Forestry firm fined over logging debris

New Zealand's largest forestry management company, PF Olsen, has been fined $80,000 in the Tauranga District Court for two offences involving the collapse of piles of logging debris into a stream during heavy rain.

The successful prosecution by Environment Bay of Plenty represented the largest fine imposed for any prosecution undertaken by the council for breaches of the Resource Management Act.

The collapses took place after three days of heavy rain in April 2008. Debris was washed into valleys and streams, causing "significant effects" to several waterways.

The collapse was in the Waiotahe Forest near Opotiki.

In sentencing, Judge Jeff Smith called it a very serious matter.

He said PF Olsen was aware of its responsibilities and obligations under the act and that its staff were working in an area that was "extremely fragile". The area was deeply incised and that the company was experienced enough to know that slips there were inevitable.

Judge Smith said PF Olsen failed to heed many warnings from the council about the instability of the logging debris.

"I am not prepared to accept it was bad luck," Judge Smith said.

In determining the size of the fine, he took into account PF Olsen's guilty pleas and $250,000 of remedial work carried out by the company since the breaches.

There had also been a major review of company management processes for high-risk sites.

Environment BOP chairman John Cronin said that when a company received resource consent then it was their contract with the community to care for the environment.

PF Olsen faced two charges - disturbing exotic and plantation vegetation in an erosion hazard zone, and discharging contaminant on to land in circumstances which may result in it entering water.

Slash piles of tree limbs and bark collapsed during the heavy rain, sending large amounts of slash, debris and sediment sliding down ridges into valleys and streams below.

Olsen's chief executive, Peter Clark, commented after sentencing that the incident occurred on some of the steepest and most erosion-prone country in the world.

The slips happened during a high-intensity localised storm.

Building roads and skids required to carry out harvesting exacerbated the risk and special skills and care were required to cope with such storms.

Fortunately, there was no long-term environmental harm, he said.

Mr Clark hoped the prosecution would not put off investors planting trees on steep erodible hill country in the Bay of Plenty.