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Cancelling permit unlawful, Shawnigan Lake quarry says

The owners of a quarry near Shawnigan Lake say Environment Minister Mary Polak made an “unlawful and unreasonable” decision when she cancelled the site’s permit to receive and store contaminated soil.

The owners of a quarry near Shawnigan Lake say Environment Minister Mary Polak made an “unlawful and unreasonable” decision when she cancelled the site’s permit to receive and store contaminated soil.

Mike Kelly, president of quarry-owner Cobble Hill Holdings Ltd., states in a March 6 letter to Polak that her decision will cause the company substantial harm.

“The resulting impact on [the company] is yet to fully crystallize, but we expect it will be catastrophic on our company, employees and ourselves,” Kelly writes. He adds that, while the environment will be protected by the site’s approved closure plan, “we will be destroyed.”

Polak announced Feb. 23 that she was taking the rare step of using her powers under the Environmental Management Act to cancel the site’s permit following its suspension on Jan. 27.

The minister said the company had been given 15 business days to provide three required documents and submitted only two prior to the deadline.

“Specifically, the company failed to provide the province with adjusted financial security in the form of an irrevocable letter of credit,” she said in a statement.

Kelly, however, argues the permit only requires the company to post security as specified by the government. The company submitted new security estimates at Polak’s request, but nobody from the ministry approved the estimates nor specified a new security amount, he said.

“[The company’s] position is that your decision to cancel the permit in the absence of a specified amount is unlawful, and quite frankly unfair,” Kelly writes.

“We are seeking advice with respect to our legal remedies of your action and fully intend to pursue … them.”

Kelly said Cobble Hill was in the process of getting financing to provide increased security costs, and Polak’s decision to cancel the permit halted that process, he said.

In a Feb. 20 letter, the company had asked Polak for 15 more business days to secure financing for the letter of credit, but the minister refused and cancelled the permit.

Despite these concerns, Kelly said Cobble Hill remains committed to working with the government. “CHH fully intends to co-operate with ministry staff over the upcoming months to ensure a safe closure to the encapsulated cell and the mine operations,” he said.

Polak’s ministry said in a statement Friday that it gave the company sufficient notice to update its financial-security amount.

“The permit was cancelled by the minister on Feb. 23 because the permittee did not provide updated financial security as required,” the statement said.

The ministry added that Polak’s decision was based on assessments by staff who are “technical experts in their field” and was not taken lightly.

“To be clear, the permit was not cancelled due to pollution occurring, nor was it directly related to anything before the courts,” the statement said. “This decision was based on the principle of escalating enforcement and repeated failure by the company to meet deadlines and comply with permit requirements.” 

lkines@timescolonist.com