TECHNOBURN (Pty) Ltd FINAL SCOPING REPORT

TECHNOBURN (Pty) Ltd FINAL SCOPING REPORT WASTE LICENCE APPLICATION, AIR EMISSIONS LICENSE APPLICATION AND SECTION 24G RECTIFICATION APPLICATION FOR A USED OIL RECYCLING FACILITY ON ERF 104904, NUMBER NINE MYMONA CRESCENT, ATHLONE INDUSTRIA, CAPE TOWN, WESTERN CAPE DEA REFERENCE NUMBER: 12/9/11/L43388/9/S24G DEA&DP REFERENCE NUMBER: 14/2/1/1/A2/1/0019/13 SEC REFERENCE: E12113 SEC SEPTEMBER 2015 Sillito Environmental Consulting PO Box 30134, Tokai, 7966 Telephone: 021 712 5060 Fax: 021 712 5061 Email: info@environmentalconsultants.co.za www.environmentalconsultants.co.za

i Executive Summary Introduction Erf 104904 is situated at number 9 Mymona Crescent, Athlone Industria 2 with a total site area of approximately 3 500 m² which has long been developed for industrial purposes. The site comprises of approximately 800 m2 of factory area, and 200 m2 of tank storage area. Infrastructure on the site includes an office block, warehouse, two bunded tank farms, a tanker loading point and two off-loading points. The site is owned by Provester 102 (Pty) Ltd and is operated by Technoburn (Pty) Ltd who stores and distributes boiler fuels such as HFO, LSO, LO10 and Paraffin. The company purchases recycled oil in addition to which it accepts used lube oil and other high calorific hydrocarbon type wastes which are delivered to the site from various sources for conversion into fuel for the use in boilers. The used oil, other base materials and fuel for sale is stored in above ground storage tanks prior to distribution to clients. Distribution is by means of road tankers which are owned and operated by the company. The company also imports, sells, maintains, repairs and services boilers and associated equipment; which includes test firing on the premises. Both the recycled fuel and other fuel types are used for test firing burners at the facility as part of a boiler maintenance service offered. Figure 1 City of Cape Town image of the Technoburn site and immediate surrounding area. Image courtesy of City of Cape Town, 2014

Current/existing Technoburn authorisations include the following: 1. The fuel storage capacities which include the storage of bulk Heavy Fuel Oil (HFO), Low Sulphur Oil (LSO) and Diesel were listed in terms of GN R386 of 21 April 2006, Activity No. 7 and authorised by the DEA&DP on 18 November 2009. This included the following above ground storage tanks: - Eleven x 84 000 L above ground storage tanks (consisting of 1 horizontal product storage tank and 10 vertical product storage tanks) - Seven vertical used oil/water storage tanks - Three fire-fighting water storage tanks together with associated infrastructure. The construction of the above tank farm commenced during 2010 (refer to Google image 30/11/2010.) The tanks for the tank farm were positioned during 2011. 2. A Licence was also granted to Technoburn (Pty) Ltd by the national Department of the Environment (DEA) on 4 November 2010 for listed activity 2 of Category A of NEM: WA. [(Licence Number: 12/9/11/L404/9; Class: H: H (Used Oil Temporary Storage)] (Refer to the Environmental Authorisation and Waste Licence attached to Appendix C) A Compliance Letter was issued to Technoburn on 20 September 2012 based on a site inspection that was conducted by the DEA&DP on 11 July 2012. This indicated that there were various conditions of the Environmental Authorisation that were not being complied with. (Refer to the Compliance Letter issued by DEA&DP on 20 September 2012, attached to Appendix D). Sillito Environmental Consulting (Pty) Ltd (SEC) was then engaged by Technoburn to conduct an environmental audit to assess compliance with the conditions of the Environmental Authorisation and the Environmental Management Plan as well as to conduct a subsurface and effluent assessment of the conditions of the site. SEC Reference E12113: Draft Scoping Report: WLA, AEL and S24G Technoburn, Athlone Industria 2.

A meeting was held at the DEA&DP on 22 February 2013 to discuss environmental compliance issues relevant to current and future operations at Technoburn. Attendees at this meeting included Adrian Sillito and David Spencer from SEC; Kathleen Marhota (Section 24 G Directorate at DEA&DP); Eddie Hanekom and Lance McBain Charles (Waste Directorate at DEA&DP) and Bukelwa Mtandana (Department of Water Affairs). A review of the legislative compliance requirements was conducted by means of a Process Flow Analysis and Environmental Compliance Review utilising the following as inputs: 1. The various issues discussed at the DEA&DP meeting. 2. Process flow information and documentation as provided by Technoburn. 3. Information derived from the environmental audit as conducted during December 2012. 4. The site assessment report comprising the subsurface and effluent assessments. This review was submitted to the national Department of Environmental Affairs (DEA) and the provincial Department of Environmental Affairs and Development Planning (DEA&DP) in May 2013 for comment. In consultation with the DEA&DP as well as with the DEA, it has been ascertained that an integrated application in terms of Section 24G of the National Environmental Management Act, Act No. 107 of 1998 must be followed and will be submitted to both the DEA and DEA&DP. This application will encompass the following: - The non-compliance in terms of current authorisations for bulk storage of dangerous goods on site, namely, fuels for boilers and used lube oils for which the DEA&DP will be the competent authority. - Application for consideration of an application in terms of Section 24G of the National Environmental Management Act, Act No. 107 of 1998, as amended (NEMA) and will relate to the unlawfully commenced operating of the effluent treatment plant, of which operation has ceased upon instruction of the DEA&DP, for which the DEA will be the competent authority. - The lapsed application for authorisation of the refining processes (VDU unit), operation of which has ceased upon instruction from the DEA&DP, for which the DEA will be the competent authority. - Application for consideration of an application in terms of Section 24G of the National Environmental Management Act, Act No. 107 of 1998, as amended (NEMA) and will relate to the the unlawfully commenced activities as currently undertaken on site in terms of the recycling and treatment of hazardous waste (used lube oils) for which the DEA will be the competent authority. - Application for consideration of an application in terms of Section 24G of the National Environmental Management Act, Act No. 107 of 1998, as amended (NEMA) and will relate to the the unlawfully commenced activities as currently undertaken on site in terms of the storage of other types of hazardous waste (high calorific hydrocarbon type wastes) for which the DEA will be the competent authority. SEC Reference E12113: Draft Scoping Report: WLA, AEL and S24G Technoburn, Athlone Industria 2.

