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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Contents
Declaration from
student
III
Certificate from
company
IV
Certificate from
guide
..V
Acknowledgement
VI
List of
charts
.VII
Executive
summary
VIII
INTROUCTION........................................................................................................ 3
ABOUT MAHUL TERMINAL................................................................................... 3
STATUTORY REQUIREMENTS............................................................................... 4
GENERAL STATUTARTY ACTS APPLICABLE TO EVERY BUSINESS.............................5
FACTORIES ACT, 1948......................................................................................... 5
Compulsory Approval Licensing & Registration of Factories............................5
HEALTH MEASURES.......................................................................................... 6
To undertake Safety Measures.........................................................................7
SPECIAL PROVISIONS RELATING TO SAFETY: (SEC 41-B to 41- H)....................8
Compulsory Disclosure of Information by the Occupier (SEC41B)...................9
SPECIFIC RESPONSIBILITY OF THE OCCUPIER IN RELATION TO HAZARDOUS
PROCESS......................................................................................................... 9
Welfare Amenities......................................................................................... 10
WORKING HOURS, HOLIDAYS AND OVERTIME................................................10
CONTRACT LABOUR (R&A) ACT, 1970...............................................................13
Registration of Establishments......................................................................13
Prohibition of Employment of Contract Labor................................................13
Licensing Of Contractors............................................................................... 14
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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION


Welfare and Health of Contract Labor...........................................................15
Obligations of Principal Employers and Contractors......................................16
Rights of Principal Employers and Contractors..............................................17
THE ENVIRONMENT (PROTECTION) ACT, 1986 AND THE RULES FRAMED
THEREUNDER.................................................................................................... 18
Provisions in the Act...................................................................................... 18
Environment (Protection Rules, 1986)...........................................................19
Government.................................................................................................. 19
THE PETROLEUM ACT, 1934................................................................................. 20
Control Over Petroleum.................................................................................... 20
Comment.......................................................................................................... 21
Production, refining and blending of petroleum................................................22
CLASSIFICATION OF PETROLEUM PRODUCTS.......................................................23
CLASSIFICATION OF HAZARDOUS AREA...............................................................24
LAYOUT DESIGN................................................................................................... 25
Following philosophy should be adopted in layout of an installation (OISD 244):
......................................................................................................................... 25
Types of Storage Tanks........................................................................................ 26
Layout of storage tanks.................................................................................... 27
FIRE WATER SYSTEM............................................................................................ 29
ELECTRIC WIRING (Petroleum Act 1934):.............................................................30
EARTHING AND BONDING (Petroleum Act 1934):.................................................31
MOTOR VEHICLE ACT 1988.................................................................................. 33
Motor Vehicle Rule-9:........................................................................................ 33
Motor Vehicle Rule-129:.................................................................................... 33
Motor Vehicle Rule-131:.................................................................................... 34
Motor Vehicle Rule-132:.................................................................................... 34
Motor Vehicle Rule-133:.................................................................................... 35
Motor Vehicle Rule-134:.................................................................................... 35
Motor Vehicle Rule-137:.................................................................................... 36
LICENSING PROCESS FROM CUSTOMER SIDE......................................................38

Different Licenses and Forms.....................................................................38

OBJECTIVES.......................................................................................................... 40
RESEARCH METHODOLOGY.................................................................................. 41
FINDINGS AND INTERPRETATION..........................................................................42
SUGGESTIONS...................................................................................................... 46
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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION


CONCLUSION....................................................................................................... 47
QUESTIONNAIRE.................................................................................................. 48

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

INTROUCTION
ABOUT MAHUL TERMINAL
Mahul Terminal is located in south west end of Mumbai Refinery at Gavanpada, a village in
Chembur in Mumbai. It is surrounded by BPCLs Mumbai Refinery and Bhaba Atomic
Research center. Commissioned on 26th August 1968, it is the first POL terminal of HPCL.
The terminal area is spawning over 15.5 acres. It is ISO 9001:2008, ISO
14001:2004 and IRS certified terminal.
The location is very strategic as it is between Mumbai and Navi Mumbai and also
connected directly to the Mumbai Pune express highway. Due to all these reasons it
becomes one of the main suppliers of industrial fuels to the nearby industries. Some of its
major regular customers are NTPC, ISPAT industries, CENTURY Plywood and many more.
On an average 120 -140 trucks loaded in Mahul terminal every day. The terminal is
headed by Chief Manager Installations.
Mahul terminal is also known as black oil terminal. It supplies almost every type of
black oil to the customers in industry. It also supplies some grades of white oils for the
industries.
Products handled at Mahul Terminal.

Furnace Oil:Hexane:-

Light Diesel Oil:Mineral Turpentine Oil:Rubber Processing Oil:Solvent:-

Diana:-

High Flash High Speed Diesel:Bitumen:-

Used in all production industries as Boiler Fuel


Used as Extractor in food industry and mainly
In sweet oil
Generally used in all production industry as fuel
Mainly in paint industry
Rubber Processing Industry
Used in Tire industry and also in food industry
As solvent cracker
Rubber Ingredient Oil and Paraffin type of
Processing oil only dispatched to Mazgaon Dock
Used as Bunker to Vessels as per D G Shipping
Used in road construction industry

STATUTORY REQUIREMENTS
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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Statutory requirements are those requirements which are applicable by virtue of law enacted
by the government. These requirements are non-negotiable and must be compiled with.
Failure to comply a legal requirement may result in a fine or penalty or possibly a custodial
sentence for the person or persons responsible for such failure. Statutory refers to the laws
passed by a state and/or central government.
Accordingly, the organization should have a methodology in place (i) for determining,
maintaining and updating all statutory requirements, (ii) for communicating all applicable
statutory requirements within the organization. The organization should ensure that
determined statutory requirements are utilized as Process Inputs. The organization should
monitor Process Outputs for compliance with statutory requirements.
It should be the responsibility of the personnel/departments concerned to meet these
determined requirements. The top management should also review at defined intervals
meeting applicable statutory requirements.
It will be a good idea that the auditor during the audit preparation phase obtains relevant
information from internal as well as external sources with respect to the statutory
requirements that may apply to the organization and its product, such as, legal requirements
related to health, safety and environment. An internal auditor can find the compliance during
audit process by inquiring to the following:

Whether the organization has determined applicable statutory requirements related to

the product?
What are the determined applicable statutory requirements?
How the organizations people are communicated the importance of meeting statutory

requirements?
Whether the determined statutory requirements are utilized as process inputs in
determination of requirements related to the product and also in reviewing design and
development inputs.

