Professional Documents
Culture Documents
Judgement - (2022) NSWLEC 64
Judgement - (2022) NSWLEC 64
Jurisdiction: Class 1
Before: Duggan J
Representation: Counsel:
P Tomasetti SC and M Astill (Applicant)
T Robertson SC and J Walker (Respondent)
Solicitors:
Fishburn Watson O’Brien (Applicant)
Marsdens Law Group (Respondent)
Publication Restriction: No
JUDGMENT
Nature of proceedings
1 These proceedings are a class 1 appeal brought by Hunter Development
Brokerage Pty Limited trading as HDB Planning and Design (the Applicant)
against the deemed refusal by Singleton Shire Council (Council) of an
application to modify a development consent to permit biomass to be utilised
as a fuel source in an existing electrical generating power plant, known as the
Redbank power plant.
3 The land to which the 1994 DC related was described therein as part of lots 1-3
of DP 247820 and lots 4-5 DP 247820 at Long Point Road and Jerrys Plains
Road, Warkworth. The site is now legally described as lot 450 of DP 1119428
and has an area of about 18.03 ha (the Site).
5 Upon completion of construction of the Redbank power plant on the Site, the
plant commenced commercial operation and supplying electricity to the grid in
October 2001. The Redbank power plant had ceased operation in October
2014 when an alternate market for coal tailings became viable rendering the
price for coal tailings uncommercial for use in the Redbank power plant. Since
2014, the Site has been in care and maintenance mode and has been staffed
by a skeleton workforce.
8 On 18 August 2021, the Applicant was granted leave to amend the modification
application and to rely upon amended plans and documents in the
proceedings. The modification application (as amended) was then re-exhibited
between 31 August 2021 and 27 September 2021.
9 On 29 October 2021, the Applicant was granted leave to further amend the
modification application and rely upon further amended and additional
documents in the proceedings. The amended class 1 application was filed with
the Court on 8 November 2021. The modification application (as further
amended) was then re-exhibited between 9 November 2021 to 7 December
2021. The further amended modification application is the application to which
the determination of this appeal relates and references to the Modification
Application refer to the application in the form of the further amended
Modification Application for which leave was granted (Modification
Application).
Proposed modifications
11 As expanded upon below, the primary modification proposed by the
Modification Application is the introduction of biomass as a supplementary
source of fuel for the operation of the Redbank power plant. Other
modifications that are proposed arise from the proposal to introduce the
additional fuel source or to facilitate the use of the additional fuel source.
Issues in dispute
17 The Council has by way of the SOFAC raised a number of issues for
determination contending that a consideration of those contentions (either
alone or together) would warrant refusal of the Modification Application.
Contention 1 raises the question as to whether the proposed development is
substantially the same, the remaining contentions raise matters going to the
merits of the Modification Application.
18 Both parties accepted that satisfaction that the Modification Application was
substantially the same was a precondition to the consideration of the merits
and determination of the Modification Application. It is appropriate that such an
issue be determined first and, if so satisfied, then turn to the determination of
the merits of the application. If the development is not substantially the same
the statutory precondition to the exercise of power has not been met and,
therefore, a consideration of the merits will not arise.
26 The evidence relating to the terms of the 1994 DC and the scope of the
Modification Application was largely documentary.
What was the development for which development consent was originally
granted?
Evidence – original consent
27 It was the common position of the parties that the scope of the 1994 DC
comprised: the order of the Court and conditions together with the documents
that were incorporated in that development consent by express reference.
1. Scope of Development
The development being carried out generally in accordance with the Amended
Environmental Impact Statement prepared by the National Power Company
and ESI Energy Inc dated November 1993 and the additional clarification
contained in the responses to comments prepared by the National Power
Company and ESI Energy Inc dated 21 February 1994.
30 The documents to which express reference was made in the 1994 DC were, in
particular, those identified in condition 1. From that material, whilst voluminous,
the parties took the Court to a limited number of the documents tendered. Of
those documents, particular attention was placed upon the matters that follow.
The primary reason for implementing the Redbank Project is that it provides an
improved method of tailing usage (efficient utilisation of energy resources) and
ultimate deposition (stable, long-term emplacement). On net the Project
provides significant environmental benefits and will demonstrate that the use
of a clean combustion technology can help to eliminate a serious long-term
environmental problem while providing minimal environmental impacts of its
own.
