not consent to the carrying out of any development on land unless:

a) it has considered whether the land is contaminated, and


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b) if the land is contaminated, it is satisfied that the land is suitable in itscontaminated state (or will be suitable, after remediation) for the purpose for which the development is proposed to be carried out, and

c) if the land requires remediation to be made suitable for the purpose for whichthe development is proposed to be carried out, it is satisfied that the land will beremediated before the land is used for that purpose.

A due diligence environmental assessment was undertaken by ERM Pty Ltd (2002) toassess whether the prior use of Lot 14 as a JORTL LPG facility had impacted soil andgroundwater conditions for the site. The investigations concluded no observable impactsto soil or groundwater conditions attributable to the use of a JORTL LPG facility.

Lots 12 and 13 are covered in concrete and include bunded areas. The currentEnvironmental Protection License does not mandate due diligence assessment of potential contamination within these areas (known as hot spots). However, Vopak hasacknowledged that there are possibly a small number o f potential hot spots within Lot12 and 13 and these hot spots are assessed as part of Vopaks own environmentaldue diligence responsibilities.

A search of the NSW Office of Environment and Heritage (OEH) Contaminated LandsRegister on 25 August 2011 found that there are no registered contaminated lands forthe site.

Any excavated soil would be collected and visually assessed for contamination beforereuse; if there are any signs of contamination then an independent environmentalassessment will be undertaken. Any disposal of soil off site will be assessed andclassified to OEHs Waste Classification Guidelines: Part 1 Classifying Waste anddisposal to an approved facility.

3.3. Commonwealth EPBC Act

Under the Commonwealth Environmental Protection and Biodiversity Conservation Act1999 (EPBC Act) the following matters of national environmental significance (NES)under Part 3 of the EPBC Act need to be considered:

a declared World Heritage Property; a National Heritage place; a declared Ramsar wetland;

Commonwealth listed migratory species; Commonwealth listed threatened species or endangered community; Commonwealth marine areas; and Commonwealth land.

It is considered that the proposal will not pose a significant impact on these matters.

A Referral under the EPBC Act to the Commonwealth Department of Sustainability,Environment, Water, Population and Communities is therefore not required.


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3.4. Other Legislation

Other key legislation includes the Protection of the Environment Operations Act 1997and the Airports Act 1996 which are detailed below.

The activity is considered to satisfy the requirements of the Pipelines Act 1967 and theWater Management Act 2000.

Vopak would notify WorkCover of the proposed Bitumen Facility under the DangerousGoods notification requirements and of any potential changes when relevant under theOccupational Health and Safety Regulation 2001.

3.4.1. Protection of the Environment Operations Act 1997

The Protection of the Environment Operations Act 1997 aims to protect, restore and

enhance the quality of the environment in New South Wales, having regard to the need to

maintain ecologically; and

sustainable development and is administered by the NSW Office of Environmentand Heritage (OEH).

Petroleum products storage is listed in Schedule 1 of the Act. Bitumen is considered tobe a petroleum product under the Act and therefore the proposal is declared to be ascheduled activity.

Clause 47 of the Act states that an Environment Protection License is required fordevelopment of a premise for the purpose of a scheduled activity, meaning the proposal

requires such a license.Vopak has approached OEH and been advised they would amend the existing Environment Protection Licence (6581) for Site A to cover the Bitumen Facility.

3.4.2. Airports Act 1996

Under Section 182 of the Airports Act 1996, controlled activities in relation to aprescribed airspace includes, constructing a building, or other structure that intrudesinto the prescribed airspace.

A prescribed airspace for an airport is,

the airspace above any part of either an OLS or PANS-OPS surface for theairport; and

airspace declared in an declaration, under regulation 5, relating to the airport

Under Clause 7 of the Airport (protection of Airspace) Regulations 1996, approval isrequired for a proposed controlled activity.

The proposed construction of the three 10,000m 3 tanks requires approval from theSydney Airport Corporation Ltd as during construction the crane elevation will be up to47m AHD and accordingly intrudes into prescribed airspace.


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Vopak Terminals Sydney Pty Ltd will ensure that approval is sought and obtained prior tothe commencement of any construction works for all structures and constructionequipment (including cranes) from Sydney Airports Corporation Limited/Civil AviationSafety Authority pursuant to the Airports Act 1996.

3.4.3. Other

The proposed operations have considered the applicability of the following legislationand the applicable licences or approvals have been obtained. The proposal satisfied therequirements of:

Water Management Act 2000; and Occupational Health and Safety Regulation 2001.

