Queenstown firm Steve Rout Contracting Ltd has been granted retrospective consent for quarrying schist at Earnscleugh, near Alexandra, despite calls for it to be prosecuted.
Those opposed to the company's application for consent will now consider whether to appeal the decision to the Environment Court.
Central Otago Environmental Society spokesman Richard Kohler said the Central Otago District Council's decision to grant retrospective consent was disappointing and created a dangerous precedent.
"We would have liked to see the council make a strong case against Rout and prosecute the company to stop others coming in [to the district] and doing the same thing. Instead, this cowboy operator got slapped with a wet bus ticket," he said.
Steve Rout extracted an estimated 3000cu m of schist from a hectare of private property - damaging archaeological features in the process - until he was ordered to cease operation by the council in July 2008.
Dr Kohler, of Poolburn, said members of the environmental society would discuss the panel's decision, consult lawyers and look at its finances before deciding whether to lodge an appeal.
Mining companies and Earnscleugh residents also made submissions in opposition to Mr Rout's application for retrospective consent.
Opponents contacted by the Otago Daily Times yesterday said they would consider the panel's decision before deciding whether to appeal.
Resource consent appeals must be lodged with the Environment Court within 15 working days of receipt of the consent decision.
District council planning team leader Ann Rodgers said the council would not prosecute Steve Rout as the activity of his firm was approved, albeit retrospectively, and no longer considered to be illegal under the Resource Management Act.
Ms Rodgers said initially the council could have considered taking enforcement action against the company when it was found to be operating without required consents, such as imposing an abatement notice, fine or seeking enforcement through the courts.
Because Steve Rout co-operated fully once asked to cease operations, the council instead allowed the company to apply for retrospective consent, she said.
Consent was granted to Steve Rout subject to 25 conditions, including restoration of the site to mitigate the effects of such activity.
The property is owned by Dunedin resident Grant McLean and his siblings, who agreed Steve Rout could extract some schist for testing.
They claimed the arrangement was breached by Steve Rout as the company took more than expected, warranting retrospective consent.
Steve Rout staff did not return calls yesterday.