- The proposed process will also include the applications for appropriate waste management and air emissions licences. - Applications for effluent discharge permits and the development of a waste management plan in terms of local bylaws will also be made to the City of Cape Town. - Registration as a hazardous waste producer in terms of the Integrated Pollutant and Waste Information System (IPWIS) of the DEA&DP will also take place. Application Requirements The list of Activities published under the NEM:WA ( Government Notice No. 718 of 2009 and Government Notice No.921 of 2013) and the list of activities which result in atmospheric emissions which have a detrimental effect on the environment under NEM:AQA (Government Notice No. 248 of 2010 and Government Notice No. 893 of 2013) read together with the Environmental Impact Assessment (EIA) Regulations published in 2006, 2010 and 2014 under the National Environmental Management Act, Act No. 107 of 1998, as amended (NEMA), have been consulted. According to this legislation and advice obtained from the provincial DEA&DP and the national DEA, a single integrated process must be followed to make application for the following: - A Licence in terms of NEM:WA - An Air Emissions License in terms of NEM:AQA - An application for authorisation in terms of Section 24G of the NEMA. The process is strictly prescribed by the EIA Regulations, Government Notice No. R543 of 2010 and Government Notice No.982 of 2014 The Purpose of This Scoping Report The process of Scoping, as required by the EIA Regulations, is one of carefully reviewing background information on the proposed activity, as well as the receiving environment (social; economic and bio-physical) where the activity is to take place. On the basis of this review, environmental impacts possibly associated with the activity which may cause significant harm or benefit to the receiving environment, are identified for further investigation and assessment during the Environmental Impact Assessment phase of the process. On the basis of these potentially significant impacts identified, alternative means of meeting the general requirements of the activity must also be identified. Alternatives can include different sites where the activity can take place; different technologies for undertaking the activity; or even identifying an entirely different activity which could meet the purpose of the application, such as for example waste disposal as opposed to waste recycling and recovery. The purpose of identifying alternatives is to try and include in the application alternatives which will have the most benefit and/or cause the least harm to the receiving environment. Ideally, the process should identify the Best Practicable Environmental Option (BPEO) for achieving the purpose of the activity given the context of the receiving SEC Reference E12113: Draft Scoping Report: WLA, AEL and S24G Technoburn, Athlone Industria 2.

environment. BPEO is defined as the option that provides the most benefit or causes the least damage to the environment as a whole, at a cost acceptable to society, in the long term as well as in the short term. Potentially Significant Impacts Identified The activity entails the storage and distribution of fuels for boilers such as HFO, LSO, LO10 and Paraffin which are classified as dangerous goods. It also includes the storage and recycling of used oils and other high calorific hydrocarbon type wastes, which are classified as hazardous waste and which are delivered to the site from various sources for conversion into fuel for the use in boilers and for test firing burners at the facility. The fuel is stored in above ground storage tanks prior to distribution to clients by means of road tankers which are owned and operated by the company. The company also repairs and services boiler firing equipment which includes test firing on the premises. Activities associated with the fuel storage and used oil storage and recycling facility which have been identified as possibly impacting on the surrounding environment (social, economic and bio-physical environment) are: An event or failure (such as a spill) could occur, that could eventually lead to a major incident. A possible cause of such a failure could be, for example, failure of a pipeline or valve of a product storage tank or incorrect product handling procedures. An incident would be a toxic release, a fire or an explosion on the premises; with the incident resulting in impacts on humans and assets both at and surrounding the site, such as minor injury, major injury and fatality and destructive effect on assets. Soil and groundwater contamination could occur in the event of a spill or leak of product (through, for example, a tank and bund failure; or incorrect product delivery procedures). Air quality could be impacted due to vapour release, a fire or explosion of base raw materials (waste) and/or finished goods due to insufficient operational control of for example storage, heating and fuel burning equipment. Impacts on human health could occur associated with incorrect storage or handling of products at the site resulting in exposure to harmful materials and/or processes; The impact on the use of finite natural resources for the manufacture of industrial oils: the recycling process on site entails the re-use/recovery of hazardous waste as opposed to manufacturing the oils from finite raw materials including fossil fuels; as well as the re-use of hazardous waste as opposed to disposal of the waste to landfill, thereby reducing landfill airspace and preserving natural resources; and Socio-economic impacts in terms of the contribution of the facility to the recycling community in the greater Cape Town area; as well as in terms of income produced for the applicant and income and employment opportunities offered for employees at the site. SEC Reference E12113: Draft Scoping Report: WLA, AEL and S24G Technoburn, Athlone Industria 2.

