Contents

Executive summary

1                      Introduction

1.1                   Purpose of the Report

1.2                   Key Contact Information

2                      Environmental Status

2.1                   Project Area

2.2                   Environmental Sensitive Receivers

2.3                   Major Construction Activities

2.4                   Monitoring Schedule of The Reporting Period

2.5                   Status of Environmental Approval Documents

2.6                   Community Liaison Group Meeting

2.7                   Summary of non-compliance with the environmental
quality performance limits

2.8                   Summary of Environmental Complaints

2.9                   Summary of Environmental Summons

3                      Environmental Issues and Actions

3.1                   Previous Environmental Deficiencies and Follow-up
Actions

3.2                   Implementation Status on Environmental
Protection Requirements

4                      Environmental Monitoring

4.1                   Air and Noise

4.2                   Water Quality

4.3                   POPs Monitoring

4.4                   Waste Management

4.5                   Cultural Heritage

4.6                   Landscape and Visual

4.7                   Land Contamination, Hazard to Life and Fuel Spill
Risk

4.8                   Ecology

4.9                   EM&A Manual

4.10                 Baseline Water Quality Monitoring

5                      Future Key Issues and Conclusion

5.1                   Key Issues for the Next Reporting Period

5.2                   Impact Prediction for the Next Reporting Period

5.3                   Works and Monitoring Schedule for the Next Reporting
Period

5.4                   Conclusion

LIST OF TABLES

Table
1.1        Contact
Information

Table 2.1        Summary
of Works Undertaken During the Reporting Period

Table 2.2        Cumulative
Quantity of Excavated Materials up to 31 December 2008

Table 2.2        Summary
of Environmental Licensing, Notification and Permit Status

Table 3.1        Environmental
Deficiencies (Observations) from Site Inspections during Reporting Period

LIST OF ANNEXES

Annex A         Project
Location

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

Annex C         Monitoring
Schedule for the Reporting Period

Annex D         Cumulative
Complaints Statistics

Annex E         Implementation
Programme of Mitigation Measures

Annex F         Graphical
Presentation of Impact Water Quality Monitoring Results for the Reporting
Period

Annex G        Dolphin
Sighting Records

EXECUTIVE
SUMMARY

The construction works for the Permanent Aviation
Fuel Facility resumed on 9 July 2007.
This eighth quarterly
Environmental Monitoring and Audit (EM&A) report presents the EM&A work
carried out during the period from 1
October to 31 December 2008 in
accordance with the EM&A Manual.

Breaches of all Action and
Limit Levels

No exceedances of any
Action and Limit Levels applicable to the project were observed during the
reporting period.

Complaint Log

No environmental complaint was received during the
reporting period.

Notifications
of any Summons and Successful Prosecutions

No environmental summons or prosecutions
was received in this reporting period.

Reporting
Changes

There was no reporting
changes in the reporting period.

Future Key Issues

·
Dust
release and suppression;

·
Dredging
activities; and

·
Water
quality monitoring and dolphin monitoring during 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. EP-262/2007 has been amended to
EP262/2007/A and issued by the EPD on
30 November 2007.

It should be noted that at the time of reporting, a
further Variation to the Environmental Permit has been approved, primarily to
allow for dredging works to continue during March 2008.  As such, EP-262/2007/A has been amended to EP-262/2007/B and issued by the EPD on 27 February 2008.

The construction works and EM&A requirements
resumed on 9 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 eighth
EM&A Report which summarizes the monitoring results and audit findings for
the EM&A programme during the reporting period from 1 October to 31 December 2008.

1.2
Key Contact
Information

Key contact information of the Project is presented
in Table 1.1.

