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[2026] NSWCCA 80
Court of Criminal Appeal (NSW)
2026-06-17
Ward P at [1]; Leeming JA at [326]; Fagan J at [327]
Original judgment source is linked above.
Source: NSW Caselaw (www.caselaw.nsw.gov.au). Converted to plain text by ZoeLaw. Not the official version.
Medium Neutral Citation: Maules Creek Coal Pty Ltd v Environment Protection Authority; Environment Protection Authority v Maules Creek Coal Pty Ltd [2026] NSWCCA 80
Hearing dates: 4 and 5 February 2026
Date of orders: 17 June 2026
Decision date: 17 June 2026
Before: Ward P at [1]; Leeming JA at [326]; Fagan J at [327]
Decision: 1. The convictions for each of the charges are quashed and, in lieu thereof, a verdict of acquittal on each of those charges is entered.
2. The orders of the Land and Environment Court imposing monetary penalties are set aside.
3. The application for leave to appeal against sentence is dismissed.
4. The order for costs made in the Land and Environment Court is set aside.
5. The matter is remitted to the Land and Environment Court on the question of costs of the proceedings in that court.
6. There is no order for costs of the proceedings in this Court.
Catchwords: CRIME — Appeal from Land and Environment Court — Appeal against conviction — overburden blast — construction of environment protection licence conditions — whether specific limit conditions of airblast overpressure and vibration levels override general obligation of competence — whether specific limits act as a “proxy” for general obligation of competence — as to the timing, stemming and overloading charges, whether it was established beyond reasonable doubt that the appellant failed to carry out the blast in a competent manner — as to the noise charge, whether it was established beyond reasonable doubt that the explosives were not dealt with in a proper and efficient manner
Legislation Cited: Criminal Appeal Act 1912 (NSW), ss 5AA, 5AB
Environment Protection Act 1970 (Vic)
Environmental Planning and Assessment Act 1979 (NSW), s 75
Interpretation Act 1987 (NSW), s 3(1)
Protection of the Environment Operations Act 1997 (NSW), ss 50(2), 55, 63, 64, 66, 120, 122, 124, 125, 126, 129, 140, 250
Cases Cited: Abou-Lokmeh v Harbour Radio Pty Ltd [2016] NSWCA 228
ACE Demolition & Excavation Pty Ltd v Environment Protection Authority [2024] NSWCCA 4; (2024) 260 LGERA 358
Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue (NT) (2009) 239 CLR 27; [2009] HCA 41
Allianz Australia Insurance Ltd v Cervantes [2012] NSWCA 244; (2012) 61 MVR 443
Beale v Government Insurance Office of NSW (1997) 48 NSWLR 430
Beckwith v R (1976) 135 CLR 569; [1976] HCA 55
Bulga Underground Operations Pty Ltd v Nash (2016) 93 NSWLR 338; [2016] NSWCCA 37
Chamberlain v The Queen (1983) 72 FLR 1
Chamberlain v The Queen (1984) 153 CLR 521; [1983] HCA 7
CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384; [1997] HCA 2
Collector of Customs v Agfa-Gevaert Ltd (1996) 186 CLR 389; [1996] HCA 36
Commonwealth of Australia; CD v Director of Public Prosecutions (DPP) (SA) [2025] HCA 37; (2025) 99 ALJR 1388
Environment Protection Authority v Australian Iron & Steel Pty Ltd (1992) 28 NSWLR 502; 64 A Crim R 124
Environment Protection Authority v Bartter Enterprises Pty Ltd (No 3) [2020] NSWLEC 114
Environment Protection Authority v Charlotte Pass Snow Resort Pty Ltd [2021] NSWLEC 37
Environment Protection Authority v Collex Pty Ltd [2001] NSWLEC 177; (2001) 115 LGERA 337
Environment Protection Authority v Elf Farm Supplies Pty Ltd [2017] NSWLEC 60
Environment Protection Authority v GrainCorp Operations Limited [2019] NSWLEC 143
Environment Protection Authority v Huntsman Corporation Australia Pty Ltd [2011] NSWLEC 39
Environment Protection Authority v Riverina (Australia) Pty Ltd (No 2) [2015] NSWCCA 252
Environment Protection Authority v Sydney Water [2022] NSWLEC 100
Environment Protection Authority v Whitehaven Coal Mining Limited [2019] NSWLEC 27
Geitonia Pty Ltd v Inner West Council; Gertos v Inner West Council [2016] NSWCCA 186
Genkem Pty Ltd v Environment Protection Authority (1994) 35 NSWLR 33; 85 LGERA 197
Gilmour v Environment Protection Authority; Tableland Topdressing Pty Ltd v Environment Protection Authority (2002) 55 NSWLR 593; [2002] NSWCCA 399
Histollo Pty Ltd v Director-General of National Parks and Wildlife Service (1998) 45 NSWLR 661
JBS Australia Pty Ltd v SafeWork NSW [2024] NSWCCA 209
Landmark Roofing Pty Ltd v SafeWork NSW [2021] NSWCCA 95
Leda Manorstead Pty Ltd v Secretary, Department of Planning and Environment [2022] NSWCCA 220; (2022) 253 LGERA 184
Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24; [1986] HCA 40
Palmanova Pty Ltd v Commonwealth [2025] HCA 35; (2025) 99 ALJR 1362
Prefabricated Buildings Pty Ltd v Bathurst Regional Council [2017] NSWLEC 44
Saraswati v The Queen (1991) 172 CLR 1; [1991] HCA 21
SZTAL v Minister for Immigration and Border Protection (2017) 262 CLR 362; [2017] HCA 34
The Phosphate Co-operative Company of Australia Limited v Environment Protection Authority (1977) 138 CLR 134; [1977] HCA 65
Category: Principal judgment
Parties: Conviction Appeal
Maules Creek Coal Pty Ltd (Appellant)
Environment Protection Authority (Respondent)
Sentence Appeal
Environment Protection Authority (Appellant)
Maules Creek Coal Pty Ltd (Respondent)
Representation: Counsel:
AE Galasso SC with JC Lee and AL Bonnor (Appellant Conviction Appeal/Respondent Sentence Appeal)
H El-Hage SC with A Garsia and G Marsden (Appellant Sentence Appeal/Respondent Conviction Appeal)
Solicitors:
King & Wood Mallesons (Appellant Conviction Appeal/Respondent Sentence Appeal)
Legal Services Branch, Environment Protection Authority (Respondent Conviction Appeal/Appellant Sentence Appeal)
File Number(s): 2021/234554; 2021/234556; 2021/234557; 2021/234558
Publication restriction: Nil
On 4 October 2024, following a prosecution in the Land and Environment Court, Maules Creek Coal Pty Ltd (MCC) was found guilty of four offences under the Protection of the Environment Operations Act 1997 (NSW) (POEO Act). The offences relate to an overburden blast (the Blast) carried out by MCC on 20 August 2020 at the Maules Creek open cut coal mine in Boggabri, New South Wales (the Mine).
Blasting to extract coal is a regulated activity, subject to the conditions imposed by the Environment Protection Authority (EPA). The Mine was operated pursuant to a Project Approval, an Environment Protection Licence (EPL) issued under the POEO Act and a Blast Management Plan (BLMP). After the Blast, the airblast overpressure and ground vibration levels recorded by the blast and dam monitors at each of the four monitor locations prescribed in the EPL were within the limits required under Conditions L4.1-L4.4 of the EPL. Operators at the nearby Boggabri Coal Mine gave evidence of the impact on them of the airblast overpressure.
MCC was charged with designing and carrying out the Blast otherwise than in a competent manner, in contravention of Condition O1.1 of the EPL and against s 64(1) of the POEO Act. MCC was found guilty of three offences against s 64(1) of the POEO Act related to the timing of the Blast, the stemming length used and the overloading of the blast holes with explosives. MCC was also found guilty of an offence against s 140 of the POEO Act for dealing with materials on the premises in such a manner as to cause the emission of noise by failing to deal with those materials in a proper or efficient manner. Following a sentence hearing, MCC was convicted of each offence and ordered to pay a monetary penalty of $50,000 for each offence (in total, a penalty of $200,000 for the contraventions of s 64 and s 140 of the POEO Act).
MCC appealed against the conviction and EPA sought leave to appeal against sentence. The conviction appeal and sentence appeal (were leave to be granted) were heard concurrently. On the conviction appeal, MCC pressed 16 grounds of appeal that were grouped into three categories: (1) construction of the EPL (ground 1-6); (2) competence findings (grounds 7-14); and (3) the noise charge (grounds 17-18). Grounds 15 and 16 were withdrawn.
As to the construction of the EPL, MCC contended that EPL Conditions L4.1-L4.4 regulated the blasting, such that a more general obligation of competence has no place where there was compliance with specific prescribed limits for the Blast. As to competence, MCC made several complaints about the primary judge’s findings on the question of competence as founding a breach of Condition O1.1 for the timing, stemming and overloading charges. As to the noise charge, MCC contended that her Honour erred in finding beyond reasonable doubt that MCC failed to deal with materials in a proper and efficient manner.
As to Grounds 1 and 2: (per Ward P ([151]-[155]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
1. Condition O1.1 of the EPL imposes an obligation of competence separate and independent from the specific obligations in Conditions L4.1-L4.4. Condition O1.1 directs attention to the manner in which licensed activities are carried out, whereas Conditions L4.1-L4.4 are specific limit conditions which focus on the outcome of the blasting.
As to Ground 3: (per Ward P ([161]-[164]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
2. Compliance with the limits in Conditions L4.1-L4.4 does not establish an answer to an alleged breach of Condition O1.1. The primary judge did not err in concluding that compliance with the specific limit conditions was not in effect a proxy for compliance with Condition O1.1.
3. Compliance with the limit conditions is not a defence to a claim for breach of Condition O1.1, as there is no express provision to that effect.
As to Grounds 4, 5 and 6*:* (per Ward P ([187]-[208]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
As to Ground 7: (per Ward P ([216]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
5. The primary judge did not err in construing the phrase “competent manner” in Condition O1.1 of the EPL by reference to the possible environmental consequences of the conduct in question.
As to Ground 8: (per Ward P ([226]-[230]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
6. There was no error in considering, when determining whether lack of competence had been established, the potential environmental consequences of the conduct.
As to Ground 9: (per Ward P ([237]-[242]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
7. The question whether an activity is carried out competently is not confined to a consideration of whether particular outcomes or conditions are met. There was no error in the primary judge having regard to the Australian Standard when assessing whether the charges of lack of competence in the conduct of the Blast were met.
As to Grounds 10-12: (per Ward P ([257]-[259]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
8. The primary judge did not err in having regard to compliance with the BLMP when assessing whether the charges of lack of competence were established. However, the elements in cl 3.3.5 of the BLMP are not prescriptive and any deviation from the design standard, in circumstances where this was not a standard blast, is not a sound indication of lack of competence.
As to Ground 13: (per Ward P ([273]-[274]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
9. A finding of lack of competence is not made good by reference to the failure to consider the potential impact of the Blast at locations other than the specified monitoring points in the EPL.
As to Ground 14: (per Ward P ([282]-[289]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
10. It does not follow that there is reasonable doubt as to MCC’s guilt on the respective s 64 charges because the limit conditions in the EPL were met. Compliance with the specific limit conditions in the EPL, while relevant to the question of competency, is not necessarily determinative.
11. However, in light of the competing expert evidence on the issue of competency, it was not sufficient for her Honour to prefer one expert’s evidence over the other in order to find it established beyond reasonable doubt that there was a lack of competence in the conduct of the Blast.
As to Grounds 15 and 16: These grounds were withdrawn (note [5]; [106]).
As to Grounds 17 and 18: (per Ward P ([313]-[320]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
12. Compliance with the noise condition in the EPL does not provide a defence (or implied defence) to an alleged breach of s 140 of the POEO Act. However, compliance with specific conditions of the EPL is an indication that the materials were dealt with in a proper and efficient manner.
13. The primary judge erred in concluding that it was established beyond reasonable doubt that the explosives were not dealt with in a proper and efficient manner. Efficiency must be assessed by reference to the outcome sought to be achieved by the Blast, taking into account the objective in cl 1.4 of the BLMP.
14. While it might be said that the handling of the materials was inefficient in a practical sense, overloading was not a particular of the noise charge. Nor is it clear that the overloading was the cause of noise exceeding monitor levels at non-EPL monitoring points. The expert evidence was that overloading was not the cause of the airblast. The modelling carried out by Dr McKenzie raised reasonable doubt as to the allegation that the materials were not handled in a proper and efficient manner.
Sentence appeal: (per Ward P ([322]), Leeming JA ([326]) and Fagan J ([327]) agreeing)
15. It is not necessary to deal with EPA’s application for leave to appeal the sentences imposed by the primary judge, where orders are made in this Court quashing the convictions and entering verdicts of acquittal (and setting aside the monetary penalties imposed).
WARD P: On 4 October 2024, Maules Creek Coal Pty Ltd (the appellant on the conviction appeal and respondent on the sentence appeal) (MCC) was found guilty in the Land and Environment Court of four offences – three against s 64(1) of the Protection of the Environment Operations Act 1997 (NSW) (POEO Act) and the fourth against s 140(1) of the POEO Act (Environment Protection Authority v Maules Creek Coal Pty Ltd (No 3) [2024] NSWLEC 97 (principal judgment)). The offences relate to an overburden blast (the Blast) carried out by MCC on 20 August 2020 at the Maules Creek open cut coal mine in Boggabri, New South Wales (the Mine).
The process of blasting, using explosives, is used to deaggregate rock and other similar material for the purpose of extracting coal. Blasting is a regulated activity, subject to the conditions imposed by the planning authority (the Environment Protection Authority) (EPA), the respondent to the conviction appeal and appellant on the sentence appeal.
Relevantly, the Blast was specifically designed and implemented to address difficulties that MCC had experienced in achieving adequate fragmentation of capping rock in a previous overburden mine blast carried out in the “Herndale seam” on 7 August 2020 (see [7] of the Statement of Agreed Facts dated 2 December 2022 (Ex 2 in the proceedings); principal judgment at [38]-[40]). Capping rock or caprock is the conglomerate material forming part of the overburden that lies at and near the ground surface within the same stratum as the stemming that sits in the blast holes above the explosive charge – see principal judgment at [40].
Following a sentence hearing before the primary judge, final conviction orders were made and monetary penalties were imposed, together with costs orders and other orders pursuant to s 250(1)(a) of the POEO Act (Environment Protection Authority v Maules Creek Coal Pty Ltd (No 4) [2025] NSWLEC 92 (sentence judgment)). The primary judge imposed a penalty of $50,000 for each offence (thus, in total, a penalty of $200,000 for the contraventions of ss 64 and 140 of the POEO Act) and made orders for the publication of a notice as to the offences and for costs.
MCC, by notice of appeal filed on 17 September 2025, appeals its conviction on a number of grounds (not all of which were ultimately pressed). EPA, which prosecuted the charges against MCC in the Land and Environment Court, by notice of appeal filed on 23 September 2025, seeks leave to appeal against the sentences imposed, including on the basis that the sentences are manifestly inadequate.
The conviction and sentence appeals were heard concurrently. For the reasons which follow, the conviction appeal should be allowed and EPA’s application for leave to appeal against sentence will necessarily be dismissed.
As adverted to above, MCC operates an open cut coal mine (the Maules Creek Coal Mine), at Boggabri in the north-west of New South Wales (the Mine) ([1]), situated 45km southeast of Narrabri and approximately 16km to the north-northeast of Boggabri ([4]). Mining operations commenced at the Mine in about 2014 and continued as at the date of the Statement of Agreed Facts ([1]; [6]). MCC’s mining activities are “scheduled activities” within the meaning of the POEO Act.
The Mine is operated pursuant to a Project Approval issued on 23 October 2012 ([3]) pursuant to the now repealed s 75J of the Environmental Planning and Assessment Act 1979 (NSW) and an Environment Protection Licence (EPL) issued on 2 May 2013 under the POEO Act ([2]). (As to the Project Approval, see the principal judgment at [30]-[32]; as to the EPL, see the principal judgment at [22]-[29].) The relevant provisions of the Project Approval and EPL are discussed further below.
The Mine forms part of a contiguous cluster of three open cut coal mines in the area (the other two being known as the Boggabri Coal Mine and the Tarrawonga Coal Mine). The Boggabri Coal Mine (approximately 1.3km south of the Mine) and the Tarrawonga Coal Mine (approximately 5.2km south of the Mine) (see [5]) also adopt blasting activities for the purposes of mining operations. The mining precinct in which the three coal mines are located is known as the “BTM Complex”.
On 23 October 2012, the Mine was approved, subject to conditions, by the Planning Assessment Commission of NSW (principal judgment at [30]). The Project Approval was granted to Aston Coal 2 Pty Ltd (Aston Coal) to construct the Mine and carry out mining operations at the site until 2034. MCC has been engaged by Aston Coal (and other relevant companies) to operate the Mine. At all relevant times, Whitehaven Coal Limited (Whitehaven Coal) was the ultimate holding company of MCC.
Condition [15] of the Project Approval provided that all plant and equipment be maintained and operated in a proper and efficient manner.
The Project Approval then contained (in Schedule 3) various conditions: noise and vibration being specifically addressed at Conditions 2-17; blasting at Conditions 18-25.
Condition 18 provided as follows in relation to blasting criteria:
BLASTING
Blasting Criteria
18. The Proponent shall ensure that the blasting on the site does not cause exceedances of the criteria in Table 7.
Table 7: Blasting criteria
However, these criteria do not apply if the Proponent has a written agreement with the relevant owner or infrastructure provider/owner, and the Proponent has advised the Department in writing of the terms of this agreement.
The 115 dB(Lin Peak) and 5 mm/s, with an allowable exceedance of 5%, are referred to elsewhere in the trial record as “the EPL 95 limits” or “the EPL 95% limits”.
Blasting hours and days were controlled by Condition 19; blasting frequency was provided for by Condition 20.
Condition 25 provided for the preparation and implementation of a blast management plan:
Blast Management Plan
- The Proponent shall prepare and implement a Blast Management Plan for the project to the satisfaction of the Director-General. This plan must:
(a) be submitted to the Director-General for approval prior to undertaking any blasting activities on the site;
(b) be prepared in consultation with the EPA and interested members of the local community potentially affected by blasting operations;
(c) propose and justify any alternative ground vibration limits for public infrastructure in the vicinity of the site;
(d) describe the measures that would be implemented to ensure:
• best management practice is being employed; and
• compliance with the relevant conditions of this approval;
(e) include a road closure management plan for blasting within 500 metres of a public road, that has been prepared in consultation with Council;
(f) include a specific blast fume management protocol to demonstrate how emissions will be minimised including risk management strategies if blast fumes are generated;
(g) include a monitoring program for evaluating the performance of the project including:
• compliance with the applicable criteria; and
• minimising fume emissions from the site; and
(h) include a Leard Forest Mining Precinct Blast Management Strategy that has been prepared in consultation with the other mines within the Leard Forest Mining Precinct to minimise the cumulative blasting impacts of all the mines within the precinct.
At all relevant times, MCC held the EPL (EPL number 20221), which was issued under s 55 of the POEO Act on 2 May 2013 (principal judgment [22]). The EPL authorises and regulates the carrying out of the scheduled activities and regulated aspects of the mine blasting. The EPL provides that the “responsibilities of licensee” include “to ensure persons associated with you comply with this Licence, as set out in s 64 of the Act”. (The administrative conditions in the EPL are set out at [23] of the principal judgment.)
Pursuant to Condition A1.1 and A.1.2 of the EPL, the scheduled activities of “Coal works”, “Mining for coal”, “Crushing, grinding or separating” are authorised to be carried out. “Mining for coal” is defined in cl 28 of Schedule 1 of the POEO Act as:
(1) This clause applies to mining for coal, meaning the mining, processing or handling of coal (including tailings and chitter) at underground mines or open cut mines.
(2) The activity to which this clause applies is declared to be a scheduled activity if —
…
(b) it has disturbed, is disturbing or will disturb a total surface area of more than 4 hectares of land by —
(i) clearing or excavating, or
(ii) constructing dams, ponds, drains, roads, railways or conveyors, or
(iii) storing or depositing overburden or coal (including tailings and chitter).
Condition A3.1 of the EPL provides that the EPL “applies to all other activities carried on at the premises…”. (Thus, EPA says that all activities carried on at the premises are “licensed activities” for the purposes of Condition O1.1 – see below.)
Within Chapter 2, headed “Discharges to Air and Water and Applications to Land”, Condition P1.4 sets out a table identifying points “for the purposes of weather and/or noise monitoring and/or setting limits for the emission of noise from the premises”. Those points relevantly include items 31, 32, 33 and 34 (each described as monitoring points for “[a]ir blast overpressure and ground vibration peak particle velocity monitoring”), those being at locations labelled BM1-BM4 respectively on an aerial photograph submitted with the licence variation application form received by EPA on 11 October 2017. MCC notes that such monitoring points were not nominated in the Project Approval.
Chapter 3 is headed “Limit Conditions”. Condition L1.1 (under the heading “Pollution of Waters”) provides that, except as may be expressly provided in any other condition of the EPL, the licensee must comply with s 120 of the POEO Act. (The only relevance of the limit conditions relating to pollution of waters arises in the context of MCC’s argument that satisfaction of the blasting limits provides an implied defence to the various charges – see below.)
Noise limits are dealt with in Condition L3. Relevantly, Condition L3.3 provides that noise generated at the premises that is measured at five specified noise monitoring points must not exceed the noise levels specified in the table there set out for that point during the corresponding time periods specified in Column 1 of the table when measured using the corresponding measurement parameters listed in Column 2.
Blasting limits are dealt with in Condition L4, relevantly, as follows:
L4 Blasting
L4.1 The airblast overpressure level from blasting operations in or on the premises must not exceed 120dB (Lin Peak) at any time at monitoring points 31, 32, 33, or 34 as defined in Condition P1.4 of this licence.
L4.2 The airblast overpressure level from blasting operations in or on the premises must not exceed 115dB (Lin Peak) for more than five per cent of the total number of blasts over each reporting period at any time and at monitoring points 31, 32, 33, or 34 as defined in Condition P1.4 of this licence.
L4.3 The ground vibration peak particle velocity from the blasting operations carried out in or on the premises must not exceed 10mm/sec at any time at monitoring points 31, 32, 33, or 34 as defined in Condition P1.4 of this licence.
L4.4 The ground vibration peak particle velocity from the blasting operations carried out in or on the premises must not exceed 5mm/sec for more than five per cent of the total number of blasts over each reporting period at monitoring points 31, 32, 33, or 34 as defined in Condition P1.4 of this licence.
