Head of Alberta's energy regulator apologizes for handling of Imperial Oil's Kearl tailings leak

The president of Alberta's energy regulator apologized Monday for how the agency handled an oilsands tailings pond leak at an Imperial Oil mine that wasn't publicly disclosed for nine months.

Laurie Pushor — president and CEO of the Alberta Energy Regulator — testified before a parliamentary committee in Ottawa examining the ongoing leak at the Kearl oilsands mine north of Fort McMurray.

Pushor was called to explain why it took nine months to tell First Nations and the federal and provincial governments that wastewater from a tailings pond was seeping into the environment.

"It is clear that neither Imperial nor the AER met community expectations to ensure they are fully aware of what is, and what was happening. And for that I am truly sorry," Pushor said.

He didn't answer repeated questions about when the Alberta government was told about the leak. He told the environment and sustainable development committee his answers could jeopardize a third-party investigation launched by the regulator.

Pushor instead offered an apology, a pledge to investigate and a promise to improve how the watchdog operates. He faced pointed questions about how the AER will repair its credibility and address allegations that it tried to cover up the tailings leak. 

Pushor was compelled to take a formal oath before testifying — the only witness to do so in the first three days of the hearing.

The delayed reporting has led to calls for an overhaul of Alberta's regulatory system and questions about how the province monitors toxic tailings ponds.

Tailings are the waste of the oilsands extraction process — a byproduct of separating bitumen from clay, sand and silt.

As of 2020, tailings ponds and related structures in Alberta covered an estimated 27,000 hectares, holding 1.4 trillion litres.

A timeline of two leaks

The committee hearing is one of three current investigations into two tailings leaks at Kearl. The others are the AER's internal investigation and a probe started by Alberta's information commissioner, which will examine whether the regulator had a duty to immediately inform the public.

The first sign of a problem at Kearl came in May 2022, when a discoloured sludge was outside the boundaries of one of the tailings ponds.

The AER was notified but neither the regulator nor Imperial Oil told downstream First Nations until February of this year, after a separate spill of 5.3 million litres overflowed a containment pond at the site.

On Monday, Pushor confirmed that AER was informed of the first leak in May 2022. An inspector directed Imperial to find the source of the contamination and undertake regular testing, he said. 

"At that time, Imperial had a duty to inform any person who it knew, or ought to know, that may be directly affected by the release," Pushor said.

On June 3, sampling of the leak showed industrial wastewater was present. But test results were inconclusive and suggested "it could be attributed to natural sources" of bitumen in the surrounding environment, Pushor said.

Imperial CEO Brad Corson has acknowledged that by August the company knew it was a tailings leak. Corson has blamed the overflow on equipment and process failures, and the seepage on a layer of groundwater that was shallower than anticipated.

In November, Imperial confirmed that the industrial wastewater was seeping through the reservoir, mixing with shallow groundwater and spreading to locations on and off site. 

The containment system for the reservoir had failed in four places, the committee heard Monday. 

Pushor testified that the AER was completing an environmental protection order for the first leak when the second was reported.

He said AER officials relied on existing regulatory protocols when reporting the first leak to the public, but that those standards will be examined.

"There is significant public interest in anything around tailings," he said.

"If you could go back in time, I think we would look at all our protocols and take a look at that and whether or not there is a different test, a different standard, a different expectation … when it involves tailings."

The seepage continues, although Imperial has constructed new trenches and installed pumps to prevent it from spreading, Pushor said.

The spring thaw will be an important time for continued monitoring, he said.

Sampling results released by the regulator earlier this month found evidence of hazardous substances including hydrocarbons and naphthenic acids have been found in an unnamed fish-bearing lake located nearby.  

'This is a crime'

In testimony last week before the same committee, First Nations and Métis leaders lambasted the AER and called for it to be dismantled.

At the hearing on Monday, community leaders expressed fear over being left the in the dark and anger over a perceived lack of accountability in Alberta's regulatory system.

Gerald Antoine, Dene national chief and Assembly of First Nations Northwest Territories regional chief, said Indigenous voices have been dismissed and stifled for too long.

He said Imperial Oil should be held legally accountable for allowing poisonous waste to enter the environment and tainting the watershed.

"This is a crime and comes under environmental racism," he told the committee.

Antoine called on Alberta and Ottawa to take immediate action to better protect the environment from leaks, and to improve oversight.

"Why are these companies allowed to investigate themselves?" he said. "That is not acceptable. 

"Our recommendation is to initiate a complete and comprehensive investigation … to determine the full extent and implications of tailings pond spills and leaks."

Carmen Wells, lands and regulatory director for the Fort Chipewyan Métis Nation Association, echoed the call for an audit of Alberta's tailings ponds.

Community members are also calling for a study of the cumulative health impacts of the oilsands, Wells said.

Wells told the committee that residents are now afraid to eat or drink from local rivers and lakes or allow children to enter the water.

She said community members have feared for decades that a tailings pond would breach, contaminating the watershed.

The Kearl leak is an example of a broken regulatory system and a broken trust between industry and Indigenous communities, she said.

"This prediction coming true will forever change the trust and confidence on the land and Alberta's ability to regulate the oilsands."