The Dorset Council and several state government departments remain at loggerheads over a financial solution to an illegally built works depot at Derby.
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The council and departments have been in negotiations under the guidance of the Solicitor-General since September last year.
The council constructed the depot on a private mining lease at Briseis Hole despite several written warnings from departments early last year that it did not have development approval.
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In a statement, a Department of Primary Industries, Parks, Water and Environment spokeswoman said: "The DPIPWE and Mineral Resources Tasmania do not support the proposed solution put forward by the Dorset Council to resolve the unauthorised construction of a council depot on Crown Land. The matter remains under negotiation".
The Solicitor-General remains central to negotiating an acceptable settlement of the concerns identified by the mining lessee, the Parks and Wildlife Service and Mineral Resources Tasmania in relation to the actions taken by the Dorset Council.
The Dorset Council 2019-20 annual report has conceded that ratepayers may have to cough-up to settle the issue with an entry under contingent liabilities.
"Council may be subject to legal proceedings which may result in possible penalties from the construction of council's depot building on Crown land at Derby," the report said.
Right To Information documents released by DPIPWE indicate that the mining lessee Derek Hayes is not willing to surrender the ground to the council.
An email from MRT manager scientific services Clint Siggins outlined the promise of the mining lease.
"The principal resource at the site is sand derived from the historic Briseis Tin Mine," he said.
"The resource is freely dug and requires no pre-processing before use making it a very attractive product for consumers. The sand resource is significant and is likely to continue at depth across the lease at greater than 80 metres.
"The secondary resource is basalt hard rock. Both products are freely extracted and require no pre-processing ... making the resource very affordable and readily available to local markets."
The lessee Mr Derek Hayes raised concerns with regard to encroachment onto the mining lease of the recently constructed Dorset Council Works Deport in particular.
They included: works depot and boundary fence restrict access to the resource as the road was not suitable for heavy vehicles and impedes extraction of the resource due to proximity of the fence depot; discharge from the (depot) wash down bay reports directly onto the mining lease; the wastewater system report to the mining lease; the TasWater connection crosses through the mining lease.
