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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2010-05-11 Daily Xml
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POINT LOWLY

The Hon. M. PARNELL (15:19): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about Point Lowly.

Leave granted.

The Hon. M. PARNELL: In 2008, a major oil leak was discovered under the Santos refinery at Point Lowly, within close proximity to the breeding ground of the extraordinary giant Australian cuttlefish. In November last year, Santos announced that a barrier would be in place by the end of that year to stop the leak entering the sea. In January this year, with the barrier still not complete, it was reported that the Environment Protection Authority was investigating whether Santos breached its licence as a result of the leak.

In the middle of March this year, reports started circulating that the fuel leak had already reached the local groundwater table and that all interventions to that point to stop the leak spreading had failed. As a result of these reports I raised concerns in the media about the lack of detailed information forthcoming from Santos and the EPA.

On 16 March this year, in response Santos said that it still did not know the source of the leak, despite reporting in January what it thought was the source. Despite this, Santos plant manager Warren Kruger confidently declared on ABC radio that 'it has been contained within the confines of the plant and the size of the plume is not growing'.

Six days later on 22 March, after the state election—and members would be aware that industrial development at Point Lowly was an important issue for the electors in Whyalla—the EPA finally contradicted Santos's claim by saying that the oil had migrated beyond the plant. At the time the EPA said that the investigation into whether Santos had broken any laws during its oil spill at its Port Bonython plant was continuing. My questions are:

1. Who is telling the truth—is it Santos or the EPA—over the size of the Port Bonython refinery leak? How far has the leak actually spread?

2. When will the investigation into the oil leak at the Santos refinery, including whether Santos has broken any laws, be completed?

3. What guarantee will the minister give that the delicate marine environment at Point Lowly will be safe from current and future industrial development—which includes a desalination plant, new refineries and a mineral export port—when a two year old pollution leak from a current refinery on the site has still not been contained?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Industrial Relations, Minister Assisting the Premier in Public Sector Management) (15:21): The questions relate to what the EPA is doing in relation to the leak from the Santos terminal. As they are not within my portfolio, I will take that part of the question on notice and obtain information as to current situation. It is my understanding that when this leak was discovered bunding or extra bunding was constructed immediately around the site so there would be containment of any leakage from the site, but I will seek further information.

The honourable member asked about future development. I am aware that Stuart Petroleum had a proposal for the storage of diesel in the Port Bonython region. These tanks are many years old. I think they were constructed in the 1970s or 1980s when the original terminal was built. In relation to approvals that were given for the more recent proposal, there is now a requirement for sealing underneath any storage tanks that are used.

I am told that these leaks are extremely difficult to determine. It is not that Santos has not being trying. I believe it has spent tens of millions of dollars trying to rectify the problem. I do not think it would be fair to suggest that Santos has not been trying to deal with the problem. Clearly, it is very much in its interests to do so, but apparently it is very difficult to determine leaks under storage tanks.

It is my understanding that for future approvals there will be a requirement for more modern techniques in relation to an improved underfloor containment should any leaks occur. In relation to a similar problem recurring with new development, I believe that matter has been addressed. In relation to the current situation with the EPA, I will seek that information from my colleague in another place.

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