The receiving environment is a fully developed, industrial environment. Sensitive receptors to the impacts identified as potentially associated with the waste recycling/recovery facility include: The health and safety of staff on the site, as well as on neighbouring and nearby sites Freshwater resources in the form of groundwater Subsurface soil on which natural ecosystems are reliant; and On a broader scale, conservation of finite natural resources (such as fossil fuels) which are replaced by the used waste oil as feedstock for Alternative Boiler Fuel (ABF). Landfill airspace is conserved as the hazardous waste is recycled/recovered and reused and not disposed of to landfill. Alternatives Identified and Investigated Based on the impacts identified as potentially being associated with the waste recycling/recovery facility, alternative means of fulfilling the general purpose of the application, which is the recycling of used oil, have been identified and investigated during this Scoping process. Activity alternatives: The used industrial oils, which are hazardous waste, could be disposed of to landfill or incinerated as opposed to being recycled at the facility. Site alternatives: An alternative site to Erf 104904, Athlone Idustria 2, where the facility is currently situated, could be utilised for the recycling/recovery facility. Design, layout and operational alternatives: The design and layout of the recycling/recovery facility, including the infrastructure, plant and equipment such as tanks, processing equipment and bunds, will affect the potential of the facility to impact negatively on the health and safety of staff at the site and at nearby facilities; to impact underlying soil and groundwater resources and air quality of the surrounding area. Process alternatives: There are different means of recycling the used oil, which could have an effect of achieving cost efficiencies; the quality of the end product; and the potential of the facility to impact on health, safety and environmental aspects of the site and surrounds. In accordance with the requirements of the EIA Regulations, any of the alternatives which are found upon rigorous investigation to be reasonable and feasible alternatives for meeting the general purpose of the application - the recycling/recovery of Used Oil (hazardous waste) will be comparatively assessed against the No-Go Option during the EIA phase of the application process. The No-Go Option: The No-Go Option is ordinarily understood as maintaining the status quo at a site, with the applicant meeting all of his legal responsibilities in terms of maintaining a site or operating a facility (DEA&DP Guideline on Alternatives, October 2011). In this instance, the status quo at the site is an operational hazardous waste re-processing facility, which will have to obtain a Licence, Air Emissions License as SEC Reference E12113: Draft Scoping Report: WLA, AEL and S24G Technoburn, Athlone Industria 2.

well as Application for Authorisation in terms of NEMA, in line the legal responsibilities of the applicant, Technoburn (Pty) Ltd. With respect to approaching the No-Go Option in this instance, discussions were held with the provincial DEA&DP. It was determined that the intention of the EIA Regulations, as well as the interpretation contained in the DEA&DP s Guideline on Alternatives, should be adhered to. So, in order to determine the drawbacks and benefits of operating the recycling facility against the baseline of no such facility being established, the No-Go Option is considered in this case to be the option of the facility ceasing to operate. The option of shutting down the facility will thus be assessed in detail against the activity; site; process; and design, layout and operational alternatives found to be reasonable and feasible for the purposes of recycling or disposing of used oils. This comparative assessment will be undertaken during the EIA phase. Public Participation A key component of the Scoping process i.e. where possible impacts associated with the proposed activity are identified, is public participation. Public participation allows stakeholders to assist in identifying issues or concerns around the activity which may need further investigation or assessment. In this way, stakeholders can also contribute to the identification of alternatives for achieving the Best Practicable Environmental Option. The various steps in the public participation process are strictly prescribed by the regulations contained in Chapter 6 of the EIA Regulations (contained in Government Notice No. R543 of 2010) and Government Notice No. R982 of 2014, and include the following: - The identification of potential stakeholders and the process whereby these stakeholders are notified of the application process - Providing stakeholders with an opportunity to register as Interested and Affected Parties (I&APs) and to comment on all reports published during the process - The Environmental Assessment Practitioner and the project team then addressing any and all issues raised by registered I&APs; - Then lastly the notification of registered I&APs of the decision which the national DEA and provincial DEA&DP reaches on the Integrated Section 24 G Licence and Air Emissions License application Way Forward A process is a two-stage process: this Scoping phase identifies issues, concerns and possible impacts which may be associated with the waste recycling facility. The Scoping process also generates alternatives which may upon further investigation be preferable for avoiding or minimising the impacts potentially associated with the activity (or maximising the benefits potentially associated). The second phase is the EIA (Environmental Impact Assessment) phase. This phase entails a rigorous assessment of the activity and any alternatives identified to the activity or any aspects thereof. The purpose of the assessment is to determine whether there are any SEC Reference E12113: Draft Scoping Report: WLA, AEL and S24G Technoburn, Athlone Industria 2.

impacts associated with the activity or identified alternatives, which may cause significant harm or benefit to the receiving social, economic and bio-physical environment. Specialist input will guide the impact assessment process, as well as inform required mitigation measures to avoid, minimise or offset detrimental impacts, or maximise benefits, associated with the activity. From the EIA process, preferred alternatives will be determined based on their lesser detrimental impact on the environment, and/or their greater benefit for the environment. The findings of the EIA process will provide the information on which the national DEA will base their decision whether to license the existing and proposed hazardous waste recycling facility. The provincial DEA&DP will similarly use the findings of the EIA process to determine whether to grant the applicant authorisation for the unlawful activities/noncompliance relating to the bulk storage of dangerous good on the site in terms of Section 24G of the NEMA. A Plan of Study for EIA has been compiled, which has been attached as Appendix E. The Plan of Study outlines in detail the process and methodology which the EIA phase will follow and can be referred to for more information. Structure of the Scoping Report Section 1 provides details on the professional competence and independence of the Environmental Assessment Practitioner, SEC. Section 2 provides an introduction including a brief project background and history; and the legal context in which this application for a Licence and for rectification in terms of Section 24G of the NEMA is being made Section 3 provides the regional planning context for the facility; as well as an investigation on the Need and Desirability of the activity, i.e. whether the activity is appropriate given the regional planning and environmental management imperatives for the area. Section 4 provides a description of the receiving social, economic and bio-physical environment in which the activity takes place. Section 5 provides a detailed project description, including information on the recycling process, equipment and infrastructure in place at the recycling facility; and a process flow description including a description of inputs and outputs to the waste recycling process. Section 6 provides a description of the social, economic and bio-physical impacts which have been identified as potentially associated with the activity. Section 7 provides an investigation of the alternatives which have been identified for meeting the general purpose and requirements of the application, which is the recycling of hazardous waste. SEC Reference E12113: Draft Scoping Report: WLA, AEL and S24G Technoburn, Athlone Industria 2.

