❓ Hon Sophie McNeill questions the Minister for Environment regarding Buru Energy's compliance with environmental regulations at the Ungani Oil Production Facility, focusing on waste disposal and adherence to DWER's recommendations. The Minister's response indicates partial compliance and provides explanations for outstanding actions and decisions.
AnsweredQoN 611Legislative Council
QuestionView source ↗
I refer to the Department of Water and Environmental Regulation (DWER) Environmental Compliance Audit Report, Part V Licence L8777/2013/1, dated October 2024, which covers Buru Energy Ltd’s Ungani Oil Production Facility (Ungani PF) in the Kimberley, and I ask: (a) how many of the 18 required actions and recommendations set out in the report, at pages 8-10, have been complied with by Buru Energy; (b) if any of the 18 actions and recommendations in (a) have not been complied with: (i) which ones were not complied with; and (ii) in each case, for what reason were they not complied with; (c) for any actions or recommendations that have not been implemented, has DWER taken any compliance enforcement action; (d) if yes to (c), can you provide details; (e) if no to (c), why not; (f) has the large volume of oil sludge dumped in a turkey nest dam at Ungani PF, without DWER’s prior knowledge or approval, been removed by Buru Energy Ltd as required; (g) if yes to (f): (i) when was it removed; and (ii) where was it taken to for disposal; (h) if no to (f), why not; (i) given that the report states that the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) gave approval to dump the oil sludge at Ungani PF on 29 September 2023, prior to the 2023-24 wet season, and it was still there when DWER inspected the site in June 2024, how many wet seasons in total has this oil sludge been stored in the uncovered turkey nest dam at Ungani PF; (j) has DWER conducted any investigations to determine whether the exposure of this uncovered oil sludge to at least one, possibly two, Kimberley wet seasons has caused any overflow of oil-contaminated water from the turkey nest dam; (k) if yes to (j), what were the results of this investigation; (l) if no to (j), why not; (m) has DWER conducted any investigations to determine whether the dumping of this oil sludge in the turkey nest dam has caused soil or water contamination beneath the turkey nest dam; (n) if yes to (m), what were the results of the investigation; (o) if no to (m), why not; (p) at page 21 of the audit report, the Department states that it initially determined that the oil sludge dumped by Buru Energy at Ungani PF is a Controlled Waste under the Environmental Protection (Controlled Waste) Regulations 2004 , and therefore its dumping was potentially a breach of the regulations. On what legal basis was the initial determination that the oil sludge is a Controlled Waste subsequently overturned; (q) given that the Environmental Protection (Controlled Waste) Regulations 2004 , Schedule 1 states that "waste oil and water, or hydrocarbons and water, mixtures or emulsions" is a Controlled Waste, will the Minister direct DWER to revert to its original determination that the oil sludge dumped by Buru Energy at the Ungani PF is a Controlled Waste and therefore the company is potentially in breach of the regulations; (r) if no to (q), why not; (s) will the Minister release any legal advice obtained by the Department in determining whether the oil sludge dumped by Buru Energy at Ungani PF is a Controlled Waste; (t) if yes to (s), can this be provided; (u) if no to (s), why not; (v) has Buru Energy complied with the requirement to properly dispose of the biocide mixture and contaminated sediments identified in the report; (w) if yes to (v): (i) when was the disposal of the biocide mixture and contaminated sediments undertaken; and (ii) how and where were the biocide mixture and contaminated sediments disposed of; and (x) if no to (v), why not?
AnswerView source ↗
Answered
23 October 2025
Responded by
Minister for the Environment
Response time
7 days
(a) Sixteen.
(b) Two of the requested actions are outstanding while the Ungani Production Facility is under care and maintenance.
i. Reinstatement of tank farm bund walls and provision of evidence of reinstatement.
ii. Neither hydrocarbons nor formation water are being stored in the storage tanks while the facility is in care and maintenance, hence there is currently no environmental risk.
(c) – (e) Yes. A letter of non-compliance was issued to Buru Energy Limited on completion of the compliance audit.
(f) – (h) Yes. The hydrocarbon sludge was removed from the turkey nest dam to lined half-height containers over a two-week period in September 2024. The residual sludge and the HDPE liner were removed from the turkey nest dam subsequently, with the removal reported to have been completed by 18 November 2024. The hydrocarbon sludge was exported to international markets. The residual sludge and HDPE liner were disposed of at the Cleanaway Kimberley Resource Recovery Centre and the Tellus Holdings Sandy Ridge Facility.
