Caltex Australia Petroleum Pty Ltd was convicted in the Melbourne Magistrates’ Court today (March 6) on one charge of permitting an environmental hazard.

The charge related to an incident at the company’s Newport storage terminal in August 2006, when about 2000 litres of petrol entered the Yarra River via a stormwater system.

The Court heard that a community member in the area first noticed a strong petrol odour and rainbow sheen on the river, which covered an area between 200-300 metres, and contacted emergency services. Metropolitan Fire and Emergency Services Board officers who attended the site saw the fuel coming out of a stormwater drain, flowing at a fast rate.

Caltex had had an earlier leak of about 34,000 litres of petrol from a pipeline next to its premises but thought it had been contained and was unaware that petrol had escaped its containment system and flowed into the drains.

The Court heard that the environmental hazard involved an explosion and fire risk as well as the uncontrolled release of fuel into the Yarra River.

Caltex was fined $20,000 and ordered to pay $80,000 to fund an energy efficiency project run by the Port Phillip EcoCentre Inc. The project involves training people to perform energy and water efficiency installations and audits.

EPA Victoria director environmental services Bruce Dawson said “companies need to be aware of their infrastructure and ensure that adequate procedures are in place when commissioning new equipment so that errors which compromise public safety and the environment do not occur.

“While we appreciate the decision made in this case, EPA’s preference is for companies to be doing the right thing for the environment and avoid the need for prosecutions.”

Caltex has also been ordered to pay EPA’s costs of $27,580.48.

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