Section 8 provides detail on the public participation process which will be undertaken during this process. Section 9 provides a brief conclusion and discussion of the way forward for the application process. SEC Reference E12113: Draft Scoping Report: WLA, AEL and S24G Technoburn, Athlone Industria 2.

FINAL SCOPING REPORT INTEGRATED SECTION 24G APPLICATION, WASTE MANAGEMNT LICENSE AND AIR EMISSIONS LICNESE FOR THE OPERATION OF STORAGE, RECYCLING AND REFINING ACTIVITIES FOR WASTE OIL, TECHNOBURN, ATHLONE INDUSTRIA. Table of Contents 1 DETAILS OF ENVIRONMENTAL ASSESSMENT PRACTIONERS... 13 2 INTRODUCTION... 13 2.1 LEGAL FRAMEWORK... 16 2.1.1 Legislation governing waste management activities... 18 The National Environmental Management: Air Quality Act, Act No. 39 or 2004 (NEM:AQA). 19 2.1.2 Legislation governing undertaking of waste management activities... 47 3 REGIONAL PLANNING CONTEXT AND THE NEED AND DESIRIBILITY OF THE ACTIVITY... 49 4 DESCRIPTION OF RECEIVING ENVIRONMENT... 56 4.1 INTRODUCTION... 56 4.2 BIOPHYSICAL ENVIRONMENT... 58 4.3 SOCIO-ECONOMIC ENVIRONMENT... 59 6. PROCESS FLOW DISCRIPTIONS... 62 PROCESS 1 TEMPORARY STORAGE OF WASTE OIL... 62 STATUS: INSTALLATION OF TANK FARM COMMENCED WITH IN 2011 AND IS ON-GOING... 62 PROCESS 2 RB24 (CUTBACK BITUMEN) PROCESSING... 64 STATUS: NO LONGER IN OPERATION. OPERATED FROM NOVEMBER 2012 TO MARCH 2013... 64 PROCESS 3 HEAVY OIL AND LIGHT OIL BLENDING... 65 STATUS: PROCESS COMMENCED WITH IN 2008 AND IS ONGOING... 65 PROCESS 4 WASTE WATER TREATMENT... 67 STATUS: NO LONGER IN OPERATION. OPERATED FROM NOVEMBER 2012 TO FEBRUARY 2013... 67 PROCESS 5 WASTE MARINE SLOPS... 69 STATUS: NO LONGER IN OPERATION. IN OPERATION FROM EARLY 2012 TO JULY 2013... 69 PROCESS 6 VACUUM DISTILLATION UNIT... 71 STATUS: NO LONGER IN OPERATION. IN OPERATION FROM MARCH 2012 TO JULY 2012... 71 PROCESS 7 LO2C PROCESSING... 73 STATUS: PROCESS COMMENCED WITH IN JUNE 2012 AND IS ONGOING... 73 PROCESS 8 SULPHONATION... 74 5 IMPACTS IDENTIFIED AS POTENTIALLY ASSOCIATED WITH THE OIL RECYCLING FACILITY... 76 5.1 IMPACT ON PEOPLE AND ASSETS DUE TO A MAJOR INCIDENT AT THE SITE... 77 5.2 CONTAMINATION OF SOIL AND FRESHWATER ECOSYSTEMS... 77 5.3 IMPACT ON HUMAN HEALTH DUE TO PRODUCT HANDLING... 78 5.4 IMPACT ON AIR QUALITY DUE TO EMISSIONS ASSOCIATED WITH OPERATING THE FACILITY... 78 5.5 IMPACT OF USED OIL RECYCLING ON SCARCE, FINITE NATURAL RESOURCES... 79

5.6 SOCIO-ECONOMIC IMPACTS ASSOCIATED WITH THE RECYCLING FACILITY... 80 6 METHODOLOGY TO BE ADOPTED IN THE ASSESSMENT OF POTENTIAL IMPACTS DURING THE ENVIRONMENTAL IMPACT PHASE... 80 7 INVESTIGATION OF ALTERNATIVES FOR MEETING THE GENERAL PURPOSE AND REQUIREMENTS OF THE APPLICATION... 81 7.1 INTRODUCTION... 81 7.2 ACTIVITY ALTERNATIVES... 82 7.3 SITE ALTERNATIVES... 83 7.4 DESIGN, LAYOUT AND OPERATIONAL ALTERNATIVES... 84 7.5 PROCESS ALTERNATIVES... 86 7.6 THE NO-GO OPTION... 88 7.7 SUMMARY OF ALTERNATIVES AND WAY FORWARD... 88 8 PUBLIC PARTICIPATION PROCESS... 89 8.1 IDENTIFICATION OF AND COMMUNICATION WITH STAKEHOLDERS... 89 8.2 ISSUES RAISED BY INTERESTED AND AFFECTED PARTIES... 90 9 CONCLUSION AND WAY FORWARD... 90 LIST OF DRAWINGS AND APPENDICES Appendix A Appendix B Appendix C Appendix D Drawings Legislation Public Participation Information Specialist Input APPENDICES Site Location Maps Site Photographs Site Development Plans Threatened Ecosystems Status map Vegetation Map Schedule of Legislation Consulted Initial Notification Table Notices Erf 104904, Athlone Industria Timeline and History as provided by Technoburn Process Flow Analysis and Compliance Review, Sillito Environmental Consulting Major Hazard Installation (MHI) Risk Assessment Report ERA Report, Sillito Environmental Consulting Environmental Compliance Audits, Sillito 11

