Canada: Courts Struggle to Mix Bankruptcy and Environmental Law – SCC To Hear Redwater Appeal

Article by John GeorgakopoulosGiselle Davidian and Serin Remedios

Willms & Shier Environmental Lawyers LLP

The Supreme Court of Canada (SCC) granted leave to hear the appeal of Orphan Well Association v Grant Thornton Limited.1 The SCC will reconsider whether trustees and receivers in bankruptcy must remediate wells in priority to the claims of secured creditors.

In April 2017, the Alberta Court of Appeal released its decision in Redwater.2 The Court found that the Government of Alberta’s environmental orders for oil well remediation did not have priority over secured creditors in bankruptcy proceedings.

In upholding the lower court’s decision, set out in our previous update, the Court of Appeal added to the “untidy intersection” between bankruptcy proceedings and provincial environmental law. Both Courts concluded that receivers and trustees were permitted to renounce an insolvent debtor’s interest in its licensed assets while selling valuable licensed assets to maximize recovery for secured creditors.

The decision, as it stands, allows receivers and trustees in bankruptcy to disclaim unprofitable assets and not be required to fulfill certain environmental obligations associated with those disclaimed assets.

Recap

The case revolves around the assets of a junior, insolvent oil and gas producer, Redwater Energy Corporation (Redwater).

Orphan Oil Well

When Redwater’s primary secured creditor began enforcement proceedings under the Bankruptcy and Insolvency Act (BIA), Grant Thornton Limited (GTL) was appointed as receiver and trustee.3 Several of Redwater’s oil wells had costs of remediation exceeding the value of the wells. GTL took control of only 20 of 127 Redwater’s assets and disclaimed the oil wells that had onerous environmental abandonment costs.

Alberta oil and gas legislation requires licensees, including trustees, to comply with “end-of-life” rules for oil wells. Where no one is financially capable of remediating and abandoning a well, the well is designated an “orphan well” under Alberta’s Oil and Gas Conservation Act (OGCA).4/em>

The Alberta Energy Regulator (AER) ordered GTL to remediate the disclaimed oil wells before distributing funds to creditors. When GTL indicated that it did not intend to remediate the wells, AER and the Orphan Well Association (OWA) brought applications asking the court to void GTL’s disclaimer of the non-producing wells and order GTL to comply with AER’s orders. AER argued that Redwater’s insolvency and bankruptcy did not affect Redwater’s environmental obligations and that GTL was legally required to discharge those obligations before paying Redwater’s creditors.

GTL brought a cross-application challenging the constitutionality of AER’s stance on GTL’s environmental obligations and seeking approval of the sale of Redwater’s valuable wells.

At issue was whether AER’s orders were provable claims in bankruptcy and therefore subject to bankruptcy proceedings. If AER’s orders were subject to bankruptcy proceedings, other creditor’s claims would take priority. The practical outcome being that the corporation would likely have no means of satisfying its environmental obligations after settling its obligations to other creditors. The cost of remediating the orphan wells would then fall on the Government of Alberta.

As we previously reported, Alberta Court of Queen’s Bench concluded that the applicable sections of the OGCA and Pipeline Act (PA) frustrate the federal purpose of the BIA of managing the winding up of insolvent corporations and settling the priority of claims against them. Based on the doctrine of paramountcy, the OGCA and PA were inoperable to the extent that they conflicted with section 14.06 of the BIA. This section of the BIA exempts a receiver or trustee from personal liability, allowing a trustee and receiver to disclaim assets, and prescribes the priority of environmental remediation costs.

OWRA and AER appealed the decision.

Court of Appeal Decision

The Court of Appeal upheld the lower court decision. The key issue on appeal was the priority and treatment of environmental claims in bankruptcy, and whether environmental claims were provable claims under section 14.06 of the BIA.

Priority and Treatment of Environmental Claims in Bankruptcy

The Court found that the BIA was amended in 1997 to specifically address environmental claims. The BIA now incorporates environmental claims into the general bankruptcy process, rather than exempting them. Following the test set out in Newfoundland and Labrador v AbitibiBowater Inc., the Alberta Court of Appeal found that AER’s orders were subject to bankruptcy proceedings.5 By refusing to permit the transfer of Redwater’s valuable assets unless funds were set aside for remediation, AER reduced the environmental obligations to “sufficiently certain” monetary claims. Accordingly, AER cannot indirectly interfere with the value of assets in a bankruptcy by placing financial preconditions on the transfer of AER licences.

