Notice of Decision to Vary an Approval under the Fuel Quality Standards Act 2000 for IOR Energy Pty Ltd

Overview

The Fuel Quality Standards Act 2000 was enacted to regulate the quality of fuel sold in Australia, with the aim of protecting the environment, occupational and public health, and consumer interests, while also considering economic and regional development. This Act was enacted by the Australian Parliament to address the need for consistent and high-quality fuel standards across the country. The policy objective of the Act is to ensure that fuel sold in Australia meets certain quality standards, which in turn helps to protect the environment and public health, and supports regional economic development. In the case of IOR Energy Pty Ltd, the Act was used to grant an approval to vary the fuel standard for automotive diesel, allowing the supply of diesel with certain specifications to commercial users in specific regions until the end of 2016. This approval was granted due to the environmental benefits of the diesel supplied, as well as its potential to support regional economic development.

Scope and Application

The Fuel Quality Standards Act 2000 applies to entities involved in the supply of fuel within Australia, including IOR Energy Pty Ltd which holds a specific approval for the supply of automotive diesel under particular conditions. This approval, initially granted under section 13 of the Act, has been varied to extend the operational period and modify the geographical limits of supply for automotive diesel with specified density and sulfur content parameters. The approval is intended to balance environmental protection, occupational and public health and safety, consumer interests, and economic and regional development while allowing IOR Energy Pty Ltd to supply diesel to commercial users in designated remote areas until 31 December 2016. The Act's provisions are subject to further specification through subordinate instruments, which can detail additional conditions or restrictions to ensure compliance with the legislative intent.

Key Provisions

The Fuel Quality Standards Act 2000, as referenced in the notice, includes a provision under section 13 that allows for the granting of approvals to deviate from certain fuel quality standards. Section 17 of the Act provides the legal basis for the variation of such approvals. The notice under section 17 details a decision to vary an approval previously granted to IOR Energy Pty Ltd, with the variation coming into effect from the date of the notice until 31 December 2016. This variation specifically alters the conditions under which certain specifications for automotive diesel can be supplied to commercial users. For underground mining applications, automotive diesel with a minimum density of 790 kg/m3 and a maximum sulphur content of 125 mg/kg is now recognised as compliant until the end of 2016. For supplies through IOR’s outlets, the specifications change to a minimum density of 800 kg/m3 and a maximum sulphur content of 50 mg/kg until 31 December 2014, with this period subsequently extended to 31 December 2016. Additionally, condition 2(i) is amended to restrict the supply of automotive diesel with a sulfur content no greater than 50 mg/kg and a minimum density of 800 kg/m3 to commercial users within a 300 km radius from the Eromanga Refinery or from IOR’s outlet at Innamincka, South Australia. The obligations imposed on IOR Energy Pty Ltd by this variation include adhering to the specified fuel quality parameters and supply conditions outlined in the approval. They are required to ensure that any automotive diesel supplied meets the defined density and sulfur content parameters and that such supply is made exclusively to commercial users within the stipulated geographical limits. IOR must also ensure compliance with any other conditions specified in the original approval and in Annexure 2 of the varied approval. The obligations extend to regulated persons specified in Annexure 1 of the approval, who must also comply with the terms of the varied approval. Failure to comply with the terms of the varied approval can lead to various consequences. Under the Act, breaches may result in the approval being revoked, which could significantly impact IOR’s operations and their ability to supply automotive diesel under the varied conditions. Additionally, any non-compliance with the fuel quality standards could lead to legal actions, fines, or other penalties as prescribed by relevant regulations or other statutory provisions. The exact penalties for breaches are not specified in the notice but can include significant fines and potential imprisonment, depending on the severity and frequency of the breach.