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Environmental Law
   …What’s New?



OBA - Operation Update
   October 3, 2008
  Dianne Saxe, Ph.D.
Overview
     Caselaw

     Legislation

     What’s coming?





                            2
October 3, 2008       OBA
Caselaw 2008
     Berendsen v. Ontario

     Lafarge Canada Inc. v. Ontario

     R. v. Inco, round 3

     Pembina Institute v. Canada

     Pakootas v. Teck Cominco

     Edwards v. DTE Energy

     1st environmental penalty


                                      3
October 3, 2008       OBA
Berendsen - how clean is clean?
     Dairy farm contaminated by highway waste

     Cows wouldn’t drink, became ill

     MOE investigated, concluded:

             Site met PWQO
       
             Waste in clay, couldn’t reach well
       

     Gov’t refused to help; Berendsen lost farm




                                                  4
October 3, 2008               OBA
Berendsen, #2
     Berendsen sued MTO and MOE

     Limitations issue (SCC)

     MTO:

             did not get informed consent
       
              liable even if waste dumped by contractor
       




                                                          5
October 3, 2008               OBA
Berendsen, #3
     MOE liable because

             Failure to investigate/remedy a breach of
       
             OWRA / EPA
             Continued presence of waste a breach of
       
             MOE’s duty to farmer
             MOE standards inadequate
       
                Dairy cows
              

               Cumulative, additive, or long-term effects



                                                             6
October 3, 2008                  OBA
Berendsen, #4
     $1.73 million in damages

     $655,000 in legal costs (incl a $50,000

     premium + 6% prejudgment interest from
     1995)
      Under appeal

      How clean is clean?




                                               7
October 3, 2008       OBA
Lafarge - MOE standards
     ERT granted leave to appeal two MOE permits to

     burn tires at Lafarge cement plan
                  air, waste
       

     Test for leave is stringent

     Proposed emissions met MOE criteria





                                                      8
October 3, 2008                OBA
Lafarge #2
       ERT:

             Not clear how permits complied with the MOE’s
       
             Statement of Environmental Values (EBR).
             Emissions might affect common law rights.
       
             Inconsistency: permitting tire burning in one place
       
             while prohibiting it elsewhere.
             “Precautionary approach”: MOE has limited
       
             experience with regulating tire burning; assumed
             potential for serious environmental risks.


                                                                   9
October 3, 2008                  OBA
Lafarge, #3
     Lafarge sought judicial review

     MOE intervened

     Environmental Commissioner intervened

     Divisional Court upheld ERT





                                             10
October 3, 2008         OBA
Lafarge #4
     Lafarge seeking leave to appeal

     ERT hearing under way

     MOE reconsidering major approvals

     New life for the SEV?





                                         11
October 3, 2008         OBA
Inco - water standards
     Alleged breach of OWRA in 1994 - mine

     effluent escaped into ditch
     Third trial

     Inco acquitted again





                                             12
October 3, 2008      OBA
Inco, #2
     MOE tests total nickel, compares result to

     PWQO
     But PWQO based on studies of

     bioavailable nickel
     Apples/oranges

     Same method for other contaminants?




                                                  13
October 3, 2008        OBA
Pembina - GHG
     Judicial review of Imperial’s EA for huge

     oilsands mine (CEAA)
     Badly flawed EA

     No reasons why mine’s GHG emissions were

     “insignificant”
     Sent back to Panel, Fisheries Act permit revoked





                                                        14
October 3, 2008           OBA
Pembina #2
     Panel quickly gave more reasons

     Project emissions “insignificant” because will

     comply with the law, once we have one
     GHG huge issue to be managed by government,

     not by proponents
     Fisheries Permit re issued





                                                      15
October 3, 2008          OBA
Pakootas - transborder
     Teck Cominco, Canadian co., discharged

     slag in Canada, per Canadian permit, until
     1994
     Slag washed downstream into US

     Metals leach slowly from slag

     Voluntary agreement with EPA, $20 M, in

     place of mandatory order
     Colville tribes dissatisfied


                                                  16
October 3, 2008        OBA
Pakootas, #2
     US Superfund law (CERCLA) applies to

     discharges “in” US
     Jurisdiction over Teck?

     US SC: yes because leaching in US





                                            17
October 3, 2008      OBA
Edwards - transborder redux
     High mercury emissions from DTE Energy

     coal plant, Michigan, despite available
     technology
     Major source of mercury contamination in

     St. Clair River
     DTE ignores NGO





                                                18
October 3, 2008       OBA
Edwards, #2
     Private prosecution, Fisheries Act

     Mandamus for delivery of summons

     Trial date set for February 2, 2009

     No intervention (yet) by AG





                                           19
October 3, 2008        OBA
First Environmental Penalty
     $9000 for OWRA breach

     CGC of Hagersville

     Gypsum runoff escaped into a creek

     Large exceedence and 2 prior convictions

     Good example: dealt with actual harm, and

     quickly


                                                 20
October 3, 2008       OBA
Overview
     Caselaw

     Legislation

     What’s coming?





