Liquidator PwC Australia has taken responsibility for securing the property in Lara, which is considered a potential environmental and public health catastrophe should a fire break out at the highly flammable rubbish pile, where the waste spreads over an area about the size of the MCG.

The property in Lara was abandoned last year by now-defunct C & D Recycling and its now-bankrupt operator, David McAuliffe, who had allegedly been running the “recycling centre” as a illicit rubbish tip for several years.

The bid by landowner The Australian Sawmilling Company (TASCO) to find a solution to the mess came to an end on Monday after TASCO was put into liquidation by its parent company, Korean-owned timber conglomerate Dongwha.

TASCO’s sole asset is the land underneath the rubbish pile, which has been valued at $6 to $8 million.

The estimated costs of returning the site to compliance with its planning permit or to conduct a total clean up range from $20 million to $150 million.

“We are committed to working with the City of Greater Geelong, the Environment Protection Authority, and other stakeholders to agree on a framework for the rehabilitation of the Broderick Road Recycling Site,” said Stephen Longley of PwC Australia.

State government agencies are understood to be working behind the scenes in an effort to persuade the liquidators to accept responsibility for the expensive clean-up.

But sources say the council and the EPA will probably be forced to bear a “major” part of the costs associated with protecting the site and underwriting its clean-up should it become a "legacy site" which no solvent, private entity could be held responsible for.

The state government has been contacted for comment but did not respond by the time of publication.

A multi-agency taskforce, including emergency services, is overseeing management of the site.

“Community health and safety remains the number-one priority,” City of Greater Geelong chief executive Martin Cutter said.

“All agencies will continue to work together to ensure effective fire prevention and response in the short term and oversee the clean-up of this site in the longer term.”

Last month Mr McAuliffe was sentenced to 90-days in prison over his management of the site. He is appealing.

Strategic assessment and planning documents show the worst-case-scenario for a fire anticipates serious and widespread air, water and soil contamination, forcing evacuations of homes, businesses, schools and potentially disrupting operations at Avalon Airport.

It is estimated an out-of-control fire could burn for up to a month.

The former recycling centre is 1.2 kilometres from a residential housing estate in Lara and about three kilometres from Corio.

“Smoke from a fire this size could potentially expose people to ‘unhealthy’ or ‘hazardous’ air quality readings for short or extended periods of time up to 5 kilometres from the site,” according to the assessment prepared by Emergency Management Victoria.

“The long-term impacts of contaminants in the soil and water courses is unknown but potentially substantial.”

The health and environmental risks are also aggravated by the findings of a preliminary study that suggests the stockpiles are riddled with illegally dumped asbestos, tyres, household garbage, green waste and contaminated soil.

“We have no idea what is actually in the piles. We have to plan for the worst-case scenario,” said Pat Geary, the CFA’s operations officer for Corio, in August last year.

“We’re going to have to chuck everything we’ve got at it right at the start. The weather conditions will make all the difference as well. It’s definitely got the potential to be a dirty, smoking, smouldering fire that will burn for weeks.”