Table 1.1        Contact
Information

Name

Position

Telephone

Facsimile

E-mail

Airport Authority Hong Kong
– Environmental Permit Holder

Mr Amin Ebrahim

Assistant General Manager Aviation Logistics

2183 3108

2824 2786

[email-masked]

Contractor – Leighton (Asia)
Construction Limited

Brian Gillon

Project Director

2823 1111

2529 8784

[email-masked]

Boyd Merrett

Project Manager

2404 8900

2404 0081

[email-masked]

Franchisee’s Site Representative – ECO
Aviation Fuel Development Limited

Philip Siu

Franchisee’s Site Representative

2963 2820

2563 6311

[email-masked]

Environmental Team – ERM-Hong
Kong Limited

Craig Reid

Environmental Team Leader

2271 3000

2723 5660

[email-masked]

Independent Environmental Checker – Hyder Consulting Limited

Dr Kwok-leung
Pun

Independent Environmental Checker

2911 2233

2805 5028

[email-masked]

2
Environmental
Status

2.1
Project Area

The project area is in Area 38 of Tuen
Mun and the pipelines are located at 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.  Dredging operation has been suspended
from 1 April to 31 August 2008 and was resumed on 1 September 2008.  Table 2.2 presented the cumulative
quantity of excavated materials up to 31 December 2008.  Daily and cumulative dredging production
rates are illustrated in Figure 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)

Submarine Pipeline Route

Dredging
Operations

Table 2.2        Cumulative
Quantity of Excavated Materials up to 31 December 2008

Type
of Excavated Materials

Cumulative
Bulk Volume (m3)

From 17 December 2007 to 31 March 2008

Contaminated Mud

105,974

Uncontaminated Mud

97,815

From 1 September to 31 December 2008

Contaminated Mud

0

Uncontaminated Mud

117,967

2.4
Monitoring
Schedule of The Reporting Period

Daily water quality
monitoring during dredging activities was recommenced on 1 September 2008.  The monitoring schedule conducted during
the reporting month is presented in Annex C.

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 2.3.

Table 2.2        Summary
of Environmental Licensing, Notification and Permit Status

Permit/ Licenses/ Notification

Reference

Validity Period

Remarks

Environmental
Permit

EP-262/2007/B

Throughout
Project

Issued
on 27 February 2008 (EP-262/2007/A on
30 November 2007, EP-262/2007
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-RW0676-07

21
December 2007 to 19 June 2008

For
land-based works including 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-RW0677-07

21
December 2007 to 29 February 2008

For
marine dredging operation including grab dredger, tug boat, split hopper
barge and motor sampan

GW-RW0678-07

21
December 2007 to 18 June 2008

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

GW-RW0094-08

1
March to 31 March 2008

For
marine dredging operation including grab dredger, tug boat, split hopper
barge and motor sampan

GW-RW0312-08

04
July 2008 to 22 December 2008

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

GW-RW0313-08

04
July 2008 to 19 December 2008

For
land-based works including 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-RW0373-08

1
August 2008 to 20 January 2009

For
land-based works including 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, generators, stirrer, jet
chisel, water jet machine and dehumidifier

GW-RW0368-08

1
September to 30 November 2008

For
marine dredging operation including grab dredger, tug boat, split hopper
barge and motor sampan

Marine
Dumping Permit

EP/MD/08-064

13
December 2007 to 29 February 2008

For
Type 1 – Open Sea Disposal

EP/MD/08-065

13
December 2007 to 12 January 2008

For
Type 1d & Type 2 marine disposal

EP/MD/08-071

13
January 2008 to 12 February 2008

For
Type 1d & Type 2 marine disposal

EP/MD/08-090

3
March to 31 March 2008

For
Type 1d & Type 2 marine disposal

EP/MD/08-091

3
March to 31 March 2008

For
Type 1 – Open Sea Disposal

EP/MD/09-018

1
September to 30 September 2008

For
Type 1d & Type 2 marine disposal

EP/MD/09-032

1
October to 31 October 2008

For
Type 1d & Type 2 marine disposal

EP/MD/09-017

1
September to 30 November 2008

For
Type 1 – Open Sea Disposal

EP/MD/09-039

1
December 2008 to 31 January 2009

For
Type 1 – Open Sea Disposal

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 period, a meeting
was organised by the CLG on 3 December 2008.  Details of the CLG (including Membership and its Terms of
Reference) and the meeting minutes can be found on the Project website
(http://www.paffhk.com).