…
L4.7 Blasting at the premises is limited to 1 blast on each day on which blasting is permitted.
…
L4.8 Condition L4.7 does not apply to blasts that generate ground vibration of 0.5mm/s or less at any residence on privately-owned land, or to blasts required to ensure the safety of the mine or its workers.
Note: For the purposes of this condition, a blast refers to a single blast event, which may involve a number of individual blasts fired in quick succession in a discrete area of the mine.
As noted above, Condition P1.4 specified the blast monitors to be positioned at the monitoring points referred to in Condition L4.
MCC attaches significance to the fact that Conditions L4.1 and L4.2 were varied in 2018, following a licence variation application on 11 October 2017, reducing its obligation in respect of airblast overpressure and ground vibration levels to the four monitoring locations now identified in the EPL (BM1-BM4). MCC says that those limits reflected guidance published by the Australian and New Zealand Environment Council for minimisation of “annoyance” due to blasting overpressure and ground vibration, with noise sensitive sites referred to as “residences, hospitals, schools etc”.
The operating conditions in the EPL, set out in Chapter 4, relevantly, include the following:
O1 Activities must be carried out in a competent manner
O1.1 Licensed activities must be carried out in a competent manner. This includes:
a) the processing, handling, movement and storage of materials and substances used to carry out the activity; and
b) the treatment, storage, processing, reprocessing, transport and disposal of waste generated by the activity.
O2 Maintenance of plan and equipment
O2.1 All plant and equipment installed at the premises or used in connection with the licensed activity:
a) must be maintained in a proper and efficient condition; and
b) must be operated in a proper and efficient manner.
Condition O3 deals with dust. Condition O4, headed “Other operating conditions”, includes Condition O4.1 which prohibits the emission of offensive blast fume from the premises.
Chapter 5 deals with “Monitoring and Recording Conditions”, which include Condition M7.1 which provides that, to determine compliance with Conditions L4.1-L4.4, airblast overpressure and ground vibration levels must be measured and electronically recorded for monitoring points 31-34 for the specified parameters in the table there set out, using “units of measure, sampling method and sample” at the frequency there specified.
As noted above, under Condition 25 of the Project Approval, there was a requirement for the preparation and implementation of a blast management plan. The Blast Management Plan (BLMP) that was prepared by MCC details the measures to be implemented at the Mine to ensure that the best management practices are employed and that there is compliance with the relevant conditions of the Project Approval.
The BLMP contains, relevantly, the following:
Clause 1.1:
…
Land-use in the local area is dominated by agricultural operations and open cut mining, with rural residential holdings mainly located to the north and west of the Project. … Various coal mines exist within close proximity to the project including Boggabri Coal Mine, Tarrawonga Coal Mine and Goonbri Exploration Lease located to the southeast of the project boundary …
Clause 1.4:
The objectives of this BMLP are to:
• Ensure that operational blast vibration and overpressure from activities associated with the MCCM are minimised;
• Maintain compliance with those conditions of the Project Approval, Environment Protection Licence 20221 (EPL 20221) and relevant legislation relating to blasting …
Clause 2.0 STATUTORY REQUIREMENTS AND COMMITMENTS:
This BLMP has been prepared to fulfil the requirements of relevant legislation, approval conditions, EPL conditions, EA commitments, and, relevant standards and guidelines.
Clause 2.3:
2.3 Environment Protection Licence
MCC is the licence holder of EPL 20221 …. The EPL 20221 conditions relevant to blasting are presented below [there referring to the L4 Blasting conditions].
[B]est practice control of ground vibration, overpressure, fly rock, dust and blast fume will be achieved through procedures and safeguards including:
∙ Comply with the relevant internal procedural documents prior to the commencement of any blast;
∙ Best practice blast design and drill and blast practice in accordance with Australian Standard AS 2187.2 2006 ‘Storage and Use of Explosives’;
…
∙ Boggabri Coal, Tarrawonga Coal and Maules Creek Coal (BTM Complex) Blast Management Strategy (BLMS) which addresses management of the cumulative blasting impacts of the adjacent mines.
Clause 2.4 of the BLMP also includes, as one of the guidelines and standards applicable to blasting at the Mine, the Australian and New Zealand Environment Council (1990) “Technical Basis for Guidelines to Minimise Annoyance due to Blasting Overpressure and Ground Vibration” (ANZEC guidelines).
Clause 3.1 of the BLMP provides as follows in relation to the blast design:
3.1 Blast Design
Blasts will be designed to meet best management practices to ensure the blasting requirements in Schedule 3, Condition 18 and 23 of PA 10_0138 are met.
…
To ensure compliance with regulatory limits, and to minimise the likelihood of significant blast impacts to neighbouring receivers, all blast designs will consider:
…
• Expected offsite vibration levels calculated based on conservative assumptions, which will be reviewed with blast history;
…
• The adequacy of stemming and suitability of material used;
• Appropriate initiation delays and detonation systems;
…
• Blast hole loading procedures …
Noise (the audible part of the air vibration spectrum) and airblast (the remaining sub-audible part of the air vibration spectrum) generation can be controlled by ensuring that all, or nearly all, of the explosion energy is consumed in fragmenting and displacing the overburden by the time the gases vent (via the broken burden rock and/or ejected stemming material) into the atmosphere. Blast events are designed to meet the relevant overpressure and ground vibration criteria.
• Where practicable, the blast face is orientated away from or at an oblique angle to nearby residences;
• Blast hole spacing is implemented in accordance with blast design;
• The burden distance and stemming length are carefully selected and then implemented precisely;
• Appropriate materials (e.g. 20 mm aggregates) are used for stemming;
• Charges detonate in the correct sequence and with inter-row delays that provide good progressive release of burden; [this is the fifth dot point in cl 3.3.5 of the BLMP to which reference is made in the principal judgment]
• The maximum weight of explosive detonated in a given delay period (the Maximum Instantaneous Charge – MIC) is limited to conservative and proven levels; [the sixth dot point in cl 3.3.5 of the BLMP]
• Conducting blasting during suitable meteorological conditions as described in Sections 3.2 and 3.3 [together, the seven dot points in cl 3.3.5 of the BLMP].
MCC had conducted previous blasts in the Herndale area which resulted in poor fragmentation, because of caprock located in the seam, leading to poor digging conditions and safety risks to workers.
Relevantly, in November 2019, a fragmentation issue had been identified (principal judgment at [33]). In 2019, Mr Jorge Moraga, the Mine’s general manager, contacted Dr Cameron McKenzie, an expert in mine blasting, in relation to the problems experienced in achieving adequate fragmentation (principal judgment at [33]). In December 2019, Dr McKenzie produced a report, after attending the Mine over three days, entitled “Review of Blasting Practices at Maules Creek Coal Mine” (Dr McKenzie’s 2019 Report). Dr McKenzie’s 2019 Report included options of reducing stemming length (the recommendation there being in the range of 3 to 3.5m) and adopting fast initiation timing to address the fragmentation problems (principal judgment at [34]). (MCC’s Design Standard dated 16 October 2019 specified a stemming length of 3.5m – see principal judgment at [35]). Stemming is “the amount of inert material which sits in the blast hole above the explosive blast material” and “stemming length” is “the distance between the top of the explosive charge and the surface of the blast that is usually filled with stemming material” (see principal judgment at [35]; 04/06/26; T 4.16).
The fragmentation problems experienced in 2019 were in the “coarse upper flitch of the interburden of the Velyama seam, as opposed to the coarse fragmentation of the overburden on the Herndale seam” (the latter being the issue which led to the subsequent retainer of Dr McKenzie in August 2020) (principal judgment at [36]).
The primary judge noted that none of Dr McKenzie’s then (2019) recommendations had been implemented as at August 2020 (principal judgment at [299]). Pausing here, MCC in its reply submissions notes in relation to this finding that Dr McKenzie gave evidence clarifying that “other than the satellite or the stamp hole drilling, there wasn’t anything they could have done, except six and 12 months beforehand, by pre-drilling or pre-conditioning that scene”.
On 7 August 2020, MCC carried out an overburden blast in a location adjacent to the location of the Blast (the previous blast). The previous blast was carried out at the Herndale seam after excavation in the Herndale area had restarted for the first time in two years (principal judgment at [39]). The previous blast used a stemming length of 4.0m.
The primary judge noted that after the previous blast, in the period between 7 and 13 August 2020, “it became evident when mine workers were digging and loading the ‘muck pile’ that the previous blast had not achieved adequate fragmentation” (principal judgment at [40]). (Muck pile refers to broken rock.)
Prior to the previous blast, on or about 4 August 2020, design for the Blast (which was originally scheduled for 19 August 2020) commenced (principal judgment at [42]). Mr Matthew Williams, MCC’s senior drill and blast engineer designed the drill pattern for the Blast with the assistance of Mr Lee Butler, a graduate mining engineer.
On or about 6 August 2020, the drilling of blast holes for the Blast began. Drilling of blast holes ended on or about 16 August 2020 ([8]; principal judgment at [44]).
The issue of inadequate fragmentation achieved by the previous blast, and the work health and safety risks it posed, was raised at a meeting of mine operators on 13 August 2020 (principal judgment at [47]; [279]-[281]) (i.e., after drilling of blast holes for the Blast had already commenced). At the hearing, Mr Ryan Gomez (the technical services superintendent) estimated that 30%-50% of the drill holes for the Blast had already been drilled by 13 August 2020 (see principal judgment at [47]).
On 14 August 2020, Dr McKenzie (described by the primary judge as a “highly accredited expert”) was engaged to provide advice in relation to what MCC could do in the time available before the scheduled blast to minimise the size of individual pieces of the caprock that would remain after the Blast and improve fragmentation. Mr Gomez advised Dr McKenzie that “the pattern is already drilled or almost completed so there is no room to make any adjustments”. The primary judge noted that, as a result of the late stage of Dr McKenzie’s engagement, the only design aspects that could be controlled to change the fragmentation outcome of the Blast were to the stemming length and to the timing of the charge (principal judgment at [48]; [281]-[283]). (As to this last finding, in its reply submissions MCC says that it was after a work health and safety issue was raised six days before the Blast was scheduled that Dr McKenzie was engaged to advise on minimising caprock and improving fragmentation, while still ensuring that overpressure and vibration complied with the EPL and other approvals.) The timing refers to the rapidity of the sequential detonation of the explosive charges from one drill hole to the next and/or from one line of drill holes to the next.
In an email to Dr McKenzie, copied to Mr Gomez, on 14 August 2020, Mr Williams said that they were “looking at reducing stem heights from 4.0m to 3.0m and using electronic timing to help” (see principal judgment at [50]). The suggested reduction in stemming length was consistent with Dr McKenzie’s 2019 recommendation.
Between 14 and 18 August 2020, Dr McKenzie undertook predictive modelling of changes to the stemming and timing of the Blast to minimise airblast overpressure and vibration resulting from the Blast at the EPL monitoring points in the north-east of the Mine (principal judgment at [283]-[284]). Dr McKenzie was provided with a copy of the drill map and design for the Blast and used data from the previous blast (on 7 August 2020) to make predictions for the Blast.
Dr McKenzie emailed Mr Williams (copying Mr Gomez and Mr Butler) at 10.02pm on 14 August 2020, saying that he had spent “some depressing time on the modelling of this shot”. In that email, Dr McKenzie identified the following three options: “1. We can use fast timing and more conventional stemming lengths; 2. We can use 3 m stemming lengths and conventional timing; 3. We can try 3 m stemming and fast timing, and use the result as a learning opportunity, since I have doubts about the ability to reliably model the impacts on the data I have available”. Dr McKenzie explained the use of the word “depressing” as being “because it tells me that the overpressure impacts may be excessive with just 2.5 metres of stemming, which is what I’d like to recommend. In fact, it says that even with 3 metres, we may be pushing our luck in combination with fast timing”.
In re-examination, Dr McKenzie explained that when he undertook his modelling he was hoping that he would be able to show MCC that it “could use the fastest possible timing, minimal amount of stemming and, therefore, the greatest possibility of getting acceptable or good results and minimising oversight. [Soil oversize, referring to the fragment size of the blasted caprock]. So after such a lengthy period of modelling, if I can’t come up with the answer I wanted, then I’m a little disappointed, depressed” (the primary judge referred to this at [283] of the principal judgment).
In cross examination, Dr McKenzie agreed that the stemming length for the blast holes of 3.0m deviated from MCC’s approved design standard and from what a normal standard would be but said that the whole blast was being done differently. Dr McKenzie did not see that the design of the blast holes would support “any claim of a lack of competence”. Dr McKenzie said that “[i]f the blast had been designed for 5 metres of stemming, but was implement[ed] with 3 that would be incompetent. As far as I can see, it was designed for a stemming length of 3 and that’s what was implemented following a process of assessment and best possible means of evaluating outcomes. So I can’t see how what they did could be called incompetent”.
In his email of 14 August 2020, Dr McKenzie said that his modelling showed that “if we go to the fast timing, then we probably should be looking at 3.5 metres of stemming”. However, as noted, fast stemming in conjunction with 3m stemming was one of the options Dr McKenzie identified. Dr McKenzie was not sure “how much confidence to have in the modelling” as he had never had to model impacts at such extreme distances before (referred to in the principal judgment at [300]).
Between 15 August and 19 August 2020, the blast holes were loaded ([9]). A Blast Clearance Plan dated 20 August 2020 showed the location of the Blast at the Mine relative to the exclusion zones and sentries in place at the time of the Blast ([11]; Tab 3 to the Statement of Agreed Facts).
On 17 August 2020, Mr Butler took over the role of finalising the charge design for the Blast from Mr Williams who was on leave (principal judgment at [57]). Over the course of that day, Mr Butler had various communications with Dr McKenzie to finalise the blast design (principal judgment at [58]-[64]). MCC says that there was no issue as to the design of MCC’s Standard Design Plan; rather, it was the departure from it that is the subject of criticism by EPA’s expert, Dr Cameron (see below).
At 11.34am on 17 August 2020, Dr McKenzie emailed Mr Butler regarding the appropriate clearance distance for the Blast, taking into account both fast timing and reduced stemming. Dr McKenzie suggested a 700m personnel clearance distance and noted that “this blast is a departure from standard blasting practice at Maules Creek” ([60]; [284] principal judgment).
At some stage between 14 and 18 August 2020, Mr Gomez asked Dr McKenzie to carry out modelling on a conservative basis to meet the EPL 95 percentile limits, not merely the EPL absolute limits. The primary judge noted that Mr Gomez described the approach as having “two layers of conservatism” (principal judgment at [284]).
Dr McKenzie’s modelling (based on fast timing and 3.0m stemming) predicted airblast overpressure levels at each of the four EPL monitoring points as set out in the table at [66] of the principal judgment (which included statistics as to the actual overpressure of the Blast). MCC points to the accuracy of Dr McKenzie’s modelling against the result from the Blast and to the fact (which the primary judge accepted was common ground – see [287]) that the actual results were all within the specified limits in the EPL (T 5.14).
Mr David Welch, who was the shotfirer for the Blast, gave evidence (to which the primary judge referred at [78]-[79] of the principal judgment) that he had been concerned about the fast timing being used and had raised those concerns with the engineers (principal judgment at [295]-[297]).
As adverted to above, the Blast was originally scheduled for 19 August 2020 at 3.30pm but was rescheduled (due to high winds on 19 August 2020) to 20 August 2020 at 10.30am when low winds were predicted ([12]).
The primary judge found that notification in advance was given to Boggabri Coal Mine of the Blast (see [77] of the principal judgment). There is no challenge to this finding.
On Thursday, 20 August 2020, at 10.22am, MCC fired the Blast (comprising Shot A and Shot B) along part of the Herndale seam. This involved the loading of 1,197 blast holes with a total of 896,256kg of explosives. MCC’s blast design had provided for the total loading of 854,825kg of explosives. Thus there was a variance of around 41,000kg, as confirmed in an email dated 31 August 2020 from Ms Emma Bulkeley, the environmental superintendent at Whitehaven Coal, to Mr Simon Lund, EPA senior investigator. (The difference between the amount of explosives loaded and the amount of explosives provided for in the blast design raises the overloading issue the subject of one of the four charges brought against MCC.)
After the Blast, airblast overpressure and vibration levels were recorded by blast and dam monitors at the Mine in the north-west ([13]). As already noted, the actual results for overpressure and vibration at each of the four EPL monitoring locations (BM1, BM2, BM3 and BM4) were within the limits required under Conditions L4.1 and L4.3 of the EPL ([14]) (see [84]; [345] of the principal judgment).
As well as the blast monitor records, there were readings from two blast monitors at the Tarrawonga Coal Mine, the Coomalagah monitor (located approximately 12.5km south-east of the Blast) and the Tarrawonga monitor (located approximately 9.7km south of the Blast); by blast monitors at two private residences in Wilberoi East (located south of the Blast) and Goonbri East (located east of the Blast); and at the Boggabri “trigger unit” (located south of the Blast) which recorded airblast overpressure and vibration levels after the Blast. The airblast overpressure and vibration levels recorded by the two blast monitors at the Tarrawonga Coal Mine and Coomalagah monitor are set out in an email from Ecotech to Mr Sebastien Moreno of Whitehaven Coal and reproduced at [288] of the principal judgment. The results from the Wilberoi East and Goonbri East monitors and at the Boggabri trigger unit are summarised in a table reproduced in the principal judgment at [289]. None of those monitoring points were specified monitoring points for the purposes of the EPL limit conditions and, as MCC points out, no evidence was adduced by EPA as to the reliability or accuracy of these other blast monitors.
By summonses filed on 16 August 2021 (and in the case of the first summons, amended on 13 December 2021), EPA (as the prosecuting authority) brought five charges with respect to the Blast. Charge 2 (Summons 2021/234555) was withdrawn and dismissed prior to the principal judgment.
Charges 1, 3 and 4 (brought by Summonses 2021/234554, 2021/234556 and 2021/234557, respectively) are charges for offences against s 64(1) of the POEO Act, each for an alleged contravention of Condition O1.1 of the EPL (that MCC designed and carried out the Blast otherwise than in a competent manner in contravention of that condition in the specific respects particularised in the respective summonses). Those are referred to as the timing charge, the stemming length charge and the overloading charge.
In relation to the timing charge, it was alleged that MCC programmed the electronic initiation system for the Blast with a burden relief time of 0.8 to 1.5ms/m, which did not provide good progressive release of burden as required under cl 3.3.5 of the BLMP. The programming of the timing in this way was referred to as “fast timing”. Burden relief time refers to the interval between detonations of charges in the drill holes, to allow caprock overburden to be slightly displaced by one explosive charge before the next detonation is initiated.
In relation to the stemming length charge, it was alleged that the utilisation of a 3.0m stemming length deviated from MCC’s Approved Design Standard, which specified a stemming length of 3.5m (under the heading “Loading Parameters”).
In relation to the overloading charge, it was alleged that MCC overloaded approximately 19% of the blast holes with amounts of explosives that were more than 10% of the amount of explosives prescribed in the design for the Blast, which was in contravention of MCC’s procedure for loading and stemming the blast holes.
Charge 5 (Summons 2021/234558) alleged a breach of s 140 of the POEO Act for the emission of noise (particularised as the failure of MCC to deal with materials in a proper and efficient manner). This will be referred to (unsurprisingly) as the noise charge. It was alleged that between 4 and 20 August 2020, MCC, as the occupier of the Licensed Premises, dealt with materials in or on the Premises in such a manner as to cause the emission of noise from the Licensed Premises and that the noise so caused was caused by its failure to deal with those materials in a proper or efficient manner.
Chapter 3 of the POEO Act is concerned with environment protection licences. Pursuant to Part 3.2, an environment protection licence is required for certain scheduled activities, of which there is no dispute that the operation of the Mine was one. Pursuant to s 50(2) of the POEO Act, an environment protection licence must not be granted or varied unless development consent has been granted for the controlled development. Part 3.3 of the POEO Act is concerned with the issuing of licences. Part 3.4 is concerned with licence conditions.
Pursuant to s 63(1) of the POEO Act, a licence may be issued subject to conditions, or unconditionally. Pursuant to s 64 of the POEO Act, if a condition of a licence is contravened by any person, each holder of the licence is guilty of an offence. As at the date of the alleged offences, s 64 of the POEO Act (which has subsequently been amended to provide for higher penalties) provided, relevantly, as follows:
64 Failure to comply with condition
(1) Offence If any condition of a licence is contravened by any person, each holder of the licence is guilty of an offence.
Maximum penalty—
(a) in the case of a corporation—$1,000,000 and, in the case of a continuing offence, a further penalty of $120,000 for each day the offence continues, or
(b) in the case of an individual - $250,000 and, in the case of a continuing offence, a further penalty of $60,000 for each day the offence continues.
Note —An offence against subsection (1) committed by a corporation is an offence attracting special executive liability for a director or other person involved in the management of the corporation—see section 169.
(2) Defence The holder of a licence is not guilty of an offence against this section if the holder establishes that—
(a) the contravention of the condition was caused by another person, and
(b) that other person was not associated with the holder at the time the condition was contravened, and
(c) the holder took all reasonable steps to prevent the contravention of the condition.
A person is associated with the holder for the purposes of paragraph (b) (but without limiting any other circumstances of association) if the person is an employee, agent, licensee, contractor or sub-contractor of the holder.
Section 66 of the POEO Act contemplates that conditions of a licence may require monitoring by the holder of the licence of the activity or work authorised.
Section 120 of the POEO Act deals with water pollution (and MCC notes that there is a defence to an offence under s 120, if the activity was regulated by a licence and there is compliance with the conditions of the licence – see s 122). Sections 124 and 125 deals with air pollution (s 126, dealing with materials, refers (similarly to s 140 in relation to noise) to “proper and efficient manner”). Section 129 deals with emission of offensive odour (with an exemption where there is compliance with a licence).
Section 140 of the POEO Act provides as follows:
140 Dealing with materials
(1) The occupier of any premises who deals with materials in or on premises in such a manner as to cause the emission of noise from those premises is guilty of an offence if the noise so caused, or any part of it, is caused by the occupier’s failure to deal with those materials in a proper and efficient manner.
(2) In this section –
deal with materials means process, handle, move, store or dispose of the materials.
materials includes raw materials, materials in the process of manufacture, manufactured materials, by-products, or waste materials.
