Contents

Executive
summary                                                            I

1                      Introduction                                                                       1

1.1                   Purpose of the Report                                                    1

2                      Environmental Status                                                    2

2.1                   Project Area                                                                         2

2.2                   Environmental Sensitive Receivers                          2

2.3                   Major Construction Activities                                  2

2.4                   Monitoring Schedule of The Reporting Month 2

2.5                   Status of Environmental Approval Documents      2

2.6                   Community Liaison Group Meeting                          3

2.7                   Summary of Non-Compliance With The Environmental
Quality Performance Limits                                                          4

3                      Environmental Issues and Actions                          5

3.1                   Previous
Environmental Deficiencies and Follow-up Actions   5

3.2                   Implementation Status on Environmental Protection
Requirements     6

3.3                   Environmental Monitoring                                        6

4                      Future
Key Issues                                                                 9

4.1                   Key Issues for the Next One Month                           9

4.2                   Impact Prediction for the Next One Month       9

4.3                   Works and Monitoring Schedule for the Next One Month 9

LIST OF TABLES

Table 2.1    Summary of
Works Undertaken During the Reporting Period

Table 2.2    Summary of Environmental Licensing, Notification and
Permit Status

Table
3.1    Results of
Water Discharge Sampling

LIST OF ANNEXES

Annex
A    Project Location

Annex
B     Water Quality
Monitoring Stations, Water Quality and Ecological Sensitive Receivers

Annex
C    Implementation
Programme of Mitigation Measures

Annex
D    Cumulative Complaints
Statistics

EXECUTIVE SUMMARY

The construction works for the Permanent
Aviation Fuel Facility resumed on 9th July 2007.  This twelfth monthly Environmental Monitoring and Audit (EM&A)
report presents the EM&A works carried out during the period from 1st October to 31st October 2007 in
accordance with the EM&A Manual.

Breaches
of all Action and Limit Levels

No breaches of action or limit levels
occurred during the reporting month as no monitoring was undertaken.

Complaint
Log

No environmental complaint was received
during the reporting period.

Notifications of any Summons and Successful
Prosecutions

No environmental
summon or prosecutions were received in this reporting period.

Reporting Changes

There were no
reporting changes in the reporting period.

Future Key Issues

·
Baseline water quality
monitoring was conducted between 24 October and 30 October 2007 for the
commencement of dredging works.  The
Baseline Monitoring Report is being prepared and by the ET and will be
submitted to the EPD accordingly;

·
Dust release and suppression;
and

·
Commencement of dredging
activities.

1
Introduction

Leighton Contractors (Asia) Limited (LCAL) has appointed ERM-Hong
Kong, Limited (ERM) as the Environmental Team (ET) to implement the
Environmental Monitoring and Audit (EM&A) programme for the Permanent
Aviation Fuel Facility (the Project) during construction works.

The construction works for PAFF commenced
in November 2005 based upon the previous EIA (EIAO Register Number AEIAR-062-2002) conducted and the
Environmental Permit EP-139/2002
granted on the 28th August 2002.  Due to minor changes to the detailed
layout of the site and the site boundary, application for Variation to the
Environmental Permit (VEP) (VEP-133/2004)
was submitted to the Director of Environmental Protection (DEP) for
approval.  The variation to the EP (EP-139/2002/A) was granted by EPD in
February 2004.

However, the decision by EPD to grant the
above Environmental Permit was subject to a Judicial Review.  The Judicial Review sided in the favour
of the DEP, as did the subsequent Judgement from the Court of Appeal from the
High Court for Judicial Review in March 2005.  However, the DEP’s decision to
grant the EP was quashed by the Judgement of the Court of Final Appeal of July
2006.

The construction works were stopped
following the Judgement of the Court of Final Appeal of July 2006.  As such, in order to continue with the
construction of the project, the project went through the statutory procedures
under the EIAO again with a new design in order to obtain an environmental
permit.  The revised EIA was
submitted in 2007 and the environmental permit (EP-262/2007) was granted in May 2007.

The construction works and EM&A
requirements were resumed on 9th July 2007 following the latest
requirements of the EP-262/2007 and
EM&A Manual.  Details regarding
the EM&A requirements and changes should refer to the updated EM&A
Manual.  For the marine works, all
piling activities were completed before the previous suspension of construction
works in 2006.

1.1
Purpose of the Report

This is the twelfth EM&A Report which summarizes the monitoring results and
audit findings for the EM&A programme during the reporting period from 1st October to 31st October 2007.

2
Environmental Status

2.1
Project Area

The project area is in Area 38 of Tuen Mun
and the pipelines are located in Urmston
Road between Tuen Mun Area 38 and Sha Chau.  The site is illustrated in Annex A.

2.2
Environmental Sensitive Receivers

No air and noise sensitive receivers were
identified close to the project area.
However, water sensitive receivers and ecological sensitive receivers
were identified in the EIA study, and are shown in Annex B.

2.3
Major Construction Activities

A summary of the major works undertaken in
this reporting period is shown in Table 2.1.

