Mount Alexander Shire Council has requested a review of the Environment Protection Authority Victoria decision to fine the council $8200.
Infrastructure and development director Phil Josipovic said council was disappointed with authority's decision.
"We take our responsibility for managing our waste management facilities very seriously and in accordance with our licence conditions," he said.
"The grounds for review are based on exceptional circumstances as outlined in a letter to the EPA in October.
"The EPA is aware that council is managing the licensed landfill cell to closure.
"The waste in the cell was uncovered for a short period to complete the essential reshaping works in preparation for capping the cell.
"This involved waste being collected from the active tipping face and relocated to another area of the cell, which coincided with the EPA inspection.
"If further reshaping works are required, council proposes to notify the EPA in advance to discuss the plans and what measures can be put in place to prevent a licence breach."
The Mount Alexander Shire has been fined $8200 for failing to cover waste at the Castlemaine Landfill.
Officers saw "large areas" of uncovered waste and "litter being blown by the wind" during a site inspection in September, the Environmental Protection Authority's north west manager Scott Pigdon said.
All waste - apart from that at the tipping face - must be covered at all times, Dr Pigdon said.
"This is to prevent any wind-blown waste leaving the property, and impacting on the surrounding local environment," he said.
Covering waste also reduces odour and stops stormwater being contaminated, Dr Pigdon said.
"The licence breach was easily preventable," he said.
"Put simply, if the operator of the landfill had managed and monitored its exposed waste in accordance with its EPA licence it would have avoided this fine.
"This fine of over $8200 follows a letter sent to Mount Alexander Shire council, and other landfill operators, early in 2019 which detailed the expectations regarding waste cover licence conditions."
The shire can now have the decision reviewed, or determined by a court, Dr Pigdon said.
Sign up for our newsletter to stay up to date.