Oil Storage
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IN THIS ISSUE |
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WELCOME |
It’s a while since my last newsletter. The reason? – I am pleased to be able to report that as a company we have been experiencing unprecedented activity with new clients, additions to our staff and changes to our working practices.
From time to time, we all face the same kind of pressures and if it means delaying a newsletter; that is a disappointment. Unfortunately, for some people it means putting off far more serious matters such as attending to outstanding health and safety issues.
This month’s main article is a little along those lines insofar as some legislation is introduced well ahead of the time when it actually comes into force. The idea is to provide a breathing space during which organisations can make suitable arrangements to comply with the new legislation. Unfortunately, it too often happens that we fail to take advantage of such forewarning.
The item under Case Law follows a similar theme where we don’t have time to do things right first time, but failing to do so may cost us dear in the long-term.
There are a number of regulatory changes that come into force as of this month (October 2005), as detailed under Legal Monitor. This is in line with the HSE’s new policy to implement domestic changes to UK health and safety regulations on two days each year, namely 6th April and 1st October. If you are not aware of this arrangement, you can read about it on the legal pages of our website (see http://www.edp-uk.com/law_changes.htm and scroll down to the bottom of the page).
David Skews, (CEO)
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OIL STORAGE |
In some cases, legislation is enacted that does not come fully into effect until some considerable time later.
The problem with this approach is that, being only human, we may be tempted to ignore the requirements until nearer to the deadline. Like Christmas, however, the implementation date can creep up on us and instead of having ample time, the issue becomes urgent.
Control of Pollution (Oil Storage) Regulations
Just such a situation exists with the “Control of Pollution (Oil Storage) (England) Regulations”, which was enacted in 2001. It affected the installation of new storage facilities as early as March 2002 and another deadline passed in September 2003 when any existing oil storage that was considered to be “at significant risk” had to comply.
However, for everyone else, which is possibly the majority, the Regulations took effect from the 1st September 2005
You may be thinking that you are not affected by these regulations but if you store any form of oil in significant quantities for heating or power then you might be. In the regulations themselves, there is no precise definition of what constitutes oil but it certainly includes substances such as diesel and petrol as well as any type of vegetable, mineral or synthetic oils.
If an organisation is storing 200 litres or more of oil above ground, then the new regulations apply. That includes industrial premises and many non-industrial sites such as schools, shops, hotels, churches, hospitals and a host more.
Even domestic premises may be affected, though the quantities involved before they are subject to the requirements of this legislation are somewhat greater, at 3,500 litres.
What is so Important About Storing Oil?
Pollution incidents are having a significant adverse effect on our environment and in a typical year there are around 14 incidents related to the storage of oil every day.
Most incidents result from leakage, which may occur at the time the oil is delivered or because of storage problems thereafter.
The consequences of such leaks can be catastrophic for wildlife, including fish. It can also affect human health and, of course, is detrimental to the environment in general.
Broadly speaking, the solution to all these problems is to provide some means of secondary containment for the oil so that if there is a leak from the primary storage facility, it is not able to escape and cause contamination of the surrounding environment – a precaution known as “bunding”.
So What Exactly is “Bunding”?
A “Bund” is an arrangement to contain leakage of liquid from storage tanks or associated pipework and fittings. Whatever the precise nature of the arrangement, it must be capable of containing well in excess of the amount of liquid that is stored within the “bunded” area.
A “bunded tank” is a tank that has a double skin – in effect it is a tank within a tank. The inner tank is used as the primary form of storage but if it is overfilled or leaks, a pollution incident is avoided because the liquid collects in the outer tank, from where it can be disposed of in a safe manner.
There are a number of situations where bunded tanks are a mandatory requirement, including commercial and agricultural premises, along with other locations (including domestic) that are considered to be environmentally sensitive.
Where is the Major Risk Factor?
The risk arising from the storage of oil has a great deal to do with its proximity to water, such as rivers, canals, wells, etc. In fact, if the store is within 10 metres of a water course or 50 metres of a borehole, then it is considered to be a “significant risk”.
Oil stored near marinas may or may not be covered by these regulations. However, storage facilities not covered by these regulations will certainly be covered by other legislation such as the Petroleum Consolidation Act or may come under the jurisdiction of the harbour master.
What Do the Regulations Require?
As of the 1st September 2005, all organisations that store significant amounts of oil must take steps to ensure accidental spillage or leakage doesn’t result in pollution of the environment. Without going into too much detail, that means:
- The primary containers in which the oil is stored must be strong enough for their intended purpose without risk of bursting or leaking.
- In the event that there is a leak, then there must be secondary containment to ensure the oil is not able to escape. The secondary containment may take a variety of forms and there are defined capacities that vary according to the size and nature of the primary storage.
- The protection provided by the secondary containment must encompass the primary container, any valves, related pipework, sight gauge, etc.
