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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 (UPSS Regulation) was gazetted on 28 March 2008 (NSW Gazette) and commences 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

Improving the Environmental Management of Underground Petroleum Storage Systems:
0874upssreg.pdf (195 kb, requires Acrobat Reader)

Download the UPSS Regulation: upssreg2008.pdf (449 kb,  requires Acrobat Reader)

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 DECC welcomes any feedback on them before their finalisation in the near future.

Download the draft guidelines: 08114upssdrftglines.pdf (517 kb, requires Acrobat Reader)

Comments on the draft guidelines should be directed to the following addresses up till Friday 30 May 2008:

Contaminated Sites: UPSS
Department of Environment and Climate Change NSW
PO Box A290
Sydney South 1232

Email: upssreg@environment.nsw.gov.au

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).

Download the UPSS Regulation Exemption Plan: 08187upssexemptionplan.pdf (98 kb,  requires Acrobat Reader)

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 2A).

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.

DECC welcomes any feedback on the Exemption Plan before their finalisation in the near future. Comments should be provided along with any comments on the draft guidelines and should be directed to the following addresses up until Friday 30 May 2008:

Contaminated Sites: UPSS
Department of Environment and Climate Change NSW
PO Box A290
Sydney South 1232

Email: upssreg@environment.nsw.gov.au

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. The actual locations, dates and times will be announced in the near future.

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.

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, along with a draft of the proposed UPSS Regulation, and released for public consultation in February 2006.

Download RIS - Proposed Protection of the Environment Operations (Underground Petroleum Storage Systems) Regulation 2005: 06007UPSSRISReg.pdf (155 kb,  requires Acrobat Reader)

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.

Download a summary of the revised cost-benefit analysis: UPSScba.pdf (16 kb,  requires Acrobat Reader)

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

Download these responses: UPSSRISresponse.pdf (53 kb,  requires Acrobat Reader)

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: 07 May 2008