Constitutional Law Issue

The Court of Appeal held that there was an operational conflict between federal and provincial regimes. The Court found that the provincial regulatory scheme frustrated the purposes of the BIA, which include determining the priority of claims against insolvent corporations. The practical outcome being that GTL did not have to comply with AER’s remediation obligations prior to settling claims of secured creditors.

Nortel and Northstar

The dissenting opinion briefly considered the two leading cases in Ontario on environmental claims in bankruptcy and insolvency: Nortel Networks Corporation (Re) and Northstar Aerospace Inc. (Re).6 In Nortel, the Court found that some of the Ministry of the Environment’s (MOE, as it then was) orders had priority over creditor claims, but in Northstar, the Court found that the MOE’s orders did not have priority.

Implications

The practical implications of Redwater may be far reaching not only for the worlds of bankruptcy & insolvency and oil & gas, but also for the world of director and officer liability.

Will we see more Alberta provincial environmental orders aimed at former directors and officers? In Northstar, after the Court found the MOE’s orders did not have super priority in insolvency proceedings, the MOE issued a remediation order personally against the former directors and officers.7

We will look to the SCC to provide clarity on this important, albeit untidy, area of law.

Footnotes

1 2017 ABCA 124 [Redwater].

2 Ibid.

3 RSC 1985, c B-3 [BIA].

4 Redwater at para 21; Oil and Gas Conservation Act RSA 2000, c O-6, s 70 [OGCA].

5 2012 SCC 67.

6 Nortel Networks Corporation (Re), 2013 ONCA 599 [Nortel]; Northstar Aerospace Inc. (Re), 2013 ONCA 600 [Northstar].

7 Northstar Aerospace, Inc. (Re), 2012 ONSC 4423. Subsequently, on November 14, 2012, the MOE issued a Director’s Order against the former directors and officers personally.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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About the authors

John Georgakopoulos resolves complex environmental legal issues for clients, uniquely drawing on his technical knowledge as a former senior environmental scientist with the Ontario Ministry of the Environment and Climate Change. John is called to the bars of Ontario and Alberta.

Giselle Davidian is an associate lawyer practicing in the areas of environmental law, environmental litigation, energy and natural resource law and Aboriginal law.  Giselle draws upon her technical knowledge as a former environmental scientist at a consulting engineering firm to help clients meet their goals.  Giselle is fluent in French and Armenian and has a working knowledge of Italian.  Giselle is called to the bar of Ontario.

Serin Remedios is an associate lawyer practicing environmental litigation as well as environmental, Aboriginal, northern and energy law.  Serin’s past experience in environmental science helps her understand clients’ problems and assist them in meeting their goals.  Serin is called to the bar in Ontario.

This article was first published in the Willms & Shier Environmental Lawyers LLP website.

Innovations in Pipeline Design: Leak-proof technology

By Dema Mamon, M.Sc.Pl, BES and John Nicholson, M.Sc., P.Eng.

In Canada, getting approval to construct an oil pipeline has become increasingly difficult.  Every oil pipeline incident that involves a leak and subsequent clean-up is widely covered in the media,  providing fuel for pipeline opponents that call an end to the construction of new pipelines.

Abacus Data Inc., an Ottawa-based research firm, has been tracking public opinion on the construction of new pipeline capacity and has found some interesting trends.  Since 2014, polling has shown that the negative view of building new oil pipelines has remained steady at 21 to 22% range.  However, there was a drop in the positive attitude amongst Canadians toward building new pipelines – from 58% in 2014 to 44% in 2017.  Over that three year span, a good proportion of Canadians who once viewed building new pipeline capacity with a positive attitude have shifted to a neutral view.  The neutral view on oil pipelines have grown from 20% in 2014 to 36% in 2017.

There can be many theories to explain the three year shift in public opinion on new oil pipelines.  One plausible theory is that oil spills from pipelines typically make headline news, thus leaving an impression in the minds of Canadians the perhaps pipelines are not as safe as the industry states.  Oil leaks from pipelines damage the environment, are costly to clean-up, and fuel public opinion that pipelines are not safe.

One way to eliminate the perception that building new oil pipelines is bad for the environment and shift public opinion in favour of such projects is to build pipelines that don’t leak.  However, is it even possible to build leak-proof pipelines?

Are Double-Walled Pipelines the Answer?

