Mr Alberto Romano
51 The first viva voce witness for CSBP was Mr Alberto Romano, a Production Manager (Ammonia/Ammonium Nitrate) of CSBP (since 2006). Mr Romano has been employed by CSBP for about 16 years. Previously, he was employed as a Technical Superintendant (Fertiliser Production) for about five and a half years, a Process Chemist/Team Leader for about three years and as an Analytical Chemist in the central laboratory for about three years at the Kwinana Plant.
52 He has a number of degrees in Science and, as Production Manager (Ammonia/Ammonium Nitrate), is responsible for ammonia and ammonium nitrate production including the management of the operational areas of the Kwinana Plant comprising of:
(a) Ammonia manufacture (high pressure gas plant);
(b) Ammonia storage (cryogenic refrigerated atmospheric pressure storage) and distribution;
(c) Nitric Acid (NA) production (there are two NA plants which are gas/liquid plants);
(d) Ammonium Nitrate (AN) solution manufacture/storage/distribution; and
(e) AN Prill manufacture which involves handling of solids.
53 He is responsible for safety and compliance aspects of the operational areas mentioned above, process engineering matters, personnel matters, production commitments including process quality control, maintenance, reliability, change management, general and capital expenditure, cost control and budgeting of the Ammonia and AN train at the Kwinana Plant and ensuring that the running of the processes satisfies the requirements of 'Major Hazard Facility, Dangerous Goods and Environmental licences'.
54 Although Mr Romano's evidence was directed to the ammonia and AN production area and Process Technicians working in them, he did give a brief overview of the Kwinana Plant. He discussed the different categories and levels of Process Technicians and the training and competencies required. He also discussed the Systems Manuals, standard operating procedures (SOPs) and the piping and instrument diagrams (P and IDs) that Process Technicians must be familiar with. He gave evidence in the roles of Lead and Field Operators in the Ammonia Plant with specific references to the stages of the ammonia production process and in the NA/AN Plants with references to stages of the AN production process. Similar evidence was also given concerning the AN Prill Plant.
55 Mr Romano explained the main products manufactured by CSBP at the Kwinana Plant, excluding intermediary products, as being ammonia, AN, sodium cyanide, carbon dioxide (CO2), fertilisers and flurosilicic acid. He confirmed that the Kwinana Plant was divided into the Ammonia and AN production area, Sodium Cyanide production area, Fertiliser production area and Receivables and Despatch (the area for handling the receipt of ingredients and dispatch of products for stock). Within the Ammonia and AN production area there is an Ammonia Plant which produced ammonia, a Demineralised Water Plant, a Plant and Instrument Air Facility, the CO2 Operations of CSBP, Ammonia Storage, Liquefaction and Distribution area, two NA Plants being the intermediate step in production between ammonia and AN solution (ANSOL), two ANSOL Plants producing ANSOL and an AN Prill Plant where the ANSOL is converted into solid granules. He produced various diagrams illustrating the configuration of the Ammonia and AN production area amongst others.
56 Evidence was given by Mr Romano in relation to the central control room of the 'Ammonia and AN production area' (the control room) and a similar room in the AN Prill Plant.
57 Mr Romano explained that the workforce of the Ammonia and AN production area included:
(a) the management, supervision and various support personnel whose role is to oversee and coordinate the running of the Ammonia and AN production area;
(b) engineers whose role is to provide technical support to improve process plant efficiencies and cost optimisation in the production area;
(c) mechanical and electrical instrument maintenance workers whose role is to maintain the safe operation of the Kwinana Plant;
(d) Process Technicians; and
(e) within the ammonia loading facility, there are also workers involved in despatch (product despatch operators).
58 As at 24 November 2010 there were 65 Process Technicians in the ammonia and AN production area. Mr Romano described the basic role of the Process Technician as being to:
achieve set targets in the chemical production process by contributing to and performing the operation and maintenance of plant and equipment within specified guidelines within the chemical production process.
