CALGARY, AB, June 6, 2023 – Husky Oil Operations Limited, now amalgamated into Cenovus Energy Inc., has pled guilty in provincial court to a charge laid against them by the Alberta Energy Regulator (AER) in October 2022.
The charge relates to the discharge of produced water contrary to section 109(2) of the Environmental Protection and Enhancement Act. All charges relate to incidents at or near Derwent, Alberta between October 18, 2020, and October 21, 2020.
The Court has ordered Husky to pay a $140 000 penalty. Of that amount, $138 000 will go to the AER creative sentencing project, and the remaining $2000 will go to the Alberta Court of Justice as a fine. The creative sentencing projects will occur within the Frog Lake sub-watershed, part of the larger North Saskatchewan River watershed, or the counties of Smoky Lake, Two Hills, Minburn, St. Paul, Vermillion River, and the southern part of the M.D. of Bonnyville. Projects must demonstrate benefits to wetlands and surrounding ecosystems. This includes improvement to wetland complexes increasing biodiversity, and benefitting wildlife classified as at risk, threatened or endangered.
The AER will publish one or more requests for proposals using established Government of Alberta practices and oversee the creative sentencing project on behalf of the Alberta Court of Justice. For more information on creative sentencing, please see the story, Laying Down the Law in the Oilpatch on aer.ca.
Husky was operating a four-inch produced water injection composite pipeline through a wetland near Derwent, Alberta on October 18, 2020. The produced water carried by the pipeline was injected into wells as part of the disposal process. Flow was stopped after the pipeline monitoring system detected a discrepancy. To troubleshoot the potential cause, Husky restarted the pipeline, causing approximately 206 cubic metres of produced water to flow through a break in the line, and into the surrounding wetland.
Visit the AER Compliance Dashboard to see the Agreed Statement of Facts. For more information on AER’s investigation enforcement processes please see the Investigations page on aer.ca.
Notes to editors
On March 31, 2021, Cenovus and Husky Energy Inc. (Husky) amalgamated under the provisions of the Canada Business Corporations Act (the "CBCA"), with the amalgamated company continuing to operate as Cenovus Energy Inc., and, as a result, Husky became a wholly owned subsidiary of Cenovus. On December 30, 2021, Cenovus and Husky amalgamated under the provisions of the CBCA, with the amalgamated company continuing to operate as Cenovus Energy Inc. (the "Husky Amalgamation"). The release from the pipeline occurred prior to the Combination Transaction and over one-year prior to the Husky Amalgamation. Husky owned, operated and was the licensee of the pipeline at all material times related to the release.
About the Alberta Energy Regulator
The AER ensures the safe, efficient, orderly, and environmentally responsible development of energy resources in Alberta through our regulatory activities. For more information visit aer.ca.
