Environmental liability is a growing concern for businesses of all sizes across Canada. Recently, there has been a focus on the liability associated with per- and polyfluoroalkyl substances (PFAS) as well as the liability related to sustainability claims, the plastics registry, and managing excess soils.
Concerning PFAS, according to the Canadian Bar Association, “PFAS lawsuits have been proliferating in Canada in recent years. Private firms are pursuing class actions in Ontario and British Columbia against major chemical manufacturers on behalf of individuals who allege their wells were contaminated by PFAS compounds.”
The growing list of environmental regulations and the associated liabilities puts increased pressure on environmental managers and senior management.
Environmental Enforcement
As we continue to monitor evolving federal and provincial regulations, we also continue to monitor enforcement activity. Below we share some recent enforcement activity.
$300,000 Fine
The Alberta Energy Regulator (AER) has fined an Edmonton company (Cancen Oil Processors Inc.) $303,769 for contravening an environmental protection order related to a release from an oilfield disposal well.
From the Administrative Penalty Director’s Decision, “On or about March 1, 2023, and on a continuous basis, in the Province of Alberta, Cancen Oil Processors Inc. has been in contravention of an Environmental Protection Order, thereby contravening section 227(i) of the Environmental Protection and Enhancement Act (EPEA).”
Cancen Oil Processors did not dispute the investigation findings and has told the AER that, starting in May, it plans to remediate through removing contaminated soil (CBC).
Environmental liability is a growing concern for businesses of all sizes across Canada (Photo by Scott Webb on Unsplash).
$50,000 Fine For Excess Soil Management
York1 Tilliam Transfer Ltd. and The Recycling Depot GP Inc. were convicted on December 13, 2024, for violating Ontario’s Environmental Protection Act. York1 operates a waste disposal site used to transfer and process solid and non-hazardous waste, limited to excess soil.
According to the Court Bulletin, an Environmental Compliance Approval or ECA (Ontario Ministry of Environment) was issued to The Recycling Depot.
The ECA requires the defendants to create an annual report that includes a summary of the amount of excess soil received and transferred from the site. The ECA also requires the final disposal destination of the soil and annual reports which must be maintained on-site for at least seven years.
The reports listed daily inbound and outbound shipments in 2021. However, according to the Bulletin, “the report failed to record 458 inbound soil shipments to the site from another property in the City of Toronto that records from the source site confirmed were received on 10 days in 2021. As a result, the 2021 annual report was incomplete.”
For more information about excess soils and the 2024 amendments, see our October 31, 2024 blog.
Moving Your Company Requires New ECA
Finally, a metal coating company was convicted for “failing to comply with a ministry provincial officer’s order by failing to submit a completed Environmental Compliance Approval (ECA) application by the deadline.”
The company, T&S Platers Inc. previously operated at a different location in Barrie, Ontario under an ECA. In 2018, the company moved to a different location so the ECA was no longer valid.
Following an April 2020 inspection by the Ontario Ministry of Environment, the company was ordered to submit a completed application for an ECA by October 2020. The company failed to do so.
The following penalties were imposed on the company.
- They were issued a suspended sentence and Probation Order under Section 72 of the Provincial Offences Act.
- The Probation Order requires the defendant to not commit the same or any related offence within 12 months of the conviction.
For more information regarding environmental compliance, see our Environmental Compliance Tips and Insights.
Environmental Assistance
If you have questions or need assistance with an environmental issue, contact our office or contact Christopher Paré, P.Geo., directly at 519-948-7300, Ext. 114.
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 more than 45 years. He has written hundreds of blogs and articles. His published work includes HazMat Magazine, BizX Magazine, Michigan Lawyers Weekly, GreenStone Partners, Manure Manager Magazine, and Progressive Dairy.
Christopher Paré, P.Geo, reviewed this blog. Chris is a senior geoscientist and manager of Dragun’s Windsor, Ontario, office. Chris has more than 30 years of experience on projects ranging from environmental site assessments (Phase One/Two ESA), excess soils, remedial investigations, soil and groundwater remediation, Permits to Take Water, Records of Site Conditions, vapour intrusion, and site decommissioning. Chris is a frequent speaker, author, and expert witness. See Chris’ bio. Follow Dragun Corporation on LinkedIn, X, or Facebook.
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