59 As discussed by other witnesses, the Kwinana Plant is operated using a computer control system referred to as a distributive control system or 'DCS'. It is monitored and controlled through graphic user interfaces (computer control panels) in several different control rooms around the Kwinana Plant.
60 Lead Operators control the operation of the Kwinana Plant from the control rooms, monitoring temperatures, flows and pressures through the graphic user interfaces and making adjustments as required.
61 Field Operators, on the other hand, mostly work in the field inspecting plants, monitoring temperatures, flows and pressures, taking samples and performing any field adjustments or isolation work that is required.
62 Mr Romano said that almost all Lead Operators are qualified to work as Field Operators from time to time and the majority of Field Operators are being trained in the Lead Operator functions. In addition, there is a trainee level Process Technician classification.
63 There are 'A', 'B' and 'C' Process Technicians, these being common terms that are used to classify the level of training and competency that Process Technicians have. They are covered by the Enterprise Agreement which provides for eight different classifications of Process Technicians. The eight different levels recognise those Process Technicians who hold multiple 'A', 'B' and 'C' levels across different plants. There are multiple combinations of these competencies set out in the Enterprise Agreement. Mr Romano explained the different levels of training and competencies.
64 'A' Process Technicians are entry level Process Technicians that typically commence training on the 'A' module training. They are required to perform that module before moving onto the 'B' and 'C' modules. There are plant specific training materials that teach Process Technicians the processes and equipments in the Kwinana Plant. An 'A' Process Technician works in the field and must have the support of at least a 'B' level operator in order to perform his or her work. Completing the 'A' level training module in the Ammonia BU normally takes a few months although that can be a formality for new workers who have prior experience. Examples of tasks taught at the 'A' level are how valves work, when to open and close them, the operation and function of actuated (automated) valves, environmental training, products and customers, general workplace procedures, location of major buildings and equipment related to the relevant plant, location of safety equipment and housekeeping.
65 'B' Process Technicians are Field Operators who take direction from 'C' Process Technicians, the Lead Operators. Field Operators typically do not do anything in the field without a Lead Operator at least being aware of the action. Typically it takes some six months for a Process Technician to complete 'B' class training although it can vary depending on the Process Technician's abilities and training opportunities provided to them. The 'B' Process Technicians complete training involving an introduction to P and IDs, identification and location of all major items in the relevant plant and provided with a basic explanation of the chemical processing that takes place at each stage of the process. 'B' Process Technicians should have an understanding of the process flow diagrams for each section of the relevant plant, recognise all valves and their location in the field, be able to prepare sections of the relevant plant for maintenance including isolation, purging and draining as required according to standard procedures, be able to identify 'other specification' operation of the plant from field observations, be able to investigate causes of 'problems' in the field and detail the necessary actions to take in response. 'B' Process Technicians or Field Operators are also taught the operation of pipes and valves at each stage of the process, performing routine checks and operations, routine inspections and sampling, taking directions from the Lead Operator in relation to response to abnormal conditions and gas testing.
66 'C' Process Technicians are Lead Operators. In Mr Romano's estimate, it takes around 12 to 18 months to finish the 'C' training module depending on the Process Technician's abilities and training opportunities provided. On completion of the 'C' training module, Process Technicians should, amongst other things, have a detailed knowledge and understanding of P and IDs, chemical processing that takes place at each stage of the process including flows, temperatures and pressures of the process, online analysers and what they measure and why, the sequence of plant start-ups and plant shut-downs and operation of the graphic user interface. The graphic user interface provides Lead Operators with the ability to manipulate process variables in the chemical process at their fingertips, adjust automatic controls on the panel, identify and locate all major items of equipment in the relevant plant within the graphic user interface, identify 'out of specification' operation of the Kwinana Plant, investigate the cause of the 'out of specification' and detail the necessary actions to take in response. Lead Operators also perform routine checks and operations within the control room including shift handover and notations required to be made in the shift log, respond to abnormal conditions and alarms, direct Field Operators as required and issue authority and 'permitting' to allow maintenance to take place at the relevant plant.
