BACKGROUND INFORMATION DOCUMENT PROPOSED HAZARDOUS SUBSTANCE STORAGE FACILITIES AT THE SALDANHA BAY INDUSTRIAL DEVELOPMENT ZONE

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1 BACKGROUND INFORMATION DOCUMENT PROPOSED HAZARDOUS SUBSTANCE STORAGE FACILITIES AT THE SALDANHA BAY INDUSTRIAL DEVELOPMENT ZONE 1. INTRODUCTION The Saldanha Bay Industrial Development Zone (IDZ) is located at the Port of Saldanha, covering a portion of land within the port precinct and a back of port area to the north of Main Road 559. The Saldanha Bay IDZ Licensing Company (hereafter referred to as SBIDZ-LC) was established as the official public entity, licence holder and operator of the IDZ area. Management: Air Quality Act, 2004 (No. 39 of 2004), as amended (NEM:AQA) would also be required. SLR Consulting (South Africa) (Pty) Ltd (SLR) has been appointed as the independent Environmental Assessment Practitioner to undertake a Scoping and EIA Process to meet the relevant requirements of, amongst others, NEMA, the EIA Regulations 2014 (as amended), and NEM:AQA (see Section 3). The development of an oil and gas offshore service complex (OSC) within the declared IDZ area was authorised by the Department of Environmental Affairs and Development Planning (DEA&DP) in November The Environmental Authorisation (EA) was issued in terms of the National Environmental Management Act, 1998 (No. 107 of 1998) Environmental Impact Assessment (EIA) Regulations Under the EA, various activities and services were approved for development within the OSC including, but not limited to: Maintenance and repair of offshore drilling units; A ship repair yard; Service base; and Other infrastructure. 2. PURPOSE OF THIS DOCUMENT This Background Information Document (BID) has been compiled and distributed to: inform Interested and Affected Parties (I&APs) about the legislative processes that the applicant is required to comply with; provide a description of the proposed project; describe the Scoping and EIA process to be followed; provide an overview of the key issues to be investigated; and describe how I&APs can participate in the process. At the time of the initial application for Environmental Authorisation, it was not known which future operations and specific industries would be established within this area. It was thus not possible to account for all possible activities in terms of the NEMA EIA Regulations that might be triggered by future developments or operations within the IDZ area. The SBIDZ-LC is now seeking to develop fuel bunkering facilities within the IDZ (hereafter referred to as the proposed project). Before the proposed project can be implemented, authorisation in terms of NEMA, as amended, is required. In addition, an application for an Atmospheric Emissions Licence (AEL) in terms of Section 22 of the National Environmental 3. WHAT AUTHORISATION IS REQUIRED? The EIA Regulations, 2014 (as amended) promulgated in terms of Chapter 5 of NEMA, provides for the control of certain listed activities. Such activities are prohibited from commencing until written authorisation is obtained from the competent authority, which in this case is DEA&DP. These activities are listed in Government Notices (GN) No. R983, R982, and R985, as amended. Similarly, listed activities and associated minimum emission standards identified in terms of Section 21 of NEM:AQA (published in GN R893 of 2013, as amended) are prohibited from commencing until an AEL is obtained.

