COODE  ISLAND  COMMUNITY CONSULTATIVE  COMMITTEE

Adopted Minutes

Thursday 11 July 2002

PRESENT

Robin Saunders
CICCC / Chairperson


Allen Hugli
Chief Financial Officer, Burns, Philp
&
Company Limited/CICCC
Committee


Faye Simpson
community rep./ CICCC committee


John Luppino
City of Maribyr, GM City Dev /committee


Carlo Fasolino
Op. Manager Terminals P.Ltd./committee


Deborah Macfarlane
community rep./ committee


Michael Ragen
Cash Controller, Burns, Philp & Co
/
CICCC Committee

Ian Thomas
community rep./ CICCC committee

Dr Peter Brotherton
Combined Enviro. Groups / committee


Jeff Hibbert
Terminals Pty Ltd


Michael Isaachsen
community rep./ committee


Trevor Perkins
MF&ESB / ex off comm


Geoff Millard
Terminals Nat. Safety & Env.
Manager


Jim Clements
Environmental Protection Authority


Wayne Bergin
Environmental Protection Authority


Bronwyn Brookman Smith
MH Div
/
WorkSafe


Sally Lonsdell
Environmental Protection Authority


Michelle Thomson
DNV


Michael Catchpole
Director Public Affairs / PACIA


Zoe Wood
Regulatory Affairs Officer / PACIA


Vanessa Richardson
minute taker


 

 

ITEM 1. WELCOME BY THE CHAIR

* Robin welcomed the committee members and
other people attending the CICCC.

 


ITEM 2. APOLOGIES



* Apologies were received from George
Horman, Cameron Fitzgerald, Bill Horrocks and Quentin Cooke.

 

ITEM 3. CONFIRMATION OF THE DRAFT AGENDA

* The draft agenda was adopted.

 

ITEM 4. BRIEF REPORT FROM AGENCIES AND
TERMINALS ON KEY ISSUES


* Wayne said that the EPA received
3 reports from Terminals this month. They are:

• The Environmental Management Plan
Amendment

• The Tank Integrity Report

• The Storm Water Management Plan

* Quentin attended the CICCC HSE Subcommittee
meeting this month.

* The EPA have made several prosecutions of
other companies this month. They include the following-

• On 21 June 2002 the owner of the cargo
carrier MV Humboldt Current was convicted and fined $25,000 after pleading
guilty to the discharging oil to the Yarra River on 24 October 2000. The
ship’s master was also fined $15,000 without conviction.

• On 27 June 2002 Western Recycle Pty Ltd
was convicted, after pleading guilty to one charge of air pollution in
relation to an incident which occurred between 15 September and 6 October
2001. Under alternative sentencing provisions of the Environment Protection
Act 1970 the defendant was ordered to pay $35,000 to Brimbank City Council
to fund water and air quality monitoring programs. In addition the defendant
was ordered to publish a notice of the results of the prosecution in the
Age, Herald Sun, Western Times and Financial Review.’

* Bronwyn reported that Terminals submitted
their Safety Case to WorkSafe on the 28 June. It is now going through the
“serious deficiency” check.. The following organisations with MoU’s
with WorkSafe have expressed interested in assessing the plan too – MFESB,
EPA, OCEI and OGS.

* Field visits were made to the site on 4
June to review compliance for the Carcinogenic License conditions and on the
2 July to review the action items of the previously held Dangerous Goods
Audit.

* Marg Donnan (Operations Manager, Major
Hazards) is leaving WorkSafe after spending 26 years with WorkSafe and its
predecessor departments. She has accepted a new working position as
Regulatory Affairs Manager with PACIA.

ACTION. Robin to write to Marg Donnan on
behalf of the CICCC to thank her for her support to the Committee.

 

* Deborah said that she could not find any
reference in the Terminals Safety Case document about the possible
consequences of a terrorist attack on Coode Island .

Geoff said it was covered in Section 2 and
in the Hazard Register.

