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Fears taxpayers may foot clean-up bill at Linc Energy's failed UCG site at Chinchilla

Tuesday, 15 Nov 2016 06:26:59 | Isobel Roe

Linc Energy was issued with an environmental protection order in May. (ABC News)

The Queensland Government is warning taxpayers could be left with the clean-up bill at a failed underground coal gasification (UCG) site on the state's Western Downs if liquidators are successful in a court challenge.

Linc Energy was issued with an environmental protection order in May to help remediate alleged serious contamination at its trial project near Chinchilla.

The company was charged with breaching its environmental authority after an investigation found hundreds of square kilometres of prime agricultural land were at risk from a cocktail of toxic chemicals and explosive gases that had allegedly seeped from Linc's UCG site.

Court documents obtained by the ABC showed the company's liquidator PPB Advisory had launched a legal challenge against the Department of Environment and Heritage Protection (DEHP), claiming the company was insolvent and could not afford the environmental protection order (EPO).

Lawyers for PPB Advisory said there might be "insufficient funds available in the winding up to make the priority payments in respect of employees".

"Enquiries the applicants have caused to be made indicate that the Chinchilla site is contaminated and requires remediation," the lawyers said.

"Ongoing compliance with the EPOs would have required Linc Energy to incur significant costs."

Government touts new protection for taxpayers

Queensland Environment Minister Steven Miles said the court challenge highlighted the importance of the Government's new chain of responsibility laws to protect Queenslanders from unwanted environmental clean-up costs.

"It is important the environment department has appropriate enforcement tools to go after companies that fail to appropriately rehabilitate disturbed sites," Mr Miles said.

"If we don't recover clean-up costs from the company involved, it is the taxpayer who ultimately pays.

"Environmental legislation in Queensland is based on the principle that the polluter should pay."

The Environment Department issued an environment protection order to Linc Energy founder Peter Bond earlier this year.

This week the ABC revealed the Department also issued summons on environmental breaches to four former directors of Linc Energy.

AustraliaPlus


 

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