Canada opens formal investigation into Imperial's oilsands tailings leak in northern Alberta

Federal environmental authorities have launched a formal investigation into a tailings leak at Imperial Oil's Kearl oilsands mine in northern Alberta.

Environment and Climate Change Canada (ECCC) announced Thursday it is investigating a suspected contravention of the Fisheries Act, which prohibits the "deposit of a deleterious substance into water frequented by fish," or any place where such substances could enter fish-bearing water.

The inquiry stems from two releases of toxic oilsands tailings water from the Kearl mine in northern Alberta. It took nine months for Imperial Oil and the Alberta Energy Regulator to tell First Nations and other governments that a tailings pond had spilled into four areas about 100 kilometres north of Fort McMurray, Alta.

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.

An 'untenable' situation

Federal Environment Minister Steven Guilbeault said Thursday work is underway to improve the system for monitoring and reporting incidents like the tailings leak.

"I think we all recognize that the situation right now is untenable and we can't continue going on this way which is why we're proposing to change the way we do things," he said, speaking to reporters on Parliament Hill.

He said that after learning about the leaks at the Kearl site, his department took a close look at the notifications and monitoring processes for such incidents and uncovered "serious gaps."

The minister said the federal government is now working with Indigenous communities and the Alberta and Northwest Territories governments to develop improved processes.

Guilbeault said he won't speak about the investigation by his department's enforcement branch to avoid prejudicing it, but did say he was disappointed by both Imperial Oil and the Alberta Energy Regulator's failure to notify affected communities. 

Regulator, company criticized

Tourism Minister and Edmonton Centre MP Randy Boissonnault joined Guilbeault's news conference Thursday, and said he was not impressed with Imperial Oil CEO Brad Corson's appearance before a parliamentary environment committee last month.

"Imperial Oil's CEO did not acquit himself well at committee. In fact, he did himself no favours," Boissonnault said.

Corson did apologize during his committee appearance, stating his company had "broken trust."

Laurie Pushor — president and CEO of the Alberta Energy Regulator (AER) – also apologized during his own committee appearance, but declined to answer when repeatedly asked about when the provincial government was told about the leak.

Pushor said he didn't want to endanger a third-party investigation launched by the regulator.

On Thursday, Conservative Calgary Centre MP Greg McLean, who sat on the committee that heard evidence about the Kearl leaks, said it's clear that there have been long-standing issues with AER. 

"At some point in time here, we're going to have to put some accountability on this body. And you know, the buck has to stop somewhere," McLean said. "I think Mr. Pushor understands where that is at this point in time because his organization clearly failed in getting the public good done in this case."

Imperial, AER response

Imperial Oil spokesperson Lisa Schmidt said Thursday that the company will co-operate with the federal investigation.  

"Imperial understands that Environment and Climate Change Canada is seeking additional information and we are cooperating with the department," Schmidt said. "We have been providing information on the situation at Kearl and have hosted regulatory officials for tours and testing at our site."

Schmidt added that the company is continuing to work on mitigating any downstream impacts from the leaks, and said the company is continuing to post updates about steps taken on its website. 

AER spokesperson Teresa Broughton said Thursday that the AER investigation that began in February 2023 is ongoing and will run alongside ECCC's investigation.

However, she said the agency can't comment further during Alberta's election period.

"We have received special permission from the Chief Electoral Officer to continue communicating directly with Indigenous communities and the Regional Municipality of Wood Buffalo on matters related to Imperial's Kearl site and are committed to continuing this outreach," she said in an emailed statement.