The Pipelines Action 1967 is not applicable to the pipeline associated with the BitumenFacility.

Further, Vopak Terminals Sydney Pty Ltd will be notifying WorkCover Authority of theproposed Bitumen Facility and associated pipeline under the Dangerous Goodsnotification requirements and keep WorkCover Authority notified of any potentialchanges when relevant.

3.5. Sydney Ports Guidelines and Policies

The REF has considered the relevant guidelines and policies developed by the SydneyPorts Corporation. Details and comments are listed below.

3.5.1. Port Botany Development Code 2009The REF has considered the SPC Port Botany Development Code 2009. Generally, theproposal complies with the applicable criteria. A compliance table is provided asAppendix A.

3.5.2. Green Port Guidelines

A checklist has been completed that addresses the relevant criteria and requirements of the SPC Green Port Guidelines and is attached as Appendix B.

3.5.3. Traffic Management Plan Guidelines 2007

The SPC Traffic Management Plan Guidelines 2007 have been considered as part of theproposal and an assessment of traffic and transport implications is provided in Section6.8.

3.6. Statutory Consultation

A Planning Application Meeting was held on 26 August 2011 in relation to the BitumenFacility being developed on 11 Simblist Rd (Lot 19 DP 735037 previously part of Lot 6DP 1053768). Attendees included officers of SPC and representatives of Vopak.However, since that meeting, the site of the Bitumen Facility has changed to Vopak SiteA, 49 Friendship Road Port Botany. Although the site had changed the issues raised atthe meeting remain valid. A summary of the issues raised by SPC during the Planning


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Application Meeting and where they have been addressed in the REF is provided inTable 3.1.

Table 3.1 SPC Issues and REF Responses

SPC Issue Where issue has beenaddressed in the REF

Development assessment process. Section 3.2.2

Provide details and assess all works to be constructedincluding utilities and services.

Described in Section 5 andassessed in Section 6

Assessment of construction and operational impacts is

required and how the works will be managed to mitigate andimpacts on the environment.

Sections 6 and 7

Assessment documentation should specifically address:

Stormwater; Section 6.5 Water quality (including groundwater and management

of spills during operation) and waste water management/reuse;

Sections 6.5 and 6.6

Contamination and Potential Acid Sulphate Soils(including details of excavation depths and existing siteconditions);


Air quality, odour and dust;Section 6.2 and Appendix C

Waste management and disposal (including volume); and Section 6.7 Noise impacts. Section 6.3 and Appendix D

Complete the SPC Green Port Guidelines checklist. Appendix B

The assessment documentation is to address both theconstruction and operational traffic impacts of the proposeddevelopment, including details regarding the number and typeof vehicles required to undertake the proposal.

Section 6.8

Sweep path drawings for the largest vehicle type likely to enterand exit the site including approach paths and route to exit

gate.

Provided as part of drawingsfor the project

A construction and operational Traffic Management ControlPlan and a Traffic Management Site Plan in accordance withSPCs Traffic Management Plan Guidelines 2007 are requiredto be prepared.


A Preliminary Hazard Analysis (PHA) report will need to beprepared for the proposed works including showing riskcontours and radiated heat contours for fire scenarios.

A risk assessment of the proposal taking into considerationadjoining land use activities (including activities occurring on

Section 6.4 and Appendix E


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SPC Issue Where issue has been

addressed in the REFSimblist Rd) and other site processes and activities includingship loading / discharge activities at the bulk liquid berths.

An assessment against the Port Botany Land Use Safety StudyOverview Report 1996 is also required.

An assessment of other relevant construction and operationalimpacts e.g. visual and heritage.

Section 6.9

An assessment of cumulative impacts (construction andoperational) with approved developments in proximity to thesite.

Section 6.9

Consideration of the proposed development impact on airportsafety requirements, specifically consideration of whether theproposal is a controlled activity.

Section 3.4.2

The assessment documentation should include any proposedmitigation measures for the development.

