4590_DPIE_Bakopanos_20201009a_ltr

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Umwelt (Australia) Pty Limited

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Our Ref: 4590_DPIE_Bakopanos_20201009a_ltr

9 October 2020

Joanna Bakopanos Team Leader Industry Assessments Department of Planning Industry & Environment Submitted Via major projects portal

Dear Joanna

Re: Request for Additional Information – Responses

The Modification to Kooragang Island Facility T-3 to T-6 Consolidation (Umwelt, May 2020) (i.e. Modification 6) was submitted to the Department of Planning, Industry & Environment (DPIE) on 25 August 2020. DPIE sought comment from the relevant agencies with submissions received from:

• DPIE Hazards Branch and

• Newcastle City Council (NCC).

The following section addresses the comments made by the DPIE Hazard Branch and NCC. The comments are reproduced in bold text and Park Pty Ltd response presented below.

1.0 DPIE Hazards Branch

It is noted the new T3 tank will have a capacity of 32.9ML and the current bund capacity is not large enough to comply with the AS 1940. Although the document has explained having engineering instrumentations and management control to limit the combustible liquid storage capacity, it is uncertain whether such arrangement can be considered to satisfy the requirement under AS 1940.

The wording under AS 1940 for bund size requirements appears to refer to tank capacity, which is considered as the water capacity of the tank, and not the fill capacity. As such, it is requested the Applicant engage an independent dangerous goods consultant and provide the Department with confirmation that the proposed arrangement is compliant with AS 1940.

Response

The bunding arrangements and calculations as proposed in Modification 6 have been reviewed by Mr K Sharp from TfA Project Group and is included in Appendix A), with an overview of the assessment provided in this section.

Mr Sharp is highly qualified (BE(Chem), FIChemE, FIE(Aust), CPEng, RPEQ, NER, MAIDGC, FAIE, IntPE(Aus) and APEC Eng) and experienced with these matters.

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With respect to compliance with AS1940:2017 bund capacity and the proposal to consolidate the approved but not constructed Tanks 3 to 6, into one tank (i.e. the new T-3 tank) at the Kooragang Island Terminal (referred to hereafter as “the Terminal”), the physical tank size and its gross maximum volume as noted are not considerations when determining the required bund capacity in accordance with AS1940:2017.

The key bund capacity considerations as per AS1940:2017 are:

• the Tank Rated Capacity (Clauses 1.4.6.3 and 5.8.2 of AS1940:2017). The tank rated capacity is defined as the level below the overfill level that will allow time for any action necessary to prevent the maximum capacity from being reached/exceeded) and

• the liquid level control including instrumentation and associated alarms (i.e. engineering control). These controls are used to alert operational staff when the Tank Rated Capacity (i.e. the maximum level of diesel to be stored in the tank) is being approached (Clause 5.3.3 of AS1940:2017).

Modification 6 notes an automated tank gauge system and setting the high-high level alarm are to be incorporated into the new T-3. This the high-high level alarm will be set at or below the Tank Rated Capacity. The setting of this alarm level includes a time allowance for operational staff to terminate the transfer before loss of containment/damage occurs to the tank. The incorporation of liquid level control including alarm instrumentation is therefore a primary control mechanism and therefore fundamental to managing the levels in all tanks (i.e. the operation of the Terminal) and thus compliance with AS1940:2017.

In determining the required bunding capacity for Modification 6, the TfA Project Group identified the Terminal’s existing bund capacity exceeds that required by AS1940:2017. Given the excess/latent bund capacity and Park Pty Ltd’s preference not to alter the permitter bund wall (i.e. change the bunding arrangements), the TfA Project Group defined the Tank Rated Capacity of the proposed Tank 3 based on the existing bund capacity in compliance with the requirements of AS1940:2017 Clause 5.8.2. In effect TfA Project Group applied a reverse engineering approach whereby the Tank Rated Capacity of the new Tank 3 was matched to the existing bunding arrangements.

Therefore, the tank configuration (i.e. Tank Rated Capacity of Tank 3) and the engineering controls (i.e. alarms) as proposed by Modification 6 comply with the relevant requirements of AS1940:2017 bund and tank capacity as described above.

Alternatively, the Applicant may consider adjusting the capacity of the new T3 tank to align with the current bund capacity and therefore comply with AS 1940.

