Question

Hazardous Chemical Leak A manufacturing plant has leaked hazardous chemicals into a pond on the plant’s property. The leaking of these chemicals violates state environmental protection regulations. What accounting is required for this leakage? Does the government need to be aware of the leak before the company must account for the cost of remediation?

Answer 1

Even though the plant released hazardous chemicals in the pond situated at plant's property it should be accountable for it.

The plant should ensure before releasing the chemical  that it should neutralized,so that the effect on environment will be reduced.

If such leakage violates state environmental protection regulations,the company is legally liable which may include payment of penalty and may also include closure of business.

Yes, the government should know it before the company account for the cost remediation.

Every country has a separate department for protection of environment. Which sole objective is to protect the environment.

If the government knows about it before any remedy,it can measure the environmental degradation and collects penalties.