Lanzhou Veolia Water Contamination Case Study

Introduction

The incident of excessive levels of benzene in tap water in certain areas of Lanzhou on
April 11th refers to the incident of benzene in tap water exceed nation– al limit in Lanzhou,
Gansu province on April 11th, 2014 when the benzene level in water sample of dusts and
output water of the water supply company of Lanzhou city—Lanzhou Veolia Bater (Group)
Co., Ltd exceeded limit and triggered the tap water contamination incident.

Oil spill of pipeline of Lanzhou Petrochemical Company, PetroChina years ago was
identified as the source of the contamination. The spill seep into the water sup– ply
network and contaminated the dusts of the water supply company. The water sample test
results indicated that the benzene level in water was up to 118 micrograms per liter; in
dusts up to 170 micro–grams per liter, which were far beyond the national limit of 10
micro–grams per liter.

After the benzene incident had occurred, Lanzhou Municipal Government issued a
special tip that tap water was unfit for drinking within 24 hours after 11:00, 11th and
another domestic water was not affected. Lanzhou citizens began to rush into
supermarkets and shops to buy bottled water and beverages as much as possible. The city
ran out of bottled water and barreled water ones, and water supply of the city faced crisis.
 Water Contamination Incident
It took four days from full–blown of the tap water contamination in Lanzhou on April
10th, 2014 to call off the emergency measure by Lanzhou Municipal Government on April
14th and tap water return to safe water. Detailed information is shown in following table:

Date Inciden Veolia´s Action Government Measures Public Response

t
Monitor quality of
Benzene level in No. 2 water output of Drink tap water
th
output water for
April 10 Veolia up to 118 micrograms per liter — with an excessive
three times in a row.
— level of benzene
Fully stop the north line duct; activate Continue to monitor Hold thematic meeting on disposal of
low-pressure water supply in downtown water quality and "4.10" excessive benzene in tap water Buy-up barreled
April 11
th
and stop water supply in higher altitude search for the cause of the urban area of Lanzhou City and water and bottled
area and marginal area of the city, and of the incident. take relevant emergency disposal water.
limit production water of the city. measures.
urban
Benzene level in tap water of certain areas Continue to monitor
Fire and sanitation authorities
decreases significantly. Lanzhou Municipal water quality and
th provide safe drinking water for Return to drink
April 12 Government call off the emergency search for the cause
citizens. Certain hospitals establish free tap water.
measures in Qingcheng District and Qilihe of the incident.
registering and emergency windows for
District.
benzene poisoning.

Publish direct reason of the incident-

sewage with oil in the ducts of the tap
It is published that the direct reason is water company. The reason the sewage
th
due to sewage with oil in the ducts of —
— is in the ducts is due to an earlier oil —
April 13
the tap water company. leakage accident of Lanzhou
Petrochemical Company, PetroChina
nearby the duct. After handling of the
accident, residual oil and fire
wastewater seep into the ground
and contaminated the duct.
Tap water is restored to safe water.
th
April 14 Emergency measures completely call —
— Fully call-off of emergency measures. —
off.

After discussion among relevant experts, the leading group for emergency disposal of
the excessive benzene in tap water of Lanzhou city incident called off the emergency
measures within the whole city, and stopped free distribution of emergency transportation
water, bottled water and barreled water. All Lanzhou citizens could drink tap water that
has been restored to safe water.

On the following press release held by Lanzhou Municipal Government, Lanzhou

Veolia Bater (Group) Co., Ltd confirmed to the press that Veolia Bater sampled and tested
water quality bask on April 2nd. However, comprehensive testing and analysis required
time. It was not until April 10th that benzene level in tap water was identified as beyond
limit and measures were undertaken. By April 1Sth, tap water supply to Lanzhou citizens
returned to normal.

The incident of excessive levels of benzene in tap water on April 11th alarmed the
water supply of Lanzhou city once again and thorough interpretation of the reasons for the
incident exhibited the water supply crisis of Lanzhou City to the public.

Due to excessive service of the No. S and No.4 dusts of Lanzhou Veolia Bater (Group)
€o., Ltd, the impermeable material in the expansion joints of the dusts cracked, as a result
of whish, the oily waste–water of Lanzhou Petrochemical Company precipitated over
decades, seeped into the dusts and contaminated the water transportation body with
excessive benzene, causing benzene exceeding the limit in certain areas.

The Lanzhou pollution incident is not the only case where Veolia has been suspected
of violating environmental standards. Since July 2007, Beijing Youth Daily reported that
Veolia had caused 13 water pollution incidents in various cities across China. In most
incidents, the water distributed by Veolia contained pollutants exceeding limits.

As the world’s largest private supplier of water services, Veolia Water has contracts
with municipalities in China covering 43 million people. In many ways, Veolia defines the
terms by which private water companies can operate in China. By signing in 2007 a 30-year
contract giving Veolia 45% of the shares of Lanzhou Water Group, the Lanzhou authorities
transferred part of their management and distribution responsibilities. Since then,
Lanzhou citizens complained that the new joint-venture did not upgrade the high-risk
water pipes built in 1955. According to Caijing, the benzene seepage is partly explained by
the fact that old water pipes run very close to the oil pipes of Sinopec. Last January, the
Lanzhou authorities unsuccessfully requested Sinopec to apologize for its repeated
pollution accidents. While Sinopec is also liable, to sue one of the most powerful state-
owned enterprises in China can be more challenging than Veolia.