Coroner & Legal
Pulp mill permit confusion
GUNNS Limited’s pulp mill project could be affected by an unclear term in the building permit.
The Pulp Mill Assessment Act 2007 says the the mill permit lapses if the project is not “substantially commenced” by August 30.
A document obtained by the Mercury under the Right to Information Act shows the term “substantially commenced” has not been defined by the legislation.
Gunns has just three months to lock in a joint venture partner and financier for the $2.5 billion pulp mill.
Briefing notes for Environment Protection Authority director Warren Jones last November said: “Substantial commencement is not defined in the permit or elsewhere.
“Legal advice may need to be sought by the Government if any doubt exists about the status of the permit at the time.
“There is some risk that a third party may choose to test the expiry clause in a court of law.
There are no inbuilt options for extending or modifying the expiry date.”
After earlier permits apparently expired in August 2009 the State Government passed the Pulp Mill Assessment Amendment (Clarification) Bill in November 2009.
While it provided certainty about the August 2011 expiry date it did not, according to Mr Jones, provide certainty about the term “substantial commencement”.
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