Table 2.1         Summary
of Works Undertaken During the Reporting Period

Area

Works undertaken

Tuen Mun Area 38

Tank Farm and Bund Wall Construction

Permanent Drainage Construction

Operational & Fire Services Buildings Construction

Jetty Works (Non-piling)

2.4
Monitoring Schedule of The Reporting Month

No
monitoring was conducted during the reporting period.  Water monitoring during pipe-laying
activities are expected to commence towards November 2007.

2.5
Status
of Environmental Approval Documents

A summary of the relevant permits,
licences, and/or notifications on environmental protection for this Project since
July 2007 is presented in Table 2.2.

Table 2.2         Summary
of Environmental Licensing, Notification and Permit Status

Permit/ Licenses/ Notification

Reference

Validity Period

Remarks

Environmental
Permit

EP-262/2007

Throughout
Project

Issued on 31 May
2007 (EP-139/2002 originally
granted on 28 August 2002 and EP-139/2002/A
granted on 24 February 2004 were superseded)

Chemical Waste
Producer Registration

WPN 5111-421-L2174-25

Throughout
Project

Issued on 10
November 2005

Notification of
Construction Works under Air Pollution Control (Construction Dust) Regulation

H2104/U1D/5542/DG/DH/PL

Throughout
Project

Notification on 6
July 2007

Construction
Noise Permit

GW-RW0372-07

25 July 2007 to

24 January 2008

For air
compressors, breakers, excavators, wheeled loaders, mobile cranes, concrete
lorry mixers, hand-held pokers, bar benders/cutters, wood saws, grinders,
submarine water pump, lorries with crane, dump trucks, rollers, ventilation
fans and generators

GW-RW0427-07

28 August 2007
to 27 February 2008

For concrete
pump derrick barges, hand-held grinders, generators, air compressors, boring
machines, water pumps, tug boat, grout mixers and grout pumps

Wastewater
Discharge License

EP760/421/011399/l

15 March 2006 to 31 March 2011

Issued on 15 March
2006

2.6
Community Liaison Group Meeting

According
to the EP requirements, a Community Liaison Group (CLG) shall be established
within three months after commencement of construction of the Project.  The major duty of CLG is to advise on
and monitor the proper design, construction and operation of the Project.  The CLG comprises representatives from
Airport Authority, members of Tuen Mun community and academics.  During the reporting month, the CLG held
a meeting cum site visit on 5 October 2007.

The details of PAFF CLG (including
Membership and its Terms of Reference) and the meeting minutes can be found on
the Project website (www.paffhk.com).

2.7
Summary
of Non-Compliance With The Environmental Quality Performance Limits

Summary of Environmental
Non-compliance

No environmental non-compliance was found
during the reporting period.

Summary of Environmental
Complaints

No environmental
complaints were received during the reporting period.  A summary of environmental complaints
since project commencement is presented in Annex D.

Summary of Environmental
Summons

No summons were received in this reporting
period.  A summary of legal
proceeding since project commencement is presented in Annex D.

3
Environmental Issues and Actions

3.1
Previous
Environmental Deficiencies and Follow-up Actions

As no environmental complaint was received
over the last reporting period, no follow-up action was required.

Weekly site inspections were carried out by
the ET on 5th, 11th, 18th and 26th October
2007.  Overall, the site was in good
orderly manner and no non-compliance was found.  Environmental deficiencies and follow-up
actions/mitigation measures were identified during the inspections, as follows:

Air Quality

·
During the site inspection
on 5th October 2007, the excavated materials near Tank 3 were not
properly covered with tarpaulin sheets to avoid dust generation.  Corrective action was taken by the
Contractor in the reporting period.

·
During the site inspection on 18th
October 2007, debris and mud were found to be left in the wheel washing
facilities at the site entrance.
The Contractor was recommended to remove the materials which might
reduce the efficiency of the facilities.
Corrective action was taken by the Contractor in the reporting period.

·
Water tankers were used
regularly to wet the road surface to minimize dust emission.

·
Site entrance was paved and
wheel-washing facility was provided to avoid dust deposit on the public road.

·
Main access road within the
site (between site office and exit) was paved to avoid dust emission.  Other sections of the major access road
in the construction area were paved with stones.

Noise

·
No noisy activities were conducted
during the audit.

·
All air compressors on site
were operated with a valid noise label.

Water Quality

·
During the site inspection
on 5th October 2007, ponding of rainwater was observed
along the hoarding near the site entrance.
The Contractor was recommended to provide sufficient pumps to remove the
water via the temporary drainage system particularly after rainstorm.  Corrective action was taken by the
Contractor in the reporting period.

·
Site toilets were provided
on site.  A soil soakaway system
with holding tanks was installed to treat the sewage from the toilets.  No effluent discharge out of the site
was made.

·
The site canteen is no
longer in operation and hence no waste water is generated.

Waste Management

·
During the site inspection on 5th October
2007, refuse was observed to be scattering around the smoking area near Tank 6.
The Contractor was recommended to remove
the refuse and provide sufficient rubbish bins at the area.  Corrective action was taken by the
Contractor in the reporting period.

·
Disposal of stockpiled construction waste to public
fill bank was not undertaken during the reporting period.  The Contractor was recommended to
regularly spray the excavated materials at the stockpiling area with water to
avoid fugitive dust generation.

