Alberta Business Fined $1M: Importance of Global EHS Compliance

October 21, 2024

Alberta business fined $1 million for unlawful deposit of effluent into the Peace River

(Canada) At the Alberta Court of Justice, Mercer Peace River Pulp Ltd. (Mercer Peace River) was ordered to pay a $1 million fine after pleading guilty to one count of violating the Fisheries Act.

The charge follows an investigation by Environment and Climate Change Canada enforcement officers that determined that on 14 April 2021, Mercer Peace River deposited or permitted the deposit of 30,868,000 litres of effluent (wastewater) that was acutely lethal (toxic) to fish from its pulp mill near the Town of Peace River, Alberta, into the Peace River.

The deposit of acutely lethal effluent into fish-bearing waters violates a condition of the authorisation to deposit effluent that is set out in subsection 6(5) of the Pulp and Paper Effluent Regulations, in contravention of subsection 36(3) of the Fisheries Act.

The pulp mill operates a wastewater treatment system that treats effluent before releasing it to the Peace River. The wastewater treatment system has a spill pond designed to capture and store effluent resulting from spills or unusual operating conditions. Once in the spill pond, effluent is gradually reintroduced back into the treatment system at a controlled rate to minimise its harmful effect.

Environment and Climate Change Canada’s investigation determined that the offence occurred during a maintenance shutdown of the pulp mill. The shutdown generated waste materials from process vessels and wastewater from cleaning operations, which were directed into the spill pond. Mercer Peace River had insufficient capacity in the spill pond to capture the additional effluent. As a result, the spill pond did not function as designed. The investigation determined that the reduced capacity within the spill pond contributed to the offence. Mercer Peace River has since taken steps to increase the capacity of the spill pond by removing sludge and upgrading the associated pumping system.

The fine will be directed to the Government of Canada’s Environmental Damages Fund.

This conviction will result in the company’s name being added to the Environmental Offenders Registry. The Registry contains information on corporations’ convictions for offences committed under certain federal environmental laws.


How Companies Can Avoid Environmental Fines: A Guide to Proactive Compliance

Environmental regulations are becoming increasingly stringent, and companies operating across borders must remain compliant to avoid hefty fines and reputational damage. Fines like the $1 million penalty faced by Mercer Peace River for violating Canada’s Fisheries Act highlight the critical importance of proactive environmental compliance. By implementing the right strategies and tools, companies can reduce risks, minimise costs, and maintain their standing in both local and international markets.

Here are actionable steps to help businesses avoid environmental fines:


Conduct Regular Environmental Audits

Regular audits are key to identifying areas where your business may be failing to comply. These audits should evaluate everything from waste management practices to effluent discharge systems. Companies can leverage platforms like Barbour EHS to schedule and track audit findings, ensuring continuous improvement in their compliance efforts.


Implement Comprehensive Compliance Management Systems

Staying on top of regulations can be challenging with varying environmental laws across regions. A comprehensive EHS compliance management system is essential for multinational companies to track and comply with local, national, and international regulations. Barbour EHS offers tailored solutions that help businesses stay updated with legal requirements, minimising the risk of penalties.


Invest in Employee Training and Awareness

Compliance is a company-wide responsibility. Training employees on environmental best practices and regulatory requirements helps ensure everyone is aware of their role in maintaining compliance. Barbour EHS provides access to a wide range of training resources that empower businesses to equip their staff with the knowledge to prevent violations.


Monitor and Maintain Environmental Infrastructure

As seen in the case of Mercer Peace River, failing to maintain essential environmental infrastructure can lead to non-compliance and severe consequences. Regular maintenance and upgrades to systems like wastewater treatment facilities are vital.


Stay Informed About Changes in Environmental Regulations

Environmental regulations evolve constantly, and staying informed is crucial to maintaining compliance. Barbour EHS offers updates on regulatory changes, allowing businesses to adapt quickly to new requirements and avoid unexpected fines.


The Role of EHS Compliance in Global Corporate Reputation

Environmental compliance is critical in shaping a company’s global reputation and long-term sustainability. Failing to comply with environmental regulations can lead to hefty fines and being listed on the Environmental Offenders Registry, damaging corporate credibility and trust. Companies like Mercer Peace River, fined $1 million, serve as a reminder of the consequences of non-compliance.

Staying off such registries is essential for maintaining investor and customer confidence. Barbour EHS offers comprehensive compliance management tools that help businesses stay ahead of regulatory changes, reducing the risk of violations.

With Barbour EHS’s expertise in environmental compliance, businesses can avoid costly penalties, improve public perception, and build stronger relationships with stakeholders through proactive compliance management.


This is valid as of the 21st October 2024.
Environment and Climate Change Canada

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