EPA subpoenaed a number of employees of, or consultants to, MCC, (Dr McKenzie, Mr Gomez, Mr Williams, Mr Welch and Mr Moraga) to attend and give evidence at the hearing and also called evidence from Mr Jonathon Byrnes and Ms Rebecca Severin, both operators at the Boggabri Coal Mine at the date of the Blast, Ms Jasmine Walden, an EPA investigator and Mr Lund. They were examined (principal judgment at [140]) as to the process leading up to the Blast and its immediate aftermath. EPA also called a number of residents from the local area including Ms Druce and employees of the nearby Boggabri Coal Mine, reading seven affidavits from those witnesses (see principal judgment at [136]). Relevant evidence provided by the lay witnesses is summarised by the primary judge in the principal judgment at [141]-[194].
Relevantly, as to the impact of the Blast, Mr Byrnes, deposed in his affidavit sworn 27 July 2021 that “at about 1020 hours on Thursday 20 August 2020, I was present at the go line at Boggabri Coal Mine … As I was walking across the go-line I pulled my ear plugs out and I heard this almighty pop, like a gun shot going off right next to my head”. Mr Byrnes said that he “felt a shake in the ground … looked over and …. saw a blast had gone off at [the mine]”. Mr Byrnes deposed that “[i]mmediately after the blast, I felt pressure in my ear. This lasted for 3 or 4 seconds. After that I had ringing in my ears” and that he “went to see the First Aid Staff … [Ms Severin] and I were then taken into Boggabri Hospital for assessment”. Mr Byrnes deposed that at Boggabri Hospital he “did not have a burst ear drum”. On 29 September 2020, Mr Byrnes completed a worker’s injury claim form with “Coal Mines Insurance”. (For reference I note that the “Go line” was explained by Mr Byrnes during the EPA investigation as the line “where we park all the trucks up for where our crib hut is”.)
Ms Severin deposed in her affidavit sworn 2 August 2021 that, on 20 August 2020, she was sitting outside the crib hut when she heard the first explosion. Ms Severin deposed that “[t]he pain was immediate, and I instantly grabbed my ear”. Ms Severin deposed that “the blast I heard on 20 August 2020 was different to anything I had experienced before. This one was so loud and shook the ground”.
As to expert evidence, EPA relied on the evidence of Dr Alan Cameron, whose experience and background in mining engineering is explained by the primary judge at [195] of the principal judgment. EPA read three affidavits of Dr Cameron: the first, affirmed 4 November 2021, annexing his report dated 4 November 2021; the second, affirmed 9 December 2022 annexing his supplementary report dated 24 May 2022; and the third, also affirmed 9 December 2022, annexing his further supplementary opinion dated 9 December 2022.
In his first report dated 4 November 2021, Dr Cameron sought to identify in relation to each of the timing charge, the stemming charge and the overloading charge, why he considered that Condition O1.1 of the EPL was not met. Dr Cameron opined as follows:
Executive Summary
….
2.1.7 In my opinion, [the Blast] was not designed in a competent manner because:
2.1.7.1 the impact of airblast overpressure on personnel at Boggabri Coal Mine was not considered;
2.1.7.2 changes made to the design compared to the Design Standard did not comply with the BMP or BLAST PLANNING, DESIGN & RECORD KEEPING procedure for managing airblast overpressure; and
2.1.7.3 a Management of Change process and/or Risk Assessment was not carried out when approved procedures and design criteria were not followed.
…
2.2.1 The minimum standard of competence expected for carrying out the blast is to achieve designed parameters within +/-10% tolerance. Evidence of this is Maules WHC-PRO-OC-BLAST PLANNING, DESIGN & RECORD KEEPING Procedure “The design objective is to deliver a drill pattern design within 10% of the target design parameters.”, as well as letter from Maules -FINAL MCM response to EPA notice 1603240, 21 January, 2021 “Within the procedure to deliver a drill pattern design which includes an acceptable range for the loading of explosives into the drilled holes within a design volume and +/- 10% tolerance, consistent with standard industry practice.” [emphasis in original].
…
2.2.8 In my opinion, the blast was not carried out competently because the loading procedure resulted in a large number of holes (19%) being overloaded by more than 10%.
2.2.9 In my opinion, overloading of some of the blastholes would not have caused the increased airblast overpressure from the blast because the majority of the airblast would have been due to the blast design which reduced the stemming length and utilised “fast timing”.
…
2.3.1 I have not seen any evidence that the operation of the plant and equipment used for blast HRN_08_39_OB was in an improper or inefficient manner contributing to the high level of noise/airblast overpressure.
…
2.6.5 In my opinion, the high level of noise/airblast overpressure from blast HRN_08_39_OB was the result of a failure to deal with explosives in a proper and efficient manner. The combination of reduced stemming length and fast timing resulted in the premature release of a large amount of explosive energy, in the form of high-pressure gases, into the atmosphere as well as fast movement of the surface of the blast causing a large airblast to radiate out from the blast area and a large waste of explosive energy.
…
Opinion
1.17 In my opinion, [the Blast] was not designed in a competent manner because:
• it did not consider the potential impact on employees or facilities at the adjacent Boggabri Coal Mine or Tarrawonga Coal Mine. Two employees at Boggabri Coal Mine were injured by the noise/airblast overpressure from the blast and they were much closer to the blast than the residences where the blast monitors (BM1, BM2, BM3 & BM4) were located and the modelling was focused on.
5.1.2 Response
In my opinion MCC carried out the blast in a competent manner and the blast design provided good progressive relief of the confined rock as it was planned. Six of the seven objectives outlined in section 3.3.5 of the Blast Management Plan were met by MCC. However, the sixth objective that reads
“Charges detonate in the correct sequence and with inter-row delays that provide good progressive release of burden;”
is irrelevant to blast HRN_08_39_OB in that the blast was not designed as a bench blast in which time delayed blast holes progressive initiate laterally (e.g., horizontally) in the drilled burden direction. Rather, blast HRN_08_39_OB was designed as a vertically “lifting” (often referred to as a “sinking” blast) to achieve good fragmentation of the surface hard caprock. Hence, the allegation in Charge 1 that a delay timing of 0.8-1.5ms per meter (ms/m) of burden did not provide good progressive burden (lateral) relief time is based on the false premise the blast HRN-08-39-OB was a bench blast which it was not. In my opinion, the concept of progressive release of burden to form the basis of an incompetent blast is inappropriate. MCC indeed utilized an appropriate fast delay timing designed to achieve good progressive vertical release required for the lifting blast. Modifying bench blasting to create a lifting cut starting in the centre of the drill pattern is not precluded in the Drill and Blast Design Standard Fixed Pattern.
…
5.3.2 Response
I do not agree that the 3m stem length caused blast HRN_08_39_OB to be carried out in an incompetent manner in that it deviated from the Approved Design Standard. In fact, the change in stem length from 3.5m to 3m was properly planned and documented using the required document form indicating a change in design parameters. Therefore, the stem length change was properly documented in advance of blast HRN_08_39_OB planning and included modeling of fragmentation, ground vibrations and air overpressure by blast consultant Cameron McKenzie and MCC’s personnel. In my opinion, MCC carried out the blast in a competent manner.
…
5.3.3.2 The deviation from the approved Drill and Blast Design Standard Fixed Pattern to reduce the stem length from 3.5m to 3.0m was properly documented and approved among all MCC’s employees involved in drilling and blasting and the blasting consultant. Mr McKenzie in the preparation of blast HRN_08_39_OB. The level of communication and decision making was appropriate and does not represent incompetency in decision making to justify the use of 3m stemming to achieve the objectives of improved rock fragmentation and improved productivity and mine labor safety. The inclusion of Mr. Cameron McKenzie as a world-renowned blasting expert to assist in the blast design modelling utilizing the 3m stem length demonstrates a high level of competency in the blast design process.
…
5.4.2 Response
MCC did not fail to carry out the subject blast in a competent manner by reason of overloading 19% of the blast holes by 10% of the planned explosives charge weight. I find that the negative connotation of the phrase “overloading explosives in blast holes” to be a misrepresentation of facts that actually control explosive charge weights loaded into drilled holes by inferring the quantities of explosives loaded into blast holes were over and above that which was deemed appropriate, planned, or in accordance with MCC loading and stemming policy. This was not the case for blast HRN_08_39_OB. I therefore reject the concept of “overloading” blast holes that is misapplied to this blast as the basis for incompetent blasting.
Furthermore, the 10% variance applies only to drill pattern and loading parameters and not to charge weights loaded into blast holes. The quantities of explosives loaded into blastholes relate directly to, or are a calculated quantity of, drill pattern (drilled burden, spacing, drill holes diameter and hole depth) and loading parameters (stem length and powder factor) set forth in the Standard Fixed Pattern. In the case of blast HRN_08_39_OB, the approved modified stem length of 3m was a design parameter that did not deviate and was set as a constant. Loaded explosives charge weights are not a design parameter. [Emphasis in original].
I contend that MCC’s personnel followed procedures for loading and stemming holes in a competent manner according to written policies. The + 10% variance alluded to herein does not apply to explosives weights loaded into the holes, as Charge 4 alleges. Rather, the variance applies to design parameters defining the drilled hole volume tempered by unforeseen and often adverse geological conditions, variations in ground surface elevation, and drilling rig performance that can enlarge holes beyond that which was planned. These variable field conditions are normal and expected and fluctuate from blast holes to blast hole for all blasting operations. As such, explosive quantities loaded into blast holes can vary on a design powder factor.
Blast HRN_08_39_OB was designed by Mr. McKenzie to achieve a 0.726kg/cubic meter (m3) powder factor whereas the Standard Fixed Pattern design is set at 0.72 kg/cubic meter. Calculations performed herein show that the actual loading for all holes in the aggregate resulted in an as-built powder factor of 0.744kg/m3 or a 2.5% increase over design and well within the 10% allowance. This clearly demonstrates that blast HRN_08_39_OB was not overloaded and I reject the EPA’s charge of ‘overloading’ as a basis to show incompetent blasting.
In my opinion, MCC’s personnel responsible for designing and implementing field loading and stemming did not contravene loading and stemming practice for HRN_08_39_OB and are not in violation of loading and stemming blast hole procedures. The blast was designed in a competent manner in that all design parameters noted on the Standard fixed Pattern along with the approved 3m stem length did not deviate in excess of 10%.
…
5.5.2 Response
MCC did not deal with explosive materials in an improper and inefficient manner. The dealing of explosive materials and the manner in which the blast was designed with a 3m stem length and fast delay timing for the intended purpose of improving rock fragmentation was appropriate and achieved the objective of improved fragmentation without exceeding air overpressure and vibration limits at the monitoring locations established in MCC Environment Protection Licence 20221.
Referring to Summons 2021/234558, I reject the notion that the explosive energy available for rock fragmentation was reduced by transferring excessive energy into upward-directed noise. Post-blast analysis of the fragmentation and digging rates for this blast indicated improvements as expected. Therefore the explosive energy was efficiently designed and utilized to fragment the rock as modeled by Mr. McKenzie.
In addition, I reject the claim found in the Summons under Item 1 part d. that reads
“d. Emission of noise from the Premises:
The manner of dealing with the Explosives resulted in an explosion that caused the emission of noise from the Premises in the form of sound and vibrations resulting from airblast overpressure.”
whereby the noise was improper and inefficient. Indeed, it is a normal and expected fact that all mine blasting generates noise from rapid rock movement causing overpressure into the air along with ground vibrations. Noise in itself is not an indicator of improper or inefficient use of explosives.
In the case of the lifting blast HRN_08_39_OB, the upward movement of the caprock was the source of this noise whereas for a bench blast it is the lateral displacement of the open face burden rock. Both ground vibrations and air overpressures were modeled by a third-party blast consultant, Mr. Cameron McKenzie, who adjusted the distribution of time delays to assure good fragmentation and compliance with regulated airblast and vibration standards. As a result, there were no exceedances of noise or vibrations at the EPA approved MCC monitoring stations.
Post-blast complaints received by MCC from two receptors (not licensed to MCC) indicated that air overpressures were higher than expected in a preferential direction. In reviewing weather conditions on 20 August 2020, it was concluded that the air overpressures were amplified in the southeast direction away from the blast and this direction was consistent with the ambient wind direction at the time of the blast. As such, the decrease in air overpressure amplitudes did not occur in a uniform, spherically expanding wave shape with distance as theory predicts. Rather air overpressures were amplified in the southeast direction away from the blast relative to amplitudes measured in all other directions.
It is my opinion that ambient wind at the time of the blast was the most likely cause of higher-than-expected noise and post-blast complaints received by MCC from three receptors. The fact that MCC licensed monitoring locations recorded air overpressures that did not exceed regulated limits attests to the fact that the manner in which MCC dealt with explosive materials in preparing for and conducting blast HRNO8_39_OB was proper and efficient.
MCC tendered the “Blast Management Strategy for Boggabri-Tarrawonga-Maules Creek Complex” dated April 2020 (BMS BTM) (Ex 1).
The BMS BTM was summarised at [373] and [374] of the principal judgment: its purpose being to monitor and collectively manage cumulative blasting impacts (cl [1.1]). The approval requirements of each of the mines are identified in Table 1.2. The document sets out the overarching strategy for the management of blasting within the BTM precinct. The BMS BTM noted that the mines of the BTM complex already had comprehensive blast management systems in place and that the existing blast monitoring network will continue to be used (the locations of monitors within the existing blast network monitoring being shown in figure 1.1) (cl [5.1]); that each mine had developed a BLMP that outlines a consistent approach for the scheduling of blasts in consultation with other mines in the BTM complex and blast notifications will be provided no later than a day prior to a proposed blast (cl [6.1]); and that, if the monitoring results of a blast identify an exceedance of the Mine’s relevant criteria, written notification of the exceedance will be provided to the other mines within the BTM complex, in addition to any investigation undertaken according to the respective mine’s BLMP (cl [7.1]). MCC points out that the BMS BTM contemplates that there could be an exceedance of the relevant criteria and deals with this by requiring notification to the other mines (referring also to the undertaking of an investigation in accordance with the relevant mine’s BLMP).
The primary judge considered in detail the lay and expert evidence of the events relating to the Blast and the Blast itself. It is not necessary here to recount this given the background set out above.
The primary judge found (at [41] of the principal judgment) that achieving adequate fragmentation of rock is a key objective of mine blasting, it being an objective directed to both the safety of workers and the efficient commercial operation of the Mine by enabling an efficient dig rate. The primary judge noted that, if capping rock is not adequately fragmented, workers operating certain plants and equipment at the Mine are exposed to potential injuries when large heavy pieces of rock are dug up and loaded into haul trucks, and the process of extraction is more time-consuming and less cost-efficient.
The primary judge described the background to, and reason for, the Blast, including the engagement by MCC of its consultant expert (Dr McKenzie) to conduct predictive modelling of a blast that would address the capping rock issue, and predict flyrock, vibration and airblast overpressure that would occur at four monitoring locations specifically nominated in the EPL (see principal judgment from [33]-[41]). At [45] of the principal judgment, the primary judge found that the Blast had been designed and implemented to address the difficulties in achieving adequate fragmentation of capping rock in the previous blast (carried out on 7 August 2020).
The primary judge found, beyond reasonable doubt, that on 14 August 2020 Dr McKenzie had expressed considerable concern that, after modelling, he could not come up with the answer he wanted (principal judgment at [298]). The primary judge accepted EPA’s submission that Dr McKenzie could not resolve all the uncertainties about the impact of the Blast, where the Blast was a departure from standard blasting practice at the Mine (principal judgment at [301]).
As noted earlier, the primary judge found that the Boggabri Coal Mine was notified in advance of the Blast scheduled to take place on 20 August 2020 ([77] of the principal judgment). However, the primary judge also found that it was established beyond reasonable doubt that MCC failed to consider personnel at the Boggabri Coal Mine (principal judgment at [290]). At [61], the primary judge had earlier recorded that it was not in dispute that Dr McKenzie was not asked to consider the potential impact of the Blast on personnel at the adjacent Boggabri Coal Mine (and see principal judgment at [284]). As I read the reasons, the finding that MCC failed to consider personnel at the Boggabri Coal Mine thus relates to the fact that Dr McKenzie was not asked to consider this issue in his modelling. The primary judge found that the failure to consider personnel at the Boggabri Coal Mine meant that the design of the Blast did not meet an overriding provision of the Australian Standard (principal judgment at [290]).
The primary judge accepted that the Blast had “considerable impact” on lay witnesses, including Mr Byrnes and Ms Severin, (principal judgment at [291]). In this regard, the primary judge accepted the evidence of lay witnesses, including local residents who experienced the Blast (principal judgment at [293]-[294]).
As to the expert witnesses, the primary judge found as follows:
303 I find that Dr Aimone-Martin was frequently not responsive to the prosecutor’s questions, in particular in relation to the overloading charge, requiring the Court to direct her to answer questions. At times, Dr Aimone-Martin either misunderstood or preferred not to answer the questions put to her. In terms of relevant expertise, Dr Aimone-Martin has primarily worked in the United States, and only on one project in Australia at Hazelwood power station in 2020-2021. That project did not raise issues similar to those raised in these proceedings. Since 2009, she has experience in relation to only two projects involving open cut coal mines.
304 Dr Cameron had significantly greater experience of mining in Australia and of blasts of the kind conducted at the mine on 20 August 2020, made concessions where appropriate, was a generally non-combative witness disposed to assisting the Court where he could, and gave all of his evidence in good faith. That is not to suggest that Dr Aimone-Martin was not a witness of good faith, however her general demeanour and very limited experience in Australia and in relation to open cut coal mines has led me to prefer the evidence of Dr Cameron.
As to the construction of the EPL, the primary judge proceeded on the basis that, as a statutory instrument within the meaning of s 3(1) of the Interpretation Act 1987 (NSW), the EPL must be construed in accordance with ordinary principles of statutory construction, noting that Condition O1.1 must be construed having regard to text, context and purpose (principal judgment at [319]).
EPA had submitted to the primary judge that in the expression “in a competent manner”, “competent” meant to “undertake a task with the necessary and satisfactory level of skill” and “competent manner” required the relevant activities to be carried out with necessary and satisfactory levels; and that, in the context of the EPL, the condition must be considered alongside environmental risk and the nature of the activities. EPA’s contention was that compliance with Condition L4 of the EPL (relating to blasting) did not satisfy the requirement in Condition O1.1 to carry out activities in a competent manner for four reasons: first, because Condition O1.1 focuses on the way the licensed activities are carried out; second, because the Condition must be given work to do in its inclusion in the EPL; third, because carrying out licensed activities in a competent manner may require the consideration of factors not addressed by the terms of the EPL; and, fourth, because Condition O1.1 must be considered in the context of the management of risk.
MCC, on the other hand, had submitted that the EPL needed to be considered as a whole and that the subset of conditions expressly directed to the regulation of mine blasting were Conditions L4.1 and L4.8, noting that Conditions L4.1-L4.4 impose numerical limits on the levels of vibration and airblast overpressure permitted from blasting operations as recorded at the four EPL monitoring points. MCC further submitted that a licensed activity within the meaning of Condition O1.1 is an activity that is regulated by the EPL.
Having referred to the observation by Craig J in Environment Protection Authority v Huntsman Corporation Australia Pty Ltd [2011] NSWLEC 39 (Huntsman) at [65], to the effect that some conditions imposed upon an environment protection licence may be seen to be merely procedural (the consequences of non-observance of which are not necessarily adverse to the environment), whereas others (into which category his Honour placed conditions requiring that an activity be carried out in a competent manner) may be regarded as more fundamental in the control of the regulated activity, the primary judge concluded that Condition O1.1 was of the latter kind (namely a condition more fundamental in the control of the regulated activity) (at [338] of the principal judgment).
The primary judge found that whether there had been a contravention of Condition O1.1 fell to be considered according to the possible environmental consequences of the acts or omissions in question, applying Genkem Pty Ltd v Environment Protection Authority (1994) 35 NSWLR 33; 85 LGERA 197 (Genkem) and Environment Protection Authority v Collex Pty Ltd [2001] NSWLEC 177; (2001) 115 LGERA 337 (Collex), noting that this would involve consideration of the nature of the activities and the environmental risks (principal judgment at [342]).
The primary judge was not satisfied, as a matter of construction of the EPL as a whole, that Conditions L4.1-L4.4 were, in effect, a proxy for Condition O1.1 (as MCC here submits) (principal judgment at [348]) for the following reasons:
348 I am not satisfied as a matter of construction of the EPL as a whole that conditions L4.1 to L4.4 are, in effect, a proxy for condition O1.1 in relation to the subject matter of blasting, or that compliance with the limits at the four monitoring points provides a complete answer to the three s 64(1) charges. This is because:
(1) Condition O1.1 directs attention to the manner in which licensed activities are carried out, and not to whether at specific locations operations otherwise achieve compliance with specific limits imposed by specific limit conditions. [Emphasis in original].
(2) Condition O1.1 is in Part 4 of the EPL which contains operating conditions. [Condition] O1.1 is one such operating condition. Conditions L4.1 to 4.4 are in Part 3 of the EPL which contains limit conditions specifying limits not to be exceeded at particular monitoring/discharge points or utilisation areas (in the case of L2 concentration limits), at monitoring points and private residences (in the case of L3 noise limits), and at monitoring points (in the case of L4 blasting). The two parts of the EPL are concerned with distinct subject matters. I am not persuaded that contrariety is manifest as between the conditions so as to engage the maxim generalibus specialia derogant: see Prefabricated Buildings at [29] (Robson J) citing Perpetual Executors.
(3) Condition O1.1 must be given work to do beyond ensuring that there is only compliance with specific limit conditions. Carrying out licensed activities in a competent manner may require the licence holder to consider matters not the subject of specific limit conditions, or in relation to which, in the particular circumstances, the specific limit conditions may not address the possible environmental consequences of carrying out the licensed activity.
(4) As Prince and Herzfeld [sic] say at 507-508, the identification of what is general and what is specific is not determined in purely linguistic terms, but has regard to the purpose and object of the provisions.
(5) I accept, as submitted by the prosecutor, that condition O1.1 properly construed is concerned with the general management of risk is carrying out a licensed activity having regard to the possible risk of environmental harm. The defendant accepted that the remarks of the CCA in Genkem provide “some assistance at a level of generality” in construing a condition such as condition O1.1, being a condition of a type which sets a general standard, and that the remarks indicate that a condition of this general type should be construed having regard to the possible environmental consequences of the acts or omissions in question.