Appendix E Appendix F Appendix G Environmental Consulting VOC Emission Monitoring Report, Ashreq Stack Emission Monitoring Report, Ashreq Rational Fire Design for Class 1 Products Plan of Study for EIA Environmental Authorisation of Storage Tanks License for Storage Tanks APPA Certificates DEA&DP Compliance Inspection Integrated Section 24 G, License and Air Emissions License Application Forms submitted to DEA and DEA&DP Waste Service Provider Accreditation Waste Generator Accreditation Datasheet FO18 TABLES Table 1 Table 2 Table 4 Socio-Economic Statistics for ward 49 of City of Cape Town Process Flow Descriptions Source-pathway-receptor scenario for potential soil and groundwater contamination FIGURES Figure 1 Hierarchy p. 4 Figure 2 Site Location p. 14 12

FINAL SCOPING REPORT INTEGRATED SECTION 24G APPLICATION, WASTE MANAGEMNT LICENSE AND AIR EMISSIONS LICENSE FOR THE OPERATION OF STORAGE, RECYCLING AND REFINING ACTIVITIES FOR WASTE OIL, TECHNOBURN, ATHLONE INDUSTRIA. 1 DETAILS OF ENVIRONMENTAL ASSESSMENT PRACTIONERS Sillito Environmental Consulting (Pty) Ltd (SEC) has been appointed as the independent Environmental Assessment Practitioner (EAP) to submit an Integrated S24G Application, License and Air Emissions License to the national Department of Environmental Affairs (DEA) and the provincial Department of Environmental Affairs and Development Planning on behalf of the applicant, Technoburn (Pty) Ltd. The application process is a single, combined process. This report was prepared by Chantel Muller of SEC, and reviewed by Adrian Sillito. Adrian Sillito is a certified environmental assessment practitioner (CEAPSA), Professional Natural Scientist (Pr.Sci.Nat.) and a member of the International Association for Impact Assessment (IAIA). Adrian has more than 17 years experience in the field of environmental management and impact assessment. Chantel holds an MPhil in Environmental Management from the University of Stellenbosch and has eight years experience in environmental management and impact assessment. She is also a member of IAIA and an Accredited Professional with the Green Building Council of South Africa. SEC has extensive experience in the Scoping and Environmental Impact Assessment (EIA) process and has completed many thousands of such applications in most provinces of South Africa since 2001. SEC does not have and will not have any financial interest in the undertaking of the activity, other than remuneration for work performed in terms of the NEMA, the Environmental Impact Assessment Regulations, 2014 and any specific environmental management Act; and does not have and will not have any vested interest in the proposed activity proceeding. 2 INTRODUCTION 13

Sillito Environmental Consulting (Pty) Ltd (SEC) has been appointed as the independent Environmental Assessment Practitioner (EAP) by the applicant Technoburn (Pty) Ltd. SEC is to facilitate the authorisation/licensing in terms of the relevant environmental legislation for the used oil recycling/recovery facility on Erf 104904, Athlone Industria 2, Cape Town. SEC s scope of works includes undertaking a process to make application for the following authorisations in terms of the relevant environmental legislation: - A Licence in terms of NEM:WA - An Air Emissions License in terms of NEM:AQA - An application for authorisation in terms of Section 24G of the NEMA. Project background and description of the activity Erf 104904 is zoned as Light Industrial and is situated within Athlone Industria 2, Cape Town. An application for Temporary Departure was submitted on 13 December 2013 by TS Town Planning in terms of Section 15(1) (a) (ii) of the Land Use Planning Ordinance, no 15 of 1985 and the application is currently pending. Technoburn (Pty) Ltd stores and distributes fuels for boilers such as HFO, LSO, LO10 and Paraffin, the company also stores and recycles/recovers used oils which are delivered to the site from various sources for conversion into fuel for the use in boilers. The fuel is distributed to clients by means of road tankers which are owned and operated by the company. The company also repairs and services boiler firing equipment which includes test firing on the premises. Past activities on site Please refer to the timeline details and supporting Google images as provided by Technoburn and attached to Appendix D Project Timeline 2003 2008 1. Technoburn purchased the site in 2003 and the site contained 6 x storage tanks of ±50 m³ capacity each. (Google image 8/1/2002) as well as a 25m smoke stack. 2. Technoburn also repositioned these tanks during this time period and moved boilers into the yard space. 3. Technoburn was also distributing oil from FFS Refiners during the period dating from 2007 to 2011. 4. FFS positioned 1 x 83 m 3 ; 1 x 53 m³ and 1 x 33 m³ oil storage tanks on site during October 2006 (refer to Google image 31/01/2007 - Boilers on left. Tanks 14

