Enforcement of environmental laws can result in penalties and fines ranging from a few-thousand dollars up to seven figures or more. In 2020, Volkswagen paid a $196.5 million fine for the class action settlement in what became known as “dieselgate” or “emissionsgate.” This was on top of the agreement to provide benefits and buyback options to Canadian consumers of the non-compliant vehicles up to a maximum of nearly $2.4 billion
Regardless of the amount of the fine, enforcement can be aggravating for the companies on the receiving end of the enforcement. They not only have to address the fine and the underlying issue that led to the fine, but they may also have to address the public relations issues. For additional insights on environmental compliance, see our compliance tips page.
$1 Million Fine in Alberta
As reported by Environment and Climate Change Canada (ECCC), Peace River Pulp Ltd. (Mercer Peace River) was ordered to pay a $1 million fine after pleading guilty on September 4, 2024, to one count of violating the Fisheries Act.
The charge follows an investigation by ECCC enforcement officers that determined that on April 14, 2021, the Alberta company, Mercer Peace River “deposited or permitted the deposit of 30,868,000 litres of effluent (wastewater) that was acutely lethal (toxic) to fish from its pulp mill near the Town of Peace River, Alberta, into the Peace River.”
The Mercer Peace River wastewater treatment system has a spill pond designed to capture and store effluent resulting from spills or unusual operating conditions. Once in the spill pond, effluent is gradually reintroduced back into the treatment system at a controlled rate to minimize its overall negative effect.
However, Mercer Peace River “had not maintained sufficient capacity in the spill pond to capture the additional effluent. As a result, the spill pond did not function as designed.”
The fine will be directed to the Government of Canada’s Environmental Damages Fund.
Because of this conviction, the company’s name will be added to the Environmental Offenders Registry.
Storage Tank Violations in Québec
A company that specializes in aviation fuel distribution was fined $200,000 for environmental violations. On October 1, 2024, Avjet Holding Inc. (Québec), pleaded guilty to one count of violating the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations under the Canadian Environmental Protection Act, 1999.
ECCC enforcement officers launched an investigation after being informed of a petroleum product spill at the Natashquan Airport in Quebec. “The investigation proved that while delivering fuel, a quantity of approximately 4,900 litres of the product was spilled into the environment.”
ECCC stated that the cause of the release was “two valves left open by an Avjet Holding Inc. employee, as well as another defective valve in the storage system’s filling cabinet, were the cause of the release.”
According to ECCC, “The conviction is the result of a petroleum product spill that occurred between January 17 and 18, 2023. The fine will be directed to the Government of Canada’s Environmental Damages Fund to support projects that have a positive impact on Canada’s natural environment.”
As a result of this conviction, the company’s name will be added to the Environmental Offenders Registry.
Ontario Scrap Metal Company Fined
Among the enforcement actions was a scrap metal facility where crushed car bodies were being processed resulting in explosions (Image by Robert Davidsson from Pixabay).
American Iron & Metal (AIM) Company in Hamilton, Ontario was fined $85,000 by the Ontario Ministry of Environment, Conservation and Parks (MECP).
According to the MECP, in May 2020, the ministry issued an Order to AIM requiring the company to ensure that no prohibited materials were processed within the shredder unless all gases, fluids, and other substances that may cause an explosion had been removed.
However, between October 2020 and January 2021, several explosions occurred at the site. “AIM reported that crushed car bodies were being processed in the shredder at the time of the explosions and that the cause of the explosions was likely due to residual gas in gas tanks and/or concealed pressurized vessels.”
There were 34 complaints regarding noise and vibration from the explosions.
The ministry’s Environmental Investigations and Enforcement Branch investigated and laid charges which resulted in the convictions.
According to the MECP, “Following the incidents, AIM has improved its inspection program and related procedures to deter suppliers from including prohibited materials in their loads. The company has a detailed program in place to minimize the potential for prohibited materials from entering the shredder.”
Violation of the Federal Fisheries Act in Ontario
Finally, on September 17, 2024, “11204572 Canada Corporation” (the Company) pleaded guilty in the Provincial Court of Ontario, in Toronto, to one charge of “depositing a deleterious substance into water frequented by fish, in contravention of the Fisheries Act. The Company was fined $50,000.”
The incident dates back to December 28, 2020, when ECCC enforcement officers were notified that fuel was being released into the Taylor-Massey Creek from a property located on Crockford Boulevard, in Toronto.
The ECCC officers discovered that “approximately 2,000 litres of hydrocarbons were intentionally released from an underground storage tank into the adjacent Taylor-Massey Creek, during construction activities.”
ECCC stated that, “by depositing hydrocarbons in water frequented by fish, The Company contravened a prohibition set out in subsection 36(3) of the Fisheries Act.”
As a result of this conviction, The Company’s name will be added to the Environmental Offenders Registry.
Environmental Advice
Dragun Corporation has been assisting the regulated community with environmental compliance, assessment/remediation, and litigation support since 1988. If you need assistance with an environmental issue, including litigation support, contact Christopher Paré, P.Geo. at 519-948-7300, Ext. 114.
Dragun Corporation does not use artificial intelligence in drafting our blogs or any other material.
Alan Hahn drafted this blog. Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for 45 years. He has written hundreds of blogs and articles. His published work includes Michigan Lawyers Weekly, Detroiter, Michigan Forward, GreenStone Partners, Manure Manager Magazine, Progressive Dairy, and HazMat Magazine.
Jeffrey Bolin, M.S., reviewed this blog. Jeff is a partner and senior scientist at Dragun Corporation. He is a published author, frequent speaker, and expert witness. His expertise in environmental due diligence, PFAS, vapor intrusion, and site assessments has led to projects in the US, Canada, and overseas. See Jeff’s Bio.
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