Canadian National Railway Company - conviction information for 2017-06-15

Corporation details
Corporation name: Canadian National Railway Company
Address: 935 De La Gauchetiere Street W.
City: Montreal
Province/territory: Quebec
Postal code: H3B 2M9
Country: Canada
Sector or industry: 482 - Rail transportation
Case details
Location of offense: 11855-127 Avenue , Edmonton , Alberta
Case summary:

On April 9, 2015, various public complaints were made regarding hydrocarbon sheen on the North Saskatchewan River within the City of Edmonton. The following day, enforcement officers and City of Edmonton employees traced the hydrocarbon from a storm outfall along the North Saskatchewan River to the CN Bissell Yard. The CN Bissell Yard contains facilities for fueling trains.  

An investigation was subsequently initiated. During the investigation, officers learned that an estimated 90 litres of diesel had been released from an oil-water separator located at the Bissell Yard. The diesel then made it to the City of Edmonton storm sewer. Officers also became aware of a number of violations under the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations. These violations included: failure to remove single-walled underground piping; failure to prepare an emergency response plan; and using a centrifugal type pump with an oil water separator.
Charges:

CN was charged with 29 offences under the Fisheries Act and the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations. CN was convicted on the counts listed below. The remaining counts were withdrawn.
Count 1
That Canadian National Railway Company, on or between April 9, 2015 and April 10, 2015, at or near the City of Edmonton, in the Province of Alberta, did deposit or permit the deposit of a deleterious substance of any type in water frequented by fish or in any place under any conditions where the deleterious substance or any other deleterious substance that results from the deposit of the deleterious substance may enter any such water, in violation of subsection 36(3) of the Fisheries Act, R.S.C., 1985, c. F-14, s. 36, 2012. D. 19, s. 143 as amended, and thereby did commit an offence under subsection 40(2) of said Act.
Count 5
That Canadian National Railway Company, on or between June 13, 2012 and July 29, 2016, at or near the City of Edmonton, in the Province of Alberta, being the owner or operator of a storage tank system did have single-walled underground piping, installed before the coming into force of the Regulations, failed to within four years after the day in which the Regulations came into force on June 12, 2008, temporarily withdraw that system from service and failed to permanently withdraw that piping from service and remove it in accordance with section 45 of the Regulations, in violation of subsection 10(1)(a) of the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations, SOR/2008-197, as amended, and thereby did commit an offence under subsection 272(1)(h) of the Canadian Environmental Protection Act, 1999.
Count 7
That Canadian National Railway Company, on or between April 9, 2015 and May 12, 2015, at or near the City of Edmonton, in the Province of Alberta, being the owner or operator of a storage tank system did fail to keep an emergency plan up-to-date and did fail to keep a copy of it readily available for the individuals who are required to carry it out, as well as a copy at the place where the storage tank system is located if that place is a place of work in violation of subsection 31(1) of the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations, SOR/2008-197, as amended, and thereby did commit an offence under subsection 272(1)(f) of the Canadian Environmental Protection Act, 1999.
Count 15
That Canadian National Railway Company, on or between January 1, 2014 and September 28, 2015, at or near the City of Edmonton, in the Province of Alberta, being the owner or operator of a storage tank system, did use a centrifugal-type pump to transfer oil-contaminated water from a sump to an oil-water separator (West Bissell), in violation of section 39 of the Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations, SOR/2008-197, as amended, and thereby did commit an offence under subsection 272(1)(f) of the Canadian Environmental Protection Act, 1999.


 
Enforcement notification: Canadian National Railway Company to pay over $2.5 million in penalties for environmental offences
Conviction
Result: Guilty Plea
Date of conviction: 2017-06-15
Court level: Provincial and Territorial Superior Court
Nature of offense(s):
  • Other
Additional details about the nature of the offense:

- 36(3)

- 10(1)(a) STR (failure to remove single walled underground pipe) 

- 31(1) STR (regarding Emergency Response Plan)

- 39 STR (illegal use of a centrifugal type pump with an oil water separator)

 

Part of the sentencing order includes CN’s commitment to discontinue their appeal of the EPCO with the Federal Court and to permanently remove the 2 km long single walled underground pipe by December 31, 2017 and to notify their shareholders of the conviction.
Legislative details
Act Regulations Section(s)
Pollution Prevention provisions (subsection 36(3)) of the Fisheries Act s.36(3)
Canadian Environmental Protection Act, 1999 (CEPA) Storage Tank Systems for Petroleum Products and Allied Petroleum Products Regulations s.10(1), s.31(1), s.39
Sentencing
Date of sentencing: 2016-06-15
Location of sentencing: Edmonton, Alberta
Sentence(s):
  • Penalty for the EDF
Amount of fine(s): $2,500,000
Sentencing details:
On the 15th of June, 2017, before the Provincial Court of Edmonton in the Province of Alberta, the Canadian National Railway Company has pleaded guilty to Section 36(3) of the Fisheries Act and was sentenced to pay a fine of $2,000,000 to the Environmental Damages Fund.
On the 15th of June, 2017, before the Provincial Court of Edmonton in the Province of Alberta, the Canadian National Railway Company has pleaded guilty to Section 10(1)(a)  of the Storage Tank Systems for Petroleum and Allied Petroleum Products Regulations made pursuant to Section 272(1) of the Canadian Environmental Protection Act, 1999  and was sentenced to pay a fine of $250,000 to the Environmental Damages Fund.
On the 15th of June, 2017, before the Provincial Court of Edmonton in the Province of Alberta, the Canadian National Railway Company has pleaded guilty to Section 31(1) of the Storage Tank Systems for Petroleum and Allied Petroleum Products Regulations made pursuant to Section 272.1(1)(f) of the Canadian Environmental Protection Act, 1999  and was sentenced to pay a fine of $100,000 to the Environmental Damages Fund.
On the 15th of June, 2017, before the Provincial Court of Edmonton in the Province of Alberta, the Canadian National Railway Company has pleaded guilty to Section 39 of the Storage Tank Systems for Petroleum and Allied Petroleum Products Regulations made pursuant to Section 272.1(1)(f) of the Canadian Environmental Protection Act, 1999  and was sentenced to pay a fine of $150,000 to the Environmental Damages Fund.
The Court further ordered, pursuant to Section 291(1)(b) of the Canadian Environmental Protection Act, 1999, that Canadian National Railway Company remove from the ground the 2,130 meter single walled underground pipe located in the Bissell Rail Yard in Edmonton, Alberta by December 31, 2017.
The Court further ordered pursuant to Section 274.2 of the Canadian Environmental Protection Act, 1999. That Canadian National Railway Company notify its shareholders by August 31, 2017 of the facts relating to the commission of the offences in Count 5, 7 and 15 and the sentence imposed thereon by publishing the foregoing information in Canadian National Railway Company’s quarterly financial statements.
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