Alberta regulator lays charges against Imperial for failing to contain, report oilsands berm overflow

January 17, 2025 Canuck

Imperial Oil is facing nine charges for allowing millions of litres of contaminated wastewater to leak from its Kearl oilsands mine in northern Alberta, and for failing to mitigate the environmental damage.

The Alberta Energy Regulator announced the charges Friday in connection with a berm overflow of industrial wastewater at the company’s Kearl mine, about 70 kilometres north of Fort McMurray.

The charges relate to a series of leaks at the industrial site that went unreported to the public for months. The berm overflow was the second of two significant leaks at the Kearl mine, which put Alberta’s regulatory practices in the spotlight and raised questions about transparency in the oilsands.

In a statement Friday, the regulator said Imperial faces nine charges in connection with a release from an overflowing berm that was reported to the AER on Feb. 4, 2023.

The incident resulted in the release of 5.3 million litres of tailings-contaminated wastewater from a catchment pond at the northern edge of the Kearl mine.

The charges allege Imperial failed to immediately report the release to the regulator as required, and failed to take adequate steps to contain and mitigate the damage.

The company has also been charged for releasing a harmful substance into the environment and for causing damage to public land.

Six of the charges were laid under the Environmental Protection and Enhancement Act. The other three were laid under the Public Lands Act.

The first seepage from the Kearl site was first noticed in May 2022 but neither Imperial nor the Alberta Energy Regulator kept local First Nations or provincial and federal environment officials briefed about the potential for contamination.

News of that initial leak came out in February 2023 in an environmental protection order from the regulator, after the release of millions of litres of tailings wastewater from a catchment pond at the site came to light.

The initial seepage was reported to First Nations and communities as discoloured water pooling on the surface. They received little information after that until February when the environmental protection order was issued.

The delays in reporting both leaks to the federal government and Indigenous communities downstream of the mine has raised ongoing concerns about regulatory oversight within the industry and prompted a series of investigations, including an ongoing probe by the federal government.

Alberta is required to notify the federal government of such leaks within 24 hours.

The realization that nine months had passed between the discovery of the original release and the public announcement drew widespread anger from Indigenous communities, downstream water users and conservation advocates.

The regulator previously fined the company $50,000 in August 2024 in connection with the original release at Kearl.

The regulator concluded the company broke environmental laws in responding to the incident. The fine was accompanied by a series of requirements for mitigation plans and research into the environmental effects of the seepage and how to prevent future operational failures.

‘We deeply regret’

Company officials have said that the berm overflow at a spillway on the northern edge of the Kearl site began on Jan. 30, 2023. The company said it was not discovered until days later when the snow around the drainage pond began to stain.

In a statement on its website Friday, Imperial said it was aware of the new regulatory charges and were “assessing next steps.”

“We recognize this incident caused concern in the community and we deeply regret this happened,” Imperial said.

“The company has made changes to prevent an event like this from happening again. Mitigations have been put in place for this drainage pond and other ponds in the water collection system and we are confident the actions we have taken to address the issue are working.”

Imperial officials maintain the release from its drainage pond has caused no damage to local wildlife, fish or nearby river systems.

Meanwhile, the initial leak that went unreported for nine months continues to seep along the northern boundary of the mine, both on and off the site. Recent testing has found evidence of groundwater contamination from the ongoing seepage within approximately one kilometre of the site, the company said.

Imperial said it has installed an expanded control system, more than tripling the total number of pumping and monitoring wells on site to help monitor and contain the leaks.

The nine charges announced Friday are for:

Releasing a substance into the environment that caused or may have caused a significant adverse effect.
Failing to report a release as soon as they knew or ought to have known of the release.
Failing, as soon as they became aware or ought to have become aware of the release, to take all reasonable measures to repair, remedy and confine the effects of the substance.
Failing, as soon as they became aware or ought to have become aware of the release, to take all reasonable measures to remediate, manage, remove or otherwise dispose of the substance in such a manner as to prevent an adverse effect or further adverse effect.
Contravening an approval condition for releasing substances from the plant to the surrounding watershed.
Contravening an approval condition for not immediately reporting to the AER director.
Accumulating waste material, debris, refuse or garbage on public land.
Causing the loss or damage of public land.
Causing activities on, or the use of, public land that is likely to result in loss or damage to public land.

The company’s first appearance in court is set for Feb. 26 at the Alberta Court of Justice in Fort McMurray.

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