Directors’ personal liability for non-compliance with environment protection licence requirements

In NSW, the Environmental Protection Authority (EPA) issues environment protection licences to owners or operators of various types of industrial premises under the Protection of the Environment Operations Act 1997.  

A feature of the recently passed Environment Legislation Amendment Act 2022 is the extension of the director’s personal liability for offences by a company, including, for example, clean-up notices.

Case Study: Environmental Protection Authority v Crush and Haul Pty Ltd: EPA v Cauchi (2022)

Crush and Haul Pty Ltd was operating a quarry at Corindi Beach, north of Coffs Harbour, where it was extracting, processing and storing rock and clay for sale. The company did not, however, have a licence for this ‘scheduled activity’.

The outcome of the EPA’s prosecution in the NSW Land and Environment Court was that the company was fined $225,000 and its sole director $22,500. They were also ordered to pay the EPA’s costs and publish a notice in various publications, including the Sydney Morning Herald and Daily Telegraph.

This case is a reminder not to carry out a scheduled activity without the required environmental protection licence and for company officers to ensure they take reasonable steps to prevent offences by the company. It is more important than ever to ensure that a company has robust procedures to ensure they are compliant and for officers to understand their own potential liability.

Contact our Land and Environment Court Solicitors in Sydney, NSW

Szabo & Associates Solicitors can advise on environmental issues and, if required, guide clients in both the Supreme Court and Land and Environment Court. If you need the help of our experienced professionals, please call us on 02 9281 5088 or complete the online contact form.