(6) I do not accept the defendant’s submission that the design of the blast was a separate activity to the carrying out of the blast and not a licensed activity within the meaning of condition O1.1, and hence “does not fall within the ambit of regulation under the EPL”. The three relevant summonses nowhere fix upon the design of the blast as an entirely separate activity to that of carrying out of the blast. Rather, each summons recognises that the design of the blast was an integral part of carrying out the blast in the course of mining for coal. It is, with respect, somewhat contrived and unrealistic to suggest that a blast of the magnitude here would be carried out, or would be sought to be carried out, in the course of mining for coal other than in accordance with a documented design and, as here, in accordance with the drill and blast design checklist.
In relation to the question of competence, the primary judge accepted EPA’s submission that the allegation in each of the timing charge, the stemming length charge and the overloading charge that “[t]he defendant did not carry out the licensed activities in a competent manner” was ‘logically synonymous’ with an allegation that it carried out the particularised licensed activities in an incompetent manner (principal judgment at [349]) but was not persuaded that there was a mental or fault element required to be proved or that the principles that apply in the context of charges of criminal negligence were applicable by analogy (principal judgment at [350]). The primary judge said that the test for criminal negligence involved a different enquiry, namely, whether there had been such a great falling short of the standard of care which a reasonable person would have exercised.
At [357], the primary judge went on to say:
I find that the adjective “competent” in the composite phrase “competent manner” falls to be considered according to the possible environmental consequences of the acts or omissions in question. In the context of a licence authorising and regulating the carrying out of coal works, crushing, grinding or separating, and mining for coal, the nature of those activities and the possible environmental consequences of a breach of the condition of the EPL authorising and regulating their carrying out give colour and context to the meaning of “competent” in condition O1.1.
The primary judge then addressed the evidence in relation to each of the four charges and summarised her findings as to each as follows.
As to the timing charge:
391 In summary, in relation to the timing charge, I find established beyond reasonable doubt as follows:
(1) a decision was made on behalf of the defendant to use fast timing for the blast which was a departure from the standard blasting practice at the mine;
(2) the timing used in the blast through electronic initiation resulted in a burden relief time of 0.8-1.5ms/m. The prosecutor submitted, and I find, that the evidence of this fact was not subject to a limitation under s 136 of the Evidence Act. The defendant’s expert Dr Aimone-Martin calculated a burden relief time of 0.92ms/m. This was also within the range alleged in the summons;
(3) the use of fast timing resulted in a MIC approximately ten times more than conservative and proven levels;
(4) no modelling was conducted to the south of the mine, the Boggabri coal mine being located less than 3km to the south and the closest blast monitor (BM3) approximately 7.5km from the blast, contrary to cl 3.1 of the BLMP which specified requirements in relation to the minimisation of the likelihood of significant blast impacts to neighbouring receivers, including by considering appropriate initiation delays and detonation systems. I so find notwithstanding the defendant’s argument in closing submissions that it considered the Boggabri coal mine by having a 700m personnel exclusion zone which required that mine (which was notified of the blast) to move any contractors in the northern part of the Boggabri coal mine;
(5) concerns were raised by the shotfirer, Mr Welch, about the use of fast timing when tying up the shot on 19 August 2020;
(6) cl 3.3.5 of the BLMP concerning air vibrations (overpressure) management applies to all blasts conducted at the mine;
(7) irrespective of whether the blast is properly characterised as a lifting blast so that what was required was good vertical release, rather than good progressive burden release, the fast timing used did not provide for this;
(8) the use of fast timing did not provide for good progressive release of burden and resulted in a MIC approximately ten times more than conservative and proven levels and in high levels of noise and airblast overpressure;
(9) Dr Aimone-Martin accepted that in expressing her opinions in relation to the timing charge, she gave no consideration as to whether there were likely to be workers present at the Boggabri coal mine at the time of the blast, and that “Yes, of course” the likely distance of persons from the blast was a relevant matter to be taken into consideration; and
(10) in relation to the third option identified by Dr McKenzie of “3 m stemming and fast timing, and use the result as a learning opportunity, since I have doubt about the ability to reliably model the impacts on the data I have available”, Dr Aimone-Martin accepted that, as at 10:02pm on 14 August 2020, the third option involved a learning opportunity.
392 In relation to the fifth dot point of cl 3.3.5 of the BLMP [see [36] above], I find established beyond reasonable doubt that the use of fast timing was such that the objective of good progressive release of burden was not met. As opined by Dr Cameron, there was not enough time for an earlier firing hole to move its rock so that a later firing hole had a void into which to move the rock. I find, as opined by Dr Cameron, that a large increase in noise/ airblast overpressure was likely to occur and foreseeable due to the very large increase in MIC and the reduction in stemming length. Fast timing resulting in a MIC of 56,925kg, 10 times greater than conservative and proven levels, was not consistent with the requirements of cl 3.3.5 of the BLMP for managing airblast overpressure. I accept Dr Cameron’s opinion that the MIC is a primary contributor to vibrations and airblast levels. I reject the defendant’s submission that the prosecutor’s reliance on the fifth dot point in cl 3.3.5 of the BLMP somehow involved a “myopic focus” or a “fundamental misreading” of the clause, leaving only the question of whether the progressive release of burden satisfied the “loose concept of being “good””. [Emphasis in original]
393 In relation to the sixth dot point in cl 3.3.5 of the BLMP [see [36] above], I find established beyond reasonable doubt that the MIC was not limited to conservative and proven levels, being more than 10 times greater than the 5,000kg MIC trigger value in the green category of the blast hazard analysis. Dr Aimone-Martin accepted that the actual MIC was 56,925kg and that the fast timing and two points of initiation were the cause of the high MIC and contributed to the charge weight. It was not to Dr Aimone-Martin’s credit that she refused to answer the prosecutor’s questions concerning whether the MIC of 56,925kg was conservative.
394 As to whether the design of the blast was a licensed activity, for the reasons set out above at [348(6)], I have found that the design of the blast is not separate from and to be distinguished from the carrying out of the blast, and is a licensed activity.
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399 I also find, as opined by Dr Cameron, that the blast design did not meet the first paragraph of section 4.1 of the Australian Standard which requires that all blasts shall be planned and designed to achieve the required outcome with first consideration being the protection of persons, property and the environment. Nor, I find, did the blast design meet the second paragraph of section 4.1 that before the commencement of any blasting operation an investigation of the site and its environs shall be carried out, identifying any potential hazards/risks. Whilst I accept the defendant’s concern in relation to damage from inadequate fragmentation and the risk of injury, I find that in failing to consider the hazards/risks for all persons potentially impacted by the blast, in particular employees at the Boggabri coal mine significantly closer to the blast than where the defendant’s EPL monitoring points were located, as well as at the Tarrawonga and Coomalagah monitors, the defendant failed to carry out the blast in a competent manner in contravention of condition O1.1 of the EPL.
400 The prosecutor has established, beyond reasonable doubt, that the defendant committed an offence against s 64(1) of the POEO Act by contravening condition O1.1 of the EPL in programming the electronic initiation system for the blast with a burden relief time of 0.8-1.5ms/m which did not provide for good progressive release of burden.
413 I find established beyond reasonable doubt as follows in relation to the stemming length charge:
(1) a decision was made on behalf of the defendant to use reduced stemming for the blast which was a departure from the design standard which specified a stemming length of 3.5m and from standard blasting practice at the mine;
(2) the utilisation of a stemming length of 3.0m involved a reduction in the stemming length of 3.5m specified in the design standard, and hence a 14% reduction in stemming length and 14% less material containing the top of the explosives;
(3) as opined by Dr Cameron, the approved stemming length of 3.5m was already less than that normally used, and a further reduction of this length by 14% was a significant amount;
(4) the utilisation of a stemming length of 3.0m involved a reduction in stemming length from the 4.0m used in the previous blast on 7 August 2020, and hence a 25% reduction in stemming which, Dr Aimone-Martin agreed, was a “significant change”;
(5) as agreed by Dr Aimone-Martin, the blast ratio was significantly less than that recommended in the ISEE Blasters’ Handbook (and Orica’s Pocket Blast Guide), namely, 13.1 compared to the recommended blast ratio of between 20 and 30;
(6) as in relation to the timing charge, no modelling was conducted to the south of the mine, the Boggabri coal mine being located less than 3km to the south, and the closest blast monitor (BM3) being located approximately 7.5km from the blast, contrary to cl 3.1 of the BLMP which specified requirements in relation to the minimisation of the likelihood of significant blast impacts to neighbouring receivers, including by considering the adequacy of stemming; and
(7) the change in stemming length was not properly documented, the drill and blast design checklist (extracted above at [113]) not having been completed contrary to section 3.1 of the planning, design and record keeping procedure.
414 In particular, in relation to the stemming length charge, Dr Aimone-Martin’s evidence was that if the stemming length design change to 3.0m was in fact not properly documented, that would change her opinion, and that in order for the blast design to be described as “competent”, it was necessary for the drill and blast design checklist to be signed off appropriately. She accepted that the date in the drill and blast design checklist was blank, and that the date was important in relation to each of the matters of geology, mine planning, and blast engineering because of the iterations that the design was going through with Dr McKenzie. Further, she agreed that in the absence of sign off by the geology mine planning and blast engineer, the stemming length charge was not properly documented, “if this was required”. She ultimately agreed that the drill and blast design checklist was not completed, demonstrating that the drill and blast design procedure was not “formally managed”.
415 I find established beyond reasonable doubt that in utilising a 3.0m stemming length for the blast holes which deviated from the design standard which specified a stemming length of 3.5m, the defendant contravened condition O1.1 of the EPL. The changes to the stemming length did not comply with the BLMP in relation to the management of airblast overpressure.
416 The stemming length utilised in the blast involved a 14% reduction in stemming length compared to the design standard of 3.5m. It was not in contest that the 3.0m stemming length for the blast deviated from the design standard. As opined by Dr Cameron, by reference to the ISEE Blasters’ Handbook, the reduction from the design standard of 3.5m was a “significant change” and a “concern”. As Dr Cameron opined, the stemming length in the design standard was developed based on the mine’s experience and its safe operation and the stemming length reduction did not comply with the BLMP in relation to the management of overblast pressure, and was not “fitting, suitable or sufficient for the purpose”, having regard to the possible environmental consequences.
417 Again, as in relation to the timing charge, I find that utilising a stemming length of 3.0m for the blast holes and in failing to consider the hazards/risks for all persons impacted by the blast on particular employees at the Boggabri coal mine significantly closer to the blast than the residences where the defendant’s EPL monitoring points were located, as well as at the Tarrawonga and Coomalagah monitors, the defendant failed to carry out the blast in a competent manner in contravention of condition O1.1 of the EPL.
418 It is true that around the time of the blast the concept of reducing stemming length to address fragmentation was not a new concept. In his December 2019 report, Dr McKenzie had recommended stemming length in the range of 3.0m to 3.5m for hard rock areas. However, as Dr McKenzie accepted, the recommendations in his December 2019 report had not been adopted by the defendant.
419 I have addressed the defendant’s submission that the design of the blast was not a “licensed activity” within the meaning of condition O1.1 of the EPL above at [348(6)].
420 The prosecutor has established beyond reasonable doubt that the defendant committed an offence against s 64(1) of the POEO Act by contravening condition O1.1 of the EPL by utilising a stemming length of 3.0m for the blast holes which deviated from the defendant’s design standard which specified a stemming length for the blast holes of 3.5m.
445 In relation to the overloading charge, I find that the prosecutor has established beyond reasonable doubt that the defendant did not carry out the licensed activities in a competent manner and thereby breached s 64(1) of the POEO Act by contravening condition O1.1 of the EPL. I find established beyond reasonable doubt that in overloading approximately 19% of the blast holes with more than 10% of the amount of explosives prescribed in the design for the blast, contrary to the loading and stemming blast holes procedure, the defendant did not carry out the licensed activities in a competent manner. Such overloading was not “fitting, suitable or sufficient for the purpose” having regard to the possible environmental consequences.
446 In particular, I find established beyond reasonable doubt as follows:
(1) the defendant’s planning, design and record keeping procedure provided for the design objective “to define a drill pattern design within 10% of the target design parameters”;
(2) the amount of explosives loaded for the blast was more than 10% of the amount prescribed in the defendant’s loading and stemming blast holes procedure;
(3) as Dr Aimone-Martin accepted, the loading and stemming blast holes procedure should be approached in a manner that would promote the paragraphs in section 4.1 of the Australian Standard. I find that it did not;
(4) 19% of the holes were loaded with at least more than 10% of explosives than provided in the blast design;
(5) of the 191 holes which contained at least 10% more explosives than designed, 33 holes contained more than 20% of the amount provided in the blast design;
(6) as opined by Dr Cameron, an overloaded hole creates a safety issue in terms of flyrock and “air blasting” and, as opined by Dr Cameron, and accepted by Dr Aimone-Martin, a potential danger to the environment;
(7) practical steps can be taken to ensure that the weight of explosives in a particular hole is kept consistent with the design weight for the hole, it being achievable and common practice because the bulk explosives delivery trucks have measurement systems that track and control the amount of explosives loaded in each hole, and have load sheets with the design weight to be loaded in each hole;
(8) whilst there can, as opined by Dr Aimone-Martin, be variations in loading values, that does not address the practical steps available to be taken to track and control the amount of explosives loaded in each hole;
(9) as in relation to the timing charge and stemming length charge, no modelling was conducted to the south of the mine, the Boggabri coal mine being located less than 3km to the south, and the closest blast monitor (BM3) approximately 7.5km from the blast, contrary to cl 3.1 of the BLMP which specified requirements in relation to the minimisation of the likelihood of significant blast impacts to neighbouring receivers, including by considering blast hole loading procedures;
(10) whilst as submitted by the defendant, it is relevant to consider geological conditions, variations in ground surface elevation and drilling rig performance in preparing and filling blast holes, however again that does not address the practical steps available to be taken to track and control the amount of explosives loaded in each hole; and
(11) it was available to the blast crew to consider the quantities specified in the loading sheets, and they did not.
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- The prosecutor has established beyond reasonable doubt that the defendant committed an offence against s 64(1) of the POEO Act by contravening condition O1.1 of the EPL by failing to carry out the licensed activity in a competent manner by overloading approximately 19% of the blast holes with more than 10% of the amount of explosives prescribed in the design for the blast in contravention of the defendant’s loading and stemming blast holes procedure.
461 As submitted by the defendant, the question of whether the defendant dealt with the explosives in a proper and efficient manner is to be determined by reference to the text of s 140(1) and the context of the POEO Act, and by considering the possible environmental consequences of the act or omission in question: Genkem at 41C-E (Gleeson CJ); cited with approval in Bartter CCA at [21] (Basten JA) (Davies and Dhanji JJ agreeing).
462 I find, guided by Genkem and Bartter CCA (both cases dealing with the construction of conditions of licences and not a statutory provision such as s 140(1)), that the phrase “proper and efficient” in s 140(1) must be understood as referring to dealing with materials in or on premises in such a manner as to cause the emission of noise from the premises where the noise so caused, or any part of it, is caused by the occupier’s failure to deal with those materials in a proper and efficient manner, having regard to the possible environmental consequences arising from a failure to deal with the materials in such a way as to minimise or avoid those risks.
463 I do not interpret s 140(1) as having “any sort of implied exception or defence that is based upon what is allowed under the conditions of the EPL”. I find, as submitted by the prosecutor, that the limits placed upon s 140(1), by its terms, are that there be an emission of noise from the premises, and that the emission of noise must be caused by the failure to deal with the materials in a proper and efficient manner. It is no defence to an offence against s 140(1) that the emission of noise was in accordance with the airblast overpressure and vibration limits set out in the EPL.
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484 However, I find established beyond reasonable doubt each of the elements of the emission of noise charge.
(1) I have found that the defendant was the occupier of the premises at all relevant times.
(2) I have found that the explosives particularised in the emission of noise charge are materials within the meaning of s 140(1) of the POEO Act, and that those materials were dealt with in or on the premises.
(3) I have found that the dealing with the materials caused the emission of noise from the premises. The noise so emitted was registered or heard at the EPL monitoring points, as well as at the Coomalagah monitor, the Tarrawonga monitor, the Boggabri trigger unit, Wilberoi East, Goonbri East, by Mr Byrnes and Ms Severin at the Boggabri coal mine, and by Mr Kereopa, Ms Louis, Ms Druce and Ms Westlake at their respective private residences.
(4) I find established beyond reasonable doubt that the emission of noise so caused was caused by the defendant’s failure to deal with the materials in a proper and efficient manner for the following reasons:
(a) The manner of dealing with the explosives did not meet section 4.1 of the Australian Standard which requires that all blasts shall be planned and designed to achieve the required outcome with first consideration by the defendant being the protection of persons, property and the environment, and that before the commencement of any blasting operation an investigation of the site and its environs shall be carried out, identifying any potential hazards/risks. There was no consideration of the safety of persons at the Boggabri coal mine where personnel were less than 3000m from the blast and where an airblast overpressure level of 135.6dBL was recorded at the Boggabri trigger unit, or at the Tarrawonga monitor or at the Coomalagah monitor, a sensitive site located approximately 12.5km from the blast, at which an exceedance of the blast noise limit of 120dBL provided for in condition 18 of the EPA Act approval (namely, 125.4dBL) was recorded (see Dr Aimone-Martin’s graph reproduced at [219] above and the table at [288]).
(b) As I have found in relation to the timing charge, stemming length charge and overloading charge, no modelling was conducted to the south of the mine, the Boggabri coal mine being located less than 3km to the south, and the closest blast monitor (BM3) being located approximately 7.5km from the blast, contrary to cl 3.1 of the BLMP which specified requirements in relation to the minimisation of the likelihood of significant blast impacts to neighbouring receivers including by considering expected offsite vibration levels.
(c) Contrary to the defendant’s submission, I do not accept that the complaint the subject of the emission of noise charge ought be characterised as a complaint about the design of the blast. The complaint concerns the manner of dealing with the materials in or on the premises, here relevantly by handling the explosives in utilising 3.0m stemming and fast timing.
(d) Further, I find that the manner of dealing with the materials resulted in high levels of airblast overpressure due to the sudden movement of the surface of the blast and the release of high-pressure gases. This does not conform with the objective in cl 1.4 of the BLMP to ensure that operational blast vibration and overpressure from activities associated with the mine are minimised.
(e) The defendant’s expert Dr Aimone-Martin was not directed to the language of s 140(1) of the POEO Act. Further, her evidence generally in relation to the emission of noise charge was unforthcoming and unhelpful. In particular, her evidence in relation to the weather conditions at the time of the blast was contradictory and unclear. I do not accept the atmospheric conditions which prevailed on 20 August 2020 as relevant to the emission of noise charge. Logically, as the prosecutor submitted, as the blast was called off on 19 August 2020 due to poor atmospheric conditions, it also ought to have been called off on 20 August 2020 if Dr Aimone-Martin’s opinion in relation to the significance of atmospheric conditions on 20 August 2020 were to be accepted.
(f) That breaking the caprock or overburden was achieved on 20 August 2020 is no defence to the allegation that the defendant dealt with the explosives in such a manner as to cause the emission of noise from the premises and that the noise so caused or any part of it was caused by the occupier’s failure to deal with the explosives in a proper and efficient manner. There is a myriad of ways in which the breaking of caprock or overburden can be achieved in such a manner as to cause the emission of noise, other than in a proper and efficient manner.
(g) Nor do I accept as sensible the defendant’s submission that the prosecutor could not prove that the noise in the form of sound and vibrations resulting from airblast overpressure was caused by the 3.0m stemming and the fast timing. I have found above at [484(3)] that dealing with the explosives caused the emission of noise from the premises and that emission of noise was registered or heard at the EPL monitoring points, as well as at the Coomalagah monitor, the Tarrawonga monitor, the Boggabri trigger unit, Wilberoi East, Goonbri East, by Mr Byrnes and Ms Severin at the Boggabri coal mine, and by Mr Kereopa, Ms Louis, Ms Druce and Ms Westlake at their respective private residences. For the purposes of deciding whether the prosecutor has established beyond reasonable doubt the fourth element of the s 140(1) offence, it is unnecessary to be satisfied that actual harm was caused to human health.
At the outset, I note that the conviction appeal is brought under s 5AA read with s 5AB of the Criminal Appeal Act 1912 (NSW) and that the parties accept that it is necessary for MCC to establish an error of law or that the primary judge applied the wrong principle in the fact finding exercise (Bulga Underground Operations Pty Ltd v Nash (2016) 93 NSWLR 338; [2016] NSWCCA 37 per Bathurst CJ, Hidden and Davies JJ at [96]; Landmark Roofing Pty Ltd v SafeWork NSW [2021] NSWCCA 95 at [12] per Cavanagh J (Gleeson JA and Garling J agreeing); JBS Australia Pty Ltd v SafeWork NSW [2024] NSWCCA 209 at [33]-[34] (Basten JA, Ward P and N Adams J agreeing)).
While it is accepted by MCC that an appeal may be dismissed, despite an appellable error having been established, if the Court is satisfied that no substantial miscarriage of justice has actually occurred (see Gilmour v Environment Protection Authority; Tableland Topdressing Pty Ltd v Environment Protection Authority (2002) 55 NSWLR 593; [2002] NSWCCA 399 at [28] per Santow JA (Hidden and Adams JJ agreeing) followed in Geitonia Pty Ltd v Inner West Council; Gertos v Inner West Council [2016] NSWCCA 186 at [4], [129] and [155]; ACE Demolition & Excavation Pty Ltd v Environment Protection Authority [2024] NSWCCA 4 (2024) 260 LGERA 358 at [66]; Leda Manorstead Pty Ltd v Secretary, Dep**artment of Planning and Environment [2022] NSWCCA 220; (2022) 253 LGERA 184 (Leda Manorstead) at [6] and [17]), MCC submits that if any of the errors it contends are established, it follows that there has been a substantial miscarriage of justice. MCC notes in this regard that there is no assertion by EPA that, if the grounds of appeal are established, no substantial miscarriage of justice has occurred.
MCC groups those grounds of appeal that are now pressed into three categories: construction of the EPL (grounds 1-6); competence findings (grounds 7-14); and the noise charge (grounds 17-18). I will deal with them under those headings.
By way of summary, as to the conclusion I have ultimately reached, I have concluded that the primary judge erred in principle in the findings made as to incompetence and inefficiency because, first, the primary judge did not assess competence and efficiency relative to the mining engineering objectives to which the blasting activity was directed (Grounds 4, 5, 6, 10-13 and 17) and, second, the primary judge did not identify any basis upon which to exclude as a reasonable possibility, Dr Aimone-Martin’s evaluation of the competency/efficiency of the Blast and did not consider the reasonableness of that possibility (Ground 14(c)).
As noted above, each of the timing, stemming length and overloading charges was predicated on an alleged breach of Condition O1.1 of the EPL (see as set out above).
