Note: On 4 July 2020, the Environment Protection Authority issued Notice No. 20204434 to repeal this Management Order.
Environment Protection Authority
Management order
(Section 14 of the Contaminated Land Management Act 1997)
Order Number 20131408; Declaration Number 21089; Area Number 3183
Service: By Registered post
Orica Australia Pty Ltd (ACN 004 117 828)
Attention:
The Proper Officer
1 Nicholson Street
East Melbourne
Victoria 3002
A. Orica Australia Pty Ltd (ACN 004 117 828) (Orica) operates 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 (from 2003), Industrial Chemicals Limited (from 2002) and Incitec Ltd, a subsidiary of Orica IC Assets Pty 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. Up until 1995 effluent from a scrubber in a ground storage tank of approximately 12,000 tonnes capacity was discharged into subsurface soil via an agricultural drainage system during power failures to the site.
D. Groundwater is contaminated with ammonia at concentrations 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 ammonia are reported in Kooragang Island Groundwater Monitoring Results – Ammonia and Arsenic prepared by Orica Australia Pty Ltd dated 25 February 2008. Nitrate and nitrite concentrations in groundwater exceed ANZECC/ARMCANZ 2000 default trigger values for the protection of aquatic ecosystems and are attributed to the nitrification of ammonia within the plume as detailed in a report titled Annual Ammonia Groundwater Monitoring, December 2011, Orica Kooragang Island prepared by URS dated 31 March 2012.
E. Nutrients (specifically total ammonia and nitrate) have migrated off the site in groundwater and may continue to migrate. The contaminated groundwater has the potential to impact on the quality of the waters and sediment of the Hunter River.
F. 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.
G. 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 control activities. The proposal was completed on 8 December 2006.
H. Source control activities undertaken at the site in 2005 included the connection of the ammonia scrubber system to the site effluent systems.
I. 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 and monitoring of the migration of ammonia in groundwater.
J. 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 voluntary remediation proposal that had not been completed on 1 July 2009 was taken to be an approved voluntary management proposal (VMP) for the purposes of the current Act. This proposal was completed on 13 December 2010.
K. A conceptual site model was prepared dated 29 November 2013 which identified the source, nature and extent of the nutrient contamination, gaps in existing data and potential exposure pathways to the contamination.
L. The objective of this order is to set out a framework to mitigate the risks associated with nutrient contamination (specifically total ammonia and nitrate) which is identified in the declaration and to prevent the further migration of the nutrient contamination onto adjoining land and into the adjacent Hunter River. Prior to the making of this order, the EPA considered all submissions made as to whether an order should be issued.
M. 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 nutrient contamination of the land because it carried on activities on the land that utilised ammonia and it caused the contamination by its operation of the ammonium nitrate facility which leaked ammonia into the soil and groundwater. I determine Orica is the appropriate person to be the subject of this order.
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 ammonia at concentrations exceeding the Australian and New Zealand Conservation Council (2000) guidelines for the protection of aquatic ecosystems;
· Ammonia contaminated groundwater has migrated off the site and may continue to migrate. The contaminated groundwater has the potential to impact the quality of the waters and sediment of the Hunter River; and
· There are potential human and biota exposure pathways to the contaminants.
Under section 14(1) of the Act, I, Craig Lamberton, direct Orica Australia Pty Ltd (ACN 004 117 828) to do each of the following in relation to the Land:
1. Undertake Source Control Works
Orica Australia Pty Ltd must provide an annual report on progress made in source control works to reduce or eliminate further aqueous ammonia, ammonium nitrate and other sources of nutrients at the site.
This report must be submitted to the EPA annually commencing on 31 March 2015 and continuing until 31 March 2018, for the preceding calendar years activities.
2. Delineation of Nutrient Contamination and Evaluation of Ecological Risk
Orica must implement actions from the Conceptual Site Model, November 2013, in relation to closure of data gaps for delineation of the extent of nutrient contamination and evaluation of risks to the receiving environment as follows:
a) Submit a workplan for the delineation investigations and ecological risk evaluation to the EPA by 31 May 2014; and,
b) Upon EPA approval of the workplan (including any changes as part of the EPA review process), implement the workplan and submit required deliverables in accordance with approved workplan.
