1 December 2017

WorkSafe has granted an exemption to the New Zealand Refining Company Limited from compliance with regulation 10.9(4) of the Health and Safety at Work (Hazardous Substances) Regulations 2017 commencing on 1 December 2017.

An exemption has been granted by WorkSafe in accordance with section 220 of the Health and Safety at Work Act 2015 to the New Zealand Refining Company Limited because:

1. New Zealand Refining Company’s flammable vapour detection system used for butane leak detection, if activated, does not comply with requirements of this regulation as the butane spheres are continuously fed from the process units, and activation of an automatic shutdown in the supply to and discharge from all spheres could potentially create a more hazardous operating environment.
2. New Zealand Refining Company’s flammable vapour detection system is shutdown manually by the continuously staffed control room to manage the risk posed by butane leaks at the New Zealand Refining Company’s butane bulk storage compound. 
3. WorkSafe is satisfied that New Zealand Refining Company’s alternative flammable vapour detection system implemented provides an equivalent level of safety to that required by regulation 10.9(4).

 The exemption is granted subject to the terms and conditions that:

1. If activated, the flammable vapour detection system must:

1. trigger an automatic alarm in a continuously staffed control room that is located at the site; and
2. result in competent staff at the site immediately determining if alarm escalation is required.

2.  If alarm escalation occurs, the response system must:

1. trigger an alarm that produces a sound of not less than 105 decibels and gives a visual signal; and
2. allow remote shutdown of the gas supply (rundown) and suction (discharge) line tight shut off valves, which all will then require a manual reset.

3. The New Zealand Refining Company Limited must comply with its standard operating procedure for response to a flammable gas leak.
4. The New Zealand Refining Company Limited must test the standard operating procedure at least every 12 months and revise the standard operating procedure as required to ensure it remains workable and effective. 
5. The piping joints must be compliant with clause 8.2.2 of standard Piping Joints of API 2510 Design and Construction of LPG Installations 2001.
6. The locations of the detector heads must be in accordance with the site plan provided in the exemption.