Broadly speaking, MCC contends that, insofar as the Blast activity was concerned, it was specifically contemplated and regulated by other provisions of the EPL, such that a more general obligation of competence had no place where there was compliance with specific prescribed limits for the Blast.
Turning to the particular grounds of appeal in relation to the construction of the EPL, these were addressed as follows.
Ground 1: The primary judge erred in finding in the Judgment that MCC breached s.64 of the POEO Act in contravening Condition O1.1 of its EPL in circumstances where, on a proper construction of the EPL as a whole, EPL Conditions L4.1-4.4, which were satisfied in relation to the blast event the subject of the charges, regulated the blasting event.
Ground 2: Having acknowledged throughout the Judgment (it being common ground) that EPL Conditions L4.1-4.4 were complied with in relation to the event the subject of the charges, the primary judge erred in finding at Judgment [348] a breach of s.64 of the POEO Act through a contravention of EPL Condition O1.1.
MCC emphasises that the three aspects of the “competence” charges (timing, stemming length and overloading) all operated, either individually or in a combined fashion, to give rise to the ultimate Blast event consequences which manifested in airblast overpressure and ground vibration peak particle velocity and it was accepted (the primary judge described as uncontroversial) that the airblast overpressure and ground vibration were within the specific limits provided for in the EPL. The core of MCC’s complaint raised by Ground 1 is that the manifestation of what was said to comprise the absence of competence, was the very thing that was the subject of specific limit control and monitoring in the EPL.
MCC’s primary contention is that, as a matter of construction of the EPL, Condition O1.1 does not provide for an obligation independently of the specific obligations contained in the EPL in relation to the activity of blasting; rather, the latter override the general obligation of competence in Condition O1.1.
MCC argues that, structurally, the EPL authorises the undertaking of the scheduled activity (coal works, crushing, grinding or separating and mining for coal) and, pursuant to the power to impose conditions (s 63 of the POEO Act), sets out the prescriptive conditions regulating that authority (followed by the general conditions in Chapter 4).
MCC submits that where there is a regime for the specific aspect of blasting within the general licensed scheduled activity, Condition O1.1, as properly construed, has no work to do for that activity. MCC maintains that, on its construction, Condition O1.1 still has work to do in regulating the broader scope of “licensed activities”.
MCC further submits that if (contrary to its contention) the broader obligation of competence remains in the face of the specific obligations in relation to blasting, then compliance with the specific obligations should be regarded as evidence, and satisfaction, of the broader obligation of competence. MCC argues that it is both paradoxical and illogical that it achieved the prescribed result (compliance with overpressure and ground vibration levels) but was found to have not been competent in so doing.
MCC identifies the main error of construction as that raised by Ground 2 (relating to the finding at [348]). MCC argues that none of the reasons given by the primary judge at [348] (see above at [96]), for the finding that the specific conditions (in Conditions L4.1–L4.4) did not override the general provision in Condition O1.1 of the EPL, provides a sufficient answer for that conclusion.
As to the reason given at [348](1), MCC says that there is no relevant distinction to be made about the manner in which activities are carried out as opposed to compliance with specific limits. MCC argues that the specific limits themselves are the result of the carrying out of the activity. It is submitted that if the EPL is directed to regulating the activity and, as part of that regulation, to ensure that certain limits are met at certain locations, there is no relevant distinction to be made in a circumstance where the limits are met, and the broader condition is about the carrying out of the activity. It is submitted that the distinction drawn by the primary judge at [348](1) (between the manner in which licensed activities are carried out and whether operations at specific locations otherwise achieve compliance with specific limits imposed by specific limit conditions) is more concerned with the distinction made by Gleeson CJ in Genkem*,* in circumstances where the complaint there was that there was no prescribed method for undertaking the relevant activity.
As to [348](2), MCC cavils with the primary judge’s conclusion that contrariety is not manifest as between the respective conditions so as to engage the maxim generalibus specialia derogant. MCC submits that it makes no sense for there to be a circumstance where one can act competently (Condition O1.1) but still breach the limits for blasting (Condition L4.1); nor, conversely, that one can meet the limits (Condition L4.1) but be prosecuted for the breach of a condition that required the operator to have done so in a competent manner. MCC submits that, properly considered, they are inconsistent results.
As to [348](3), as adverted to above, MCC submits that Condition O1.1 has work to do beyond the specific limits, arguing that the aspects of the activity the subject of specific control under the EPL may not cover all of the various activities and functions that are undertaken by the licence-holder in undertaking coal mining; and hence Condition O1.1 has work to do in addition to compliance with the specific limits for certain parts of the overall undertaking of the Coal Mine.
As to [348](4), MCC accepts that Condition O1.1 of the EPL is not directed to “blasting” per se; nor is it a term that is included within the actual words of the condition. However, MCC says that blasting is a component of undertaking the controlled activity, to which Condition O1.1 does apply (as also do Conditions L4.1-L4.4) and argues that, if the purpose and object of the provisions is to regulate an identifiable consequence of the carrying out of the controlled activity, then the specific must prevail to the extent of any such inconsistency.
As to [348](5), where the primary judge accepted that Condition O1.1 was concerned with the general management of risk, MCC argues that, once it is recognised that the “possible risk of environmental harm” is measurable by a result which is either less or more than the limits set out in the specific conditions, then in the light of the specific blasting conditions, Condition O1.1 has no work to do.
As to [348](6), where the primary judge rejects MCC’s submission that the design of the Blast was a separate activity to the carrying out of the Blast and not a licensed activity within Condition O1.1, MCC argues that the connection between the particulars of the three charges and the design of the Blast does not establish sufficient reason not to find that, upon satisfaction of Conditions L4.1-L4.4 of the EPL, there can be no breach of Condition O1.1 for the very same aspect of activity.
MCC has filed extensive reply submissions as to the proper construction of the EPL and the interpretation of Condition O1.1, emphasising that the nature of the EPL is to be understood in the light of the legislation pursuant to which it was issued (referring to Environment Protection Authority v Australian Iron & Steel Pty Ltd (1992) 28 NSWLR 502; 64 A Crim R 124 (Aust Iron & Steel) at 505B; Environment Protection Authority v Sydney Water [2022] NSWLEC 100 at [377]) and that this approach requires consideration at the first stage of the construction process of context (used in its widest sense) (referring to Palmanova Pty Ltd v Commonwealth [2025] HCA 35 at [5]; (2025) 99 ALJR 1362; SZTAL v Minister for Immigration and Border Protection (2017) 262 CLR 362; [2017] HCA 34 at [14]), purpose and history (citing Alcan (NT) Alumina Pty Ltd v Commissioner of Territory Revenue (NT) (2009) 239 CLR 27; [2009] HCA 41 at [47]; CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384 at 408; [1997] HCA 2).
MCC argues that the essential nature of the EPL is to permit, on terms, conduct that would otherwise be unlawful (here, the mining for coal, coal works, and crushing, grinding or separating), referring to Aust Iron & Steel (at 505B-C) and says that not all activities carried out at the premises are licensed activities for the purposes of Condition O1.1 (citing Genkem). MCC complains that no consideration was given in the principal judgment to interpreting the EPL in accordance with Aust Iron & Steel. MCC further complains that the primary judge “overlooked” that, in considering various conditions of an environment protection licence, it is not to the point that the drafter of the licence may have devoted more attention to stating what was prohibited (or to “obligations” or “control”) (in this context Conditions L4.1-L4.4) than what was permitted (referring to Aust Iron & Steel at 505B).
MCC says that the primary judge regarded the permissive limits in Conditions L4.1-L4.4 as being subject, or secondary, to Condition O1.1 (referring to [347] of the principal judgment). MCC submits that a reading of the whole of the EPL underscores the permissiveness of the licence and contends that compliance with its terms was either a defence to a charge of failing to comply with Condition O1.1 in relation to the carrying out of the Blast or carried significant weight in considering such a charge (cf [250], [348], [398] of the principal judgment). MCC says that a “defence” in this context may be available, in effect, where the general condition is read down to exclude conduct which complies with the specific regulation of that conduct, or its environmental consequences, elsewhere in the EPL.
MCC contends that, read as a whole, the EPL contains a comprehensive regime for regulating aspects of the environmental consequences of blasting which is carried out as part of coal mining; and says that Conditions L4.1-L4.4 are but one component of this regime (cf [347]-[348] of the principal judgment). In this context, MCC refers to other EPL conditions which relate specifically to blasting (Conditions P1, L4.5, 4.7, Part 5 and Condition R1.1). MCC submits that other pollution limits demonstrate the nature of the regime in the EPL, (referring to: Conditions P1.1 and P1.3 (which refer to the setting of limits for the emission of pollutants to the air and water); Condition L1.1 (which provides that the licensee must comply with s 120 of the POEO Act except as expressly provided by licence conditions); Condition L2, which permits discharge of pollutants; Conditions L3 and L5, which prescribe limits upon noise generated at the premises; and Condition O4.1, which prohibits the emission of offensive blast fumes from the premises) (which MCC says contrasts with the permission to emit blasting overpressure and ground vibration).
MCC complains that, although the primary judge recorded by way of factual background a number of the above conditions, when interpreting the EPL, the principal judgment is confined to a consideration of Conditions L4.1-4.4 vis-à-vis Condition O1.1 and does not record consideration of the EPL as a whole. MCC says that (to the extent this is suggested in the principal judgment – here referring to [346]) the specific conditions are not of lesser importance by virtue of their specificity.
MCC submits that, by not interpreting the EPL as a whole, the primary judge overlooked the purpose and significance of the four monitoring locations identified in the EPL all being to the north and north-west of the Mine (referring to [85] of the principal judgment), these being the only locations specified for monitoring of noise and vibration limits.
MCC emphasises that monitors associated with Boggabri Coal Mine and Tarrawonga Coal Mine are not identified in the EPL (and hence MCC says that those monitors do not, and are not intended to, apply to noise and vibration from blasts carried out at the Mine). MCC refers to the BMS BTM as evidencing co-operation and communication between the three mines in arrangements for blasting; and says that the scheme in the EPL as to monitoring was not intended to apply to locations on the lands of other mines.
Further, MCC notes that the 2018 variation to the permissions for blast limits was effected around two years before the Blast, indicating that recent consideration was given by the regulator to the appropriate permissions and limits to be afforded under the EPL. MCC points out that limits which were more closely tied to noise sensitive locations were removed. MCC says that, on a proper interpretation of the EPL, this change reinforced that, provided the limits in Conditions L4.1-L4.4 (and other specific Conditions) were complied with, the Blast was authorised by the EPL. MCC points out that the BLMP Blast was the product of consultation with the EPA and approval by the Planning Secretary (and that the BLMP made clear that the four monitoring locations to the north and north-west of the Mine were representative of residences on privately owned land, and “as such, will be used to assess compliance with blasting criteria”). Hence, MCC says that EPA was aware of how compliance with the EPL was understood by it.
Fourth, MCC argues that to incorporate unspecified and general airblast overpressure and ground vibration limits, particularly where specific limits are prescribed, introduces significant uncertainty into the operation of the EPL. MCC says that it can never know whether its activities may give rise to a contravention by exceeding some unexpressed or unidentified limit or effect by way of environmental consequence, and that such uncertainty undermines the proper operation of the statutory licensing regime as a whole.
Thus, MCC argues that the primary judge’s reasoning that Conditions L4.1-L4.4, and compliance with them, are “not a proxy” for Condition O1.1, failed to read the instrument as a whole or to read the Conditions of the instrument together, and failed to recognise that compliance either amounted, in effect, to a defence, or was significant evidence that meant the prosecution could not establish a contravention beyond reasonable doubt.
MCC invokes the following two further tenets of statutory interpretation as relevant to the interpretation of the EPL: first, the rule referred to by McHugh J in Saraswati v The Queen (1991) 172 CLR 1 at 23; [1991] HCA 21 (Saraswati) that, when a statute specifically deals with a matter and makes it the subject of a condition or limitation, it excludes the right to use a general provision in the same statute to avoid that condition or limitation; second, that doubt or ambiguity should be resolved in its favour, it being the party accused of the contraventions (MCC citing Beckwith v R (1976) 135 CLR 569 at 576 (Gibbs J); [1976] HCA 55 (Beckwith); Leda Manorstead at [4]).
As to the first, MCC says that the reasoning employed in Saraswati (where it was held that conduct covered by either of two specific offences under the Crimes Act 1900 (NSW) in that case could not be the subject of a charge under a general offence under that Act) is analogous to the present case. MCC submits that, given that Conditions L4.1-L4.4 of the EPL expressly provide limitations, Condition O1.1 should be read as excluding blasting in compliance with those provisions. MCC contends that the conduct covered by the specific conditions cannot be the subject of a contravention under the general condition.
As to the second of the further tenets of statutory construction to which it has referred in its reply submissions, MCC submits that if there be any ultimate doubt or ambiguity in the interpretation of s 64 of the POEO Act and the conditions of the EPL, this doubt should be resolved in its favour.
MCC emphasises the reference in Genkem to the “possible environmental consequences” of a contravention giving content and colour both to the obligation to act in a proper and efficient manner and to the consequences of breach of that obligation and complains that the primary judge’s approach in focusing on the “manner” in which the licensed activities are “carried out” ([348](1)) overlooks the requirement to assess any alleged contravention according to its possible environmental consequences. Again, MCC emphasises that the EPL is permissive in its nature and permits environmental consequences to occur within the limits it prescribes; and that the actual environmental consequences (noise and vibration) were compliant with the permitted limits under the EPL.
MCC points to the evidence that it asked Dr McKenzie to be conservative in his modelling against the EPL limits, to meet the EPL 95% limits, not only the EPL absolute limits ([156], [248], [284], [377] of the principal judgment) and says that arguments that focus upon “risk” and “way” or “process” fail to recognise that neither the risk of sound and vibration nor the actual sound and vibration caused by the Blast contravened the limits in the EPL.
MCC submits that, on a proper construction, given the nature of the EPL in the light of the statutory scheme, the purpose of Condition O1.1 is not to “eliminate” the risk of pollution (or the risk of environmental harm) generally and is not to “eliminate” the risk of pollution arising from blasting specifically. MCC says that, reading the relevant conditions together, carrying out activities in a competent manner may permissibly result in pollution or environmental consequences, the extent of which are regulated by the EPL.
As noted above, MCC further complains that the primary judge disregarded the compliant environmental consequences of blasting at the monitoring locations under the EPL and relied instead upon environmental consequences at other locations which are not identified in the EPL. MCC says that such reasoning was erroneous; that it was contrary to the licensing scheme under the POEO Act and that it introduced uncertainty in the operation of the EPL.
EPA does not dispute that the airblast overpressure and ground vibration peak particle velocity emanating from the Blast complied with the limits in Conditions L4.1-L4.4.
As to Ground 1, EPA submits that there was no error in the approach taken by the primary judge to the construction of the EPL. EPA submits that the structure of the EPL supports the construction of the primary judge, arguing that the fact that Conditions L4 and O1.1 are found in different chapters of the EPL, supports the view that the obligations of the licensee are owed separately and independently. EPA says that this is true even if certain limits are placed on “blasting” in Conditions L4.1-L4.4 as the subset of a “scheduled activity” (in this case mining for coal). EPA says that this does not indicate that there is “no work to do” for Condition O1.1.
Further, EPA contends that primary judge correctly concluded (at [348]) that in the circumstances of this case, the principle that where an Act contains two inconsistent provisions the general provision is to give way to the specific provision (either by reference to the maxims to which her Honour referred or as set out by Robson J in Prefabricated Buildings Pty Ltd v Bathurst Regional Council [2017] NSWLEC 44) is not engaged. EPA submits that, having accepted that the question was arguable ([347]), her Honour engaged in the orthodox construction approach to consider whether in fact the principle applied in the circumstances of this case.
As to Ground 2, EPA submits as follows in relation to the six reasons proffered by the primary judge at [348].
As to [348](1), EPA points out that Condition O1.1 in its terms, directs attention to the manner in which the licensed activities are carried out. EPA argues that it is a condition that seeks to regulate activities under the licence by reference to a standard of satisfactory skill and says that both its terms and purposes are directed to the carrying out of activities.
As to [348](2), EPA argues that there is a sensible and logical basis for there to be circumstances in which one can comply with one of Conditions O1.1 and L4.1 and yet breach the other. It is submitted that the process of blasting can be carried out competently and yet still produce a result that breaches the limit conditions (sounding in a breach of Condition L4.1 but not Condition O1.1) or, conversely, the limit conditions may be complied with but certain action or inaction in the carrying out of the activity may nevertheless have not been carried out in a competent manner.
As to [348](3), EPA argues that the fact that Condition O1.1 may have work to do outside of the activity of blasting is not to the point. EPA says that it is a provision directed to how the scheduled activities are carried out; and that it has work to do for each of the scheduled activities.
As to [348](4), EPA says that the purpose and object of Condition O1.1 is wider than that suggested by MCC.
As to [348](5), EPA maintains that Condition O1.1, properly construed, is concerned with the general management of risk of carrying out a licensed activity. EPA submits that it is necessary and appropriate that the EPL regulate the risk that activities are not carried out competently because they expose a significant risk of environmental harm even though it may be that that harm does not actually materialise.
Finally, as to [348](6), EPA submits that the observations of the primary judge on this point were entirely consistent with the conclusion the primary judge reached.
Thus, EPA submits that there is no identifiable error in the approach of the primary judge to the construction of the EPL and, at the level of principle, there is no reason why the EPL should not have been construed to operate such that there can be a breach of Condition O1.1 even if Conditions L4.1-L4.4 have been complied with in this case.
I am not persuaded that her Honour erred in the construction of Condition O1.1 of the EPL as being that it imposes a separate obligation (of competence in the manner of carrying out the activity of, inter alia, blasting) from the specific obligations in Conditions L4.1-L4.4 albeit that there may be some overlap between the general and specific conditions. Her Honour expressly proceeded on the basis that the EPL must be construed in accordance with ordinary principles of statutory construction and that Condition O1.1 was to be construed having regard to text, context and purpose (see at [319] of the principal judgment). Her Honour noted the reference in both parties’ submissions to the need for the EPL to be considered as a whole (see [321]-[322]). The fact that her Honour did not refer to Aust Iron & Steel in this context does not bespeak error.
In my opinion, her Honour correctly concluded that, in construing the EPL and Condition O1.1, the principle that where there is conflict between a general provision and a specific provision the latter prevails was not here engaged. The structure of the EPL (with the general operating conditions contained in a separate chapter from specific limit conditions supports such a conclusion).
As her Honour observed, Condition O1.1, in its terms, directs attention to the manner in which licensed activities (of which blasting is one) are carried out; Conditions L4.1-L4.4 are specific limit conditions which focus on the outcome of blasting (in terms of airblast overpressure and vibration). I do not accept that Condition O1.1 has no work to do in relation to blasting in light of the specific limit conditions for that activity.
While I accept that a strong indicator of competence may be compliance with the limit conditions (and, conversely, non-compliance with limit conditions may be a strong indicator of a lack of competence in the carrying out of the blasting activity), there is in my opinion, scope for Condition O1.1 to regulate competence in the carrying out of the activity that may not be established merely by achieving the limit conditions. As debated during oral submissions one may postulate circumstances in which a blasting activity was carried out with a lack of competence yet there was (fortuitously or otherwise) compliance with blast limits; for example, where there was non-compliance with safety procedures which nevertheless did not prevent compliance with blast limits. More relevantly, in the present case, one might argue that there was some practical inefficiency in overloading some of the blast holes with explosives beyond the amount provided for in the design plan, without that resulting in non-compliance with the limit conditions. What would turn on this would, of course, be another matter.
Therefore, Grounds 1 and 2 are not made good.
Ground 3: The primary judge erred in finding at Judgment [348] and [398] that compliance with EPL Conditions L4.1-4.4 are not a proxy for EPL Condition O1.1 in relation to the subject matter of blasting with respect to all charges, and particularly the timing charge, the stemming charge, and the overloading charge.
As noted above, in relation to Grounds 1 and 2, MCC contends that compliance with Conditions L4.1-L4.4 establishes an answer to the asserted breach of Condition O1.1.
It is noted that the finding that the limit Conditions in L4.1-L4.4 do not operate as a proxy for Condition O1.1 in relation to blasting is repeated in the principal judgment at [398]. MCC says that the observation by the primary judge at [398] (that the fact that “the blast otherwise complied with the limit conditions in L4.1-L4.4 of the EPL for airblast overpressure and vibration does not detract from this finding”) is the very point of the proposition that compliance with those conditions does operate as evidence of satisfaction of Condition O1.1. MCC argues that if the timing was not done in a competent manner (as is at the heart of [398]), then in terms of the objective intent of the limit conditions, there is no evident purpose in also attempting to define or identify a competency breach.
As noted above, in MCC’s reply submissions, complaint is made that the primary judge’s reasoning failed to recognise that compliance with Conditions L4.1-L4.4 amounted either to a defence or was significant evidence that precluded a contravention being established beyond reasonable doubt.
EPA submits that the primary judge’s use of the term “proxy” is to be read as meaning that compliance with Conditions L4.1-L4.4 did not either exclude the operation of Condition O1.1 or otherwise determine that Condition O1.1 must have been complied with, noting that the term “proxy” was preceded in the reasons by the words “in effect” which preceded the term “proxy” on each occasion. EPA maintains that this was a correctly reasoned conclusion for the reasons it puts forward in relation to Grounds 1 and 2 but submits that, if the language adopted by the primary judge of “proxy” is found not to be apt for the conclusion reached, or otherwise introduced error, but the overall approach to the construction is found to have no error of law, then there has been no substantial miscarriage of justice in this case by reason of that error.
EPA further submits that MCC’s approach to the work that Condition O1.1 has to do on its construction of the Condition (referring to its submission at [49] that “[i]n many respects, the absence of competence should result in a breach of the prescribed limits”) is narrow and not properly grounded in any textual or contextual considerations.
The primary judge did not err in concluding that compliance with the specific limit conditions was not in effect a proxy for compliance with Condition O1.1. As I have concluded above, Condition O1.1 is an independent obligation with work to do beyond the limit conditions per se.
The submission that compliance with the limit conditions is a defence to a claim for breach of Condition O1.1 cannot be accepted. The other provisions of the EPL make clear where compliance with limit conditions is intended to be a defence. There is express provision to that effect in, for example, the conditions in the EPL relating to land and water pollution. Had the drafter of the EPL intended compliance with the limit conditions on blasting to be a defence to a charge of lack of competence in the blasting activity, that could readily have been provided in the EPL.
