July 23, 2007

Organic waste processor fined $100K for failing to submit financial assurance, annual reports

STRATFORD, ONT-National Challenge Systems (NCS) was fined $100,000 and levied a victim fine surcharge in relation to its failure to submit financial assurance and annual reports for its disposal site in Perth County, as required by the Ministry of Environment (MOE). The Ministry had granted NCS subsidiary Organic Resource Management (ORM) approval to store and transfer specified organic wastes at the site. The terms of the approval required submission of financial assurance and annual reports to the MOE, but inspections revealed that this was not being done. The court was told that a Ministry inspector contacted ORM repeatedly to request the annual reports and the financial assurance, but the company did not comply. After an investigation by the Ministry's investigations and enforcement branch, NCS, the parent company was charged with, and pleaded guilty to, failing to comply with the two conditions of its approval requiring it to have financial assurance in place for the site and to submit an annual report for the 2005 fiscal year. NCS (which has since changed its name to that of its subsidiary, ORM) was fined $50,000 on each count and given six months to pay. After the MOE investigation began, the company submitted the required financial assurance of almost $55,000, along with annual reports for 2004, 2005, and 2006. The court was also informed that MOE inspectors found the waste storage facility to be well operated and well maintained.

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