March 27, 2018
Prince Albert Mayor Greg Dionne says the Husky Energy Inc. oil pipeline leak in 2016 on the North Saskatchewan River has made him more aware of the danger from the many pipelines that criss-cross his province, adding that he hopes provincial charges announced on Monday act as a deterrent for other pipeline firms.
“Now that I know there are more pipelines than I ever assumed there were, and crossing under waterways, that concerns me even more because that tells me it could happen again,” he told Canadian Press.
Calgary-based Husky is to appear in Lloydminster, Sask., provincial court this Thursday to face one charge of unlawfully permitting the discharge of a substance that caused an adverse environmental effect, in violation of the Environmental Management and Protection Act, the Saskatchewan government told Canadian Press.
The July 2016 leak interrupted the city’s water supply for several weeks.
In a prepared statement, it said Husky will also face federal environmental charges, with those details to be announced later this week.
The government said the charges result from the spill of 225,000 litres of diluted heavy oil from a Husky pipeline near Maidstone in west-central Saskatchewan.
About 40 per cent of the leaked crude made it into the river, causing an oil plume that flowed hundreds of kilometres downstream and forced the cities of North Battleford, Prince Albert and Melfort to shut off their water intakes for almost two months.
Dionne praised Husky for its response, pointing out the company “didn’t hesitate” in advancing $3 million early on to cover the city’s bills as it was forced to pipe water 25 kilometres from the South Saskatchewan River and access other sources to supply water for the city.
Husky was permitted to restart the pipeline in October after repairs were tested and inspected. The company has said the pipeline buckled and leaked because of ground movement, adding the cleanup cost was more than $107 million.
“Fundamentally, we accept full responsibility for the incident, as we have from the beginning,” said Husky spokesman Mel Duvall in an email to Canadian Press on Monday.
“We have worked hard every day since to make things right and we have learned from it.”
He said Husky will review both sets of charges before deciding how it will plead. The charges have not been proven in court.
The provincial charge carries a maximum $1-million fine.
Patrick DeRochie, climate and energy program manager for the group Environmental Defence told Canadian Press the “meagre” maximum fine is typical of regulators allowing companies to avoid paying the true costs of the fossil fuel industry.
“A million-dollar fine is nothing but a slap on the wrist for a massive oil company whose negligence cut off the drinking water of thousands of Saskatchewan residents for months.”