An Auckland Council organisation will have to fork out $10 million to clean up a heavily contaminated area of Wynyard Quarter after a judge rejected claims Mobil Oil New Zealand were responsible for the bill.
A newly released decision by Justice Sarah Katz ruled in favour of the oil company, which was taken to court by the Auckland Waterfront Development Agency (AWDA) - formerly the Auckland Harbour Board - over two sites leased by Mobil at the western end of the Port of Auckland in the 1950s and 1960.
When Mobil's lease for the two tank farm sites ended in 2011, it was found the land they were situated on had been heavily contaminated.
While it was established the company were not solely responsible for contamination to the land - other oil companies as previous tenants and neighbouring tenants all contributed too - the AWDA claimed Mobil had to deliver the land in a completely
"uncontaminated condition'' at the end of its lease term.
Justice Katz's decision on the High Court matter, which examined tenancy agreements drawn up in 1985 between Mobil and AWDA and prior negotiations, found this was not the case.