33 The EIS then proceeded to detail the manner and processes that would be
undertaken to achieve the described project and project objectives. There were
no plans approved as part of the development consent other than some
generalised schematics and indicative drawings that formed part of the EIS.
However, the EIS did include a process flow schematic.
34 It is also apparent from the EIS and the conditions imposed upon the original
consent that with respect to some aspects of the proposed development:
1.67 CB considers that neither the development application nor the approval
as issued provide a high degree of certainty regarding the operation or layout
of the Project many aspects of the Project were preliminary and subject to
commitments of others (Warkworth and Lemington mines) or further
approvals. While the major features of the Project are set out in section 2.5 of
the amended EIS they are based on conceptual level engineering and it is
stated at page 2-9 that “As engineering efforts proceed, changes or
adjustments may be made in plant layout and arrangement, equipment and
processes.”
1.68 CB notes that the process drawing details in Figure 2.5-1, 2.7-1, 2.7-2,
2.9-1 are schematic drawings only showing engineering processes. CB further
notes that Figures 2.10-1, 2.10-2, 2.10-3 and 2.10-4 showing the plant layout
and site arrangements are schematic, do not include legends or scales and
are not labelled.
1.69 CB further notes that elements of the Project were not set in terms of
the consent. For example, the stack height which is identified in the amended
EIS as being between 50- 60 metres was as stated by condition 25 to be in
accordance with the requirements of the Environment Protection Authority. In
terms of ash emplacement, it is noted that condition 34 requires that
satisfactory arrangements are to be made with the Department of Mineral
Resources and Warkworth mine.
35 Section 2.0 of the EIS contained the Project Description which identified factors
such as the selection of: the combustion system; fuel resource and project
sizing; and project siting. Each of these factors, with the exception of the
project siting, discussed the factor as it related to coal tailings. As to the project
siting the proximity to the mine sites and proximity to transmissions lines as
well as other considerations were discussed. Thereafter, the EIS identified the
basic design of the project observing (inter alia) at section 2.5:
The descriptions of the major features of the Redbank Project provided below
are based on conceptual-level engineering completed to date. As engineering
efforts proceed, changes or adjustments may be made in plant layout and
arrangement, equipment and processes.
Fuel for the plant would consist, primarily, of coal washery tailing supplied
directly from the coal preparation plants, supplemented as necessary from the
existing tailing dams and supplemental fuel stockpile. Fuel would be
transferred by slurry pipeline from the Warkworth and Lemington washeries
(and, as needed, from the Warkworth and Lemington tailing dams) to the
Project site via slurry pipeline.
The major equipment was identified with the observations relating to fuel
supply and materials handling stating (inter alia) at section 2.6.1:
16 Fuel Source
At least the majority of the fuel burnt at the power plant in any one year
after commercial operation, on a dry tonnes basis, is to be coal
washery tailings obtained either directly from the Warkworth and/or
Lemington mine washeries or indirectly from tailings storage dams on
the Warkworth and/or Lemington mine leases. Coal washery tailings
are not to be obtained from mines other than the Warkworth and
Lemington Mines without the further approval of Council.
17 Start Up and Supplementary Fuel
Start up and supplementary fuel, other than diesel, is to be obtained
only from the Warkworth Mine. Alternative sources may be utilised in
emergency situations with the approval of the Director Environmental
Services.
18 Project Siting
The plant is to be sited on Site 2, the centre site, as recommended in
the EIS.
33 Removal of Ash
Any proposal to transfer ash by road on a regular basis is to require
the separate approval of Council.
34 Arrangements for Rehabilitation of Ash Emplacement
Satisfactory arrangements are to be made with the Department of
Mineral Resources and Warkworth Mine for the final rehabilitation of
ash emplacement.
Evidence – Modification Application
37 The evidence of the changes proposed by the Modification Application were
also largely documentary.
Applicant’s submissions
39 The Applicant submitted that in order to undertake the necessary task required
by s 4.56 it is essential that the focus be on a comparison of the whole of the
development as originally granted and compare that development to the whole
of the development as proposed to be modified, including a consideration of
those elements that do not change. It is an error to focus solely on one element
of the development, namely fuel type, as to do so is to undertake a task not
authorised by the relevant legislative provisions.
