Onslow port dispute heats up

The Shire of Ashburton has stepped up its legal battle with Onslow Marine Supply Base, issuing three new stop work notices to halt decommissioning work for Chevron.

The privately-owned Onslow Marine Supply Base was established to service the oil and gas industry, with a particular focus on decommissioning old offshore platforms and associated equipment.

This is expected to be a huge industry, with oil and gas companies around Australia expected to spend about $60 billion on decommissioning over coming decades.

A study by the Centre of Decommissioning Australia has identified Onslow one of four ports in WA suited to this work.

The Shire of Ashburton says it supports OMSB and its decommissioning work but insists the company has failed to obtain the required development approvals.

A key issue in the dispute is the scope of work to be undertaken at the Beadon Creek site, and whether it constitutes “processing and handling of waste”, as claimed by the shire.

The shire issued three stop work notices yesterday relating to the company’s activities at Beadon Creek.

That followed another stop work notice in December related to construction of a containment bund.

Sub-contractor Liberty Industrial plans to use the bund to dismantle old Chevron equipment before transferring it elsewhere for recycling or disposal.

OMSB chief executive Andrew Natta told Business News his company had completed the containment bund and was continuing with other work while it pursued legal appeals.

The shire and OMSB are facing off in a directions hearing in the State Administrative Tribunal this afternoon and have a related matter listed for the Supreme Court of WA.

“We are looking for clarity,” Mr Natta said.

“We have a right to continue work while it goes to SAT.”

He believes the company has all necessary approvals after obtaining a ‘prescribed premise’ licence from the Department of Water and Environmental Regulation.

The shire’s latest moves come after it rejected a development application lodged by OMSB on December 29 for retrospective approval of its containment bund.

The shire found the application had multiple deficiencies.

“The application represents an unacceptable, piecemeal approach to the development application process by only seeking approval for the works component of the overall development absent the use to which those works are intended to be put,” the shire concluded.

“The submitted noise assessments contain material contradictions and deficiencies that can only be resolved by a substantially revised application and separate approval for works associated with noise controls.”

The shire found the DA was also inconsistent with the strategic intent of its local planning strategy in the Beadon Creek boat harbour.

The area is also used for recreational purposes and been earmarked for a desalination plant that will supply the town’s water from 2025.

Mr Natta described the latest stop work notices as a regrettable step by the shire.

“OMSB has tried to collaboratively discuss these matters with the shire now for the best part of six months to avoid litigation,” he said.

“Unfortunately, any meaningful engagement has been elusive, with the shire instead electing to pursue a litigation pathway that is not helpful at all, including for Onslow ratepayers.”

The OMSB facility has approval to process up to 10,000 tonnes per annum of scrap metal and 3,500tpa of other waste.

Mr Natta characterised it as a reconsolidation hub rather than a scrap metal yard, saying similar work happened at many other ports around the world.

“All of the work we are carrying out on this infrastructure is activity any reasonable person would expect to occur at any port,” he said.

Business News attempted to contact the Shire of Ashburton for comment.