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Husky accepts fines for 2016 oil spill

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World Pipelines,

Husky has entered guilty pleas on federal and provincial charges related to a 2016 oil spill in Saskatchewan and will pay fines totalling CAN$3.82 million.

Husky subsidiary Husky Oil Operations Limited was fined CAN$2.5 million under the federal Fisheries Act and CAN$200 000 for a violation of the federal Migratory Birds Convention Act. It was fined CAN$800 000 under the Saskatchewan Environmental Management and Protection Act and assessed a 40% victim impact surcharge of CAN$320 000.

“From the outset of this event, we accepted full responsibility for the spill and we restated that today,” said CEO Rob Peabody. “We recognise this event had significant impacts on the cities, towns and Indigenous communities along the river. We appreciate the way they worked with us on the clean-up and their patience and understanding in the months following the spill.”

Husky has been doing business in the Lloydminster region for more than 70 years and it remains a cornerstone of the Company’s operations.

“We understand that some people think we could have done better. After having such a long and successful history in this region, the event three years ago was a disappointment for all of us,” added Peabody. “It has been our goal to show through our actions that we learned from this event and are committed to being a good neighbour and partner.”

On 21 July 2016, a leak was discovered on a pipeline crossing the North Saskatchewan River. The pipeline was isolated at the river crossing and spill response crews were dispatched. Approximately 225 m3 (225 000 l) of crude blended with condensate were released, with about 60% of the volume contained on land. The cause was determined to be ground movement over time.

More than one million hours were worked on the clean-up response, involving about 2600 personnel. At peak, more than 900 people were working simultaneously on the response.

Husky has used the lessons learned from this incident to improve its pipeline operations. These improvements include an updated leak response protocol, regular geotechnical reviews of pipelines and fibre optic sensing technology installed on all new large diameter and higher consequence projects.

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