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 was 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 28^th 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 9^th 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 9^th EM&A Report which summarizes the monitoring results and audit findings for the EM&A programme during the reporting period from 9^th to 31^st July 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 B.

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 A.

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, between 9^th July and 31^st July 2007

Area	Works undertaken
Tuen Mun Area 38	Tank Farm, Bund wall Construction Permanent Drainage Construction Operational & Fire Services Buildings Construction Welding works of steel plates in Workshop Minor Jetty Works (Non-piling)

Area

Works undertaken

Tuen Mun Area 38

Tank Farm, Bund wall Construction

Permanent Drainage Construction

Operational & Fire Services Buildings Construction

Welding works of steel plates in Workshop

Minor Jetty Works (Non-piling)

2.4 Monitoring Schedule of The Reporting Month

No monitoring was conducted during the reporting period. Water monitoring is expected to be commenced towards October 2007.

2.5 Status of Environmental Approval Documents

A summary of the relevant permits, licences, and/or notifications on environmental protection for this Project as of 31^st 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-139/2002	Throughout Project	Issued on 2 August 2002
	EP-139/2002	Throughout Project	Issued on 2 August 2002
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 Jul 07 to 24 Jan 08	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
Wastewater Discharge License	EP760/421/011399/l	15 Mar 06 to 31 Mar 11	Issued on 15 Mar 2006

2.6 Community Liaison Group Meeting

According to the EP requirements, a Community Liaison Group shall be established within three months after commencement of construction of the Project. During the audit, the Contractor indicated that a meeting was held for the Community Liaison Group before the commencement of the construction works. During the reporting period, no information has been received during the meeting. Details of the meeting will be included once available.

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 complaint was received during the reporting period. A statistical summary of environmental complaints since project commencement is presented in Annex D.

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 12^th, 19^th and 25^th July 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

· No adverse dust emission was observed during the audits. Water tankers were used regularly to wet the road surface to minimize dust emission;

· Earth mounds and large stockpiles were covered to avoid dust emission;

· Site entrance/exit was paved and wheel-washing facility was provided at the site exit to avoid dust deposit in the access 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; and,

· Vegetation was grown on the large stockpile.

Noise

· No noisy activity was found during the audit; and,

· An air compressor at the Workshop was operated without noise label during 19^th July audit. The Contractor was reminded to provide noise labels for all air compressors before they can be used. Noise label was provided for the air compressor during 25^th July audit.

Water Quality

· Mosquito oil was sprayed to the sump pits to avoid mosquito breeding;

· Manholes outside the site were free of sand;

· Site toilets were provided on site. Septic tank was installed to treat the sewerage from the site toilets. No sewerage effluent discharge out of the site was made; and,

· For the wastewater generated from the site canteen, a tank/pit was installed to contain all wastewater generated from the canteen. The wastewater will be collected by licensed operator regularly.

Waste Management

· Several drums or containers were found without labels in the chemical waste store near the site office during 12^th & 19^th July audits. The Contractor was reminded to provide labels for all chemical waste containers. Labels were provided during 25^th July audit.

Landscape and Visual

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

· The berm was dominated by vegetation.

Overall, the site was in a good orderly manner. Suitable mitigation measures, such as the use of water truck regularly and tarpaulin covers should continuous be used to ensure dust emission is avoided on site.

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 at the monitoring stations was not required as no dredging activity was taken place.

According to the wastewater discharge license (industrial trade effluent) issued by the EPD on 15^th March 06, the Contractor is required to conduct grab sampling/analysis on SS at the discharge point(s) quarterly. The Contractor was aware of the sampling and will comply with the requirement.

3.3.3 Waste Management

The Contractor’s revised WMP (Revision 4) was submitted to the ET for review on 18^th July 2007. The review is in progress.

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 dominated by vegetation which was grown during the project suspension period. The transplanted trees were in good and healthy conditions.

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.

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 was no dredging activities implemented during the reporting period.

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:

· Noise from operating machinery and equipment;

· Dust release and suppression.

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 impact 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 and etc). Weekly site inspections will be undertaken.