on right as attached in Appendix D Timeline and History as provided by Technoburn). 5. The bund wall extension and horizontal 83 m³ capacity storage tank was installed during 2007. 2009 - The fuel storage capacities which include the storage of bulk Heavy Fuel Oil (HFO), Low Sulphur Oil (LSO) and Diesel were listed in terms of GN R386 of 21 April 2006, Activity No. 7 and authorised by the DEA&DP on 18 November 2009. This included the following: Eleven x 84 000 L above ground storage tanks (consisting of 1 horizontal product storage tank and 10 vertical product storage tanks) o Seven vertical used oil/water storage tanks o Three fire-fighting water storage tanks together with associated infrastructure. - The construction of the above tank farm commenced during 2010 (refer to Google image 30/11/2010 as attached in Appendix D Timeline and History as provided by Technoburn). Tanks of the tank farm were positioned during 2011. - Upon the completion of the above ground tank farm in 2011 African Green Oil started delivering waste oil to the Technoburn site for further processing. 2010-2014 Vacuum Distillation Unit (VDU) 1. This is a proposed process for which the Amended Final Scoping Report and Plan of Study for the EIA Application was submitted to the DEA&DP by Petrostruct on 7 December 2011 and the application lapsed on 22 April 2013. 2. The VDU infrastructure/equipment was installed during early 2012 before the authorisation was issued and as such has been identified as illegal. Commercial operation of the vacuum distillation unit never commenced and the fuel supply to the infrastructure was disconnected during 17 March 2014. The applicant proposes to decommission and remove the vacuum distillation once the Integrated Section 24 G and licensing process has been finalised. Current/existing Technoburn authorisations 1. The fuel storage capacities which include the storage of bulk Heavy Fuel Oil (HFO), Low Sulphur Oil (LSO) and Diesel were listed in terms of GN R386 of 21 April 2006, Activity No. 7 and authorised by the DEA&DP on 18 November 2009. This included the following: o Eleven x 84 000L above ground storage tanks (consisting of 1 horizontal product storage tank and 10 vertical product storage tanks) o Seven vertical used oil/water storage tanks o Three fire-fighting water storage tanks together with associated infrastructure. o The construction of this tank farm commenced during 2010 (refer to Google image 30/11/2010 as attached in Appendix D Timeline and History as provided by Technoburn). Tanks were positioned during 2011. 15

2. The fuel storage capacities which include the storage of bulk Heavy Fuel Oil (HFO), Low Sulphur Oil (LSO) and Diesel in 11 x 84 000L above ground storage tanks were listed in terms of GN R386 of 21 April 2006, Activity No. 7 and authorised by the DEA&DP on 18 November 2009. 3. A Licence was also granted to Technoburn (Pty) Ltd by the DEA on 4 November 2010 for Listed Activity 2 of Category A of NEM: WA. [(Licence Number: 12/9/11/L404/9; Class: H: H (Used Oil Temporary Storage)] (Please refer to the Environmental Authorisation and Waste Licence attached in Appendix C) Based on a site inspection conducted by the DEA&DP on 11 July 2012, a Compliance Letter was issued to Technoburn on 20 September 2012, indicating that there were various conditions of the Environmental Authorisation that were not being complied with. (Refer to the Compliance Letter issued by DEA&DP on 20 September 2012, attached in Appendix D). Sillito Environmental Consulting (SEC) was then engaged to conduct an environmental audit to assess compliance with the conditions of the Environmental Authorisation, the Environmental Management Plan and to conduct a subsurface and effluent assessment of the conditions of the site. A meeting was held at the DEA&DP on 22 February 2013 to discuss compliance issues relevant to current and future operations at Technoburn. The various issues discussed at the meeting, the process flow information provided by Technoburn and information derived from the environmental audit conducted during December 2012, was then used by SEC as a baseline for a review of the legislative compliance requirements. A Process Flow Analysis and Environmental Compliance Review was submitted to the national Department of Environmental Affairs (DEA) and the provincial Department of Environmental Affairs and Development Planning (DEA&DP) in May 2013. 2.1 Legal Framework In consultation with the DEA&DP as well as with the DEA, it has been ascertained that an integrated application in terms of Section 24G of the National Environmental Management Act, Act No. 107 of 1998 must be followed and will be submitted to both the DEA and DEA&DP. This application will encompass the following: - The non-compliance in terms of current authorisations for bulk storage of dangerous goods on site, namely, fuels for boilers and used lube oils for which the DEA&DP will be the competent authority 16

- Application for consideration of an application in terms of Section 24G of the National Environmental Management Act, Act No. 107 of 1998, as amended (NEMA) and will relate to the unlawfully commenced operating of the effluent treatment plant, of which operation has ceased upon instruction of the DEA&DP, for which the DEA will be the competent authority. - The lapsed application for authorisation of the refining processes (VDU unit), operation of which has ceased upon instruction from the DEA&DP, for which the DEA will be the competent authority. - Application for consideration of an application in terms of Section 24G of the National Environmental Management Act, Act No. 107 of 1998, as amended (NEMA) and will relate to the the unlawfully commenced activities as currently undertaken on site in terms of the recycling and treatment of hazardous waste (used lube oils) for which the DEA will be the competent authority. - Application for consideration of an application in terms of Section 24G of the National Environmental Management Act, Act No. 107 of 1998, as amended (NEMA) and will relate to the the unlawfully commenced activities as currently undertaken on site in terms of the storage of other types of hazardous waste (high calorific hydrocarbon type wastes) for which the DEA will be the competent authority. - - The proposed process will also include the applications for appropriate waste management and air emissions licences. - Applications for effluent discharge permits and the development of a waste management plan in terms of local bylaws will also be made to the City of Cape Town. - Registration as a hazardous waste producer in terms of the Integrated Pollutant and Waste Information System (IPWIS) of the DEA&DP will also take place. The list of Activities published under the NEM:WA (which appears in Government Notice No. 718 of 2009 and Government Notice No.921 of 2013) and the list of activities which result in atmospheric emissions which have a detrimental effect on the environment under NEM:AQA (Government Notice No. 248 of 2010,Government Notice No. 893 of 2013 and Notice 551 of 2015) read together with the Environmental Impact Assessment (EIA) Regulations published in 2006, 2010 and 2014 under the National Environmental Management Act, Act No. 107 of 1998, as amended (NEMA), have been consulted. According to this legislation and advice obtained from the provincial DEA&DP and the national DEA, a single integrated process must be followed to make application for the following: - A Licence in terms of NEM:WA - An Air Emissions License in terms of NEM:AQA 17