3. Continue with Ongoing Groundwater Monitoring
Orica must develop a site-wide groundwater monitoring program (the Plan) for nutrient contamination and submit the Plan to the EPA for approval. The Plan shall include as a minimum:
a) Sampling from selected sentinel groundwater monitoring wells onsite and offsite on a six monthly basis;
b) Sampling of any seepage at selected locations at the Kooragang Island Peninsula adjacent to the site on a six monthly basis (sampled on an outgoing tide);
c) Analysis of all groundwater and seepage samples for ammonia, oxidised nitrogen (nitrate plus nitrite), total nitrogen (ammonia plus oxidised nitrogen) and total inorganic nitrogen; and,
d) Reporting of groundwater monitoring events within eight weeks of sampling with reports submitted to the EPA. The report should identify sample concentrations exceeding ANZECC/ARMCANZ trigger values for the protection of 95% species in marine water and concentrations exceeding ANZECC/ARMCANZ default trigger values for slightly disturbed ecosystems and these concentrations should also be clearly identified on site plan/s.
The Plan must be developed by 30 June 2014 and describe the activities to be undertaken until 30 June 2018. The plan may be varied by Orica from time to time with EPA approval.
4. Update of Environmental Management Plan
The Environmental Management Plan must be updated to address the risks presented by nutrient contamination (ammonia, nitrate and nitrite) to offsite receptors and should include the following as a minimum:
· Names and details of persons to be contacted, including Orica personnel and emergency authorities in the event of any offsite environmental incident arising from nutrient contamination; and,
· Procedures to be implemented in the event of any nutrient contamination encountered in soil and groundwater.
The updated Environment Management Plan must be provided to the EPA by 30 September 2014.
5. Communications Strategy
Prepare and provide to the EPA a communications strategy to ensure key stakeholders are kept informed on the progress of works under this Management Order. The communications strategy must include:
· Identification of key stakeholders including the Orica Kooragang Island Community Reference Group (CRG), industrial neighbours, Newcastle City Council and neighbouring communities;
· Utilisation of a range of different communication measures to maximise access to information; and,
· Scheduled communication activities to update stakeholders of progress at regular intervals.
The communication strategy must be submitted to the EPA by 30 June 2014 and must describe the activities to be undertaken until 30 June 2018.
6. All submissions to the EPA must be provided to:
Manager Contaminated Sites, NSW EPA
PO Box A290, Sydney South, NSW 1232.
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 (see below).
8. Public access to information
Make available for inspection by any person, free of charge, any report on the action taken under the management order, and provide a copy of such a report to any person for a reasonable fee.
Timing of the 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.
|
Item |
Action |
Completion Date |
|
1. |
Undertake Source Control Works for Ammonia |
Updated on an annual basis commencing 31 March 2015 |
|
2. |
Implementation of commitments in the workplan (see below) |
To commence within eight weeks of EPA agreement with the workplan and proceed in accordance with the workplan schedule. |
|
3. |
Undertake groundwater monitoring in accordance with the Groundwater Monitoring Plan |
Every six months |
|
4. |
Implement activities in the communication strategy |
In accordance with communications strategy schedule |
Timing of the submissions 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.
|
|
Report |
Submission Date to EPA |
|
1. |
Annual report on source control works |
31 March 2015 31 March 2016 31 March 2017 31 March 2018 |
|
2. |
Workplan detailing nutrient delineation investigations and ecological risk evaluation |
31 May 2014 |
|
3. |
Groundwater monitoring plan |
30 June 2014 |
|
4. |
Groundwater Monitoring reports |
Provided every six months and within eight weeks of sampling event |
|
5. |
Update of Environmental Management Plan |
30 September 2014 |
|
6. |
Communications Strategy |
30 June 2014 |
[Signed]
CRAIG LAMBERTON
Director Hazardous Incidents and Environmental Health
Environment Protection Authority
(by delegation)
Date: 29 April 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.
Note: All references in the EPA's contaminated sites guidelines to the Australian Water Quality Guidelines for Fresh and Marine Waters (ANZECC, November 1992) are replaced as of 6 September 2001 by references to the Australian and New Zealand Guidelines for Fresh and Marine Water Quality (ANZECC and ARMCANZ, October 2000), subject to the same terms.
National Environment Protection (Assessment of Site Contamination) Measure 1999
(I) Schedule A
(II) Schedule B -Guidelines
(1) Guideline on Investigation Levels for Soil and Groundwater.
(2) Guideline on Data Collection, Sample Design and Reporting.
(3) Guideline on Laboratory Analysis of Potentially Contaminated Soils.
(4) Guideline on Health Risk Assessment Methodology.
(5) Guideline on Ecological Risk Assessment.
(6) Guideline on Risk Based Assessment of Groundwater Contamination.
(7a) Guideline on Health-Based Investigation Levels.
(7b) Guideline on Exposure Scenarios and Exposure Settings.
(8) Guideline on Community Consultation and Risk Communication.
(9) Guideline on Protection of Health and the Environment During the Assessment of Site Contamination.
(10) Guideline on Competencies & Acceptance of Environmental Auditors and Related Professionals.