Regulations: storage and clean-up of dangerous or potential pollutants

Regulations: storage and clean-up of dangerous or potential pollutants

In the world of property ownership, whether as an owner, lessee, or tenant, one cannot afford to overlook the importance of environmental regulations and legislation concerning the storage and clean-up of dangerous or flammable goods. Environmental incidents can lead to dire consequences, both financially and legally. This article aims to shed light on the environmental impact risks that site owners and operators face, and the regulations they must comply with to mitigate these risks.

Environmental Impact Risks for Site Owners

The storage of fuels, chemicals, and other potentially harmful pollutants comes with a distinct set of risks that can have far-reaching consequences. Site owners need to be aware of the potential hazards to adequately protect themselves:

• Environmental Non-Compliance Fines and Penalties: Regulatory authorities enforce strict environmental standards. Failure to comply with these regulations can result in hefty fines and penalties for site owners; R10million, 10 years in jail or both!
• Inadequate Incident Response: In the event of a spill or environmental incident, a lack of knowledge or incorrect response measures can exacerbate the situation, leading to increased damage and potential legal action.
• Clean-Up Costs and Remediation: Environmental clean-up and remediation can be exorbitant. The clean up and rehabilitation process is complex and requires various methodologies and should be handled by proper service providers. Site owners can be held liable not only for their own property but also for damages and losses incurred by third parties, including neighbouring properties and the broader community.
• Criminal Liability: Serious environmental violations, such as pollution or the failure to carry out necessary rehabilitation and remediation measures, can lead to criminal charges against site owners.
• Reputational Damage: Negative publicity following an environmental incident can tarnish a site owner's reputation and lead to a loss of contracts and business opportunities.

Legal Obligations Under NEMA Legislation

Site owners must be well-versed in the legal framework governing environmental protection. The National Environmental Management Act 107 of 1998 (NEMA) in Section 28 outlines crucial duties and responsibilities:

• Section 28. Duty of Care and Remediation of Environmental Damage
  Every person who causes, has caused, or may cause significant pollution or degradation of the environment must take reasonable measures to prevent, minimise, and rectify such pollution or degradation. Non-compliance with these measures can result in severe penalties, including fines and imprisonment. The legislation imposes a duty of care on site owners to prevent the release of harmful substances into the environment and mandates specific actions to remediate any environmental damage in the event of an incident. Regulatory authorities have the authority to issue directives that dictate the necessary actions to be taken.
• Importance of Adequate Insurance
  In addition to complying with NEMA regulations, site owners must also consider the importance of having the correct insurance coverage in place. Financial institutions are increasingly requiring proof of insurance coverage for environmental incidents before granting financing. If contamination occurs, and the owner defaults on their obligations, the responsibility for site rehabilitation may fall on the financial institution. Furthermore, any potential sale of the contaminated land must include full disclosure of the contamination, as failing to do so can result in legal consequences for the seller.

Adherence to SANS Regulations

To ensure compliance with best practices and insurance policy conditions and warranties, site owners must adhere to the South African National Standards (SANS) regulations. These regulations stipulate specific requirements for the storage of dangerous goods, which can vary based on the type of storage and the commodities involved. Compliance with SANS regulations are essential not only for regulatory compliance but also to protect against insurance-related issues.

In conclusion, the storage and clean-up of dangerous or flammable goods entail significant environmental impact risks for site owners. Compliance with NEMA legislation, adherence to SANS regulations, and the acquisition of appropriate insurance coverage are all crucial steps in safeguarding against the financial and legal repercussions of environmental incidents. Site owners must prioritise environmental responsibility to protect not only their assets, but also the communities and ecosystems surrounding their properties.

De Wet De Villiers Brokers has partnered with Envirosure Underwriting Managers FSP No. 38594 . Envirosure is a niche underwriting agency and a South African leader in environmental impairment cover. Their comprehensive solutions fully cover the cost incurred during clean-up and rehabilitation in the event of an environmental incident.

You can view the Envirosure solutions here:
Envirosure Site Clean-Up On-Site Brochure   Envirosure Site Clean-Up Underground Brochure