One logical idea for building leak-proof pipelines is for them to be double-walled.  The outer wall would serve as protection from external damage.  The technology does exist to construct double-walled pipelines and they are used in certain circumstances such as when there is a large temperature difference between the liquid in the pipe and the surrounding environment.

Double-walled pipelines are not considered the cure-all by some in the industry.  Those resistant to the use of double-walled pipelines note that in some instances, it may be more cost effective to protect pipelines from the potential of external damage by burying them or placing slabs over them in higher risk areas.  Furthermore, it can be more difficult to monitor a double-walled pipeline and an outer pipe interferes with the maintenance of the inner pipe.

At the University of Calgary, researchers believe their two-walled pipeline design and monitoring system is the solution to preventing spills.  Although double-walled pipelines have been around since the 1980’s, Thiago Valentin de Oliveira, an electrical and computer-engineering master’s student, and Martin Mintchev, an engineering professor, say that their design is superior.

The U of Calgary researchers designed and constructed their prototype to consist of a typical steel inner layer with either a steel or plastic outer layer.  There is an air gap between inner and outer pipeline contains the oil that leaks from the inner pipeline leak.  The real innovation developed by the U of Calgary is the segmentation of the inter-pipe space and the inclusion of a linear wireless network linking the segments.  With the segmentation, a leak of oil from the inner pipe enters the air gap between the two pipes and is contained in a section of pipe.  Wireless pressure sensors between the two walled layers detect the pressure build up and send an alert to the pipeline control staff.

 

If commercially implemented, the U of Calgary system would allow pipeline operators with the means of quickly shutting down the pipeline when a leak was detected into the outer pipeline and crews could be dispatched to make repairs.  The oil that leaked from the inner pipe would be contained in the air gap between the two pipes and be confined to one section of the pipeline.

The U of Calgary researchers estimate that their design would result in an additional 25% in the capital cost of building pipelines.  They believe this cost could be reduced if the outer pipeline material was composite materials or plastic.

Is Advanced Monitoring the Solution?

Also in Alberta, a Calgary-based firm, HiFi Engineering, recently announced that it has developed an innovative pipeline leak detection system.  Dubbed High-Fidelity Dynamic Sensing (HDS™), the monitoring system can spot the exact location of a leak in a pipeline within seconds of it occurring.  The system continuously monitors temperature, sonic and ultrasonic acoustics, and vibration and strain.  Any anomaly in the measurements results in an alert being sent to the pipeline company control room.

Hifi Engineering’s High Fidelity Dynamic Sensing (HDS) technology is being called the ‘ears of pipeline monitoring.’

The system works utilizing fiber optic cables that run the length of the pipeline.  A laser beam is sent down the length of the optic cable and sends signals back that provide a multitude of information to the pipeline control room.

TransCanada Pipelines Corporation has already installed the HiFi HDS™ monitoring system in sections of the Keystone XL oil pipeline that runs from Canada to the U.S.  Also, Enbridge employs the technology in its new northern Alberta pipeline.

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About the Authors

Dema is a graduate of York University’s Bachelor in Environmental Studies program (2008) and the University of Toronto’s Masters of Science in Planning Programme (2010). She is currently pursuing her Canada Green Building Council’s Leadership in Energy and Environmental Design’s Green Associate certification. Her research interests include environmental conservation, green infrastructure, and sustainability. She can be reached at dema.mamon@gmail.com.

John Nicholson is the editor of Hazmat Management Magazine.  He has over 25 years of experience in the environmental and cleantech sectors.  He is a registered professional engineer in the Province of Ontario and has a M.Sc. in environmental engineering.  His professional experience includes time at a large engineering consulting firm, a major Canadian law firm, and the Ontario Ministry of the Environment and Climate Change.

Groundwater and PFAs: State of Knowledge and Practice

National Ground Water Association (NGWA) Press, Westerville, OH. ISBN: 1-56034-037-1, 114 pp, 2017

Perfluoroalkyl and polyfluoroalkyl substances (PFASs) are a group of chemicals that are emerging contaminants of concern due to their persistence in the environment, bioaccumulative potential, and toxicity.

