Metropolitan Collieries

On 6 September 2023, following an extensive investigation, the EPA commenced proceedings against Metropolitan Collieries in the NSW Land and Environment Court for alleged licence breaches associated with water pollution incidents that occurred in 2022.

Clean up of Camp Gully Creek

The NSW EPA inspected the Metropolitan Collieries' premises on several occasions in 2022 and observed that coal material had deposited on the banks and the bed of Camp Creek.

Metropolitan Collieries started the clean-up of the creek after we issued a Clean-up Notice on 16 September 2022. Metropolitan Collieries has completed the clean-up from the 2022 incidents in line with the requirements of the Clean-Up Notice.

The clean-up involved two phases to ensure minimal impact on the creek and surrounding areas. The first phase focused on the removal of coal material above the waterline. The second phase focused on the removal of coal material beneath the waterline.

Independent ecologists prepared the clean-up approaches and carried out assessments to determine the most appropriate methods:

Clean-up works commenced in Garawarra State Conservation Area and Royal National Park following the National Parks and Wildlife Service considering a Review of Environmental Factors and issuing consent.

Our officers regularly monitored clean-up activities to ensure minimal impacts on the creek and surrounding areas.

In early September 2022, we issued a Prevention Notice to Metropolitan Collieries requiring the following immediate preventative actions:

  • improving stormwater management practices and monitoring
  • increasing stormwater storage capacity
  • more stringent water quality standards prior to any discharge from the site.

Licence review

We began a review of Metropolitan Collieries’ Environment Protection Licence in November 2022. The focus of the review has been on implementing measures to enhance monitoring and improve environmental practices at the site particularly around water management and discharges.

The community were invited to contribute to the review and we have now completed an examination of the 203 submissions received. Issues raised in the submissions include:

  • Environmental effects
    • 144 submissions expressed concern over the environmental effects of discharges from the mine on downstream waterways and the Royal National Park.
  • Regulatory response
    • 108 submissions requested the EPA to revoke EPL 767, and 35 submissions requested the licence to be updated with new conditions. The most requested conditions were for water quality and ecological monitoring programs, pollutant limits, and controlling discharge into Camp Gully Creek.
  • Support for Metropolitan Collieries
    • 59 submissions supported the continued operation of Metropolitan Collieries at Helensburgh. The economic importance of the mine was highlighted.

203 submissions were received from individuals, environment groups, academics, traditional owners and industry representatives. Submissions closed on 3 February 2023. We received 55 form submissions of two different types – 52 from individuals and 3 from industry partners of the mine.

The following table summarises the key issues raised and the EPA’s response to those issues.

Key issue

Raised by

EPA response

Concerns regarding environmental effects of discharges from the mine site on waterways and Royal National Park

144 submissions from individuals, community groups and government bodies.

The EPA considers these important issues. The focus of the licence review has been water management, water discharges and monitoring.

Several of the licence changes seek to minimise the mine’s discharges and potential impacts to the waterways.

The water impact discharge assessment is critical to understanding the potential effects of the discharges on the waterways and is aimed at providing necessary information to determine which pollutants are of potential concern and what their limits should be on the licence. The assessment includes testing of the discharge water quality, downstream macroinvertebrate animal numbers, toxicity of discharged water and metal levels in sediment downstream. The work is due to be completed by the end of September 2023. More detail can be found in condition U1 in the licence.

Organise principal stakeholder meetings including NPWS, EPA, NSW Fisheries, Crown lands, and community groups

1 submission

The EPA intends to offer a meeting to principal stakeholders to discuss the recent licence changes.

Amend licence to include new/updated conditions

35 submissions

The EPA has amended the licence to ensure improved environmental management, particularly focussed on water management, water discharges and monitoring.

These changes can be viewed in the licence.

New pollutant limits (Salinity/EC, turbidity/TSS, metals) and prohibit or control/manage(treat) release of discharge into Camp Gully Creek, especially coal fines

22 submissions

The EPA is requiring Metropolitan Collieries to undertake a water impact discharge assessment. This is critical to understanding the potential effects of the discharges on the waterways and is aimed at providing the necessary information to determine which pollutants and their limits should be captured by the licence. The assessment includes testing of the discharge water quality, downstream macroinvertebrate animal numbers, toxicity of discharged water and metal levels in sediment downstream. The assessment will also provide information to assess whether higher levels of water treatment are necessary to meet water quality guidelines or to minimise environmental impact. The work is due to be completed by the end of September 2023. More detail can be found in condition U1 in the licence.

Additionally, a new condition called a Pollution Reduction Program has been added to the licence requiring investigation of further ways to prevent or minimise the frequency of discharges (condition U4). The condition requires examination of additional storage of water, the diversion of rainfall and stormwater around coal stockpiles, and ways to limit the erosion of fine coal entering the sedimentation basins.

Water quality/ecological monitoring program of waterways (including addition of monitoring points upstream and downstream of discharge point) and real-time, continuous, volumetric and qualitative public reporting of any discharges

22 submissions

The EPA considers these important issues.

The licence changes made in response to the review include the water impact discharge assessment which is an intensive ecological and water quality monitoring study (condition U1).

