According to the EA, St Regis, which is a subsidiary of DS Smith and the largest waste paper recycler in the UK, deliberately falsified records in order to avoid the £1.2m cost of improving its treatment system.
St Regis was found guilty of falsifying effluent quality results relating to the discharge from its Higher Kings paper mill in Cullompton into the River Culm in Devon.Christopher Steer, St Regis' technical manager, was also found guilty of falsifying records following the six day trial at Exeter Crown Court.
The jury heard that a freshwater dilution system had been installed to dilute effluent from the mill with river water prior to the sampling point; the dilution system was not brought to the attention of the Environment Agency.
Spence Seaman, pollution, prevention and control officer for the EA, said: "By presenting the performance of its effluent treatment plant as being better than it was, the company saved a considerable amount of money by not having to carry out major improvement works."
However, Chris Rosser, managing director of St Regis, said the lapse that occurred "was an isolated incident" that took place despite "strict environmental control" operated at the mill.
Rosser added that this was the first time the EA has brought charges against the company or any of its mills, all of which are certified to ISO 14001.
He said: "We fully admit that agreed procedures were not followed by some of the staff. We pleaded guilty on these points.
"[We] strongly refute the suggestion that an isolated incident at the smallest of our sites indicates in any way that we, as a company, endorse poor environmental practice".
St Regis will discuss with its lawyers the options for appealing the finding that it intentionally made a false entry in a required Environment Agency record.
The case against Steer was adjourned for sentencing until 29 November 2010 while the case against St Regis Paper Co was adjourned until April 2011.