Imperial Oil Faces Major Fine for Oil Spill Affecting First Nation Community

Imperial Oil Fined Over $1 Million for Sarnia Spill Impacting Aamjiwnaang First Nation

Imperial Oil has been fined over $1 million after pleading guilty to a charge under Ontario’s Environmental Protection Act. The case relates to a 2021 release of approximately 1,150 litres of slop oil at its Sarnia refinery.

According to documents published by the Government of Ontario, the spill contained a mixture of crude oil, water, and waste solids, along with various contaminants that may include hydrogen sulfide.

“The discharge of slop oil caused adverse effects to persons at two nearby businesses and residents of Aamjiwnaang First Nation,” states the court bulletin. “Individuals reported experiencing eye, nose, and throat irritation, as well as headaches and nausea.” Strong odors were also reported, which restricted movement and activity and raised health and safety concerns.

Imperial Oil pleaded guilty to the charge on September 16. The Ontario court imposed a $900,000 fine and a $225,000 victim impact surcharge, bringing the total penalty to $1.125 million.

The spill began in January 2021 after workers discovered a leak in a steam-tracing line, which is designed to keep pipelines warm in winter. The company classified the leak as a second-level priority, meaning it was deemed non-urgent and could wait for repairs until spring. Repairs were scheduled for March 2021.

However, before the repairs could take place, the escaping steam from the leak eroded a hole in the nearby slop oil line, resulting in a spill of approximately 1,150 liters of slop oil. Subsequent air monitoring did not detect hydrogen sulfide, volatile organic compounds, or gas vapors.

Since the incident, Imperial Oil has updated its steam leak repair criteria to include community impact as a priority factor when assessing issues at the refinery.

Earlier this year, the Alberta Energy Regulator fined Imperial Oil $50,000 following an investigation into a 2022 incident in which wastewater containing oilsands tailings seeped outside its lease boundary. The Athabasca Chipewyan First Nation raised concerns over Imperial’s actions and transparency regarding that violation.

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