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Safety and environmental standards for fuel storage sites

Final report

168

Assurance factors

191 Factors important to assuring overall success include:

setting key performance indicators for deviations from plan (eg hitting the high level alarm,

number of stock outs, number of in-line amendments, highest level etc);

investigation of incidents and near misses arising from planning failures, and sharing the

lessons across all parties;

ensuring there is a mechanism for feedback from the receiver to the sender on the quality of

operational plans;

including the examination of operating practice against the policy and procedure as part of

audit arrangements.

Summary

192 Dutyholders that are receivers of fuel should develop procedures for successful planning and

review them with their senders and all appropriate intermediates. The stages to be considered in

the planning process should include:

contract strategy for deliveries of fuel (long-term planning process);

development and agreement of monthly movement plans;

amendments to monthly plans;

development of weekly and daily operational plans;

amendments to weekly and daily operational plans;

‘in line’ amendments.

Principles for consignment transfer agreements

193 The Initial Report of the Buncefield MIIB identified an issue with regard to safety arrangements,

including communications, for fuel transfer. To address this, a set of principles was developed for

safe management of fuel transfer, as detailed in paragraphs 179–184. These include the adoption of

principles for consignment transfer agreements, as described below.

Guidance

194 The following principles apply to pipeline transfers where separate parties control:

the supply of material to a tank or tanks; and

the tank or tanks.

This includes, for example, transfers between sites belonging to one business. It does not apply

to transfers where a single person or team controls both ‘ends’ of the transfer, although an

equivalent standard of control is necessary.

195 For the purposes of these agreements the sender is the party primarily responsible for the

final transfer of fuel to the receiving terminal.

196 For transfers from ships into tanks, the current edition of the

International Safety Guide for Oil

Tankers and Terminals (ISGOTT)

is considered to be the appropriate standard.