                            21
October 3, 2008       OBA
Legislation
     Cosmetic Pesticides Ban

     Clothesline ban banned

     WDO: E-waste

     Ontario Securities Commission guidance

     on environmental disclosure



                                              22
October 3, 2008       OBA
Cosmetic Pesticides Ban Act
     Royal assent June 18, 2008

     Won’t come into effect until its regs are adopted

     Will prohibit use of listed pesticides; exceptions

     for agriculture, forestry, public health, golf
     courses (conditional)
     Will prohibit sale of pesticides on another list

     Will invalidate municipal pesticide by-laws

             Controversial as the province may permit some
       
             pesticides banned by individual municipalities

                                                              23
October 3, 2008                 OBA
Environmental reporting:
OSC Staff Notice 51-716
     Boilerplate inadequate: must provide “meaningful

     information” to investors
     Improved disclosure:

             Financial liabilities related to the environment
       
             Asset retirement obligations must be in financial
       
             statements
             Financial/operational effects of environmental
       
             protection requirements
             Environmental policies fundamental to operations
       
             Environmental risks
       


                                                                 24
October 3, 2008                  OBA
Overview
     Caselaw

     Legislation

     What’s coming?





                            25
October 3, 2008       OBA
What’s coming?
     Toxics reduction law

     Community right to know bylaw

     Mining Act

     Climate change legislation





                                     26
October 3, 2008      OBA
Toxics reduction law
     4 lists of toxic substances, going beyond

     NPRI
     Materials accounting

     Toxic reduction plans

     Public notice

     New governance structure

     New powers to control toxics in products


                                                 27
October 3, 2008        OBA
Community Right to Know
     Environmental reporting and disclosure by-law

     Challenges:

             Major sources of pollutants may be located outside
       
             city boundary
             Will reducing emissions by local businesses make a
       
             difference in citizens’ health?
             Can the City fill the regulatory gap? Jurisdiction
       
             Costs and complexity: to businesses, City
       
             Coordination with MOE requirements?
       




                                                                  28
October 3, 2008                 OBA
Questions? Comments?

          Saxe Law Office
              248 Russell Hill Road
            Toronto, Ontario M4V 2T2

                  Tel: 416-962-5882
                  Fax: 416-962-8817

           Email: admin@envirolaw.com
               www.envirolaw.com
                                        29
October 3, 2008                OBA

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Operation Update 2008 October Oba

