Note: On 28 December 2017, the Environment Protection Authority issued notice No. 20174430 to amend this Order.
Environment Protection Authority
Management order
(Section 14 of the Contaminated Land Management Act 1997)
Order Number 20131407; Declaration Number 21089; Area Number 3183
Service: By Registered post
Orica IC Assets Pty Ltd (010 767 263)
Attention:
The Proper Officer
Level 3, 1 Nicholson Street
East Melbourne
Victoria 3002
A. Orica IC Assets Pty Ltd (ACN 010 767 263) (Orica) previously known as Incitec Ltd operated an ammonium nitrate facility at Lot 3 DP 234288 known as 15 Greenleaf Road, Kooragang Island NSW (the site). The site commenced production of ammonium nitrate for the purpose of fertiliser manufacture in 1969 and has operated under a number of related entities including Orica Australia Pty Ltd (from 2003), Industrial Chemicals Limited (from 2002) and Incitec Ltd.
B. The site is currently owned by Orica IC Assets Pty Ltd (ACN 010 767 263).
C. Ammonia is produced on the site by reforming natural gas to produce hydrogen which is then combined with nitrogen (from air) to produce ammonia.
D. From approximately 1969 until 1994 a solution containing arsenic was used to scrub carbon dioxide from the process gas stream prior to the production of ammonia. During this period spent arsenic waste was disposed of into an arsenic disposal pit in the north-west of the site.
E. Groundwater is contaminated with arsenic at concentrations significantly exceeding the trigger values for the protection of aquatic ecosystems in the Australian and New Zealand Guidelines for Fresh and Marine Water Quality, Australia and New Zealand Environment and Conservation Council and Agriculture and Resource Management Council of Australia and New Zealand (ANZECC/ARMCANZ 2000). Concentrations of arsenic are reported in Kooragang Island Groundwater Monitoring Results – Ammonia and Arsenic prepared by Orica Australia Pty Ltd dated 25 February 2008. Concentrations of arsenic in the Hunter River were reported below low reliability marine trigger values in Investigation of Arsenic Levels in the Hunter River at Kooragang Berths 2 and 3 prepared for Orica Australia Pty Ltd dated 2 July 2013.
F. Arsenic has migrated off the site in groundwater and may continue to migrate. The contaminated groundwater has impacted on the quality of waters and has contaminated other landholdings.
G. On 16 November 2005 the Environment Protection Authority (EPA) declared the site as a remediation site (Notice No. 21089) under the Contaminated Land Management Act 1997 (the Act) then in force.
H. On 5 December 2005 the EPA agreed to a Voluntary Remediation Proposal (Notice No 26061) by Orica under the Act then in force. The principal features of the proposal included the implementation of source remediation activities, assessment of groundwater remediation options and a desktop study and bench scale trials of Permeable Passive Reactive Barrier (PPRB) material and techniques. The proposal was completed on 8 December 2006.
I. Source remediation activities undertaken at the site in 2005 included the removal of arsenic contaminated soil and sludge from the former sludge disposal pit to the depth of the groundwater table, chemical stabilisation of removed material as required and offsite disposal of the treated waste at a licensed landfill.
J. On 8 December 2006 the EPA agreed to a second Voluntary Remediation Proposal (Notice No 26093) by Orica under the Act then in force. The principal features of the proposal included the preparation of an environmental management plan, monitoring of the migration of arsenic in groundwater, validation of a conceptual site model and implementation of a pilot trial to assess the practicability of arsenic immobilisation/ adsorption.
K. On 19 November 2008 the EPA agreed to a third Voluntary Remediation Proposal (Notice No 26109) by Orica under the Act. The proposal involved further work to develop two short listed options for remediation of the site, which were in-situ treatment of groundwater and extraction/ex-situ treatment of groundwater. The principal features of the proposal were the assessment and design of a hydraulic containment and groundwater treatment system to reduce the transport of arsenic in groundwater and assessment of in-situ treatment options.
L. On 1 July 2009 the Contaminated Land Management Amendment Act 2008 commenced and substituted new provisions for the management of contaminated land that are currently in force. The declaration of the site as a remediation site in 2005 is deemed to be a declaration of the site as significantly contaminated land under the current Act. Further, the second and third voluntary remediation proposals that had not been completed on 1 July 2009 were each taken to be an approved Voluntary Management Proposal (VMP) for the purposes of the current Act. These two proposals were both completed on 13 December 2010.