2 The following activities that may be triggered by the proposed project have been identified: GN R982 - Listing Notice 2 (under NEMA) 4. The development and related operation of facilities or infrastructure, for the storage, or storage and handling of a dangerous good, where such storage occurs in containers with a combined capacity of more than 500 cubic metres. 6. The development of facilities or infrastructure for any process or activity which requires a permit or licence or an amended permit or licence in terms of national or provincial legislation governing the generation or release of emissions, pollution or effluent. 7. The development and related operation of facilities or infrastructure for the bulk transportation of dangerous goods - (ii) in liquid form, outside an industrial complex, using pipelines, exceeding metres in length, with a throughput capacity of more than 50 cubic metres per day GN R893 (under NEM:AQA) 4. Subcategory 2.4: Storage and Handling of Petroleum Products All permanent immobile liquid Storage facilities at a single site with a combined storage capacity of greaterthan 1000 cubic meters. Thus, a Scoping and EIA process must be undertaken in order to apply for an EA and an AEL. It has been confirmed at a pre-application meeting with DEA&DP that the required Scoping and EIA process will only focus on the assessment of impacts related to the newly triggered activities. The assessment will thus focus on the storage of hazardous substances and related air emissions and risks. Impacts related to the clearance of natural vegetation, freshwater ecosystems, heritage/archaeology, visual and noise were deemed to be sufficiently assessed in the previously approved EIA and would thus not be reassessed as part of the new application process. 4. PROJECT DESCRIPTION Construction is soon to commence on various approved project components of the Saldanha Bay IDZ development at the recently expanded GMQ and on adjoining port land. The first components relate to the establishment of the OSSB at the GMQ and various other supporting services on a 20 ha adjoining area within the IDZ. Already approved components include a fabrication yard, pipe coating yard and various storage and handling facilities. Access to the OSSB and 20 ha site would be obtained via the existing Port of Saldanha access gates. The current EIA will focus on activities that were not previously assessed and covered by the current EA for the IDZ. These include the following: Ancillary fuel bunkering at the OSSB; A fuel bunkering facility for the storage of marine fuels and supply to offshore vessels within a 20 ha adjacent IDZ area; and Storage of dangerous goods. The above-mentioned components are described in more detail below and illustrated in Figure OSSB AT THE GMQ The OSSB at the GMQ will provide the following services: Ancillary bunkering, fuel oil and lubricants refill services with a storage footprint of approximately m 2. Three m 3 tanks for marine bunker fuels and one 500 m 3 tank for helicopter fuel. Material on/offloading facilities via the recently expanded quayside. Temporary storage facilities with a container stacking yard of approximately m 2. Water refill facility for potable water (2 x 500 m 3 tanks) and a m 2 area for mixing and blending of drill fluids/muds. Office and warehousing buildings. Waste disposal services a 300 m 2 area for the collection and handling of offshore oil and gas and general wastes. Small scale pipe coating facility. Of these, only the fuel bunkering component, indicated in bold, would require environmental authorisation. All other components of the OSSB are currently legally permissible at the GMQ. 4.2 FUEL BUNKERING The fuel bunkering and blending facility for the storage of marine fuel for supply to offshore vessels is SLR Consulting (South Africa) (Pty) Ltd 2 March 2018

3 proposed within a 20 ha area of the IDZ. Oil pipelines would connect the intake located at the oil tanker terminal at the entrance to Saldanha Bay to the proposed bunkering facility. The facility would have a total storage capacity of approximately m³ and a footprint of approximately 3 ha. It would be located adjacent to the proposed Pipe Coating Yard, approximately 350 m inland of the high water mark of the sea. The bunkering facility would require an EA and would be assessed as part of the Scoping and EIA process. 4.5 LUBRICATION STORAGE & BLENDING AND STORAGE OF OTHER DANGEROUS GOODS It is proposed to establish a Lubricant Storage and Blending Facility for the manufacture of lubricants. The facility would be approximately 2 ha in extent. Depending on the hazardous nature of the substances and storage capacity, this component might also require environmental authorisation. This will be confirmed during the EIA process and further detailed design of the facility. The EIA process will also aim to assess the potential storage of dangerous goods across the rest of the IDZ area, should other operators need to store such substances in future. 5. SCOPING AND EIA ASSESSMENT PROCESS The EIA Regulations 2014 (as amended) define the detailed approach to the Scoping and EIA process. The key steps where you can participate and provide input during the process are highlighted below. 5.1 PRE-APPLICATION PROCESS The objectives of the initial public participation process are to ensure that I&APs are: notified of the proposed project and required environmental authorisation process; provided with a reasonable opportunity to register on the project database; and provided with an opportunity to comment (see Section 7). Comments received during this initial phase will be used to inform the preparation of the draft Scoping Report for the proposed project. 5.2 APPLICATION PROCESS Scoping Phase The purpose of this phase is to confirm the project scope, key issues and the terms of reference for the specialist studies. This will be set out in a draft Scoping Report, which will be made available for a 30-day public review and comment period during the second quarter of The final Scoping Report, along with all I&AP comments, will be submitted to DEA&DP for their review and acceptance. EIA Phase The issues identified during the Scoping Phase will be assessed in specialist studies and integrated into a draft Environmental Impact Report (EIR). The draft EIR will be made available for a 30-day public review and comment period (third quarter of 2018). The final EIR, along with all I&AP comments, will be submitted to DEA&DP for review and decision-making. 6. KEY ISSUES FOR CONSIDERATION A number of key issues associated with the proposed project that were not assessed as part of the original EIA process for the Offshore Oil and Gas Service Complex, have to date been identified for consideration in the Scoping and EIA process. These include: The potential impact of the proposed fuel bunkering facilities on air quality; The risks related to the establishment of a potentially hazardous installation in the Port of Saldanha; and Construction-related impacts of the proposed fuel bunkering facilities and pipeline. Previously assessed impacts related to noise, visual, vegetation, heritage and freshwater ecology will be referenced in order to confirm that the proposed new bunkering facilities would not affect the significance ratings assigned by specialists during the previous EIA process. SLR Consulting (South Africa) (Pty) Ltd 3 March 2018

