Qld EPA takes tough stance on environmental management program conditions

By Kathryn Pacey and Cheriden Farthing.

Key Points:
This demonstrates the EPA's stringent approach to the implementation of environmental management program conditions.

Queensland's Environmental Protection Agency ("EPA") recently secured a substantial fine of $240,000 against timber treatment company, Australian Hardboards Limited ("AHL"). The case involved prosecution of a masonite plant on the Bremer River run by Hudson Timber Products and its subsidiary AHL.

Environmental Management Program

AHL applied to the EPA for an environmental management program ("EMP") in 2001 after being unable to comply with discharge limits in its licence. The EMP required AHL to construct a $7 million wastewater treatment plant designed to stop contaminated waste from entering the Bremer River by April 2003. The deadline for commissioning was extended to June 2004.

The EPA prosecution

AHL failed to meet the treatment plant deadline within the designated timeframe, despite being granted an extension. As a result, the EPA took action against the company and its director for failing to comply with the EMP.

Three separate actions were commenced out of this case:

• An action against AHL for 24 counts of wilfully and unlawfully causing serious environmental harm.
• An action against the managing director of Hudson Timber Products for 23 counts of failing to ensure that AHL complied with the EP Act.
• An application for an interim order to commission a treatment plant within 6 months and restrain the sale of the land until the plant has operated for a year and for a bank guarantee of $7.5m to secure construction of the plant.

An action against AHL for 24 counts of wilfully and unlawfully causing serious environmental harm.An action against the managing director of Hudson Timber Products for 23 counts of failing to ensure that AHL complied with the EP Act.An application for an interim order to commission a treatment plant within 6 months and restrain the sale of the land until the plant has operated for a year and for a bank guarantee of $7.5m to secure construction of the plant.

The outcome

AHL pleaded guilty to five counts of breaching its EMP and was fined in the Brisbane Magistrates Court, however no conviction was recorded. In addition, AHL’s company director was found guilty of failing to ensure that AHL complied with the conditions of the EMP and was fined $8000, however no conviction was recorded.

Implications of the decision

The fine incurred by AHL is one of the largest ever secured by the EPA. This proceeding demonstrates the EPA's stringent approach to the implementation of EMP conditions. Since the case was determined, the EPA has released a statement stipulating that it is not prepared to allow EMPs to be used as a delaying tactic while operators continue with their business and subsequently pollute the environment.

For further information, please contact Kathryn Pacey.