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

GENERAL STATUTARTY ACTS APPLICABLE TO EVERY


BUSINESS
FACTORIES ACT, 1948
A FACTORY has been defined under the act as
any premises whereon ten or more workers are
working

and

in

any

part

of

which

manufacturing process is carried on with the aid


of power or whereon twenty or more workers
are working on a manufacturing process carried
on without the aid of power on any day in the
preceding 12 months.
'WORKER' under the act is any person
employed directly or through or by any agency
including a contractor, with or without the
knowledge of the principal employer, whether
for remuneration or not.
Compulsory Approval Licensing & Registration of Factories

Every employer has to obtain previous permission of the State Government for the site on
which factory is to be situated, and for the construction and extension of the factory. For this
he has to submit plans & specifications of constructions for certification and approval to the
Chief Inspector of Factories or the State Government. He has also to get his factory registered
and obtain license for operating it, by paying prescribed license and registration fees and
supplying such information as may be required by the Government. A factory shall not be
deemed to be extended by reason of replacement or addition of any plant or machinery if
such addition or replacement does not reduce the minimum clear space considered necessary
for safe working around plant and machinery or adversely affects the environmental
conditions of the factory. (Sec 6 & 7)

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

HEALTH MEASURES

a) Cleanliness and disposal of Waste and Effluents:


The occupier is required to keep the factory premises clean and free from waste and effluvia.
He shall make arrangements for sweeping and removing dirt, disposal of wastes and effluents
and maintaining proper drainage. All inside walls, partitions, staircases and roofs shall be
white-washed once in 14 months or re-varnished and painted once in 3 years with washable
paint or once in 5 years with non-washable paint. Besides all doors, window frames, other
wooden or metallic frame work and shutters should be painted or varnished at least once in 5
years. The dates of white washing, painting or varnishing etc. should be recorded in the
prescribed register.
b) Ventilation Temperature and Humidity:
The factory premises should be adequately ventilated by circulation of fresh air and
comfortable temperature should be maintained in every work room. Besides, artificially
increased humidity should be controlled by use of purified water. Specific rules with respect
to ventilation and temperature are prescribed by the respective state governments. Same
should be referred to and complied with.
c) Prevent Dust and Fumes:
Accumulation and inhalation of dust and fumes injurious to health of workers should be
prevented by use of exhaust fans and other safeguards.
d) Avoid Overcrowding:
The work place should not be overcrowded by workers and minimum space of 14.2 cm
/worker in a new factory and 9.9 cm. per worker in an existing factory should be provided.

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

e) Lighting & Drinking Water:


Sufficient and suitable natural and artificial lights, wholesome drinking water at suitable
points and cool water in factories employing 250 or more workers during hot season should
also be provided.
f) Latrines Urinals & Spittoons:
Every factory should provide adequately lighted and ventilated latrines and urinals for male
and female workers separately, and spittoons at suitable locations. Further, the latrines, the
urinals and spittoons should be washed and cleaned regularly with detergent and disinfectants
yearly. The number of latrines and urinals to be provided is specified by the respective State
Governments. The same should be referred to and complied with.
To undertake Safety Measures

a. Fencing of all dangerous and moving


parts of the Machinery while in motion or
use.
b. No person shall be employed to lift,
carry or move excessive loads. As per
Maharashtra Rules the maximum load
prescribed is 55 kg for an adult male and
30 kgs for an adult female.
c. The safe working load of each device shall be clearly marked thereon and never exceeded.
d. Keeping floors, stairs, steps etc., free from obstruction and slippery substances and
provided with substantial handrails, wherever necessary. Provide safe means of access to
every place of work.

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

e. Taking necessary precautions and providing screens or goggles for protection of eyes,
precautions to prevent exposure to dangerous fumes, gases or dust and measures to prevent
accumulation of explosive or inflammable dust, fumes, gases or vapors. Besides, portable
electric light or other appliance of voltage exceeding 24 volts shall not be used inside a
confined space unless adequate safety devices are provided.
f. Providing safe means of escape in case of fire, necessary fire-fighting equipment and
training workers about use of such equipment.
g. The Inspectors are empowered to inspect any factory building, plant or machinery and
ensure that these are maintained in safe conditions and are not detrimental to the health of
workers.
h. Appointing Safety Officers in factories employing 1000 or more workers, or where
workers are exposed to risks of bodily injury, poisoning or disease or any other hazard to
health.

SPECIAL PROVISIONS RELATING TO SAFETY: (SEC 41-B to 41- H)

Under the FIRST SCHEDULE of the Factories Act, 1948 the following categories of
industries

have

been

declared

as

HAZARDOUS

PROCESS.
PETROLEUM INDUSTRIES
- OIL REFINING
- LUBRICATING OILS AND GREASES
- HIGHLY FLAMMABLE GASES AND LIQUIDS
Thus under this definition both Refineries, all Depots, Terminals, Lube plants, Lube depots
and L.P.G plants will be covered under the definition of Industries involved in hazardous
process.

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION


Compulsory Disclosure of Information by the Occupier (SEC41B)

The occupier of every factory involving a hazardous process shall disclose in the manner
prescribed all information regarding danger, including health hazards and the measures to
overcome these hazards to the workers employed in the factory, the Chief Inspector, the Local
Authority within whose jurisdiction the factory is situated.
The occupier shall lay down detailed policy with respect to Health and Safety of the workers
employed therein and intimates it to the Local Authority and the Chief Inspector.
Every occupier shall draw up an on-site emergency plan and detailed disaster control
measures for his factory and make it known to the workers employed and to the general
public living in the vicinity of the factory.
Every occupier of the factory engaged in a hazardous process shall inform the Chief Inspector
of the nature and details of the process.
The occupier of a factory involving a hazardous process shall with the previous approval of
the Chief Inspector, lay down measures for handling, usage, transportation and storage of
hazardous substances inside the factory and the disposal of such substances outside the
factory premises and publicize them to the workers and the general public in the vicinity.

SPECIFIC RESPONSIBILITY OF THE OCCUPIER IN RELATION TO


HAZARDOUS PROCESS

The occupier of a factory involving a hazardous process shall maintain:


a) Accurate and up to date health record of the workers in the factory who are exposed to any
chemical, toxic or other harmful substances which are stored, handled or transported.
b) Appoint persons who possess qualifications and experience in handling hazardous
substances and are competent to supervise such handling within the factory and to provide at
the working place all necessary facilities for protecting the workers in the manner prescribed.