* Trevor reported that this month the
MF&ESB have been reviewing Safety Cases from various companies
including the Terminal’s Safety Case document. They have also been
looking at Terminals Emergency Plans.

* Deborah asked if fire-fighting foam was
stored and available in the port area.

Carlo said that 22,000 litres is kept in
storage at Maribyrnong Berth No1.


Faye asked about the types of
interactions that might be expected to occur if during a fire the water and
foam used for fighting a fire, interacted with the chemicals stored at the
Terminals site?

Trevor said that the responsibility for
knowledge about those possible interactions is left with the companies. They
ensure that they have internationally acceptable products on site to fight
the fires. He said that the MF&ESB use ATC FFF Concentrate which is
compatible with many products. This is used in conjunction with back up fire
fighting products stored on the sites.

Carlo said that Terminals use ATC FFF and it
is also used at the Maribyrnong No1 Berth.

* Allen said that 16 parties have shown
interest in the sale of Terminals P/L. Some have done due diligence
assessments. The due diligence tests involve detailed assessment of the
legal, financial and environmental perspectives of the company. They are now
negotiating prices, warranties, indemnities, etc. In answer to Robin’s
question Allen said that the reserve price has been exceeded but that it may
take a further 30-60 days to finalise a sale.

* See
Attachment 1.


Carlo tabled the monthly Operations &
Occurrence Report for June 2002. He said that the Benzene emission levels
were good because the carbon Beds were being changed monthly at a cost of
$20 – $24 thousand per month.

Ian said that he wondered if the
improvements warranted the huge financial costs.

Deborah said that as a resident in the area
she was happy to see that the benzene emissions had been lowered since the
carbon beds have been changed each month.

Faye said it has been an improvement for the
health of everyone in the state.

 

ITEM 5. THE TERMINALS’ PTY LTD ENVIRONMENT
IMPROVEMENT PLAN (EIP) – FURTHER DISCUSSION.


* Robin said that all CICCC members have
seen a copy of the EIP plan drawn up by Terminals. He said that its purpose
is to be used as a tool to track the ongoing health and safety of the
community. It provides an agreed list of what needs to be improved on the
Terminals site and it provides a timetable showing the dates by which the
improvements will be achieved. At any point in time it will show how any one
particular item might be contributing to a health risk. Robin said that he
has asked George to change the layout of the plan so that
additional columns were shown (similar to an EMP) detailing the
parameter(s) that will be monitored, the present level, the level
anticipated after the improvement, and the monitoring frequency.

ACTION. CICCC members will read the document
in detail for discussion at the next meeting.


* Ian
said that the document should have been discussed by the CICCC and then
drafted over a period of 6 months and not have been initially drafted just by
Terminals as was the case with this current draft.


Robin said that the EPA requested Terminals
submit it by 30 June 2002
in
accordance with their Licence.. The EPA is treating the document as a draft
only, until the CICCC
have
had input into its development and signed off with Terminals.

Peter said it is an important document that
will require 6 months work to complete properly.

Jim agreed and said that these document have
sometimes taken up to 3 years to complete. He said that there are 12,000

EPA
licensed sites
in the State and about 50 are developing EIP’s which are counter signed by
the community.



ACTION. Jim will forward the EIP Information
Bulletin to Vanessa for circulation as an attachment to the minutes.


*Robin
asked if the prospective buyers would be obliged to uphold the content of
the Terminals EIP?

Allen said that all the prospective buyers
have seen the EIP and they are bound by it.

Jim said he has found that most companies are
committed to environmental issues. Following the sale of Terminals the EPA
will work with the new owners to further develop the EIP.

* Faye said that the copy she read was
formally signed and she asked if the signatures indicated that the plan was in
fact a final document.

Carlo said that the signatures were Terminals
staff signatures only.

Jim said that the EPA would not approve it as
a final document until the community have discussed and added to it. It will
not have any standing until that time.