Chemical structure of perfluorooctanoic acid

PFASs have previously been used in a range of industrial processes, consumer products (such as 3M’s Scotchgard fabric and upholstery protector), aviation hydraulic fluid and fire-fighting foam. The two main PFASs are perfluorooctane sulfonate (PFOS) and perfluorooctanoic acid (PFOA). The unique properties of PFASs that make them useful in products and industrial processes also mean that they are persistent in the environment and highly mobile. They are therefore challenging to manage and remediate once released into the environment. They are potentially bioaccumulative and potential health effects may include developmental, reproductive and systemic effects and possibly cancer. PFOS has been listed as a persistent organic pollutant (POP) in Annex B of the Stockholm Convention since 2010. The use of PFOS in products has been phased out in Australia since the early 2000’s.

Beginning in October 2016, 37 scientists and engineers voluntarily collaborated through the National Ground Water Association to develop information on per- and polyfluoroalkyl substances (PFASs) for the broader groundwater community. Using a consensus-driven process that included a public comment period, their efforts were completed toward the end of 2017.  NGWA published this PFAS document to assist members and other groundwater professionals who may be tasked with investigating the transport pathways and extent of PFASs in groundwater and surface water, assessing potential risks to receptors, or designing and constructing engineering controls to manage subsurface PFAS contamination.  The main purpose of this document is to summarize the current state of knowledge and practice regarding PFAS fate, transport, remediation, and treatment, recognizing that knowledge in this field continues to advance. This document also summarizes current technologies, methods, and field procedures being used to characterize sites and test remediation and treatment technologies. Temporarily available at http://www.ngwa.org/Professional-Resources/Pages/Groundwater-and-PFAS.aspx

PFAs can be used in fire fighting foams

 

Canadian Brownfield Award Winners

Sixteen projects, representing municipalities from across Canada, were named as finalists for six main categories at the Brownie Awards sponsored by The Canadian Brownfields Network (CBN) and Actual Media Inc.  The Brownie Awards recognize the rehabilitation efforts of brownfield sites in Canada, which are former industrial sites that are vacant or underused.

The six Brownie Awards categories for which nominations are accepted are: REPROGRAM, REMEDIATE, REINVEST, REBUILD, RENEW and REACH OUT.  There are three other awards that acknowledge the best small-scale project, best large-scale project, and best overall project for 2017; all projects are eligible for these three awards.  In addition, we present the “Brownfielder” of the Year.

The 2017 Brownie Award winners were announced during a gala dinner at the Delta Hotels Toronto on Wednesday, November 22nd, 2017.

The winners (in bold) and finalists for the 2017 Brownie Award Finalists are:

Category 1:  REPROGRAM – Legislation, Policy and Program Initiatives

  • Contaminated Sites Approved Professionals Society, British Columbia
  • Excess Soils Bylaw Tool, Ontario
  • Toronto Portlands Due Diligence, Ontario

Category 2:  REMEDIATE – Sustainable Remediation and Technological Innovation

  • New Calumet Mine, Ile-du-Grand-Calumet, Québec
  • BC Hydro Rock Bay Project, Victoria, British Columbia
  • Triovest Block M, Hamilton, Ontario

Category 3:  REINVEST – Financing, Risk Management and Partnerships

  • Port Credit West, Mississauga, Ontario
  • SunMine, Kimberley, British Columbia

Category 4:  REBUILD – Redevelopment at the Local, Site Scale

  • New Eva’s Phoenix, Toronto, Ontario
  • Broadview Hotel, Toronto, Ontario

Category 5:  RENEW – Redevelopment at the Community Scale

  • 4th Avenue Flyover, Calgary, Alberta
  • The askiy project, Saskatoon, Saskatchewan
  • East Bayfront/Bayside Development, Toronto, Ontario
  • East Village Junction, Calgary, Alberta

Category 6:  REACH OUT – Communication, Marketing and Public Engagement

  • Inspiration Port Credit, Mississauga, Ontario
  • North Pacific Cannery Conservation Master Plan, Municipality of Port Edward, British Columbia

Category 7:  Brownfielder of the Year

  • Lisa Fairweather, Alberta Environment and Parks, Edmonton, Alberta

Category 8:  Best Small Project:  the askiy project, Saskatoon, Saskatchewan

Category 9:  Best Large Project:  SunMine, Kimberley, British Columbia

Category 10:  Best Overall Project:  Toronto Portlands Due Diligence

The City of Mississauga received a 2017 Brownie Award for Inspiration Port Credit for Communication, Marketing and Public Engagement.

