In industries with high environmental impact, non-compliance could lead to potential consequences that extend far beyond monetary penalties, which threaten an organisation’s license to operate.
Environmental regulations are an essential part of responsible industrial operations, ensuring the protection of ecosystems and public health. Imperial Oil’s history of environmental regulation violations highlights the severe consequences of non-compliance on the business and the environment.
The 2021 Sarnia Slop Oil Spill
On April 15, 2021, approximately 1,150 litres of slop oil, a hazardous mixture of crude oil, water, and waste solids, leaked from a pipeline into a containment area at Imperial Oil’s Sarnia facility. This incident affected nearby residents, including those from the Aamjiwnaang First Nation, causing health issues and environmental concerns.
In response, the Ontario government fined Imperial Oil under the Environmental Protection Act. The company was convicted on September 16, 2024, and fined C$900,000 ($641,391), with an additional charge of C$225,000 ($160,347.75) as surcharge to the victims.
The Kearl Mine Spills of 2023
In February 2023, Imperial Oil’s Kearl oil sands operation faced another crisis. The Alberta Energy Regulator (AER) issued an Environmental Protection Order following two separate incidents of industrial wastewater seepage from tailings ponds. The seepage, which began in May 2022, went unreported for months, thus violating the Environmental Protection and Enhancement Act. In February 2023, a release of 5.3 million litres of industrial wastewater brought the issue to public attention.
This spillage affected numerous communities including the Mikisew Cree, the Athabasca Chipewyan and Fort McKay First Nations, the Fort Chipewyan Metis, and other downstream communities – all the way to the Northwest Territories. These communities were initially unaware of the contamination risks and were forced to discard the food after the danger was identified.
In August 2024, the Alberta Energy Regulator fined them C$70,150 ($50,000) for this incident.
Broader Implications of Non-Compliance
These incidents reveal a pattern of environmental negligence that goes beyond isolated accidents. These repeated violations demonstrate the profound risks of treating environmental regulations as obstacles rather than critical safety nets for community health and ecological integrity.
The financial penalties – while substantial – pale in comparison to the true cost of non-compliance. Indigenous communities bore the brunt of environmental damage, facing disrupted traditional food sources, potential long-term health risks, and cultural displacement.
The environmental impact extends far beyond immediate cleanup efforts, potentially affecting ecosystems for generations.
These repeated violations have also led to an erosion of trust between the company, local communities, and regulatory bodies. Currently, the organisation is facing challenges in renewing its operating licence, particularly for its Norman Wells operations.
The company’s license is under review, with the existing authorisation set to expire in March 2025. Imperial Oil has requested to halt an environmental assessment of its facility, arguing it could delay necessary permissions for continued operations. This situation highlights the broader implications of non-compliance with environmental regulations, as Imperial Oil’s past violations have led to significant scrutiny and potential operational disruptions.
The Impact of Compliance Solutions
The cost of non-compliance far exceeds any investment in robust compliance systems. With solutions like AutoComply, organisations get notified about new or pending regulations, ensuring all requirements are met. Investing in our solutions prevents operational disruptions and promotes sustainable industrial practices and long-term ecological health.