Section 7

Applicable legislation & other guideline requirementsincluding:

Environmental Planning & Assessment Act, 1979(including the Environmental Planning & Assessment

Regulation 2000);


Environmental Protection and Biodiversity ConservationAct 1999;

Section 3.3

Airports Act 1996, specifically Section 182 of this Act,and Clause 7 of the Airports (Protection of Airspace)Regulations 1996 (to determine if the proposeddevelopment, including construction activities, is acontrolled activity and any necessary approvals /referrals required);

Section 3.4.2

Pipelines Act 1967 (may apply); Section 3.4.3 Protection of the Environment Operations Act 1997 (and

if a new licence for the site is needed);

Section 3.4.1

State Environmental Planning Policy (MajorDevelopment) 2005;

Section 3.2.2

State Environmental Planning Policy (Infrastructure)2007;

Section 3.2.3

State Environmental Planning Policy No. 33 (Hazardousand Offensive Development);

Section 3.2.4

State Environmental Planning Policy No. 55 (Remediationof Land);

Section 3.2.5

Port Botany Land Use Safety Study Overview Report1996;

Section 6.4 and Appendix E

SPCs Port Botany Development Code 2009 (including Appendix A


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SPC Issue Where issue has been

addressed in the REFTraffic Management Plan Guidelines 2007;

Green Port Guidelines). Sydney Ports checklist must becompleted to demonstrate how the proposeddevelopment complies with each criterion; and

Appendix B

Australian Standard AS1940 - 2004 as amended. Section 5

Documentation to be provided to Sydney Ports including:

Environmental assessment documentation includingplans / drawings of the site and proposal; and

See REF

Sydney Ports application form for either landownersconsent or Part 5 assessment.

Separate document

An assessment of impacts on the Elgas LPG Storage Cavern,specifically addressing the following matters:

proposed construction methods; likely impact on the water table; and likely impact on the LPG Storage Development.

Section 6.6


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4. Project Need, Justification and AlternativesThe impending closure of the Shell Oil Refinery at Clyde will result in changes tosupplying bitumen to the wider Sydney area market and will require bitumen to beimported.

As such Vopak Terminals Sydney Pty Ltd seeks to establish a Bitumen Facility in offering response to these changes to the bitumen supply industry.

The Bitumen Facility must be located adjacent to BLB1 so that bitumen product can beimported by sea tankers to the Bitumen Facility.

The Site A Terminal has space to accommodate the Bitumen Facility and containsinfrastructure and services to support its operation.


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5. Description of the Project

5.1. Introduction

It is proposed to develop 49 Friendship Road Port Botany (Site A Terminal) for thepurposes of a Bitumen import and distribution facility (Bitumen Facility). The proposedBitumen Facility would be located on Lot 14 and part of Lot 12 (Deposited Plan1126332) and will occupy approximately 1.3 hectares of the approximately four hectaresite.

The site is partially a greenfield site (Lot 14) and Lot 12 (part) has existing infrastructuresuch as utilities, entranceways, perimeter roadways, security, site lighting, fire protectionand buildings. All of these facilities are to be integrated into the project design.

The projected annual throughput of the Bitumen Facility is 160,000 tonnes of bitumenfeedstock with potential for future growth.

The capital costs of the proposal are of the order of $25 million.

Bitumen at the site will have the following classifications based on the AustralianDangerous Goods Code:

UN number 3257; Proper shipping name ELEVATED TEMPERATURE LIQUID, N.O.S.(Bitumen); Class 9; Packing group III; and

Hazchem Code 2Y.

5.2. Construction

A 12 month construction period is proposed. Construction is scheduled to commence inFebruary/March 2012 and be completed by April 2013.

The main construction activities envisaged include:

Site preparation; Earthworks;

Excavation;

Concrete placement; Erection of tanks and structures; and Commissioning.

The bulk of the construction works would be conducted during daytime hours (nominally7.00am to 6.00pm). Vehicular access to the site would be provided via Simblist Roadand Friendship Road.


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5.3. Operation

5.3.1. Process Flow

The Bitumen Facility would comprise the following:

Storage and heating facilities for three (3) different bitumen grades in 3 x 10 000m3 tanks;

Ship receipt facilities, including a dedicated electrically traced pipeline to BulkLiquids Berth No.1 (BLB1); and

Gantry facilities for loading and in-line blending bitumen road tankers (two roadtanker loading bays initially with expansion to four in the future).

Further details of the site are shown in Figure 5.1.

Figure 5.1 Site Layout

Source: Vopak Australia

Bitumen feedstock would be imported via BLB1 and transferred to heated 10,000 mtanks.

The bitumen would be stored at approximately 140C - 150C and would be loaded outat approximately 180C.

Heating would primarily be facilitated through two hot oil heaters and associated heatexchangers by the use of natural gas as fuel.


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The Bitumen Facility will store up to three imported bitumen grades.

Various specialty grades will be generated by blending the main grades through an inlineblending system during road tanker loading.

The Bitumen Facility will operate 24 hours a day, 365 days a year.

5.3.2. Proposed Tanks

Three tanks are to be constructed each with a capacity of 10,000 m. Each tank wouldbe 22 metres in diameter and have an overall height of 27 metres. The tanks would beused to store the three grades of bitumen.

