A darker shade of green Mining and the environment

Environmental responsibility is a hot topic these days. The corporate communit ha no move t suppor th gree revolution Bu th corporat officer an directors statutor liabilit fo environmenta matter i constan reality On migh cal i darker shade of green. The two major environmental statutes in Ontario, the Environmental Protectio Ac an th WaterResource Act mak directors an officers liabilit th same Thes individuals actin o behal o thei corporations mus “tak al reasonabl car t preven th corporatio fro causin o permittin (such unlawfu discharge.’ Failur t hee thi dut constitute a individua offence regardles o whethe th corporatio ha bee prosecuted.

Th legislatur ha recentl passe serie o amendment increasin fine fo environmenta offences toppin ou a $100,00 fo individual an $ millio fo corporation foun negligen wit hazardou o liqui industria waste Thes increases a th tim o writing hav no ye bee passe int directors’ and officers’ liability.

Ontario’s Dangerous Goods Transporation Act addresses other environmenta liabilities a ma amendment t th Federa Fisheries Act now before the legislature as Bill C-74.

Th foregoin law identif liabilitie specifi t corporat director an officers Bu an individua ca b charge wit th mor genera environmenta offence o “dischargin o causin o permittin th discharg o contaminan int th natura environmen tha cause o i likel t caus som environmentally adverse effect.”

Wha doe i al mea i practica terms Essentially director an officer mus tak “al reasonabl steps’ t se u syste tha contain unlawfu discharges an t ensur th syste shoul includ trainin o employee o environmenta matters suc a spill prevention prope wast disposa practices prope operatio an maintenanc o pollutio contro equipment handlin an storag o hazardou reagents an regulatory compliance.

Corporat officer an director ar protectin themselve fro open-ende liabilit b contractin environmenta audits Thes audit ca var substantiall i breadt an depth The ma b directe a specifi area o hig concern lik detectio an containment of PCBs on site.

O th othe hand sweepin environmenta audi coul revie company’ ful operations includin al it mines mill an offices I ca matc particula complianc issue t eac location identif environmenta responsibilitie o ke personnel trai employee fo compliance an appl newer cleaner technologies to aging industrial processes.

A rul o thumb remembe tha reasonabl car o “du diligence” is always the best preventative defence.

Thi serie o article ha bee complie b Erns Young’ minin industr grou directe b Rand Billing Thi articl wa contributed by David Hunter, a partner at Aird and Berlis.