M. A report titled Feasibility study for ex-situ arsenic treatment dated 28 December 2009 was prepared on behalf of Orica. A report prepared on behalf of Orica titled Treatability Study for In-situ Arsenic Removal from Groundwater dated 23 December 2009 recommended field trials of in-situ treatment.
N. On 13 December 2010 the EPA approved a fourth VMP (Notice No 20101723) under the Act. The VMP involved a field trial of in-situ geochemical fixation of arsenic in groundwater.
O. A report titled Final Performance Monitoring Report, Field Trial for In-situ Geochemical Fixation of Arsenic; Kooragang Island dated 30 April 2013 was prepared on behalf of Orica.
P. A report titled Arsenic Groundwater Remediation – Feasibility Assessment dated 30 August 2013 (Orica 2013) was prepared by Orica to re-assess the feasibility of five short-listed options for the remediation of arsenic in groundwater at the site. The assessment included a bench-scale laboratory treatability testing program to assess the performance of zero-valent iron to treat arsenic in groundwater.
Q. As agreed with the NSW EPA, Orica engaged an independent expert to undertake a review of the process undertaken by Orica and its consultants to assess options for managing arsenic in groundwater. The findings of the report are provided in Orica Kooragang Island Groundwater Remediation Feasibility Assessment, Independent Review of Assessment Process prepared by GHD dated March 2014.
R. The objective of this order is to implement remedial action that will prevent the further offsite migration of the arsenic in groundwater.
S. EPA has advised Orica of the EPA expectation that the remedial method will be a staged active intervention. Three remedial methods that have been discussed in relation to this order are a Permeable Passive Reactive Barrier (the EPA preferred approach), a barrier wall and capping to contain contaminated groundwater, and pump and treatment of groundwater (approaches suggested by Orica). The EPA has advised Orica that a provision for capital expenditure should be made for the remedial actions in the order.
T. In order to meet this objective, this order requires that Orica provide a Workplan to the EPA by 31 October 2014 that identifies the remedial method that will be implemented to remediate the arsenic in groundwater.
U. Under the Act, the EPA may issue a management order to one or more appropriate persons. The EPA may choose a person who is responsible for the significant contamination of the land as an appropriate person. Orica is responsible for the significant contamination of the land because it carried on activities on the land that utilised arsenic and it caused the contamination by its operation of the ammonium nitrate facility which leaked arsenic into the soil and groundwater. I determine Orica is the appropriate person to be the subject of this order.
V. Prior to the making of this order, the EPA considered all submissions made as to whether an order should be issued.
Land to which this order applies
This order applies to the site as identified on the declaration of remediation site number 21089 made on 16 November 2005 as listed in the following table (the Land):
|
Description |
Address |
|
Lot 3 DP 234288 |
15 Greenleaf Road, Kooragang Island NSW |
The EPA declared the contamination of the Land to be significant enough to warrant regulation. The EPA continues to believe that the Land is contaminated and that the contamination is significant enough to warrant regulation. In particular:
· Groundwater is contaminated with arsenic at concentrations significantly exceeding the ANZECC/ARMCANZ 2000 guidelines for the protection of aquatic ecosystems;
· Arsenic contaminated groundwater has migrated off the site and may continue to migrate. The contaminated groundwater impacts upon the quality of the waters and is contaminating adjacent land; and
· There are potential human and biota exposure pathways to the contaminants.
