Environment Protection Act 1997

The authority may, as a condition of an environmental authorisation, require the holder of the authorisation to provide a financial assurance to the authority if satisfied that the condition is justified having regard to—

the likelihood that the authorised activity will cause serious or material environmental harm other than harm permitted by or under this Act; and

the likelihood that action will need to be taken in the future to remedy the environmental harm described in paragraph (a); and

the environmental record of the holder of the authorisation; and

any other matter the authority considers relevant.

A financial assurance must be in the form of—

a bank guarantee; or

a bond; or

an insurance policy; or

another form of security that the authority considers appropriate.

The authority must not require financial assurance of an amount greater than the total amount that the authority has reasonable grounds for believing is likely to be needed to remedy the foreseeable environmental harm that could result from the conduct of the authorised activity.

A financial assurance must be provided—

for the period specified in the authorisation; or

if no period is so specified, until—

the authorisation is varied to remove the condition requiring the financial assurance; or

the authorisation is cancelled under section 55 or section 63 or is surrendered under section 66.