Landscape and Visual

·
The transplanted trees at the new site were in good
and healthy condition; and,

·
The berm was habilitated by vegetation.

Overall, the site was in a good orderly
manner.  The ET will keep track on
the EM&A programme to ensure compliance of environmental requirements and
the proper implementation of all necessary mitigation measures.

3.2
Implementation
Status on Environmental Protection Requirements

The implementation status of environmental
mitigation measures and requirements as stated in the EIA Report, Environmental
Permits and EM&A Manual during the reporting period is summarized in Annex C.

3.3
Environmental
Monitoring

3.3.1
Air and Noise

Air and Noise monitoring was not required
for the project.

3.3.2
Water Quality

Water quality monitoring was not required during
this reporting period as no dredging activity had taken place.

According to the
Wastewater Discharge License (Industrial Trade Effluent) issued by the EPD on
15th March 2006, the Contractor is required to conduct grab sampling/analysis
on total suspended solids at the designated discharge point(s) quarterly to ensure the quality of
treated effluent at the designated discharge point(s) complies with the
requirements of discharge license.  The
last water sample was conducted on 28 September 2007 and the results were
reported in the respective EM&A Report.

3.3.3
Waste Management

The
Contractor’s revised Waste Management Plan (Revision 4) (WMP) was
submitted to EPD on 20th September 2007.

3.3.4
Cultural Heritage

As no dredging activity was conducted along
the pipe trench during the reporting period, marine archaeological monitoring
was not required.

3.3.5
Landscape and Visual

According to the EIA report and EM&A Manual,
mitigation measures and site inspection are required during the
landscaping/planting works.  The
berm/landscaping bund was habilitated by vegetation which was grown during the
project suspension period.  The
transplanted trees were in good and healthy condition.

The weekly site inspections included audits
on landscape and visual issues to ensure that the site was in orderly
acceptable manner.

3.3.6
Land Contamination, Hazard to
Life and Fuel Spill Risk

According to the EIA report and EM&A Manual,
mitigation measures and design phase audit are required to minimise the risk of
fuel spill and hazards. The Contractor will submit the updated design audit
plan according to the EP requirements.

Pursuant to Condition 3.5 of the EP, the Contractor submitted three design
drawings which address the specific sub-clauses on Condition 3.5a of the EP concerning the containment systems of
aviation fuel storage tank farm.  The
ET and the IEC have provided certification and verification to the drawings
respectively and the drawings were submitted to the EPD on 7 November 2007.

Weekly site inspection covered the waste
management aspects which included measures to prevent land contamination by
chemical wastes.

3.3.7
Ecology

Dolphin Visual
Monitoring

No dolphin monitoring was conducted as
there were no dredging activities during the reporting period.

3.3.8
EM&A Manual

The EM&A Manual for the Project has
been updated by the ET to include the detailed arrangements of setting up a
Community Liaison Group, carrying out design audit, and monitoring of
Persistent Organic Pollutants during construction of the Project.  The EM&A Manual was submitted to EPD
on 18th October 2007.

The EPD provided the first round of comment
to the ET on 24th October 2007 concerning the inclusion of analysing
DDT instead of TBT in the POPs monitoring programme and the lowering of
reporting limits for POPs analysis. The ET will keep track on subsequent
comments received from the EPD, if any, and update the EM&A Manual accordingly.

3.3.9
Baseline Water Quality
Monitoring

Baseline water quality monitoring was
conducted between 24 October and 30 October 2007 at six designated monitoring
stations (three impact stations and three control stations) established for the
Project in accordance with the EM&A
Manual.  The monitoring was
carried out on a daily basis, at mid-flood and mid-ebb tides, at three depths
(surface, middle and bottom), for 1 week prior to the commencement of
construction of the sub-sea pipelines of the Project.  No major marine activities in relation
to the Project were undertaken during the baseline monitoring.

Through communications with EPD, an Interim Baseline Monitoring Report presenting
the results of suspended solid and all in
situ analysis would be submitted in early November.  POPs results would be provided in mid
November as a supplement to the Report once the results from the laboratory become
available.

4
Future Key Issues

4.1
Key Issues for the Next One Month

Key issues to be considered in the next one
month will include:

·
Baseline water quality
monitoring was conducted between 24 October and 30 October 2007 for the
commencement of dredging works.  The
Baseline Monitoring Report is being prepared and by the ET and will be submitted
to the EPD accordingly;

·
Dust release and suppression;
and,

·
Commencement of dredging
activities.

4.2
Impact Prediction for the Next One Month

Provided that environmental mitigation
measures including good on-site practises are properly implemented, it is not
expected that unacceptable adverse impacts will arise.

4.3
Works and Monitoring Schedule for the Next One Month

Work programme for the next one month
includes jetty platform works (non-piling) and site works (construction works
for tank farm, operational and fire services buildings, drainages, bund wall, security
wall etc).  Weekly site inspections
will be undertaken.  Dredging work is
scheduled to commence at the end of November.  Water quality and archaeology monitoring
will be undertaken in accordance with the EM&A
Manual.