‘Prohibitive’ cost of document search stymies gas case

Queensland’s plans to pursue possible charges against former executives of a coal-gas company are being stymied.

The Queensland government’s plans to pursue possible charges against former executives of a coal-gas company that allegedly contaminated farmlands on the Darling Downs are being stymied because the government cannot get access to millions of company documents.

The Department of Environment and Heritage Protection has asked the Queensland Supreme Court for an order granting it access to the internal company records of Linc Energy, which is facing five criminal charges relating to the alleged contamination of farmlands between 2007 and 2013. The department told the court it cannot access the documents because Linc is being wound up and the liquidator, PPB Advisory, is unable to co-operate.

Linc Energy operated a pilot plant on the Darling Downs that generated gas by setting fire to underground coal seams, a project the Beattie and Bligh Labor governments promoted as a “clean coal” initiative.

The company was committed for trial in March but has since been placed in liquidation, raising questions about whether the case will proceed.

In October 2013, the government raided Linc’s offices and seized millions of documents stored on computer files while investigating allegations that Linc had contaminated the groundwater at its site with benzene and other contaminants. Copies of the documents were sent to a secure location so the court could determine which of them were protected by legal privilege. More than 230,000 documents have been released so far, but in court filings last month the government revealed that PPB Advisory, the liquidator, had declined to co-operate further because of the onerous cost.

Stephen Longley of PPB Advisory told The Australian Linc had already spent $500,000 sorting through the documents and could not afford to continue. Mr Longley said he would willingly release all the files to the government, but former executives from the company had objected.

The legal argument over that issue has been adjourned until next week and 12 former executives of Linc are named as respondents in the case.

Queensland’s Environment Minister, Steven Miles, has described the alleged soil contamination caused by Linc as possibly the biggest pollution event in the state’s history.

In a statement to The Australian yesterday, the Department of Environment and Heritage Protection said the liquidation of Linc did not affect its criminal case against the company.

“EHP is continuing its investigation and prosecution of Linc Energy, and is also investigating potential executive officer offences,” a spokesperson said.

The government has described the case as the largest environmental prosecution in the state’s history.

In February last year, the government advised people living in a 320sq km area near the Linc plant that gases in the soil could be dangerous, and they should not dig deeper than 2m without consulting it.

Linc has denied responsibility for the elevated gas levels and former chief Peter Bond says any problems were routine issues.