67 Mr Romano stressed that it was important for a Lead Operator to understand the chemical processes involved in the Kwinana Plant and its operational areas because the success of the operation is dependent on them responding to abnormalities appropriately and efficiently. It is only possible for this to occur if they have a sound understanding of the process.
68 The particular competencies required by Process Technicians are detailed in various training modules for each plant area. An extensive number of training module bundles were produced by Mr Romano for both introductory field and lead competencies in four different areas, namely, Ammonia Liquefaction, Storage and import-export area, Ammonia Plants, NA/AN Plants and AN Prill Plant.
69 In addition to the training modules, the System Manual, SOPs and P and IDs are also widely used in training and for ongoing familiarity of the various processes. Those documents were also produced and detailed evidence was given.
70 Self-paced and classroom style training packages, involving written and practical assessments, are also used by CSBP to assist its Process Technicians. Anyone with a higher level than the individual concerned can assess a Process Technician. Practical assessments are recorded, however, the detail of the assessment is not necessarily documented. Those assessments involve observation in the field and performance of procedures in front of an assessor. On completion of the training module, the individual concerned signs a 'Learning Agreement' to confirm that he or she is competent at that level. The 'Learning Agreement' is then countersigned by Mr Romano or a delegate and is forwarded to 'payroll'.
71 In addition to the training discussed above, all Process Technicians are required to complete ongoing generic safety training including training in site and area inductions, safety rules and first aid.
72 As at the date of commencement of exchange between the parties, not including 'A' level operators, there were 11 persons with Lead Operator competencies, 21 with 'front-end' Field Operator competency and 22 with 'back-end' Field Operator competency in the Ammonia Plant. In the Ammonia Storage, Liquefaction and Distribution area there were 15 persons with Lead Operator competency and 28 persons with Field Operator competency. In the NA Plants, there were 15 persons with Lead Operator competency and 22 persons with Field Operator competency. In the AN Prill Plant, there were 24 persons with Lead Operator competency and 29 persons with Field Operator competency.
73 In the Ammonia Plant there are two sub-categories of Field Operators; front-end and back-end Field Operators. Front-end Field Operators perform work in the desulphurisation process, primary reformer, secondary reformer, shift converters (for carbon monoxide conversion), CO2 and methanator. Back-end Field Operators perform work in the syngas compressor and converter (which involves the air compressor and the cooling tower) and in product storage and refrigeration.
74 Mr Romano stated that the basic objective of CSBP's training procedure is to continually train Process Technicians into areas of higher competency. However, not everybody wishes to take advantage of that opportunity.
75 It is common ground that there are several boilers and steam turbines at the Kwinana Plant. Mr Romano said that the primary purpose of the steam turbines is to drive compressors in order to maximise the process air and gas required by the various plants as 'feed'. Four of the five steam turbines at the Kwinana Plant are also connected to generators which allows any excess steam generated by various exothermic (heat producing) chemical processes to be utilised by producing electricity rather than being wasted by venting into the atmosphere. It is a requirement from WorkSafe (a State authority) for one person on the plant to have a 'high risk licence', also referred to as a 'ticket', for running a boiler or for operating a turbine. CSBP's practice, however, is to have Process Technicians obtain these 'tickets' as it provides CSBP with more flexibility. Normally Process Technicians obtain their 'tickets' at the Field Operator stage as it is more convenient to release these employees from a continuous shift roster and during this earlier stage in their training, for example, they may not be occupying a manned position. Mr Romano gave evidence that as at 2 December 2010, out of the 65 Process Technicians in the Ammonia BU approximately 48 held 'boiler tickets' and 46 held 'turbine tickets'.