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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION


Welfare Amenities

Every factory shall provide adequate and suitable facilities for:


a. First-aid boxes or cupboards equipped with the prescribed contents [at least one box for
every 150 workers] shall be maintained under the charge of a person certified for the same
and readily available during working hours in the factory.
b. Ambulance rooms [when ordinarily 500 or more workers are employed in the factory]. The
ambulance room shall be of the prescribed size, having equipment and medical and nursing
staff, which shall be available during working hours.
c. A canteen [when ordinarily 250 or more workers are employed in the factory]. The canteen
shall be suitably located and sufficiently lighted and ventilated. It shall be of the prescribed
size, equipped with necessary furniture, utensils, etc. and operated on non-profit basis.
d. Rest-rooms/shelters and lunch rooms with provision for drinking water [when ordinarily
150 or more workers are employed in the factory]. The rest rooms and lunch rooms should be
sufficiently lighted and ventilated suitably furnished and kept in a clean condition.
Besides, if in a factory ordinarily 500 or more workers are employed, the employer shall
appoint such welfare officers as may be prescribed.

WORKING HOURS, HOLIDAYS AND OVERTIME

a. Working Hours:
The working hours for an adult worker or an adolescent certified to work as an adult, should
not exceed 48 hours in a week and 9 hours in a day, while for a child the working hours
should not exceed 4-1/2 hours in a day.
b. Rest Intervals:
Rest Intervals and Spread over - Every worker is to be allowed at least half-an-hour rest
interval after a maximum working of 5 hours at a stretch. The total hours of work [including

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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

rest hours] are to be spread over not more than 10 1/2 hr. and with special permission up to 12
hrs.
c. Weekly Holidays:
Weekly Holidays - Every worker is to be allowed one holiday in a week, on any day so that it
does not result in more than 10 days continuous work without a holiday. Whenever a worker
is required to work on a weekly holiday he is to be allowed a compensatory
d. Overtime:
Overtime - A worker working for more than 9 hours any day or for more than 48 hours in any
week, shall be entitled to wages in respect of such overtime work at twice the ordinary rate of
wages.
The total working hours in a week including overtime should not exceed sixty and the total
overtime hours in a quarter should not exceed 50.
e) Notice of Periods of work:
Notice of periods of work for adults in English and focal language showing clearly for every
day the periods during which workers are required to work are to be displayed.
f) Notice of accidents/certain dangerous occurrence/diseases:Sec 88 provides that when in any factory an accident occurs which causes death, or which
causes any bodily injury by reason of which the person injured is prevented from working for
a period of 48 hours or more immediately following the accident or which is of such nature as
may be prescribed in this behalf, the manager of the factory shall send notice thereof to such
authorities and in such form and within such time, as may be prescribed.
Similarly occurrence OF DANGEROUS diseases shall be intimated to the authorities under
the Act, as prescribed.

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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

g) Prohibition of employment of young children:


No child who has not completed his fourteenth year
shall be required or allowed to work in any factory.
h) Non-adult workers to carry tokens:
A child who has completed his fourteenth year or an adolescent shall not be required or
allowed to work in any factory unless:
(a) A certificate of fitness issues by the certifying supervisor is in the custody of the manager
of the factory, and
(b) Such child or adolescent carries while he is at work a token giving a reference to such
certificate.
Registers tobe maintained/returns to be sent to the Factory Inspector.

These are the registers which required to be maintained in a factory and which are to be put
up for inspection by Inspectors appointed under the act.

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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

CONTRACT LABOUR (R&A) ACT, 1970

Registration of Establishments

Every principal employer of an establishment who wishes to employ contract labor has to get
his establishment registered with the registration officer appointed by the Government for this
purpose. The registration officer issues, registration certificate if the establishment is accepted
for registration. This certificate can be cancelled if it is obtained by misrepresentation or
suppression of any material fact or if the registration has become useless or ineffective or
required to be revoked after the principal employer has been given an opportunity of being
heard and the approval of the Government concerned has been obtained for revocation.
Contract Labor cannot be employed so long as the registration certificate is not issued or after
it has been revoked. For registration the employer has to pay a fee which may vary with the
number of persons employed as prescribed in the rules framed under the Act. (Sec. 6, 7, 8, 9)

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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION


Prohibition of Employment of Contract Labor

Both the Central and State Governments can prohibit employment of contract labor in any
process, operation or other work in any establishment after consulting their Advisory Boards
and considering the conditions of work and benefits provided for the contract labor in that
establishment. Employment of contract labor may not be permitted for any process, operation
and other work if:
a) It is incidental to, or necessary for the industry, trade business, manufacture or occupation
that is carried on in the establishment.
b) It is of perennial or perpetual nature of sufficient duration.
c) It is done ordinarily through regular workmen in the establishment or an establishment
similar thereto.
d) It is sufficient to employ considerable number of whole time workmen.
If a question arises whether any process, operation or other work is of perpetual or perennial
nature, the decision of the Government concerned is to be final.
Some of the important processes, operations and other works for which contract labor may be
permitted to be employed, are loading and unloading construction works, as these may satisfy
one or the other above mentioned conditions for the employment of contract labor.

Licensing Of Contractors

Every contractor has to obtain license for employing contract labor form the licensing officer
appointed by the Government for this purpose. In his application for license he has to
mention the location of his establishment, nature of operation of work for which contract
labor is to be employed, and such other particulars as may be required by the licensing
officer. He is charged license fee varying with the number of contract labor employed as
specified in the rules framed under the Act. The license may contain conditions as to hours of
work, fixation of wages and other essential amenities in respect of contract labor as the
Government may consider fit to impose and which the contractor may be required to comply

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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

with while employing contract labor For ensuring compliance with these conditions the
contractor has to deposit a cash security of the amount required by the licensing officer.
License is issued for a specified period on expiry of which it has to be renewed. The license
can be revoked or suspended after giving license holder an opportunity of showing cause if it
is found that it has been obtained by misrepresentation or suppression of material facts, or if
any conditions of license or any other provision of the Act and its rules have not been
complied with. The licensing officer may also forfeit whole or part of the security deposit.

Welfare and Health of Contract Labor

The contractors may be required to provide and maintain.


a) Sufficient supply of wholesome drinking water at convenient places.
b) Sufficient number of latrines and urinals and urinals of the prescribed type conveniently
situated and accessible.
c) Wash facilities
d) First Aid box equipped with prescribed contents at every place where contract labor is
employed.
e) One or more canteens if the work is to continue for a prescribed period and 100 or more
workers are employed. Number of canteens standard of their construction, furniture and
equipment and the type of food to be supplied, are to be prescribed under the rules framed by
the Government.
f) Sufficiently lighted and ventilated rest rooms or alternative accommodation where work
requiring contract labor is likely to continue for a specified period and contract labor required
to halt at night in connection with the work of the establishment.
If the Contractor fails to provide these facilities the principal employer will have to provide
the same and recover the expenses involved from the contractor.
The contractor is also to be responsible for making regular and timely payment of wages to
his workers. The payment is to be made in the presence of the authorized representative of the
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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

principal employer. If the contractor does not make payment the principal employer will do
the same and recover the amount so paid from the Contractor.

