Teck Coal Limited - conviction information for 2021-03-26

Corporation details
Corporation name: Teck Coal Limited
Address: Teck Coal Limited (Fording River Operations) P.O. Box 100 and Teck Coal Limited (Greenhills Operations) P.O. Box 5000
City: Elkford
Province/territory: British Columbia
Postal code: V0B 1H0
Country: Canada
Sector or industry: 212 - Mining and quarrying (except oil and gas)
Case details
Location of offense: Teck Coal Limited (Fording River Operations) and Teck Coal Limited (Greenhills Operations), Elford, British Columbia
Case summary:

A comprehensive investigation was conducted by Environment and Climate Change Canada, which revealed that Teck Coal Limited’s operations were depositing deleterious coal mine waste rock leachate into the upper Fording River. In 2012, this leachate from Teck Coal Limited’s Fording River Operations and Greenhills Operations coal mines deposited selenium and calcite into the upper Fording River.

During the investigation, under the authority of a warrant, enforcement officers captured Westslope Cutthroat Trout in the upper Fording River and some of its tributaries. Environment and Climate Change Canada’s laboratory analysis determined that some of the fish captured contained selenium concentrations at levels that can be linked with adverse effects in fish. Officers also identified calcite deposits in the upper Fording River and some of its tributaries that had caused a hardening of the riverbeds that can affect the quality of the fish habitat.

Following the investigation, Environment and Climate Change Canada officers had reasonable grounds to believe that Teck Coal Limited had not taken all reasonable measures, consistent with public safety, and with the conservation and protection of fish and fish habitat as required by s. 38(6) of the Fisheries Act, and that immediate action was necessary to prevent and mitigate any detrimental effects.

Consequently, on October 29, 2020, Environment and Climate Change Canada issued a Direction. The measures required by the Direction are aimed at preventing the discharge of deleterious substances and mitigating the adverse effects of selenium and calcite deposits to help protect the Westslope Cutthroat Trout population in the upper Fording River.

On March 24, 2021, following settlement discussions between PPSC and Teck’s Counsel, 2 charges under section 36(3) of the Fisheries Act were laid in relation to this matter related to deleterious discharges in the Fording River and Clode Pond.  The charges were laid by way of Indictment.

On March 26, 2021, following Teck entering a guilty plea to the 2 Fisheries Act counts, and upon the judge receiving a joint submission on the penalty, Teck was sentenced to a penalty of $60 million.  Of the $60 million penalty, $2 million is a fine, and $58 million is a monetary penalty payable to the Environmental Damages Fund. 

As part of the court process, a representative from the local Ktunaxa Nation Council read a Community Impact Statement to the court to explain how their people have been affected by the offences.
Charges:

Count 1
Teck Coal Limited, on and between January 1, 2012 and December 31, 2012, at or near the Fording River Operations coal mine and the Greenhills Operations coal mine, at or near the District of Elkford, in the Province of British Columbia, did unlawfully deposit or permit the deposit of a deleterious substance, to wit: coal mine waste rock leachate, into water frequented by fish, to wit: the Fording River, contrary to subsection 36(3) of the Fisheries Act, and did thereby commit an offence in contravention of subsection 40(2) of the Fisheries Act.

Count 2
Teck Coal Limited, on and between January 1, 2012 and December 31, 2012, at or near the Fording River Operations coal mine, at or near the District of Elkford, in the Province of British Columbia, did unlawfully deposit or permit the deposit of a deleterious substance, to wit: coal mine waste rock leachate, into water frequented by fish, to wit: main Clode Pond, also known as Clode Pond, main Clode Settling Pond, or Clode Pond 2, contrary to subsection 36(3) of the Fisheries Act, and did thereby commit an offence in contravention of subsection 40(2) of the Fisheries Act
Enforcement notification: Teck Coal Limited to pay $60 million under the Fisheries Act and must comply with a Direction requiring pollution reduction measures
Conviction
Result: Guilty Plea
Date of conviction: 2021-03-26
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: Allowed the deposit of a deleterious substance
Legislative details
Act Regulations Section(s)
Pollution Prevention provisions (subsection 36(3)) of the Fisheries Act
Sentencing
Date of sentencing: 2021-03-26
Location of sentencing: Bristish Columbia
Sentence(s):
  • Penalty for the EDF
Amount of fine(s): $60,000,000
Sentencing details:

UPON Teck Coal Limited entering guilty pleas to Count 1 and Count 2 on Information 35390-1 on this 26th day of March, 2021;

AND UPON HEARING Alexander R. Clarkson, Crown Counsel, and Andrew I. Nathanson, Counsel for Teck Coal Limited;

THIS COURT ORDERS Teck Coal Limited to pay a total monetary payment of sixty million dollars ($60,000,000) of which:

• On Count 1, one million dollars ($1,000,000) shall be paid as a fine pursuant to s. 40(2) of the Fisheries Act, R.S.C. 1985, c. F-14 (the “Count 1 Fine”);
• On Count 1, twenty-nine million dollars ($29,000,000) shall be paid pursuant to s. 79.2(f) of the Fisheries Act, R.S.C. 1985, c. F-14 to the “Receiver General of Canada in trust to the Environmental Damages Fund” for the purpose of conservation and protection of fish and fish habitat (the “Count 1 EDF Payment”);

• On Count 2, one million dollars ($1,000,000) shall be paid as a fine pursuant to s. 40(2) of the Fisheries Act, R.S.C. 1985, c. F-14 (the “Count 2 Fine”);
• On Count 2, twenty-nine million dollars ($29,000,000) shall be paid pursuant to s. 79.2(f) of the Fisheries Act, R.S.C. 1985, c. F-14 to the “Receiver General of Canada in trust to the Environmental Damages Fund” for the purpose of conservation and protection of fish and fish habitat (the “Count 2 EDF Payment”);

THIS COURT RECOMMENDS that:

• a portion of the Count 1 EDF Payment and/or the Count 2 EDF Payment be allocated to one or more First Nations in the Kootenay Region of British Columbia to be used for projects designed  to enhance, restore or conserve fish or fish habitat;
• a portion of the Count 1 EDF Payment and/or the Count 2 EDF Payment be allocated to one or more First Nations in Canada outside the Kootenay Region to be used for projects designed to enhance, restore or conserve fish or fish habitat;  
• a portion of the Count 1 EDF Payment and/or the Count 2 EDF Payment be allocated to one or more Canadian schools, colleges, educational institutions, or universities to be used for research, development, or studies related to the understanding of issues related to the enhancement, conservation, or restoration of fish or fish habitat; and
• the remaining portion of the Count 1 EDF Payment and the Count 2 EDF Payment be used for projects designed to enhance, restore or conserve fish or fish habitat in British Columbia;

THIS COURT FURTHER ORDERS that Teck Coal Limited pay the Count 1 Fine and the Count 2 Fine by March 26, 2022 and deliver them to the Clerk of the Court of the Provincial Court of British Columbia;

THIS COURT FURTHER ORDERS that Teck Coal Limited pay the Count 1 EDF Payment and the Count 2 EDF Payment by March 26, 2022 and deliver them to the Clerk of the Provincial Court of British Columbia, to be paid out in accordance with the terms of this Order.
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