76 Again, under cl 15 of the Enterprise Agreement which was in evidence, an annual allowance is paid to Process Technicians in the Ammonia Plant, NA Plants or liquid Sodium Cyanide Plants (LiqSC Plants) who hold and utilise a 'ticket' to operate a boiler and turbine.
77 In contrast there are no boilers or steam turbines in the AN Plants (excluding the NA Plants), Ammonia Storage, Liquefaction and Distribution area, AN Prill Plants, Demineralised Water Plant, Plant and Instrument Air Facility or in the CO2 Operations.
78 Mr Romano described the Ammonia Plant, manufacturing process and uses of ammonia. The Ammonia Plant was commissioned in 2000 and was originally built as a 650 tonnes per day plant. Ammonia is manufactured for use as a building block for making NA, AN, sodium cyanide and compound fertiliser. More than 100% of the ammonia manufactured at the plant is required to meet the production requirements of CSBP's NA, AN, sodium cyanide and compound fertiliser facilities. Therefore, some of the ammonia is imported. In addition to ammonia used on-site, it is also sold in smaller quantities to external customers. Raw materials required for the manufacture of ammonia are air, water (including steam) and natural gas (methane). Nitrogen is obtained from the air and hydrogen is obtained from water and methane. They are combined to make ammonia which has the chemical symbol NH3. To get to that point, there are various steps in the plant, namely, the sulphur removal process by which traces of sulphur are removed in the natural gas feed to the Ammonia Plant, primary reforming which is the process of 'reforming' natural gas and steam to form hydrogen and carbon monoxide in the primary reformer and secondary reforming which is when air is added containing nitrogen to various gases in the secondary reformer and further reacting to any oxygen present. Next, is the high temperature, low temperature shift conversion which is the process of converting carbon monoxide to CO2 in the shift converters. Carbon monoxide is removed in a two stage process and CO2 is compressed and transferred off-site for sale and venting into the atmosphere (process known as CO2 absorption). Then there is methanation which is the conversion of traces of carbon monoxide and CO2 left in the process to methane and finally, the culmination of nitrogen and hydrogen under high pressure/temperature to create ammonia which is converted into liquid and cooled to separate ammonia from the remaining gases (ammonia synthesis).
79 Amongst those processes, there are usually at least two Lead Operators and two Field Operators per shift in the Ammonia Plant. The Lead Operators are responsible for the operational duties in the plant. If the Lead Operators do not perform their functions correctly, ammonia cannot be produced safely and reliably. Lead Operators manage the various chemical processes required from both a production process perspective and from an occupational health, safety and environmental perspective. They routinely monitor and review the optimisation of all aspects of the process and monitor, amongst others, main screens which reveal the parameters associated with natural gas which is the density, flow, temperature and pressure, the process temperature and the flow and pressure of the ammonia synthesis loop. Lead Operators typically evaluate variation inputs and outputs of a plant and use this information to optimise production. If there is a problem, such as cooling water temperature being high on a hot day, the Lead Operator will observe the changes and then take steps to improve production, for instance, by increasing feed rates into the plant. It is necessary also for them to respond to alarms and to determine what actions to take, if any. Lead Operators liaise with process engineers as necessary. They are also required to progressively fill out a log of the relevant 'things' that take place during a shift to assist with providing information to the incoming Lead Operator as part of the handover at the end of the shift. Lead Operators are assisted by Field Operators.