With Mississauga having one of the most significant brownfield sites on the north shore of Lake Ontario, it has been the focus of several community engagements. Located at 70 Mississauga Rd. S., the brownfield site is 72 acres (29 hectares) and 600 metres of Lake Ontario shoreline that neighbours the City’s historic urban waterfront village of Port Credit.

“It is a great honour for the City of Mississauga to receive this national award for our achievement in planning for and contributing to the growth of healthy communities and our remarkable waterfront,” said Mayor Bonnie Crombie. “Congratulations to the team for their hard work and dedication while ensuring the needs and interests of the community are considered.”

The City-led community engagements explored future possibilities for the site with a Master Planning Framework that will help guide redevelopment. Working with a consultant team, the City involved residents and stakeholders in a variety of interactive sessions.

“The Brownie Awards recognize the best in brownfield site restoration projects in Canada,” added Ed Sajecki, Commissioner, Planning and Building. “We are excited to receive this award and be recognized by industry experts for our communication and engagement efforts on this waterfront project. The result is a vision of the site’s future as a model of sustainability.”

Some of the Award Winners at the 2017 Brownie Awards Gala

Guidance on Characterization and Remediation of Fractured Rock

The U.S. Interstate Technology and Regulatory Council (ITRC) recently released its newest guidance document, Characterization and Remediation of Fractured Rock.  The guidance addresses significant advances in skills, tools, and lessons-learned in understanding contaminant flow and transport in fractured rock environments.  If the unique characteristics of fractured rock sites are understood, then modern tools and approaches can be applied to successfully set and meet characterization and remediation goals at these sites.

Contaminated fractured rock sites have often been considered too complex to be remediated, so site managers often default to simply containing the contamination. This guidance provides a high-level introduction to the unique puzzle faced when investigating and remediating fractured rock sites. With the new strategies and technologies presented here, fractured bedrock challenges that may have prevented site remediation in the past are now surmountable.

The guidance begins with a general discussion of fractured rock characteristics and a comparison of fractured rock and porous media CSMs. The guidance further introduces the parameters necessary for developing a fractured rock CSM and stresses the need for an experienced multidisciplinary team. The 21-Compartment Model is also introduced. This model is an adaptation of the 14-Compartment Model (Sale 2011) for unconsolidated materials. This model helps its users to visualize and understand contaminant storage, flux, and flow pathways in fractured rock.

Understanding contaminant fate and transport in fractured rock allows site managers to develop a robust CSM that can guide remediation. Specific geology and lithology and structure control the unique mechanics of fluid flow in fractured rock. In addition to these physical properties, chemical properties affect fate and transport and are equally important in developing the CSM.

This guidance details specific steps in solving the puzzle of fractured rock contaminant fate and transport, including:

  • reviewing and refining the CSM
  • defining the characterization problem
  • identifying significant data gaps
  • defining data collection objectives
  • identifying potential tools for data collection
  • developing and implementing the work plan
  • managing, interpreting, and presenting the data

A downloadable and searchable Tools Selection Worksheet is provided , which was initially used in ISC-1 (ITRC 2015b). The Tools Selection Worksheet allows users to screen for tools to address specific data needs and collect qualitative, semiquantitative or quantitative data as needed. The Tools Selection Worksheet links to detailed descriptions of all the tools and to references for further information. The guidance describes how data can be managed, interpreted, and displayed. Table 5-4 presents valuable lessons learned from real-world fractured rock characterization and remediation projects.

As a CSM nears completion, the guidance offers direction for developing remedial objectives and strategies. A table shows how to assess the different remedial strategies that may address mass stored in the compartments described in the 21-Compartment Model.

Strategies for monitoring contamination for compliance, system operation, and performance are also provided. The guidance explains how to design a monitoring well network that will provide the data needed to understand site conditions, remedy performance, and compliance.

When applied properly, mathematical models are powerful tools for understanding contaminant flow. Chapter 8 describes various model types, proper application, data needs, calibration, sensitivity, and limitations.

Finally, a discussion on stakeholder and regulatory considerations are presented, followed by a collection of case studies that demonstrate practical application of the concepts presented throughout the guidance.

Click HERE to access the document.

U.S. Federal Brownfield Legislation: U.S. House of Representatives Passes Amendments

By Walter Wright, Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.

The U.S. House of Representatives (“House”) on November 30th passed amendments that would address the federal Brownfield program.

H.R. 3017 is titled the “Brownfields Enhancement, Economic Redevelopment, and Reauthorization Act of 2017” (“H.R. 3017”).