There is one smaller tank for potentially contaminated stormwater associated with theproposal.

The tanks would be fixed roof carbon steel and fabricated to American PetroleumInstitute (API) 650 standard including Appendix M for Heated Tanks.

Overfill protection would be installed and would comprise two independent level systemswith high level alarms as well as an automatic computer driven product transfer systembetween tanks.

Tanks would meet industry design standards (API 650 and API 2000) and specificcustomer requirements.

Product in storage will be maintained at 140C - 150C. When the product is being delivered it must be at a temperature of 180 - 190C at the road tanker loading gantry.

Product must be received into the tanks at a minimum flow rate of 400 tonnes per hourat 140C.

Tanks would have hot oil coils and controls capable of maintaining product at 150C.

Level measurement and monitoring would be with a radar level gauging system:

Suitable for operational purposes; Suitable for stock reconciliation; Alarm points suitable for alarming and/or interlocking (High; High-High; Low; Low-

Low); and

Control system feedback capability.Independent high-high level capacitance switches would be fitted.

Thermal insulation suitable for the maintenance of storage temperatures at 150Cwould be fitted. Design and installation would be consistent with best industry practiceto minimise corrosion under insulation. Lagging installation must prevent water orhydrocarbon ingress into insulation.

Operational vents suitable for bitumen and sized for nitrogen blowing of the wharflinefrom the ships line to the bitumen storage tanks would be fitted.

Tanks would be top filled via an external riser and internal slotted pipe.

Alarms and interlocks would be as follows:

High level to generate an audible alarm and a message in the control room;


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High-High level to generate a site audible alarm and a message in the controlroom;

High-High independent level switch to generate a site audible alarm and amessage; in the control room and Emergency Shutdown;

Low Level to generate an audible alarm and a message in the control room; Low-Low Level alarm to generate a site audible alarm, message in the control

room;

Low-Low level alarm activation will stop the loading pumps, close the tank pumpsuction valve and close hot oil coil control valve;

High temperature to generate an audible alarm and a message in the controlroom; and

High-High temperature to generate a site audible alarm and a message in thecontrol room and close hot oil coil control valve.

Lighting is to be provided for security, ship unloading, truck loading and sampling operations.

Structural integrity tests would be conducted every 10 years in accordance withAustralian Standard (AS) 1940.

5.3.3. Bunded Areas

Containment of liquid within the bund would meet AS 1940 and SPC Development Code

requirements.The bunded areas (tank pits, pump bays and road tanker loading gantries) would havesumps for the collection of rainwater and possible spills and would be directed to thewastewater treatment plant prior to disposal. Treated water collected in these sumpswould be sampled and inspected prior to release to stormwater.

Should the water be contaminated, it will be pumped to a waste tank for transport to anapproved OEH waste treatment facility.

Open paved areas would have a first flush containment system (10mm/m 2 benchmark)with a capability to direct flow to the wastewater treatment plant.

The tanks would be separated by intermediate bund walls and are designed to overflowinto each other providing a total containment capacity to meet AS 1940 as follows:

net capacity of largest tank plus 10%, i.e., 10,000 m 3 plus 1,000 m 3; and plus allowance of 20 minutes of firewater, i.e., four hydrants at 10 litres per

second each means 48,000 litres or 48 m 3 .

As the standards for AS1940 and SPC Development Code require up to 110% of volumeof the largest tank in bund plus 20 minutes of firewater output, the proposed BitumenFacility will have a tank bund capacity of 11,048 m 3 which is well within the designcapacity requirements.


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5.3.4. Vapour Combustor

A Vapour Combustor is to be located near the Utilities Building for treating storage tankvapours during ship unloading operations and truck venting when being filled.

5.3.5. Bitumen Product Receipt

The Bitumen Facility will receive bitumen products (160,000 tonnes per year) via Shipfrom BLB1.

Bitumen products would be imported on vessels of up to 15,000 tonne tanker size andthe typical parcel size would be 5,000 - 10,000 tonnes per shipment.

Frequency would be 8-16 shipments per annum (depending on ship size).

A single pipeline with electric heat tracing and insulation/cladding would be dedicated

for bitumen unloading from BLB1. The minimum unloading capacity rate is 400 tonnesper hour.

All hoses and fittings required to connect the ship to the unloading pipeline would bededicated for bitumen usage only. Hose and wharf pipeline design would facilitatedraining/blowing of hoses and means of confirming hoses drained prior to breaking connections.