80 Field Operators ensure that the ammonia production operational systems are routinely reviewed within the Ammonia Plant itself and perform a variety of field tasks necessary to achieve this. A primary function of the Field Operators in the Ammonia Plant is to monitor a range of measurements including the temperatures, flows and pressures of devices in the field. They also perform any field adjustments or isolation work in the chemical processing plant. They are required to perform a set 'round' of the Ammonia Plant and, in doing so, carry out routine running checks and operations. For example, Field Operators are required to check the demineralised water quality which is measured for conductivity, pH, silica and iron content once per shift. Twelve hourly checks are required on the boiler feed water which is measured for conductivity, pH and phosphate concentration. Field Operators perform important process functions at the Ammonia Plant including reviewing all process variables in the field that relate to the chemical material within the plant, ensuring that adjustments are made to field devices such as valves to allow parameters to be kept within specified limits and other duties including sampling and testing, isolating equipment for maintenance, cleaning and housekeeping. Where more sophisticated laboratory testing is required, it is carried out by laboratory technicians. For example, gas samples are taken by the laboratory technicians (not Field Operators) and taken to the main laboratory and tested in a gas chromatograph.
81 Mr Romano then proceeded to give a detailed explanation of the roles which each of Lead and Field Operators carried out in the Ammonia Plant by specific reference to each stage of the ammonia production process. That evidence involved a much more explicit development of the evidence already given. The evidence was not the subject of criticism or scrutiny. While CFMEU would not accept that the level of skill and expertise required as significant as that emphasised by CSBP, the qualitative distinction was largely a matter of impression. The impression I formed was that the level of skill and expertise, training and responsibility was more in line with that advanced by CSBP than that suggested by CFMEU.
82 Evidence was also given in relation to the NA and AN Plants. The AN production area or the AN production facility manufactures AN primarily for use in the mining industry and in the production of liquid fertilisers. Mr Romano explained that the AN production area consists of two NA Plants, two AN or ANSOL Plants, an AN Prill Plant, an AN Prill storage and despatch and an ANSOL storage and despatch. The key feed stock for the production of NA is ammonia which is supplied from the Ammonia Plant. Mr Romano explained the functions of Lead and Field Operators in the NA and the AN Plants. The two NA Plants and the two AN Plants are controlled from the same central control room as the Ammonia Plant. Typically, there is at least one Lead Operator per shift for each NA and AN Plant and one to two Field Operators per shift shared between the four Plants.
83 Mr Romano explained that the Lead Operators in the NA and AN Plants are responsible, again, for monitoring and optimising the chemical process in the area performing a similar role to Lead Operators in the Ammonia Plant. There is, however, a particular focus on monitoring and managing pH levels of various process fluids which is a crucial perimeter in the safe handling of NA and AN Plants. If AN becomes acidic it can then potentially become sensitised so as to lead to spontaneous decomposition of the AN and a possible explosion. On the other hand, if it becomes alkaline it will result in the release of ammonia gas to the atmosphere constituting a potential environmental and safety issue. The Lead Operator must also review all pH data, whether it has been measured online by analysers or through manual sampling and analysis. The Lead Operator must make the necessary adjustments to maintain the pH of the process within strict control limits. The pH instruments must also be checked with manual sampling and analysis by Field Operators.
84 Mr Romano said that although Lead Operators in the Ammonia Plant and NA Plant spend a relatively small proportion of their time on the 'steam system', Lead Operators in the NA Plant spend more time monitoring and adjusting the operation of the 'steam system' than do Lead Operators in the Ammonia Plant. That is because the production of NA requires more monitoring of the process air compressor so that production can be maximised throughout the whole day. Process air is one of the main feeds to the plant. Oxygen in the air is required when ammonia is burnt to produce nitrogen gas which in turn forms NA. Variations in climatic conditions require the compressor to be adjusted. The temperature, humidity and density of the process air being drawn into the compressor varies throughout the day. This change in density changes the load required to drive the compressor so that the steam turbine will require more or less steam. This affects the steam used. As the amount of process air delivered changes, so too does the amount of required ammonia being mixed with the process air. This changes the overall production rate and overall heat produced as a result of the chemical process which affects the steam generated. The steam generated is used to drive a turbine that runs the process air compressor. The steam usage and steam generation varies throughout the day. Thus the Lead Operator in the NA Plant will need to make small adjustments to compensate for these variations.