- An application for authorisation in terms of Section 24G of the NEMA. 2.1.1 Legislation governing waste management activities Technoburn (Pty) Ltd stores and distributes fuels for boilers such as HFO, LSO, LO10 and Paraffin, the company recycles used oils which are delivered to the site from various sources for conversion into fuel predominantly for the use in boilers. These products are classified as hazardous waste and so the facility can be classified as a waste management facility, falling into the recycling and energy recovery category of the waste management hierarchy depicted in Figure 1: Figure 1 Hierarchy The National Environmental Management Waste Act, Act No. 59 of 2008 (NEM:WA) The National Environmental Management Waste Act, Act No. 59 of 2008 (NEM:WA) was promulgated in 2008. The Act is generally intended to give effect to Section 24 of the Constitution in order to secure an environment that is not harmful to health and wellbeing. The Act states that its object is to protect health, well-being and the environment by providing reasonable measures for amongst others, (i) minimising the consumption of natural resources and reducing, re-using, recycling and recovering waste. To this end, Chapter 5 of the NEM:WA prescribes the process for the licensing of waste management activities. In terms of Chapter 5, a list of waste management activities that have, or are likely to have, a detrimental effect on the environment was published in Government Notice No. 718 of July 2009 as amended in GN no. 921 published November 2013 and in GN No. 332 in May 2014. GN No. 921, read together with Chapter 5 of the NEMWA, states that if a waste management activity is taking place 18

which triggers any of the activities contained in GN No. 921, then an environmental authorisation process as prescribed by the Environmental Impact Assessment (EIA) Regulations is required. Category A of GN No. 921 lists the waste management activities that require a Basic Assessment process to be undertaken; whilst Category B lists the activities that require a process and Category C lists waste management activities that require compliance to the relevant requirements or standards determined by the Minister including specifically the Norms and Standards for Storage of Waste, 2013. The National Environmental Management: Air Quality Act, Act No. 39 or 2004 (NEM:AQA) In terms of the list of minimum emissions standards published in terms of Section 21 of the NEM:AQA, there are certain activities with related air quality impacts which need to be licensed prior to commencement. Section 38 of the NEM:AQA stipulates the requirements for an application for an Atmospheric Emissions Licence (AEL). These include the completion of the application form published by the air quality authority, as well as public participation. The AEL application process has been integrated with the application process and the public participation processes will run concurrently. An AEL Application form will be submitted to the National DEA for their decision. The National Environmental Management Act, Act No. 107 of 1998 (NEMA) The EIA Regulations are contained in Government Notice No. 543 published in 2010 in terms of the National Environmental Management Act, Act No. 107 of 1998, as amended (NEMA). These regulations contain the procedural and information requirements for either a Basic Assessment or a -type authorisation process. Please refer to the current and future proposed activities on Erf 104904, in the form of Process Summaries 1 together with triggered activities in terms of NEM:WA, NEMA and NEM: AQA. 1 Detailed Process Flow Descriptions contained in Section 5 of this report 19

PROCESS 1: Temporary Storage and treatment of Waste Oil Status: Installation of the tank farm 2 commenced in January 2011 and is ongoing. Legislation triggered at the time of commencement: NEMA EIA Regulations 2010 NEM: WA Listed Activities 2009 NEM: AQA 2010 Process Summary: Waste oil received, which contains 6 20% water is placed into above ground storage tanks and allowed to separate by means of gravity. The separated waste water is then removed to a licenced waste disposal facility with certificates of safe disposal issued and the oil fraction is blended & sold to Customers. Storage Capacities: Current: 50 m 3 200 m 3 Maximum future expansion: 1 000 m 3 Listed activities triggered at the time of commencement in terms of NEMA, NEM:WA and NEM:AQA Activity Trigger Legislation Proposed Requirement Temporary Storage of Used Oil (Dangerous Good) Storage of a hazardous substance in excess of 500 m 3 NEMA EIA Regulations 2010 GN 545 Listing Notice 2 Application Activity 3 Water/oil gravity separation of water and oil contained in used The reuse and recycling of hazardous waste. NEM: WA Listed Activities 2009 GN No. 718 2 Refer to the timeline on Page 6 & 7 detailing the timeframes and capacities of the tank farm installations 20

oil product. (hazardous waste) Category B (2) Water/oil gravity separation of water and oil contained in used oil product. (hazardous waste) The recovery of hazardous waste NEM: WA Listed Activities 2009 GN No. 718 Category B (3) Water/oil gravity separation of water and oil contained in used oil product. (hazardous waste) The biological, physical or physic-chemical treatment of hazardous waste at a facility that has the capacity to receive in excess of 500 kg of hazardous waste per day. Activities 2009 GN No. 718 Category B (4) Water/oil gravity separation of water and oil contained in used oil product. (hazardous waste) The treatment of hazardous waste using any form of treatment regardless of the size or capacity of such a facility to treat such waste. Activities 2009 GN No. 718 Category B (5) Facilities used for undertaking of the activities The construction of facilities for activities listed in Category B Activities 2009 GN No. 718 Category B (11) Temporary Storage of Used Oil (Hazardous Waste) Storage and Handling of Petroleum Products All permanent immobile liquid storage tanks larger than 500 cubic metres cumulative tankage capacity at site. NEM:AQA Listed Activities 2010 GN No.248 Category 2, Sub- Category 2.2 Atmospheric Emissions Licence Application Similarly listed activities in listing notices published post 2012 for NEMA, NEM:WA 21

