Conditions of Approval for the MDP for the brickworks at Perth Airport

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1 Conditions of Approval for the MDP for the brickworks at Perth Airport Definitions In this document, unless a contrary intention appears, the terms below have the meanings given to them: AES means Airport Environment Strategy. Act means the Airports Act 1996 as amended from time-to-time Airport Lease means the Headlease for Perth International Airport executed between the Commonwealth of Australia and Westralia Airports Corporation Pty Ltd on 1 July AEO means an Airport Environment Officer appointed by the Secretary (or his delegate) of the Department of Transport and Regional Services. AsA means AirServices Australia. BGC means BGC (Australia) Pty Ltd, and includes future individual or operator that acquires the right to operate the brickworks. Brickworks means the clay brick manufacturing plant to be constructed at Perth International Airport. Building Activity has the meaning given in section 98 of the Airports Act CASA means the Civil Aviation Safety Authority. CEMP means the Construction Environmental Management Plan for the brickworks. CEO means Chief Executive Officer. DoE means the Western Australian Department of Environment administering the Brickworks Licensing Policy from time-to-time. DOTARS/the Department means the Department administering the Airports Act from time to time. DEH means the Department administering the Environmental Protection and Biodiversity Conservation Act 1999 from time to time ISO14001 means the International Standard Organization environmental management standard MDP means the Major Development Plan for the brickworks which has been approved by the Minister for Transport and Regional Services on 15 August Minister means the Minister for Transport and Regional Services. OEMP means the Operational Environmental Management Plan for the brickworks. Pollution has the meaning under Regulation 1.05 of the Airports (Environment Protection) Regulations Regulations means the Airports (Environment Protection) Regulations 1997 as amended from time-to-time. Secretary means the Secretary of DOTARS. WAC means the Westralia Airports Corporation Pty Ltd and includes any future Airport Lessee Company for Perth Airport. In the event of any inconsistency between the undertakings and commitments in the MDP and the conditions contained in this document, the conditions in this document shall prevail. As the Airport Lessee Company and proponent of the MDP, WAC is to use all powers available to it to ensure that these conditions are complied with, including the conditions imposed on BGC. General conditions 1. BGC must implement and comply with each undertaking or commitment relating to the construction or operation of the brickworks or otherwise, made by or on behalf of them, in the MDP or in correspondence with the Commonwealth after submission of the MDP up to and including 20 July 2006, including but not limited to:

2 a. The installation and on-going operation of a continuous emission and air flow monitoring system. b. Ensuring that emissions from the brickworks of a substance specified in column A of the table below will never exceed the level specified in the corresponding item in column B in the table below: HF Column A HCl NOx SOx CO VOC CO2 Column B 0.038tonnes / day 20 mg/m t/d 100 mg/m t/d 128 mg/m t/d 200 mg/m t/d 432 mg/m t/d 15.6 mg/m 3 Dust 20 mg/m 3 ~30,000 tonnes / year Dark Smoke Less than 1 Ringelman c. (i) Shutting down the kilns should a failure occur in the gas scrubbing system that has the potential to result in elevated emissions above limits in condition 1 b) above; (ii) Not operating the kilns without functional scrubbers; (iii) Implementing corrective action to reduce emissions should monitoring of scrubber operation indicate there is a problem for increased levels of gaseous emissions that approach never-to-be-exceeded targets, including but not limited to, reducing throughput and a staged shutdown of the kilns. (iv) Engaging an independent expert to monitor the scrubbers to ensure their efficient operation and to provide monitoring results on a quarterly basis to WAC, the Airport Environment Officer and the DoE. d. Maintaining a complaints register, and a complaints management system, collecting at least the following information where possible for all complaints: (i) the name and contact details of the complainant (if provided); (ii) the details of the complaint (eg odour); (iii) the climatic condition at the time of complaint (eg wind direction, temperature) or at the time the event occurred; (iv) the plant status at the time of the complaint or at the time the event occurred; and (v) any follow up or remedial action undertaken or proposed to be undertaken.

