What it does
This Act extinguishes or severely restricts civil, regulatory and statutory liabilities for environmental contamination, pollution and harm arising from the Savage River iron ore project in Tasmania. It operates as a bespoke statutory bar against private and public litigation, subject to a narrow carve-out for the Crown to enforce specified instruments or pursue new serious or material environmental harm that is not an ordinary consequence of pre-existing contamination.
Mechanically, the Act proceeds in stages. Section 4 prohibits any person from instituting or continuing any action, proceeding, claim or demand in respect of any contamination, pollution or environmental harm that has resulted from the Savage Project. This bar is subject to s 5, which preserves the Crown’s right to take action against the Company (Pickands Mather & Co. International, including related bodies corporate and officers) for two purposes only: (a) requiring compliance with instruments listed in Schedule 1, unless the Director has waived compliance in writing; and (b) pursuing liability for contamination or harm that is caused after the section’s commencement, is not an ordinary or probable consequence of existing contamination or of works carried out under an agreement with the Crown, and constitutes serious or material environmental harm under the Environmental Management and Pollution Control Act 1994.
Sections 6 and 7 deal with notices issued under Part 5 of the Deed of Variation (the deed that varied the original leasing arrangement for the Savage Project). Section 6 suspends any such notice that existed before its commencement until 30 April 1997 or the commencement of s 7, whichever comes first. Section 7 then extinguishes those notices entirely upon its commencement.
The operative extinguishment of broader liability occurs in s 8. Upon commencement of that section, any order, notice, requirement or other action taken against the Company or an Original Lessee under any Act relating to contamination from the Savage Project is extinguished, except for actions taken by the Crown under s 5(1) before the commencement of s 8. Future orders are prohibited, with a narrow exception for orders that are consequential on Crown action taken under s 5(1), limited to the specific contamination involved, and capped in total expenditure by the Company or an Original Lessee at the “agreed rectification cost” (defined in s 8(2) as the cost agreed or fixed pursuant to an agreement between the Company and the Crown before the commencement of s 8). Section 8(1)(c) deems the Company to have satisfied all rehabilitation obligations in connection with the Savage Project under Part 5 of the Deed of Variation, the Environmental Management and Pollution Control Act 1994, or any other law, except those arising from Crown action under s 5(1)(b) (the new harm limb).