DFDL Thailand Legal Alert: Significant Fine on Soil Pollution External

According to a reputable news media in Thailand, a company operating business wholesale of waste and scrap and materials for recycling, has involved in the improper handling of industrial waste transported from production facilities for treatment and disposal. Instead of proper management, the waste has been piled up, illegally buried, or dumped within the factory and surrounding areas, causing damage to farmland and contamination of natural watercourses since 2011.

The investigation conducted by the Pollution Control Department (“PCD”), Ministry of Natural Resources and Environment against the Company revealed that surface water around the company’s facility has high levels of acidity and lead contamination, the quality of underground water in 12 locations was below standard and a watercourse in a nearby rubber plantation was found to contain a high level of acidity.

As a result, the PCD filed a lawsuit against the company to pay a fine based on the following offences under Enhancement and Conservation of National Environmental Quality Act B.E. 2535 (1992) (“ECA”):

  • Being a source of pollution that causes or is the source of leaks or dispersal of pollutants, resulting in harm to the life, body, or health of others, or causing damage to the property of others or the state. (Section 96 of ECA)
  • Acts in a manner that is unlawful, resulting in the destruction, loss, or damage to natural resources that belong to the state or are public property. (Section 97 of ECA)

Recently, the Rayong Provincial Court has ordered the Company to pay in amount of THB 1,743,589,923.46 (approximately THB 1.7 billion or USD 51,730,660) in compensation for environmental rehabilitation due to the damage caused by industrial waste leakage from the Company’s storage facility since 2011.