H.R. 3017 amends the Comprehensive Environmental Response, Compensation, and Liability Act and reauthorizes the United States Environmental Protection Agency’s (“EPA”)Brownfield Program.  The legislation appears to have bipartisan support.

Residential, commercial, agricultural and industrial properties are sometimes difficult to sell, redevelop, and/or finance because of perceived or real environmental contamination issues. Properties or facilities subject to such impediments are typically called “Brownfields.”

The EPA has defined a “Brownfield” as “abandoned, idled, or under-used industrial or commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contamination.” Besides EPA, many states have Brownfield programs whose purpose is to eliminate unnecessary barriers of the redevelopment of commercial or industrial properties which may have environmental concerns. Arkansas has had such a program for several years.

H.R. 3017 makes several changes to the federal Brownfield related statutory provisions, which include:

  • Clarifies the liability of states and local units of government that take title to property involuntarily by virtue of their function as a sovereign
  • Clarifies when sites contaminated by petroleum may be considered a Brownfield site and when a leaseholder may qualify for certain liability protections
  • Expands eligibility for nonprofit organizations and for eligible entities that took title to a Brownfield site prior to January 11, 2001
  • Increases the limit for remediation grants under the Brownfields Program, establishes multipurpose grants and allows recovery of a limited administrative cost
  • Adds to the list of criteria for the grant program, whether a grant would facilitate the production of renewable energy
  • Allows EPA to provide additional funds for small, rural, and disadvantaged communities and Indian tribes
  • Reauthorizes funding for Section 104(k) of the Comprehensive Environmental Response, Compensation, and Liability Act and Section 128(a) of the same statute

A bill addressing federal Brownfield issues has also been introduced in the Senate (“S. 822”). This bill is denominated the “Brownfields Utilization, Investment, and Local Development Act of 2017.”

Issues addressed in S.822 include:

  • Funding for technical assistance grants to small communities and rural areas
  • Expansion of the scope of eligible grant recipients to include nonprofit community groups
  • Authorization of funding from multipurpose grants to address more complex sites
  • Allow certain entities that do not qualify as bona fide perspective purchasers to be eligible to receive grants (as long as government entities did not cause or contribute to a release or threaten the release of a hazardous substance at the property)
  • Direct EPA in providing grants to give consideration to Brownfield sites located adjacent to federally designated floodplains

A copy of H.R. 3017 can be downloaded here and copy of Senate Bill 822 here.

This article was first published on the Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C. website.

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About the Author

Walter G. Wright, Jr. is a member of the Business Practice Group.  His practice has focused for almost thirty years on environmental, energy (petroleum marketing), and water law.  Mr. Wright’s expertise includes counseling clients on issues involving environmental permits, compliance strategies, enforcement defense, property redevelopment issues, environmental impact statements, and procurement/management of water rights.

Mr. Wright routinely advises developers, lenders, petroleum marketers, and others about effective strategies for structuring real estate and corporate transactions to address environmental financial risks.  He also serves as General Counsel and provides legislative representation to the Arkansas Oil Marketers Association, Arkansas Recyclers Association (scrap facilities) and Arkansas Manufactured Housing Association.  A unique part of his practice has been drafting and negotiation of a variety of specialized agreements involving the sale or consignment of motor fuels along with the ancillary agreements associated with the upstream segment of the petroleum industry.

Mercury Contamination in Sediment of Thunder Bay, Ontario Harbour Awaits Clean-up

As reported in TB News Watch, the recommendations in a clean-up report of mercury in Thunder Bay, Ontario harbour have yet to be acted upon.  It has been more than three years since a consultant’s report identified options for the management of 400,000 cubic metres (14 million cubic feet) of mercury-contaminated sediment.

Thunder Bay is located at the northwest corner of Lake Superior and has a population of approximately 110,000.  It

The source of the mercury in the sediment was industrial activity along Thunder Bay’s north harbour for over 90 years including pulp and paper mill operations.  The sediment is contaminated with mercury in concentrations that range from 2 to 11 ppm at the surface of the sediment to 21 ppm at depth and ranging in thickness from 40 to 380 centimeters and covering an area of about 22 hectares (54 acres).

