Nearly a year after the NSW Kanwal case made headlines, the fallout (and opportunity) continues to grow. Fines are rising, enforcement is tightening, and directors may now be held personally liable, even if companies wind up. Here’s why every service station owner needs to act now and how OP can help you stay ahead.

In August 2024, a NSW Supreme Court awarded more than $9 million in damages to a landowner whose property was contaminated by fuel leaking from a neighbouring service station, known as the Kanwal case. Though nearly 12 months old, it’s more than a past headline, it’s a potent wake-up call for the industry, perhaps even more relevant today. Let’s look at why, what that means for your business, and how we can help you avoid getting caught up in such a costly and reputationally damaging situation.

Regulatory clarity has just strengthened

In July 2024, the NSW Government introduced amendments that significantly expanded the enforcement powers of the NSW Environment Protection Authority (EPA). These changes allow the EPA to hold company directors, related entities, and even associated individuals accountable for environmental contamination, regardless of whether the original operating company still exists. Dissolving a company or transferring ownership is no longer an escape route from environmental liability. For service station owners, the message is clear: compliance and proactive management are not just corporate obligations, they are personal responsibilities that can follow decision-makers well beyond the life of the business.

Financial risk escalation continues

The cost of environmental breaches is rising year on year, and not just through fines or civil damages. Under the Contaminated Land Management Regulation 2022, the EPA now operates under a formalised cost-recovery framework that allows it to pass on expenses for everything from site inspections and sampling to remediation oversight and administrative work. These charges are indexed annually, meaning the longer a contamination issue remains unresolved, the more expensive it becomes. The Environmental Defenders Office has highlighted that even seemingly minor compliance delays can quickly snowball into six-and seven-figure liabilities once EPA cost recovery is added to legal penalties and civil claims.

Environmental management responsibility is non-negotiable

Service station sites are inherently high-risk because of their storage and handling of fuels and other hazardous substances. Under the Contaminated Land Management Act 1997 (NSW) and equivalent legislation in other states, owners and operators have a statutory duty to proactively manage contamination risks and promptly notify the EPA if contamination is suspected or confirmed. This duty is not limited to current operations; it extends to past activities and inherited contamination where you are now the site owner. Failure to meet these responsibilities can result in Management Orders, Clean-Up Notices, and costly court actions. In practice, this means carrying out regular system integrity checks, conducting ongoing groundwater and soil monitoring, and taking prompt, documented action whenever a leak, spill, or infrastructure failure is suspected.

How the Kanwal case unfolded and why it still matters now

These regulatory shifts and cost implications are not abstract, the Kanwal case shows exactly how they play out in the real world.

  • 2016–2018: A neighbouring property sale collapses when contamination from the service station is discovered. The EPA investigates and declares the site “significantly contaminated”, issuing a Management Order to investigate and remediate.
  • 2018–2022: The operator, fails to meet the timelines outlined in the order. After a delay of more than a year, the Land and Environment Court fines the company $320,000 for non-compliance.
  • August 2024: The NSW Supreme Court awards $9 million in damages to the affected landowner for the loss of property value and remediation costs.
  • October 2024: A new Clean-Up Notice orders the removal of underground tanks, excavation of contaminated soil, and long-term groundwater monitoring.
  • July 2024 onwards: Legislative changes give the EPA the power to pursue directors and related entities personally, even if the operating company is wound up, meaning liability can follow individuals.

What’s important to note is that the contamination itself was discovered nearly a decade ago, yet the financial and legal fallout is still unfolding. This is why the case remains relevant: the consequences of poor environmental management can last for years, even decades, and they grow more severe with time.

Key takeaways for service station owners and operators

  1. Act quickly on suspected leaks or contamination: Delays don’t just risk higher clean-up costs; they can also be taken into account by courts when awarding damages.
  2. Don’t rely on corporate structure for protection: With new laws, liability can extend to you personally, even if the company ceases trading.
  3. Maintain meticulous records: EPA investigations and court cases hinge on documentation. Keeping inspection reports, maintenance logs, and correspondence can make the difference between demonstrating diligence and facing penalties.
  4. Regularly assess your underground storage infrastructure: Integrity testing, leak detection systems, and preventative maintenance are far cheaper than remediation.
  5. Plan for cross-jurisdictional compliance: If you operate in multiple states, understand each jurisdiction’s contaminated land laws; they differ in reporting thresholds and enforcement mechanisms.

How Oracle Petroleum can protect your business

At Oracle Petroleum, we help you not only stay compliant but also avoid becoming the next cautionary headline:

  • Proactive site audits to identify risks before they escalate.
  • Integrity testing and leak detection upgrades to protect underground fuel systems.
  • EPA order response management, ensuring you meet deadlines and technical requirements.
  • Coordination with accredited site auditors to produce legally robust reports.
  • Remediation project oversight, from excavation to groundwater recovery.
  • Environmental due diligence for acquisitions, so you don’t inherit costly liabilities.

Don’t Wait for a Court Date – Act Now to Protect Your Site and Reputation

The Kanwal case is proof that environmental compliance isn’t just a box-ticking exercise, it’s a direct safeguard against multi-million-dollar liabilities, years of legal stress, and lasting damage to your business reputation. This time last year, one service station’s inaction was already setting the stage for a record damages payout. Today, with stronger laws, higher EPA powers, and rising cost-recovery rates, the stakes for inaction have only grown.

As a service station owner or operator, you have two choices:

  • Wait and hope nothing happens – risking that a small leak today becomes a major contamination case tomorrow.
  • Act now to detect, prevent, and manage risks – avoiding the cost, stress, and public scrutiny that comes with being on the wrong side of an EPA investigation or court ruling.

At Oracle Petroleum, we understand the regulatory landscape, the technical demands of site management, and the financial realities you face. We bring together environmental expertise, compliance know-how, and hands-on operational support to help you:

  • Identify risks early with comprehensive site audits.
  • Stay ahead of legislation with proactive compliance planning.
  • Respond quickly and effectively to any EPA order or investigation.
  • Preserve your business value with ongoing infrastructure maintenance and contamination prevention measures.

Don’t let your site become the next Kanwal. Contact Oracle Petroleum today to book your Environmental Compliance Audit and safeguard your business against costly surprises.