Mining leases: environmental liability of office holders, receivers and liquidators

The Environmental Protection Act 1994 (Qld) (EPA) imposes duties to prevent environmental harm. There are significant penalties for contravention. This is a concern for directors, employees, and secured creditors as well as receivers, voluntary administrators and liquidators appointed to a mining company.

In the recent Federal Court decision of CuDeco, the liquidators sought court directions to protect themselves from potential liability.

Brief overview of the legislation

The EPA is administered by the Department of Environment and Science (DES).

Under section 493(2) of the EPA, if a corporation commits an offence under the EPA, each executive officer of the corporation also commits an offence, namely, the offence of failing to ensure the corporation complies with the EPA.