Chemical safety failures: lessons from two recent cases

Two recent South Australian prosecutions highlight how quickly chemical safety failures around prescribed dangerous substances can escalate into convictions, even where no one is physically harmed.

Regulators expect businesses to treat bulk pesticides and fumigants as high‑consequence risks, with licensing, labelling and engineered controls in place before a single ISO container lands on site. These cases underline that “in transit” excuses or informal arrangements with suppliers are irrelevant once dangerous goods are being kept at a workplace.

TriCal Australia Pty Ltd unsafe decanting and labelling gaps

TriCal Australia Pty Ltd, an agrochemical company, was prosecuted after inspectors observed dichloropropene being decanted from one container to another at its Wingfield premises with inadequate controls in place. This pesticide is toxic to humans and aquatic life, and its vapour presents both health and environmental risks if released. The company’s handling and storage practices did not meet the standard required under the Dangerous Substances Act general duty to avoid endangering people or the environment.

A prohibition notice stopped all decanting of dichloropropene until TriCal:

• correctly labelled all ISO containers during transport and storage
• completed a risk assessment for storing bulk dangerous goods
• implemented additional safety measures for ISO container storage
• proved that unlabelled containers were empty and purged

TriCal cooperated, rectified all issues and entered an early guilty plea. The Court treated the matter as a technical breach with no actual harm and recognised the company’s previously good safety record, but still recorded a conviction and imposed a financial penalty plus costs and a victims’ levy. The message is clear: even “technical” non‑compliance with chemical safety obligations can result in conviction where basic controls are missing.

TRG Transport Pty Ltd large‑scale storage without licence or controls

TRG Transport Pty Ltd, a major transport company, was convicted after inspectors discovered 11 ISO containers holding approximately 102,900 L of dichloropropene and 13,200 L of chloropicrin stored at its depot. Under the Dangerous Substances Act, the maximum quantities that can be stored without a licence are typically around 1,200 L for dichloropropene and 250 L for chloropicrin TRG exceeded those thresholds by orders of magnitude.

Despite this, the site had:

• no dangerous goods signage at the depot
• no spill containment or impact protection for the ISO containers
• no additional security to control access to the chemicals
• no adequate emergency plan to manage a leak, fire or explosion
• no training for workers in the risks of these substances
• no engagement with emergency services about the storage

Dichloropropene can form a flammable vapour cloud and is toxic with long‑lasting environmental effects, while chloropicrin is a corrosive fumigant that can severely damage skin and respiratory function. If released or ignited, both present a risk of death or serious injury and environmental harm. The Court accepted that TRG mistakenly believed the chemicals were “in transit” and therefore not being “kept” for licensing purposes, describing the mental element as between naivety and carelessness. That naivety was treated as an aggravating factor given the scale of the risk, and the company received substantial fines for breaching both the general safety duty and the licensing provisions.

Key chemical safety takeaways

These prosecutions emphasise several key points for chemical safety management:

• If dangerous goods are at your workplace, you are “keeping” them regardless of whether you label them as temporary or “in transit”.
• Bulk quantities of Class 3, 6 and other prescribed substances must be checked against local licensing thresholds before accepting delivery.
• ISO containers are not risk controls by themselves; you still need engineered, administrative and emergency controls that reflect worst‑case release scenarios.
• Courts look closely at whether you had systems in place before the visit: risk assessments, training, emergency planning and liaison with emergency services.
• An early guilty plea and cooperation can reduce the penalty, but they do not prevent a conviction where there has been a significant departure from chemical safety expectations.

Concise chemical safety checklist

Storage & handling general workplaces

• DG inventory up‑to‑date: list substances, UN nos, classes, packing groups, quantities.
• Threshold review done: check each substance vs licensing / manifest / separation limits.
• Segregation: store incompatible DG separately (e.g. oxidisers away from combustibles, acids away from cyanides).
• Labelling: GHS labels intact on all containers; decanted product in compliant, labelled containers only.
• SDS access: current SDS (≤5 yrs old) available to workers in work areas + digitally.
• Risk assessment: task‑based SWMS / JSA / risk registers for decanting, transfer, loading, sampling, maintenance.
• Engineering controls: bunding, spill containment, ventilation, impact protection for tanks / ISO containers.
• PPE: task‑specific PPE defined and issued (gloves, eyewear, RPE, protective clothing) with fit‑testing for tight‑fitting RPE.
• Training & competency: induction + refreshers on chemical hazards, labels, SDS, emergency actions, safe decanting.
• Emergency readiness: spill kits sized for worst‑case release, eyewash/shower, fire protection, first‑aid, clear procedures for leaks and exposures.
• Housekeeping: keep storage areas clean, free of ignition sources, with good access/egress and clear DG signage.
• Contractor mgmt: ensure transporters, tank cleaners and other contractors follow your chemical safety procedures.

Major hazard facility / high‑risk bulk storage (or close to thresholds)

• Formal safety case / SMS: documented major accident hazard study (HAZOP, bow‑tie, QRA) and controls.
• Siting & layout: separation distances, blast / thermal radiation modelling, traffic mgmt and crash protection.
• Containment & detection: double‑walled tanks or lined bunds, leak detection, gas detection, high‑level alarms and interlocks.
• Ignition control: hazardous area classification, EX‑rated equipment, hot‑work systems, static control, permit‑to‑work.
• Emergency planning: site‑specific ERP aligned with worst‑case scenarios; drills with fire / emergency services.
• Community interface: notification and consultation where off‑site consequences are possible; clear comms plan.
• Governance: regular audits, KPIs for chemical safety, incident / near‑miss reporting and action tracking to closure.
• Change management: MOC process for new chemicals, storage configurations, equipment changes and throughput increases.

Treat chemical safety as a core business risk, not a paperwork exercise. Once dangerous substances arrive on site, your systems need to be ready to prove you are controlling them.

• Official COPS below:
  
  SafeWork SA – Hazardous Chemicals
  https://www.safework.sa.gov.au/workplaces/chemical-and-hazardous-substances/hazardous-chemicals
• SafeWork SA – Dangerous Substances
  https://www.safework.sa.gov.au/workplaces/chemical-and-hazardous-substances/dangerous-substances
• Safe Work Australia – Hazardous Chemicals (Model WHS laws)
  https://www.safeworkaustralia.gov.au/topic/hazardous-chemicals
• Safe Work Australia – Managing Risks of Hazardous Chemicals in the Workplace (Code of Practice)
  https://www.safeworkaustralia.gov.au/doc/model-code-practice-managing-risks-hazardous-chemicals-workplace
• Safe Work Australia – Labelling of Workplace Hazardous Chemicals (Code of Practice)
  https://www.safeworkaustralia.gov.au/doc/model-code-practice-labelling-workplace-hazardous-chemicals
• Safe Work Australia – Preparation of Safety Data Sheets for Hazardous Chemicals (Code of Practice)
  https://www.safeworkaustralia.gov.au/doc/model-code-practice-preparation-safety-data-sheets-hazardous-chemicals