Port Nelson Annual Report 2012 (pdf)

notes to the accounts
notes
note 21: noise mitigation provision 2012 2011
$000 $000
Opening Balance 608 700
Additional Provisions Made in the Period 85 -
Decrease to Existing Provisions - (55)
Provision Used (90) (37)
Total NOISE MITIGATION PROVISION 603 608
Comprising:
Current 54 97
Non-current 549 511
Total NOISE MITIGATION PROVISION 603 608
2012
Port Nelson reviews its Noise Liability provision each year as the mitigation work is undertaken. The year end provision balance of
$603,000 is for Stages One, Two and now also includes Stage Three. Under the Noise Variation which is now operative, Port Nelson
has an obligation to Stage Three property owners to provide technical advice, where requested, and to consider providing financial
assistance for mitigation works (up to 50 percent of costs). The decision on whether to provide financial assistance will be based on a
recommendation made to Port Nelson by the Port Noise Liaison Committee on a case by case basis. Port Nelson has now quantified
the costs of this obligation as at 30 June 2012.
The Noise Variation within the Nelson City Resource Management Plan was notified with effect on 14 July 2008 and was adopted by the
Nelson City Council on the 23rd February 2012. Port Nelson has an obligation to assist with noise mitigation works for noise affected
properties adjacent to the Port. These properties are separated into three stages based on the level of Port Noise received. In Stage
One (these are houses that are exposed to night time Ldn from port generated noise of 65 dBa or more) Port Nelson is required to make
offers to either fully fund noise mitigation work or to purchase the eleven Stage One properties and at 30 June 2012 nine of these eleven
properties have had this obligation met. For the properties in the 55 to 59.9 dBa and 60 to 64.9 dBa areas (Stage Two), offers have been
made by Port Nelson to owners in these areas to cover 50 percent of the noise mitigation cost. There is no offer for the purchase of these
properties required. For properties in Stage Two Port Nelson is required to approach all owners with this offer. For properties in the 55
to 59.9 dBa area (Stage Three) the owners are required to approach Port Nelson and seek approval for this. Offers will include 50 percent
of the costs of building work, any professional fees, building consents, preparation of drawings and project management.
2011
Port Nelson has made a Noise Liability provision of $608,000. The year end provision balance is for Stages One and Two. Stage Three
has been recognised as a contingent liability (see note 22). Port Nelson has an obligation to Stage Three property owners to provide
technical advice, where requested, and to consider providing financial assistance for mitigation works (50 percent of costs). The
decision on whether to provide financial assistance will be based on a recommendation made to Port Nelson by the Port Noise Liaison
Committee. Port Nelson cannot currently quantify the cost of this obligation at 30 June 2011.
note 22: contingent assets and liabilities
2012
The Calwell Slipway basin contains contaminated seabed sediments. Port Nelson has title to this area of seabed. While the marine
engineering and vessel coating industries in and around the slipway area are now controlled the historical contamination still persists
in the sediments. The on-going sedimentation of the basin now requires dredging to allow for the on-going operation of the slipway.
Port Nelson, together with the Nelson City Council, has obtained funding from the Ministry for the Environment (MFE) to undertake
Remediation Planning (Phase Three) work to establish a preferred approach for remediation of the contaminated sediments. It is
hoped that once Phase Three is successfully completed funding from MFE for Site Remediation (Phase Four) will also be obtained.
Phase Three is scheduled to be completed in the 2013 financial year and at that stage Port Nelson hopes to able to quantify any liability
associated with the eventual remediation works.
2011
Port Nelson continues to have an obligation to Stage 3 property owners to provide technical advice, where requested, and to consider
providing financial assistance for mitigation works (50 percent of costs). The decision on whether to provide financial assistance will
be based on a recommendation made to Port Nelson by the Port Noise Liaison Committee. Port Nelson cannot currently quantify the
cost of this obligation at 30 June 2011. The Noise Variation within the Nelson City Resource Management Plan was notified with effect
on 14 July 2008. Port Nelson is required to make offers to either fully fund noise mitigation work or to purchase 11 closest properties
in the residential zone adjacent to the port. (These are houses that are exposed to night time Ldn from port generated noise of 65 dBa
or more). For the properties in the 55 to 59.9 dBa and 60 to 64.9 dBa areas, offers have been made by Port Nelson to owners in these
areas to cover 50 percent of the noise mitigation cost. There is no offer for the purchase of these properties required. For properties
in the 60 to 64.9 dBa area Port Nelson is required to approach all owners with this offer. For properties in the 55 to 59.9 dBa area the
owners are required to approach Port Nelson and seek approval for this. Offers will include 50 percent of the costs of building work,
any professional fees, building consents, preparation of drawings and project management.
The contingent asset associated with Unimar in 2010 and the vessel the Marsol Pride was not realised.
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