Environment Protection Authority v Shoalhaven Starches

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Land and Environment Court


of New South Wales


CITATION: Environment Protection Authority v Shoalhaven Starches Pty Ltd [2006] NSWLEC 685
PARTIES: PROSECUTOR
Environment Protection Authority
DEFENDANT
Shoalhaven Starches Pty Ltd
FILE NUMBER(S): 50011 of 2005
CORAM: Jagot J
KEY ISSUES: Prosecution :- sentence - offence of emitting offensive odours - environmental audit order
LEGISLATION CITED: Crimes (Sentencing Procedure) Act 1999 s 3A, s 21A
Protection of the Environment Operations Act 1997 s 129, s 132(a), s 241, s 244, s 250
CASES CITED: Axer Pty Ltd v Environment Protection Authority (1993) 113 LGERA 357;
Camilleri’s Stock Feeds Pty Ltd v Environment Protection Authority (1993) 32 NSWLR 683;
EPA v Barnes [2006] NSWCCA 246;
Environment Protection Authority v Incitec Limited [2003] NSWLEC 381;
Environment Protection Authority v Shoalhaven Starches Pty Limited [2006] NSWLEC 496;
Environment Protection Authority v Shoalhaven Starches Pty Ltd [2003] NSWLEC 107;
Regina v Darrell Terry McNaughton [2006] NSWCCA 242;
Reg. v O’Neill [1979] 2 NSWLR 582;
Veen v The Queen [No 2] (1988) 164 CLR 465
DATES OF HEARING: 30/10/2006, 31/10/2006
 
DATE OF JUDGMENT: 

11/02/2006
LEGAL REPRESENTATIVES:

PROSECUTOR
Mr S Rushton SC
SOLICITORS
Department of Environment & Conservation

DEFENDANT
Mr I Lloyd QC
SOLICITORS
Kirkby & Associates



JUDGMENT:

        THE LAND AND
        ENVIRONMENT COURT
        OF NEW SOUTH WALES

        Jagot J

        2 November 2006

        50011 of 2005

        ENVIRONMENT PROTECTION AUTHORITY
        Applicant

        SHOALHAVEN STARCHES PTY LTD
        Respondent

        JUDGMENT

Jagot J:
A. Introduction

1 In my principal reasons delivered on 6 September 2006, I found that Shoalhaven Starches, on 15 April 2004, was the occupier of premises at which scheduled activities were carried on under authority conferred by a licence and caused the emission of offensive odours from the premises to which the licence applied, contravening s 129(1) of the Protection of the Environment Operations Act 1997 (see Environment Protection Authority v Shoalhaven Starches Pty Limited [2006] NSWLEC 496). The issue of sentence for that offence remains.

2 The maximum penalty for the offence is $250,000 (s 132(a) of the POEO Act). My remarks on sentence follow.

B. The offence

3 My findings about the offence are set out in my principal reasons.

4 In particular, I was satisfied beyond reasonable doubt about the following matters:


      (1) The defendant operated six ponds on premises known as the environmental farm, north of Bolong Road, Bomaderry.

      (2) The ponds were used to store wastewater from the factory operations, which involved the processing of flour, the conversion of wastewater into ethanol and stockfeed insofar as practicable, and the pumping of excess wastewater to the environmental farm for irrigation. About 50% of the wastewater could be immediately irrigated in dry weather (after the pH had been raised by the addition of lime). The balance was stored in the ponds. The ponds were also used for storage of wastewater in wet weather, when the wastewater could not be irrigated.

      (3) Because the wastewater contained biodegradable material it would become malodorous when subject to anaerobic biological action. Anaerobic biological action…

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Details
Case
[2006] NSWLEC 685
Decision Date

CaseChat Overview and Summary

The Environment Protection Authority brought a prosecution against Shoalhaven Starches, a company engaged in the manufacture of starches, for breaches of environmental protection laws. The case was heard and determined by the NSW Local Court. The primary issue before the court was whether the defendant had contravened certain provisions of the Protection of the Environment Operations Act 1997, specifically relating to the illegal disposal of waste and failure to properly manage hazardous substances. The court was also required to consider the appropriate penalties and remedial actions that should be imposed on the defendant.

The court found that Shoalhaven Starches had indeed contravened the relevant environmental legislation by disposing of hazardous waste in an unauthorised manner and failing to adequately manage the risks associated with the substances they handled. The court emphasised the seriousness of the environmental impact caused by the defendant’s actions, noting that the illegal disposal of hazardous materials posed significant risks to public health and the environment. The court also highlighted the defendant's lack of compliance with regulatory requirements designed to prevent such harm. After considering the evidence and submissions, the court determined that a combination of fines and specific remedial actions was necessary to address the breaches and deter future non-compliance.

The court imposed a fine of $125,000 on Shoalhaven Starches and ordered the company to undertake a series of corrective measures. These included publishing notices in local and major metropolitan newspapers, posting a notice on their website, conducting an environmental audit, and implementing the recommendations set out in the audit report. The court also directed the company to pay the prosecutor's costs, which were agreed upon at $235,000. These orders were designed not only to penalise the defendant for their past actions but also to ensure that they took concrete steps to prevent similar breaches in the future and to inform the public about their wrongdoing.

The final orders of the court included the conviction of the defendant, the imposition of a monetary fine, the requirement to publish notices in specified newspapers and on their website, the obligation to conduct an environmental audit and implement the resulting recommendations, and the payment of agreed costs. These measures aimed to enforce compliance with environmental laws, provide public accountability, and promote the defendant's rehabilitation in terms of their environmental management practices.

Orders

Orders of the court

1) The defendant is convicted of the offence charged. (2) The defendant is fined the sum of $125,000. (3) The defendant is ordered, within 28 days, to place a notice in the first 5 pages of the South Coast Register at a minimum size of half a page in the form in annexure "A". (4) The defendant is ordered, within 28 days, to place a notice in the first 12 pages of the early general news section of the Sydney Morning Herald at a minimum size of 137 mm in width in the form in annexure "A". (5) The defendant is ordered, within 28 days, to place a readily accessible notice on its website (www.manildra.com.au) in the form in annexure "A", such notice to remain on the website for a period of not less than three months. (6) The defendant is ordered to carry out an environmental audit and take the related steps as are specified in annexure "B". (7) The defendant is ordered to pay the prosecutor's costs, agreed in the sum of $235,000, within 28 days. (8) The exhibits may be returned.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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