Alberta Court Orders Company to pay $3.5 million for Mine Spill

Prairie Mines & Royalty ULC (formerly known as Coal Valley Resources Inc.) pleaded guilty in Alberta Provincial Court on June 9, 2017, to two counts of violating the Canadian Fisheries Act.  The Honourable Judge C.D. Gardner sentenced the company to pay monetary penalties totalling $3,500,000.

Of the total fine, $1,150,000 of this sentence will be put into a trust to be managed by the University of Alberta to create the Alberta East Slopes Fish Habitat and Native Fish Recovery Research Fund. The remainder of the monies, $2,150,000, will be directed to the Environmental Damages Fund.

On October 31, 2013, a dike that was holding back a large volume of waste water at the Obed Mountain Mine failed, resulting in more than 670 million litres of contaminated water and sediment (made up of coal, clay and sand) spilling into the Apetowun Creek and Plante Creek and additionally impacting the Athabasca River.

The case was a multi-year joint investigation by Fisheries and Oceans Canada, Environment and Climate Change Canada, and the Province of Alberta.

Prairie Mines & Royalty ULC pleaded guilty to:

one count of carrying on a work, undertaking or activity that resulted in in the harmful alteration or disruption, or the destruction, of fish habitat in contravention of s.35(1) of the Fisheries Act; and,
one count of depositing or permitting the deposit of a deleterious substance of any type in water frequented by fish in contravention of s.36(3) of the Fisheries Act.

In addition to the penalties under the Fisheries Act, Prairie Mines & Royalty ULC has pleaded guilty to one count under Alberta’s Environmental Protection and Enhancement Act. For further information on that charge, see the Alberta Energy Regulator’s news release.

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