2.7
Summary of Non-Compliance with the Environmental
Quality Performance Limits

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

2.8
Summary of
Environmental Complaints

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

2.9
Summary of
Environmental Summons

No summons was received in this reporting
period.  A statistical 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
2, 10, 15, 24 and 30 October 2008, 4, 12, 20 and 26 November 2008, and 4, 11,
18, 23 and 31 December 2008.  No
non-compliances were found.
Environmental deficiencies and follow-up actions/mitigation measures
were identified during the inspections and summarised in Table 3.1.

Table
3.1        Environmental
Deficiencies (Observations) from Site Inspections during Reporting Period

Reporting Month

Observation

Follow-up Action

October 2008

Open sand and soil piles
were observed near the tank farms and surcharge area

Contractor was reminded
to cover open piles with impervious sheets in non-working hours

Sediment plumes were
observed in the water at the discharge outlet near the operation building

Contractor was
recommended to check the efficiency of sedimentation facilities and to review
the effluent discharge arrangements in the tank farm area

Oil sheen was observed on
the edge of the dredging barge deck and on the floor behind the
workshop

Contractor was
recommended to arrange clearance of the oil sheen as soon as possible.

Oil interceptor and the car
washing facility was observed to be filled with sediments

The Contractor was
recommended to clear the sediments in the respective facilities as soon as
possible

Chemical wastes were stored on the deck of the
barge without spillage preventive measures and chemical waste storage area on
the dredging barge was observed to be full.

Contractor was recommended to store chemical
wastes in bunded areas to avoid potential spillages
and arranged collection as soon as the storage area is full.

Waste drums in the chemical waste storage were not
labelled

Contractor was recommended to label the containers
with proper stickers with reference to the Code of Practice on the Packaging, Labelling and Storage of
Chemical Wastes under the Waste Disposal Ordinance (Cap. 354)

Machinery inside the workshop was placed on the
floor without drip trays.

The Contractor was recommended to provide drip
trays for the temporary storage of oily machines in works area

Water was observed in the chemical waste storage

The Contractor was recommended to clear the water
from the storage and dispose the collected wastewater properly

November 2008

Waste trucks were
observed to be leaving the work site with open skips

Contractor was reminded
to ensure that skip doors on loaded waste trucks were closed prior to
departure from site

Sediments were observed
in the oil interceptor and the car washing facility

Contractor was
recommended to clear sediments in the respective facilities as soon as
possible

Soil, grit and refuse
were observed in the storm drains along the southern boundary of the site

The Contractor was
reminded to clear the storm drains as soon as possible to avoid runoffs of
refuse into the sea

Stagnant water ponds were
observed in the tank farm area

Contractor was reminded
to clear stagnant pools on site to avoid mosquito breeding

Water hose behind the
workshop was observed to be leaking

Contractor was
recommended to fix the leaking hose as soon as possible to avoid water
wastage and unnecessary site runoffs

General refuse was
observed to be mixed with inert wastes in skips near the tank farms and the
operation building

Contractor was
recommended to provide enough waste skips for proper segregation of inert and
non-inert wastes on site

Plastics were observed in
the yellow bin of a set of 3-color bins near the tank farms

Contractor was recommended
to put paper, plastics and aluminium wastes in respective 3-color bins at all
times

Chemical wastes were
placed behind the workshop without drip trays and proper chemical labels

Contractor was
recommended to provide drip trays for the temporary storage of chemical
wastes in areas aside from the main chemical waste store

Chemical waste store near
the workshop was observed to be full

Contractor was
recommended to arrange collection of chemical wastes by a licensed Contractor
as soon as possible

December 2008

Waste trucks left the
work site without properly using the wheel-wash facility

Contractor was reminded
to ensure that no soil and grit were carried onto the neighbouring public
road by vehicles leaving the construction site

Excavators in the
surcharge area were observed to be operating without dust control measures

Contractor was reminded
to implement dust suppression measures (ie water
spraying) regularly when dusty activities are conducted on site

Loading works near the
oil interceptor was observed to be generating lots of dust

Contractor was
recommended to spray excavated materials prior to loading in order to avoid
wind erosion

Stop plug of a drip tray
under a diesel generator near the oil interceptor was observed to be missing

Contractor was reminded
to replace the missing stop plug and to ensure the stop plug is tightly
fastened onto the drip tray

No chemical waste labels
were observed on a few waste oil drums on the dredging barge

Contractor was
recommended to label the waste oil drums with chemical waste labels

General wastes were piled
up behind the tank farms without receptor bins

Contractor was reminded
to replace bins for temporary storage of wastes as soon as possible

Chemical waste store near
the operation building was observed to be full

Contractor was
recommended to arrange collection of chemical wastes by a licensed Contractor
as soon as possible

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 E.