Approximate Area of Contaminated Sediment in Thunder Bay Harbour

The preferred solution in the consultant’s report was to dredge the sediment and transfer it to the Mission Bay Confined Disposal Facility (CDF) at the harbour’s south end.  That came with an estimated cost of $40 million to $50 million, and was considered the best choice based on factors such as environmental effectiveness and cost.  The consultants also looked at other options, including building a new containment structure on the shoreline adjacent to the former Superior Fine Papers mill.

Jim Bailey, a spokesperson for the Thunder Bay Remedial Action Plan, a public advisory committee that is partially funded by Environment Canada and the Ontario Government and oversees monitoring of the harbour pollution, says no solution has been chosen as yet, and there is no money for doing the work.

“One of the holdups is identifying a lead organization or agency to lead this cleanup.  Without a lead, obviously the project can’t go forward, so that is one of the sticking points,” Bailey said in an interview with tbnewswatch.com.

Contaminated Sediment Dredged from Thunder Bay Harbour

Thunder Bay RAP members have recently explored the feasibility of getting the contaminated area added to a federal list of contaminated sites, which might make its cleanup eligible for government funding.

The sediment site is adjacent to the mouth of the Current River, and has been described as layers of “pulpy” material up to four metres thick in some spots.

Bailey said being added to the federal list is one of the keys to getting closer to a cleanup, but the project would still require a cooperative effort involving a number of organizations.

The preferred option for disposal at the Mission Bay CDF near Chippewa Park seems unlikely to come to fruition in any case.

“That’s been used for decades to dispose of sediment collected for navigational dredging. It was never designed, to my knowledge, for contaminated material,” Bailey said.

He added that the Fort William First Nation has also made it clear that it doesn’t want to see the contaminated material disposed of near their community.

According to Bailey, the federal government is the legal custodian of the harbour bottom, but “at this point, Transport Canada has not been fully engaged in this process. Work needs to be done to hopefully get them engaged,” he said.

Ontario Environment Industry Day – December 12th 2017

Register now: https://environmentindustryday2017.eventbrite.com

With a provincial election coming in June 2018, this year’s Environment Industry Day at Queen’s Park will feature a unique afternoon program and panel!

  • Join representatives from a range of environment and cleantech firms as we discuss what policies we need from Ontario’s major political parties in the coming election.  What does your firm need to grow?
  • What regulatory and legislative barriers are holding you back?
  • What do politicians of all stripes need to know about running and growing an Ontario environment and cleantech business?

We will hold a series of roundtable discussions, followed by our annual industry political panel that will feature:

  • Trish Nixon, Chief Impact Investing Officer, ‎CoPower Inc
  • Brandon Moffatt, cleantech entrepreneur and VP, Development & Operations, Stormfisher Environmental
  • Michele Grenier, Executive Director of the Ontario Water Works Association (OWWA)

Moderated by Sandra Odendahl, President & CEO, CMC Research Institutes

AGENDA for Tuesday, December 12, 2017:

1:30 PM                Registration and networking
2:00 – 2:45 PM     Roundtable discussions of industry issues
2:45 – 4:00 PM     Tables report back and panel responds
4:00 – 4:30 PM      Political and policy response
4:30 PM                 Networking and walk to Queen’s Park reception

LOCATION: Charbonnel Lounge of St. Michael’s College at the University of Toronto, 81 St Mary Street, Toronto, ON M5S 1J4

TO REGISTER:
Please visit link https://environmentindustryday2017.eventbrite.com

Register now to secure your seat as space is limited!

Consider becoming a sponsor of EID for as little as $750 – and all sponsorships include tickets to the event.  Please contact Sonia Zorzos at info@oneia.ca / 416-531-7884 and she can put you in touch with the sponsorship committee.

Victoria Harbour, B.C. cleanup contract awarded to Milestone Environmental Contracting Inc.

Cleanup work to remove hazardous substances from Victoria Harbour in British Columbia is scheduled to begin shortly with the announcement early this month by Transport Canada that a clean-up contract had been awarded to Milestone Environmental Contracting Limited.  Under the $5,344,000 contract, Milestone will remove hazardous chemicals in sediments from Victoria’s Middle Harbour sea bed.

Victoria, B.C. is located on the southern tip of Vancouver Island off Canada’s Pacific coast.  The city has a population of 86,000.  The harbour serves as a cruise ship and ferry destination for tourists and visitors to the city and Vancouver Island.