and NEM: AQA Temporary Storage of Used Oil (Dangerous Good) Storage of a hazardous substance in excess of 500 m 3 NEMA EIA Regulations 2014 GN R.984 Listing Notice 2 Application Activity 4 Temporary Storage of Used Oil (Hazardous Waste) Storage of hazardous waste Activities 2013 GN No. 921 Category C Compliance with relevant norms and standards as per Category C 5.a) Water/oil gravity separation of water and oil contained in used oil product. (hazardous waste) The reuse and recycling of hazardous waste. NEM: WA Listed Activities 2013 GN No. 921 Category B (2) Water/oil gravity separation of water and oil contained in used oil product. (hazardous waste) The recovery of hazardous waste NEM: WA Listed Activities 2013 GN No. 921 Category B (3) Water/oil gravity separation of water and oil contained in used oil product. (hazardous waste) The treatment of hazardous waste in excess of 1 ton per day using any form of treatment excluding the treatment of effluent, wastewater or sewage Activities 2013 GN No. 921 Category B (4) Facilities used for undertaking of the activities The construction of facilities for activities listed in Category B Activities 2013 GN No. 921 Category B (10) Temporary Storage of Used Oil (Hazardous Storage and Handling of Petroleum Products NEM:AQA Listed Activities 2013 GN No. 893 Atmospheric Emissions Licence Application 22

Waste) Category 2, Sub- Category 2.4 In terms of the legal compliance of the temporary storage and treatment processes with respect to the NEM: AQA, the applicant has confirmed that this process does not trigger Category 2: Sub-category 2.3: Industrial fuel oil recyclers of the listed activities in terms of the NEM: AQA 2010 and Category 2: Sub-category 2.5 in terms of NEM: AQA 2013 since the current capacities and future proposed capacities of the facility falls below the 5 000 tons of throughput per month. PROCESS 2: RB24 (Cutback Bitumen) Processing Status: No longer in operation. Operated from November 2012 to March 2013 Legislation triggered at the time of commencement: NEMA EIA Regulations 2010 NEM: WA Listed Activities 2009 NEM: AQA 2010 Process Summary: Cutback Bitumen which contains a mixture of asphalt, kerosene and medium aliphatic petroleum solvent is placed into above ground storage tanks for temporary storage. It is then heated to allow for pumping and then separated into light and heavy fractions by centrifuging and then placed in storage for sale. The heavy fraction is burnt in the Technoburn boiler as fuel. Storage capacities: On average 100 m 3 per month Listed activities triggered at the time of commencement in terms of NEMA, 23

NEM:WA and NEM:AQA Activity Trigger Legislation Proposed Requirement Temporary Storage of Cutback Bitumen (Dangerous Good) Storage of a hazardous substance in excess of 500 m 3 NEMA EIA Regulations 2010 GN 545 Listing Notice 2 Application Activity 3 Temporary Storage of Cutback Bitumen (Hazardous Waste) Storage of a hazardous waste in excess of 35 m 3 Activities 2009 GN No. 718 Category A (2) Basic Assessment Separation into heavy and light fractions by means of centrifuging The reuse and recycling of hazardous waste. NEM: WA Listed Activities 2009 GN No. 718 Category B (2) Separation into heavy and light fractions by means of centrifuging The recovery of hazardous waste NEM: WA Listed Activities 2009 GN No. 718 Category B (3) Separation into heavy and light fractions by means of centrifuging The biological, physical or physicchemical treatment of hazardous waste at a facility that has the capacity to receive in excess of 500 kg of hazardous waste per day. Activities 2009 GN No. 718 Category B (4) Separation into heavy and light fractions by means of centrifuging The treatment of hazardous waste using any form of treatment regardless of the size or capacity of Activities 2009 GN No. 718 Category B (5) 24

such a facility to treat such waste. Facilities used for undertaking of the activities The construction of facilities for activities listed in Category A Activities 2009 GN No. 718 Category A (18) Facilities used for undertaking of the activities The construction of facilities for activities listed in Category B Activities 2009 GN No. 718 Category B (11) Heavy fraction burnt in boiler as fuel Combustion installations not used primarily for steam raising or electricity generation NEM: AQA Listed Activities 2010 GN No.248 Category 2, Subcategory 2.1 Atmospheric Emissions Licence Application Temporary Storage of Cutback Bitumen (Hazardous Waste) Storage and Handling of Petroleum Products All permanent immobile liquid storage tanks larger than 500 cubic metres cumulative tankage capacity at site. NEM:AQA Listed Activities 2010 GN No.248 Category 2, Sub- Category 2.2 Atmospheric Emissions Licence Application 25

Similarly listed activities in listing notices published post November 2012 for NEMA, NEM:WA and NEM: AQA Temporary Storage of Cutback Bitumen (Dangerous Good) Storage of a hazardous substance in excess of 500 m 3 NEMA EIA Regulations 2014 GN 984 Listing Notice 2 Activity 4 Temporary Storage of Cutback Bitumen (Hazardous Waste) Storage of a hazardous waste Activities 2013 GN No. 921 Category C Compliance with relevant norms and standards as per Category C 5.a) Separation into heavy and light fractions by means of centrifuging The reuse and recycling of hazardous waste. NEM: WA Listed Activities 2013 GN No. 921 Category B (2) Separation into heavy and light fractions by means of centrifuging The recovery of hazardous waste NEM: WA Listed Activities 2013 GN No. 921 Category B (3) Separation into heavy and light fractions by means of centrifuging The treatment of hazardous waste in excess of 1 ton per day using any form of treatment excluding the treatment of effluent, wastewater or sewage Activities 2013 GN No. 921 Category B (4) Facilities used for undertaking of the activities The construction of facilities for activities listed in Category B Activities 2013 GN No. 921 Category B (10) Temporary Storage of Cutback Bitumen Storage and Handling of NEM:AQA Listed Activities 2013 GN Atmospheric Emissions Licence 26