While I consider that compliance with the limit conditions may be a strong indicator of competence, it does not of itself establish compliance with Condition O1.1.
Ground 3 is not made good.
Ground 4: The primary judge erred in finding at Judgment [398] and [400], in relation to the timing charge, that MCC failed to carry out the blast in a competent manner, in the light of compliance of the blast with EPL Conditions L4.1-4.4.
Ground 5: The primary judge erred in finding at Judgment [420], in relation to the stemming length charge, that MCC failed to carry out the blast in a competent manner, in the light of compliance of the blast with EPL Conditions L4.1-4.4.
Ground 6: The primary judge erred in finding at Judgment [445] and [450], in relation to the overloading charge, that MCC failed to carry out the blast in a competent manner, in the light of compliance of the blast with EPL Conditions L4.1-4.4.
Grounds 4, 5 and 6 impugn the specific findings of the primary judge with respect to the first three charges for aspects of breach of Condition O1.1, respectively in relation to the three separate particulars of timing, stemming length and overloading. (MCC notes that these findings were mirrored in the sentence judgment at [230]). MCC relies on its submissions put forward in relation to Grounds 1-3 in this context. In its reply submissions, MCC amplifies its contention that these findings were in error as follows.
In relation to the timing charge, MCC says that compliance with Conditions L4.1-L4.4 did detract, or should have detracted, significantly from the finding that the programming of the electronic initiation system for the Blast was not “fitting, suitable or sufficient for the purpose”.
In relation to the findings on the stemming length charge and the overloading charge, complaint is made that the primary judge made no reference to the fact that there had been compliance with the EPL conditions directed to blasting (referring to the principal judgment at [413]-[420] in relation to the stemming length charge; [445]-[450] in relation to the overloading charge). MCC says that it is to be inferred that this evidence was erroneously not taken into account in the assessment of liability for these charges.
MCC submits that it was not open to the primary judge to find any of the offences established beyond reasonable doubt, given the circumstances of compliance with the blasting conditions of the EPL and argues that the primary judge’s “preference” for the evidence of Dr Cameron over the evidence of Dr Aimone-Martin as to the ultimate issue was insufficient to find the offences established beyond reasonable doubt (this being raised expressly by Ground 14).
MCC says that such a “preference” was also insufficient to reason as to guilt, given the extensive other evidence bearing on the ultimate issue. MCC says that a “preference” for the evidence of Dr Cameron did not grapple with the substance of evidence given by Dr McKenzie (or submissions made in that respect). MCC points out that Dr McKenzie was eminently qualified in blasting and vibration analysis and modelling, had deep experience in the industry, and gave extensive evidence of the rationale for the design of the Blast both in his record of interview and in oral evidence at the hearing (MCC here refers to Chamberlain v The Queen (1984) 153 CLR 521 at 558 per Gibbs CJ and Mason J; [1983] HCA 7, endorsing remarks of Jenkinson J at Chamberlain v The Queen (1983) 72 FLR 1 at 81-82).
In reply submissions, MCC also complains that, rather than applying the conditions in the EPL that govern the environmental consequences of blasting, the primary judge found that the s 64 offences were established by reference to standards and guidelines that were extraneous to the EPL (in particular, the Project Approval, the BLMP, the Australian Standard and the International Society of Explosive Engineers (ISEE) Blasters’ Handbook). MCC contends that this amounted to an erroneous substitution of criteria, through the “gateway” of Condition O1.1, for the conditions that were expressed in the EPL. MCC says that the findings erroneously amounted to employing Condition O1.1 as a de facto alternative to the blasting conditions in the EPL.
MCC notes that the EPL states that the responsibilities of the licensee, separate to the requirements of the licence, are set out in the POEO Act and its regulations; that it does not state generally that the responsibilities of the licensee under the EPL, for the purposes of blasting, may be found in the Project Approval, the BLMP, the Australian Standard or the ISEE Blasters’ Handbook; and that it contains only limited references to such external criteria. MCC says those references are irrelevant to the charges brought against it.
MCC accepts that, in an appropriate case, relevant evidence as to whether there has been a contravention of a condition of an EPL, such as Condition O1.1, may include expert evidence of applicable industry standards but says that, here, the EPL prescribed a comprehensive regime for the environmental management and permissible environmental consequences of blasting. MCC submits that that regime had to be given paramountcy. MCC contends that, in this context, there is no proper basis effectively to read into the conditions of the EPL or otherwise to impose other standards as a substitute or alternative for the standards set by the EPL to regulate the environmental effects of a blast. MCC argues that this is what, in substance, occurred by finding contraventions assessed against extraneous documents. MCC says that the attention devoted in the principal judgment to other standards and guidelines should not distract from the applicable statutory and licensing framework but that, in any event, the primary judge misapplied section 4.1 of the Australian Standard and the BLMP.
As to the so-called “extraneous documents”, MCC makes the following submissions.
As to the Project Approval, MCC notes that the EPL makes no general reference to picking up or incorporating the Project Approval conditions and does not pick up or apply criteria in Condition 18 of Schedule 3 of the Project Approval or the blast management plan referred to in Condition 25 of the Project Approval. MCC says that the EPL prescribes its own blasting effect criteria but notes that, in any event, Condition 18 relevantly prescribes the same limits as Conditions L4.1-L4.4 of the EPL. MCC points out that the EPL contains only specific and limited references to the Project Approval, namely, to define the boundaries of the “premises”, to identify particular privately owned residences to which noise limits did not apply, and to identify two particular locations for certain construction noise limits.
As to the Australian Standard, MCC notes that Condition M7 of the EPL refers to the Australian Standard but MCC points out that it does so only to specify the method of sampling at monitoring points 31, 32, 33 and 34 and, specifically, not in relation to the use of explosives. MCC cavils with EPA’s submission that the primary judge simply considered the Australian Standard (see its submissions at [75]). MCC says that the primary judge’s findings of contravention of Condition O1.1 directly relied upon section 4.1 of the Australian Standard as setting the relevant standard of competence. It is noted that section 4.1 of the Australian Standard provides:
GENERAL PROVISIONS
All blasts, whether surface, underground or submarine, shall be planned and designed to achieve the required outcome with first considerations being the protection of persons, property and the environment.
Before the commencement of any blasting operation an investigation of the site and its environs, or the item to be blasted, shall be carried out identifying any potential hazards/risks. On the basis of the investigation, a blast management plan incorporating a risk assessment and control measures shall be prepared.
MCC says that the primary judge expressly based her conclusions that Condition O1.1 was contravened in the timing charge in part upon these generally stated paragraphs (referring to the principal judgment at [399]). MCC contends that these paragraphs are not in their terms a “concrete benchmark” as to the noise and vibration to be emitted by a blast. Further, MCC says that, whereas the second paragraph of section 4.1 refers to an investigation of the site being conducted in order to prepare a blast management plan, the primary judge found that the blast design did not meet the second paragraph (see at [399]). MCC says that the second paragraph does not purport to set a standard for blast design, and, as such, the primary judge misapplied that paragraph.
As to the BLMP, MCC notes that the primary judge found the timing charge to be established based upon what her Honour found to be non-compliance with the fifth and sixth dot points of cl 3.3.5 (see above) (see at [391](6)-(8), [392]-[393] of the principal judgment). MCC points out that the EPL makes no reference to the BLMP and submits that the primary judge took the fifth and sixth dot points out of context in making these findings. MCC says that ensuring that the matters in the dot points in cl 3.3.5 are implemented is expressly directed to a particular objective; namely, to meet relevant overpressure and ground vibration criteria (referring to [385] of the principal judgment). MCC complains that her Honour rejected this submission but did not give reasons as to why it was rejected (referring to [392] of the principal judgment) and that her Honour proceeded to find that “[t]he programming of the electronic initiation system for the blast was not ‘fitting, suitable or sufficient for the purpose’” ([398] of the principal judgment).
MCC says that the relevant purpose, as stated in cl 3.3.5 of the BLMP, was to meet the objective of the relevant overpressure and ground vibration criteria (which are referred to in section 4.1 of the BLMP, which in turn identifies the monitoring locations in the EPL). It is noted that the BLMP states:
In accordance with Schedule 3, Condition 18 of [the EPA Act approval], blasting must not exceed the relevant criteria for airblast overpressure (dB (Lin Peak)) and Ground Vibration (mm/s) at any residence on privately owned land. The monitoring locations above [the EPL locations] are representative of residences on privately owned land and as such, will be used to assess compliance with blasting criteria. The permanent blast locations may be reviewed and relocated based on community complaints or following landownership changes. [This last sentence is not included in the extract set out in the principal judgment at [95].]
MCC points out that Schedule 3, Condition 18 of the Project Approval contains the same overpressure and ground vibration criteria as Conditions L4.1-L4.4 of the EPL; and that the BLMP also states that the principal legislation is the POEO Act and sets out the (previously) applicable conditions of the EPL.
MCC says that, absent reasons for rejection of the submission summarised at [392] of the principal judgment, it is not apparent why the primary judge did not accept that, upon a proper reading of section 4.1 of the BLMP, that section was complied with (which it says equated with compliance with the EPL) (MCC here citing Beale v Government Insurance Office of NSW (1997) 48 NSWLR 430 at 443, 444 per Meagher JA).
Pausing here, EPA says that the BLMP was relevant because EPA contended that the Blast was not designed in a competent manner in part because it did not conform to the BLMP, in particular cl 3.3.5, resulting in a high level of noise and airblast overpressure. Hence, EPA does not accept that this was an “extraneous” document.
As to the ISEE Blasters’ Handbook, MCC notes that the primary judge’s conclusion underpinning the stemming length charge included substantial reliance upon a blast ratio that was “significantly less” than that recommended in the ISEE Blasters’ Handbook, her Honour finding that the reduction of stemming length, by reference to that Handbook, was a “significant change” and a “concern” (see at [413](5), [416] of the principal judgment).
MCC points out that the EPL makes no reference to the ISEE Blasters’ Handbook. MCC emphasises that the Handbook comprises many hundreds of pages and complains that it is unclear which part of the extracts substantiates the “rule of thumb” upon which the primary judge based her findings in relation to the stemming length charge (referring to [117]; [416] of the principal judgment).
Finally, as to the Approved Design Standard, MCC notes that the primary judge found that the stemming length charge was established, in part, by utilising the 3.0m stemming length for the blast holes, because this deviated from the design standard, which specified a stemming length of 3.5m ([415]-[416] of the principal judgment). MCC points out that the EPL does not refer to a design standard or to the design of a blast. MCC submits that it is inappropriate to invoke the EPL to govern the specific processes that were made the subject of the stemming length charge rather than the environmental consequences. MCC argues that the design standard was never intended to be applied rigidly and irrespective of the suitability of its terms. MCC notes that the “Approved Design Standard” was selected in adherence with an internal procedure maintained by MCC for planning, design and record keeping of blasts (the Procedure) (referring to [107]-[108] of the principal judgment). MCC emphasises that the design standards “define the target parameters for drill pattern design” and says that a drill pattern design does not include stemming height (which is a loading parameter rather than a drill pattern parameter). It is noted that, under the Procedure, a design standard was to be used to complete the design of the drill pattern, with an objective to deliver a drill pattern design within 10% of the target design parameters (see [108] of the principal judgment).
MCC also notes that its checklist for drilling and blasting design envisaged that the design parameters could be modified (referring to [113] of the principal judgment) and points out that Dr McKenzie did not accept that the variation from the design standard amounted to a failure to carry out the blasting in a competent manner.
MCC made it clear at the hearing of the appeal that it does not challenge the factual findings on which the primary judge’s findings of breach for lack of competence were made (for example, that the blast holes were overloaded to a particular extent). Rather, MCC submits that, on those findings, the primary judge erred in finding that breach of Condition O1.1 was established beyond reasonable doubt. With respect to the primary judge, I consider that submission to be made good.
As noted above, I have concluded that the obligation of competence in Condition O1.1 has work to do (in relation to the blasting activity) beyond the specific obligations imposed by the limit conditions for blasting and that her Honour did not err in concluding that compliance with the specific limit conditions did not provide a defence or implied defence to the charges nor did it of itself necessarily amount to compliance with the overall obligation of competence. However, in my respectful opinion, her Honour did err in concluding that, in the circumstances, it was established beyond reasonable doubt that there was a contravention of Condition O1.1 in relation to the s 64 charges.
As a general observation, a departure from the Approved Design Standard was not in itself an indication of a lack of competence, particularly when the circumstances of the Blast required a departure from the normal standard and the design of the Blast (in particular the deviation from the standard blast design) was carefully modelled by a competent and qualified expert, Dr McKenzie. As MCC submits, its initial documents contemplated that there might be variations from the standard design (and exceedances of limits, for which notification to the other mines would be necessary).
While I do not accept that her Honour erred in taking into account, in assessing competency, the so-called extraneous documents (since competence must surely be tested by reference both to MCC’s internal procedures and to recognised or accepted industry practice), documents such as the BMS BTM recognised that there could be exceedances of limits and the Blast Design Standard and Plan contemplated that an amendment might need to be made to the standard design for blasting.
The fact that there was not compliance with the Australian Standard in certain respects or the procedures set out, for example, in the ISEE Blaster’s Handbook, also does not of itself indicate a lack of competence, particularly if there was a considered reason for so doing.
Addressing each of the three s 64 charges separately, I am of the following opinion.
As to the timing charge, the core of EPA’s contention, which her Honour accepted, is that the use of fast timing did not meet the objective of a good progressive burden release and meant that the maximum instantaneous charge was not limited to conservative and “proven” levels ((cl 3.3.5) of the BLMP).
In so finding, her Honour preferred Dr Cameron’s evidence as to the use of fast timing resulting in a foreseeable large increase in the maximum instantaneous charge. However, the effect of fast timing had been considered and modelled by Dr McKenzie. The fact that Dr McKenzie was not wholly confident as to the modelling carried out in respect of the fast timing (coupled with reduction in the stemming length) does not bespeak a lack of competence. Dr McKenzie appears to have carefully considered the likely impacts (even to the extent of seemingly agonising over the issue) and had ultimately concluded that fast timing was appropriate in order to achieve the designed outcome (of overcoming the fragmentation issues which posed safety risks while at the same time meeting the limit conditions in the EPL). The fact that Dr McKenzie expressed this as a “learning opportunity” does not indicate some reckless adoption of fast timing (and the fact that the limit conditions were met indicates that his predictions were reasonable).
Further, Dr Cameron’s opinion that fast timing would not provide for “good progressive release” goes in essence to the efficacy of use of fast timing. Whether fast timing may have been less efficacious in achieving good progressive release is not the test for whether there was a lack of competence in designing (and carrying out the Blast using fast timing). Competence requires an assessment of risk as part of the assessment of how the Blast was to achieve its objectives. That aspect of competence was met in my opinion by Dr McKenzie’s work.
Insofar as her Honour took into account, as part of the finding of lack of competence on the timing charge, the failure to consider the personnel at the Boggabri Coal Mine (see Ground 10) (see principal judgment at [399]), it is difficult to see how the fact that Dr McKenzie was not directed to consider the personnel at the Boggabri Coal Mine in his modelling (a finding not challenged by MCC) evidenced a lack of competence in the design of the Blast in circumstances where impact on neighbouring mines was the subject of MCC’s internal procedures for notification and those procedures were followed. In any event, to the extent that Dr McKenzie considered (and recommended) the appropriate exclusion zone, there was in fact consideration by him of the impact of the Blast for contractors on the northern part of the Boggabri Coal Mine. In practical terms Dr McKenzie did take into account the impact on personnel at the Boggabri Coal Mine in that sense.
As to the carrying out of the Blast itself, there is no suggestion that there was a lack of competence in how the timing of the Blast was set, in the sense that it followed the design modelled by Dr McKenzie (i.e., it is not as if there was a departure from Dr McKenzie’s specification of timing). The criticism is in substance as to the design of the Blast including the use of fast timing in the first place. The concerns expressed by the shotfirer, Mr Welch, are not to the point. They do not establish a lack of competence.
Insofar as her Honour found a breach of Condition O1.1 on the timing charge by reference to a breach of section 4.1 of the Australian Standard (as extracted at [175] above), the evidence established that Dr McKenzie planned and designed the Blast to achieve the required outcome; that consideration was given to protection of persons (first, the safety of workers for whom the risk of fragmentation posed a safety issue and, second, personnel within the appropriate exclusion zone) and the environment (by reference to the need to comply with licence conditions). Furthermore, there was a blast management plan (the BLMP) which complied with the requirement for such in the Australian Standard.
As to the stemming length charge (Ground 5) the same general observations as to the timing charge apply. There is no dispute that the reduced stemming length was a significant change from that used in the previous blast and a reduction in the length provided for in the standard design plan. However, the reduction in stemming length was, again, a decision made following Dr McKenzie’s careful review and modelling of the design parameters for the Blast. In other words, it was a departure from the standard length for considered reasons having regard to the objectives of overcoming the fragmentation issue while at the same time taking into account environmental risks and safety.
I make the same observations as to the reliance placed by her Honour on the lack of modelling conducted to the Boggabri Coal Mine (which was not within the monitoring points specified in the EPL). As to the lack of documentation or failure to sign off or appropriately complete the drill and blast design checklist, which Dr Aimone-Martin accepted demonstrated that the design procedure was not “formally managed”, the evidence established that the design procedure was in fact managed through the process involving Dr McKenzie’s retainer. The suggestion that failure to include a date in the checklist amounts to a lack of competence in the design and carrying out of the Blast does not take adequately into account the actual steps taken in the design of the Blast.
For those reasons and, again, the reasons in relation to Grounds 7-14, Ground 5 is made good.
Finally, as to the overloading charge, again I make the same general observations as those made in relation to the other two s 64 charges.
The overloading charge is in a somewhat different category to the other two s 64 charges. Her Honour found that lack of competence was established beyond reasonable doubt because approximately 19% of the blast holes were overloaded with more than 10% of the amount of explosives provided for in the design of the Blast and that this was contrary to the loading and stemming blast holes procedure ([445]). Her Honour went on to say that such overloading was not “fitting, suitable or sufficient for the purpose” having regard to the possible environmental consequences. Her Honour found that the loading did not promote the objectives in the Australian Standard (see [446](3)).
Her Honour’s conclusion that there was a lack of competence in this regard thus appears to have been predicated largely on the departure or deviation from the design of the Blast (though her Honour also took into account that practical steps could have been taken to track and control the amount of explosives headed in each hole and that the blast crew did not take these steps) (see [446](7)-(8), and (10)-(11)). (I do not ignore the fact that her Honour also relied on the lack of modelling as to the Bogabbri Coal Mine in relation to this charge but repeat the observations already made as to this issue.)
The difficulty with the conclusion that it was established beyond reasonable doubt that the loading of the blast holes was not undertaken in a competent manner (and hence that there was a breach of Condition O1.1) by reason of the fact that the blast crew overloaded the Blast holes to the extent that her Honour found is that the conclusion proceeds in essence on the fact that there was a percentage departure from that which was planned and controlled in the loading procedures. Deviation from the design plan was not necessarily an indication of lack of competence. There was no expert opinion from which to draw the conclusion that a deviation of 10% from the target design parameters would be regarded as incompetent. Nor would the apparent failure to take (or effectively to take) practical and reasonable steps to track and control the amount of explosives loaded into each blast hole necessarily evidence a lack of competence to the criminal standard. Moreover, Dr Aimone-Martin pointed out that the 10% variance applied only to drill pattern and loading parameters and not to charge weights loaded into blast holes, explaining that the quantities of explosives loaded into blast holes relate directly to, or are a calculated quantity of, drill pattern (drilled burden, spacing, drill holes diameter and hole depth) and loading parameters (stem length and powder factor) set out in the Standard Fixed Pattern.
A separate issue arises as to causation since, while accepting that overloading of explosives may increase the risk of flyrock for example, there was no evidence to establish where the particular overloaded holes were located and what impact their location might have in this regard. It is relevant to note that in Dr Cameron’s opinion, overloading of some of the blast holes would not have caused the increased airblast overpressure from the Blast because the majority of the airblast would have been due to the blast design which reduced the stemming length and utilised “fast timing” (as noted earlier).
The finding that the blasting activity was not conducted in a competent manner because of the overloading is not made good by the expert evidence in my opinion.
For this reason, Ground 6 is also made good.
Ground 7: The primary judge erred in finding at Judgment [357] that the phrase “competent manner” in EPL Condition O1.1 was to be construed in the light of possible environmental consequences of the acts or omissions in question.
MCC candidly referred to Ground 7 as a drafting precursor to Ground 8.
By Ground 7, MCC criticises the breadth of the proposition that, in the context of a licence authorising and regulating the carrying out of coal works, the nature of those activities and possible environmental consequences of a breach of the condition authorising and regulating their carrying out, give colour and context to the meaning of “competent” in Condition O1.1 at [357] of the principal judgment. In any event, MCC argues that, where the environmental consequences are identified, measurable, and the subject of the blasting activity (namely airblast overpressure and vibration) the limit conditions, Conditions L4.1-L4.4 are given no work to do. (I have already addressed this last argument above.)
MCC notes that, throughout the principal judgment, the possible environmental consequences were identified by reference to the experience of the Blast from personnel at Boggabri Coal Mine, as well as residents at neighbouring properties ([61] of the principal judgment) and that the manifestation of the consequences was noise (and possibly vibration) ([173], [176], [181], [183], [186], [188], [391](8), [392], [469], [470], [472], and [484] of the principal judgment).
MCC submits that there were no “possible environmental consequences of the acts or omissions in question” beyond aspects that were specifically identified and specifically regulated in the EPL.
EPA says that her Honour’s conclusion as to the meaning of the phrase “competent manner” was evidently reliant on the reasoning in the authorities her Honour considered from [337] to [357] of the principal judgment. EPA submits that in the light of what was said in Huntsman (per Craig J at [65]); Collex (per Bignold J at [22]-[24]); and Genkem (per Gleeson CJ), there was no error in the approach taken by the primary judge in the conclusion reached at [357].
Further, EPA says that there is no principled basis on which to draw a distinction between environmental consequences “which [are] not otherwise identified, measurable and limited in the operation of the mining activity” (adopting the language used in MCC’s submissions at [58]) and other environmental consequences; and says that there is no basis to hold that the consideration of any noise and vibration outside of the four identified monitoring positions that form the basis of Condition L4.1 is therefore excluded from the approach to environmental consequences.