43 In this case, the essence of the whole of the development remains unchanged.
It is and will remain an electricity generating work – a power station in which
super-heated steam is produced from combusting calorific fuels to turn a
turbine that generates electricity fed into the Singleton to Kurri 132kVA
transmission line to power at least 100,000 homes.
45 It is only the range of permissible calorific fuels to provide the heat to the two
boilers that is proposed to be modified. With that change there will be a
change to the fuel delivery method from conveyor and truck for coal tailings to
truck only for biomass. Whilst it is true that trucks will travel state roads to
collect and deliver biomass, using the lawful routes for B-double trucks, the
local roads in Singleton Shire will not be impacted and have the capacity to
carry the trucks. Long Point Road and the Golden Highway have the capacity
to support B-double truck traffic and the intersection of those two roads has
already been upgraded under the 1994 DC.
46 On-site handling of fuel to be able to unload biomass from trucks and transfer it
to stockpiles is a de minimis change. Stockpiles of supplementary coal become
stockpiles of biomass. They are in the same place and of similar footprint and
height.
47 The right to combust coal tailings from Warkworth, Lemington or other coal
mines remains unmodified.
49 The fact that different fuel may be delivered and combusted gives rise to the
possibility that stack emissions and air quality impacts might be different.
However, whilst the stack emissions will continue, the impact upon ambient air
quality is improved when the plant burns biomass as compared to coal.
51 The situation is similar to that in Reading Properties Pty Ltd v Auburn Council
(2007) 158 LGERA 116, where consent was granted to development of a
cinema and retail complex, but a condition required further approval from
council for the occupation of individual shops. Shops subsequently became a
prohibited use, but it was held that the council could nevertheless still grant the
approvals required under the condition. The right to seek further approval was
preserved. The approval was not one consequent on making a statutory
application to modify the consent under the EP&A Act.
53 Even with the change to the traffic, the expert evidence of the traffic engineers
does not identify any traffic impact that would deprive the Court of jurisdiction
to grant the modification sought. Nor do the experts identify a merit matter that
would persuade the Court to refuse consent.
54 The only other potentially different environmental impact arising from granting
the modification is the change in greenhouse gas CO2 emissions. The
Applicant relies on the evidence of Dr Cowie.
Council’s submissions
56 This state of satisfaction must be based on a correct understanding of the
development that was approved under the original 1994 DC. In the present
case, there were no stamped plans approved under the original consent.
Instead, the original consent required that the development was to be carried
out “generally in accordance with the Amended Environmental Impact
Statement”. It also contained some specific conditions which further defined
the scope of the development, including condition 16 which required that at
least the majority of the fuel burnt at the power plant was to be coal washery
tailings, and condition 17 which specified that supplemental fuel could only be
obtained from the Warkworth Mine.
60 The absence of approved plans under the original consent means that the
Court cannot, as it usually would, compare two sets of plans to quickly
ascertain the differences between the two proposals, but this does not remove
or make uncertain any finding under s 4.56(1).
61 Beyond purpose, the Court can compare the two proposals by comparing the
reasonably well-defined characteristics of the original proposal as set out in the
original EIS against the final set of characteristics which the proposal will have
if the modification is granted. Characteristics which can be compared without
the benefit of plans include the type of fuel which will be burned, how the fuel
will be transported to the Site, how fuel will be handled on the Site, whether the
fuel will be processed on the Site and the addition or deletion of pieces of
infrastructure such as the slurry pipelines and thickeners. The Respondent’s
Development Comparison Schedule itemises these changes.
62 The expression “substantially the same” has been held to mean “essentially or
materially having the same essence”: Vacik Pty Ltd v Penrith City Council
[1992] NSWLEC 8 at 4 (Vacik).
64 It follows that in the present case, it is relevant for the Court to not only
compare the purpose of the development, or the physical differences between
the original and modified proposals, but also the context in which the original
consent was granted and the different environmental impacts of each proposal.
65 It was an essential characteristic of the power plant the subject of the original
consent that it involved the burning of coal tailings as fuel. This aspect was
given prominence in the environmental assessment documents lodged with the
original development application. For example, the second paragraph of the
Executive Summary of the Amended EIS states:
The Redbank Project would burn coal washery tailing supplied by the
Warkworth and Lemington Mines as fuel in a pair of fluidised bed combustion
boilers. The Redbank Project would provide an alternative means of
permanent tailing disposal. Electricity generated by the Project would be sold
under long-term contract to Shortland Electricity.
