SAFETY AND QUALITY MONITORING IN THE PETROLEUM SUPPLY CHAIN

MOST of our readers, like most energy consumers, primarily associate the Energy Regulation Board (ERB) with fuel price or electricity tariff changes. However, there is a lot more that the ERB does to ensure continuous provision of safe and quality energy products and services, as stipulated in the Section 2 of the Energy Regulation Act, Cap 436 of the Laws of Zambia (Functions of the ERB).

This article will focus on how the ERB ensures that standards in the Petroleum subsector are followed by industry players. One of the key standards for the Petroleum Industry is ZS 385 Part 3, which governs the construction of modern service stations.

Before issuing a licence to an operator the ERB ensures the applicant meets minimum standards regarding the location (approvals from the respective local authority, the Zambia Environmental Management Agency, and the Roads Development Agency or Zambia Railways, in some cases).

The ERB then issues a construction permit only after being satisfied with technical information submitted including approvals and building designs. After issuance of the permit the ERB monitors the construction process, including inspecting the site before underground storage tanks are buried.

In addition, the tanks are inspected to ensure they meet specific standards. The ERB also inspects for compliance to standards for pumps, electrical installations and the construction designs such as the drainages, the filler boxes, the leak detection facilities, and the colour coding for manholes.

Safety, fire and environmental aspects of interest include warning signs (engine switch off, “no smoking,”’ pump island crash barriers, forecourt surface and drainage, oil interceptor, emergency shut off switch, electrical wiring, earth connection points for tankers, canopy clearance height, vent pipes, fire extinguishers and sand buckets or boxes.

Suffice to say ERB technical inspectors make at least three inspections to each site from construction works to commencement of operations. Basic functions for some of these requirements are indicated below:

Warning signs - guard against practices that might be an ignition source which could result in a major incident. Running engines have a spark risk; lit cigarette have fire and cell phones are also suspected fire risk.

The Crash Barrier prevents motorists from crashing into the dispenser and is also intended to protect the dispenser from damage in the event that a motorist rams into the facility.

The Emergency Switch is a key safety feature which cuts power supply and disables the fuel dispensers in the event of a fire.

The Drainage Oil Interceptor separates fuel and water so that only water is allowed to flow to the storm drain thereby preventing environmental contamination.

Electrical Wiring – This is important for purposes of preventing electrocution and possible sparking.

Earth Connection points for tankers – this is necessary to guard against static electricity when tankers are offloading which could be a fire hazard.

The Canopy - primarily provides shelter to protect filling station equipment and attendants.

Vent Pipes help to regulate vapour in the fuel storage tanks. Excessive pressure is dangerous as fuel can self-ignite even without a fire source, particularly petrol.

Sand buckets/boxes - the sand in buckets at filling stations is used to absorb any spillage

For operational service/filling stations, the safety, fire and environmental areas covered above are checked by ERB inspectors at least once every quarter of the year.

During these inspections all filling stations should have and display the following statutory requirement documentation:

• Zambia Weights and Measures Agency (ZWMA) certification (for fuel dispensers/ pumps). This certification is necessary as ZWMA is the regulator for dispensed quantity measures;

• Fire certificates; this provides for adequate fire protection cover in line with the local authority;

• Trading licence - ensures that the entity is duly licensed to trade; and Storage of petroleum licence this is a requirement by the local authority.

The last three documents are issued by the local authority in the area where the facility is operating. Of course, each site should also have a valid ERB licence. It is one thing to have safety equipment in place but quite another to have service station staff follow the safety regulations. Therefore, fuel attendants are expected to wear complete and correct safety attire and they should demonstrate (through random interviews and actual display understanding of safety awareness such as being able to operate a fire extinguisher and the emergency switch) understanding of such rules and regulations.

In terms of quality monitoring, each site should have the following:

• Hydrometers (for testing presence of water),

• Thermometers (for measuring the temperature of the product) and

• Records of offloading and daily quality checks for at least three months.

It should be mentioned that the ERB also collects samples from each of the tanks at every service station, which are taken for laboratory analysis. This is costly but necessary activity is important to ensure that the fuel sold across the country is of acceptable standards.

For fuel storage depots, the measures are more stringent and ERB inspectors undertake more regular visits to these sites to ensure compliance.

In addition to the safety, environmental and quality requirements, there are ancillary ser- vices expected at service stations. Ancillary services required to be provided by each service station include free compressed air and toilet (clean and well labelled) facilities for customers. The ancillary services are now also considered in the grading of service stations. The other customer service parameters used to grade a service station are:

1. Availability of operational alternative power source

2. Duration taken to service one customer

3. Display of ERB approved fuel prices

4. Assistance provided to customers regarding air pressure facilities (tyre inflator)

5. Giving directions to customers to the correct pumps

6. Courtesy shown to customers (greetings)

7. Confirmation of the type and amount required by the customer

8. Notifying the customer (driver of the car) about the commencement of refuelling

9. Offer of additional services such as windscreen cleaning and engine oil check

10. Having cashless payment options such as bank (credit or debit) cards or oil marketing company specific cards.

11. Asking the customer if they want a receipt for the purchase instead of waiting for the customer to ask.

12. Offering a farewell message and warm smile to the customer.

Furthermore, Aesthetics and Public Health scoring criteria cover the general state of the buildings including the canopy; state of housekeeping (cleanliness) of the forecourt and surroundings.

It is against these set criteria that filling stations are scored. In the past the inspection findings would only be communicated to the licenced entities and their dealers. However, after due consideration and review of the process, the ERB started making the inspection results public. The scored grade is now displayed on a weather proof sticker placed at a conspicuous spot at every filling station.

Through this grading system, the public, especially motorists, are informed about the state of the filling stations so that they can make informed choices regarding where to purchase fuel from. Apart from informing consumers of the state of the filing station, the grading system also acts as a motivator to the licensees to improve the state of infrastructure at their respective sites. Details to help consumers with the interpretation of different grades scored by service stations are presented in the table below.