(i) One.
(j) – (l) Yes, DWER assessed the likelihood of overtopping during the 2023-24 wet season as part of the compliance audit. Rainfall data for the closest weather stations revealed that the 2023-24 wet season was unusually dry. The level of rainfall over the 2023-24 wet season, in conjunction with the level of freeboard at the Ungani Production Facility turkey nest dam resulted in a conclusion that there was low likelihood that overtopping occurred. Visual inspection to verify the risk was also performed by DWER Officers during the field inspection on 13 June 2024.
(m) – (o) As part of rectifying non-compliances, DWER requested that Buru Energy Limited conduct soil testing for residual hydrocarbons under the turkey nest dam liner once the stored hydrocarbon sludge had been removed. All samples returned results that were below the laboratory limit of reporting for hydrocarbons.
(p) As the hydrocarbon sludge was wanted and suitable to produce bitumen and had market value, DWER formed the view in this case that the hydrocarbon sludge was not waste.
(q) – (r) I do not have a statutory role in directing DWER to change its determination on this matter.
(s) – (u) Whether legal advice was obtained by the Department, and the content of any advice, is subject to legal professional privilege.
(v) Partially. The chemical bund sediment has been disposed of, but the biocide mixture remains in the storage tanks to prevent corrosion. DWER will not be tracking disposal of the biocide mixture as it is approved by the Department of Mines, Petroleum and Exploration for reinjection under the Petroleum and Geothermal Energy Resources Act 1967 and subsidiary legislation.
(w) – (x) The chemical bund sediment was disposed of by Cleanaway on 10 December 2024 at the Kimberley Resource Recovery Centre. . The biocide mixture has not yet been disposed of.
(b) Two of the requested actions are outstanding while the Ungani Production Facility is under care and maintenance.
i. Reinstatement of tank farm bund walls and provision of evidence of reinstatement.
ii. Neither hydrocarbons nor formation water are being stored in the storage tanks while the facility is in care and maintenance, hence there is currently no environmental risk.
(c) – (e) Yes. A letter of non-compliance was issued to Buru Energy Limited on completion of the compliance audit.
(f) – (h) Yes. The hydrocarbon sludge was removed from the turkey nest dam to lined half-height containers over a two-week period in September 2024. The residual sludge and the HDPE liner were removed from the turkey nest dam subsequently, with the removal reported to have been completed by 18 November 2024. The hydrocarbon sludge was exported to international markets. The residual sludge and HDPE liner were disposed of at the Cleanaway Kimberley Resource Recovery Centre and the Tellus Holdings Sandy Ridge Facility.
(i) One.
(j) – (l) Yes, DWER assessed the likelihood of overtopping during the 2023-24 wet season as part of the compliance audit. Rainfall data for the closest weather stations revealed that the 2023-24 wet season was unusually dry. The level of rainfall over the 2023-24 wet season, in conjunction with the level of freeboard at the Ungani Production Facility turkey nest dam resulted in a conclusion that there was low likelihood that overtopping occurred. Visual inspection to verify the risk was also performed by DWER Officers during the field inspection on 13 June 2024.
(m) – (o) As part of rectifying non-compliances, DWER requested that Buru Energy Limited conduct soil testing for residual hydrocarbons under the turkey nest dam liner once the stored hydrocarbon sludge had been removed. All samples returned results that were below the laboratory limit of reporting for hydrocarbons.
(p) As the hydrocarbon sludge was wanted and suitable to produce bitumen and had market value, DWER formed the view in this case that the hydrocarbon sludge was not waste.
(q) – (r) I do not have a statutory role in directing DWER to change its determination on this matter.
(s) – (u) Whether legal advice was obtained by the Department, and the content of any advice, is subject to legal professional privilege.
(v) Partially. The chemical bund sediment has been disposed of, but the biocide mixture remains in the storage tanks to prevent corrosion. DWER will not be tracking disposal of the biocide mixture as it is approved by the Department of Mines, Petroleum and Exploration for reinjection under the Petroleum and Geothermal Energy Resources Act 1967 and subsidiary legislation.
(w) – (x) The chemical bund sediment was disposed of by Cleanaway on 10 December 2024 at the Kimberley Resource Recovery Centre. . The biocide mixture has not yet been disposed of.
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