Obligations of Principal Employers and Contractors

Every principal employer and contractor, who wants to employ contract labor, is to:
a) Get his establishment registered with the registering officer appointed by the Government.
b) Obtain license from the licensing officer for employing contract labor and comply with the
terms and conditions of the license.
c) Not to employ contract labor without obtaining registration certificate and license and after
the registration certificate and license are revoked or suspended.
d) Provide welfare and health facilities as required under the Act and its rules.
e) Pay wages to workers before the expiry of the wage period.
f) Co-operate with the inspectors in inspecting premises, documents and records and
examining any person to see if the provisions of the Act and the rules are being complied
with.
g) Maintain such registers and records with such particulars of contract labor, as nature of
work performed, rates of wages and other information specified in the rules framed under the
Act.
h) Exhibit in the premises of the establishment, where contract labor is employed, notice
showing hours of work, rates of wages. Wage period, dates of payment of wages, nature of
duties and other particulars as mentioned in rule 81 of the Act.
i) send a half yearly return to the licensing officer and yearly return to the registration officer
and to supply such other information and statistics as may be required by the Government
from time to time.

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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Rights of Principal Employers and Contractors

The principal employer and contractors have the right to:


a) Appeal to the appellate officer against the orders of the registration officer and the
licensing officer either for refusing or revoking registration or license within 30 days of
receiving such orders.
b) Be represented by their representatives on the Central and State Advisory Boards.
c) Claim such working conditions, facilities and other benefits as are provided under the Act
and rules framed under the Act.
d) Be represented by their representatives on the Central and State Advisory Boards.

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THE ENVIRONMENT (PROTECTION) ACT, 1986 AND THE RULES


FRAMED THEREUNDER

The Environment (Protection) Act was enacted in May 1986 which came into force in the
whole of India on the 19th November 1986. This general legislation on environmental
protection should enable coordination of activities of the various regulatory agencies, creation
of an authority or authorities with powers for environmental protection, regulation of
discharge of environmental pollutants and handling of hazardous substances, speedy response
in the event of accidents threatening environment and deterrent punishments to those who
endanger human environment, safety and health.
Provisions in the Act

There are 26 Sections in the Act. Section 2 of this Act deals with definitions of various terms
used. Environment as defined includes water, air and land and the interrelationship which
exists among and between water, air and land and human beings other living creatures, plants
micro-organism and property.
Environmental Pollutant means any solid, liquid or gaseous substances present in such
concentration as may be or tend to be injurious to environment.
Hazardous substance means any substance or preparation which by reason of chemical or
physiochemical properties or handling is liable to cause harm to human beings, other living
creatures, plants, micro-organism, property or the environment.
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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Section 3 of this Act confers power on the Central Government to take all such measures as it
deems necessary or expedient for the purpose of protection and improving the quality of the
environment. Such measures include the laying down standards by the Central Government
for emission or discharge of environmental pollutants from various sources whatsoever.
Environment (Protection Rules, 1986)

In exercise of powers conferred by Sections 6 and 25 of the Environment (Protection) Act,


the Central Government made the above Rules. There are 14 rules of which rules 3, 5 & 13
are of great significance. There have been a number of amendments to the Rules since its
coming into force on 19th November 1986.
Under rule 3, the standards for emission or discharge of environmental pollutants from the
industries, operations or processes have been specified in schedules, I to VII for the purpose
of protecting and improving the quality of environment and preventing and mitigating
environmental pollution.
Ambient air quality standards in respect of noise are specified in Schedule III whereas
Schedules IV and VII contain standards for emission of smoke, vapor etc. from motor
vehicles and national ambient air quality standards respectively.
Rule 5 underlines the factors that the Central Government may take into consideration while
prohibiting or restricting the location of industries and carrying on of processes and
operations in different areas.
Government

Subsequently in May 1994 the Central Government issued a notification, The Environment
Impact Assessment Notification, 1994 under Schedule 3 of the Environment (Protection)
Act, 1986 and rule 5 of the Environment (Protection) Rules underlining the requirements of
environmental clearance of a new project or for expansion or modernization of any activity
from the Central Government. Twenty nine projects have been specified for which
environmental clearance is to be sought from the Central Government provided investment in
17 projects are 50 crores or more.

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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Rule 14 enjoins upon every person carrying on an industry, operation or process requiring
Consent from the Pollution Control board to submit and environmental statement annually
to the Board by thirtieth day of September.

THE PETROLEUM ACT, 1934


Petroleum means any liquid hydrocarbon or mixture of hydrocarbons and any inflammable
mixture (liquid, viscous or sold) containing any liquid hydrocarbon).

Control Over Petroleum


Rules for the import, transport and storage of petroleum
a. Prescribing places where petroleum may be imported and prohibiting its import
elsewhere;
b. Regulating the import of petroleum;
c. Prescribing the periods within which licenses for the import of 12[petroleum Class A]
shall be applied for, and providing for the disposal, by confiscation or otherwise, of

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any 12[petroleum Class A] in respect of which a license has not been applied for
within the prescribed period or has been refused and which has not been exported;
d. Regulating the transport of petroleum;
e. Specifying the nature and condition of all receptacles and pipe-lines in which
petroleum may be transported;
f. Regulating the places at which and prescribing the conditions subject to which
petroleum may be stored;
g. Specifying the nature, situation and condition of all receptacles in which petroleum
may be stored;
h. prescribing the form and conditions of licenses for the import of 12[Petroleum Class
A], and for the transport or storage of any petroleum, the manner in which application
for such license shall be made, the authorities which may grant such licenses and the
fees which may be charged for such licenses;
i. Determining in any class of cases whether a license for the transport of petroleum
shall be obtained by the consignor, consignee or carrier;
j. Providing for the granting of combined licenses for the import, transport and storage
of petroleum, or for any two of such purposes;
k. prescribing the proportion in which any specified poisonous substance may be added
to petroleum, and prohibiting the import, transport or storage of petroleum in which
the proportion of any specified poisonous substance exceeds the prescribed
proportion; and
l. generally, providing for any matter which in 13[its] opinion is expedient for proper
control over the import, transport and storage of petroleum 14[including the charging
of fees for any services rendered in connection with the import, transport and storage
of petroleum.]

Comment:
According to sub-rule (1) of R. 151 it is clear that a 'No objection Certificate' granted under
R. 144 can be cancelled wherever the licensee ceases to have any right to use the site for
storing petrol and that right could be lost by a licensee either by his tenancy or right to the use
of the site coming to an end or for any other reason whereby, in law, the right to use the site
for storing ceases.

