US-based logistics company Crowley says it’s collaborating with the NT Government to find a resolution to its Project Caymus bulk fuel storage facility being unlawfully constructed in Darwin Harbour without the necessary building permit.

The ABC revealed leaked correspondence on Monday that showed the 11 fuel tanks, that were designed to hold 300 million litres of jet fuel at East Arm to support US military operations in the Indo-Pacific, were built without the necessary building permit, violating the requirements set out in the NT Building Act.

Crowley won a tender from for the US Government in 2021 to build and manage operations at the facility, with construction beginning in January 2022, expected to be completed in September 2023.

But the tanks remain unfinished and have never held fuel due in part to “water intrusion in the leak detection system” at the base of the tanks, the ABC reported.

“We are in the process of solving that issue in a timely manner,” a Crowley spokesperson told the ABC, with works expected to be finished some time this year.

“Our first and highest priority continues to be completing [Project Caymus] safely, responsibly and in compliance with all applicable laws and regulations.”

In a correspondence addressed to Crowley executive director David Attewill, which the ABC obtained, NT Director of Building Control Mark Meldrum wrote that the fuel tanks are classified as structures according to the NT Building Act, which means the company must obtain both a building permit and an occupancy permit.

“As the project is nearing completion without a building permit in place, you are currently in breach of the Building Act. Enforcement measures may need to be applied if this is not addressed in a timely manner,” the letter dated February 20, 2024, read.

Crowley maintained that Project Caymus received a development permit in November 2021, permitting the land development for the project. However, the development permit stated that it “does not constitute approval to commence building work.”

“You are advised to contact a Northern Territory registered building certifier to seek a building permit as required by the Northern Territory Building Act 1993 before commencing any demolition or construction works,” the development permit stated, as per the ABC.

Mr Meldrum did not answer questions regarding his decision to permit construction to begin and proceed without an approved building permit.

He also refrained from commenting on whether any enforcement measures had been implemented against Crowley.

Instead, an NT Department of Lands, Planning and Environment representative stated that they supplied Crowley with the necessary NT and Australian standards to ensure their tanks met legislative compliance.

Constructed to store 300 million litres of military-grade jet fuel, the $270 million facility was unveiled in 2021 as a key initiative for US defence operations based in the NT.

Crowley initially subcontracted Saunders International as the lead builder for Project Caymus, but their relationship ended in April 2023 when Crowley terminated the contract, which allowed for termination at any time without cause.

Saunders stated it fulfilled its contractual obligations.

Latitude 63, another US-based company, then took over Saunders’ responsibilities but also left the project in October 2024, citing contractual issues that prevented it from commenting on the issue.