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Whopping fine for quarry operator

January 29, 2010 Simcoe Reformer

A local company has been hit with a stiff fine for operating a quarry without licence.

Nichols Gravel Ltd. of Delhi was fined $197,500 in the Ontario Court of Justice in Cayuga on Wednesday. Gary Nichols, the company's president, was fined $204,500.

The charge stems from a dispute between Nichols and the Ministry of Natural Resources that began in October 2004. Nichols received permission from the Ontario Municipal Board that year to extract aggregate from a property on Haldimand Road 9 west of Hagersville. The OMB attached conditions to its decision and Nichols Gravel took those to be the terms of the permit.

When the licence arrived, the MNR had attached conditions to it that were not part of the OMB decision, according to Nichols. Nichols challenged the MNR's right to do so and ignored a number of warnings that he would lose his licence if he did not comply. Nichols extract aggregate from the property even after Minister of Natural Resources David Ramsay revoked his licence in September 2004.

The minimum fine for operating a gravel pit in Ontario without a permit is $500 a day. MNR charged Nichols Gravel for 409 days of illegal operation. This week's decision was rendered by Justice of the Peace Prior Bonas.

Nichols described the punishment as "ridiculous and outrageous."

"We intend to appeal," he said. "A fine this size is large enough to bankrupt a small company. If this goes through, there will be 13 people left unemployed."

The MNR and Nichols Gravel have been at legal loggerheads for nearly seven years. While the company works on its appeal, Nichols is pursuing private prosecutions against a handful of MNR officials. He alleges MNR is conspiring against him and has produced false documents related to its investigation.

For its part, the ministry is pleased with Wednesday's decision.

"This is a very significant penalty for an investigation that has had many challenges throughout its lengthy course and is the direct result of the dedication and hard work of enforcement and district staff in Aylmer," Brad Gerrie, regional enforcement operations manager in this part of Ontario said in an e-mail to his staff. "Well done!"

The period Nichols was cited for ran from Oct. 7, 2004 to Nov. 30, 2006. Nichols Gravel has since leased the disputed property to a First Nations company called Aboriginal Imports. Nichols said MNR enforcement activity stopped once he did that, adding Aboriginal Imports has been shipping gravel from the property since then unmolested by provincial authorities.

"It seems to be two-tiered justice all over again," Nichols said. "Everything seems to be political anymore. Nothing seems to go by the rule of law."