Directors of a North Otago farm company claim Waitaki District Council is failing to properly monitor the Oceana Gold mine at Macrae's Flat.
Oceana Gold is the largest gold mine operating in New Zealand. An Environment Court hearing has begun in Dunedin.
Two directors of Deepdell Station, Trevor Hay and Gordon McNab, claim the district council is not meeting its legal requirements to monitor Oceana Gold.
They are concerned about the environmental effects of ore from Reefton being processed at the mine and say the mine's electrical supply line runs across their station without easement or consent.
In correspondence with the applicants, the council says the ore processing is allowed under Oceana Gold's existing consents and the matter of electricity supply should be taken up with the Network Waitaki power company.