Ground 8: In the alternative to the preceding ground, if the primary judge was correct to have found that the phrase “competent manner” in EPL Condition O1.1 was to be construed in the light of possible environmental consequences of the acts or omissions in question, the primary judge erred:
(a) In failing to find that Conditions L4.1-4.4 were directly relevant to such consequences; and that
(b) In failing to find that in circumstances where the blast the subject of the charges satisfied the limits set out in those conditions, MCC was not in breach of EPL Condition O1.1; and
(c) In making a finding of breach in the absence of any evidence of environmental harm, which absence was a finding made (and/or confirmed) in the subsequent Sentence Judgment at [113].
On the premise that (contrary to MCC’s contention in Ground 7) possible environmental consequences are relevant to determining whether the activity was undertaken in a competent manner, MCC submits as follows.
As to Ground 8(a), MCC argues that, if the possible environmental consequences manifest in noise and vibration, and that noise and vibration is specifically addressed in the limit conditions of the EPL, there is no warrant to depart from the specifics of Conditions L4.1-L4.4 to a “more amorphous” assessment, especially when that assessment leads back to noise and vibration (the very subject matter of Conditions L4.1-L4.4).
As to Ground 8(b), MCC argues that, if it be the case that the noise and vibration limits are at least relevant, the fact of compliance with the conditions of the EPL with respect to noise and vibration is demonstrative of compliance with Condition O1.1.
As to Ground 8(c), MCC says that, in the circumstances of the present case, no wider or different manifestation of potential consequences than noise and vibration were identified in the principal judgment or reported. MCC refers in this regard to the sentence judgment, which MCC says demonstrates the superimposition of the noise and vibration conditions with the notion of potential environmental consequences.
MCC notes, first, that at [113] of the sentence judgment, there was a finding that there was insufficient evidence supporting proof beyond reasonable doubt that the commission of the offences caused either of the two types of actual harm to the environment which would not have been caused anyway by the firing of the Blast. Second, MCC notes that, at [84], [98] and [114]-[116] of the sentence judgment, alleged damage to a biodiversity corridor was considered and there was a finding at [115] of the absence of such damage. MCC further says that the aspect of the matter dealt with at [114]-[116] of the sentence judgment (alleged damage to the biodiversity corridor) is irrelevant to the question of potential environmental harm for the purposes of the principal judgment because no reference is made to that as a potential harm in the principal judgment. Third, MCC refers to [117]-[120] of the sentence judgment, where a finding as to the absence of damage from noise and/or vibration was made with respect to laypersons, and at [121] insofar as the workers at the Boggabri Coal Mine were concerned.
MCC accepts that there was reference to the biodiversity corridor in the principal judgment at [148], [381] and [479(2)] but says that this was not in the context of potential harm for the purposes of considering the matter of competence.
As to Grounds 8(a) and (b), EPA says that in effect, these revisit the arguments put by MCC in relation to previous grounds (and its response thereto remains the same).
As to Ground 8(c), EPA says that MCC’s argument (insofar as it asserts the need for evidence of actual environmental harm in order to substantiate the primary judge’s conclusion) is misguided. EPA submits that what is relevant are the potential environmental consequences which give context to the obligation. EPA says that Condition O1.1 is directed towards regulating risk and that it is not necessary for there to be proof of the actual environmental harm. EPA points to cases on sentencing (following a plea of guilty) where a defendant has been sentenced for breaches of Condition O1.1 in relevantly the same terms and there has been no finding of actual harm to the environment (here referring to Environment Protection Authority v Elf Farm Supplies Pty Ltd [2017] NSWLEC 60 at [36] and [73]; Environment Protection Authority v GrainCorp Operations Limited [2019] NSWLEC 143 at [152] and Environment Protection Authority v Whitehaven Coal Mining Limited [2019] NSWLEC 27 at [207]).
EPA submits that MCC’s argument does not acknowledge that a central consideration of Condition O1.1 is the manner (i.e., the way or process) in which the relevant licensed activities were carried out. EPA argues that, while potential environmental consequences are also part of the assessment, they are not exclusively so. EPA submits that, as a matter of construction, it is open to find that an activity was not carried out in a competent manner irrespective of potential environmental consequences.
In my opinion, there was no error by the primary judge in considering, when determining whether lack of competence had been established, the potential environmental consequences of the conduct. Such an approach was well supported by the authorities to which her Honour referred.
As to Ground 8(1)(a), while her Honour did not accept that the limit conditions were “in effect, a proxy for Condition O1.1 in relation to the subject matter of blasting”, her Honour clearly had regard to the fact that there had been compliance with the limit conditions. Hence the complaint that her Honour did not find that Conditions L4.1-L4.4 were “directly relevant” to the possible environmental consequence of the conduct impugned by the charges has no foundation.
As to Ground 8(b), this reagitates in effect the same arguments considered above, as to compliance with the limit conditions amounting to a defence or establishing compliance with Condition O1.1 and I repeat my conclusion as to this issue.
As to Ground 8(c), a finding of lack of competence can be made by reference to possible environmental consequences. It is not necessary for there to be a finding (or evidence) of actual environmental harm.
Ground 8 is not made good.
Ground 9: The primary judge erred in finding at Judgment [290], [399], [446(3)] and [484(4)(a)] that MCC breached EPL Condition O1.1 due to non-compliance of the blast design with the identified Australian Standard AS 2187.2-2006 “Explosives - Storage and use Part 2: Use of explosives” (Australian Standard) section 4.1.
MCC says that the limits expressed by reference to the Australian Standard (see as set out at [102]-[105] of the principal judgment) are identical to the limits expressed in Part 3A of the Project Approval and the EPL ([101] in relation to vibration limits; [104] in relation to airblast limits).
MCC argues that section 4.1 of the Australian Standard (extracted at [97] of the principal judgment) provides no independent basis for establishing an absence of competence because, in its substantive effect, the notion of “first considerations being the protection of persons, property and the environment” was actually embodied in the terms of Part 3A of the Project Approval, the conditions of the EPL, and the provisions of the BLMP.
It is submitted that the error is compounded in regarding (as a breach of a competence obligation, having recourse to the Australian Standard) only the aspect within the Australian Standard that is concerned with general objectives as distinct from specific controls.
Thus, MCC submits (with the additional reasons advanced with respect to Ground 10 – see below) that it was erroneous to regard the question of competence as a function of compliance with the Australian Standard, especially in light of the fact that the Australian Standard set no regulatory limits beyond those that were contained in the Project Approval or the EPL.
EPA submits that the fact that the Project Approval and the EPL had been created against the backdrop of the Australian Standard does not prevent specific consideration of the Australian Standard (and whether it was met). EPA argues that non-compliance with the Australian Standard is relevant to a finding of a lack of competence. EPA says that it is not to the point that the Australian Standard did not set “regulatory limits”, arguing that it provided a concrete and objective benchmark by which to address competence (EPA here referring also to the evidence of Dr Cameron). EPA says that such an approach prevents the enquiry into competence from “roaming at large” and grounds the enquiry into what is required in a particular industry.
Finally, EPA says that the existence of limits in the EPL does not preclude regard to the Australian Standard. EPA says that MCC’s assertion to the contrary is at least partly informed by its underlying contention that L4.1-L4.4 are essentially determinative of the question of competence (a proposition that EPA maintains is incorrect).
For ease of reference, I note that the findings referred to in Ground 9 are: at [290], the finding that MCC “failed to consider personnel at the Boggabri Coal Mine, located approximately 2.9km from the [B]last” and that this meant that the design of the Blast did not meet an overriding provision of the Australian Standard; at [399], the finding that the Blast design did not meet either the first or second paragraph of section 4.1 of the Australian Standard; at [446](3), that “the loading and stemming blast holes procedure should be approached in a manner that would promote the paragraphs in section 4.1 of the Australian Standard” and that the loading and stemming did not approach in that manner; and, at [484](4)(a), that the manner of dealing with the explosives was not consistent with the Australian Standard.
In my opinion, there was no error in her Honour having regard to the Australian Standard when assessing whether the charges of lack of competence in the conduct of the Blast were met. That is so notwithstanding that the limit conditions in the Australian Standard may have mirrored those in the Project Approval, the EPL or the BLMP. The question of competence in the manner in which an activity is carried out is not confined to a consideration of whether particular outcomes (or limit conditions) are met. I see no error in considering the question of competence by reference (among other things) to what the Australian Standard provided even though it sets no regulatory limits. As already noted, consideration of what amounts to competence (perhaps analogous to consideration of whether there has been professional negligence in the context of claims against doctors, lawyers or other professionals) can in my view properly take into account recognised and accepted practice within the relevant profession or industry. Ground 9, to that extent, is not made good.
Ground 9, in its terms, challenges the finding of breach of Condition O1.1 due to non-compliance with section 4.1 of the Australian Standard. This was but one of the matters relied upon by her Honour for the finding of lack of competence. I have already addressed the grounds of appeal relating to the three s 64 charges and the submissions made as to the question of breach of the Australian Standard in that context.
As already noted, the evidence establishes that the BLMP did incorporate a risk assessment and control of measures; and that the design of the Blast was planned and designed to achieve the “required outcome” with consideration as to the protection of persons, property and the environment. For example, Dr McKenzie modelled for flyrock and recommended an extension of the personnel clearance zone as a safety measure, which was implemented, including for contractors in the northern part of the Boggabri Coal Mine.
I do not understand her Honour’s finding of breach of Condition O1.1 to be solely predicated on the finding of breach of the Australian Standard. To the extent that it was, for the reasons given earlier, I consider that would have been in error.
Beyond this, Ground 9 adds nothing to the earlier grounds.
Ground 10: The primary judge erred in finding at Judgment [415] that deviating from the design standard in the Blast Management Plan constituted a breach of EPL Condition O1.1 per se, or alternatively in the light of the fact that the Blast Management Plan was formulated with the intent to meet the relevant overpressure and ground vibration criteria set out in EPL Conditions L4.1-4.4, which were satisfied in relation to the blast event the subject of the charges.
Ground 11: The primary judge erred in finding at Judgment [420] that there was a breach of s.64 of the POEO Act through a contravention of MCC’s design standard.
Ground 12: The primary judge erred in finding at Judgment [450] that there was a breach of s.64 of the POEO Act constituted by a contravention of MCC’s loading and stemming blast holes procedure.
As to Ground 10, her Honour found (at [415] of the principal judgment) that MCC contravened Condition O1.1 of the EPL because the stemming length used for blast holes deviated from the design standard set out in the BLMP. MCC argues that, it does not follow, as a matter of logic, that not complying with the BLMP sounds in a finding of non-competence (even assuming that the BLMP did not contemplate variation from its course).
MCC submits that the following provisions of the BLMP are of particular relevance: that its objective is to ensure compliance with conditions of the Project Approval and the EPL ([89] of the principal judgment); that there were blast conditions in the Project Approval (pp 7-8 of the BLMP); that there was an EPL, and its terms (pp 11-12 of the BLMP and [90] of the principal judgment); that certain standards were to be applied (including the relevant Australian Standard and also, relevantly, the BMS BTM) ([91] of the principal judgment); that aspects of stemming, timing and loading were to ensure compliance with regulatory limits, referencing back to the blasting requirements in the Project Approval ([92] of the principal judgment); that blast events were designed to meet the relevant overpressure and ground vibration criteria, in certain ways ([94] of the principal judgment); that the environmental assessment predicted that blast vibration was likely to remain well below the criteria for all privately owned residences, and similarly overpressure was likely to be less than the criteria for all privately owned residences (p 13 in the original EPL before its variation – see above); that monitoring was controlled in Chapter 4.0 (p 22 of the BLMP); that there was to be compliance with the BMS BTM (p 23 of the BLMP); and that “the key management measure for the mitigation of cumulative blast impacts will be scheduling of blasts to ensure each mine fires their blast at separate times”.
MCC says that the critical aspect of the finding of lack of competence by non-compliance with the BLMP was by reference to cl 3.3.5 of the BLMP, summarised at [94] of the principal judgment, noting that findings were made by the primary judge as to non-compliance with various aspects of cl 3.3.5 of the BLMP (see [390] and [391]-[393] of the principal judgment).
MCC argues that, to find an absence of competence because of non-compliance with the BLMP, takes Condition O1.1 “too far” because the BLMP was not a creature of the EPL and, in its terms, was not prescriptive either per se or sufficiently to demonstrate lack of competence.
MCC submits that this is demonstrated by consideration of cl 3.3.5 of the BLMP (see [36] above).
MCC notes that the bullet points in cl 3.3.5 of the BLMP are prefaced by the words “[t]his objective will be met by ensuring that …”. MCC says that they should not be construed as prescriptive components, non-adherence to which demonstrate an example of lack of competence; rather, that “blast events are designed to meet the relevant overpressure and ground vibration criteria” and, again, MCC emphasises that those criteria were in fact met.
It is submitted that, viewed in this way, cl 3.3.5 of the BLMP is no different to the example given by Gleeson CJ at Genkem at p 42A-B. There, his Honour said:
Equally, however, it is understandable that both the Authority and a holder of a licence might desire to avoid detailed prescription by the Authority in respect of matters which, subject to certain minimum standards, should be left to the commercial judgment of the licence holder. The present case provides an example. I do not understand it to have been suggested that the construction of a bund around the area where the leaking drums were stored was, as a matter of technology, the only possible way of preventing, or containing the effects of, leakage, or the only possible kind of storage that could be described as proper and efficient. Rather, it was pointed to as an obvious and relatively inexpensive way of improving the storage facilities. As a matter of policy, it might well be regarded as more desirable to impose a general requirement that potential pollutants be stored in a proper and efficient manner than to dictate a specific form of storage. As I have indicated, however, the outcome of the present dispute is to be determined, not by considerations of policy, concerning which there might be different views reasonably available, but by questions of legal power.
Finally, MCC says that, even if there may be said to have been a breach of the bullet points in cl 3.3.5 of the BLMP, that does not amount to evidence of lack of competence because: the circumstance to which the Blast was directed was an unusual circumstance (see [409] of the principal judgment) and the Blast met the specific conditions prescribed in the EPL (noting that her Honour referred to Dr Cameron’s concession that “those circumstances alone were indications of competence on the part of [MCC]” (at [275] of the principal judgment)).
MCC submits that in those circumstances, recourse to the BLMP does not assist in determining the question of competence; and says that, even if it does, the components of the BLMP relied upon by EPA do not, properly construed, give rise to such a finding.
Grounds 11 and 12 impugn the specific findings regarding non-compliance with procedures set out in the BLMP. MCC submits that these demonstrate error for the reasons put forward in its earlier submissions.
EPA contends that, as a matter of logic, “not complying with the BLMP” can sound in a finding of non-competence. It is submitted that MCC’s internal policies and procedures provide a reasonable (and reasoned) basis against which to judge competence. It is again submitted by EPA that such an approach prevents the enquiry into competence from roaming at large and grounds the enquiry into what is required in a particular industry, and, for internal policies and procedures, that it grounds the enquiry in the particular circumstances of the premises to which the EPL relates.
Thus, EPA argues that it is not the case that “to find an absence of competence because of non-compliance with the [BLMP] is to take Condition O1.1 too far” (as MCC contends). EPA says that the fact that the BLMP is not “a creature of the EPL” is of no significance. EPA submits that the assessment of compliance with Condition O1.1 is not limited to the terms of the EPL and the contents of documents that are “creatures of the EPL”.
EPA argues that there is no basis for MCC to draw the distinction between “prescriptive” and “non-prescriptive” elements of the BLMP. EPA says that the criteria within the BLMP on which the EPA relied were capable of being complied with, as the evidence of Dr Cameron made clear, including if it was a criterion describing “matters or manners in which ‘this objective will be met’...”.
EPA argues that compliance with Conditions L4.1-L4.4 does not assist MCC on these grounds; nor does the fact that the primary judge found that the Blast was directed towards an “unusual” circumstance. EPA says that the BLMP was to be applied in a range of circumstances and that the licence condition requiring competence was not excluded by the circumstances of the Blast (unusual or otherwise).
In my opinion, the primary judge did not err in having regard to compliance (or otherwise) with the BLMP when assessing whether the charges of lack of competence were established (for the reasons I have already given in relation to earlier grounds). Although there is force in my view to MCC’s complaint that the bullet points in cl 3.3.5 of the BLMP do not set out prescriptive elements (since, in their terms, they indicate how the relevant objective (of designing blast events to meet the relevant airblast overpressure and ground vibration criteria) was intended to be met), the specification of those matters as being ones by which it was contemplated that the stated objective “will be met” makes it relevant for those matters to be taken into account when considering competence or lack thereof in the design and carrying out of the Blast. I have already considered (in the context of earlier grounds relating to the s 64 charges) the reliance placed by her Honour on the matters the subject of Grounds 10-12 as part of her Honour’s conclusion that a lack of competence was established and I do not here repeat those matters.
As already noted, Dr McKenzie modelled the Blast to achieve the criteria or objective set out in the BLMP. I do not accept that deviation from the design standard in the BLMP, in circumstances where this was not a standard blast, is a sound indicator of lack of competence. Therefore, to the extent that her Honour’s findings were based on such a deviation then Grounds 10 and 11 are made good (though they take matters no further than the conclusion reached on Grounds 4-5 above).
As to Ground 12, again I have dealt with the substance of the complaint here raised when dealing with Grounds 5 and 6 above. For the reasons there set out, Ground 12 is made good.
Ground 13: The primary judge erred in finding at Judgment [399], [417] and [448] a breach of EPL Condition O1.1 in failing to consider impacts at locations other than the specific monitoring locations identified in and for the limits set out at EPL Conditions L4.1-4.4, and in particular at the Boggabri mine.
MCC points out that the monitoring locations are prescribed in the EPL, not in Part 3A of the Project Approval, and that, in the Project Approval, limits on exceedances are provided but there is no specification of the point at which measurements are made (other than by reference to “residents on privately owned land” and “all public infrastructure” (referring to Condition 18)).
MCC submits that, where specific monitoring points are identified in the very licence that is the subject of a finding of breach, it cannot be said that an indicator of non-competence is not having monitored limits in other locations (it accepts that this submission is not dissimilar to its earlier submissions as to the specific prevailing over the general).
In relation to those other locations, MCC makes the following submissions.
As to the employees at the Boggabri Coal Mine (persons potentially impacted by the Blast, to which her Honour referred at [399], [417] and [448] of the principal judgment), MCC cavils with the finding by the primary judge that they were not considered (although, as earlier noted, MCC’s position was that it did not challenge her Honour’s factual findings). MCC argues that consideration of those employees was in fact undertaken through the mechanism of the BMS BTM (referring to the individual protocol for compliance with the relevant mine’s own blast management procedures and the process for notification between the three mines inter se). MCC notes in this regard the finding that notification was given of the Blast to the Boggabri Coal Mine (see principal judgment at [77]).
MCC also points to the fact that (as noted earlier) in modelling for the Blast, Dr McKenzie recommended an extension of the personnel clearance zone which extended to contractors present in the northern part of the Boggabri Coal Mine, resulting in an extension of the exclusion zone from 500m to 700m (see [60] and [81] of the principal judgment). (MCC says that the finding of the absence of modelling (at [391](4) of the principal judgment) related to modelling as to timing, as derived from the BLMP (as addressed in Ground 10).)
MCC argues that, in those circumstances, there was in fact no need for specific consideration for this specific blast event of the miners at Boggabri Coal Mine because the criteria were met. Insofar as “sensitive” receptors are concerned, MCC notes that workers on an adjoining mine complex were not included as such in the Australian Standard at Appendix J (referring to sections J4.5 and J5.4 of the Australian Standard).
As to the other non-mining related receptors (see [188] of the principal judgment), the location of which was identified in the map extracted at [61] of the principal judgment, MCC argues that compliance at the EPL monitoring points, being more proximate to the Mine, serves as a “proxy” for compliance with Condition O1.1. MCC argues that, if there is compliance at more proximate “sensitive” receptors to the relevant prescribed limits, then there is no need for consideration of any further receptors.
Accordingly, MCC submits that there is no foundation for a finding of a breach of Condition O1.1 in terms of competence by a failure to take into account impacts at locations other than those that were specifically identified in the EPL.
As to Ground 13, EPA says that no appellable error in the fact finding exercise has been adequately identified by MCC but argues that, in any event, as a matter of construction of the EPL, the contention that compliance with the licence condition did not require MCC to take into account such factors should not be accepted for the following reasons.
First, EPA submits that, in light of the acceptance by her Honour of Dr Cameron’s evidence, there is no error in the primary judge’s conclusions on this issue (at [399] in relation to the timing charge; at [417] in relation to the stemming length charge; and at [448] in relation to the overloading charge). EPA submits that no error of law has properly been identified in the approach the primary judge took to the expert evidence; and that the fact that other steps were taken by MCC (as referred to in MCC’s submissions at [94]-[95]) is not an adequate answer on this issue.
Second, EPA submits that there was no error in the primary judge taking account of the evidence as to the readings recorded at the non-mining related receptors (see [288] and [298] of the principal judgment) when considering the consequences of the Blast.
Third, EPA points out that the BMS BTM was a procedural co-ordination document between the three mines. EPA says that it did not excuse MCC from the need to consider the impacts of this particular Blast even if there had otherwise been compliance with the procedure.
Fourth, EPA submits that the fact that Dr McKenzie’s modelling for exclusion zones considered the potential impacts of flyrock on the northern part of Boggabri Coal Mine makes more stark the failure of MCC to have modelling done that considered airblast and overpressure impacts on the Boggabri Coal Mine for the Blast. EPA points out that the primary judge made the findings about failure to consider the impacts on Boggabri Coal Mine despite noting the modelling for the exclusion zone (referring to [391](4)).
The difficulty with the finding of lack of competence by reference to the failure to consider the potential impact of the Blast at other locations than the specified monitoring points is twofold. First, as MCC points out, Dr McKenzie did consider the impact of the Blast (at least in terms of modelling for the consequences of flyrock from the Blast) on other mine personnel, although the modelling for airblast pressure and ground vibration was solely by reference to the specified monitoring points; and there was consideration as to the position of personnel at the Boggabri Coal Mine at least to the extent of compliance with the BMS BTM and notification in advance of the Blast. Second, and in my opinion more significantly, it is difficult to see that there was a lack of competence in not modelling for airblast pressure and ground vibration at non-specified monitoring points given that the EPL had been amended so as to limit the monitoring points to the four identified points.
In those circumstances, Ground 13 is made good.
Ground 14: The primary judge erred in making the findings of guilt to the criminal standard in circumstances where:
(a) As a function of the proper construction of the EPL, there was reasonable doubt on the issue of the construction of the proper operation and effect of the EPL;
(b) There was no doubt concerning the compliance of the blast with specific limits therefor set in the EPL;
(c) On the expert evidence before the Court there was reasonable doubt regarding the question of undertaking the blast competently.
