A bankrupt businessman has pleaded guilty to keeping waste likely to cause harm.
James Joseph Heaney, of Spruce Meadows, admitted two charges of keeping controlled waste and two of keeping waste likely to cause harm to the environment or human health.
The offences were committed between July 1, 2008 and October 9, 2009.
The 44-year-old was a director of Campsie Tyre Recycling Limited at the time and had sites at Pennyburn Industrial Estate and Campsie Real Estate.
Derry Crown Court heard that 405,000 tyres were stored between the two sites with a value of around £121,000.
The tyres were later destroyed by fires, however Heaney is not charged in connection with them.
It was revealed the maximum sentence for the offences is five years imprisonment.
Sentencing was adjourned for a probation pre-sentence report.
The 44-year-old was released on continuing bail and will appear in court again on June 18.