Mobil takes $10m tank farm fight to Supreme Court

Auckland's waterfront 'tank farm' shown in 2010. Photo / Richard Robinson

Oil giant Mobil, in an attempt to avoid a $10 million bill, wants the Supreme Court to decide the case over just who pays for the clean-up of a heavily contaminated area of Auckland's Wynyard Quarter.

Mobil Oil leased two properties in Auckland's waterfront 'tank farm' for more than 50 years.

When Mobil's lease for the two sites ended in 2011, it was found the land they were on had been heavily contaminated.

While it was established the company was not solely responsible for contamination to the land - other oil companies as previous tenants and neighbouring tenants all contributed too - Waterfront Auckland claimed Mobil had to deliver the land in a completely "uncontaminated condition" at the end of its lease term.

It took the oil company to the High Court at Auckland, where it was decided that if Mobil was liable, it would pay the council-controlled organisation $10 million in damages.
But that court in February last year decided that Mobil was not contractually obliged to decontaminate the subsurface of the land.

Waterfront Auckland - now called Panuku Development Auckland - then challenged the decision and last month the Court of Appeal reversed it, awarding a $10 million judgment to the council-controlled organisation.

The Supreme Court has confirmed Mobil has since filed leave to appeal in the case. Submissions from both parties were now due to be filed, a staff member at the court said.