Response

The tank configuration (i.e. Tank Rated Capacity of the new Tank 3) and the engineering controls (i.e. alarms) as described in Modification 6, as described above comply with the relevant requirements of AS1940:2017. Therefore, adjusting the physical tank size and its gross maximum volume of the new T-3 tank to align with the current bund capacity and to achieve compliance with AS1940:2017 is not required.

2.0 Newcastle City Council

NCC submission made a comment regarding Hazards and noted that other appropriate State agencies will assess this aspect of the project.

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Response

Noted

The subject site is located within the protected airspace of RAAF Base Williamtown and Newcastle Airport. If the applicant is proposing to erect the new tank using a mobile crane or a structure having a height exceeding 30m above ground level, it will be necessary to obtain the prior approval of the Air Base Command Post of RAAF Base Williamtown.

Response

Thank you for bringing this to our attention. Park Pty Ltd will consider this aspect prior to commencing construction, should Modification 6 be approved.

It is recommended the applicant is required to submit a cost of development report for the modified development. Such report would assist the Department to make an informed decision as to whether to change the infrastructure contribution required under condition 7. The current plan is the Section 7.12 Newcastle Local Infrastructure Contributions Plan 2019.

Part 7 of the Section 7.12 Newcastle Local Infrastructure Contributions Plan 2019, reproduced below identifies developments which are exempt from the levy.

“Conditions authorised by this Plan are subject to any direction given by the Minister of the Department of Planning and Environment under Section 7.17 of

the Act. This Plan authorises the imposition of conditions in accordance with any such direction. Under Section 7.17 the Minister has directed Council to exempt

development from a levy under this Plan as follows:

• Within the Port of Newcastle Lease Area shown on the State Environmental Planning Policy (Three Ports) 2013 Lease Area Map.”

As the modification is entirely contained within the Port of Newcastle Lease Area shown on the State Environmental Planning Policy (Three Ports) 2013 Lease Area Map (refer to Appendix B) it is exempt from a levy.

The above responses are considered to adequately address the DPIE Hazards Branch’ and NCC’s comments. Should DPIE have any further questions regarding the proposed modification or the environmental assessment, please contact the undersigned on 02 4950 5322.

Yours sincerely

Rod Williams Principal Environmental Scientist

APPENDIX A

Kooragang Island Modification – AS1940:2017 Bund Capacity Clarification

TfA Ref: 19230

9 October 2020 Park Fuels 28 Greenleaf Road Kooragang NSW 2304 ATTN: Steve Thomas RE: Kooragang Island Modification – AS1940:2017 Bund Capacity Clarification Steve, Following receipt of the email dated Tuesday 15 September 2020 from David Koppers, Senior Environmental Assessment Officer, Department of Planning, Industry and Environment (see Appendix 1), TfA Project Group has reviewed AS1940:2017 Storage and Handling of Flammable and Combustible Liquids (AS 1940:2017) with respect to bund capacity requirements and provide the following advice in relation to Park Pty Ltd’s Kooragang Island Terminal (referred to hereafter as “the Terminal”) and its proposal to consolidate the approved but not constructed Tanks 3 to 6, into one tank, which will be known as Tank 3. The Terminal’s existing arrangement along with the proposed Tank 3, as shown in Figure 4.1 in the Modification to Kooragang Island Facility T-3 to T-6 Consolidation (Umwelt, May 2020) is included in Appendix 2 for your convenience.

The proposed Tank 3 is a vertical tank with greater than 150m3 capacity and is therefore classified as a Category 6 tank as per AS1940:2017 Clause 1.4.7. Relevant AS1940:2017 Tank Volume and Instrumentation Control Clauses when Determining Bund Capacity Requirements AS1940:2017 Clause 5.8.2 Bund Capacity states the following (our emphasis added):

The net capacity of a compound shall be at least 110% of the capacity of the largest tank or 25% of the total capacity of all tanks within the bund whichever is the greater. If two or more tanks are operated as a single unit, then the capacity of all such tanks shall be used when calculating the capacity of the compound. NOTE: For Category 6 tanks, the capacity can be taken as the tank rated capacity. When designing and constructing an earthen bund, account shall be taken of subsidence in the construction materials. In no case shall the bund be less than the nominated capacity. In addition, original height markers shall be installed on earthen bunds.