Ground 14(a) is raised as an alternative to the construction argument, the subject of Grounds 1-6. MCC submits that: where there is an allegation of failure to undertake an activity in a competent manner and that activity is otherwise controlled by prescribed limits; and where satisfaction of the limit conditions was conceded by EPA’s expert to be indicative of competence (see [275] of the principal judgment), there can be no finding on the criminal standard of failure to undertake that activity in a competent manner.
Ground 14(b) again raises the fact (emphasised more than once by MCC) that the prescribed limit conditions were satisfied. Irrespective of its argument that the specific overrides the general, MCC argues that there would be no foundation for any finding that the specific provisions of the EPL have no role to play in and for the general provisions and hence MCC argues that even if Conditions L4.1-L4.4 do not modify Condition O1.1 (so as to show satisfaction of the general condition by reason of compliance with the specific conditions), it cannot be said that the specific conditions are of no relevance to the question of competence. In those circumstances, MCC submits that it cannot follow that there can be a finding on the criminal standard of a breach of s 64 of the POEO Act insofar as it is concerned with compliance with Condition O1.1.
Ground 14(c), raised in the alternative to the above, involves the submission that, on the expert evidence, there was reasonable doubt regarding the question of competence. MCC submits that the language by which her Honour resolved the dispute between the experts (Dr Cameron for EPA and Dr Aimone-Martin for MCC), namely the expression of a preference for the view of Dr Cameron over that of Dr Aimone-Martin (see [304] of the principal judgment), is insufficient for a finding of guilt to the requisite criminal standard. MCC submits that unless the opinion of Dr Aimone-Martin was rejected, or was categorised as not constituting reasonable doubt, the finding of guilt on the question of competence could not be made out. In this regard, MCC contends that, on the findings made by the primary judge, guilt beyond reasonable doubt was not made out.
As to Ground 14(a), EPA says that the questions arising in this case, particularly in relation to Grounds 1 to 6, are readily characterised as questions of law (referring to Collector of Customs v Agfa-Gevaert Ltd (1996) 186 CLR 389; [1996] HCA 36 and CD v Commonwealth of Australia; CD v Director of Public Prosecutions (DPP) (SA) [2025] HCA 37; (2025) 99 ALJR 1388 at [61] per Edelman J). EPA says that no issue of fact to which there can be an application of the criminal standard here arises and that the principle of legality (that ambiguity or doubt in the construction of a condition, breach of which is a criminal offence, must be resolved in favour of the accused) has no work to do in this case.
As to Ground 14(b), EPA says that if the primary judge’s construction (of Condition O1.1) is correct, then it was open to the primary judge to make the findings that were made, having been satisfied to the requisite standard.
As to Ground 14(c), EPA submits that there is no error in the language at [304] of the principal judgment; and that this paragraph of the principal judgment should be read together with [303] in understanding the overall approach that was taken by her Honour to the expert evidence. EPA says that the primary judge approached the expert evidence in detail and with appropriate rigour throughout the judgment (referring in particular to her Honour’s detailed summary of Dr Aimone-Martin’s evidence at [212]-[222] and reference to a number of points on which she was cross-examined at [223]-[241]).
In relation to the timing charge, EPA notes that her Honour explained why her conclusion would be the same “even if” she accepted Dr Aimone-Martin’s premise “that what was required was good vertical release, rather than good progressive burden release” (see at [396]), and that her Honour noted points that were accepted by Dr Aimone-Martin (at [397]). In relation to the stemming length charge, EPA notes that her Honour referred to Dr Aimone-Martin’s evidence and concessions made in cross-examination (at [414]). In relation to the overloading charge, EPA notes that Dr Aimone-Martin’s evidence was referred to in the findings at [446](6) and (8), EPA here referring also to [424]. Finally, in relation to the noise charge, EPA says that the primary judge set out clearly and in detail why Dr Aimone-Martin’s evidence was not accepted in relation to the issues relevant for this charge (at [484(4)(e)]).
In essence, Ground 14(a) appears to contend that there must be reasonable doubt as to MCC’s guilt on the respective charges because the limit conditions were met (even if, as a matter of construction, the specific limit conditions did not override the general obligation of competence in the carrying out of the Blast activity). I do not accept that this necessarily follows. While I accept that satisfaction with the limit conditions may be a strong indication of competence (as explained earlier when considering MCC’s construction arguments), that does not necessarily give rise to a reasonable doubt as to lack of competence. Rather, her Honour was required to take into account all the evidence in determining whether (notwithstanding that satisfaction of limit conditions was conceded to be an indication of competence) she was satisfied beyond reasonable doubt that the charges were made out.
As to Ground 14(b), while I accept that compliance with the specific limit conditions in the EPL was of relevance to the question of competence, again I do not accept that it was necessarily determinative.
Accordingly, I do not accept that Grounds 14(a) and (b) are made good.
However, I am persuaded that Ground 14(c) is made good. EPA was required to establish beyond reasonable doubt that there was a lack of competence in the conduct of the Blast (for the purposes of the s 64 charges) and that there was emission of noise from the premises that was caused by a failure to deal with the explosives in a proper and efficient manner (for the noise charge). Where there was competing expert evidence as to the question of competence, it was not sufficient in my view for there simply to have been a preference for one expert’s evidence over that of the other. In this regard, I do not consider that MCC’s complaint on this issue can be dismissed as a mere matter of terminology.
The evidence of Dr Aimone-Martin (particularly when understood in the context of Dr McKenzie’s evidence as to the modelling he carried out for the Blast) gave rise to a reasonable doubt as to the alleged lack of competence (and, in the case of the noise charge, as to the alleged failure to deal with the materials in a proper and efficient manner). Unless that evidence was rejected, I do not accept that there could be a finding that guilt was established beyond reasonable doubt. I do not read the primary judge’s reasons as amounting to a rejection of that evidence or, perhaps more relevantly, as amounting to a conclusion that the evidence did not give rise to a reasonable doubt. In those circumstances, Ground 14(c) is made good.
On the findings made by the primary judge, I consider that EPA failed to establish guilt as to the s 64 charges beyond reasonable doubt.
Ground 14(c) is therefore established in relation to the respective s 64 charges.
I consider the noise charge insofar as it related to overloading in the context of Grounds 17 and 18 below.
i. stemming blast holes loaded with the Explosives to 3m; and
ii. detonating the Explosives using excessively fast timing of the electronic system to detonate the Explosives.
The summons alleged that the manner of dealing with the explosives was not proper and efficient “as it resulted in the dispersion of excessive explosive energy upwards into the atmosphere, thereby reducing the explosive energy of the Blast directed towards the breaking of caprock or overburden that was the intended purpose of dealing with the Explosives”. This accorded with Dr Cameron’s opinion as to the dispersion of excessive explosive energy upwards from the Blast.
As extracted above (see at [103]), her Honour found that the noise charge was established beyond reasonable doubt. Relevantly, her Honour was satisfied to the criminal standard that the emission of noise was caused by MCC’s failure to deal with the materials in a proper and efficient manner for the reasons set out at [484](4) of the principal judgment.
Of those reasons, sub-paragraphs (4)(a) and (b) relate to the breach of section 4.1 of the Australian Standard by not considering safety at the Boggabri Coal Mine and the lack of modelling conducted to the south of the Mine; and 4(c), identifies the use of 3m stemming and fast timing. Sub-paragraph 4(d), as I understand it, relates to the issue raised by Dr Cameron as to the fast timing resulting in high levels of airblast overpressure due to the sudden movement of the surface of the Blast and release of high-pressure gases (found not to be in conformity with the objective in cl 1.4 of the BLMP). Sub-paragraph 4(e) is in effect a rejection or non-acceptance of Dr Aimone-Martin’s evidence as to the impact of atmospheric conditions at the time of the Blast. Sub-paragraph 4(f) rejects the proposition that the achievement of fragmentation was a defence to the allegation. Sub-paragraph 4(g) rejects the proposition that EPA could not prove that the noise was caused by the 3m stemming and fast timing.
Significantly, in my opinion, none of those reasons in terms or in substance relates to the overloading charge. Thus, the subject matter of the noise charge appears to have been confined to the same subject matter as two of the three condition breach charges (the stemming and timing charges), as were, appropriately, her Honour’s findings. This is significant because in my opinion, the evidence only tended, at best, to establish some practical inefficiency in relation to the overloading of a proportion of the blast holes, as I explain in due course.
Ground 17: Having found at Judgment [462] that s.140 of the POEO Act is to be determined in relation to the emission of noise, the primary judge erred in finding at Judgment [483] and [484] a breach of s.140 of the POEO Act in circumstances where the emission of noise was authorised by the EPL, and that the blast event the subject of the charge complied with the limits thereby set.
Ground 18: The primary judge erred in finding at Judgment [463] that an authority to emit noise afforded by an EPL is not relevant to, nor provides a defence to, an alleged breach of s.140 of the POEO Act in the circumstances of the blast the subject of the charge.
MCC, in oral submissions, referred to this Ground as “problematic”, by which it seems that MCC was referring to its acceptance that, even though the noise levels did not exceed the limit conditions set in the EPL at the specified monitoring points, it was uncontroversial that there was an emission of noise from the site. However, MCC emphasises that the emission of noise was authorised by the EPL and that the Blast complied with the specific limits set in the EPL (Ground 17).
MCC argues, akin to its construction argument raised by Grounds 1-6 in relation to the s 64 charges, that the sensible operation of the POEO Act where there is an environment protection licence, and there is the emission of noise which (whether or not done in an efficient manner) complies with a specific limit in the environment protection licence for discharge of noise, is that there can be no occasion to found a breach of s 140 of the POEO Act.
MCC points out that the specific topic of noise limits was addressed in Condition L3 of the EPL. MCC notes that her Honour (at [463] of the principal judgment) found that an authority to emit noise afforded by an EPL is not relevant, or does not provide a defence, to an alleged breach of s 140 on the basis of an absence of “any sort of implied exception or defence that is based upon what is allowed under the conditions of the EPL”.
MCC argues, to the contrary, that s 140 of the POEO Act should be interpreted as implicitly excluding noise that is emitted from premises in compliance with the permission to do so by an environment protection licence. Further, or in the alternative, MCC argues that the facts that: such a licence has been granted; it permits the emission of noise from the premises; and it has been complied with; amount to a critical and significant relevant consideration as to whether it has been established beyond reasonable doubt that there has been a failure to deal with materials “in a proper and efficient manner” for the purposes of s 140(1).
MCC accepts that Part 5.5 of the POE**O Act does not include exceptions, or a defence, to a breach of s 140 in the same way as, for example, does Part 5.4. However, MCC argues that Part 5.5 does not need to do so because, on a proper construction of the POEO Act as a whole, where there are scheduled activities that are to be controlled by an environment protection licence, those scheduled activities are to be controlled by the terms and conditions of the licence. MCC submits that Chapter 5 of the POEO Act operates, independently of controlling scheduled activities through an environment protection licence, to control aspects of environment protection offences (such as pollution) in circumstances where there is no such licence.
In reply submissions, MCC made extensive submissions in amplification of Grounds 17 and 18, contending that the primary judge misconstrued s 140 of the POEO Act or applied the wrong principles in application of that provision (by misapprehending the relevance of the EPL and its compliance with permitted limits under the EPL during the Blast). MCC also complains that her Honour failed to give reasons for rejecting submissions made in the defence case which relied upon the fact that the EPL permitted noise to be emitted from the premises and that MCC had complied with the blasting limits in the EPL.
MCC relies on the text, context and purpose of s 140(1) of the POEO Act in support of the construction for which it contends, arguing that s 140 contains a qualification of what would otherwise be an absolute prohibition on the emission of noise from a premises caused by dealing with materials in or on the premises (i.e., that the emission of noise must have been caused by “the occupier’s failure to deal with those materials in a proper and efficient manner”). MCC argues that her Honour, in reasoning that compliance with the EPL is not relevant as a charge under s 140(1) “is not a charge for the breach of a condition”, failed to engage in a proper consideration of the text, context and purpose of the provision having regard to the statutory scheme as a whole.
MCC accepts that the meaning of “proper and efficient manner” in s 140(1) takes into account the possible environmental consequences (referring to the principal judgment at [462]), but says that the colour and content of that phrase fell to be interpreted by consideration of the context and purpose of the scheme of the POEO Act, including that the licensing regime that permits and regulates scheduled activities which cause or are likely to cause pollution.
MCC argues that, having regard to the whole of the statutory scheme, it is most unlikely that Parliament intended that persons who are permitted to carry out scheduled activities under the POEO Act on the one hand are exposed to criminal liability for emission of noise within the scope of that permission on the other. MCC says that it follows that such conduct is implicitly excluded from s 140(1) of the POEO Act.
Alternatively, MCC argues that evidence of an EPL and emissions of noise in compliance with its terms is critical in the consideration of whether there was a failure to deal with materials in a “proper and efficient manner”. MCC contends that, on the terms of s 140(1) and its context, the primary judge was bound to give proper consideration, when determining whether the elements of the offence were established, to the fact that the EPL permitted noise to be emitted from the premises and that the noise in fact emitted was in compliance with the EPL limits (citing Allianz Australia Insurance Ltd v Cervantes [2012] NSWCA 244 at [15]; (2012) 61 MVR 443; Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24 at 39; [1986] HCA 40).
MCC submits that the approach for which it contends is supported by remarks made by Aickin J (in dissent as to the outcome) in The Phosphate Co-operative Company of Australia Limited v Environment Protection Authority (1977) 138 CLR 134; [1977] HCA 65 (Phosphate) as to how offence provisions in the Environment Protection Act 1970 (Vic) interacted with licensing provisions in that Act. Relevantly, MCC refers to the observations of Aickin J at 150-152 to the effect that there was no doubt that the statutory provisions proscribing offences of polluting the atmosphere in that Act must be read as subject to the grant of a licence, even though the provisions did not say so; and as to not making it an offence to do that which was permitted under the licence.
MCC notes that in Environment Protection Authority v Bartter Enterprises Pty Ltd (No 3) [2020] NSWLEC 114 (Bartter Enterprises) at [46], it was said that a licence under the POEO Act “sets the appropriate limits” of the pollution permitted by the licence “and protects the environment from unacceptable impacts that would occur if the licence conditions were not met”. MCC also refers to Environment Protection Authority v Charlotte Pass Snow Resort Pty Ltd [2021] NSWLEC 37 at [121] in this regard. MCC submits that the reasoning adopted by Aickin J in Phosphate is persuasive in the interpretation of s 140(1) of the POEO Act (referring to *Abou-*Lokmeh v Harbour Radio Pty Ltd [2016] NSWCA 228 at [99] (McColl JA), [132] (Payne JA)).
To the extent that there remains any doubt or ambiguity in the interpretation of s 140(1) of the POEO Act, MCC maintains that the provision should be construed in favour of the accused person, by refusing to extend the category of the offence in s 140(1) to those whose conduct is in accordance with permission granted under an environment protection licence by the regulator (MCC again citing Beckwith at 576 per Gibbs J).
EPA notes that s 140(1) of the POEO Act is a strict liability offence and that there has been no appeal from the finding that the “sound and vibration” resulting from the airblast overpressure that was recorded following the Blast is “noise” for the purposes of the POEO Act (referring to the principal judgment [470]). EPA points out that there has similarly been no appeal from her Honour’s identification of the elements of the offence (at [452]), subject to the issue of whether compliance with the EPL was a defence, or to the construction to be given to the phrase “proper and efficient manner” (as considered in Genkem and Bartter Enterprises).
For the following reasons, EPA contends that there was no error in her Honour’s approach at [462] and [463] in holding that compliance with the EPL was not relevant or determinative, including as a defence, as raised in Grounds 17 and 18.
First, that a charge under s 140(1) of the POEO Act is not a charge for the breach of a condition of an environment protection licence and s 140 does not include a statutory defence of an authority conferred by such a licence, nor does any other section in Part 5.5 of the POEO Act which is headed “Noise pollution”.
EPA contrasts this with the water pollution offence (s 120), for which a statutory defence is provided in s 122(1) where the pollution was regulated by an environment protection licence and the conditions to which that licence was subject, relating to water pollution were not contravened, and the pollute land offence (s 142A), which is subject to a statutory defence that the conditions of an EPL were not contravened (s 142C). EPA submits that Parliament’s decision not to provide for a similar statutory defence for noise pollution offences is a strong reason why s 140(1) should not be interpreted as having any sort of implied exception or defence that is based upon what is allowed under the conditions of an environment protection licence. EPA argues that this is explicable given that both the pollute water and pollute land offences are framed as total prohibitions in their terms, and then subject to statutory (and, if applicable, common law) defences, including compliance with licence conditions. EPA contrasts this with s 140 which EPA submits seeks to draw the boundaries of the offence within its terms. EPA says that the absence of a provision for a defence of compliance with licence conditions is intended to enable the scheme of s 140 to operate effectively and within its purpose.
Second, EPA submits that this conclusion is reinforced by the fact that two limits are placed upon the operation of s 140 by its terms: first, there is an emission from the premises (consistent with this approach as a noise pollution offence); second, that there is a causation requirement in the terms of the provision, that is the emission of noise must be caused by the failure to deal with the materials in a proper and efficient manner. EPA says that it is therefore not the case that every noise (including a de minimis noise) resulting from dealing with materials on a premises is a contravention of s 140(1) of the POEO Act.
The primary judge did not err in finding that compliance with the noise condition in the EPL did not provide a defence (or implied defence) to an alleged breach of s 140 of the POEO Act, for similar reasons to those I have given in relation to the contention that compliance with the limit conditions did not provide a defence to the s 64 charges. That is because it was open to Parliament expressly to provide for such a defence (as was the case with the water and land pollution offences) and it did not do so. The distinction drawn by MCC between those offences and the noise pollution offence does not persuade me otherwise. That said, I consider (as with those other charges) that compliance with specific conditions of the EPL is an indication that the materials were dealt with in a “proper and efficient manner”.
Nor does the fact that the EPL authorises the emission of noise within certain limits assist MCC in circumstances where the focus in s 140 is on how the materials are dealt with and the causal effect of the manner in which they are dealt with on the emission of noise. There is no implied exception in s 140 of the POEO Act for conduct authorised by an EPL. Grounds 17 and 18 to that extent are not made good.
Nor do I accept the criticism made as to the adequacy of her Honour’s reasons as to the noise charge. Her Honour dealt comprehensively with the evidence and more than adequately expressed the reasons for her conclusions.
However, with respect, in my opinion her Honour erred in concluding that the matters identified at [484](4)(a)-(d) of the reasons established beyond reasonable doubt that the explosives were not dealt with in a proper and efficient manner.
As to sub-paragraphs 4(a) and (b), I have already noted the evidence relied upon by MCC against the finding that there was no consideration of the safety of personnel at the Boggabri Coal Mine. As to the use of the reduced stemming length and fast timing, the modelling by Dr McKenzie properly took into consideration those aspects of the Blast and the reasons for the departures from the standard blast design in those respects. To the extent that the conclusion of Dr Cameron was, in effect, that the fast timing was not an efficient use because it resulted in high levels of airblast overpressure, in my view efficiency must be assessed by reference to the outcome sought to be achieved by the Blast, taking into account the objective in cl 1.4 of the BLMP to which her Honour referred.
In that regard, the fact that the Blast met the objective of fragmentation of the caprock and overburden, and did so within the limit conditions as modelled, is a strong indication that the Blast was carried out in a proper and efficient manner.
The one aspect where it might be said that the handling of the materials was inefficient in a practical sense is the overloading, in that more explosives than had been provided for in the design plan were used. However, this was not a particular of the noise charge. Nor is it clear that the overloading was the cause of the noise exceeding the monitor levels at the other (non EPL) monitoring points (i.e., beyond that which would be caused by the stemming and fast timing itself). Dr Cameron’s opinion was that overloading was not the cause of the airblast; rather, that the Blast was inefficient as a result of the fast timing because of the dispersive effect of the explosive energy thereby generated. This must be balanced against the problems of the previous blast and the subsequent modelling carried out by Dr McKenzie, which in my opinion raised reasonable doubt as to the allegation that the materials were not handled in a proper and efficient manner.
Therefore, I have concluded that, on that basis, Ground 17 is made good. Ground 18 takes the matter no further.
As to costs, during the course of the hearing of the appeal, submissions were sought as to the parties’ position as to costs. A note setting out the parties’ joint position with respect to professional costs was subsequently sent to the Court. In that note, the parties stated their position as to costs depending on the outcome of the appeals.
The parties are agreed that if all convictions are quashed (and the sentence appeal necessarily dismissed), the Land and Environment Court orders as to costs would be quashed. In those circumstances, MCC seeks that the question of the costs of the proceedings in the Land and Environment Court be remitted to that Court (referring by way of example to Histollo Pty Ltd v Director-General of National Parks and Wildlife Service (1998) 45 NSWLR 661 at 700) and says that no order should be made in this Court as to those costs (citing Environment Protection Authority v Riverina (Australia) Pty Ltd (No 2) [2015] NSWCCA 252 at [22]-[25]). The parties agree that no issue as to costs in this Court would arise in respect of either appeal.
Accordingly, the following orders should be made:
The convictions for each of the charges are quashed and, in lieu thereof, a verdict of acquittal on each of those charges is entered.
The orders of the Land and Environment Court imposing monetary penalties are set aside.
The application for leave to appeal against sentence is dismissed.
The order for costs made in the Land and Environment Court is set aside.
The matter is remitted to the Land and Environment Court on the question of costs of the proceedings in that court.
There is no order for costs of the proceedings in this Court.
LEEMING JA: I agree with Ward P.
FAGAN J: I agree with Ward P.
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typographical error in headnote
[2009] HCA 41
[1983] HCA 7
(2024) 260 LGERA 358
(2009) 239 CLR 27
(2012) 61 MVR 443
(1997) 48 NSWLR 430
(1976) 135 CLR 569
(2016) 93 NSWLR 338
(1983) 72 FLR 1
(1984) 153 CLR 521
(1997) 187 CLR 384
(1996) 186 CLR 389
(2025) 99 ALJR 1388
(1992) 28 NSWLR 502
(2001) 115 LGERA 337
(1994) 35 NSWLR 33
(2002) 55 NSWLR 593
(1998) 45 NSWLR 661
(2022) 253 LGERA 184
(1986) 162 CLR 24
(2025) 99 ALJR 1362
(1991) 172 CLR 1
(2017) 262 CLR 362
(1977) 138 CLR 134