It is notable that in this description, the objective of providing an “alternative
means of permanent tailing disposal” is mentioned before the objective of
generating electricity. It is also notable that the proposal is described
throughout as a “Project” rather than as a power station. This is consistent with
the proposal being an integrated set of activities directed both at disposing of
coal washery tailings and generating electricity, rather than as a power station
per se.
67 Section 5.0 of the EIS addresses “alternatives to the proposed project”. All of
the alternatives discussed in this section are alternative methods of tailing
disposal, rather than alternative methods of electricity generation. This shows
that the main driver of the proposal was tailings disposal rather than electricity
generation.
69 Neither of these pipelines were ever built because when the fuel source
changed from tailings in slurry form to beneficiated dry tailings (BDT), pipelines
ceased to be a feasible method of transport. The proposal to use tailings from
the Lemington Mine was also deleted as part of the 1997 Modification.
Nevertheless, the pipelines formed part of the original proposal for the
purposes of s 4.56(1).
70 The deletion of the slurry pipelines means that the modified proposal as a
whole will not be located on the same “land” as the original proposal. The
original consent was granted for Part of Lots 1-3 DP 247820 and Lots 4-5 DP
247820 and “adjacent land”. The general size and shape of the approved
power plant site in the original consent roughly corresponds to the land on
which the plant has actually been constructed and on which it is proposed to
operate under the 1997 Modification. However, approval of the slurry pipelines
on “adjacent land” extended the development site for the original consent many
kilometres beyond the boundaries of the current site.
71 The location of the Site relative to its fuel sources is also an important
characteristic. The site of the original proposal was obviously chosen primarily
based on proximity to the Warkworth Mine, both as a source of fuel and the
location to which the ash waste would be returned. Three possible sites were
considered in the EIS, but all of them adjoined the boundary of the Warkworth
Mine as it then was. While other factors were considered in choosing between
these three sites, no sites were considered which were not adjacent to this
boundary. By contrast, no evidence has been adduced that the Site offers any
advantage over any other site in the north coast forestry region for access to
forest residues. Fuel for the modified proposal is to be sourced from a radius of
up to 300 km, and the destination of waste ash has not been specified.
72 In addition to the slurry pipelines, the original proposal involved thickening and
dewatering units, which were designed to concentrate the coal washery slurry
to at least 65-70% solids by weight, to make it rich enough to sustain
combustion. These pieces of equipment were in fact never installed, due to the
substitution of BDT fuel approved by the 1997 Modification. The removal of
these processes from the Site is shown by a dotted line around them in the
Process Flow Schematic at p 11 of the Statement of Roy Alper and Thor
Hibbler (Exhibit 1). The absence of these important pieces of equipment forms
another point of difference between the original and the modified development.
73 Since the primary fuel for the original proposal came by pipeline from adjacent
mining operations, the original proposal was predicted to have negligible traffic
impacts. The only regular daily trips likely to be generated by the original
proposal were employee vehicles, tradespeople and salespeople, and the
occasional delivery of spare parts. This was predicted to result in 60-85
movements per day, most of them light vehicles. Periodic deliveries of
supplemental fuel were predicted to add another 100 return truck trips per day
during delivery periods, but only for about 40 days each year. By contrast, all of
the biomass proposed to be burnt in the modified power station will need to be
delivered by truck. This is predicted to generate up to 148 truck movements per
day, six days per week, in addition to employee vehicles.
77 The plan titled “Biomass Conversion Project Key Plan” shows that a new two-
lane roadway is to be built around the southern edge of Boiler 2. The roadway
will lead to four new loading bays positioned under two truck unloaders, each
of which will be able to unload two trucks at a time. From there, two new
telestackers will transfer biomass into a stockpile. The easternmost unloader
also enables biomass to be transferred from the trucks into two new moving
floor bulk loader bins, from where it may be transferred via the existing BDT
Conveyor to the six supplementary fuel silos, which feed directly into the
boilers.
78 Even though the modified proposal will involve a fuel stockpile in the same
location as the original proposal and will use some of the same fuel silos, an
essential difference between the two proposals is that, whereas previously this
stockpile and these silos were only used for supplementary fuel, in the modified
proposal they will be used for the plant’s only fuel while the plant is burning
100% biomass.
