Jeremy Joseph Nipps as Joint and Several Administrator of Pilot Energy Ltd (Administrators Appointed), as Joint and Several Administrator of Pilot Energy (Ch Ccus) Limited (Administrators Appointed), and as Joint and Several Administrator of Royal Energy Pty Ltd (Administrators Appointed) [No 2] [2026] WASC 452 — Corporations & External Administration — Barrister AI
Jeremy Joseph Nipps as Joint and Several Administrator of Pilot Energy Ltd (Administrators Appointed), as Joint and Several Administrator of Pilot Energy (Ch Ccus) Limited (Administrators Appointed), and as Joint and Several Administrator of Royal Energy Pty Ltd (Administrators Appointed) [No 2]
Where companies exposed to decommissioning liabilities
Where directions impose obligations on administrators
Quick Take
1A debt arising from a regulator's recovery of decommissioning costs under directions given under s 574 and s 577 of the OPGGS Act (or equivalent State provisions) is not incurred by the company by choice acting through its administrators, nor for services rendered. It therefore falls outside s 443A(1), and the s 443D indemnity is unavailable, while the administrator's personal exposure may be unlimited.
2Section 447A empowers the court to limit administrators' personal liability for anticipated statutory clean-up or decommissioning costs. Relevant considerations include: whether the orders are confined to identifiable, impending or anticipated costs and exclude penalties and criminal proceedings; whether the risk is identified by reference to specific legislative provisions; the likelihood of the costs being incurred; whether any indemnity is available; and the Griffin Coal factors concerning creditors' interests, the objects of pt 5.3A and notice.
3On the facts, relief was appropriate for three reasons: the regulator had signalled it would undertake decommissioning work estimated at about $166 million, recoverable as a debt; no stakeholder indemnity was available; and the administrators would otherwise resign, causing immediate winding up and a lower return to creditors. By reason of pt 1.1A of the Corporations Act, however, no order could limit liability arising under s 96 of the PGEGGS Act (WA).