Deborah said she felt uneasy because the new
owners were not bound in any way to proceed with the EIP.

Ian suggested that the document title be
changed to ‘Draft’ EIP.

Robin suggested that the CICCC discuss the EIP
in about 6 detailed chunks, starting this process at the next meeting in
August.

Allen said that the process could be restarted
from scratch (as suggested by Ian). Ian disagreed and said that as a draft
exists, it would be best to use it as a starting point rather than starting
from scratch which would have been more ideal.

ACTION. Carlo and George will divide the EIP
into workable sections and they will present the first section for discussion
at the next CICCC meeting. A suggested list of workable sections, and a
discussion paper for the first section will be circulated 2 weeks before the
next CICCC meeting.

ACTION. Jim said that the EPA will write a
letter to Terminals, thanking them for the EIP and stating that they expect
community consultation to commence once the new owners are decided. The joint
signatures of the company and the community are to appear on the final
document.

 

 

ITEM 6. DRAFT SAFETY CASE REVIEW


Report By Terminals Including Combustors
(Geoff Millard)

See Attachment 2.

* Geoff said that the Safety Case was
submitted to WorkSafe on 28 June 2002. It consists of 500 pages in 2 volumes
with a CD-rom containing a Hazard Register of 243 items. A stored item is
deemed a Major Hazard when it exceeds a tonnage threshold. There are 49
major hazard facilities in Victoria. The largest tanks on the Terminals site
at Coode Island can hold 6.5 thousand cubic metres of product.

* The Safety Case looks at the possible ‘serious
irreversible incidents’ (low frequency occurrences like loss of life or
loss of limbs) and the possible ‘immediate effects’ (short term). The
regulations ‘are very onerous, so we have left no stone unturned,’ he
said.

A mixed group spent 12 days workshopping to
draw up a list of

• the potential hazards

• how the hazards are best detected

• how to best mitigate the hazard which
includes assessing the controls already in place and adding to them if
necessary.

The group included representatives from
Terminals staff, Terminals customers and DNV as the independent risk
professionals. WorkSafe representatives observed several of the workshops.

Deborah asked if consideration had been
given to the consequences for the Terminals site if an incident originated
on a neighbouring site. Could any knock on effects become ‘serious
irreversible incidents’ on the Terminals site?

Geoff said that possibility had been
considered by the workshop group but further

work is needed on that section of the
report. Further discussions about this possibility will be conducted at the
Coode Island Users Group with Marstel P/L and P&O Ports P/L and all the
other Coode Island neighbours as required.

* Ian said that he is sceptical that DNV
were included as the independent risk assessors in the work shop group. He
said it was DNV who 2 years ago were employed by Terminals to make a risk
assessment of the new design plan for the Terminals site. They concluded
that there would be no increased risk to the community, with the propylene
tanks were either on or off the Terminals site. Ian said that ever since he
has been disagreeing strongly with that assessment.

Robin said that following further
discussions with DNV Peter Reddie was happy with the DNV’s assessment.
WorkSafe have also accepted DNV’s assessment.

* Deborah said that since the September 11
incident in New York the threat of terrorist attack is something that the
community is concerned about. She asked if the workshop group had considered
the possibility of terrorist activity resulting in the contamination of the
river (from the storage tanks on the Terminals site)?

Geoff said that the issue had been
considered as a loss of containment problem. How that was assessed was by
considering the following key points

• how to eliminate the incident
occurrence

• how to prevent the incident

• how to detect that an incident has
occurred

• how to reduce the consequences and
possible harm associated with such an incident.

He said that there are a few levels of
control in place before a possible contaminant can reach the water.
Therefore the possibility that the loss of tank contents might reach to the
river had not needed to be assessed. Some of the levels of control include

• security guard restricted public
access to Coode Island

• fencing around the perimeter of the
Terminals site

• locks on tank valves

• guard patrols on the site

• bunds which contain any leaks and
spillages, etc.