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STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Production, refining and blending of petroleum


(1) No one shall produce, refine or blend petroleum save in accordance with the rules
made under sub-section (2).
(2) The Central Government may make rules
(a) Prescribing the conditions subject to which petroleum may be produced, refined or
blended; and
(b) Regulating the removal of petroleum from places where it is produced, refined or
blended and preventing the storage therein and removal there from, except as
15[petroleum Class A] of any petroleum which has not satisfied the prescribed tests.

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CLASSIFICATION OF PETROLEUM PRODUCTS


Petroleum products are classified according to their closed cup FLASH POINTS as given
below:
Class-A Petroleum: Liquids which have flash point below 23C.
Class-B Petroleum: Liquids which have flash point of 23C and above but below 65C.
Class-C Petroleum: Liquids which have flash point of 65C and above but below 93C.
Excluded Petroleum: Liquids which have flash point 93C and above.
Liquefied gases including LPG do not fall under this classification but form separate
category.
Note: In the following cases, above classification do not apply and special precautions should
be taken as required:
(i) Where ambient temperatures or the handling temperatures are higher than the flash point
of the product.
(ii) Where product handled is artificially heated to a temperature above its flash point.

24

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

CLASSIFICATION OF HAZARDOUS AREA


Hazardous Area
Hazardous Area is an area in which an
explosive gas atmosphere is present, or
likely to be present, in quantities such as to
require

special

construction,

precautions

installation

and

for
use

the
of

electrical apparatus.

Non- Hazardous area


Non Hazardous Area is an area in which an explosive gas atmosphere is not expected to be
present, in quantities such as to require special precautions for the construction, installation
and use of electrical apparatus.
The hazardous area is mainly defined for the purpose of selection and installation of electrical
equipment however; definition shall be applied as specified herein after for other purposes
also.
An area will be deemed to be hazardous where;
1. Petroleum having flash point below 65C or any flammable gas or vapor in a
concentration capable of ignition is likely to be present.
2. Petroleum or any flammable liquid having flash point above 65C is likely to be
refined, blended or stored at above its flash point.
A hazardous area shall be deemed to be

A zone O area, if inflammable gas or vapors are expected to be continuously


present in the area; or

A zone 1 area, if inflammable gases or vapors are likely to be present in the area
under normal operating conditions; or
25

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

A zone 2 area, if inflammable gases or vapors are likely to be present in the area
only under abnormal operating conditions or failure or rupture of equipment.

LAYOUT DESIGN
Following philosophy should be adopted in layout of an
installation (OISD 244):
1. Risk Analysis / Assessment shall be carried out at the layout stage with an objective to
arrive at any specific mitigation measures required for Hazards identified. Risk
reduction / mitigation measures shall be given due credit.
2. Roads inside the hazardous area of Installation shall be restricted to vehicles required
for operational, maintenance and safety/security reasons and allowed only with proper
safety fittings and authorization from location in-charge/designated safety officer.
3. Alternative access shall be provided for each facility so that it can be approached for
firefighting in the event of blockage on one route.
4. Rail spur shall be located close to the boundary of the installation to minimize
road/pipe crossings and blockage of roads during shunting.
5.

Layout shall consider the space requirements for


Maintenance and inspection of each equipment / facility.
Dedicated area for construction activities.
Future expansion for addition of facilities.

6. Vehicles with spark ignition engine shall not be allowed inside hazardous area.
7. Physical segregation of hazardous and non-hazardous areas shall be provided. Layout
drawing indicating hazardous and non-hazardous area segregation /demarcation shall
be available. Hazardous area segregation/demarcation shall be as per IS
5572:2009 & OISD 113.
8. OISD-STD-106 explains in detail the "Process Design and Operating Philosophies on
Relief and Disposal systems"

26

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Types of Storage Tanks

i) External Floating Roof Tank (EFRT)


External Floating roof (EFRT) may be single deck pontoon roof or double deck. For
designing the EFRT tanks with single deck pontoon roof or Double deck, API STD 650 shall
be followed.
ii) Fixed Roof Tank
Fixed roof may be of cone type or dome shaped. The tank may be pressurized (to a few
inches of water) type with fuel gas or inert gas blanketing to prevent oxygen/moisture
ingress. For designing atmospheric/low pressure tanks, API STD 650 or API STD 620 shall
be followed based on the type of the tank.
iii) Internal Floating Roof Tank (IFRT)
These tanks have a fixed roof over a floating roof. For designing these tanks, API STD 650
guidelines shall be followed.

27

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Layout of storage tanks


Dike Enclosures:

a) Petroleum storage tanks shall be located in dike enclosures. Each dike shall have roads all
around for access for normal operation and maintenance as well as for emergency handling.
Aggregate capacity (Combined safe capacity) of tanks located in one dike enclosure shall not
exceed following values:

60,000 cum. for a group of fixed roof tanks.


120,000 cum. for a group of floating roof tanks

If a group of tanks contains both fixed and floating roof tanks, then it shall be treated as a
group affixed roof tanks for the purpose of above limits.
b) Dike enclosure shall be able to contain the complete contents of the largest tank in the dike
in case of any emergency. A free board of 200 mm above the calculated liquid level or 10% of
calculated dike capacity whichever is higher shall be provided for fixing the height and
capacity of the dike.
The height of tank enclosure dike (including free board) shall be at least 1.0 m and shall not
be more than 2.0 m above average inside grade level. The dike wall made up of earth,
concrete or solid masonry shall be designed to withstand the hydrostatic load and shall be
impervious. Earthen dike wall shall have not less than 0.6 meter wide flat section on top for
28

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

stability of the dike wall. Dike enclosure area (inside area of the dike) shall be also
impervious to prevent the ground water pollution.
c) In case of Under Ground Tanks :

Kerb wall of minimum 30 cm height shall be provided in the UG tank Farm Area to

contain accidental overflow.


A minimum of 3 M clear distance around the tank shall be maintained (from

structures / boundary wall etc.).


Vents shall be located / terminated at a distance of 15 meters from hazards.
Pressure / Vacuum vents for class A product and free vents for other class of products

shall be provided. Vent shall be at minimum 4 M height from the grade level.
The open end of free vent pipe shall be covered with two layers of non- corrodible
metal wire gauze having not less than 11 meshes per liner centimeter and shall be

further protected from rain by hood or by suitably bending it downward.


The petroleum shall enter a tank through closed piping system / coupled electrically

continuous and sound hose.


Under Ground tanks for Ethanol service shall be provided with Silica Gel Traps in the

Vents to prevent moisture ingress.


