May 11, 2018
Linc Energy has been fined $4.5 million for causing serious environmental harm at its underground coal gasification (UCG) site near Chinchilla.
The company, which is in liquidation, was found guilty last month in the Brisbane District Court.
Judge Michael Shanahan handed down his sentence on Friday, saying that despite the fact the company was in liquidation there were still good reasons to impose the fine.
During the trial, evidence was presented that Linc was aware of the environmental damage being caused by its operation and had attempted to hide it.
Toxic gases contaminated the air, soil and water on and around the UCG site.
Administrators were appointed to the company in April 2016, two years after the charges were laid.
Linc Energy was placed into liquidation a month later.
The District Court trial began in January this year however the company was not represented and offered no evidence in its own defence.
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Former Queensland Environment Minister Kate Jones told the ABC the fine would act as a deterrent.
“The fine sends a very strong message to other companies out there to do the right thing,” she said.
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Opposition Leader Deb Frecklington also welcomed the outcome.
“We welcome the court’s decision to fine Linc Energy $4.5 million, but no amount of money will reverse the damage to the Chinchilla community,” she said.
“This project should never have been approved by Labor in the first place.
“Annastacia Palaszczuk was a member of the government that approved this project in 2008, with very poor environmental safeguards in place.
“The LNP supported the legislation to ban UCG in Queensland.”
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Lock The Gate Alliance spokeswoman Vicki Perrin agreed Friday’s judgement sent “a strong message” to other mining companies in Queensland.
But the Alliance also called for tougher standards to prevent a repeat of the disaster.
“The Queensland Government needs to stop approving every mining and gas project that comes before it, and set higher standards in the early stages before we end up with another mess like this,” Ms Perrin said.
Lock The Gate also said it was “deeply concerned” about Linc Energy’s ability to pay the $4.5 million, given the firm was in liquidation.
Last year it was reported contamination around Linc’s former Chinchilla UCG plant could cost up to $80 million to clean up and the process could take many years – and possibly decades – to carry out.
Ms Perrin urged the government to pursue Linc executives through its “chain of responsibility” laws, which allow environmental obligations to be enforced against “related persons” of financially-troubled companies to ensure taxpayers do not bear the clean-up costs.
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Five former executives of Linc Energy – Peter Bond, Donald Schofield, Stephen Dumble, Jacobus Terblanche and Darryl Rattai – who are facing charges in relation to the UCG trial, are due to face a committal hearing in the Brisbane Magistrates Court in July.
[UPDATED]
Related articles:
- Linc Energy Found Guilty
- Linc Energy Court Trial Begins
- MP Calms Soil Contamination Fears
- More UCG Contamination Found
- Five Linc Executives Face Charges
- UCG Banned In Queensland
- Linc To Be Liquidated
- LNP Calls For UCG ‘Transparency’
- UCG To Be Banned In Queensland
- Linc Appoints Administrators
- Linc Landholders Plan Group Action
- Gasfields Review Extends To Coal
- Linc To Face Trial
- Lock The Gate Calls For Urgent Ban On UCG
- Linc To Face Class Action
- Calls To Ban UCG
- Workers Exposed To Syngas: Claim
- UCG Company Charged