Suitable bunding/containment would be provided at the wharf connection point.

The design of the pipeline between the wharf and the storage tanks will address thefollowing issues:

Heating during and prior to transfers (required to heat from ambient temperatureto 120C within 24 hours and maintain product at 120C);

Resting the line empty or on product (or partially empty); Public safety (e.g., hot surfaces, electrical hazards); Product security; Thermal relief; and Thermal expansion and thermal stress of the pipeline as it heats/cools.

The wharf pipeline will be blown clear of product with compressed air at the completionof each shipment.

5.3.6. Road Tanker Loading GantryLoading operations would occur 24 hours per day, 365 days a year and would be driverself-loading.

A two bay road tanker loading gantry is proposed with provision to increase to four bayssubject to future development consent.

Each loading bay would be fitted with one loading arm, and will be capable of loading ata rate of 60 tonnes per hour. The loading bays would have mass flow meters with a pre-set auto shut off and overfill protection probe.


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The Bitumen Facility would be sized to accommodate the ingress, egress and turning requirements of a 26 metre B-Double road tanker, without reversing. Each barrel of theB-Double road tanker would load separately.The gantry will house the bay controller in a safe area (i.e., an enclosed area from wherethe driver can view the truck hatch). The bay controller will be fitted with a three minute(man down) delay button.

Other features include:

Truck top access, fold down stairs with a cage on end (for fall protection); A truck earth system with interlock; and All bays would be provided with weather protection to protect the truck and driver

from exposure to elements.

A road tanker parking area and a paperwork collection station would be located withinthe Bitumen Facility outside the gantry.

It is anticipated that there will be an average of 15 truck loads per day from the BitumenFacility.

5.3.7. Heating System

A thermal oil system and furnace would be installed to fulfil the following heating applications:

Heating of bulk storage tanks using hot oil coils;

Heating of bitumen loading line heat exchangers ( loading lines x 2); Heating of oil traced pipeline systems (where required) or electric heat tracing forinsulated pipelines; and

Furnace fuel will be natural gas.The hot oil system would incorporate the following features:

100% redundancy of hot oil pumps; Hot oil pumps would be to a recognised standard suitable for continuous

operation at the required design temperature;

A radar level gauge fitted on hot oil expansion tank; A low-level switch in expansion tank, which trips the furnace and hot oil pumps

and alarms in the office;

A degassing pot; and All electric equipment would be rated to the zone classification.

Unless identified by exception all pipelines and equipment operating with bitumenrequire heat tracing. Heat tracing may be either hot oil or electric. Electric tracing wouldbe in accordance with IEC 62086 Electrical Resistance Trace.


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5.3.8. Thermal Insulation and Cladding

All pipelines, tanks and equipment operating above 70C would require thermalinsulation for heat conservation and personnel protection. Thermal insulation would bedesigned, fabricated and installed in accordance with best practices to shed and drainwater and to minimise potential for corrosion under insulation. Insulated pipes andequipment would be located so as to minimise the potential for mechanical orpedestrian damage to insulation and cladding. Where practical, galvanised rather thanaluminium cladding is preferred due to superior mechanical strength.

5.3.9. Pipework

All pipework would be designed and constructed in accordance with the appropriatepiping classes (AS4041 and/or ANSIB13.9). Pipework design would consider variationsin operating temperatures (including start up and shut down) and the corresponding impact on product viscosity.

A pipework stress analysis study will be completed to ensure that only acceptablestresses are developed in pipework systems and transferred to equipment nozzles. Thestress analysis will consider start up, shut down and operating conditions.

5.3.10. Product Quality

Product quality and stock management procedures and practices will be required forreceipt, storage and despatch. Customer appointed surveyor services will form the basisof product testing requirements to ensure cargos received and despatched meet therequired specification. Provision will be made for basic on-site testing facilities.

5.3.11. Buildings

A room within the existing Site A Administration Building would be modified for driveramenities including tea/coffee making facilities and control/supervision purposes.Existing driver toilets and shower facilities would also be used.

New minor plant buildings for electrical switchrooms, electrical transformers, hot oilfurnaces and a vapour combustor unit would also be constructed.

The existing car park would be modified.

With the expansion of the existing control room project at Site B there will be a netdecrease in staff at Site A.

5.3.12. Power and LightingLighting of the following operational areas will be suitable for safe access andequipment monitoring (including stop / start):

Bulk storage tank including tank top area; Site perimeter; Heating shed; Heat exchangers; Bitumen pumps;


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Documents

Bitumen Project-review of Environmental Factors