Imperial Oil Is In The Penalty Box – Again

The Alberta Energy Regulator has charged Imperial Oil with nine violations after a 5.3 million-litre toxic wastewater spill at the Kearl Oil Sands plant.
An aerial views of an Imperial Oil tailings pond at the Kearl Lake Facility
Nicholas Vardy | Athabasca Chipewyan First Nation

Imperial Oil Resources Ltd. failed to immediately report a major spill of toxic wastewater and didn’t take appropriate measures to control the spill, according to the Alberta Energy Regulator (AER.)

Two years after an estimated 5.3 million litres of liquid waste overflowed a pond at Imperial’s Kearl Oil Sands Processing Plant, the AER has laid nine charges against the company. 

Alberta Wilderness Association conservationist Phillip Meintzer called the charges good news.  

“The (Alberta Energy Regulator) has a history of, say, letting industry and corporations off easy, or even off entirely,” Meintzer told Canadian Press. “This is a good news story in a way as it relates to the (regulator). It’s nice to see our regulator actually laying charges.”

Six of the charges fall under the Environmental Protection and Enhancement Act and three under the Public Lands Act. Now, it’s up to the courts to decide what penalty the company will face.

Internal Report Found Flaws

Imperial conducted an internal investigation of the spill that revealed numerous operational flaws. According to the report on the company’s website, an automated pump system meant to prevent overflows had stopped working before the accident.

Workers tasked with operating the system manually couldn’t properly detect levels because “the pond being covered with snow and ice, snow build-up around the spillway, and low lighting at night made it difficult to verify levels,” the report reads.

The result was a breach of the mine’s tailings pond north of Fort McMurray.  

Imperial is Canada’s largest petroleum producer, but it is majority owned by Texas-based ExxonMobil. In 2024, the company recorded a gross profit of $8.73 billion.   

This isn’t the first time Imperial Oil has been in hot water over its environmental record.

Imperial Oil Keeping the AER Busy

Imperial’s operations in northern Alberta are under scrutiny. Last year, the AER fined the company $50,000 after toxic tailings seeped from the Kearl operation. The Fort Chipewyan First Nation is now suing the energy regulator for not keeping it informed of that spill.

Since June 2015, the AER has investigated Imperial Oil 14 times for violations and compliance issues. The investigations resulted in six cancelled reclamation certificates and five non-compliance notices regarding pipeline maintenance. 

The company also got slapped with an administrative penalty, an administrative sanction for releasing industrial wastewater into the surrounding environment, and an order to comply.     

Imperial will face the latest charges on February 26 in the Alberta Court of Justice in Fort McMurray.

An aerial photo of a tailings pond at Imperial Oil's Kearl Lake oilsands operation
A tailings pond at Imperial Oil’s Kearl Lake oilsands operation | Nicholas Vardy | Athabasca Chipewyan First Nation

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