Oil contractor fined for its part in poisoning Raetihi water supply

Oil industry contractor Petroleum Services will have to pay $54,500 for its part in poisoning the water supply of Raetihi, leaving the central North Island town without water for three weeks.

In September 2013 diesel spilled from a tank on Turoa skifield, entering a stormwater drain feeding the Makotuku River catchment, from which Raetihi drew its water.

For five days, residents could have been drinking diesel-tainted water because no-one notified authorities. When the alarm was finally raised, Raetihi's drinking water supply was cut off for 21 days.

Residents reported a "stinky, stenching" smell and one said the water tasted like "diesel".

A daycare centre and some businesses had to close.

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Daily trips to the water tanker, showering at emergency communal facilities and filling toilets by jerry cans became the norm for the town's 1000 residents.

Petroleum Services (2001) Limited was on Tuesday sentenced in the Taihape District Court for health and safety failings.

It was fined $34,500 and ordered to pay costs to health and safety enforcer WorkSafe of $20,000.

A container at Turoa skifield on Mt Ruapehu failed, leaking more than 19,000 litres of diesel into Makotuku Stream.

Skifield operator Ruapehu Alpine Lifts was fined $300,000 for its part in the spill and the contamination of the water supply, after pleading guilty to charges brought by Horizons Regional Council and WorkSafe.

Petroleum Services provides specialist services which include above ground stationary container fuel storage.

Its Turoa setup failed to comply with a number of approved industry standards, WorkSafe said.

On September 26, 2013 a booster pump continued to operate after the transfer of 3000 litres of diesel from the container storage system to a chair lift site was completed.

"While some parts of the system shut down, the booster pump kept operating. The sustained pressure resulted in a hose becoming detached. The entire contents of the tank were then pumped into the environment," Worksafe said.

Petroleum Services failed to meet the standards or regulations for an above ground stationary container system with pressurised pipe work and to test the system, an essential requirement, following its modification.

The spill put ski-field customers and employees at risk, Worksafe said.

"Also of concern to WorkSafe is the fact that this incident occurred in a National Park and that the area affected is of great cultural significance to local iwi."

Ruapehu District Council chief executive, Peter Till, said some sort of penalty for Petroleum Services was appropriate.

"I think $54,500 is appropriate. RAL was obviously fined more but maintenance was not carried out as it should have been carried out."

Not all feel the same way however, as chairperson of Raetihi Ratepayers and Residents Association, John Chapman, personally thinks Petroleum Services had little responsibility when it came to the diesel tank.

"They didn't do anything in my view to warrant a fine. $54,500 is unfair, for they shouldn't have been prosecuted in the first place.

"From my reading and understanding they had little responsibility."