Service Station Law:

The law relating to service stations can be complex and daunting. The NSW Department of Environment along with the NSW Environmental Protection Authority has issued a guide which instructs owners of service stations about their rights and responsibilities in respect of the businesses they conduct on site.[1] The Guide has been put together with input from various interest groups, including the Institute of Automotive Mechanical Engineers, Motor Vehicle Repair Industry Authority, Service Station Association, Automotive Training Board, Motor Traders Association, Rapid Spill Control, Envirotank, Shell and BP as well as various local Councils.

Operators of service stations will have a series of environmental compliance obligations to discharge. Some of the key environmental concerns include fuel spills, storm-water pollution, soil and ground contamination, vapour recovery and chlorofluorocabron emission. Under section 120 of the Protection of the Environment Operations Act 1997 (NSW), water pollution carries heavy penalties. For a company, the maximum penalty for water pollution is one million dollars, with an additional $125,000.00 per day for each day of continuing breach. For an individual, the penalty is $250,000.00 with an additional $60,000.00 per day.

Under sections 124 through to 126 of the Act, an operator of a service station business has an obligation to maintain the equipment in good working condition so that no dust, gas, odours, smoke, fumes, solid particles or “volatile organic compounds” are emitted into the air. Under section 129, the owner of a business must not permit the emission of any offensive odour from the site. Under section 116 and 142 of the Act, the owner of the business must not permit any leakage of polluting or hazardous substances to affect the land.

Likewise, sections 139 and 140 state that no offensive noises are to be emitted from the site as a result of the use of machinery and the like. The Guide defines the terms “offensive noise” as:

‘Offensive noise’ means that by reason of its level, nature, character, quality or the time at which it is made, or any other circumstance, the noise is harmful or interferes unreasonably with the comfort of people who are outside your premises. [2]

Waste is governed under the provisions of the Waste Avoidance and Resource Recovery Act 2001 (NSW). Some of the objectives of that Act are contained in its section 3, and can be summarized as follows:

• To encourage efficient use of resources;
• Reduce environmental harm;
• Avoid unnecessary resource consumption;
• Minimize use of water;
• Reduce waste generation;
• Encourage recycling; and
• Ensure safe disposal.

Under the Guide, owners and operators of businesses running service stations have further obligations connected to resource efficiency, forecourt design and maintenance, fuel deliveries, emergency spills and underground tanks. Of particular relevance are the Australian Standards established under the following instruments:

• AS 1940–2004: Storage and Handling of Flammable and Combustible Liquids;
• AS 4897-2008: The design, installation and operation of underground petroleum storage systems; and
• AS 4976-2008: The removal and disposal of underground petroleum storage tanks.

The standards are important because they may be relied upon in the event there is any claim of negligence or breach of a duty of care that the operator of a service station may have in respect to his employees, customers or members of the general public. It is important therefore that any individual or company that is contemplating the operation of a service station obtain full and comprehensive legal advice from a service station lawyer, particularly in terms of the compliance issues involved. Before a successful business can be run, the following matters must be addressed:

• Regulatory Issues;
• Environmental Management;
• Storm Water Management;
• Soil and Ground Water Management;
• Waste Water Management;
• Air Quality Management;
• Hazardous Materials and Dangerous Goods Management;
• Hazardous and Solid Waste Management;
• Noise Management; and
• Resource Efficiency.

Other legislative instruments that may be relevant to owners and operators of service stations and which our service station lawyers are able to advice upon, include:

• Protection of the Environment Operations (Clean Air) Regulation 2010;
• Protection of the Environment Operations (General) Regulation 2009;
• Protection of the Environment Operations (Noise Control) Regulation 2008;
• Protection of the Environment Operations (Underground Petroleum Storage Systems) Regulation 2008; and
• Protection of the Environment Operations (Waste) Regulation 2005.

The terms and provisions of these regulatory mechanisms can be drafted in a manner that is difficult for a lay-person to understand – some terms may have a specific meaning at law and an individual who does not have legal expertise may not appreciate the nuanced meaning of each definition.  We are highly experienced in the area of service station law.  Our service station lawyers are highly experienced in working on complicated service station sites and have acted for a broad range of service station operators, including tenants, landlords, commission agents and other operators that enjoy licenses to occupy over service station property.

More information about the rights and liabilities of owners of service stations can be found on our sections “Vapour Recovery” and “UPSS”. Other areas of concern to operators of service stations may include employee safety matters as well as the broader impact of environmental laws that may be relevant to the business. For more information, see our sections on “Employment Contract Advice”, “Carbon Tax and Emission Reporting”, “Contaminated Land Management and Remediation”, “Dangerous Goods”, “Development Applications”, “Environmental Impact Assessment”, “Environmental Risk Assessment”, “Native Species Legislation” and “Species Impact Statement”. 

If you are the owner or operator of a service station and have any concerns relating to the matters outlined above, there might be a number of pertinent legal issues that will need to be contemplated before your rights and liabilities are clearly understood. Our service station lawyers in Sydney have been assisting clients for over a decade and we have the expertise and skills necessary to help business owners and operators in this field.

If you would wish to discuss anything that may arise from the above, you can contact our firm to set a meeting with our service station solicitors by telephone on (02) 9233 4048 or send an email to info@navado.com.

[1] Environmental Action for Service Stations (NSW Department of Environment, October 2008).

[2] Ibid at p 10.

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.