80 The relevant test is that set by the statutory language: Arrage at [18]. Judicial
interpretations of the statutory language of “substantially the same” have
approved of the formula adopted in Vacik at 4 of “essentially or materially or
having the same essence”: see North Sydney Council v Michael Standley &
Associates Pty Ltd (1998) 43 NSWLR 468 at 475 and 481-482. The term
“modify” in this context has been held to mean “to alter without radical
transformation”: Ilenace at 421.
In approaching the s 102 exercise one should not fall into the trap of saying
that the development was for a certain use – extractive industry – and, as
amended, it will be for precisely the same use and accordingly is substantially
the same development. What is important is that a development, particularly
extractive industry, must be assumed to include the way in which the
development is to be carried out. Otherwise, there may be little purpose in s
102.
82 In its approach to the relevant task the Applicant, in its submissions, sought to
identify the 1994 DC as: “an electricity generating work – a power station - in
which super-heated steam is produced from combusting calorific fuels to turn a
turbine that generates electricity fed into the Singleton to Kurri 132 kVA
transmission line to power at least 100,000 homes.” This identification is drawn
from both the description of the development in the Orders of the Court and the
conditions of consent together with one of the stated objectives of the project in
the EIS as recited at [31] above. For the reasons that follow, I consider that the
identification of the 1994 DC in terms that limits it, or prioritises it, to the
generation of power fails to properly identify the material and essential
elements of the 1994 DC.
83 As has been observed at [33] above, the 1994 DC did not approve plans for
the actual form or layout of the plant. Accordingly, the extent of changes
proposed to the existing form or layout of the existing plant to accommodate
the modification – small or great – are of little assistance in determining
whether the development the subject of the 1994 DC is substantially the same
as the modification, as the form and layout of the plant formed no part of the
1994 DC development.
84 The 1994 DC did identify by words, and to a lesser degree by schematics, the
intent or purpose of the development proposed. Those words are contained in
the EIS, and the 1994 DC required the development to be carried out generally
in accordance with that EIS. It is generally permissible to have regard to an EIS
for the purposes of identifying the scope and nature of the proposed
development: HIRE at [57], [64], [80] and [311].
85 This must be particularly so when the only source for the ascertainment of the
particular features of the development to which the consent refers is the EIS
rather than, as is more often the case, a set of plans.
88 Upon a consideration of the EIS and the other documentary material expressly
incorporated into the 1994 DC, contrary to what was contended by the
Applicant, the 1994 DC did not have a single purpose that was material or
essential, being the generation of power, but rather two co-dependent
interrelated purposes: being the disposal of coal tailings; and the consequential
generation of electricity from the process of the disposal of the coal tailings.
(1) The location of the Redbank power plant in proximity to the two
nominated mine sources of coal tailings;
(2) The delivery of tailings by slurry pipe from mines on an on-demand
basis rather than stockpiled for later use;
(3) The return of ash to the mine for use in the rehabilitation of the mine
site;
(4) The return of excess water to mine sites;
(5) The sourcing of emergency fuel from nominated mines; and
(6) Stockpiling only of start-up fuel.
Of note is that from the beginning to the end of the process the only material
brought onto or that left the Site (apart from products that could not be reused
and were therefore waste emissions) that were not received from or returned to
the nominated mines was the electricity generated by the burning of the coal
tailings. The process was designed to be largely a closed system in
conjunction with the mines apart from the electricity and waste products.
91 The conditions that were imposed upon the 1994 DC operated to reinforce this
concept by: linking the fuel source to the nominated mine sites (conditions 16
and 17); and requiring the majority of the fuel to comprise coal washery tailings
(condition 16).
92 The conditions, contrary to the submissions of the Applicant, did not envisage
or allow: the importation of fuel from other mines; the change in fuel or waste
transport to permit significant truck movements; or a change to ROM coal over
coal tailings as a fuel, merely because the reference in conditions 16, 17 and
33 to a further or separate approval of the Council. It was submitted that those
conditions operated to approve a form of development pursuant to Pt 4 of the
EP&A Act such that no further development consent was required to undertake
such development, rather a permission (being something less than
development consent) was required in order to undertake the further
development anticipated by the conditions. The Applicant cited the decision of
Reading as authority in support of this submission. I do not accept this
submission.