Based on the above, for a Category 6 tank, the net capacity of the compound shall be at least 110% of the tank rated capacity (note 25% of the total capacity of all tanks is less than 110% of the capacity of the proposed Tank 3). AS1940:2017 Clause 1.4.6.3 Tank rated capacity states the following:

The level below the overfill level that will allow time for any action necessary to prevent the maximum capacity from being reached/exceeded.

AS1940:2017 Clause 1.4.6.4 Tank capacity (overfill level) states the following:

The point at which either the tank will suffer mechanical damage or product will be lost from the tank.

19230 – Kooragang Island Modification Consultancy Services | Rev A

2 9 October 2020

Therefore compliance with AS1940:2017, for a Category 6 tank, can be achieved when the net bund capacity is less than the overfill level (i.e. where mechanical damage or product will be lost) from the largest tank. AS1940:2017 Clause 5.3.3 Liquid level indication describes level control requirements to prevent loss of containment/damage with paragraph (f) stating the requirement to have an independent high-high level alarm set at or below the tank rated capacity to prevent loss of containment/damage. Refer below.

In addition to the LAH, they shall incorporate a physically and electrically independent high-high level alarm (LAHH). It will warn of a failure of some element of a primary (process) control system. It shall be set at or below the tank rated capacity to allow adequate response time to terminate the transfer before loss of containment/damage occurs.

Assessment and Statement of Compliance with AS 1940:2017 The Terminal’s existing net bund capacity exceeds that required by AS1940:2017. Given the existing net bund capacity and Park Pty Ltd’s preference not to alter the permitter bund wall (i.e. change the bunding arrangements), TfA Project Group has defined the tank rated capacity of the proposed Tank 3 based on the existing net bund capacity in compliance with the requirements of AS1940:2017 Clause 5.8.2. Liquid level control including instrumentation and associated alarms (i.e. engineering control) is a requirement of AS1940:2017 to prevent the loss of containment/damage of Category 6 storage tanks such as the proposed Tank 3. The incorporation of an automated tank gauge system and setting the independent high-high level alarm at or below the tank rated capacity for the proposed Tank 3 is in compliance AS1940:2017 Clause 5.3.3. As demonstrated above, in our opinion, the proposal to consolidate the approved but not constructed Tanks 3 to 6, into one tank, being Tank 3, as described in the Modification to Kooragang Island Facility T-3 to T-6 Consolidation (Umwelt, May 2020) complies with the relevant requirements of AS1940:2017 with respect to bund capacity. Should you have any further questions, please don’t hesitate to contact the undersigned. Yours faithfully,

Keith Sharp Engineering Manager BE(Chem), FIChemE, FIE(Aust), CPEng, RPEQ,NER, MAIDGC, FAIE, IntPE(Aus), APEC Eng Attachments: 1. Email from David Koppers dated 15/9/20 2. Figure 4.1 AS1940:2017 4.1.1 Relevant Design considerations 3. Keith Sharp CV

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From: David Koppers <David.Koppers@planning.nsw.gov.au> Sent: Tuesday, 15 September 2020 1:31 PM To: Rod Williams <rwilliams@umwelt.com.au> Subject: MP07_0066-Mod-6 - Request for additional information Hi Rod Our Hazards team has come back to me with a couple of questions for you which are provided below. These will form part of a formal Response to Submissions once we have all agency comments (which are due to me tomorrow) but I thought I would send these through to give you a bit of a head start. It is noted that the new T3 tank will have a capacity of 32.9ML and the current bund capacity is not big enough to comply with the AS 1940. Although the document has explained having engineering instrumentations and management control to limit the combustible liquid storage capacity, it is uncertain whether such arrangement can be considered to satisfy the requirement under AS 1940. It should be noted that the wording under AS 1940 for bund size requirement appears referring to tank capacity, which is considered as the water capacity of the tank, and not relates to fill capacity. As such, it is requested the Applicant to verify with independent DG consultant, and provide the Department a justification and confirmation that the proposed arrangement is suitable and be able to comply with AS 1940. A list of DG consultants can be found in https://aidgc.org.au/how-to-choose-a-consultant/. In addition, as a general question, we also wonder whether Park Fuel may consider to adjust the new T3 tank size to a capacity that can align with current bund capacity and so comply with AS 1940? Please feel free to contact me if you have further question on the above. Regards David Koppers Senior Environmental Assessment Officer Industry Assessments | Department of Planning, Industry and Environment T 02 9373 2869 | E david.koppers@planning.nsw.gov.au 4 Parramatta Square, 12 Darcy Street | Locked Bag 5022 | Parramatta NSW 2124 www.dpie.nsw.gov.au