Under section 14(1) of the Act, I, Erwin Benker, direct Orica Australia Pty Ltd (ACN 004 117 828) to do each of the following in relation to the Land:
1. Implement works that will prevent, to the extent required by Action 1c, the further offsite migration of arsenic in groundwater. In planning the works, all necessary steps are to be taken to ensure the remedial work is implemented and commissioned by 31 December 2017.
a) Prepare and submit a plan (workplan) to the EPA which clearly identifies the remedial method that will be implemented at the site and describes activities to:
i. Undertake investigations and trials of remediation works to develop the design, construction and performance specifications of a remediation system or process to meet the remedial outcome described in ‘1.’ above. These investigations and trials may include aquifer pump tests and groundwater modelling.
ii. As necessary, undertake treatability trials to confirm the design, construction and performance specifications to meet required treatment criteria, and/or management of waste streams. These works may include bench scale and pilot scale testing of component parts of the works, and of any waste management.
iii. Undertake investigations to support the development of performance specifications and remediation endpoints of the proposed works.
iv. If necessary, undertake a field trial of the proposed remedial works based on the outcomes of tasks (i) and (ii) above.
b) Identify performance criteria for the identified remedial method and submit the performance criteria to the EPA;
c) Upon the agreement of the workplan and performance criteria by the EPA, implement the approved workplan and submit the required deliverables in accordance with the schedule in the approved workplan.
d) As appropriate, formally request landowner consent for access to relevant off site areas required for proposed works. This may include in-principle agreement with finalisation of the agreement after detailed design of the proposed works is complete.
e) Prepare and submit to the EPA for approval a Remediation Action Plan (RAP) which is in accordance with the remedial method identified in the approved workplan and which documents the remediation strategy, system design, implementation approach, identification of regulatory licences, approvals and remediation end points.
2. Implement the proposed remediation works
a) Apply for necessary approvals from the relevant consent authorities for the proposed works. This may include approval from Newcastle City Council, NSW Office of Water and NSW EPA.
b) Implement the proposed works in accordance with the design specifications and requirements detailed in the approved RAP.
c) Prepare a Long Term Environmental Management Plan (LTEMP) for any operational phase of the proposed works and provide a copy to the EPA. The LTEMP will incorporate any long-term requirements for operation and maintenance, monitoring and restrictions on site activities in the vicinity of the system or process. The LTEMP should be revised based on system or process operation and monitoring results on a periodic basis with EPA approval.
d) Operate and maintain the installed system or process in a manner to achieve the remediation objective and in accordance with the LTEMP.
e) Prepare and submit to the EPA a validation report, on completion of the works, demonstrating that the proposed remediation infrastructure has been installed to the design specification.
3. Groundwater monitoring
Develop a Groundwater Monitoring Program (‘GMP’) for arsenic contamination, submit the GMP to the EPA and implement the GMP upon receipt of EPA approval. The GMP will fit within the framework of the Long Term Environment Management Plan (LTEMP) described in item 2(c). The GMP shall include as a minimum:
a) Sampling of accessible sentinel groundwater monitoring wells onsite and offsite on a bi-annual basis for arsenic.
b) Analysis of all groundwater samples for arsenic.
c) Results of sampling to be provided to the EPA within eight weeks of completion of the sampling.
d) Preparation of an annual summary report of the bi-annual sampling, including commentary on any trends observed, implication of those trends on the proposed remedial works and comparison of the results to ANZECC/ARMCANZ trigger values or other criteria agreed by the EPA. The report is to be submitted to the EPA within twelve weeks of completion of the second bi-annual sampling round.
e) Review the GMP in light of sampling completed every two years, and advise the EPA of any recommended changes to the GMP.
The GMP may be revised as required, with EPA approval.
4. Update of Arsenic Environmental Management Plan
The existing Arsenic Environmental Management Plan must be updated prior to the commencement of operation of the remediation system to address risks to affected land users, landowners and stakeholders and should include the following as a minimum:
a) Names and contact details of persons to be contacted including Orica personnel and emergency authorities in the event of any offsite incident;
b) Names and contact details of persons to be contacted in the event of any emergency onsite or offsite; and
c) Procedures to be implemented in the event of arsenic contamination encountered in soil or groundwater offsite.
5. Update Communication Strategy
Prepare and provide to the EPA a communication strategy to ensure key stakeholders are kept informed on the progress of the remedial work under this Management Order. The Communications Strategy must include:
a) Identification of key stakeholders, including the Orica Kooragang Island Community Reference Group (CRG), industrial neighbours, Newcastle City Council (NCC) and neighbouring communities.
b) Utilisation of a range of different communication measures to maximise access to information; and,
c) Scheduled communication activities to update stakeholders of progress at regular intervals.
