Thailand: Significant Fine on Soil Pollution

DFDL Thailand

10th November 2024

An investigation has been conducted by the Pollution Control Department against a Company which revealed that surface water around the company’s facility has high levels of acidity and lead contamination, with 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”):

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.

Kraisorn Rueangkul, Partner, Thailand

Kraisorn is a Country Partner of DFDL Thailand, and the Country Head of the foreign direct investment, regulatory & compliance, and employment practice groups.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

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DFDL Thailand

Thailand
dfdl.com

In 2005 DFDL established a permanent presence in Bangkok to better serve the needs of our growing client base in Thailand, especially those businesses and stakeholders investing across the region. Since then, we have expanded and solidified a wide variety of practice groups. These include: corporate and commercial; mergers and acquisitions; energy, mining and infrastructure; banking, finance and technology; real estate; employment; and tax.

Our Thai team works closely with our integrated network of offices across the region to provide international standard legal and tax services, with in-depth and comprehensive knowledge of the local environment. Our legal advisers have practical experience in a wide range of legal areas, from the feasibility phase through to the operation stages of an investment project, and can provide legal and tax advice on all aspects of Thai law.

The Bangkok office is also where a number of DFDL’s regional advisers are based, all with extensive and longstanding experience is complex multi-jurisdictional matters.

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