The Department of Planning, Industry and Environment acknowledges that it stands on Aboriginal land. We acknowledge the traditional custodians of the land and we show our respect for elders past, present and emerging through thoughtful and collaborative approaches to our work, seeking to demonstrate our ongoing commitment to providing places in which Aboriginal people are included socially, culturally and economically.

Please consider the environment before printing this e-mail.

Qualifications Bachelor of Chemical Engineering HAZOP Leader Training Course (Orica) Hazardous Area Classification Extend Training ____________________________

Professional Memberships Chartered Professional Engineer & Fellow of Engineers Australia FIE (Aust) CPEng Chartered Professional Engineer & Fellow of Institute of Chemical Engineers CEng FIChemE Registered Professional Engineer Queensland RPEQ 5800 National Engineers Register 2249985 Member Australasian Institute of Dangerous Goods Consultants Fellow of Australian Institute of Energy Member Engineers Australia Chemical College Board ____________________________

Expertise Biofuels & Biorefineries - feasibility, project management, engineering design & procurement Downstream Oil Industry facility design Process engineering, feasibility studies Expert in Hazardous Area Classification, HAZOP Facilitation, Dangerous Goods

KEITH SHARP ENGINEERING MANAGER

Keith is a chartered Chemical Engineer and Fellow of Engineers Australia and IChemE. He has a balance of operations, design and project management experience built up over 30 years in the Oil Industry including 10 years with Mobil Oil Australia in a variety of project engineering and operational positions. He is an expert in the design of fuel facilities from major Oil terminals to Defence Force, aviation, mining and commercial applications. He is an experienced HAZOP facilitator, an expert in hazardous area classification and has also worked extensively with biofuels storage and blending systems. Keith is a member of the Australasian Institute of Dangerous Goods Consultants and is currently a member of the Engineers Australia Chemical College Board.

RELEVANT PROJECT EXPERIENCE

o Dalby Bio-Refinery – 76MLpa sorghum to ethanol– Lead process engineer FEED and detailed design $100M

o Austcane (proposed sugar cane to ethanol Plant) – Lead Process Engineer FEED, technology integration $200M

o Primary Energy (proposed ethanol plant with Biodigestion, Power Generation and Fertiliser production) - Lead process engineer FEED and technology integration $200M

o BP Bitumen Blowing Unit Bulwer Island: Lead Process Engineer – P&ID’s, heat balance & thermal design

o Park Fuels Newcastle Terminal - new Terminal 5 tanks, 2 bay gantry wharf line ($30M)

o Neumann Petroleum 15ML Tank, Wharf Line, pigging system, design & certification ($30M)

o Shell Pinkenba Tank 30 bitumen import facility – design including hot oil heater, heat exchangers, plant integration

o Ethanol and biodiesel storage and blending systems – various oil terminals and mines

o Shell Pinkenba Lubricant Import Terminal – 37 tanks, design ($16M)

o Caltex Mackay Terminal expansion –2 x 27ML tanks, additional gantry bay, pumps and wharf line

o Numerous AS1940 compliance audits

o Shell Townsville bitumen plant conversion to import terminal

o Shell Adelaide Bitumen: Lead Engineer – Upgrade including hot oil design, heat exchangers and piping

o Amberley Air Force Base A330 AAR hydrant system & F-111 jet engine test facility number 2 – design

o Numerous regional Airport Tank Farms and including Townsville, Broome, Wellcamp, Archerfield, Moorabbin

o Darwin Navy Base New Tank and Wharf Refuelling and Defueling Facilities

o Mining Fuel Farms and Workshop Lubricant Reticulation – 45 mines nationally including BHP Billiton / Rio Tinto / Anglo Coal / Alcoa / Comalco

APPENDIX B

Port of Newcastle Lease Area - State Environmental Planning Policy (Three

Ports) 2013 Lease Area Map

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Appendix B 12