/EINPresswire.com/ -- CALGARY, ALBERTA -- (Marketwired) -- 01/18/16 -- Charges have been laid against Apache Canada Ltd. for the January 21, 2014, pipeline spill near Whitecourt, Alberta. The company faces a maximum penalty of $2.5 million.

Apache has been charged with five counts for contraventions of the Pipeline Act, and the Environmental Protection and Enhancement Act.

The charges follow a January 21, 2014, pipeline spill of approximately 1 900 m3 of produced water into a nearby creek about 40 km northwest of Whitecourt. The first court appearance is scheduled for February 9, 2016, in Whitecourt.

This is the third penalty in the past seven months that the AER has issued against Apache for pipeline spills. In October 2015, charges were laid against Apache for a pipeline spill approximately 33 km from Zama City that occurred in the fall of 2013. And on July 7, 2015, the AER directed Apache to address issues with its pipeline integrity management system. The fine and four orders were a result of an AER investigation into the company for its failure to follow provincial legislation and AER requirements.

The Alberta Energy Regulator ensures the safe, efficient, orderly, and environmentally responsible development of hydrocarbon resources over their entire life cycle. This includes allocating and conserving water resources, managing public lands, and protecting the environment while providing economic benefits for all Albertans.

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Charges have been laid against Apache Canada Ltd. for the January 21, 2014, pipeline spill near Whitecourt, Alberta. The company faces a maximum penalty of $2.5 million. First appearance is scheduled for February 9, 2016.

Backgrounder: Apache pipeline spill and AER investigation processJanuary 2014 Apache Pipeline Spill

--  On January 21, 2014, the Alberta Energy Regulator (AER) was notified of
    a pipeline spill releasing approximately 1,900 m3 of produced water into
    the environment from an Apache Canada Ltd. (Apache) pipeline located 40
    kilometres (km) northwest of Whitecourt. The produced water affected a
    nearby creek.
--  The produced water within the pipeline contained up to 100 parts per
    million (ppm) H2S and 20,000 to 30,000 ppm chlorides.
--  Following a number of pipeline incidents between June 2013 and October
    2014, the AER conducted a comprehensive investigation into Apache's
    operations and identified numerous instances of noncompliance.
--  On June 30, 2015, the AER forwarded its investigation findings to the
    Alberta Crown Prosecution Service for a recommendation to prosecute.
    Based on the recommendation, the following charges have been laid
    against Apache:
    --  One count under section 109(2) of the Environmental Protection and
        Enhancement Act for releasing a substance to the environment that
        caused or may have caused an adverse effect.
    --  One count under section 110(1) of the Environmental Protection and
        Enhancement Act for failing to report the release of the substance
        as soon as possible.
    --  Two counts under section 112(1)(a) of the Environmental Protection
        and Enhancement Act for failing to take all reasonable measures to
        remediate.
    --  One count of section 9(4) of the Pipeline Rules for failing to
        ensure that the support staff and pipeline controllers were
        competent in understanding the leak detection methodology, critical
        equipment and processes, the software application, and the influence
        of each on the performance of the leak detection system.

AER Investigation Process

--  The AER conducts investigations to determine the root cause of energy
    industry incidents, whether an energy company followed the rules, and
    opportunities to improve AER requirements or industry practices.
--  The goal of an investigation is to systematically collect information
    and evidence to determine the facts relevant to a noncompliance.
    Companies that are allowed to develop Alberta's oil and gas resources
    must follow all AER requirements. If they do not, they face strong
    consequences.
--  When a company does not follow AER requirements, the AER takes steps to
    stop the noncompliant activity, restore the environment, and, if
    necessary, apply enforcement action against the responsible party.
--  Enforcement tools include more frequent AER inspections, more stringent
    planning requirements, enforcement orders, shutting down operations,
    levying of administrative penalties, and prosecution.
--  To ensure fairness and integrity with the enforcement process,
    investigation summary reports are not posted to the AER's Compliance
    Dashboard until the enforcement action has been carried out.

Contacts:
Tracie Moore
AER Office of Public Affairs
403-297-2833
tracie.moore@aer.ca
Media line: 1-855-474-6356

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