Legal threat to Onslow port facility

A marine base set up to dismantle oil and gas platforms decommissioned by Chevron faces a legal threat from the Shire of Ashburton despite having state government approval.

The shire held a special council meeting last night to approve further legal action, with the companies involved facing fines of up to $1 million if they are found to have breached local planning laws.

Private company Onslow Marine Supply Base has described the council’s actions as extremely inappropriate.

“The shire’s conduct is inappropriate and is well beyond what we would expect of a local government enforcing planning legislation,” managing director Andrew Natta said.

“To date, the shire has approached a range of third parties and made a range of representations in relation to OMSB that are not based in fact and have the potential to impact our reputation and commercial agreements.”

OMSB operates its multi-user port facility at Beadon Creek boat harbour under a lease granted by the state's transport minister and a ‘prescribed premise’ licence granted by the Department of Water and Environmental Regulation.

It said the facility remained primarily a port and for a small period of time would be used to dismantle large steel structures before they were transferred to licensed waste facilities.

The shire characterised it differently, saying it would process up to 10,000 tonnes per annum of scrap metal and 3,500tpa of other waste.

It issued a direction to OMSB in December to cease what it called “the excavation of soil and construction of a bunded laydown area”.

The company responded by taking the matter to the State Administrative Tribunal for mediation.

The shire noted that mediation proceedings are “generally confidential”.

Despite that, it disclosed that OMSB lodged a development application on December 29 for retrospective approval of the containment bund, being built by contractor Liberty Industrial.

In a report prepared ahead of last night’s council meeting, the shire said it had always supported OMSB’s port operations and Chevron’s contribution to the region.

“The shire also acknowledges the demand for, and need for decommissioning of resource sector waste material,” it stated.

“Critically however, the shire’s support for these activities has never obviated the need for the relevant parties to apply for, obtain and comply with all necessary approvals, from the shire and other relevant decision-making bodies.

“This position was specifically and repeatedly reinforced in the shire’s numerous representations to OMSB and Chevron Australia, emphasising the need to obtain development approval before commencing any decommissioning works (construction) or related activities (use of land).”

Mr Natta insists OMSB is compliant.

“We are confident in our ability to comply with all conditions of licences granted to us by relevant agencies, with this compliance in some cases sitting well outside of the statutory powers of any local government,” he said.

“Requesting development approvals for any decommissioning and waste processing activities suggests that we need to consult with the shire on planning matters for every port campaign we handle.

“Our existing approvals expressly permit servicing the resource industry and OMSB has provided the shire with detailed reasons for why it does not believe further approvals are required.”

The shire said it objected to the prescribed licence because the port facility was proximate (40 metres) to Onslow Discovery Park, which provided short and long-term tourist accommodation.

It said the proposed activity, described as scrap metal recycling, should have a minimum buffer of 300 metres.

Mr Natta claimed OMSB enjoyed a “strong level of support for our ongoing operations, including from our nearest neighbour Discovery Park”.

A Chevron Australia spokesperson said the company was committed to progressing decommissioning and rehabilitation activities in a systematic and timely manner to deliver positive outcomes.

"We’re currently undertaking platform removal activities offshore Onslow, as part of the Thevenard Island retirement project, and we’ve engaged several contractors including Liberty Industrial to assist with the process," they said.

“We will continue to support all parties in working together to find a resolution.”