  • 1. Environmental Law …What’s New? OBA - Operation Update October 3, 2008 Dianne Saxe, Ph.D.
  • 2. Overview Caselaw  Legislation  What’s coming?  2 October 3, 2008 OBA
  • 3. Caselaw 2008 Berendsen v. Ontario  Lafarge Canada Inc. v. Ontario  R. v. Inco, round 3  Pembina Institute v. Canada  Pakootas v. Teck Cominco  Edwards v. DTE Energy  1st environmental penalty  3 October 3, 2008 OBA
  • 4. Berendsen - how clean is clean? Dairy farm contaminated by highway waste  Cows wouldn’t drink, became ill  MOE investigated, concluded:  Site met PWQO  Waste in clay, couldn’t reach well  Gov’t refused to help; Berendsen lost farm  4 October 3, 2008 OBA
  • 5. Berendsen, #2 Berendsen sued MTO and MOE  Limitations issue (SCC)  MTO:  did not get informed consent  liable even if waste dumped by contractor  5 October 3, 2008 OBA
  • 6. Berendsen, #3 MOE liable because  Failure to investigate/remedy a breach of  OWRA / EPA Continued presence of waste a breach of  MOE’s duty to farmer MOE standards inadequate  Dairy cows   Cumulative, additive, or long-term effects 6 October 3, 2008 OBA
  • 7. Berendsen, #4 $1.73 million in damages  $655,000 in legal costs (incl a $50,000  premium + 6% prejudgment interest from 1995) Under appeal  How clean is clean?  7 October 3, 2008 OBA
  • 8. Lafarge - MOE standards ERT granted leave to appeal two MOE permits to  burn tires at Lafarge cement plan air, waste  Test for leave is stringent  Proposed emissions met MOE criteria  8 October 3, 2008 OBA
  • 9. Lafarge #2 ERT:  Not clear how permits complied with the MOE’s  Statement of Environmental Values (EBR). Emissions might affect common law rights.  Inconsistency: permitting tire burning in one place  while prohibiting it elsewhere. “Precautionary approach”: MOE has limited  experience with regulating tire burning; assumed potential for serious environmental risks. 9 October 3, 2008 OBA
  • 10. Lafarge, #3 Lafarge sought judicial review  MOE intervened  Environmental Commissioner intervened  Divisional Court upheld ERT  10 October 3, 2008 OBA
  • 11. Lafarge #4 Lafarge seeking leave to appeal  ERT hearing under way  MOE reconsidering major approvals  New life for the SEV?  11 October 3, 2008 OBA
  • 12. Inco - water standards Alleged breach of OWRA in 1994 - mine  effluent escaped into ditch Third trial  Inco acquitted again  12 October 3, 2008 OBA
  • 13. Inco, #2 MOE tests total nickel, compares result to  PWQO But PWQO based on studies of  bioavailable nickel Apples/oranges  Same method for other contaminants?  13 October 3, 2008 OBA
  • 14. Pembina - GHG Judicial review of Imperial’s EA for huge  oilsands mine (CEAA) Badly flawed EA  No reasons why mine’s GHG emissions were  “insignificant” Sent back to Panel, Fisheries Act permit revoked  14 October 3, 2008 OBA
  • 15. Pembina #2 Panel quickly gave more reasons  Project emissions “insignificant” because will  comply with the law, once we have one GHG huge issue to be managed by government,  not by proponents Fisheries Permit re issued  15 October 3, 2008 OBA
  • 16. Pakootas - transborder Teck Cominco, Canadian co., discharged  slag in Canada, per Canadian permit, until 1994 Slag washed downstream into US  Metals leach slowly from slag  Voluntary agreement with EPA, $20 M, in  place of mandatory order Colville tribes dissatisfied  16 October 3, 2008 OBA
  • 17. Pakootas, #2 US Superfund law (CERCLA) applies to  discharges “in” US Jurisdiction over Teck?  US SC: yes because leaching in US  17 October 3, 2008 OBA
  • 18. Edwards - transborder redux High mercury emissions from DTE Energy  coal plant, Michigan, despite available technology Major source of mercury contamination in  St. Clair River DTE ignores NGO  18 October 3, 2008 OBA
  • 19. Edwards, #2 Private prosecution, Fisheries Act  Mandamus for delivery of summons  Trial date set for February 2, 2009  No intervention (yet) by AG  19 October 3, 2008 OBA
  • 20. First Environmental Penalty $9000 for OWRA breach  CGC of Hagersville  Gypsum runoff escaped into a creek  Large exceedence and 2 prior convictions  Good example: dealt with actual harm, and  quickly 20 October 3, 2008 OBA
  • 21. Overview Caselaw  Legislation  What’s coming?  21 October 3, 2008 OBA
  • 22. Legislation Cosmetic Pesticides Ban  Clothesline ban banned  WDO: E-waste  Ontario Securities Commission guidance  on environmental disclosure 22 October 3, 2008 OBA
  • 23. Cosmetic Pesticides Ban Act Royal assent June 18, 2008  Won’t come into effect until its regs are adopted  Will prohibit use of listed pesticides; exceptions  for agriculture, forestry, public health, golf courses (conditional) Will prohibit sale of pesticides on another list  Will invalidate municipal pesticide by-laws  Controversial as the province may permit some  pesticides banned by individual municipalities 23 October 3, 2008 OBA
  • 24. Environmental reporting: OSC Staff Notice 51-716 Boilerplate inadequate: must provide “meaningful  information” to investors Improved disclosure:  Financial liabilities related to the environment  Asset retirement obligations must be in financial  statements Financial/operational effects of environmental  protection requirements Environmental policies fundamental to operations  Environmental risks  24 October 3, 2008 OBA
  • 25. Overview Caselaw  Legislation  What’s coming?  25 October 3, 2008 OBA
  • 26. What’s coming? Toxics reduction law  Community right to know bylaw  Mining Act  Climate change legislation  26 October 3, 2008 OBA
  • 27. Toxics reduction law 4 lists of toxic substances, going beyond  NPRI Materials accounting  Toxic reduction plans  Public notice  New governance structure  New powers to control toxics in products  27 October 3, 2008 OBA
  • 28. Community Right to Know Environmental reporting and disclosure by-law  Challenges:  Major sources of pollutants may be located outside  city boundary Will reducing emissions by local businesses make a  difference in citizens’ health? Can the City fill the regulatory gap? Jurisdiction  Costs and complexity: to businesses, City  Coordination with MOE requirements?  28 October 3, 2008 OBA
  • 29. Questions? Comments? Saxe Law Office 248 Russell Hill Road Toronto, Ontario M4V 2T2 Tel: 416-962-5882 Fax: 416-962-8817 Email: admin@envirolaw.com www.envirolaw.com 29 October 3, 2008 OBA