Map of Sediment Clean-up Area of Victoria Harbour, British Columbia

Once the contaminated sediments are removed, it is anticipated that the environmental health of the harbour will be restored.  Studies by Transport Canada found that presence of persistent contaminants in the sediments that don’t break down and remain in the environment.  The contaminants threaten the marine food web.

The cleanup work will begin in November 2017 and is expected to be completed by January 2018.  This involves dredging of contaminated sediment, and transporting the sediment by barge to an approved facility for treatment and disposal.  It is estimated that the dredging work will remove 1,200 cubic metres (4,200 cubic feet) of contaminated sediment from the sea bed.  The harbour bed will be backfilled with clean material.

The project will be closely monitored by Transport Canada to ensure the safety of workers and the community.  Sediment and water quality will be monitored throughout the project to ensure that cleanup objectives are met and that the dredging activities do not have a negative impact on the surrounding environment.  For the public’s safety, sections of the lower David Foster Pathway at Laurel Point Park may be closed, but the upper pathway will remain open for the duration of the project.

The Victoria Middle Harbour Remediation Project is funded through the Federal Contaminated Sites Action Plan, which is coordinated by Environment and Climate Change Canada and the Treasury Board of Canada Secretariat, and provides funding to assess and remediate federal contaminated sites.

The source of the contamination in the harbour is from a paint factory that occupied Laurel Point from 1906 until the mid-1970’s.  Factory operations caused damage to the sediments surrounding Laurel Point Park.

Laurel Point, Victoria Harbour, British Columbia

New spill reporting, response and recovery requirements in British Columbia

As reported by Norton Rose Fulbright, the Province of British Columbia recently brought into force a new land-based spills regime and three new regulations requiring transporters of liquid petroleum products to have provincial spill response plans, to test such plans and to report and clean up spills. The new regulations apply to two categories of people:

  • “regulated persons,” which are rail and highway transporters in possession, charge or control of 10,000 litres (62.898 barrels) or more of liquid petroleum products and pipeline operators with any quantity of liquid petroleum products in their pipeline; and
  • “responsible persons,” which are persons in possession, charge or control of a substance when a spill occurs or is imminent.

The three new regulations are the Spill Contingency Planning Regulation, the Spill Preparedness Recovery Regulation and the Spill Reporting Regulation.

Spill contingency planning

Regulated persons are required to develop and maintain spill contingency plans based on a worst-case scenario spill. Investigations, tests and surveys must be undertaken to determine the magnitude of the risks to human health, the environment and infrastructure from a worst-case spill. Pipeline and rail transporters must have their spill contingency plans in place by April 30, 2018, while trucking firms have until October 30, 2018.

Spill response efforts have failed to contain an estimated 110,000 litres of diesel and other petroleum products from the tugboat Nathan E. Stewart, which ran aground Oct. 13 in the Seaforth Channel near Bella Bella. (Photo Credit: Ian McAllister/CBC)

It is important to note that, while the spill planning obligations may resemble transportation of dangerous goods-type plans, they impose new requirements.

Spill reporting

New spill reporting requirements require a responsible person to immediately report any intentional or unintentional spill of a substance into the environment that may cause, is causing or has caused an adverse effect to water, the environment, human health or property if the volume of the substance exceeds the amounts set out in a schedule to the Spill Reporting Regulation or if the substance has or is likely to enter a body of water, regardless of the volume. Natural gas spills greater than 10 kg and releases from breakages of pipelines or fittings operated above 100 psi must also be reported.

The new regulation expands the scope of spills that must be reported, as it removes the previous volume/quantity threshold for spills to water.

It also expands the information that must be reported.

If a spill occurs or is imminent, a verbal report must immediately be made to the BC Provincial Emergency Program’s spill reporting hotline (1-800-663-3456) by the responsible person. New requirements stipulate the initial report must include the name of the owner of the spilled substance and a description of the source of the spill.

Starting on October 30, 2018, a written report must also be made within 30 days of the spill, or as soon as practicable on the minister’s request. An end-of-spill report must also be made within 30 days of the end of a spill’s emergency response activities.

Spill response

A responsible person must ensure persons with the skill, experience, resources and equipment arrive at the spill site within a prescribed period and activate an incident command system. They must also ensure actions are taken to address the threat or hazard caused by the spill, including assessing, monitoring and preventing the threat or hazard; stabilizing, containing and cleaning up the spill; identifying the immediate and long-term risks and impacts of the spill; and taking steps to resolve or mitigate such risks and impacts.