Husky Energy Inc. is facing a number of provincial and federal charges related to a July 2016 pipeline leak that spilled oil into a river in Western Canada, the country’s environmental ministry said on March 26.
Environment and Climate Change Canada said it had laid a total of nine charges over the 1,570-barrel leak from Husky’s Saskatchewan Gathering System pipeline, which forced a number of cities in the province of Saskatchewan to temporarily stop drawing drinking water from the North Saskatchewan River.
The Western Canadian province laid a 10th charge, saying Husky did “unlawfully permit the discharge of a substance to the environment that caused an adverse effect.”
The charges follow a 19-month joint federal-provincial investigation. The maximum fine under Saskatchewan’s environmental rules $778,938, with the federal laws allowing for fines ranging from $11,655 to $778,938.
Husky is expected to appear in a Saskatchewan court on March 29. The company did not immediately respond to a request for comment.
The oil and gas industry was not sunk, but 2020 did damage that will take time to assess before deeming it as salvageable or a wreck.
The U.S. oil and gas industry is under extreme pressure by capital providers, stakeholders and elected officials to mitigate greenhouse gas emissions and to show compliance to globally accepted climate change goals. Can a hydrocarbon-producing company win in this scenario?
Denbury Resources and Penn Virginia mutually agreed to terminate their merger after the $1.7 billion cash-and-stock transaction faced difficult market conditions and shareholder opposition.