The manholes should be 30 cm above the grade level.

FIRE WATER SYSTEM


The size of process plant, pressure and temperature conditions, and size of storage, plant
location and terrain determine the basic fire protection need. Layout of an installation shall be
done in accordance with OISD Standard- 118 on Layouts to ensure adequate firefighting

29

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

access, means of escape in case of fire and also segregation of facilities so that the adjacent
facilities are not endangered during a fire.
Location of firewater pumps & tanks shall
be in line with OISD-STD-116, OISD-STD117 & OISD-STD-144 as the case may be.
Fire Water Flow Rate
Water flow calculated for cooling a tank-onfire at a rate of 3 lpm/m2of tank shell area.
Fire Water Storage
The storage should be located as far away as possible (not less than 60 M) from hazardous
areas to avoid any damage in case of fire/explosion. The effective capacity of the reservoir
above the level of suction point shall be minimum 4hours aggregate working capacity of
main pumps (excluding standby pumps). Where rate of makeup water supply is 50% or more,
this storage capacity may be reduced to 3 hours aggregate working capacity of main pumps.
Capacity of main Pumps
The capacity and number of main firewater pumps shall be fixed based on design fire water
rate, worked out on the basis of design criteria as per section 5.2. The capacity of each pump
shall not be less than, 400 m3/hr. or more than 1000 m3/hr. All pumps should be identical
with respect to capacity and head characteristics.
Fire Fighting Equipment
Firefighting equipment shall be inspected and tested as per OISD-STD-142 and record
maintained.

30

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

ELECTRIC WIRING (Petroleum Act


1934):
(1) All conductors of an intrinsically safe circuit in
connection with an intrinsically safe apparatus installed
in any hazardous area shall be so laid as to prevent
invasion of such circuit by current arising from contact or electrostatic or electromagnetic
induction from any other circuit. Conductors of intrinsically safe circuits shall be effectively
protected against mechanical damage.
(2) All electric wiring in a hazardous area, other than the conductors of an intrinsically safe
circuit, shall be effectively sealed at all joints, mechanically protected and adequately
supported throughout its length and shall consist of

approved armored cable with correctly designed terminations, complete with armor
clamps, the armoring being carried and electrical clamps to provide mechanical

support to the cable and electrical continuity; or


Approved metal sheathed cable with correctly designed and installed terminations; or
single or multi core insulated cables accommodated in solid drawn heavy gauge
screwed galvanized conduits used in conjunction with approved flameproof fittings,
the conduit being sealed at both ends and installed in such a manner as to permit
internal condensation to drain to a point or points from which it may be removed;
where a conduit runs from a zone 1 area to a zone 2 area or an area which is not a
hazardous area, an adequate seal shall be provided outside the boundary of zone 1

area;
single or multi core mineral insulated cable of approved type in conjunction with

approved flame-proof type glands at all joints and terminations;


Bare conductors contained in an approved flameproof or forming part of an
intrinsically safe circuit.

(3) The electric supply circuits of each electric pump in a hazardous area shall be

Separately protected by a fuse or circuit breaker set to operate when the current in the

circuit so exceeds the rated current for such a period of time as to involve danger; and
Provided with an individual isolating switch at the main supply point for each electric
pump including its integral lighting system, if any.

31

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

EARTHING AND BONDING (Petroleum Act 1934):

(1) All electrical systems and equipments and all structures, plants and other non-currentcarrying metallic parts of major electric apparatus or any major metallic object in any place
where petroleum is refined, blended, stored, loaded or unloaded shall be efficiently earthed;
the resistance value of and earthing system to the general mass of the earth, shall not be more
than

4 ohms in the case of electrical systems and equipment or a valve that ensures the

operation of the protective device in the electrical circuit, whichever is lower, and
10 ohms in the case of all non-current carrying metallic parts of major electric
apparatus or any major metallic object.-

(2) All joints in pipelines, valves, plants, storage tanks and associated facilities and
equipments for petroleum shall be made electrically continuous by bonding or otherwise; the
resistance value between each joint shall not exceed 1ohm.
32

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

(3) A piping which is not in electrical contact with the associated tank or vessel shall be
efficiently connected to such tank or vessel by a flexible conductor and earthed.
Cathode protection
(1) Cathode protection system where employed shall be designed and installed in accordance
with the current recognized practice and so maintained as

Not to affect adversely metallic bodies in the zone of protection; and


To eliminate the danger of sparking in a hazardous area.

(2) The metallic structures, pipelines, valves, plants and associated equipment under cathode
protection shall not be broken for repair or maintenance unless a heavy gauge conducting
cable is clamped to each side of the intended break for establishing between them an
electrical bond and the cable shall remain clamped until repair or maintenance work is
completed and the break rejoined.

33

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

MOTOR VEHICLE ACT 1988


Motor Vehicle Rule-9:
Educational qualification of drivers:
Ability to read and write one Indian language and English, and also possess a certificate
having successfully passed a course consisting of following syllabus and periodicity
connected.
Period of training 3 days (for first time)
Period of training 1 day (for every year)

Syllabus:

Defensive driving questionnaire First Day


Advanced Driving skill and training Second Day
1. Discussion
2. Field test training (1 driver at a time)
Product safety Third day
1. Product information
2. Emergency Procedure

Motor Vehicle Rule-129:


1. Vehicles Transporting Goods of dangerous or Hazardous nature to human life.

Shall display a distinct mark of Class Label appropriate to the type of dangerous

goods as specified.
Shall be equipped with safety equipment for preventing fire, explosion or escape of
hazardous or dangerous goods.

3. Shall be fitted with Techno graph (an instrument to record the lapse of running time
of the motor vehicle, time speed maintained, acceleration, declaration etc.,)
conforming to the BIS specifications.
Every vehicle carrying goods of dangerous or hazardous nature shall be fitted with a SPARK
ARRESTER (Rule 129-A).

34

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Motor Vehicle Rule-131:


Responsibility of consignor for safe transport of dangerous or hazardous goods:
1. The consigner should ensure the following

The goods carriage has a valid registration to carry the said goods
The vehicle is equipped with necessary first aid, safety equipment and antidotes as

may be necessary to contain any accident


The transporter or owner shall have full and adequate information about the goods

being transported.
The driver of the goods carriage is trained in handling the dangers posed during
transport such goods.

2. Every consigner shall supply to the owner full and adequate information about the goods
being transported.

Motor Vehicle Rule-132:


Responsibility of the Owner
1. The owner should ensure

The vehicle has a valid registration to carry the said goods & It is safe for

transportation
The vehicle is equipped with necessary first aid, safety equipment, tool box and
antidotes as may be necessary to contain any accident.