6. All submissions to the EPA must be:
· posted to: Manager Contaminated Sites
PO Box A290, Sydney South, NSW 1232, and
· emailed to: niall.johnston@epa.nsw.gov.au
7. Carry out directions consistent with EPA Guidelines
Carry out the actions in this order consistent with any relevant guidelines made or approved by the EPA under s 105 of the Act.
8. Public access to information
Make available for inspection by any person, free of charge, any report on the actions taken under the management order, and provide a copy of such a report to any person for a reasonable fee.
9. Timing of the submission of reports required by this Order
The reports required by this order must be submitted to the EPA in accordance with the following table as may be varied from time to time by the EPA in writing.
|
Item |
Report |
Submission Date to EPA |
|
1a |
Prepare and submit Workplan that identifies the remedial method for EPA approval |
31 October 2014 |
|
1b |
Prepare and submit performance criteria |
21 November 2014 |
|
1e |
Prepare and submit RAP |
30 June 2016 |
|
2c |
Prepare LTEMP |
Two months prior to planned completion date for the installation of the proposed system or process. |
|
2e |
Prepare and submit to the EPA a validation report |
30 June 2018 |
|
3 |
Develop Groundwater Monitoring Plan (GMP) for EPA approval |
31 August 2014 |
|
3c |
Results of bi-annual sampling |
Within eight weeks of the completion of sampling |
|
3d |
Summary report of the bi-annual groundwater sampling results including commentary |
Annually (within twelve weeks of the final sampling event for each year) in accordance with the GMP. |
|
4 |
Updated Arsenic EMP |
Two months prior to the commencement of operation of the proposed system or process. |
|
5 |
Updated Communications Strategy |
31 December 2014 |
10. Timing of actions required by this Order
The actions required by this order must be completed in accordance with the following table as may be varied from time to time by the EPA in writing.
All necessary steps are to be taken to ensure the remedial work is implemented and commissioned by 31 December 2017.
|
Item |
Action |
Submission Date to EPA |
|
1c |
Implementation of the workplan |
To commence within eight weeks of EPA approval of the Workplan in accordance with the Workplan schedule. |
|
1d |
Formally request in-principle landowner consent for long-term access for construction, operation and maintenance of system. |
30 December 2014 |
|
2a |
Lodge the necessary supporting documentation to apply for approval from relevant consent authorities |
31 October 2016 |
|
2b |
Undertake proposed works in accordance with design specifications and requirements in the RAP |
Within 12 months of receiving regulatory approvals and landowner consent for the work |
|
2d |
Operate and maintain the installed system or process in a manner to achieve the remediation objective and in accordance with the LTEMP |
In accordance with the LTEMP, with periodic review of operation and monitoring. |
|
3a, 3b |
Undertake groundwater monitoring in accordance with the GMP |
Every six months |
|
5 |
Implement activities in the communications strategy |
In accordance with the communications strategy schedule |
[Signed]
ERWIN BENKER
Acting Manager Contaminated Sites
Environment Protection Authority
(by delegation)
Date: 28 July 2014
NOTE:
Cost Recovery
Section 34 of the CLM Act allows the EPA to recover its costs in connection with the issue of, monitoring actions of and seeking compliance with a remediation order.
Information recorded by the EPA
Section 58 of the CLM Act 1997 requires the EPA to maintain a public record. A copy of this management order will be included in the public record.
Information recorded by councils
Section 59 of the Act requires the EPA to give a copy of this order to the relevant local council. The council is then required to note on its planning certificate issued pursuant to s 149(2) of the Environmental Planning and Assessment Act 1979 that the land is currently subject to a management order. The EPA is required to notify council as soon as practicable when the order is no longer in force and the notation on the s 149(2) certificate can be removed.
Relationship to other regulatory instrument
This order does not affect the provisions of any relevant environmental planning instruments which may control the land on which the land is located or provisions of any other environmental protection legislation administered by the EPA.
Guidelines made or approved under section 105 of the CLM Act.
All the directions in this order must be carried out consistent with guidelines made or approved under section 105 of the CLM Act. See http://www.environment.nsw.gov.au/clm/guidelines.htm.
Appeals against this decision
You can appeal to the Land and Environment Court against this order. The deadline for lodging the appeal is 21 days after you were given notice of this order.