The EPA has amended the licence requiring Metropolitan Collieries to develop a real-time water quality testing regime that will continuously measure levels of certain parameters like pH, conductivity and turbidity in the main discharge point as well as upstream and downstream in Camp Gully Creek (condition U2). The results are to be made publicly available as soon as practicable via Metropolitan Collieries’ website.

Require remediation plans in case of environmental damage and establish emergency disaster recovery plan and publicly disclose breaches

6 submissions

The EPA considers it critical that all licensees are prepared to respond promptly to pollution incidents. All licensees are required to have Pollution Incident Response Management Plans (PIRMPs) in place which set out procedures to act appropriately in the event of an incident. The EPA intends to ensure that Metropolitan Collieries is ready to act in the event of pollution incidents, including having appropriate approvals in place for remediation activities on National Parks land.

Licensees are required to notify the EPA of licence breaches in the annual return. Annual returns are due to the EPA within 60 days of the end of the reporting period for the licence. Any non-compliances are assessed by the EPA under the EPA’s Regulatory Policy. A summary of non-compliances can be found on the EPA’s public register in the Annual Returns section of the Licence summary webpage.

Review drainage infrastructure and discharge management and tailings dams and ponds to maintain operating capacity of 90%

1 submission

The EPA has amended the licence requiring Metropolitan Collieries to review the stormwater drainage system to minimise the generation of contaminated stormwater and to maximise its capture and treatment prior to discharge (condition U4).

The EPA has amended the licence requiring the routine measurement and removal of coal fine sediment that accumulates in the sediment basins (condition O4). The intention of the conditions is to ensure that coal fines occupy a minimum volume in the basins thereby allowing the majority of the capacity for collection and treatment of rainfall run-off. A level of 80% availability was chosen as a compromise between additional available storage and the frequency of maintenance.

Further remediation of waterways (extend beyond McKell Avenue/full length of Hacking River)

3 submissions

Remediation of the Hacking River would be a complex and logistically difficult undertaking. The remediation zone of Camp Gully Creek, the confluence with Hacking River and down the Hacking River to McKell Avenue was decided by the EPA in conjunction with National Parks and Wildlife Service based on balancing the importance of responding to impacted areas from recent incidents with minimising disturbance within the Royal National Park.

Coal is found further downstream however based on available evidence, the coal is likely to be mostly historical in nature.

A Pollution Reduction Program on accumulated sediment management

1 submission

The EPA has amended the licence requiring the measurement and reporting of levels of accumulated coal sediment in the sediment basins (condition O4.1). A Pollution Reduction Program has been added to the licence requiring investigation of options to minimise generation of coal sediment. Options have to be examined that include:

  • increased capacity to capture and store rainfall runoff
  • reduction in coal fines runoff and contaminated stormwater generated
  • increased rate of removal of water and coal fines from the dams.

More detail is available in the licence (condition U4).

Update the Surface Facilities Water Management Plan

1 submission

The EPA has amended the licence requiring the surface water management plan to be updated with new maps, diagrams and descriptions (Special condition E2).

Regulation against Peabody including fines or revoking the licence

106 submissions

The EPA is investigating the 2022 incidents and will consider regulatory action if breaches of the environment protection legislation are identified. The legal requirements for revoking a licence are set out in section 79 of the Protection of the Environment Operations Act 1997. Reasons for which the EPA can decide to revoke a licence are set out in s79(5).

Support for continued operation of Metropolitan Collieries at Helensburgh, including economic concerns of new conditions or action taken against Peabody and inconsistency with other similar licences

59 submissions

The EPA acknowledges that new regulatory requirements may have economic costs for Metropolitan Collieries. The EPA takes into consideration whether new requirements on licensees can be reasonably and feasibly implemented.
The EPA has liaised with Metropolitan Collieries about the new conditions. The new conditions are aimed at ensuring better environmental outcomes, benefiting the environment and bringing the operations into line with community expectations. While the EPA aims for consistency in licensing similar operations, there are often sound reasons why licensees have site-specific conditions and requirements in the licence.

Out of scope matters including:

  • Funding for investigation into impacts of legacy coal
  • Increase fines for non-compliance

 

4 submissions

There were some issues raised that were out of the scope of the review. We acknowledge these are matters of concern. We will consider these as part of other work.

 

Changes to the licence

Changes to the licence include:

  • requiring a water impact discharge assessment which examines the mine’s water discharges and its impacts on receiving waterways; this information will be used to examine the pollutants and their limits in the licence

  • requiring investigation of further ways to prevent or minimise the frequency of discharges and an options assessment of water treatment for those discharges

  • requiring routine measurement and removal of sediment from the sediment basins

  • more stringent monitoring conditions including testing of chemicals of concern with the information to be reported on the licensee’s website

  • real-time water quality testing including upstream and downstream in Camp Gully Creek with results to be made publicly available on the licensee’s website

  • revisions to the Surface Facilities Water Management Plan based on updated information in water management infrastructure, processes and monitoring

  • a review of the current air quality monitoring network against contemporary standards and revisions to the Air Quality Management Plan.

Metropolitan Collieries must undertake a water discharge impact assessment. The assessment examines the mine’s water discharges and its impacts on receiving waterways. The information will be used to examine the pollutants and their limits in the licence. The issue of pollutants and their limits is a key topic raised in the submissions.

The current licence (no. 767) can be viewed in the public register.