Prairie Mines & Royalty ULC - conviction information for 2017-06-09

Corporation details
Corporation name: Prairie Mines & Royalty ULC
Address: 1100, 10123-99 Street
City: Edmonton
Province/territory: Alberta
Postal code: T5J 3H1
Country: Canada
Sector or industry: 212 - Mining and quarrying (except oil and gas)
Case details
Location of offense: Obed Mountain Mine, 15km East of Hinton, Alberta
Case summary:

The Obed Mountain Mine is an open pit coal mine located about 15km northeast of the Town of Hinton, Alberta. Coal Valley Resources Inc. owned and operated the mine starting in 2006. In January 2016, Coal Valley Resources Inc. was amalgamated with Prairie Mines & Royalty ULC.

On October 31, 2013, a dyke on the mine’s wastewater containment pond failed, resulting in the release of 670 million litres of water and 90, 000 tonnes of sediment into Apetowun Creek.  

Apetowun Creek is a small watercourse which flows for approximately 22km before entering another watercourse called Plant Creek.  From there, Plante Creek flows 6 km before entering the Athabasca River. 

At the time of the release, Apetowun Creek was known to contain rainbow trout, burbot, mountain whitefish and spoonhead sculpin. Plante Creek contained these fish species as well as arctic grayling. Downstream of Plante Creek, the Athabasca River contains the same fish species, as well as bull trout, longnose dace, longnose sucker, northern pike, pearl dace and white sucker.

Athabasca rainbow trout are listed as endangered by the federal Committee of the Status of Endangered Wildlife in Canada and as threatened by Alberta’s Endangered Species Conservation Committee. Prior to the release, Apetowun Creek was a known spawning area for rainbow trout. These rainbow trout were believed to be Athabasca rainbow trout by Alberta Environment, but this was not confirmed until DNA sampling subsequent to the release.
Charges:

Count 1
On or between October 31, 2013 and November 1, 2013, at or near Hinton, in the Province of Alberta, Prairie Mines & Royalty ULC (formerly known as Coal Valley Resources Inc.) 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., 1985, c. F-14, s. 36; 2012, c. 19. S. 143 as amended, and thereby commit an offence under subsection 40(2) of said Act.

Count 2
That on or between October 31, 2013 and November 1, 2013, at or near Hinton, in the Province of Alberta, Prairie Mines & Royalty ULC (formerly known as Coal Valley Resources Inc.), did carry on a work, undertaking or activity that resulted in the harmful alteration or disruption, or to the destruction, of fish habitat, in violation of subsection 35(1) of the Fisheries Act, R.S., 1985, c. F-14, s. 35; 2012, c. 19. S. 142 as amended, and thereby commit an offence under subsection 40(1) of said Act.
Enforcement notification: Company sentenced to pay $3,500,000 for Obed Mountain mine spill
Conviction
Result: Guilty Plea
Date of conviction: 2017-06-09
Court level: Provincial and Territorial Court
Nature of offense(s):
  • Allowed the deposit of a deleterious substance
Additional details about the nature of the offense:
Legislative details
Act Regulations Section(s)
Pollution Prevention provisions (subsection 36(3)) of the Fisheries Act s.35(1), s.36(3)
Sentencing
Date of sentencing: 2017-06-09
Location of sentencing: Hinton, Alberta
Sentence(s):
  • Fine,
  • Penalty for the EDF,
  • Other penalty (provincial, charity, etc)
Amount of fine(s): $4,115,175
Sentencing details:

On the 9th of June, 2017, before the Provincial Court of Alberta at Hinton, Alberta, Prairie Mines & Royalty ULC (formerly known as Coal Valley Resources Inc.) pleaded guilty to violating section 36(3) and 35(1) of the Fisheries Act and was sentenced to a total monetary penalty of $3,500,000 plus $615,175 for certain costs, of which:

· Count 1, s.36(3) Fisheries Act: $100,000 paid as a fine pursuant to s. 40(2) of the Fisheries Act; $1,650,000 paid pursuant to s. 79.2(f) of the Fisheries Act to the EDF.

· Count 2, s. 35(1) Fisheries Act: $100,000 paid as fine pursuant to s. 40(1) of the Fisheries Act; $500,000 paid pursuant to s. 79.2(f) of the Fisheries Act to the EDF; $1,150,000 paid pursuant to s. 79.2(i) of the Fisheries Act, into a trust account at the University of Alberta for the sole purpose of creating the Alberta East Slopes Fish Habitat and Native Fish Recovery Research Fund; $615,175 paid pursuant to s. 79.2(d) to DFO as compensation for costs in retaining fluvial geomorphology experts related to the rehabilitation of Apetowun Creek.

It should be noted that an additional count under the Alberta Environmental Protection and Enhancement Act  was also part of the sentencing as follows:

· Count 1 s.109(2): $192,000 fine and $28,810 victim fine surcharge; creative sentencing projects including $363,000 for a university research project on dam safety and $370,000 for an aboriginal and indigenous youth education program relating to environmental issues.

In this case, the sentence was recommended by joint submission as presented by both the crown and defense counsels and the court accepted the submission as proposed.
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