- The oil storage installation must be protected from damage by impact or collision. Ideally, this would be by locating it in a safe place. Alternatively, protection may be provided by some form of protective barrier.
- Other protective measures may also be required if, for example, there is any underground pipework connected to the storage.
As of the 1st September 2005, the regulations only apply to England, but regulations for Scotland are expected shortly afterward, followed by Wales and Northern Ireland.
There are some exceptions and exemptions but by and large these tend to be because alternative legal arrangements are in place
Enforcement
In England, the enforcing authority for these regulations is the Environment Agency. Typically, if your storage facilities fail to satisfy the regulations, they will offer advice as to how they can be made compliant. If you then fail to act on their advice, they have the authority to serve a notice requiring that appropriate action be taken. Failure to comply with such a notice, of course, is a criminal offence.
Such action on the part of the Environment Agency is essentially a preventative measure, but they can and do take action against those who cause pollution. In this regard, the Agency recognises four categories of pollution incidents, namely:
- Category 1 – Most serious incidents
- Category 2 – Significant incidents, though less severe than Category 1
- Category 3 – Minor incidents that nevertheless have some degree of environmental impact
- Category 4 – Incidents that have no environmental impact
The Environment Agency considers all Category 1 and 2 incidents to be serious and takes enforcement action against those who are responsible. As an indication, in 2003 the Agency prosecuted 266 companies, resulting in average fines of more than £8,000, with many receiving fines in excess of £10,000.
We can see that failing to comply with the regulations is not a cheap option. Having been prosecuted and fined, each company would still be faced with the cost of cleanup and bringing their storage facilities up to standard.
So, time has run out for those old and leaky oil storage facilities. If you haven’t already done so, call in a professional health and safety consultant to examine your installation and carry out an appropriate assessment of the risks.
See edpFRAMEWORK for a broader perspective on Managing Health & Safety
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CASE LAW |
The fundamental activity that underpins virtually all health and safety in the UK is the Risk Assessment, yet it is surprising how often we find companies where risk assessments are woefully inadequate.
Another situation that we come across is where risk assessments have been performed but no action has been taken on the results. In either case, the human consequences can be very serious – as can the financial consequences for the organisation.
The HSE recently released details of a court case involving a paper recycling company in Norwich. Briefly, the details of the case were that an employee lost his life when he climbed inside a paper processing machine to clear a blockage. The machine started up while he was still inside, fatally injuring him.
The subsequent investigation identified a number of fundamental failures that included:
- The machine was not properly isolated whilst the work was being carried out. In fact there was no convenient means of doing so.
- The machine’s electrical controls were contaminated with dust
- There was no safe system of work in place for carrying out the work
In practice, all these shortcomings should have been identified by a “suitable and sufficient risk assessment”. Not only so, but the remedial actions need not have been particularly expensive.
Failure to carry out these fundamental actions however, proved very expensive:
- The company was fined £30,000
- They were required to pay legal costs of £55,000
- The company director received a 12 month custodial sentence for manslaughter
In addition, of course, the company would have incurred unspecified but significant costs, for example lost time during the investigation, major harm to its reputation as an employer and supplier.
All of this is on top of the heavy human cost that was born by the employee and his family.
The HSE’s inspector urged all employers to look again at their business activities and their risk assessments. Such advice has to make sense when we see the consequences of failing to do so.
You can read full details of the case on the HSE website at:
http://www.hse.gov.uk/press/2005/e05122.htm
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LEGAL MONITOR |
The 1st October is one of the two dates in the year when the HSE introduces changes to domestic UK health and safety regulations. A number of changed regulations have been introduced but most of them are expected to have only minor repercussions for business. They include:
- Tank Vehicle (Loading & Unloading of Petroleum Spirit) Regulations
Existing regulations have been revised to be short and straightforward. However, they don’t involve any change in legal duties
- Genetically Modified Organisms (Contained Use) (Amendment) Regulations
The major change affects those who transport Genetically Modified Organism into or out of the European Community. They must inform the Biological Clearing House and the European Commission of transboundary movements.
- Biocidal Products (Amendment) Regulations
Affects who within the biocides industry needs to pay an annual levy
- The General Product Safety Regulations
Require producers and distributors of new and used consumer products to adopt best practice in terms of ensuring the continuing safety of their products throughout each product’s operational life.
We have done a full review of our “Changes to Health & Safety Law” web page – removing some changes that have already occurred and bringing others up to date with the latest available information. You can view the current state of play at
http://www.edp-uk.com/law_changes.htm.
View anticipated Changes to Health & Safety Law. Then decide how you might be affected and if you need to make changes in preparation.
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David Skews, (CEO)
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EDP Health Safety & Environment Consultants Ltd
Lakeside, Alexandra Park, Prescot Road, St. Helens, Merseyside, UK
Telephone: +44(0)1744 766000
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