Oilsands giant fined $278K after 'major' contravention of environmental protection act

A file photo of the Horizon Oil Sands project. (CNRL)

The Alberta Energy Regulator (AER) fined Canadian Natural Resources Limited (CNRL), a crude oil and natural gas company, $278,000 for a breach of the Environmental Protection and Enhancement Act (EPEA).

An investigation showed that CNRL failed to "prevent a hazardous substance containing bitumen from coming into contact with birds and other wildlife," according to the AER.

This happened between May 21 and Aug. 4 of 2022 and resulted in bird fatalities.

The incident goes against section 155 of the Environmental Protection and Enhancement Act which reads:

• A person who keeps, stores or transports a hazardous substance or pesticide shall do so in a manner that ensures that the hazardous substance or pesticide does not directly or indirectly come into contact with or contaminate any animals, plants, food or drink.

In 2021, an island emerged in CNRL's Horizon Oil Sands mining operation tailings facility, according to the AER director's decision report.

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At the time, no bird nests were found on the island and it submerged again.

"No efforts were made to eliminate the island or manage the level of water in this area to prevent its re-emergence," according to the report. "In the spring of 2022, the island re-emerged which became a habitat and nesting site for birds as well as predators such as wolves and coyotes that could access the island."

The report details the timeline in 2022:

• May 21 - CNRL discovered 271 California gull nests and one Canada goose nest on the island;
• June 7 - CNRL first notified the AER of the formation of the island;
• July 12 - CNRL first notified the AER of evidence that it had contravened section 155 of the EPEA when it reported that California gull chicks were discovered to be oiled;
• Aug. 4 - California gull chicks became flight capable and left the island.

CNRL reported 411 bird fatalities at or near the tailings facility through the duration of the incident, as well as coyotes and wolves that accessed the island, according to the report.

The company viewed the island as low-risk and used deterrents instead of removing the island, added the report.

In the ruling made by Tyler Callicot, the AER director of enforcement and orphaing, he stated that "CNRL did not take all reasonable steps to prevent wildlife from coming into contact with the process affected water and bitumen."

The contravention and the potential for adverse effects were classified as "major" in the report.

The total fine to CNRL was $278,000 after having been reduced by $102,000 by Callicot from the original $380,000 fine assessment.

The full decision report is available online.