85 Lead and Field Operators in the NA Plants have important roles in the cooling water system. Each NA Plant has a separate cooling tower which consists of an open loop system, a chloride free closed loop and an acid cooling and storage system where product acid from the absorber is cooled to approximately 35 degrees Centigrade and pumped to storage. If the cooling water is operated outside of its operating parameters it can result in excessive corrosion, damage to the plant and/or fouling of heat exchanges and may also result in production losses. A Lead Operator is required to monitor and control pressure, temperature, flow and water quality of the system, paying particular attention to pH and conductivity levels. Mr Romano explained the reasons for all these things.
86 Mr Romano also explained the role of Field Operators in substantial detail which, once again, was not specifically the subject of challenge. He also explained their respective roles in each of the various stages of the NA and AN Plants. It appears to me that the functions performed by both Lead and Field Operators in this area requires a reasonably high level of technical expertise and skill. The consequences of failure to exercise technical skill in accordance with the training processes is a consequence extending substantially beyond the merely commercial.
87 In cross-examination Mr Romano confirmed that usually employees responsible at any one time for the two NA Plants were also responsible for the two ANSOL Plants. At each shift there would be one Process Group Leader supervising the Lead Operators and Field Operators for the plant as a 'go to person' who would ensure the efficiencies that need to happen on that particular shift. In the Organisation Charts, the Process Technicians are shown as being below the Process Group Leader. Above the Process Group Leader, there is an Operational Supervisor.
88 It was put to Mr Romano that the plants mainly run on autopilot by the DCS and other systems. To this, Mr Romano said the DCS have individual controllers which can be used to specify a set point in terms of a process parameter required to be targeted. The DCS will adjust items in the field so that the set point which is being measured can be achieved. For example, if the set point was five and in the field it was measuring six, something would 'move' automatically, which is governed by the DCS, so that the six turns into a five. Most of the time the plant runs on autopilot but there is capacity to intervene if the process is upset or some kind of problem arises 'so that the primary purpose' of making chemicals can be maintained.
89 At the end of a shift there is a handover document written for the following incoming shift. It goes from the Process Group Leader to the Operation Line Supervisor containing information such as production rate, storage level of tanks and information in relation to matters which might require attention, for example, something has gone wrong overnight and must be addressed during the day.
90 Mr Romano also explained various equipment and instruments found and used in the plants. He commented that there were numerous pumps in the plants. Mr Romano defined a pump to be a machine or device that increases pressure. He confirmed that the Ammonia Plant and the Demineralised Water Plant had pumps and that 'the others probably do not'. He suspected that all but the Plant Instrument Air Facility and the CO2 Operations would probably have pumps. He considered there to be hundreds of pumps driven pneumatically or by electric motors or steam turbines. The majority are powered by electricity and relatively few are powered by air. There are also several hundred valves in the plants. The valves are operated manually by Field Operators with a relatively small proportion driven electrically from the control room. The vast majority of control valves, a sub-set of valves, are operated pneumatically and a relatively small number operated electrically. There are emergency diesel generators used when there is an electric power failure. They automatically start and initiate through an electric ignition system which starts in the diesel motor. There are cooling towers which have fans run by a motor and a pump that moves water around. There are compressors operated by electrical power and others which use a steam turbine to rotate the compressor. There are two waste heat boilers and an auxiliary boiler located at different stages of the process in the Ammonia Plant. There are cooling fans powered by electric motors. The weak acid system has pumps, as do the cooling towers, which are run by electrical motors and fans run by electrical motors. There are pumps and control valves in the concentrated process condensate system. In the AN Prill Plant there are fans, conveyor belts, both powered by electric motors and pumps and cyclones which are powered by the fans. Forklifts are used intermittently. In the Demineralised Water Plant there are pumps, control valves operated pneumatically, air-blowers powered electrically and compressors, one or two of which are diesel powered for emergency purposes. In the CO2 Operations, there is a compressor with a blower which is electrically powered and valves operated pneumatically.