In answer to Robin’s question Geoff said
that the greatest terrorist risk that the group had considered was that of
trespassers themselves being hurt on the Terminals site. Geoff suggested
that a terrorist is more likely to attack another site in the state – one
where a large number of people might be adversely affected (like a train
station).

In answer to Deborah’s question about the
consequences for the community if an aeroplane were to be crashed into the
Terminal’s site Geoff said that the risk of such an incident occurring has
been considered.

Robin asked about the size of the area that
might be incinerated should such an incident occur. Geoff said it would
include the berth area. General discussion on the potential impacts of such
an incident followed, which may be significantly greater or may be similar
to the impacts already considered in the draft Safety Case. In any event,
the terrorist aircraft scenario will be investigated by Terminals.

Trevor said that the area, which could be
exposed to moderate danger if such an incident were to occur, was to a
distance of 1350metres around the Terminals site.

Peter asked what would happen if the bunds
lost their capacity to contain the leaking contaminants?

Geoff said that the critical control is the
integrity of the bunds, but should they fail then the site also has sub
bunds and perimeter bunds.

* Ian said that possible shipping incidents
should have been included in the report.

In answer Geoff said that only the major
incidents resulting in an immediate and substantial consequential threat to
life and health had to be covered in this document. They also looked at
other contributing factors should an incident occur, like the differences in
weather conditions.

* Faye observed that the working group had
considered 3 scenarios in detail. Faye and Peter asked why an upstream
scenario had not been considered as it is considered in the industry as a
standard hazard that can occur?

Geoff said that the consequences for 243
possible on site hazards had been considered by the Safety Case working
group. WorkSafe had then asked the working group to pick a small group of
them only as detailed working examples that WorkSafe can then use as a check
for all the other identified hazards.

* Geoff suggested that the CICCC HSE sub
committee might look in detail at the possible hazards posed by trespassers
on the Terminals site.

Robin reminded the committee of the Worst
Case Scenario work that has been put on hold because of
the uncertainty about product responsibilities arising from the Marstel
proposal. He suggested that it might be a good time to finish that work now.

Faye suggested that the ‘off site
consequences section’ might cover the possible upstream incidents.

ACTION. At the next meeting Terminals will
report on the possible consequences of the crashing of a 747 aeroplane on the
Coode Island Terminals site.



Robin asked if there would be off site toxic
gas effects to 1350 metres from an acrylonitrile incident?

Geoff said that there would be respiratory
difficulties at that distance.

Ian pointed out that the community is 800
metres from the Terminals site which indicates that they are potentially
under threat of such an incident.

190 actions (including documentation) were
identified as improvements that would further reduce the overall risk at the
facility, including 7 capital improvements that would cost approximately
$250,000 in total in addition to the new Vapour control system currently
being installed at a cost of $4.4 million.

ACTION. Terminals will table a report showing
which of the regulatory plans contains each of the 7 major capital
improvements. This list will be included in the EIP so that one document
includes all the planned changes.



* Peter suggested that a better way to
develop a Quantified Risk Assessment (QRA) is not to confine contributions
just from technical experts (as in this case) but rather include a broader
spectrum of people with different expertise to discuss what’s needed.

Geoff said that the working group had
integrated the following areas into one system

• Environmental management system

• Quality management system

• Safety management system

* He added that a community information
pamphlet is also being developed for discussion by the CICCC.

* Faye said that the conceptual plan for the
Safety Case Review was logical and well developed but that it was not
looking at the scenarios from the point of view of an outsider intruding on
the integrity of the site. The human factors and contractor safety were well
covered. She suggested that Appendices and Tables be added for reference.
She said that the use of ‘contract workers’ was a factor in the
experience of overseas human error incidents.

In answer to Faye’s suggestion Geoff said
that the possibility of Operator Error (sick or impaired) was included on
the CD rom. Terminals are planning to upgrade these crucial requirements in
the future.

