Mobil wins nearly $1m court costs from Waterfront Auckland

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

Publicly-owned Waterfront Auckland must pay Mobil almost $1 million in court costs for its failed attempt to get the oil company to foot the bill for cleaning up a heavily contaminated area of 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 Justice Sarah Katz in February last year decided that Mobil was not contractually obliged to decontaminate the subsurface of the land.

After the event, neither side could agree on what Waterfront Auckland should pay Mobil in costs.

Mobil sought costs and disbursements of $1.42 million, while Waterfront Auckland only accepted liability for $276,730 of that amount.

In a decision released earlier this month, Justice Katz ordered the development agency to pay Mobil $930,691.

Read the latest costs decision here: