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Underground petroleum storage systems

Underground petroleum storage systems (UPSS) have the potential to leak, leading to expensive clean-up bills and damage to the environment. Persistent leaks can have a major impact on neighbouring properties and impose very significant costs on the tank owner and the broader community.

A new Regulation requires owners and operators to regularly check for leaks in the fuel tanks and pipes used to store and handle petroleum products. They also now need to meet minimum standards in their day-to-day environmental management of these storage systems.

The Protection of the Environment Operations (Underground Petroleum Storage Systems) Regulation 2008 (Regulation) was gazetted on 28 March 2008 (NSW Gazette) and commenced on 1 June 2008. The Regulation aims to:

  • introduce preventative measures to reduce harm to the environment and human health
  • save money and minimise time-consuming remediation by preventing leaks or dealing with them early
  • ensure industry best practice is followed
  • ensure appropriate validation and decommissioning of systems and sites.

Under the Regulation, it is against the law to continually allow or ignore contamination resulting from a leaking or faulty UPSS.

The person responsible for a UPSS (usually the owner/operator) will be required to have in place:

  • a system for detecting and monitoring leaks
  • groundwater monitoring wells at sensitive locations and a program to test them
  • an Environment Protection Plan for the facility
  • systems in place for record keeping, reporting of leaks and notifying the local council when a UPSS is decommissioned.

More on the UPSS Regulation

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Guidelines for implementing the UPSS Regulation

To assist those responsible for a UPSS to understand and comply with the Regulation, the Department of Environment and Climate Change (DECC) has prepared Guidelines for Implementing the POEO (Underground Petroleum Storage Systems) Regulation 2008. The guidelines are now available in draft form and will be finalised in the near future.

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Guide for planning consent authorities

This guide has been prepared to assist planning consent authorities (usually local councils) carry out their development control activities for premises that include UPSS. DECC is releasing it in draft form to allow comment from stakeholders before it is finalised in early 2009. The closing date for comments to the addresses shown in the draft guide is 27 February 2009. 

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Exemptions from the UPSS Regulation

Some operators of a UPSS may be exempted from meeting certain requirements of the UPSS Regulation. Details of the types of exemptions and who may be eligible for them are available in the UPSS Exemption Plan (which is also available as Appendix I of the Guidelines for implementing the UPSS Regulation).

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The UPSS Regulation Exemption Plan allows for some UPSS sites, principally those outside a designated 'UPSS sensitive zone', to seek an exemption from installing and maintaining groundwater monitoring wells (Class 2).

Detailed instructions on the way to obtain an exemption from the UPSS Regulation are provided in the UPSS Guideline. Refer to this document for the relevant forms and information required.

Environment Protection Plan

The UPSS Regulation requires the development of an Environment Protection Plan (EPP) for a UPSS that must be retained on-site. The EPP must contain the documented procedures and records relating to the UPSS that are specified in Clause 19 of the UPSS Regulation.

As specified in the Regulation, the EPP must include:

  • specific information about the storage system (download form), including naming a 'Person Responsible' for the system
  • a loss monitoring procedure
  • an incident management procedure
  • a maintenance schedule
  • the current 'as built' drawings for the system
  • a plan for the storage site
  • a copy of each list of industry standards that have been followed
  • a copy of all specifications used

For more information on the EPP, please contact a member of the UPSS Team or sign up to attend an information session on the UPSS Regulation.

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UPSS Regulation and guideline information sessions

DECC is planning public presentations around NSW to explain the new Regulation. Potential locations include: Sydney, Hurstville, Newcastle, Wollongong, Armidale, Wagga Wagga, Dubbo, Coffs Harbour, Bathurst. The actual locations, dates and times will be announced when sufficient interest has been expressed.

If you would like to attend a presentation, please register your interest via email to upssreg@environment.nsw.gov.au.

Please include the following details in the registration email:

  • your name
  • your organisation
  • your address
  • a contact phone number during business hours
  • your preferred location
  • your area of interest - Owner or Operator, Service Provider, Council, or Consultant.

Regulatory Impact Statement

As part of its preparation of the UPSS Regulation, DECC prepared a cost-benefit analysis which showed that the benefits of implementing the new Regulation would significantly outweigh the costs. The analysis was published in a Regulatory Impact Statement (RIS), along with a draft of the proposed UPSS Regulation, and released for public consultation in February 2006.

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During the consultation period, new cost figures provided by the petroleum retail industry prompted a revision of the cost-benefit analysis. However this updated analysis still showed the benefits outweighing the costs.

DECC also responded to matters raised by interested parties during the consultation.

Need to find out more?

Phone DECC's Environment Line on 131 555 (toll free in NSW).

Email: upssreg@environment.nsw.gov.au

 

 

Page last updated: 16 December 2008