Carlo said that training of operators has
been implemented for some time with new things being added to the training
as required over time. They expect to have trained and assessed all 14
operators in levels 1 to 6 (which is the highest) by 2004. WorkSafe
agreements include minimum standards of operational skill required by all
the 25 staff employed by Terminals. Staff numbers have been very consistent
with only 2 new staff members being employed in the past 9 years. Only one
casual is employed and he has also been trained and assessed.

Bronwyn said that Terminals staff have to be
trained before they can undertake certain tasks. WorkSafe does not check
compliance with this requirement on any given day. She reminded the
committee that the Longford fire incident showed that experience does not
necessarily reduce the human error factor.

Ian said he has been concerned that
management staff have left over the years. He said that Geoff was the only
remaining member of the Terminals management staff since the Coode Island
fire in
1991.

Bronwyn said that WorkSafe require Safety
Case plans because staff do change quickly in industries these days and the
plan assists continuity in quality management of the sites.

* Geoff said that they looked at the effects
of the combustors. They are potential ignition sources for the site. Lots of
checks and controls have been included in the design of their installation.
A consequence analysis was done for these rather than quantifying the risk.

* Michael asked how Terminals proposed to
inform the community should an incident occur.

Geoff said that the CICCC input is needed
for this section of the Emergency Response Plan.

Robin said that responsibility for these
decisions had been handed over to the Office of Emergency Services Committee
who were developing a plan for a workable system which would tie in with
Terminals needs for a suitable communication system.

* Michael asked Geoff how the overall safety
of the site would be affected, if the main storage areas for the materials
on the island were positioned elsewhere with a rail connection from Coode
Island?

Geoff said that it was a complicated
question. He said that intrinsically risk is reduced when inventories are
reduced, but the further movement of goods in itself posed possible
opportunities for further hazardous incidents. A full risk study would be
needed to quantify the risk levels.

Robin thanked Geoff for the presentation.

The WorkSafe Process (Bronwyn Brookman-Smith)

* See
attachment 3.



Bronwyn said that WorkSafe initially decided
on what they would expect to see in the Terminals Safety Case. She said that

five Safety Case approved licences have been granted to-date (Melbourne
Water- Christmas Hills, Australian Vinyls, New

Farm- Laverton, Orica Warehouse- Laverton and Australia Paper- Maryvale).
Marstel is refining its Safety Case outline.

Three sites in the state are below the
required threshold storage amount but WorkSafe has designated them as a
Major Hazard Facilities as they are considered to be a significant hazard.

Robin thanked Bronwyn for her presentation,
which included appeal provisions for stakeholders. He asked her who WorkSafe
saw as the stakeholders?
She said
that it depends on the grounds of the decision. A company can appeal a
negative decision at VCAT however the community cannot appeal a decision it
does not agree with.

* Deborah asked Bronwyn if updates and
amendments to company Safety Cases were also amended on the copy held at the
relevant industrial site?

Bronwyn said that the Safety Case document
is an umbrella plan that allows a company to change its systems of
operating. However if the changes affect the Safety Case then a revised
Safety Case would need to be submitted to WorkSafe.

ACTION. The WorkSafe assessor for the
Terminals Safety Case will periodically update the CICCC throughout the
assessment process.

 

Report from HSE Sub Committee (Ian Thomas)

* Ian said that the CICCC HSE Sub
Committee met and were given copies of the
Safety
Case which was discussed briefly. A further meeting is planned to discuss it
more fully when everyone has time to read the document.

 

 

ITEM 7. CONFIRMATION OF THE MINUTES OF THE
PREVIOUS MEETING

13 JUNE 2002.


* The
draft minutes were accepted with the following changes.

WorkSafe changes include minor wording changes
to Item 4 and 5 (pages 2, 3and 6)

Michael’s changes include pp5 and pp10

John’s changes pp2

Spelling of Schedden corrected (page 4),
Whitaker (page 10)

The adopted Minutes may be found on the web
site.