93 The terms of the conditions do not approve something for which development
consent was not sought. At the relevant time the 1994 DC was granted
conditions could be imposed pursuant to s 91 of the EP&A Act. In particular, s
91(3)(a) permitted conditions that related to any matter referred to in s 90(1) of
relevance to the development the subject of the consent. It is apparent from the
terms of the EIS that it was no part of the development proposed that fuel was
to be sourced from mines other than those nominated or that trucks were to be
used to transport fuel or waste except in emergencies or that ROM coal was to
be used other than as supplementary fuel. The reference in the conditions to
the further approval of the Council in that context can only be a confirmation
that the consent is so limited.
94 The reliance upon Reading as authority for the proposition that such words in a
condition do not require the making of a development application is misplaced.
Reading was a case relating to a continuing use arising under s 109B where
consent had been granted subject to a condition that the premises were to be
used for “the storage, distribution and sale of sporting goods only and is not to
be altered for another use without the prior consent of Council”: at [16]. A
number of subsequent applications were made to change the nature of the use
including an application after the relevant LEP was changed to render the use
of the premises for a shop as a prohibited use. As Biscoe J observed at [32]:
96 Accordingly, for the foregoing reasons I also do not accept the submissions of
the Applicant that the 1994 DC inherently envisaged changes of the type
consequential upon the implementation of the Modification Application insofar
as it related to the increase in truck traffic, change in fuel sources or fuel mixes.
Accordingly, it cannot be said that such changes are not consequences of the
Modification Application.
97 Having regard to the totality of the 1994 DC, for the reasons outlined above,
the disposal of coal tailings was an essential component of the development
the subject of the 1994 DC. The Applicant contends that it is impermissible to
“focus” upon a single element of the development in determining whether it is
substantially the same and that the totality of that approved must be compared
to the totality of that modified. That is so, but this exercise cannot be
undertaken in a numeric “tick a box” approach. The significance of a particular
feature or set of features may alone or in combination be so significant that the
alteration is such that an essential or material component of the development is
so altered that it can no longer be said to be substantially the same
development – this determination will be a matter of fact and degree depending
upon the facts and circumstances in each particular case. Such an exercise is
not focussing on a single element, rather it is identifying from the whole an
element which alone has such importance it is capable of altering the
development to such a degree that it falls outside the jurisdictional limit in s
4.56.
98 In this case, for the reasons I have found, the disposal of coal tailings was a
fundamental element of the proposal, which if altered to a material degree
would have the potential to alter an essential or material component of the
development the subject of the 1994 DC. The replacement of the fuel source of
coal tailings with biomass would be such a change. However, that is not what
the Modification Application proposes in this case. The fundamental question
here is whether the change proposed is so material that the modified
development as proposed in the Modification Application is no longer
substantially the same development.
99 The Applicant has taken great care to ensure that the Modification Application
does not preclude the burning of coal tailings as fuel even though it
acknowledges that at the present time it is not commercially viable for it to do
so. So, it is true to say, as the Applicant does, that it is not seeking to replace
coal tailing with biomass, but rather to provide for an additional fuel source,
namely biomass. The Redbank power station will remain functionally capable
of burning coal tailings. But is that enough to maintain the Modification
Application as substantially the same as the 1994 DC? The answer must be
no.
100 The 1994 DC had as an essential requirement the burning of coal tailings. The
Modification Application leaves open to the operator an absolute discretion –
as provided for in the proposed condition 16 – as to whether to burn biomass
or coal tailings as fuel. As a consequence, the relationship between the coal
mines and the disposal of coal tailings which was a fundamental aspect of the
1994 DC may be abandoned at the decision of the operator. The inherent
discretion renders the continued capacity to burn coal tailings as fuel as an
illusory maintenance of the essence of the 1994 DC. There being no longer an
obligation to carry out the development to achieve the purpose for which it was
developed there is no continual manifestation of the essence of the
development. Accordingly, notwithstanding the retention of the physical
capacity to burn coal tailings as fuel, the Modification Application in the form
proposed alters the development in such a fundamental manner that it loses
the essential and material relationship to the disposal of coal tailings and the
associated mine operations that it cannot be characterised as being
substantially the same development as the 1994 DC.