Environment Protection Authority (EPA) has cancelled the licence of Mobil Refining Australia Pty Ltd following poor performance at its Altona site.

EPA Victoria chief executive officer John Merritt said, "EPA is less than impressed with Mobil's track record in which there has been a number of incidents at the site all with the potential for environmental and community risk."

Merritt said in a statement that Mobil's onsite practices did not demonstrate a high level of environmental performance to justify accreditation.

In February, a 3.5 million-litre tank of unleaded petrol at the Altona refinery leaked near local wetlands. This was followed by a flaring from stacks caused by power outage in May.

The loss of accreditation means that Mobil will no longer be entitled to a reduced licence fee and the ability to conduct works without a works approval in certain circumstances.

The cancelation does not affect Mobil's operating licence.

Despite losing its accredited licence, which it held since 2001, Mobil remains licenced to operate and must comply with a strict set of environmental regulations and conditions that EPA will monitor.

Mobil Refining Australia has yet to comment on the issue.

Under the 1970 Environment Protection Act, EPA may grant accreditation if it is satisfied the licence holder can demonstrate a high level of environmental performance and an ongoing capacity to maintain and improve environmental performance at the site.

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