2. The owner should satisfy himself that the information given by the consigner is full and
accurate in all respects.
3. The owner shall ensure that the driver is given all the relevant information in writing as
given in annexure v
4.

The owner and the consigner shall lay down the root for each trip, unless directed or

permitted otherwise by the police.


5. The owner to ensure that the driver holds a driving license as per the CMV rule 9.

35

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Motor Vehicle Rule-133:


Responsibility of the Driver
The driver should ensure the information given to him (Annexure V) is kept in the drivers
cabin.
The vehicle while in motion, and when it is parked in a place and at all times should be kept
safe from fire, explosion, and any other risk under his supervision or some other competent
person above the age of 18 years.

Motor Vehicle Rule-134:


Emergency information panel as specified should be placed on vehicles

Place for Fixing Emergency Information Panel


36

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Motor Vehicle Rule-137:


The class labels namely Explosives, Non-flammable gases, Flammable Gasses, Poison (Toxic
Gases), Inflammable liquids, Inflammable Solids etc.

A driver of a vehicle used to transport hazardous materials must:


37

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

(1) Receive training before operating the vehicle for 3 days at a recognized institution
(2) Recurrent training must receive the required training and for keeping detailed records
of when and what training was given occur every year for one day. Hazmat employers
are responsible for certifying that each hazmat employee has
Documents Required:(See Annexure-I for reference)
-Vehicle:
1. Registration Certificate (RC book)
2. Tax proof
3. Fitness Certificate
4. Insurance Certificate.
5. Permit issued by RTA.
6. P.U.C Certificate.
-Vehicle Tank:
1. Explosive license.
2. Emergency information panel.
3. Hazard class label.

38

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

LICENSING PROCESS FROM CUSTOMER SIDE


According to Petroleum Act,

Section 3:- No one shall import, transport or store any petroleum except in accordance

with the rules made under Section 4.


Section 7 :- No license needed for transport or storage of :
i) Petroleum Class B (Non Bulk) in quantity not exceeding 2500 liter and in
receptacle not exceeding 1000 liter.
ii) Petroleum Class C (In Bulk) in quantity not exceeding 45,000 liter

Different Licenses and Forms(See Annexure-II for reference)


Form IX ( Petroleum Rules )
Purpose:
The license in form IX under the Petroleum Rules, 1976 is granted to transport petroleum
class A and/or class B in bulk on land by mechanically propelled vehicle. Such vehicle for
transportation of petroleum is called petroleum tank lorry or in short, tank lorry or tank truck.
Licensing Authority :( i.e., the authority empowered to grant the above said license)
The Tank lorry license in form IX under Petroleum Rules, 1976 is to be grantedby respective
circle office of the Department of Explosives or the respective sub-circle office under whose
jurisdiction the applicant belongs.
Form XIV (Petroleum Rules)
Purpose:
The license in form XIV under the Petroleum Rules, 1976 is granted to import and store,
otherwise than in bulk, petroleum class A in quantities exceeding 300 liters or petroleum class
B in quantities exceeding 25000liters or petroleum class C in quantities exceeding 45000
liters or petroleum class A together with any other class of petroleum in quantities
exceeding300 liters in all in a petroleum godown.
Licensing Authority :( i.e., the authority empowered to grant the above said license)
To be granted by the respective circle office of the Department of Explosives.
Form of license/approval purpose and licensing/approving authority
39

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

Sr. No.

PURPOSE

Whether License is

Licensing/Approving

required(with form) or

Authority

Approval is required
1

Transport of petroleum by tank lorry

License (form IX)

Circle/sub Circle
office

Storage of petroleum class A in barrels

License (form X)

District Authority

License (form XI)

District Authority

License (form XIV)

Circle/sub Circle

up to300 liters.

Storage of petroleum class B in barrels


up to25000 liters.

Storage of petroleum in barrel for


petroleum class A, exceeding300liters,

office

petroleum class exceeding 25000 liters


petroleum class Exceeding 45,000 liters
in barrels.

Permission for petroleum class C up to

Approval

45 kl
6

Approval of electrical equipment for


hazardous area.

Circle/sub Circle
office

Approval

Chief Controller of
Explosives

40

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

OBJECTIVES

To understand in detail the functioning of a petroleum terminal.


To study the impact of petroleum industry and a leading petroleum terminal on Indian

economy
To understand how world-class standards of health, safety and environmental

protection are maintained.


To study the standard procedures practiced at a petroleum terminal.
To understand the specific rules and regulations observed at a petroleum terminal.

To discover how the national oil and gas demand of the country is met in a costeffective manner.

41

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

RESEARCH METHODOLOGY
The main objective of the project is to study the Statutory Compliances followed in a
Petroleum Terminal. The outcomes are properly analyzed to find out the various aspects like,
Importance of Regulatory Acts, Employee feedback on health, safety and environment,
Modes of Product supply, Daily Demand of Products and Safety practices in the terminal.

The type of research adopted for study is descriptive research.

Type of Research Design


Personal Interview Method

Data Collection
Primary Data Source- Questionnaire, personal interviews
Secondary Data Source- Company manuals, journals, Internet and books
Findings and interpretation- Pie Chart and Bar Chart

Tools Used for survey

Questionnaire method is used as a tool.


It includes thirteen questions.
Questionnaire is closed as well as open ended.
Questions are based on Rules and Regulations in Petroleum Industry, about
inspection, training, safety and daily activities.

42

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

FINDINGS AND INTERPRETATION


1) IMPORTANCE OF STATUTORY ACTS:Below stated statutory acts are need to be followed by every business organization
before commencement of their business activities. There are certain more acts, but in
this project we are studying mainly on below acts which are mandatory for every
petroleum terminal before starting its operation and its important to complete
licensing part according to Petroleum Act. (Rate 1{lowest}-5{highest})
Statutory Acts

Importance

Factories Act, 1948

Contract Labor Act, 1970

Environment Protection Act, 1986

Petroleum Act, 1934

Motor Vehicle Act, 1988

STATUTORY ACTS
Factories Act, 1948

Contract Labour Act, 1970

Environment Protection Act, 1986

Petroleum Act, 1934

Motor Vehicle Act, 1988


19%

19%
19%

24%
19%

INTERPRETATION:As this project is related to Petroleum Industry, Petroleum Act need to be followed
completely and all licensing part need to be completed along with the other acts also
simultaneously followed which are general requirements of every business unit.

