T&J Standish Sawmills in Offaly, Ireland faces legal action by the Environmental Protection Agency (EPA) after failing to comply with the requirements of its integrated pollution control (IPC) licence.
An EPA inspection in September revealed that the company was allowing preservatives from newly treated timber to drip onto the ground in contravention of its licence.
The company had also failed to notify the EPA about the failure of a pump which resulted in preservatives overflowing into a yard.
The EPA inspector also claimed that three times the permitted level of water had flowed through a filtration unit designed to remove contaminants from the plant, and that there was no attempt to separate treated timber waste from untreated timber waste or to store it under cover.
T&J Standish said that the first two breaches of its IPC licence would not happen again, but disagreed with the last two.