The Alberta Energy Regulator (AER) has fined Edmonton company Cancen Oil Processors Inc. at total of $303 768.58 for contravening an environmental protection order related to a release from an oilfield disposal well.
The incident happened at Cancen Oil Processors Inc.'s site in New Sarepta, Alta., about 50 kilometres southeast of Edmonton.
Following an investigation, the AER determined that Cancen had been in continuous violation of the Environmental Protection and Enhancement Act (EPEA) since March 1, 2023. The company failed to take required remedial actions following a contaminant release and did not comply with the terms of an EPO issued under Section 113 of the Act. The regulator classified the company’s actions as a major contravention.
"Orders, such as Environmental Protection Orders, are a substantial tool in the AER’s regulatory scheme and its objective of environmentally responsible development and regulating the protection of the environment," the AER stated.
In the decision, Tammy Loiselle – director for emissions, compliance, support & safety and regulatory compliance at AER – noted that “there was a lack of due diligence” as the investigation revealed that Cancen was made aware of certain risks for leaving fluids in out of service tanks (April 13, 2022) and was issued a Notice of Noncompliance for not containing the spill (Aug. 5, 2022), an EPO (Feb. 15, 2023) to address the release including requiring a Remediation Action Plan (RAP), and a breach of order letter (March 9, 2023) for failure to submit and implement a RAP. Cancen was aware of the requirements to contain and remediate but did not take practical steps or pursue viable alternatives to comply or address the release.
“Cancen was aware of the requirements to contain and remediate but did not take practical steps or pursue viable alternatives to comply or address the release,” said Loiselle.
The AER’s investigation found that petroleum hydrocarbons, ethylene glycol, and monoethanolamine had entered a man-made water runoff pond at the facility. Additionally, 7,000 tonnes of contaminated soil required remediation.
Cancen’s failure to comply with the EPO increased the risk of contaminants spreading, potentially affecting groundwater. "An EPO is issued for the express purpose of preventing an adverse effect or further adverse effect," the AER noted. "By not complying with the EPO, the potential for an adverse effect only increases."
The employer also failed to meet its regulatory obligations regarding environmental safety and remediation. The AER determined that Cancen was aware of the contamination but did not act before the EPO deadline, nor did it request an extension to complete the required cleanup.
The AER imposed financial penalties exceeding $300,000, which included:
- A $105,000 fine for failing to comply with the EPO.
- Additional penalties for a history of non-compliance, including a 2021 administrative fine for violations at another waste management facility.
- Economic benefit penalties, as the company financially gained from avoiding remediation costs.