3 and forwarding complaints to WAC and the AEO on a monthly basis with a summary provided three-monthly. e. Ensuring that all buildings, plant and equipment are removed at the end of the lease period, ensuring the site is free of contamination and suitable for the required future use. Conditions about emission levels 2. BGC must arrange for the continuous monitoring of emissions for the duration of the operation of the brickworks. This monitoring must be ongoing and supervised by an accredited expert in the field agreed with WAC and the AEO. For the avoidance of doubt, costs of all such monitoring will be met by BGC. 3. BGC must provide reports on the results of monitoring, and in particular on compliance with the emission limits under condition 1 (b) above, on a quarterly basis to the AEO and WAC. Reports must be provided within four weeks of the completion of the period to which the report relates. 4. If compliance monitoring indicates emission levels exceeding the limits identified in condition 1(b) above, BGC will within 24 hours provide a notice to the AEO and WAC which includes the following information: a. the extent and nature of emissions exceeding the limits; b. the process associated with the excess and events leading to the excess; c. any environmental impact resulting from the excess; d. details of remedial action taken or that is being taken; and e. whether the excess emissions are continuing. 5. BGC is to undertake such action as is required to address any breach of emission limits in condition 1(b) above, in consultation with the AEO, including if necessary to shut down part or all of the operations at the plant. Conditions requiring action prior to commencement of building activity. 6. Prior to commencement of building activity and prior to any clearing of any land or vegetation for the purposes of building activity for the brickworks, BGC must undertake a flora and fauna survey to determine the presence of potentially endangered species and evaluate the importance of the site for listed threatened species. The survey must include an assessment against the WA State Government Bush Forever Policy. WAC and BGC must consult with DEH on the scope of the survey. The results of the survey are to be reflected in the CEMP (see condition 8 below). 7. If the Survey referred to in Condition 6 reveals the presence of any endangered species, WAC/BGC must develop, prior to commencement of building activity on the brickworks, a Flora and Fauna Management Plan. This Plan must be developed in consultation with the AEO and DEH and approved by the AEO in consultation with DEH prior to commencement of building activity. WAC and BGC must ensure that the Flora and Fauna Management Plan is implemented. The Plan must include but is not limited to the following: a. plans showing vegetation communities; important flora and fauna habitat areas; locations where threatened species, populations or ecological communities were recorded; and areas to be cleared. The plans

4 must also identify vegetation adjoining the proposed works where this contains important habitat areas and/or threatened species, populations or ecological communities; b. methods to manage impacts on flora and fauna species and their habitat which may be directly or indirectly affected by the proposed works; c. rehabilitation details; d. a Weed Management Strategy; and e. a program for reporting on the effectiveness of flora and fauna management measures against the identified performance criteria. 8. BGC and WAC must develop a Construction Environment Management Plan (CEMP) prior to commencement of building activity. The CEMP must be submitted to the AEO prior to commencement of building activity. WAC and BGC must ensure that the CEMP is implemented. The CEMP must incorporate all of the following (but may include other relevant matters): a. a commitment that all employees and contractors of BGC, WAC or any other party involved directly in construction works for the brickworks will undergo environmental induction training, including of site specific and heritage matters, prior to commencement of construction to enable recognition of any potential environmental impacts and cultural material brought to the surface as a result of the works. b. measures to manage any contaminated site discovered during building activity; c. measures to give effect to the findings of the Flora and Fauna Study (see condition 6 above); d. measures to manage construction noise and vibration; e. measures to mitigate bird attraction to the site; f. measures to manage the effect of construction on air quality, especially arising from dust; g. measures to ensure that illumination from the headlights of vehicular traffic to and from the brickworks does not interfere with aircraft operations; h. the assessment and management of Potential Acid Sulphate Soils or Acid Sulphate Soils; i. processes for cultural heritage management; j. a management plan for soil and water (including ground water and stormwater). 9. Prior to the commencement of building activity for the brickworks, WAC and BGC must conclude an agreement with the relevant State and Local Government agencies under which WAC and BGC agree to make annual payments for the contribution of a reasonable amount towards the costs of road maintenance, and any agreed required road upgrading, in the vicinity of the brickworks site attributable to the operation of heavy vehicles to and from the brickworks. Where the parties are unable to reach an agreement, WAC and BGC must submit to a binding arbitration by a qualified arbiter agreed to by the parties. 10. Prior to the commencement of building activity for the brickworks, WAC and BGC must develop and implement an Environmental Management System (EMS) for the brickworks that is consistent with ISO This EMS is to be submitted to the AEO. Conditions relating to site layout 11. The final layout of the brickworks must be consistent with the proposed layout in the MDP and must provide at least the separation distances between the closest points of the specified plant components

