Initial environmental work to prepare for site development can be complicated. It can include Phase I/II assessments, Record of Site Conditions, Environmental Compliance Approvals, and more. The challenge can often be maintaining environmental compliance in the ensuing years to avoid environmental violations.
Below, we look at environmental violations involving manufacturing operations and construction activity.
Water and Air Environmental Violations
Though idle since 2024, a paper mill recently settled past environmental violations.
AV Terrace Bay Paper Mill, in Thunder Bay, Ontario, was recently fined $525,000 for two violations under the Ontario Environmental Protection Act.
According to the Court Bulletin, the convictions are for:
- Failing to control the quality of discharged effluent to ensure that acute toxicity tests resulted in no more than a 50% mortality rate for the test organisms
- Failing to comply with an industry standard by discharging Total Reduced Sulphur compounds with concentrations greater than the prescribed limits more than two times in a six-month period
Water Violation
Under their Environmental Compliance Approval (in 2018), the mill was permitted to discharge its industrial effluent to Blackbird Creek, which then discharges to Lake Superior.
In May 2023, their effluent failed the acute lethality test, and 100% of the Rainbow Trout died during the test. This was reported to the Ministry of Environment Conservation and Parks (MECP) within seven days, and subsequent tests indicated no further violations.
Air Violation
The second violation was related to air quality. The Court Bulletin states that “Technical standards prohibit the discharge of Total Reduced Sulphur (TRS*) into the air where the discharge results in a concentration exceeding 27 parts per billion (ppb) over a 10-minute average period more than two times in any six-month period.” AV Terrace Bay breached this four times in May 2023. The company “immediately reported” and “implemented an immediate investigation” to determine the cause of the exceedances.
*TRS includes hydrogen sulphide, carbon disulphide, carbonyl sulphide, dimethyl sulphide, methyl mercaptan, and dimethyl disulphide,
Penalties Imposed
According to the Court Bulletin, AV Terrace Bay was convicted of two violations under the Environmental Protection Act, fined $525,000 plus a victim fine surcharge (VFS) of $131,250, and given 12 months to pay.
As stated above, although the mill did have exceedances, they reported this to the MECP in a timely manner as required by law.
Some construction activity may require environmental permits (Photo by Chelaxy Designs on Unsplash)
Construction-Related Environmental Violations
A common trigger for investigations by regulators is a complaint by a citizen. That was the case that led to a construction company being fined $85,000.
According to the Court Bulletin, Pomerleau, Inc. subcontracted to Ostim Ltd. to install an exterior insulating and finishing system (EIFS), which is similar to stucco. This was being placed on the exterior of a building. The process of applying multiple layers of the EIFS involves “rasping” to shave or trim the material.
In August 2021, following complaints from the public regarding foam particles, the MECP issued an Order requiring the company to “cease the discharge” of the foam particles and to prepare a plan to prevent discharges of particles from the site. The Order also required the company to notify the MECP at least one day in advance of any additional rasping activity.
In September 2021, the company performed additional rasping activity with the required controlled measures. The MECP was not notified.
A compliance officer visited the impacted neighbourhood and could see evidence of the foam on the properties and streets. An amended Order was issued again requiring at least one day’s advance notice before any rasping activity and photographic evidence that the work area was enclosed.
In October 2021, the MECP contacted the company regarding any rasping activity. In November 2021, the company notified the MECP that they completed rasping the week of October 11, 2021. They did not notify the MECP.
Penalties Imposed
According to the Court Bulletin, the penalties imposed included the following:
- On November 18, 2024, Ostim Ltd. was convicted of one violation under the Environmental Protection Act (EPA), fined $45,000 plus a VFS of $11,250 and given 180 days to pay.
- On March 24, 2025, Pomerleau Inc. was convicted of one violation under the EPA, fined $40,000 plus a VFS of $10,000, and given 90 days to pay.
Maintaining environmental compliance can be challenging. But the cost of non-compliance, especially if there appears to be a disregard for the environmental regulations, can harm a company’s reputation.
Environmental Assistance
If you need assistance with an environmental permit, we can help. Contact Christopher Paré, P.Geo, at 519-948-7300, Ext. 114 for more information.
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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