ARTICLE · 15 DECEMBER 2008

NGER: Contract Law And Allocating Responsibility For Reporting

DLA Piper Australia

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The concept of 'operational control' under the National Greenhouse and Energy Reporting Act 2007 (Cth) (NGER) is causing headaches for businesses, particularly when there are third party managers or operators of facilities, and when contractors and subcontractors are present at a facility.

AustraliaEnvironment

Charmian Barton

Jennifer Hughes

The concept of 'operational control' under the National Greenhouse and Energy Reporting Act 2007 (Cth) (NGER) is causing headaches for businesses, particularly when there are third party managers or operators of facilities, and when contractors and subcontractors are present at a facility. It is important to ensure that contractual documentation addresses each party's responsibility for complying with NGER reporting requirements.

THE CONCEPT OF OPERATIONAL CONTROL

A company (being a controlling corporation¹ or another member of the corporation's group) must register and report under NGER if it has operational control over a facility that:

Emits 25 kilotonnes or more of greenhouse gases each year; or

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