4
Environmental Monitoring

4.1
Air and Noise

Air and Noise monitoring was not required for the
project.

4.2
Water Quality

In accordance to the EM&A Manual water
quality monitoring recommenced on 1 September 2008 alongside dredging
activities.  QA/QC reports for Suspended Solids
testing and monitoring results have been presented in 24th, 25th and 26th
Monthly EM&A Reports.  Graphical
presentations of the monitored parameter over the past four months (the last
month of the previous quarter and the present quarter) are included in Annex
F.

Although some exceedances
of the Action and Limit (AL) Levels of dissolved oxygen (DO) and suspended
solids (SS) have been recorded in previous quarter (see 23th Monthly EM&A Report), results of
the reporting period demonstrated that all measured turbidity, DO and SS levels
of all Impact Stations were compliant with the AL Levels specified in the EM&A Manual.

4.3
POPs Monitoring

Biweekly monitoring of POPs
in water samples was conducted on 8 and 22 October, 12 and 26 November, and 10
and 24 December.  At the time of
this report, all results were available except for those sampled on 24
December.  All POPs
parameters (ie total PCBs, total DDTs
and total PAHs) were below detection limits.  Monitoring results and QA/QC reports for POPs
testing have been presented in 24th, 25th and 26th
Monthly EM&A Reports.

4.4
Waste
Management

According to EP Condition
3.3, the Contractor’s revised Waste Management Plan (Revision 5)
(WMP), which has been certified by the ET and IEC, was submitted to the EPD on
5 November 2008.

4.5
Cultural Heritage

The Watching
Brief Report, verified by the Independent Environmental Checker, was
submitted to the EPD and AMO on 9 May 2008.

4.6
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 appeared to have vegetation grown during
the project suspension period.  The
transplanted trees appeared to be in a 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.

4.7
Land
Contamination, Hazard to Life and Fuel Spill Risk

The ET and IEC verified updated design audit plan
which was 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.

4.8
Ecology

Dolphin Visual Monitoring

In accordance with EM&A Manual, dolphin monitoring has been undertaken during
dredging activities since 1 September 2008.  During the reporting period, a total of
27 dolphin sightings were recorded.
Appropriate action was taken in accordance with the EM&A Manual.  The
sighting locations and field records are presented in Annex G.

4.9
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 (POPs)
during construction of the Project.
Further comments were received from the EPD and a revised EM&A Manual has been verified by the
IEC and was submitted to EPD on 2 December 2008.

4.10
Baseline Water
Quality Monitoring

The
Final Baseline Monitoring Report was submitted
to the EPD on 20 February 2008 and placed under the EIAO register.

5
Future Key Issues and Conclusion

5.1
Key Issues for
the Next Reporting Period

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

·
Dust
release and suppression;

·
Operation
of dredging activities; and,

·
Water
quality monitoring and dolphin monitoring during the dredging activities.

5.2
Impact Prediction for the
Next Reporting Period

Provided that environmental mitigation measures including
good on-site practises are properly implemented, no unacceptable adverse
environmental impacts are expected.

5.3
Works and Monitoring
Schedule for the Next Reporting Period

Work programme for the next reporting period includes
jetty platform works (non-piling), site works (construction works for tank
farm, operational and fire services buildings, pump platform, drainages, bund
wall, security wall etc) and dredging operation.  Weekly site inspections will be
undertaken in accordance with the EM&A
Manual.

5.4
Conclusion

The EM&A works were conducted throughout the
construction period and the relevant monitoring was conducted in accordance
with the EP’s requirements.
Mitigation measures were used to minimise the environmental impacts,
where appropriate.  Some
environmental deficiencies were observed during the site inspections and the
Contractor implemented corrective action to mitigate the issues.  Overall, the site was in an orderly
manner.