A potentially costly process to recoup some of the money spent by Cleanaway on the compost plant which was approved by the Joint Regional Planning Panel before being overturned when councillors were elected last September has started in recent days.

It’s understood Cleanaway is seeking around $840,000 from Federation Council.

Both parties are tight-lipped, but have confirmed discussions are underway.

“Cleanaway supplies waste services to Federation Council along with a number of other adjoining councils,” Federation mayor Pat Bourke said..

“From time to time issues arise, generally subject to 'commercial in confidence’, that require council to undertake sometimes protracted discussions relating to issues.”

Cleanaway was more forth-coming in a statement released this week.

“As previously stated, we undertook a substantial amount of work on the development approval for the organics facility at Howlong, on the council-owned landfill site,” a company spokesperson said.

“The approval for the facility was granted following a rigorous assessment process.

“The Federation Council then changed its position and refused to grant Cleanaway a lease at the site.

“We are currently in confidential discussions with Federation Council and we can’t comment further at this time.”

At one of its first meetings following last September’s elections, Federation Council ignored the recommendation of former general manager Chris Gillard to stay on the journey of building the compost plant within the Howlong tip site which began during a period of administration post the merger.

Mr Gillard departed a month later despite being under contract.

The JRPP rejected strong community opposition to the compost plant in August last year to grant its approval subject to more than 120 conditions which would have added to the cost of the project.

The conditions included widening the Howlong-Goombargana Road where the tip site is located and other measures addressing concerns about odour and amenity.

“The conditions were very favourable to the council and not so favourable to the developer,” former Federation administrator Mike Eden said.

“Looking back now I wouldn’t have been shocked if Cleanaway actually walked away when all things were weighed up at the time of the JRPP decision.”

The five-member JRPP decision wasn’t unanimous with former Corowa Shire mayor Bill Bott voting against the development application.