 

 

ITEM 8. ACTION ITEMS FROM THE PREVIOUS MEETING

8.1 Questions on the Terminals monthly
reports (Attachments to last meeting’s minutes)

None.

 


8.2 Robin to invite Ian Munro, General
Manager, Department of Innovation, Industry and regional Development to
brief the Committee.

* He was unavailable to attend tonight’s
meeting but has agreed to attend the next CICCC meeting in August.

8.3 Trevor to provide a copy of the latest ‘Emergency
Information Booklet’

* Trevor tabled an example of a booklet. He
said that the on-site diagrams now required are far more detailed. Complex
sites included overlayed plans for all the different utilities like gas,
electricity, etc. The booklet also includes the details for how to alert the
local community of an incident.

8.4 Briefing by Treasury and Finance on review
of the Safety Case Regimes (chair)

* Ian
commended Robin for raising the points he did.

8.5 Web site update (Chair)

See Attachment 5.

* The
updated CICCC History that Robin has completed is to go onto the CICCC web
page.

ACTION. Robin will add some information about
the Safety Case which Carlo will write.

Deborah said the update was very good.

 

ITEM 9. RECENT TERMINALS MATTERS – TANK
INTEGRITY REPORT, EMP AMENDMENT, STORMWATER MANAGEMENT AUDIT.

Deferred to next meeting.

 


ITEM 10. CORRESPONDENCE OUT


24/6/02 invitation to Ian Munro

 

ITEM 11. CORRESPONDENCE IN

See Attachment 6.

Melbourne Port Corporation re the MPV
Stakeholder Survey 2002 (dated 5 July 2002)

ACTION. Robin will ring MPC to confirm the
CICCC’s interest in this survey.

 

ITEM 12. FUTURE STRUCTURE OPTIONS FOR COODE
ISLAND COMMITTEE(S)

ACTION. Robin will do some further work on
this for discussion at the next meeting.


Robin congratulated John and Peter for
the work they have done on this document.

 

ITEM 13. WORKSAFE SIX MONTHLY AUDIT



See the overhead notes in the
Attachments with the CICCC June minutes.

 

ITEM 14. SOIL REMEDIATION (Quentin Cooke,
EPA)



Deferred

 

ITEM 15. AGENDA FOR THE NEXT MEETING (8 August
2002)

See the above ACTION ITEMS.

 

 

ITEM 16. OTHER BUSINESS

16.1 Re Ian’s Appeal to VCAT about the
Marstel Works Approval


* Ian reported that he and his wife had
met with Paul Jerome, Executive Director Planning, at the Department of
Infrastructure who was handling the “call-in” of the appeal to the
Marstel Works Approval for the Minister for Planning. Ian said that the
meeting was very purposeful. He said that Paul showed concern when told that
the EPA buffer zones were breached on occasions.

 

16.2 Attendance at the next CICCC
meeting.


* Ian reported that a former work colleague
of Ted Towson at the Port Emergency Service could potentially be interested
in the Committee. Robin suggested that Ian encourage him to attend CICCC
meetings as an observer in the first instance.

 

CLOSE.

Time 10.25pm

 

 

NEXT MEETINGS

Thursday 8 August 2002

Thursday 12 September 2002

 

CICCC ATTACHMENTS TO DRAFT
MINUTES

 

11 July 2002

 

Attachment 1 Terminals
Monthly Report – June 2002


Attachment 2 Terminals
Safety Case Assessment report overheads


Attachment 3 WorkSafe
Safety Case Assessment report overheads


Attachment 4 ‘Emergency
Information Booklet’ text


Attachment 5
CICCC Web Page usage for the past 12 months.


Attachment 6 Correspondence
received from MPC, 5 July 2002.

 

 

Items posted to those without e-mail
facilities include

New director WorkSafe

CICCC Media Release 13 June

Update of CICCC history for web page

Report to Dept of Treasury and Finance 24 June
2002