4 7. INVITATION TO COMMENT ON THE PROPOSED PROJECT You and/or your organisation are hereby invited to register as an I&AP and provide input with regard the proposed project. You can become involved as follows: by reading this document and letting us know of any initial issues or concerns that you may have; by providing us with contact particulars of any other organisations or persons who may be affected by or interested in the proposed project; and by registering as an I&AP (see attached Registration Form). This BID has been distributed for a 30-day comment period from 22 March to 23 April 2018 (making provision for the public holidays in March and April). Should you wish to register or comment, kindly forward your details to SLR (at the contact details below) by no later than 23 April SLR Consulting (South Africa) (Pty) Ltd Unit 39, Roeland Square 30 Drury Lane, Cape Town, 8001 Tel: (021) / 9 Fax: (021) ecostandius@slrconsulting.com SLR Consulting (South Africa) (Pty) Ltd 4 March 2018

5 BUNKERING FUTURE DEVELOPMENT General Maintenance Quay FABRICATION YARD PIPE COATING HARD STAND LUBRICANT Figure 1: Local setting and layout plan of the proposed Offshore Supply Base at the General Maintenance Quay and adjacent 20 ha area that is proposed for development. Storage activities requiring Environmental Authorisation are indicated in yellow. SLR Consulting (South Africa) (Pty) Ltd 5 March 2018

6 SCOPING AND EIA PROCESS FOR THE PROPOSED HAZARDOUS SUBSTANCE STORAGE FACILITIES AT THE SALDANHA BAY INDUSTRIAL DEVELOPMENT ZONE INTERESTED AND AFFECTED PARTY (I&AP) REGISTRATION AND RESPONSE FORM Would you or your organisation like to become a registered I&AP * and continue to receive information on the proposed project? Yes No Name : Organisation: Postal address: address: Telephone number: Fax number: Do you or your organisation have any issues or concerns regarding the proposed project? Yes No If yes, please provide details below: SLR Consulting (South Africa) (Pty) Ltd Unit 39, Roeland Square 30 Drury Lane, Cape Town, 8001 Tel: (021) / 9 Fax: (021) ecostandius@slrconsulting.com Registered Interested and Affected Parties (I&APs) in terms of Regulation 42 of GN No. R982 of 4 December 2014 (as amended) includes all persons: who have submitted written comments; attended public meetings; and who have requested in writing, for their names to be placed on the register. On receipt of a decision for the application, only registered I&APs will be notified, in terms of Regulation 4(2) of GN No. R982 of 4 December 2014 (as amended), of: where the decision can be accessed; what the reasons for the decision were; and how an appeal may be lodged against the decision.