5 and the boundaries of sensitive land uses as per Annexure A. These separation distances provide the physical buffer area between the plant and surrounding sensitive land uses. This buffer is to be maintained and not developed other than through landscaping. Conditions requiring action prior to commissioning 12. Prior to commencement of the commissioning process for the brickworks: a. BGC must arrange for independent monitoring of ambient air quality at the site where the brickworks are to be constructed for a minimum of 12 consecutive months to establish background levels of VOC, SOx, NOx, HCl and HF. This monitoring is to be supervised by a suitably qualified and independent person or organisation approved by the Department. b. Following the ambient air quality monitoring, BCG must arrange for modelling of cumulative impacts and resulting air quality to be prepared, which takes into account the monitoring data collected under the monitoring programme and the potential effects of operations at the site This modelling is to be conducted by a suitably qualified and independent person or organisation approved by the Department. c. BGC must arrange for an assessment of the public health environmental risks presented by the operation of the brickworks which takes into account the monitoring data and modelling referred to above, to be prepared by a suitably qualified and independent person approved by the Department. d. The results of the modelling and assessment referred to above must be provided to the AEO and the DoE as soon as practical after completion. No work to commission the brickworks may commence until this condition is satisfied. 13. Prior to commencement of commissioning BGC must prepare, in consultation with the Department, an Operational Environmental Management Plan (OEMP). The OEMP must be submitted to the AEO and Department prior to the commencement of operations. WAC and BGC must ensure that the OEMP is implemented. The OEMP must be consistent with WAC's AES and must incorporate all of the following (but may include other relevant matters): a. a mosquito control program for the retention basin; b. measures for the management of dieback; c. measures for the management of noise and any other potential impacts on the surrounding community ie lighting; d. measures to mitigate bird attraction to the site; e. measures for the management of groundwater; f. measures for the management of air quality, specifically addressing dust issues; g. procedures for disposal of waste bricks and other waste products; h. procedures for clay stockpile management; i. procedures for stormwater management, which must be consistent with the stormwater policy developed by WAC; j. procedures for odour management including the use of sugar or sugar products in the brick making process rather than molasses; k. measures such that illumination from the headlights of vehicular traffic to and from the brickworks does not interfere with aircraft operations. 14. BGC, in consultation with WAC, must review the OEMP after the first year of operation of the brickworks and every five years thereafter. The results of each review and any revisions to the OEMP must be submitted

6 to the AEO. The OEMP must at all times be consistent with WAC's AES. Revisions of the OEMP must take into account changes in technology and new information which may assist in achieving improved environmental outcomes. Conditions relating to compliance auditing 15. WAC must ensure that audits of compliance with these conditions are undertaken by an independent accredited auditor approved by the Department as follows: a. the first audit must occur when construction is substantially completed and prior to the commencement of the brickwork operations and must address compliance with conditions relevant to pre-commencement activities; b. the second audit must occur one year after the brickworks commences operation; c. subsequent audits must occur once every three years thereafter. Reports of all audits are to be provided to the Department. The brickworks must not commence operations unless the first audit report has been provided. For the avoidance of doubt, costs of all such auditing will be met by WAC. 16. WAC and BGC must provide a certificate to the Minister within 30 days of the end of each calendar year relating to that calendar year signed by each CEO attesting to WAC and BGC's compliance with the conditions contained in this document, provide information on how they have met each condition and if there has been any delay in meeting the conditions, the reasons for the delay and the actions taken to address any delays. Conditions about providing information 17. WAC and BGC will make all reasonable efforts to provide information requested by the AEO or the Department relating to this development and compliance with these conditions within the time requested. 18. If, on reasonable grounds relating to a potential breach of these conditions, the AEO requires an expert to carry out an on-site examination, the examination must be carried out following a procedure to the Department's satisfaction, with the costs of the examination to be borne by BGC. 19. BGC and WAC must keep all records including but not limited to data, reports, studies and plans required under these conditions for a minimum of 7 years. Before disposal of such records, WAC and BGC must convert these to an electronic format and provide a copy to the AEO. 20. All reports, audits, responses to requests for information and the like made under these conditions are to be provided by WAC or BGC in an electronic format. Other conditions 21. WAC and BGC must obtain and maintain all Commonwealth, State or local government permits, licences, authorisations etc necessary for the construction or operation of the Brickworks. 22. BGC in consultation with WAC must ensure that the nutrient treatment plant for the brickworks is large enough to manage the expected throughput, and must ensure that it is monitored to ensure that no

7 discharge occurs and odour is managed. Procedures for these purposes must be determined in consultation with the AEO. Conditions relating to effect of construction or operation of brickworks on airport operations and air navigation 23. BGC must put in place processes to measure the actual plume arising from the operation of the brickworks. If the actual plume from operations of the brickworks exceeds the predicted plume, BGC must immediately provide this information to AsA and CASA for re-assessment on the potential impact on aircraft safety and the efficient air navigation. 24. If there are any differences between the specifications of the brickworks in the MDP and the brickworks actually proposed to be constructed, and as relevant expanded or modified, all details are to be provided to WAC, CASA and AsA to enable an assessment of the potential impact on aircraft safety and efficient air navigation. 25. If AsA advises WAC or BGC that fog created by the brickworks is causing a disruption to aircraft operations which AsA advises is unacceptable, BGC will ensure temporary cessation of operation of the brickworks at short notice, with the cessation to continue until advised by AsA that operations may re-commence. 26. WAC must ensure that the lighting at the brickworks site complies with AsA and CASA requirements. This will include ensuring that there is no impact from the operation of the brickworks on the High Intensity Approach Lighting system that could prejudice safe and effective aircraft operations. 27. Prior to the commencement of building activity, WAC and BGC must consult with, and take into account the views of the Fire and Emergency Services Authority, AsA and CASA with regard to the high pressure gas supply and consumption needs for the brickworks. WAC must ensure that any risks that are identified as a result of the process are incorporated into the Airport Emergency Plan for Perth Airport.