43

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

2) EMPLOYEE FEEDBACK:This is the survey done at HPCL and received feedback from some employees about the
Health, Safety and Environment facilities. (Rate 0 %{ less satisfied}-100{more
satisfied})

Facilities at HPCL

Health

Safety

Environment

Employee Feedback

82%

95%

98%

Employee Feedback
100%
95%
90%
Employee Feedback
85%
80%
75%
70%
Health

Safety

Environment

INTERPRETATION:Above chart shows that 82% of the employees have been satisfied with the Health facilities
like drinking water, urinals, and first aid facilities, they were expecting improvement in food
quality. 95% were satisfied with the Safety facilities or the safety precautions at HPCL. And
98% were satisfied with the environment of the organization.

44

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

3) MODE OF PRODUCT SUPPLY:The product is supplied to the customer or depots through different modes i.e. Tank
Truck which means road transportation by truck tanker, Tank Wagon which means rail
transportation by tanker rail and the pipeline transfer means pipelines are installed to
the customers place from storage point. The terminal visited was, performing their
activities mostly by Tank Truck on daily basis, by Tank wagon on weekly basis and by
pipeline according to the requirements (Generally to the port location for ships and
barges). (Rate 1{lowest}-5{highest})
Frequency
As per Requirement

Daily

Weekly

Pipeline

Tank Truck

Tank Wagon

Mode Of Transport

Tank Wagon

As per Requirement

Tank Truck

Daily
Weekly

Pipeline

INTERPRETATION:As the diagram shows that the Tank Truck is the mode of transport used on daily basis, Tank
wagon is on weekly basis and Pipeline is according to the requirement. Generally Pipeline
transfer is used to supply product to the shipping port areas or to the dealers as per their
requirements.
45

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

4) DEMAND OF THE DIFFERENT PRODUCTS :These are the products supplied by the marketing department to the contracted
customer as per their requirements on daily basis. Below chart shows the daily
demand of the product from the customer. (Rate 1{lowest}-10{highest})
Product

Demand

Furnace Oil

Hexane

Light Diesel Oil

Mineral Turpentine Oil

Rubber Processing Oil

Solvent

Diana

High Flash High Speed Diesel

Bitumen

10

Demand
10
9
8
7
6
5
4
3
2
1
0

Demand

INTERPRETATION:Above chart shows that the product Bitumen and Hexane are demanded more on daily basis
and others are comparatively less. According to the availability the product is supplied to the
customers or the depots.

46

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

SUGGESTIONS

Based on my study, I would suggest that HPCL should use an upgraded technology to
ensure smooth functioning of the terminal.

HPCL should reduce the lead time (excess time) required to fill the tanks. Changing
from traditional practices to the automation, it will be easy to deliver accurate product
to the customer on demanded time. This will also help them to improve productivity
and performance.

As HPCL is considered to be the best of all petroleum terminals, it should ensure that
the rules and regulations are followed up to the best possible level keeping into mind
the welfare of Human safety and Environment protection.

HPCL can undertake CSR projects relating to Environment protection. A step to


protect Earth and save natural resources.

47

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

CONCLUSION
We understand that compliance protects Human health and the Environment by improving
environmental behavior through statutory and non-statutory means. This survey shows that
HPCL gives 100% importance to the guidelines assigned by the Oil Industry Safety
Directorate (OISD) and Petroleum & Explosive Safety Organization (PESO).
Through this survey we understand that Human safety and Environment protection has more
importance in every petroleum and oil industry which should be aim of every mankind to
protect the wellness of society. With this mission HPCL running its activities of guiding their
employees with periodical sessions and training on human safety and environment protection.
For that they also organize CSR activities, employment training, safety training and health
measure.
Through this report we came to know about the different acts and rules which need to be
followed before starting or setting a petroleum plant. We studied about the different types of
petroleum products and their uses. We understood the importance of safety and their benefits
to the human and environment as well. We studied about the different licenses and certificates
required for every segment of the business i.e. licenses from the point of view of Owner,
Customer and the training and safety certificates to the truck drivers. We analyzed the
different activities performed at petroleum terminal from refining to storage and from storage
to the supply of product to customer.
So finally, I would like to conclude that the Statutory Compliance provides the legal
framework which assist in enhancing the relationship between the employees and employers
of an organization. Statutory Compliance is the key priority of all organization as it helps an
organization to meet its legal obligations and standards.

48

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

QUESTIONNAIRE
1) According to you up to what extent corporate governance is followed in your
organization?
A.
B.
C.
D.

50%
75%
90%
100%

2) From the following Statutory Acts which are strictly monitored by your organization?
Rate 1-5 according to necessity.
A.
B.
C.
D.
E.

Factories Act, 1948


Contract Labor Act, 1970
Environment Protection Act, 1986
Petroleum Act, 1934
Motor Vehicle Act, 1988

----------------

3) At what intervals your plant is inspected by the governing authorities?


A. Quarterly
B. Half Yearly
C. Yearly
4) How do you create awareness about safety among employees as well as contractual
labor?
A. Sign Boards
B. Periodic Sessions on Safety
C. All the above

5) Intervals at which safety checks are done at your plant?


A. Daily
B. Weekly
C. Monthly
6) Do the contracted parties need separate license for storage of petroleum products?
A. Yes
B. No
7) How do you inspect tank trucks before filling?
A. Individual inspection
B. Checking all the necessary documents
49

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

C. Both of the above


8) Do you provide safety training to the truck drivers?
A. Yes
B. No
9) Explain ways through which product is supplied to the customer?
Tick according to frequency.
A. Tank Truck
a. Daily

b. Weekly

c. As per requirement

B. Tank Wagon
a. Daily

b. Weekly

c. As per requirement

C. Pipeline Transfer
a. Daily

b. Weekly

c. As per requirement

10) List down the products stored and supplied from your plant on daily basis.
Tick more than one.
A.
B.
C.
D.
E.
F.
G.
H.
I.

Furnace oil
Hexane
Light Diesel Oil
Mineral Turpentine Oil
Rubber Processing Oil
Solvent
Diana
High Flash High Speed Diesel
Bitumen

11) How do you control cost at your plant?


Our main emphasis is on human as well as environment safety. We try to reduce over
production, product spillage/waste from tank. And with our advanced safety
equipment and technology we make it as a safe working place. So, that is the big cost
saving for us
12) How the welfare and health of contract labor is maintained at your place?
We are well equipped with all basic requirements at our plant like, clean drinking
water, latrines and urinals, First aid kit at every place where labor is engaged. Before
entering to our plant we first ensure that the labor must be wearing safety belt, helmet,
safety shoes etc. Precaution is better than cure.

50

STATUTARY COMPLIANCE-PETROLEUM TERMINAL OPERATION

13) What initiative you take to protect the Environment?


Our plant is located far from the residential area and we have sufficient greenery at
our plant which helps us to maintain temperature at location. We have rain water
harvesting systems at our location so; we try to protect our environment at our best.

51

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