Alberta Energy Regulator still investigating and suggests further action could be taken
The Alberta Energy Regulator (AER) is drawing sharp criticism after fining Imperial Oil $50,000 for a 263-day toxic tailings spill at the Kearl oil sands site in northern Alberta. Advocacy groups, including Environmental Defence, argue the penalty fails to reflect the gravity of the environmental damage and the regulatory lapses involved.
“This fine amounts to a 95% discount on what could have been imposed,” says Environmental Defence in a press release. It notes that Imperial Oil, which reported quarterly profits of $2.9 billion in 2023, is being charged just 0.004% of those earnings. “This is a slap on the wrist, sending the message that Alberta protects polluters over people and the environment.”
Two separate incidents have led to the release of more than 45 million litres of wastewater containing harmful levels of arsenic, iron, and other toxins. The first began in May 2022 when industrial wastewater began seeping from an external tailings area in four locations. The second incident saw the uncontrolled release of industrial wastewater from a storage pond in February 2023. The AER says the $50,000 administrative penalty is related to the first incident which began in May 2022. The AER is still investigating the second incident.
According to Environmental Defence, local Indigenous communities were not informed about the incidents until February 2023, after they raised concerns about contaminated water and wildlife. “The penalty is an insult to affected communities,” states the release, adding that it undermines public trust in the province's ability to manage environmental risks.
Penalty framework and possible further action
In a statement to Canadian Occupational Safety, the AER defends its approach, stating the penalty aligns with the guidelines under Alberta's Administrative Penalty Regulation. “A $50,000 administrative penalty represents the maximum base penalty table amount allowed under the regulation and includes a representative daily amount,” the AER explains.
Beyond the fine, the AER has imposed two key projects on Imperial Oil to address the spill's impacts, although specific details on these conditions are limited. The regulator insists that it is far from finished investigating the incident. “We are still diligently moving ahead with other portions of the investigation of potential contraventions at the Kearl site,” the AER says. The administrative penalty currently addresses two violations under section 227(e) of the Environmental Protection and Enhancement Act.
Call for structural changes
Environmental Defence continues to demand stricter penalties and systemic reform, accusing the AER of failing to enforce existing regulations adequately. “The AER must address its failure and immediately impose the full penalty Imperial Oil owes,” says Aliénor Rougeot, senior program manager at Environmental Defence Canada. “Anything less than that would signal to oil companies that breaking Alberta’s environmental laws comes with little consequence.”
The broader fallout of the spill includes heightened concerns over the effectiveness of Alberta’s regulatory frameworks, particularly when it comes to holding large corporations accountable.
For more details, the AER’s penalty rationale is available in its decision document, starting on page 22 of Appendix A.
