NSW Director Hit with $195,500 Fine Over Toxic Gas Exposure

A New South Wales company director has been convicted and fined $195,500 in the District Court of NSW after a doctor was seriously injured following exposure to hydrogen sulphide gas during biogas research activities.

The prosecution, brought by SafeWork NSW, related to a 27 February 2022 incident in which a doctor sustained significant injuries while participating in a series of biogas experiments involving hydrogen sulphide. The incident underscored serious shortcomings in the management of hazardous chemicals and safe systems of work at the site.

At the time of the incident, Peter Fusarelli was the sole director of Myra Corporate Pty Ltd, a scientific research and development company. He held responsibility for the day-to-day management of the business, including work health and safety oversight and ensuring appropriate risk controls were in place.

Mr Fusarelli pleaded guilty to an offence under section 32 of the Work Health and Safety Act 2011, for failing to comply with his due diligence obligations as an officer of Myra Corporate pursuant to section 27(1) of the Act. The court found that he did not adequately ensure that WHS risks associated with hazardous chemicals, including hydrogen sulphide, were properly identified, assessed and controlled.

The judgment emphasised that effective WHS management systems and documented safe work procedures are critical when undertaking high-risk scientific or industrial processes. In particular, failures in planning, risk assessment and implementation of controls in confined or poorly ventilated environments can have catastrophic outcomes.

The full judgment in this matter is available on the NSW Caselaw website. Mr Fusarelli retains the right to appeal against the sentence imposed by the District Court.

SafeWork NSW has reiterated that workers who have concerns about workplace health and safety can make anonymous reports by calling 13 10 50 or via the Speak Up Save Lives online reporting tool. Early reporting of hazards, particularly around hazardous chemicals, can prevent serious incidents.

Regulators continue to stress that a range of guidance materials and WHS resources are available to help PCBUs and officers manage chemical risks. This includes information on risk assessment, ventilation requirements, emergency response and the development of safe work method statements (SWMS) and other safe systems of work. Organisations seeking structured WHS documentation, including policies and procedures, can also access industry-specific templates and tools, such as those available from specialist WHS policy and procedure providers.

SafeWork NSW has highlighted that risk control measures for working with hazardous chemicals, including hydrogen sulphide, are well established. Key controls include appropriate ventilation, atmospheric monitoring, confined space entry procedures, emergency response planning and worker training in line with an organisation's WHS management system.

Hydrogen sulphide gas is highly toxic, flammable and colourless. Inhalation of high concentrations can cause rapid loss of consciousness after only one or two breaths, with the potential for fatal outcomes within minutes. These characteristics make rigorous risk assessment and control implementation essential for any work involving biogas or similar processes.

SafeWork NSW has reiterated that a thorough understanding of the hazards, systematic risk assessment and the implementation of documented safe systems of work are fundamental to reducing incidents involving hazardous chemicals. Businesses are encouraged to review their WHS policies, SWMS and chemical handling procedures to ensure they align with legislative requirements and contemporary best practice.